Location: Wondering when # became hashtag and not a number sign.
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Ugh.....been out all night with my buddy who has handled my portfolio since 2001.... not good news anywhere in the evening....so we just drank Grand Marnier and watched football and baseball while comiserating with a couple others. I knew this was coming but when its presented in black and white ( or should I say red) its a big ol kick in the gut. Simply the worst day financially (though it has been a few weeks to come to a head like this) in my existance.
I blame cowperson myself...ever since he took sabattical, the world has gone to hell in a handbasket.
Say what... What I remember of the Japanese crisis was that the Japanese government was criticized for continuing to prop up bad banks, thereby delaying the restructuring that was required.
The Japanese gov't waited a long time before even offering the bailout funds. And even then, the conditions that were put on the funds were so onerous that instead of accepting them, the banks just refused to lend money until they had waited out the bad loans. Which merely added to the problems.
Quote:
In Japan, the attempt to force conditionality onto the banks was abandoned because not a single bank applied for capital injection. The subsequent injection finally ended the credit crunch.
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"The problem with any ideology is that it gives the answer before you look at the evidence."
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"The greatest obstacle to discovery is not ignorance--it is the illusion of knowledge."
—Daniel J. Boorstin, historian, former Librarian of Congress
"But the Senator, while insisting he was not intoxicated, could not explain his nudity"
—WKRP in Cincinatti
Wow! This is the first time I have seen a so-called expert suggesting that investors get their money out of the markets, but Jim Cramer is suggesting just that. If everyone does that, this will get really ugly, really fast.
Granted, he qualifies his position by saying that only people that may need the money in the next few years should pull out what is left of it.
Cramer emphatically urged any investor who has money they may need in the next five years tied to stocks to pull their dough out.
"Whatever money you may need for the next five years, please take it out of the stock market right now, this week. I do not believe that you should risk those assets in the stock market right now."
But he does also say, that if you can ride it out, that will end up the best for you.
Quote:
Still, those with the assets — and the stomach — to ride out the stock market’s ups and down over a five-year period might be best served by holding their nose and holding onto their stocks.
“I think what you have to do, if you can withstand it, is just ride it out,” Cramer said.
Wow! This is the first time I have seen a so-called expert suggesting that investors get their money out of the markets, but Jim Cramer is suggesting just that.
So-called experts frequently advise getting out of the market. Many of them produce newsletters, for example, that tell us when to get in and out of the market.
Being the CEO of a large company is essentially a no lose situation. They either make a tonne of money for the company, and get offered a huge sum of money from another company to go run them. Or they make some bad decisions, the company looses a tonne of money, and they get a huge sum of money to leave. Or they do nothing while they are running the company, then get a huge sum of money to disappear. Either way, the CEO is getting a large sum of money both during, and most likely when the leave that company.
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"Opinions are like demo tapes, and I don't want to hear yours" -- Stephen Colbert
My girlfriend's family happens to be good friends with the family of Dick Grasso...you might recall his name as the head of the NYSE who received something like a 160 million dollar retirement package. I'm currently trying to devise some sort of woody harrelson esque plan to have her sleep with someone for a chunk of this money...i wonder if she likes bald guys.
Wow! This is the first time I have seen a so-called expert suggesting that investors get their money out of the markets, but Jim Cramer is suggesting just that. If everyone does that, this will get really ugly, really fast.
Granted, he qualifies his position by saying that only people that may need the money in the next few years should pull out what is left of it.
But he does also say, that if you can ride it out, that will end up the best for you.
You would have to be insane to get out of the market right now. The prices are so low that your risk is greatly reduced. I can't see the point of doing much other than buying at this time.
I think there are a few things that might not be a bad time to get out of yet, especially if you're still in the green. For some people the peace of mind of not losing money might be worth it.
Slava/Moneyguy what are your thoughts on sector-specific ETF's? Ive been looking at getting into ETFs in Oil/Gas (DIG), financials (UYG), real estate (URE), and technology (ROM).
I think there are a few things that might not be a bad time to get out of yet, especially if you're still in the green. For some people the peace of mind of not losing money might be worth it.
Slava/Moneyguy what are your thoughts on sector-specific ETF's? Ive been looking at getting into ETFs in Oil/Gas (DIG), financials (UYG), real estate (URE), and technology (ROM).
You're right on the first part; if you have money in and are ahead of the game right now then it could make some sense to get out. But if you are selling because you're down that is another story.
As far as sectors go its a mixed bag IMO and somewhat dependent on your time horizon. If you are looking at a long term (8-10yrs) then real estate could serve you rather well. Energy companies are far cheaper today than what the overall demand for the products actually reflects so that could be another area of interest. I'm not a big technology investor personally, so I won't tamper your view there, and financials will eventually rebound to a good stable source to consider as well.
I have to say though that I'm not into the ETF market. I understand that the average ETF is being held for 3 days right now in Canada, and that is something that simply doesn't interest me. I am definitely a buy and invest for the long-term in quality holdings type of guy.
Slava, does the fact that ETF's are traded so often have an impact on the long-term viability of them? Do you not see them being stable?
And if not ETF's, what kind of vehicle would you recommend for these indexes then? I would definitely like to hold onto these for months/years as opposed to days. I have to roll-over my 401k into something in the next few months...not really sure exactly what to roll it over into.
Well the indexes are fantastic IMO. I would use an ETF for that purpose (although there are other ways to buy the index as well that I recommend). With indexes you have be prepared to say "I don't know and I don't care" no matter what the markets are doing in order to get your value from them. This has to apply in both up and down times, and to be honest there are questions about the long-term benefits in some cases. A lot of funds in Canada beat the index going up and hold their value going down...but there are no guarantees and no one can predict the future.
ETF's are just a little more complex than other investments because in some sense they are a hybrid vehicle. I'm not saying that they are much less stable, but you should understand what you're getting into. I know that the fees are lower, but the question is that with fees could you come out ahead of the ETF? If the answer is yes, or even at a break even then you have to take that into account.
That's fataing disgusting.
AIG: Help us!! We need money!
Congress: Ok.. tax payers, you foot the bill.
[money exchnages hands]
AIG: Sweet! Now we can go on that retreat we always wanted to!
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"Opinions are like demo tapes, and I don't want to hear yours" -- Stephen Colbert
ETF's are just a little more complex than other investments because in some sense they are a hybrid vehicle. I'm not saying that they are much less stable, but you should understand what you're getting into. I know that the fees are lower, but the question is that with fees could you come out ahead of the ETF? If the answer is yes, or even at a break even then you have to take that into account.
That makes sense. I think I'm the type of person who can pay attention to market and a pretty big news junky, so I don't think i would necessarily hold something for 30 years without making any moves. I was just thinking of maybe diversifying into 5-6 index funds, which i think should over the long-term be a fairly safe bet.
ProShares also has some ETF SHORT indexes as well, which is sort of interesting....I'm not really sure if it's too late to short things at the moment, but is also an interesting option at times.
That makes sense. I think I'm the type of person who can pay attention to market and a pretty big news junky, so I don't think i would necessarily hold something for 30 years without making any moves. I was just thinking of maybe diversifying into 5-6 index funds, which i think should over the long-term be a fairly safe bet.
ProShares also has some ETF SHORT indexes as well, which is sort of interesting....I'm not really sure if it's too late to short things at the moment, but is also an interesting option at times.
The shorts always make me wonder a little bit...it seems sort of ridiculous to say in times like these, but the markets are usually moving upwards.
The AIG sale didn't really happen as you outline above. AIG likely could've survived actually, but it was more of a forced sale. I'm not for a second defending the high salaries of the CEO's and such, but there is more to this story than a simple "lets walk and collect some sweet cash" attitude on the part of the AIG higher ups.
