BlogHer - First Time In Five Years: Dow Plunges Below 9k - Comments

It even went below 8k before rallying late in the day

MMarquit — Fri, 10 Oct 2008 19:26:51 -0500

It's bargain hunting time! That's my positive spin, at any rate. Stuff is cheap. With 30 years to go before I can even take distributions from my Roth IRA, I'm not overly concerned. I looked in the envelope, and it wasn't as bad as I thought it would be. Thanks to the conservative allocation shift made 9 months ago.

Now is the time that you can buy more for your buck -- and that will be great down the road. I'm optimistic, since over time the market gains. But I do feel bad for my parents, who are planning on working an extra year or two in order to make up for the ickiness that is this particular bear market.

This Time, It's Personal

Yielding Wealth

No envelopes for me.

MissIndependent — Fri, 10 Oct 2008 05:20:39 -0500

I am avoiding all envelopes that look "official". It helps calms my fears

Excellent advice Gena

Erin Kotecki Vest — Fri, 10 Oct 2008 00:00:49 -0500

and come to think of it, I haven't seen a credit card solicitation in weeks!

Politics & News Contributing Editor
Queen of Spain

The Need For Detachment, Otherwise You'll Go Bonkers

Gena Haskett — Thu, 09 Oct 2008 22:12:08 -0500

You really have to separate what you have been told versus what you know to be true. And that truth is not the same for each and everyone of us.

There is only so much fear and doom I can take in one day. I have elected to only listen to those program that explain what has happened in plain English and who have experience with financial reporting.

Don't listen to your local TV newsreaders or ill-informed radio talking head.

I like NPR's Marketplace but only once a day. Michelle Singletary at the Washington Post has got good sense.
You can also hear her at NPRs Day to Day.

Be careful about listening to so-called pundits that are popping out all over the place. cuz If they was so smart why didn't the sound the clarion bell months ago?

Get your metaphorical house in order & give this thing some time to shake out. Take care of the essentials. Be kind to yourself.

This thing needed to happen. You can't continue to do wrong and expect no repercussions. This is true for corporations as well as individuals.This is a correction. A financial A$$ whipping. It stings.

On the bright side, have you gotten junk mail from a credit card company? I haven't seen one in three week (and don't want to). See, there are blessing in the mist of trouble.

Gena - Out On The Stoop

The media IS bearish

Shadey Blonde — Thu, 09 Oct 2008 20:03:10 -0500

Yes, the media is totally going overboard with negativity. I hate it. The stock market goes up and it goes down. Ever since it went over 10,000, many "experts" have been saying we were in for a correction. In 1987 the stock market lost almost 23% of it's value in ONE DAY. We had a recession in 1991 and 2001. Why is this The WORST EVER? In the mid-70's we had the bottom fall out of the housing and construction market, gas prices were high, interest rates were high, inflation was high, jobs were lost. It's not like we haven't had downturns and bad times before. This is not END TIMES. That drives me crazy. If you don't lose your job and don't have to take money out now because you are retired, just leave your money where it is and ride this out! Think of it this way, everything is on sale! You can buy more shares with the same amount of money and when those share prices go back up (and I think most will) you will make a big profit! Just don't ever put all your eggs in one basket.

Shadey Blonde from http://spectrumkids.blogspot.com (The Adventures of Orangeboy and His Antagonists!)

So it's not just me ignoring the mail

Erin Kotecki Vest — Thu, 09 Oct 2008 18:16:40 -0500

Good to know.

and great article

Politics & News Contributing Editor
Queen of Spain

I'm stacking the envelopes and cooking up a storm

Lisa Stone — Thu, 09 Oct 2008 18:12:51 -0500

I'm trying not to even drink coffee that someone else has made (although it's hard in the middle of the day!). I can't bring myself to open any envelopes either.

I did just find one article that I think gives terrific advice about not losing one's mind in a market like this one. It's by John Prestbo, exec director of the Dow Jones Indexes. Here's an excerpt:

" Here's what I learned from this exercise: No matter how intrepidly you schuss a market like this, you are going to take some hard knocks. Trying to time your way through a broad collapse is nuts. Have your portfolio in diversified shape at all times and you will be as ready as you can be for whatever the market serves up.

"Above all, don't panic when you are dinged. Your objective is to sustain as small a paper loss as you can manage, yes, but more important to be in place when the market turns -- as it inevitably does -- with little to no advance warning.
This particular bear market could be seen from a long way off -- not a year ago today, maybe, but certainly since early this year. When you see those dark clouds forming, batten down your hatches by, first, ensuring that you are well-diversified, and, second, by taking out of the market any money that you might reasonably expect to need for the next year or two.

"These two steps alone will stiffen your resolve not to bail out completely in the darkness before the dawn."

Here's the full (aptly named) article: "What a difference a year makes"
Lisa Stone
BlogHer Co-founder
Surfette

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I agree Laura

Erin Kotecki Vest — Thu, 09 Oct 2008 17:54:24 -0500

I haven't seen the President or Tres. Sec. calm anyone at all. But...am also totally not surprised by that.

Politics & News Contributing Editor
Queen of Spain

I wonder how much of this is self-fulfilling prophecy

Laura Scott — Thu, 09 Oct 2008 17:38:41 -0500

I wonder how much of this is self-fulfilling prophecy. FDR said "the only thing to fear is fear itself." But every time Secretary Paulson speaks, it's "this is really really awful, and we hope to mitigate the devastation but no promises, be afraid, get ready for end times!"

In fact, of all of our elected officials, I've seen only Obama (and maybe that's because he's getting press attention) speak to calm fears and look to the future. Everyone else is waving their arms, chewing and spitting metal, posing their outrage and heroic actions.

To me, it's completely irresponsible how the Administration and Congress are *talking* about the issue. Maybe they want to under-promise so they don't get caught on false hopes later, but I think it's scaring the crap out of everybody.

Enough!

First Time In Five Years: Dow Plunges Below 9k

Erin Kotecki Vest — Thu, 09 Oct 2008 17:27:33 -0500

My brother and I happened to be watching the Dow plummet as the mailperson came and we all got our 401K statements.

I watched him shake his head as his slowly opened the envelope, take out the paper, and sigh. My husband's is still sitting on the counter. I'm not going to bother opening it. What's the point?

On the one-year anniversary of it's all-time high and for the first time since 2003, the Dow fell below 8,700. CNNMoney.com says panicked investors dumped stocks across the board with the Dow falling nearly 700 points during the session.

Bank lending remained tight as nervous institutions continued to hoard cash. Treasury prices fell, raising their corresponding yields. The dollar gained versus the euro and the yen. Oil and gold prices fell.

The Blue Voice writes, "Right now, as I write this, millions of homes across America are receiving their end-of-quarter pension and investment statements, with their share in the $2 trillion loss in the stock market staring them in the face. Continued...

And the bloodbath isn't over yet, as the markets goes into freefall..."

While Reidblog says, "The Dow got hammered again today. Nothing the Fed or the feds are doing is working... and with credit in seizure, J.D. Powers fears the global automobile market may completely implode by next year."

Meanwhile media outlets report "treasury Secretary Henry Paulson told reporters that Treasury was moving quickly to implement the $700 billion rescue effort and he specifically mentioned reviewing ways to bolster the capital of banks.

'We will use all the tools we’ve been given to maximum effectiveness, including strengthening the capitalization of financial institutions of every size,' Paulson said at a Wednesday news conference.

His statements came on the heels of Britain’s move to pour cash into troubled banks in exchange for stakes in them — a partial nationalization."

I'm continuing to monitor the news as my mail remains unopened on my counter. I'm not sure taking a look inside that envelope is going to make me feel any better about what's developing in our nation or in my pocketbook.

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