Why do you think the stock market lost a trillion this week and would it be wise to move stocks into bonds?
hopeshadows84 asked:
I’m 25 years old and yes I have money in the stock market and I currently transferred my money into bonds this week and have not lost a single cent, not sure for the long term if this will be effective as it was this week. Thank you for your help.
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I’m 25 years old and yes I have money in the stock market and I currently transferred my money into bonds this week and have not lost a single cent, not sure for the long term if this will be effective as it was this week. Thank you for your help.
February 25th, 2009 at 3:29 pm
Long term investors will keep their money in the market. This is the absolute best time you want to be in the market, when prices are low.
Consumer confidence is down. Profits are down. That’s why people are selling their positions.
February 27th, 2009 at 3:42 pm
If you got out of the market and into Bonds this late in the game and haven’t lost any money since Sept., you’re a better man than I am, Gunga Din. Yes you did good. Just stay in Bonds until the market shows definite signs of bottoming-out — which may not be for months. Don’t worry if you’re not making a ot of money these days. The challenge is not to lose any.
March 2nd, 2009 at 6:57 am
People are shook, scared, they are so close to retirement they don’t have the patience. This is the sale of the century sir, time to make moves, get it ALL in there. True Story.
March 4th, 2009 at 6:32 pm
That doesn’t make much sense. If you sold shares of stock at a lower price than you purchased them for, you actually did lose. It’s called a realized loss and you will see it on your next quarterly statement.
To answer your question, if you have a long-term view you should be more comfortable with the ups and downs of the stock market. Think about it, you have 40 years left to retire. Historical statistics show that over the preceeding 80 years, despite economic depressions and war, the stock market has marched steadily upward. If you have 40 years to go, chances are extremely good that you will live to see the market recover. However, if you have your money in bonds and short term investments, your retirement assets may not recover.
Some people see now as the best time to buy. Everything is at VERY low prices. No one knows how long they will keep going down, but if you aren’t in it when they go up, you will miss out. But if you aren’t comfortable with the stock market, then it might be best for you to stay in bonds or money market funds.
March 8th, 2009 at 5:42 am
Diversify your investments. Market is headed down, but it’s going to rebound. When? nobody knows. There are some stocks that are doing good, but if you are in the long run look for companies that will prevail. Most stocks are very cheap. Do research on health care markets, IT markets, telecommunication markets, even Wal Mart has demonstrated to be solid during this crisis. Also look for some funds. Do research on PIMCO. They reported profits during 2008.
March 10th, 2009 at 2:37 pm
Good for you for not loosing your money.
The first rule of investing is never loose your money.
Because we are in a major recession/downturn, which is probably going to last for several years, you need to think about investments that will do well during bad times.
Government certified bonds is the safest bet, however, you won’t get much of a return.
You might also think about gold or gold stocks as a possibility.
Also high growth dividend stocks are a good bet - especially in industries that do well during recessions such as tobacco, health care, pharma, and soda.
Take a look at these top 10 dividend stock picks and compare them with what you are currently considering investing in. It might make sense for you.