BS: Bears Eating my Lunch

Subject: Bears are Eating my Lunch
From: Lonesome EJ
Date: 23 Mar 01 - 02:09 PM

Like a lot of people, I have my retirement funds, my daughter's college fund, etc in mutual funds. And like most folks, I have contentedly watched those funds increase over the last 10 years or so. Now, within months, those gains have largely been erased, and now the Bears are taking deep bites out of my future.

How are you weathering the economic storm? Are you sitting tight on your investments, or have you decided to close out your stocks and bury them in a coffee can? Are you worried like me, or is your perspective so long term that you see this as a temporary blip?

Subject: RE: BS: Bears Eating my Lunch
From: Amos
Date: 23 Mar 01 - 02:40 PM

I hate it, but I will not be bullied by anything as ridiculous as the US stock market. I have a long-term confidence in the economy as a whole, and a sense that it will provide a long-term increase in the stockmarket, but I think it can be a serious error to confuse the two things in spite of all the talking heads and their silly chanting. And to answer your question, I am sitting tight on my investments, although right now I wish I had panicked and flown into fixed-returns when the current recession began!

This too shall pass.

A

Subject: RE: BS: Bears Eating my Lunch
From: SINSULL
Date: 23 Mar 01 - 02:43 PM

I am sitting tight as well but I have a few years before retirement. If that were next year or my son's college money would be needed shortly, I would be concerned.

Subject: GIANT ANTS EATIN' M' HEAD!
From: Clinton Hammond
Date: 23 Mar 01 - 02:55 PM

This is the great thing about being broke... the economy can do what it wants and it doesn't effect me one bit!

;-)

Subject: RE: BS: Bears Eating my Lunch
From: Lonesome EJ
Date: 23 Mar 01 - 02:56 PM

Well, hindsight is 20/20, Amos. It dipped a year ago, then came back (prime time to sell, if you were gonna), then really hit the skids. I'm convinced that much of the volatility is driven by at-home internet day-traders who care nothing about long-term investing, but are sitting by the computer with finger on mouse button, waiting for a trend to start...recipe for disaster!

I am stting tight, although at 51, my longterm outlook for investments is a bit shorter than it once was. Still about 5 years before Erin would start college.

Subject: RE: BS: Bears Eating my Lunch
From: Kim C
Date: 23 Mar 01 - 03:14 PM

investments?

Subject: RE: BS: Bears Eating my Lunch
From: katlaughing
Date: 23 Mar 01 - 03:18 PM

That's what I was going to say, Kim! Can one be a true phoakie and have investments?**BG**

LeeJ, I was gonna tell you to quit leaving your lunch out on your deck!

Subject: RE: BS: Bears Eating my Lunch
From: Amos
Date: 24 Mar 01 - 12:11 AM

LEJ -- Sounds like Erin is just a tad younger than Ariel. I comfort myself that there are upright and virtuous paths through college that cost a lot less than Bryn Mawr or one of those Sisteroid Camps. One way or another we can squeak her through; then its earning a living for her, me bucko!!! But she's game and I suspect it will not be a problem.

However, I honestly believe, Sir, that you can (as only few I know of) escape the whole evil quandary, and outflank the misery of mercentile melancholia and mugwump mediocrity becaue you, Sir, have a gift, and a golden tongue. So instead of dicking around with third-rate derivative fund-heads, I would urge you to pour your heart into pages crafterd, day by day. I think highly of your promise and believe you could really make some substantial dough, as well as contributing to the well being of the world.

A

Subject: RE: BS: Bears Eating my Lunch
From: Spud Murphy
Date: 24 Mar 01 - 01:21 AM

To all of you: TAKE CARE!!! There have been some recessions in your lifetimes, but the last time the market started doing the things that are now becoming a daily occurence was in 1929. The bears may soon be eating more than your lunch. Or are you of a mind that it couldn't happen like that again?

Spud

Subject: RE: BS: Bears Eating my Lunch
From: Sorcha
Date: 24 Mar 01 - 01:47 AM

Broker says, Sit Tight. Things go in cycles. Usually 3-5 years. We can live on wages earned, even if it is tough. It's 3 years until Kate goes to college and she may have to get job/scholarships to do it.

Even if a major crash, a la '29 comes, we (me and mine) haven't lost anything we had before my mom died. Remember, if it all crashes, prices will drop accordingly. Can't really see that happening now, tho, because it's all so Global, and I don't think the US gov would allow it to happen again. (Maybe that is a naive statement......) The US always seems to go to "war" when there is an economic crisis looming.

War picks up the economy like nothing else, so look out World. Now we have Dub/Dumya and an economic crisis.....

Subject: RE: BS: Bears Eating my Lunch
From: Naemanson
Date: 24 Mar 01 - 07:38 AM

Hmmm... What's it like having so much money that you can invest in more than a roof, car and food?

Subject: RE: BS: Bears Eating my Lunch
From: guest(intruder-inactive)
Date: 24 Mar 01 - 10:27 AM

rule #1. don't panic
rule #2. when faced with any decision-making or process oriented behavior, see rule #1
rule #3. there is no rule #3
rule #4. collective intelligence is as high as the lowest iq in the group (op cit "the weakest link theorum")
rule #5. see rule #1

and to be specific, your age is the percentage to invest conservitively
it also doesna hurt to have mirror-imaged 401k plans.

Subject: RE: BS: Bears Eating my Lunch
From: Midchuck
Date: 24 Mar 01 - 11:46 AM

Hmmm... What's it like having so much money that you can invest in more than a roof, car and food?

First, you pay college tuition and fees.

When that's paid off, you buy instruments.

But don't count on me as your investment advisor.

Peter.

Subject: RE: BS: Bears Eating my Lunch
From: Naemanson
Date: 24 Mar 01 - 11:56 AM

College tuition, room, board, and miscellaneous fees are part of my current investment strategy and will be for the next 5 years at least.

Subject: RE: BS: Bears Eating my Lunch
From: Lonesome EJ
Date: 24 Mar 01 - 12:52 PM

Spud, there are some similarities to 1928 evident. First of all the leveraged buying of stock made a comeback in the last few years, that is, people were borrowing money at 10% in order to invest in the market to obtain the 25 to 100% returns that were common. This works well until stocks start to drop, when panicked selling often ensues. Also, the rash of dotcom buying fever that enabled people to start a company on a whim, earn no profit, and sell the blue sky assets for millions. Even at the time, there was a feeling of no solidity to these purchases, that feeling was ignored in the mania of the "New Economy".

But I don't think overall factors reflect the economic status prior to '28. Inflation is not rampant, employment is quite steady, and the performance of most traditional "value" companies is healthy.

I am not wealthy, but I did manage to salt away some 401 savings every paycheck for ten years toward my retirement and my daughters college, along with some inheritance money from my Father. Maybe this is unusual for "folkies" but I think it's typical of most middle-income American families. This nest egg is the foundation of financial confidence for many, and seeing it erode away is very traumatic.

Amos, thanks for the words. As soon as we sell the rights for the screen version of "Mudcat Enterprise" I'm retiring!

Subject: RE: BS: Bears Eating my Lunch
From: Naemanson
Date: 24 Mar 01 - 01:00 PM

I think part of the problem is training. Personal financial management should be taught in school from the earliest grades. Right now it seems as though it is treated like sex education, something to be taught by the parents, who, of course, fall down on the job (at least mine did).

I have no idea what to do with my money except to struggle through to the next payday. I recognize that I should have saved for my childrens' education but back when we were getting surplus food from the local church that didn't seem achievable. Next thing I knew they were grown up and looking at colleges.

Subject: RE: BS: Bears Eating my Lunch
From: Spud Murphy
Date: 24 Mar 01 - 01:04 PM

Lonesome: I guess time will tell, won't it?

My problem is 'been there, done that, don need no more.'

Spud

Subject: RE: BS: Bears Eating my Lunch
From: Nathan in Texas
Date: 24 Mar 01 - 05:55 PM

When I saw the title of this thread, I thought it was a song I hadn't heard yet. Maybe someone needs to write it.

Subject: RE: BS: Bears Eating my Lunch
From: Spud Murphy
Date: 24 Mar 01 - 06:20 PM

They already did. Start with Woody Guthrie, for one. The thread refers to economic chaos and hard times. ie., depression.

Spud

Subject: RE: BS: Bears Eating my Lunch
From: GUEST,hg
Date: 24 Mar 01 - 07:56 PM

I agree with you, Naemanson. After being badly frightened by various traumas in my life I decided that understanding money would be one thing that might keep me safe. I set out to learn as much as I could in spite of the fact that my financial management father told me I shouldn't make any decisions on my own.

I've never regretted beginning to make investments when I was in my twenties. One thing we have in Florida is prepaid college tuition which is an excellent bargain. Of course, it doesn't pay room and board but I invested in that and feel some control over that financial challenge. We are also looking daily at FastWeb.com a scholarhsip web site that will send scholarship alerts. There is alot of money out there to be had for college expenses!

I keep a file of info on saving money to share with clients from energy conservation strategies to understanding 12b(1) expenses. I still do dollar cost average investing even though the market is a mess. Right now, CD's, and good old Series EE savings bonds look pretty good...I cashed in a UGMA investment just a little while ago to buy Nathan a car and I'm glad I did. At this moment I would have lost half it's value if I had waited...hg

Subject: RE: BS: Bears Eating my Lunch
From: wdyat12
Date: 24 Mar 01 - 08:04 PM

I bury my cash and sweep away my tracks in the snow. Seriously, we "Babyboomers" will be hurtin' when we all cash in our stocks at the same time.

wdyat12

Subject: RE: BS: Bears Eating my Lunch
From: GUEST,hg
Date: 24 Mar 01 - 08:13 PM

Also, Naemanson...I used the Academic Common Market when I moved from Arkansas to Florida to get my PhD. It saved me a bundle. In schools participating in the ACM here in the South, you can apply for in-state tuition as an out of state person and save the difference! hg

Subject: RE: BS: Bears Eating my Lunch
From: Naemanson
Date: 24 Mar 01 - 10:52 PM

Well, I've been investing in CD's for years and try to listen to some of them every day....