Dow below 6800

[sweeps]

Ok, so the Dow is where it was in 1997. That's about the time I started investing. It's nice to see I've come a long way.

[Broken Arrow]

I know there are a lot of fear out there, including here in this forum. However, with a proper asset allocation relative to risk tolerance and time horizon, there isn't much to fear.

To me, this is a time of opportunity and to get greedy on equities. (For shorter time horizons, I'm liking the looks of corporate bonds right now.)

I mean, sure, our existing portfolio is taking a hit on paper, but again, if you're investing properly, this isn't the time to be running away from the market.

The stock market is about the only market I know where people run AWAY from a good sale...

[red92s]

Wish my 401(K) contribution had gone in today instead of last friday! To make matters worse, the annual "retirement savings plan" contribution from my employer went through Friday as well . . . would have liked that $1,000 to go in today at a 4% discount.

[banditfist]

Corporate bonds are still a risk. Look at GE. Their credit default swaps are trading as if they are going to default. BUT, Moody's still claims that they are AAA rated! There is a disconnect there.

There is no support or confidence in the market right now. The mouthbreathers in Washington still think that they can fix things.
We broke a critical level on Friday. I know that most people on this forum are buy-and-hold, but technical analysis is what I use. Today's action confirmed Friday.

In a bear market, cash is king. Cash is a VERY valid position.

[disneysteve]

Ok, so the Dow is where it was in 1997. That's about the time I started investing. It's nice to see I've come a long way.

I think you were being sarcastic, but it is important to understand that just because the DJIA is back to its 1997 level, that does not mean that someone, like yourself, who has been investing since then has not made any money along the way. Thanks to interest, dividends, capital gains, compounding and dollar-cost averaging, most investors have made money over time.

Even if you had invested a lump sum in 1997, your account would be worth a lot more today than it was at that point.

I think this is something that a lot of people fail to understand.

[Goldy1]

MY concern is needing the money before retirement due to unforseen circumstances. MEaning the emergancy fund runs out and needing to tap it. It is unlikely to occur, but one reason I shudder at the stocks going down yet again.

I don't watch them daily, but are they literally going dwon every day for weeks on end??? This is a serious question. lol

[disneysteve]

I don't watch them daily, but are they literally going dwon every day for weeks on end??? This is a serious question. lol

Pretty much. There has been an up day here and there but not enough to matter. Up 50 points one day and down 250 the next - the up day just gets wiped out.

[Broken Arrow]

Corporate bonds are still a risk. Look at GE. Their credit default swaps are trading as if they are going to default. BUT, Moody's still claims that they are AAA rated! There is a disconnect there.

I don't disagree with this, and perhaps it is my fault for speaking so generally about corporate bonds. However, like stocks, there good exceptions out there that we can cherry pick. For example, the last time I looked, I liked Wal-Mart store bonds.

In a bear market, cash is king. Cash is a VERY valid position.

I don't disagree with this... so long as it's within a proper allocation that reflects financial goals and risk tolerance. Otherwise, it implies market timing.

[GrimJack]

Just think of how well your DrIPs are doing!