# Are You Worried About the Stock Market?



## Lon

The Dow has dropped dramatically this week. Now under 16,000. Are you worried?


----------



## Vivjen

Out of my control; no point in worrying.


----------



## oldman

Well, concerned may be a better word. Here in the U.S. we are close to having deflation. Some countries overseas have already entered that quagmire. I am being vigilant keeping an eye on my investments and have for the time being suspended my trading. With Christmas coming this may be good news (deflation) for the consumers. For investors, it's bad news. I'm keeping an eye on oil prices as Art Cashin has suggested. If WTI oil goes below $80.00, I may sell my index funds and switch to small caps. But, I haven't determined that I need to do that just yet. Earnings are doing better for most, so what we are seeing may be a mixture of things including, deflation, Ebola and oil prices.


----------



## QuickSilver

Isn't this just the normal October adjustment?    Can't say I'm too worried.. I'll do what I always do when the market is down... keep on buying. Because it always goes up.. and I have many more shares.


----------



## LogicsHere

I won't buy any more because I don't have the money to spend, but the only item I have at risk presently is my IRA.  My annuities are guaranteed at highest anniversary value regardless of loss in actual dollars.


----------



## QuickSilver

When the market tanked to 6,000, I still invested... however, I wouldn't even look at my statements, because it looked like I was throwing money into a hole!! I actually had friends that cashed in their funds, despite my telling them not to.. Imagine how nice all those shares looked when the market hit 17,000!  I'm still investing because I'm still working...


----------



## oakapple

Nope. Don't have any shares.


----------



## QuickSilver

Despite the risks involved... Investing in the market...especially using the Money markets funds that spreads out the risk through diversifying, is decidedly better than putting money in a bank account of a CD. My financial advisor has given this analogy.. Investing in the Market is like playing with a yo-yo while walking up a flight of stairs. You will have day to day gains and losses, but in the long term, you will make money. 




> With five-year CD rates hovering at just 1.19 percent according to Bankrate's most recent weekly rate survey, investing in CDs and excluding stocks from a retirement portfolio could add a few years to a saver's retirement plan as well as dramatically increase the amount they need to save.
> Savers willing to be more aggressive with their investments run the risk of losing part of their savings but also may get better returns.
> Over the past 20 years, between Nov. 15 1991 and Nov. 15 2011, the Standard & Poor's 500 index increased about 225 percent. But if you narrow the range to just the past decade the returns are decidedly lower -- the index is up 10.12 percent from the same date in 2001.




Read more: http://www.bankrate.com/financing/cd-rates/cds-vs-stocks-for-retirement/#ixzz3GPBYO5a3 
Follow us: @Bankrate on Twitter | Bankrate on Facebook​


----------



## Vala

I am not worried  because my money is in a savings account.   I never invested in anything except CDs and have never lost a dime.   When my husband retired we got his pension, soc sec and eventually my soc sec.  We did not need anymore money and I do not mean we were rich, just not in need. We even cancelled his life insurance policy's.  My sister lost $50, 000. in the market, my friend lost the same amount.  Another friend was afraid to take her money out of the market because of paying all of those taxes.  She even had to beg for her money to buy a new car.   I gave her a pep talk and told her to tell the man it was her money and she wanted it.   In fact she told him "you are not my husband and you can't tell me no, I want some money."  Love that one.


----------



## QuickSilver

I lost way more than that when the market tanked down to 6,000.    I resisted the urge to take my money out... and in fact kept on buying... Well now the market is close to 18,000.  SOOOOOOO do the math!  Made all my money back and way way more..  I know people that cashed out low and are kicking themselves in the hind quarters..


----------



## Ina

Whatever happened to investing in land??? :dunno:


----------



## QuickSilver

Ina said:


> Whatever happened to investing in land??? :dunno:



Real Estate used to be a sure bet... BUT with the housing bubble... It's a pretty bad investment now.


----------



## Ina

Here and around much of Texas, land is still a good investment.  Much of Texas is still in boom mode.  Harris county's land is still going at a premium, more now than ever before.  
We plan on selling everything in a couple of years.  After watching our family jockying for our property and assets after our son died last February, we have desided to sell, and spend it all on ourselves.  So call us selfish. :tapfoot:


----------



## kaemicha

If you invest you just can't worry. I made it through 2008 and survived and now that the market is so high, I'm still good. I try to be conservative in my investments but I do have some risky ones that have been a pure surprise. I'll probably stay in the market until I leave this earth.
And, my sister and I have properties, too, so when they sell...please sell!!


----------



## Vala

Kaemicha,  Do you ever take any of the earnings out?   You don't ever plan to spend some of it?   My friend is an accountant and one of her clients earned $50,000..  When tax time rolled around she told him he should take it out because it was just paper until he put it in the bank.  He said no he wanted to keep making money and he paid the taxes on it.   The next year he lost it all.  I don't understand the logic in that.  

My husband had 2 properties when we married I had one.  He never sold any property he bought so when we married we had 3 properties.   Coming by it that way was a boon to us.   I took care of the rentals since I did not work a job.  Those rentals are part of the reason I am as comfortable as I am.


----------



## kaemicha

Vala,
I'm glad you brought this up - especially at this time. I've been letting my money stay in my profile, luckily with the exception of 2008, it's been healthy but just this week I was thinking just what you suggested.Why risk it anymore? I could just throw it all in my money market accounts. My financial advisor won't like it but I like security more.
Thanks for bringing that to my attention.


----------



## Vala

You are very welcome.   Our financial security was always very important to me.  We were very poor when I was a child, I didn't know it at the time, but my sisters told me a lot when I grew up.   I bought my first home for $10,000, no basement or garage and I was in heaven, it was new and mine, it felt like was a palace after years of my parents renting.  I took very good care of it and everything I had.  I've have had 3 new homes, couldn't pay off the first fast as we lived pay day to pay day.   The next one I paid off in 15 years instead of 30 and paid cash for this home and replaced most of our savings when I sold the last one.  My husband's goal was to have a new car paid for when he retired, we did a bit better than that. I don't mean to be bragging, it's just that everyone needs a home paid for when they retire or they can be in serious trouble.  I see Oregon is your area, it, Washington state and Vancouver are my favorite places in the world.  I would love to live there, but with what I have I could not afford  a shack.  LOL


----------



## Jackie22

I'm not too worried, I bought 100 shares of Halliburton this week, it was down 11 points.


----------



## oldman

I have been good with the markets until the past few weeks. With oil dropping to a new low since 2009 yesterday and China keeping to fan the flames of deflation, I am unsure which way to turn. I had stopped being involved in the markets about a year or so ago because we were doing everything pretty darn good. Now, maybe too darn good, as countries start to bring jobs back to their homelands. I read this morning that S-K-B is moving jobs out of the U.S. and taking them back to England. I am not sure how many jobs will be affected. 

There's no rush or need to panic and start reducing investments, but a slower hand may be wise. I bought Apple yesterday on hopes of it having a great fourth quarter. I also bought a few ETF's, which right now are my favorite to trade. I used to do day trading, but pretty much got away from that. I still buy and sell occasionally, but no more day trading. I use Scottrade or Fidelity. One is as good as the other, except Fidelity has better resources for getting information on stocks before you dive in. I sometimes wish that we had an "Investment" thread on this forum. It would be interesting just to read. I remember going to a seminar held by Fidelity in Towson, Maryland and they had the not so famous Peter Lynch at the time as a guest speaker. This is going back to quite a few years ago. At the end of the seminar and he was taking questions, I asked him what was the best resource for getting information and he replied to read everything that I could get my hands on and pay attention to what's going on out there in the world. He was telling the story about the time his wife dragged him to the mall and she went into one of the stores to look and try some clothes on. He said he took a seat in the mall and just watched people as they flowed in and out of the stores. One store in particular grabbed his attention as it seemed to be very busy. It was new store, or at least not one he had ever heard of before. The store was "The Limited." he thought for sure that it was owned probably by another larger company, but he said when he checked he found out it was a small cap stock, so he bought a load for his funds and also his own personal fund. The rest is history. That was just one example of what he meant by keeping your eyes open when out there. 

I always give the same advice to everyone, "Never invest more than you can afford to lose." (But, it can be fun, especially, if you have a few nice big gainers.)


----------



## []Doo[]Der

Nope. Unless you intend to use it, ride it out.

I am considering switching some US investments to the same in Canadian dollars, I can pick up 10% just in the $ difference.


----------



## Vala

Oldman...I don't like addressing you that way.  Anyway I agree with you, don't invest any more than you can afford to loose.


----------



## oldman

Don't worry about calling me oldman....I earned that as being the oldest man in my car club. (But, I am also the one with the most knowledge.)


----------



## QuickSilver

Vala said:


> Oldman...I don't like addressing you that way.  Anyway I agree with you, don't invest any more than you can afford to loose.



That's why I invest only in mutual funds which spread out the risk..  I own a lot of funds of varying levels of rish..  as I have gotten closer to retirement we have invested more in lower risk and income generating funds.    I would never ever try to jump into the market and invest in individual stocks by myself..  Unless you REALLY understand the market.. you are going to get burned.


----------



## rkunsaw

I have my investments spread between 5 different kinds of mutual funds. Bank savings accounts, CDs, and money market accounts are a sure way to lose money. None of them keep up with inflation.


----------



## QuickSilver

I keep about 6 months salary in a bank account..  For unforeseen emergencies.. It's for immediate accessability.  The bulk of my money is in funds and I have one annuity with a locked in income no matter what the market is doing.  It locks in every year to a higher amount if the market is up... But it cannot go down if the market tanks.  There are a lot of good products out there... You have to have a knowledgable financial advisor to steer you to them.


----------



## Vala

You do not lose money in the ways you mentioned, you just don't earn as much.  Inflation is one of the things the money men always mention, a scare tactic. If you are worried about inflation, keep saving after you retire.

Quick silver can you take your money out of the annuity? 

When my husband retired the money men seemed to be coming out of the wood work.  I was very annoyed that his company would sell our names that way.  We let one come to our home to see what they had to offer.  They gave us options, then looked at my husband suggested an annuity that would give me an income if he died.   I don't trust people who want our money.  I asked him if we could get the money out of the annuity if we needed  a kidney transplant or other emergency.  He said no.  That was the end our  discussion with them.   More called and they would not speak with me of course, so I had my husband come to the phone every time.  He got tired of that and told the last one, you speak to my wife or no one, she is the secretary and treasurer.  LOL


----------



## rkunsaw

You are wrong about inflation Vala. If your CD pays 1% and inflation rises 2% you are losing money. 

If you buy a hamburger for a dollar this year and your dollar earns a penny but the cost of the hamburger goes up to $1.02 you have lost money.


----------



## Vala

I think you know what I mean, you do not lose money with your  in Cds/bank.


----------



## rkunsaw

Vala said:


> I think you know what I mean, you do not lose money with your  in Cds/bank.



That's true Vala you  don't lose money but you lose buying power. In the stock market there is the potential of losing your investment but by spreading it around the risk is minimal and you have a good chance of beating inflation.


----------



## QuickSilver

> Quick silver can you take your money out of the annuity?



I get a nice check every quarter

 I have no intention of touching the principle...  It's an income source.     I would be concerned if that was the only money I had..  that is just a portion of my portfolio.   I have traditional IRA's and a pretty nice ROTH..


----------



## Bullie76

rkunsaw said:


> I have my investments spread between 5 different kinds of mutual funds. Bank savings accounts, CDs, and money market accounts are a sure way to lose money. None of them keep up with inflation.



Agree. Spread your money around to level out the risk and to hopefully stay ahead of inflation. I do have cd's and money market accts for stability, but I also have an allocation to equities and real estate. Sure I have days when my investments are lower but I don't look at it as 'lost' money. I just ride it out. Not easy for some to do though.


----------



## QuickSilver

Bullie76 said:


> Agree. Spread your money around to level out the risk and to hopefully stay ahead of inflation. I do have cd's and money market accts for stability, but I also have an allocation to equities and real estate. Sure I have days when my investments are lower but I don't look at it as 'lost' money. I just ride it out. Not easy for some to do though.



Someone said that having money in the Market is like walking up a flight of stairs while playing with a Yo-yo.   You have daily ups and downs, but in the long run, you are going UP...  The market has always outperformed CD's..   and as you have stated, when you are in a Mutual Fund... you are buying shares in that fund which have already spread out the risk.   You never lose the number of shares you own.. it's their value that fluctuates.   If you continued buying shares when the market tanked down to $6000,   you now have those shares worth much more now that the market is almost at $18000.   People that pulled their money out in 2009 should be kicking themselves in their arses..


----------



## mathjak107

Vala said:


> I am not worried  because my money is in a savings account.   I never invested in anything except CDs and have never lost a dime.   When my husband retired we got his pension, soc sec and eventually my soc sec.  We did not need anymore money and I do not mean we were rich, just not in need. We even cancelled his life insurance policy's.  My sister lost $50, 000. in the market, my friend lost the same amount.  Another friend was afraid to take her money out of the market because of paying all of those taxes.  She even had to beg for her money to buy a new car.   I gave her a pep talk and told her to tell the man it was her money and she wanted it.   In fact she told him "you are not my husband and you can't tell me no, I want some money."  Love that one.



actually since 2014 a dollar lost 8%  so yeah you did loose money in the form of purchasing power  as cd rates did not keep up , there is no difference losing 8% in purchasing power or losing 8% in a speculation  ... on the other hand 1 dollar in the s&p 500  in 2014 when this was written is now up almost 8% a year not cumulative but yearly.


----------



## Lc jones

The debt load of the United States is unsupportable and what goes up will come down it’s only a matter of time. We have to pay off the debt as quickly as we can or suffer the consequences.


----------



## mathjak107

Not happening ....this has been the story line since World War II .... at this stage it is just like an interest only loan that goes on as long as the world believes in the dollar


----------



## OneEyedDiva

mathjak107 said:


> actually since 2014 a dollar lost 8%  so yeah you did loose money in the form of purchasing power  as cd rates did not keep up , there is no difference losing 8% in purchasing power or losing 8% in a speculation  ... on the other hand 1 dollar in the s&p 500  in 2014 when this was written is now up almost 8% a year not cumulative but yearly.


Seems like the OP hasn't shown up here since 2014 Mathjak.


----------



## mathjak107

Irrelevant since discussions end up being a wealth of information for everyone else


----------



## CallmeIshmael

Hi, new here.  Just wanted to note that I don't think it is necessarily clear that our debt levels are unsupportable.  Just look at Japanese debt to their GDP, which is a significant multiple above the US debt to GDP level.  Another proxy is that despite all of the debt that the US has outstanding, there is a worrying lack of inflation.  At some point debt levels become unsustainable, but it seems like objective information suggests the US is pretty far away from those levels.


----------



## mathjak107

Vala said:


> I think you know what I mean, you do not lose money with your  in Cds/bank.


Getting 2% on a cd in a 3 or 4% inflation world  is a negative  real return as it is called . These are the  returns that matter  ....the nominal returns which are not inflation adjusted mean little. It is your real return that counts and if it is negative it is a loss


----------



## fmdog44

This is stupid, the OP is nearly six years old.


----------



## mathjak107

Like I said ,most posts stay informative for others regardless if the op is around or even if the thread veers off course and no longer even references the original question the op had


----------



## Aunt Bea

The numbers pretty much answer the OP's question.

On October 15, 2014, the Dow closed at $16,141.70 and last Friday the Dow closed at $26,403.28.


----------



## mathjak107

Aunt Bea said:


> The numbers pretty much answer the OP's question.
> 
> On October 15, 2014, the Dow closed at $16,141.70 and last Friday the Dow closed at $26,403.28.


remember though , the dow and s&p numbers do not include dividends paid out  so the gain is actually much higher once you add them back in .

from october 2014 to now the s&p 500 is up 61%


----------



## Don M.

It seems to me that the biggest risks in the Markets today are coming from "Twitter".


----------



## mathjak107

Don M. said:


> It seems to me that the biggest risks in the Markets today are coming from "Twitter".


Close his Twitter account and markets will do well.  Lol


----------



## OneEyedDiva

mathjak107 said:


> Irrelevant since discussions end up being a wealth of information for everyone else


This is true.


----------

