[freeinhou]

What does July 2002, October 2002, March 2003, November 2008, and February 2009 have in common?

S&P 500 index fell below 800. Seriously. Do a 10 year search on the index.

It did it again today.

I made a little over 15% the first 2 times within 30 days (July 2002 only took 10 days). I chickened out of March 2003 (beginning of Gulf War). Last November, close to 20%. After 15 days. This time???

Bottom line, the index doesn't wanna be at 800. It likes 900 as a minimum.

There's a penalty for selling stuff ya hold less than 90 days. It's only 1.5%.

Got guts? Go for it!

No wonder I got heart problems. Stress... But I really hate losing money and will do whatever to get some of it back.

I do this with Fidelity Spartan S&P 500 index fund. Vanguard's 500 index fund has worked for me too. I'm not advocating anything. I think every major group has an index fund.

Tom

[DM]

Hey Tom! Thank goodness my DH takes care of that stuff at our house. He's sure been grumbling about the losses though. I can kind of tell what the mkt is doing by his reaction when he watches the news.

It's all Greek to me.

[Dejibo]

The stock market is NOT the place to put money that you are going to need, or want in the next 5 years. the stock market is the place to put money that you will allow to ride out 10 or more years. If you can do that, it CAN be a wonderful tool to earn some money, BUT...you MUST pay attention to what stocks you or your 401k are invested in, and what direction they are headed in. Many 401k plans will allow you to pick, safe ride, or risky ride type investments. My 401k is invested in the "safe" ride and my personal investments are the riskier rides. I heavily control, and am ontop of this risky ride. I have made some great money, and lost some money, but its a balance thing. its a hobby, and its something that I watch closely. NEVER put money into a stock market that you cant afford to completely lose. The old days of the big blue stocks (GM, Ford, IBM, Microsoft, and so on) being a safe bet, are NOT safe bets anymore. Its all kind of a crap shoot right now.

Fasten your seatbelt, its gonna be a bumpy ride folks!

[Debbie D]

My DH got our investments into safe harbors before everything went into the toilet...thank goodness...
If only he'd heeded my advice about getting into gold when it was around $400 an ounce

[legzzalot]

money? where? I don't see any money!

but if you want to send me some I will be happy to provide you with my paypal account info!

[Victor H]

It will be a very bumpy ride for the next decade or so.

I suspect that there will be temporary opportunities, as noted by Tom, but for the next ten or so years, cash will be king.

The folks that survived the last depression did so by either living on the edge (temporary work, food lines, etc) or by stashing every penny in a safe place during the turmoil.

The folks that thrived during the depression were those that were patient and not tempted by popular investments. (Hence, Tom's idea, which would not be a "popular" investment, may be one that is valuable as it is a strike and retreat method.

We are reliving the Great Depression, and we need to do whatever we can to persist. Just find out what worked for those that thrived at that time and you will be OK. But, be sure to pay special attention to those who are the "experts" and avoid their advice.

Hang in there everyone. We are already converting our back yard to a 0.3 acre vegetable garden.

We have redefined our lives in many ways by determining what we need to live and what we "want". Need and want are very different, and by addressing the "need" and vanquishing the "want" has helped in many ways.

-Vic

[SallyC]

DH and I never did jump into the Stock Market. I only trust sure things, and that's with a grain of salt, now, since there really is no such thing!!!

My DD is the Market Guru...she's a Personal Banker for a bunch of rich folk so has to know what's what..

I'm thinking a mattress is a good investment, right now..

[Dejibo]

ya see, I have been frugal for a long time. I have grown my own veggies, and buy local beef, eggs, and products right here! Not only is it better for you, its not processed, and over priced. I trade tomatoes for honey, and squash or garden space for beef/eggs. My garden is about a half acre in space. its been a work of love to make it totally organic. To remove the bed of soil that was there, and replace it with the good stuff was hard work, but oh boy, it is paying off now. I sell veggies at my road side, using the honor system. I am always impressed when I go out at the end of the day and find money in the box. Its rare to see someone take a tomato and drive off without paying.

I have clipped coupons, and streched every dollar since I was a child. I grew up poor, so I knew how to do it. The most valueable thing I have, and refused to skimp on was healthcare, and insurance. I made room for that in every budget. I have never been a girl to run out and buy the latest fashion, simply because a magazine says so. When I bought this house, I didnt listen when the banks tried to talk me into a bigger. better. more expensive house. I KNEW my budget, and stuck to it.

I think I would have survived the great depression, and I believe I will survive this one too. I have some money tucked away, have been a cash shopper for years, and own all of the things in my home. My cars are paid for, and I prebuy heating fuel. Who cares if my car is 10 years old? it is in perfect running condition,and in great repair.

Yep, Vic is right. Cash is gonna be the thing for a long time.