Wednesday, October 08, 2008

Free-Fallin'



There's your freefall. Above is a daily DJIA chart. Look at the last few days on the stock market. The DOW has fallen consecutively since the 'bail-out'. If you look at the day Congress first defeated the bailout, stocks actually RALLIED the next day!

The market will most likely turn back up. The DOW is well below 10,000, and, after correcting, will begin it's upward momentum, as always. Having no real stock market experience, this blog author doesn't claim to know when or what stocks will begin the rally, but logic dictates that it will eventually correct.

My point is simply that the 'bail-out' hasn't done any immediate good, and has, in fact, done far more bad than good. Creating debt to pay off debt only increases debt in the long run. Compound debt will increase exponentially if the principal is never decreased. That's just the way it is.

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3 Comments:

Anonymous Anonymous said...

Don says:
Years ago in the early ‘70s I dabbled in the stock market for a while, not knowing what I was doing. I finally gave it up and luckily came out a small bit ahead.

I believe that the present economic condition of the entire world may make it take a long time for the market to correct and head back up.

That said, this would be my advice today. If you’re in the market, you’ve probably already taken your biggest loss, so it’s no time to panic and get out. You never should have invested more than you could afford to lose because the stock market is the world’s largest casino, and you should have invested for the long term of at least five years, instead of trying to be a “trader”. You should have invested month after month whether the market was going up or not, just as you would have put an amount into a savings account in a bank. Rather than investing in separate stocks you should have investigated the long term record of well managed mutual funds and invested in only the best of the best. Possibly, you should have sought the advice of an investment counselor who has a good record and one that you feel comfortable with before choosing which mutual fund or funds to invest in.

9:00 AM  
Blogger Tonewah said...

Hi Don. I haven't looked at my mutual funds since I checked them a few months ago and saw the 5 figure loss. I have a Roth IRA and 401k, both of which have suffered. I also have a company profit share that is hurting. Being that I have 40 years or something before I could draw Social Security, which probably won't be there by then, anyway, I guess I have no choice but to sit back and watch it. lol.

6:59 PM  
Anonymous Anonymous said...

Don here on my daily visit.

Tony, at least you can laugh at it. Laughing beats crying or jumping from the roof of the tallest building in town.
I wish you good luck and prosperity some day....just as I do for the USA.

10:08 AM  

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