How's That 401K Looking Now???

PatM · Aug 8, 2011

Wow, Dow down 633 points. My 401K is in the stock market and it's taking a beating. I have black and blue marks all over my back.
Gold at $1720 an ounce and the VIX up 48% to 47.5. Yikes.

What a mess eh? Put on your seatbelt it's going to be a bumpy ride and it does not look like it will get better any time soon.

Apple is now selling at 12 X earnings. It smells like a buying opportunity or maybe it will get even cheaper?? Either way probably not a bad time to buy if you want to own some Apple stock.

Dysfunction · Aug 8, 2011

Eh, I got another 25-30 years before retirement. That's a lot of time for stock market fluctuations.

Bigger concerns are more immediate. The recent devaluing of the US credit rating is concerning, especially because of the statement that they partially did so because of concerns over the governments stability and predictability.

PatM · Aug 8, 2011

S & P is acting politically rather than as a true ratings agency. Look at the S & P record. It's poor poor poor. As far as I am concerned all there trying to do is upgrade their lame credibility.

No doubt that confidence is lowered. Thus the reaction in the market. Nevertheless for those of us who don't have 25 or 30 years to invest losses like this make it very difficult to plan for your retirement in the near future.

Let me see France has a higher rating than the US? Oh come on!!

Dysfunction · Aug 8, 2011

Oh yea, I'm certainly not arguing that this won't effect people close to retirement. It's just not an issue for me at this point. To be honest, I really don't have any anticipation of retirement in my lifetime. Consider me in the 'work till death' camp. This isn't really a negative thing, I just can't even come to terms with doing nothing. I'll probably 'retire', but only in the meaning that I'll change careers.. again.

France? Eh. Italy and Greece.. that'd be a serious concern

schweb · Aug 8, 2011

I'm not looking at my 401k. I don't want to know how it's doing right now. But I also am not going to panic or worry too much about it. I'll just keep buying like I have been and over the long-term it will be fine.

What goes down must go up. And if you're investing for the long-term, this panic selling just makes a great time to find a huge amount of value to buy.

schweb · Aug 8, 2011

Oh and as far as the ratings, those are pretty irrelevant since people are continuing to buy US Treasuries. I actually heard on NPR today that demand for US Treasuries is actually higher than before the downgrade. So yeah, pretty meaningless.

Remember, S&P is the same company who missed the mortgage meltdown and the European debt crisis. Not quite so sure they know what they're doing anyway. And the other two agencies still have us at AAA.

And for conspiracy theorists, S&P is owned by McGraw Hill who's CEO is a huge supporter of Romney in 2012. Take that for what you will.

PatM · Aug 8, 2011

I understand what your saying. i have several business associates older than I am who retired and within 2 years had passed away. (1 within a year.) So much for retirement.

I'm not sure that man was necessarily made to retire. Maybe slow down or do something different like you stated but really retire as in do nothing, I'm not sure that is a good option unless your filthy rich and then your job is typically managing your money.

I wouldn't mind the rich thing but hold little hope that it will materialize. (Especially this late in the game.)

The whole thing is interesting though. History in the making.

PatM · Aug 8, 2011

schweb said:
I'm not looking at my 401k. I don't want to know how it's doing right now. But I also am not going to panic or worry too much about it. I'll just keep buying like I have been and over the long-term it will be fine.

What goes down must go up. And if you're investing for the long-term, this panic selling just makes a great time to find a huge amount of value to buy.

I look at mine and sigh. But I never stop buying and keep my contribution maxed out. I just try to view it as a buying opportunity. Panic does not help the investor.

chscag · Aug 8, 2011

Remember, S&P is the same company who missed the mortgage meltdown and the European debt crisis. Not quite so sure they know what they're doing anyway. And the other two agencies still have us at AAA.

That's right. Fannie and Freddy received a free pass from S&P. However, the word out today is that Moody's may also do a downgrade. If that happens, things will only get worse. But you're right... what goes down will eventually go back up and now is a great time to buy. Provided of course you have the resources.

RavingMac · Aug 8, 2011

I've shifted to a more aggressive 60/40 mix from my previous 25/75 mix, with 60% being stocks. The market may drop a little further but baring total collapse it will recover.

chscag · Aug 8, 2011

When you get to be my age, you buy a king size mattress and put your 401K in the lining and then sleep on it. ;P

RavingMac · Aug 8, 2011

chscag said:
When you get to be my age, you buy a king size mattress and put your 401K in the lining and then sleep on it. ;P

At my age I need more padding than that . . . It'd be a pretty thin mattress.

vansmith · Aug 8, 2011

schweb said:
Oh and as far as the ratings, those are pretty irrelevant since people are continuing to buy US Treasuries. I actually heard on NPR today that demand for US Treasuries is actually higher than before the downgrade. So yeah, pretty meaningless.

Remember, S&P is the same company who missed the mortgage meltdown and the European debt crisis. Not quite so sure they know what they're doing anyway. And the other two agencies still have us at AAA.

Yeah, those ratings are irrelevant. Canada was at AA+ for 10 years during the 90s/early 2000s and our economy came out of that really well (nor did it implode and die a horrible death during the time it was AA+).

Oh, and apparently the primary analyst who made the call was a Canadian. So...you're welcome?

toMACsh · Aug 8, 2011

Dysfunction said:
Bigger concerns are more immediate. The recent devaluing of the US credit rating is concerning, especially because of the statement that they partially did so because of concerns over the governments stability and predictability.

You mean in- and un- of course.

PatM said:
S & P is acting politically rather than as a true ratings agency. Look at the S & P record. It's poor poor poor.

Yeah, Standard & Poors!

It's a small firm, less than 1300 employees. And they can analyze the global economy? Right!

schweb said:
I'm not looking at my 401k. I don't want to know how it's doing right now. But I also am not going to panic or worry too much about it. I'll just keep buying like I have been and over the long-term it will be fine.

What goes down must go up. And if you're investing for the long-term, this panic selling just makes a great time to find a huge amount of value to buy.

Yep. My approach is the same.

Dysfunction · Aug 8, 2011

Well, here's how I look at it. I don't really care about S&P's rating. I consider that to be a red-herring. I do, however, agree that our current elected government is fundamentally dysfunctional. Simply put, IMO personal and party gains have supplanted any concern for the country's needs in general. I agree that there's very little likelihood that there will be any consensus regarding the debt and budget until at least after the 2012 presidential election. So, in an effort to jockey for position for that election, our wonderful elected officials will ignore the real issues. At least that's how I view it at this point. In short, I ain't voting for any incumbent (regardless of party), well with the possible exception of Giffords.

afriqueart · Aug 9, 2011

My 401 K is now a 4.01k

XJ-linux · Aug 9, 2011

afriqueart said:
My 401 K is now a 4.01k

LOL. Good one.

PatM · Aug 9, 2011

Dysfunction said:
Well, here's how I look at it. I don't really care about S&P's rating. I consider that to be a red-herring. I do, however, agree that our current elected government is fundamentally dysfunctional. Simply put, IMO personal and party gains have supplanted any concern for the country's needs in general. I agree that there's very little likelihood that there will be any consensus regarding the debt and budget until at least after the 2012 presidential election. So, in an effort to jockey for position for that election, our wonderful elected officials will ignore the real issues. At least that's how I view it at this point. In short, I ain't voting for any incumbent (regardless of party), well with the possible exception of Giffords.

For the most part I agree. Clearly those in office only care about their political future and not the what is best for the country as a whole. Eventually those in office will get the message but it will take a rotation of several times before "they" get it.

codda · Aug 9, 2011

schweb said:
Oh and as far as the ratings, those are pretty irrelevant since people are continuing to buy US Treasuries. I actually heard on NPR today that demand for US Treasuries is actually higher than before the downgrade. So yeah, pretty meaningless.

Remember, S&P is the same company who missed the mortgage meltdown and the European debt crisis. Not quite so sure they know what they're doing anyway. And the other two agencies still have us at AAA.

And for conspiracy theorists, S&P is owned by McGraw Hill who's CEO is a huge supporter of Romney in 2012. Take that for what you will.

Yeah....plus a government funded program like NPR would never slant the news...;D

schweb · Aug 9, 2011

codda said:
Yeah....plus a government funded program like NPR would never slant the news...;D

Ok, so let's take NPR out of it. Go look up the actual financial transaction information, you'll see the truth is there. Oh, and the same was also on several other news programs.

Anyway, back to reality.

How's That 401K Looking Now???

PatM

Dysfunction

PatM

Dysfunction

schweb

schweb

PatM

PatM

chscag

Well-known member

RavingMac

Well-known member

chscag

Well-known member

RavingMac

Well-known member

vansmith

Senior Member

toMACsh

Dysfunction

afriqueart

XJ-linux

PatM

codda

schweb

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