Comments on: World Markets Plunge: What should investors do (a multiple choice question)?

By: Market Volatility, Should I Get Out of the Stock Market? | Moolanomy

Market Volatility, Should I Get Out of the Stock Market? | Moolanomy — Sun, 20 Apr 2008 22:07:10 +0000

[...] World Markets Plunge: What should investors do (a multiple choice question)? @ The Dough Roller [...]

By: KC

KC — Fri, 25 Jan 2008 19:36:23 +0000

hi, just writing to share this amusing collection of images of traders freaking out:

http://crybabytraders.blogspot.com

By: DR

DR — Wed, 23 Jan 2008 03:04:09 +0000

Stacey, I’m partial to plain, although I’d take either. I’m somewhat of an M&M freak.

By: DR

DR — Wed, 23 Jan 2008 03:01:44 +0000

Kevin, I agree. Gold has a long term investment is terrible. I’d prefer silver over gold if I were investing in precious metals.

By: Lily

Lily — Tue, 22 Jan 2008 20:35:15 +0000

Hey, I’m watching Idol too!

I think buy, sell, or hold depends on what kind of down market you’re looking at. It isn’t a matter of market timing so much as personal risk tolerance. If you’re a more risk-averse investor, can you really be sure that seizing today’s buy opportunity won’t be a huge mistake if the market drops big over the next week? Can you be sure that you won’t sell in a panic? If you might do just this, then it’s not so much market timing as knowing your own psychology to avoid putting more money in the market now.

I’m still investing same as always in my 401(k) and IRA, but I’ve held off on “discretionary” taxable investments for now. There is somewhat of a “perfect storm” element to the current trading environment that I’d rather not tango with. I’d been planning to put more into cash savings anyway for a couple of short-term goals.

By: Mrs. Micah

Mrs. Micah — Tue, 22 Jan 2008 17:17:12 +0000

I’m with you about gold, Kevin. Gold is shiny. That is all.

It has the advantage that people like its shinyness and want to take advantage of it. And that people are stupid and actually might take it over trading for food or water. Because they are so attached to the shininess they forget that they can’t eat it.

I’ll be doing C. I might be tempted to buy, but I don’t have any investing money right now, which is probably for the best.

By: Janice

Janice — Tue, 22 Jan 2008 15:43:45 +0000

I work for a firm that invests in venture capital. I’ve just upped my 401K contribution to the max ($20,500 – just turned 50) and my employer will match it 50%. I am gonna buy, baby, buy while the market is low. Dave Ramsey is my hero – no debt but for a house payment, which is way lower than “they” say I can afford. I’m living like no one else so later I can live like no one else.

By: Kevin @ Change Your Tree

Kevin @ Change Your Tree — Tue, 22 Jan 2008 14:38:22 +0000

I hate it when people claim that gold is inflation-proof, recession-proof, and market-collapse proof.

It simply isn’t the case.

IF the market collapses and we’re in a depression with people simply trying to survive, gold isn’t going to be worth jack. We’ll be back to bartering and simply trying to feed our families. Water and food will be worth more than gold.

Gold is a horrible investment. It’s long term growth barely beats inflation.

At a time like this, you either hold on to your current investments or buy more. If you’re selling, you’re investing wrong. Investing is long term. The market isn’t going to crash and it’s always going to go back up.

Selling here and buying gold would be a huge mistake.

By: Stacey

Stacey — Tue, 22 Jan 2008 13:05:21 +0000

My old co-worker used to say, “If you don’t know what to do, don’t do anything.”

I was fifteen, working at the local movie theater and couldn’t decide whether I wanted plain or peanut M&Ms.

It’s still practical advice.