For the USA.
U.S. Credit Downgraded: S&P Reduces Rating To AA+, the U.S. was AAA+ since 1917. I don't want to start the panic attack, but jump ship now, 401K's are going to hit the fan!
http://www.huffingtonpost.com/2011/08/05/downgrade-us-standard-and-poors_n_919867.html?icid=maing-grid7%7Cmain5%7Cdl1%7Csec1_lnk3%7C84134
http://abcnews.go.com/Business/us-sees-standard-poors-debt-rating-downgrade-coming/story?id=14220820
http://www.foxnews.com/politics/2011/08/05/us-official-says-sp-reconsidering-us-credit-downgrade/
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- If you have a 401k, get out of the high risk stocks now!
If you have a 401k, get out of the high risk stocks now! Follow
Thanks for the... uh, suggestion? 
show us your tits.
Tyrrant wrote:
***** OR GTFO
Only a fool puts their savings in high risk stocks.
I would very much recommend against making changes to your investments right now.
Tailmon wrote:
Only a fool puts their savings in high risk stocks.
The US dollar is in for some interesting times, because some large nations require by law their cash and bond investments to be ONLY invested in AAA rated stock. If the US has lost its AAA rating, then several nations will be selling off their US dollar cash and bonds, asap, and at any price, to comply with their own laws.
Tailmon wrote:
Only a foolish person close to retirement, or foolish elderly poor person, puts more than a little of their savings in high risk stocks.
High risk stocks are usually a good idea for a younger person to own, as part of a diversified investment portfolio. You just don't put money you can't afford to lose in high risk investments.
In the long run, if you have a diversified portfolio of higher risk mutual funds you're very likely to gain money. They'll fluctuate a lot but you're not supposed to have them when you're old, anyway.
#11REDACTED,
Posted: Aug 06 2011 at 4:43 PM, Rating: Sub-Default, (Expand Post) More risk might be more reward. In the past 20 years unless your always watching and checking and more with your inventments then you will loose. I remember my co-workers laughing at me for not investing in Dell when I worked there. Instead I chose a balanced steady growth fund. When Dell's stock went to **** with the tech market crash I lost a whopping 200 dollars from my 401k. Most people lost thousands or more. Luberiderm you shold not call someone a fool when you have no clue. I still laugh at my Father that loved bank stocks. Twice he has lost hundreds of thousands because of it. Some people never learn.
The fact that your father - who, if you're any indication, was not the brightest bulb - chose to invest in stocks and chose poorly does not support a strategy of "don't put savings in high risk stocks".
Tailmon wrote:
Luberiderm you shold not call someone a fool when you have no clue.
Donate. One day it could be your family.
An invasion of armies can be resisted, but not an idea whose time has come. Victor Hugo
An invasion of armies can be resisted, but not an idea whose time has come. Victor Hugo
Tailmon wrote:
Vestal Chamberlain Lubriderm wrote:
Tailmon wrote:
Only a fool puts their savings in high risk stocks.
More risk might be more reward. In the past 20 years unless your always watching and checking and more with your inventments then you will loose. I remember my co-workers laughing at me for not investing in Dell when I worked there. Instead I chose a balanced steady growth fund. When Dell's stock went to **** with the tech market crash I lost a whopping 200 dollars from my 401k. Most people lost thousands or more. Luberiderm you shold not call someone a fool when you have no clue. I still laugh at my Father that loved bank stocks. Twice he has lost hundreds of thousands because of it. Some people never learn.
Vestal Chamberlain Lubriderm wrote:
Tailmon wrote:
Vestal Chamberlain Lubriderm wrote:
Tailmon wrote:
Only a fool puts their savings in high risk stocks.
More risk might be more reward. In the past 20 years unless your always watching and checking and more with your inventments then you will loose. I remember my co-workers laughing at me for not investing in Dell when I worked there. Instead I chose a balanced steady growth fund. When Dell's stock went to **** with the tech market crash I lost a whopping 200 dollars from my 401k. Most people lost thousands or more. Luberiderm you shold not call someone a fool when you have no clue. I still laugh at my Father that loved bank stocks. Twice he has lost hundreds of thousands because of it. Some people never learn.
I'm so very sorry for my compulsive need to post this.
Somehow I might be able to dumb things down to everyone's level. Instead of being Blah this and blah that and having a "Let's be buttwhipes to Tailmon" parade how about showing how your making money in times like these with investments? I'm not like my Father but "Dad" Has plenty of money from his investments. He also has a tendency to fall in love with stocks. Maybe some of you might even realize that some stocks go up and down in very predictable cycles. Every year you sell it and buy it back when its at the low. Dad decided to not sall and it went down and stayed down. Pure and simple.
How about buying stock in America? It's downgraded from top investment to the next level down.
Just watch the news. Things are not looking to rosey at the moment.
Edited, Aug 7th 2011 12:01pm by Tailmon
How about buying stock in America? It's downgraded from top investment to the next level down.
Just watch the news. Things are not looking to rosey at the moment.
Edited, Aug 7th 2011 12:01pm by Tailmon
The most successful economist I know told me not to engage in day trading. At all.
You can do fancy things by investing in a company and their competitors, but I'm not sure of the ins and outs of that. In any case, anything to do with stocks is something you really shouldn't do unless you know what you're doing.
I told the same to my mum and she successfully lost about 50% of my savings (which she refused to let me make decisions over) in the economic crisis by investing in high risk stocks.
Also, people tend to forget about inflation (like my friend who was really excited to invest in a bank account with 10% yearly interest but with PKR as the currency). I was lucky to get 7% guaranteed interest on my savings in a stable Western currency for over a decade.
Speaking of the West, I read this interesting piece on the United States last week. I'm reading another one right now, but I'm not finished with it yet.
You can do fancy things by investing in a company and their competitors, but I'm not sure of the ins and outs of that. In any case, anything to do with stocks is something you really shouldn't do unless you know what you're doing.
I told the same to my mum and she successfully lost about 50% of my savings (which she refused to let me make decisions over) in the economic crisis by investing in high risk stocks.
Also, people tend to forget about inflation (like my friend who was really excited to invest in a bank account with 10% yearly interest but with PKR as the currency). I was lucky to get 7% guaranteed interest on my savings in a stable Western currency for over a decade.
Speaking of the West, I read this interesting piece on the United States last week. I'm reading another one right now, but I'm not finished with it yet.
Day trading is high risk, especially if you don't understand how to hedge or more predominantly, what you are actually betting on. IE day trading with a particular market position often has no relation to the actual companies you are buying. You also get raped by the HFT engines, (as well as insider cap skaters, but that's technically illegal. Technically.)
As always, run a diversified portfolio, regardless of investing strategy.
As always, run a diversified portfolio, regardless of investing strategy.
Just as Planned.
Tailmon wrote:
Somehow I might be able to dumb things down to everyone's level.
Nothing ironic about that. Quote:
How about buying stock in America? It's downgraded from top investment to the next level down.
Just watch the news. Things are not looking to rosey at the moment.
Just watch the news. Things are not looking to rosey at the moment.
If I were 10-15 years away from retirement, I'd want to be in much more stable investments than I am, but in the meantime, I feel confident enough in the long term picture that I can stomach losing some money now.
Quote:
How about buying stock in America? It's downgraded from top investment to the next level down.
Just watch the news. Things are not looking to rosey at the moment.
Just watch the news. Things are not looking to rosey at the moment.
Quote:
Yes, andmost fund managers will be adjusting their portfolios based on this news. Will most funds lose money? Yes, but a well managed fund will probably lose less than the market in general. Once again, you have to make the distinction between some stock tip from a moron relative or friend and a well managed mutual fund. Over the long term, a balanced portfolio, including some high risk stocks, will outperform stable investments only.
If I were 10-15 years away from retirement, I'd want to be in much more stable investments than I am, but in the meantime, I feel confident enough in the long term picture that I can stomach losing some money now.
If I were 10-15 years away from retirement, I'd want to be in much more stable investments than I am, but in the meantime, I feel confident enough in the long term picture that I can stomach losing some money now.
Ok, a couple things:
US stocks did not have thier investment ratings changed, what was adjusted is the US governments bond rating. This makes sovereign debt more expensive which effectively forces a higher tax rate for equivalent services. (Or services going down but cost remaining stagnant, depending how you correct). The reason it shakes the market is because this weakens positions more or less across the board, and generates higher risk.
Second, there is absolutely no reason to have an investment that you know will lose money. Saying a well managed fund will lose less is a garbage reason, because you may as well short something and come out net positive or sandbag and pull those investments.
Just as Planned.
OH MY GOD THE WORLD SHE IS ENDING!
George Carlin wrote:
I think it’s the duty of the comedian to find out where the line is drawn and cross it deliberately.
Quote:
Second, there is absolutely no reason to have an investment that you know will lose money. Saying a well managed fund will lose less is a garbage reason, because you may as well short something and come out net positive or sandbag and pull those investments.
Vestal Chamberlain Lubriderm wrote:
Quote:
Second, there is absolutely no reason to have an investment that you know will lose money. Saying a well managed fund will lose less is a garbage reason, because you may as well short something and come out net positive or sandbag and pull those investments.
Right. Short term losses are more than acceptable, but limiting your exposure to a well predicted dynamic is also the difference between investing competently and lighting your money on fire. The solution is to shift your positions in such a way that a oncoming correction will not significantly harm you, and possibly even benefit you. Normal market fluctuation doesn't hurt you over the long term, because it's often based on things other than the base worth of the stock. Sudden, large shocks can. Especially if it's a readjustment in something's real long term financial position.
What I'm saying is that there is a difference between "A guy on the street said gold will go up because he was yelling really loudly" and "Our financial models say the market, specifically in positions we hold will drop by 3-7%. Therefore we should shift to less vulnerable holding or put a short term hedge against this exposure to protect ourself and our investors" This also does not mean pulling out of high risk stocks. Some high risk stocks are in really strong positions when things based on the bond market fall, and thus have higher reward for similar risk.
Also, I didn't say day trading was bad. I said it was high risk, and more specifically very high risk for a solitary uninformed investors who don't really know why the bets they are making are good or bad. Day trading actually makes a piles of money, but only for financial institutions or say, a hedge fund, who has the resources to do their due diligence and make rational bets with a reasonable assessment of risk.
Just as Planned.
Either way, many of us have limited investment choices when it comes to our 401Ks unless we want to bother with a rollover, which can have some downsides also. Over the last 10 years, my account has grown quite well, so I'm willing to ride out short term spooky times.
I buy stock in memes, and have done fairly well. For example, I'd been holding onto some My Little Pony memes since the 80s and just look at where they are at now. The Lulz to Dollar ratio has never been better.
Allegory wrote:
I buy stock in memes, and have done fairly well. For example, I'd been holding onto some My Little Pony memes since the 80s and just look at where they are at now. The Lulz to Dollar ratio has never been better.
Yeah, but I believe we are currently in a pony bubble. I foresee a major correction in the Lulz market, when they realize that it is a market based solely on children's show derivatives.
I recommend buying comedy gold.
At the very least picking up some of the low priced internet based Lulz. Commodities such as bacon and ninjas are also holding pretty strong. The one investment I really kicking myself for not getting in on the ground floor of was ninja fucking, but Jophiel had that market locked down tighter than, well, ninja fucking.
Just don't buy puns, regardless of how hard Kaolian pitches them. He gets a commission off each one of these junk bonds he issues.
I should know, I'm a doctor.
Edited, Aug 7th 2011 10:58pm by Timelordwho
Just as Planned.
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