> Rasta wrote: > > ive pers. lost 40% > > and tempted to yank it all out and stop making deposits. >
Well just remember: depending on what you own, you still own the same percentage and you haven't lost a penny until you sell. If you don't need the cash you might as well hang on to your percentage and ride the wave back up. As for putting more money into the market, personally we're only doing cash right now which no matter what anyone says is a legitimate position in my book. Bush's rally started at about Dow 2700 and it was first rally ever where the average American actually lost money. In other words, no wealth was created and asset prices simply rose due to people borrowing money and buying stuff with it. That created artificial demand which constrained supply and prices rose. Bush's team was too daft to recognize this and so was Clinton's - although in Clinton's defense it was in its infancy then and Bush's policies super-charged the effect. As all that leverage unravels asset prices will drop back to what they were 10 years ago like a runaway cable car. The danger is that the downhill ride gains so much momentum that you fly past 2700 on the way to zero. Which is essentially the Republican's plan: do nothing and see what happens at 2700. What Obama is doing is trying to do is hit the brakes by replacing the lost leveraged demand with government spending demand. The net-net is that if the stimulus (and the next one :) works, the runaway car slows, stops, and starts climbing again before 2700. This is exactly what got us out of the Great Depression. Hoover's plan, that failed, was tax cuts. Sound familiar? And Hoover's do-nothing-except-tax-cuts plan is what made the Depression Great. So be glad the Republicans have to keep their empirically failed ideas confined within an obese drug abuser. Personally I'll wait until about 4000 ... maybe 5000 and then dump my cash into ETFs and surf the wave! ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Adobe® ColdFusion® 8 software 8 is the most important and dramatic release to date Get the Free Trial http://ad.doubleclick.net/clk;207172674;29440083;f Archive: http://www.houseoffusion.com/groups/cf-community/message.cfm/messageid:290936 Subscription: http://www.houseoffusion.com/groups/cf-community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=89.70.5
