of the market whatever money they may need during the next 5 years!

http://www.msnbc.msn.com/id/27045699/

Adding fuel to the fire. Panic everyone!

But seriously, this looks like its going to be painful. My silver hedge might not have been a bad idea after all.

Burn baby burn!

If you have $X in the market and you need $X within the next 5 years to pay some bill, pull out of the market.

No sh-- Sherlock. That's true in any market.

Markets fluctuate. If you keep your money in it long term, you'll be well off. If you need the money short-term, it shouldn't be in the market. If it is, don't come whining to daddy about it.

I am down some 25+% since last October's Dow high. Meh. I'd rather be up but I can live. And I'm still buying. I'm not retiring for 30 years so the hits now are not a huge deal.

You're exactly right. I'm 41 and had planned on retiring at 60. We'll see about how that pans out after this mess, but the bottom line is to hold steady.

My biggest challenge is getting my wife to understand the monumental shift that is taking place right now and getting her onboard with the long term lifestyle changes this will bring forth for all of us. As a Christian, I keep reminding myself of the serenity prayer, however the practical side of me says to prepare for the ugly side of human nature should this "This sucker go down" as our dimwitted President opined.

Serenity Now?

When everyone starts crying "There's no end in sight"...the end's in sight.


Not that I care much...if the market moves, I make money. Don't care which direction it moves in.

"Dear Buddha, please bring me a pony, and a plastic rocket..."

There's a lot of cash now out of the market...gotta go somewhere eventually and it's likely destination?

Back into the market!

Also, that pretty bill passed last week is going to take a little while to make a difference. To date, no bad loans are off the street.

But we're Americans! Instant results and immediate gratification is our birthright!

Classic episode!

Was just listening to some talking head speculating that it takes about 6-9 months for a big cash injection to be reflected in the market. I'm no econ expert but the guy sounded British so I assume he's credible.

Which market? The stock market...yeah, I'll buy that. The credit markets...I'd hope we'd see it reflected sooner, otherwise a LOT of companies are going to declare bankruptcy.

To put it in simplest terms, the credit markets are the offensive line, the equity market is the QB. The QB gets all the headlines, but won't do much if the OL is broken. Need to fix the OL first.

So now it's the credit markets' fault JP botched the handoff to Lynch? You JP apologists will stop at nothing...

My question was specific to what the talking head was talking about: he wasn't saying an infusion of cash in to the credit markets wouldn't show effect for half a year?

when I get calls from clients wanting to invest in sectors, that is usually the time to sell out....when clients call to sell out, that is usually the time to buy that sector...never fails

The serenity prayer is infinity practical in this situation for any eventuality. You do what you can (to protect yourself) and turn the rest over to god.

He was talking about the stock market and noted specifically that the bailout plan needs to start going into affect V fast to ease the credit crunch.

Actually, it's JP's fault that the markets are tanking. Would never happen if Edwards was at the Fed.

That's the typical timeline for monetary policy to show up in business activity levels. The intent of the rescue package is to a bit different, IMO. It will establish a market for distressed assets so investment and commercial banks can (a) stop liquidating/marking them down at fire sale prices, and (b) have liquid funds that can be redeployed to creditworthy borrowers.

Given how seized up credit markets are right now, the Treasury's efforts may accelerate that 6-9 month window.

And there's this mark-to-market issue lurking as well. That has accelerated the plunge.

So you're a contrarian?

no I know once normal people want to get in on something...it is too late...

Yep. Did so a while back. I foresaw this coming. There is alwys a day of reckoning.

Blaze your own path... Set your own pace... Don't worry about "getting in."

Maybe my funds underachieve... IMO, slow and steady always finishes the race on schedule.

Which is the definition of a contrarian.

So TRUE!

It is all a confidence game anyway... With a name like LOSman, what are people confident about... Now Edwards... That is a strong name!

Confidence, man... Confidence!

It wasn't. The paper price has drop alot but the physical price is trading much higher.

Hedge funds unwinding big time. Check it out. Will last for awhile longer.

http://cdn1.libsyn.com/wallstreetexaminer/...e33e50131206ad4



its a pod cast about ten minutes, they know their chit.

Craymerica is an idiot!!

No, the definition of a contrarian is one who does the opposite of what the market is doing, on the basis that the market is the sum total of a bunch of panicky animals.

It is not one who does the opposite of what the market is doing because the public is individually stupid.

AKA, buy financials.

I prefer "buy airline stocks after 9/11", myself. Doubled my money on that bet.

Although right now, if you REALLY wanted to be a contrarian...buy steel. US Steel is down almost 50% in two weeks. Citi, Bank of America, JP Morgan...all are outperforming the steel sector. (The only financials I see that steel is outperforming are ones like Lehman, that no longer exist.)

Steel and industry are what's killing the markets right now. Boeing, Alcoa, Du Pont, GE, GM, 3M. Over the past two weeks, financials have barely moved, surprisingly (i.e. if you'd bought and held JP Morgan two weeks ago, you'd actually be up about eight percent as of right now).

I stand corrected.

A better example. I wonder what President Obama's anti-free trade policies will do to raw materials and US manufacturing. I'm not sure the answer is simple.

What??? I don't think we have the cap room for many more $700 billion dollar contracts.

Not unless we get Schneider and Jones to buy us out.

Credit Market = Kris Farris, Bennie Anderson, and Trey Teague
Equity Market = RJ

$840 billion. get it right

Cramer advises investors to pull out I suggest you wear a condom.

As an individual... Why would I not stem any bleeding early? My TSP (fed) retirement account has been 100% shifted to Gov't securities that won't lose any money. Sure it is only making about 4%... It sure beats losing.

Sure... If I had half a mil in... I would be a little more cavalier.

Substantial penalty for early withdrawl

Because unless you time it right you're typically selling low and buying high. Timing the market is very risky and very hard to do with your own money because of the emotions involved. You got lucky this time but the recovery is usually unexpected and very quick.

I like Cramer but I think he may be over reacting. next he may suggest we all run and pull money out of everything and stuff our mattresses. Cant lose money that way.

My Motto Slow and easy beats greed

One of the CNBC traders had a funny line...he is taking 2 positions in this market....cash and fetal

I understand people want to gain with the big yields... But, is that really reasonable?... I remember years where it gained over 20%... Is that really resaonable?... You mine as well go to the track with what all the "experts" are saying. I am safely protecting my ass first and foremost... Paying myself first and foremost.

And yes... Now is really the time to stem the bleeding and cut the loses before it digs you a hole too deep. Basically, I am mailing my winnings home in a self-addressed stamped envelope. That's reasonable and safe. I don't need 20% annual returns... I will if I stay in!

And you are right... This is a very emotional confidence game.

Non-directional option spreads? Iron Condors?

Don't take advice from TV matrons and/or shoe shine boys (1929 refrence). If you have disposable income with a
5/7 year window, there are stunning bargains on solid companies available today on the NYSE/NASDAQ.

Or internet message boards (2008 reference)?

I have buying steadily (low stakes / good firms) - I have 12 years to go (and I don't count SS Income)

There will probably be another meltdown by then, but value will always be value

Here's a freebie - best bank left going - Wells Fargo - they actually lent to only "worthy" customers

I have been loading up on the following

Med Patent
Anacot Steel
Farrowtech

OMG.

This may be the shoeshine boy moment.

Stock tips on PPP? Dwight Drane is right. Quit your job and buy a gun, bible, and pile of gold.

what are you talking about Dan Dorfman from CNBC gave it his Gold rating....I expect a HUGE pop