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OT Financial

M

Murph

New member
Are my mutual funds in my IRA safe, should i take my looses and put everything in cash, I won't need it for 10 years.


HELP
 
If you would have cashed out a few weeks ago yes but now you need to see the positions that your mutual funds are in and stay the course. If you are in the right mutual funds with the right person guiding them you should stay in. There are some real buys right now and in 3-4 years some people who are investing now will make a ton. This is the worst time to get out unless you need the money now or your funds are heavily invested in real estate or specific fianacial institutions. There are some companies that will not go out for the count but are extremely low. At one point PGE was close $4 a share and almost went bankrupt. Now it is trading at around $40. There are some institutions that will never shut down because they are to important to go down and utilities are usually a good bet during down times.
 
Who knows when Congress will get its act together. Until they do, it will be volitile.

Here's another option. I do not know what options you have available to you in your IRA. I have a self directed IRA and Roth. These are more flexible and even let you buy options.

I suggest you read Blind Faith by Edward Winslow. It costs $10.95 plus shipping on Amazon. He's pretty much against the stock market but suggests some "safe alternatives".

You can buy short term government bonds or very high quality corporate bonds such as Caterpillar's where you are not worried about the safety of the bond. Then leave enough left over to buy call options in ETFs (exchange traded funds) such as SPY which is a S&P 500 ETF. You only buy enough options so that you repay yourself from the bond interest.

The options have a expiration date. In the worse case the market loses and your options are worthless. However, your bond interest made up for it and the net result is a push. Now if the market goes up and since the option leverages your position, they appreciate a bunch and you capture a good portion of the upswing.

You can do this yourself in a margin account or a self directed IRA. There are also a few companies that sell this type of security packaged together. I suggest you read the book and decide from there. Good-luck.
 
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Looks like the Dow will finish higher at the end of trading in about 7 minutes. It's up 65 points now.
Harry Reid's dire prediction of a stock market collapse, which he seemed to try to use as a threat to those who were not willing to vote for the auto bailout, did not materialize. Maybe the investors see it as a good thing in the long run that private business should sink or swim on their own.
 
Da Coach said:
Looks like the Dow will finish higher at the end of trading in about 7 minutes. It's up 65 points now.
Harry Reid's dire prediction of a stock market collapse, which he seemed to try to use as a threat to those who were not willing to vote for the auto bailout, did not materialize. Maybe the investors see it as a good thing in the long run that private business should sink or swim on their own.
Click to expand...
I have to disagree with this post... Today's market rebounded after the Treasury Department said it was prepared to assist the Big 3 automakers.

http://finance.yahoo.com/news/Treasury-ready-to-prevent-apf-13817217.html

I would also hate to see what will happen if we dont assist the Big 3 in some way!!!!
 
Beninator said:
I have to disagree with this post... Today's market rebounded after the Treasury Department said it was prepared to assist the Big 3 automakers.

http://finance.yahoo.com/news/Treasury-ready-to-prevent-apf-13817217.html

I would also hate to see what will happen if we dont assist the Big 3 in some way!!!!
Click to expand...

You're right on Beni. The Fed temporarily took the risk out of this market. It's still there and this market is going lower IMO. It may go up from here first, but it's going lower -- trust me :( .

I commented to my wife at lunch today that this time next year things will be much worse. The full effect of job losses, defaulted mortgages and credit cards, failing pension plans, bankrupt states and municipalities, and eventually rising inflation from this crazy fed "easy money" is going to cause pain in this country for the next 5-10 years or more.

I hope I'm wrong.
 
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