Posted on 10/10/2014 1:26:07 PM PDT by Signalman
OK - I will bite - what is the bargain?
21 posts and no, ‘Bush’s Fault!’ ??? :)
tough week but one must put it in perspective. The market is down 4% from all-time highs. It is outright pathetic when people whine about such a small dip from all time highs.
A correction (which we have not had yet) is overdue and healthy. Those with piles of cash also welcome it as a buying opportunity when it settles down (if it ever does). However I don’t think it’s done yet. I think the correction is just starting.
20 years from retirement? I would be all in or at least at 60-70% stocks — would not bail — but ONLY if you have the stomach to ride out huge dips. No pain no gain. Even when Fed stops QE — interest rates will still be at extremely low rates. The reason the market has done well lately IMO is money has nowhere else to go. You cant put it all in a 0.5% CD or inflation will kill you — and they lie about the inflation rate to reduce social security payments
The key is how much do you save. There are studies that show your savings rate trumps almost everything else. If you can save and invest 20% or more of your salary in a solid mix of no-load mutual funds - say 60 /40 or 70/30 - for 40 years you will be fine. The problem is most people won’t save.
Having said that I have cashed in much of my stock funds over last few years because I am older and about to retirement. So the key is when will you need the money. I am saving 30% of my salary. Given the state of this government - I suggest people need to lock and load and max out savings. It is every man for himself.
By all accounts the S&P’s 200-Day Simple MA is around 1905 and it went almost exactly straight to it almost exactly at the close. After the 4 PM close it bounced and then dropped below 1900. So the 1877 isn’t the right number but as of “unofficial” after-market trading the S&P is in fact below it.
Many charts and graphs of today’s action here, especially the S&P and various moving averages:
http://www.zerohedge.com/news/2014-10-10/dow-turns-negative-2014-stocks-suffer-worst-week-3-years
Look into insurance companies - they have pretty much taken the risk out of the deal and have assured themselves huge profits even if SHTF.
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