Posted on 01/22/2008 5:39:29 AM PST by lasereye
I have loaded up on Altria, with some shares at around $43 or so, and a string higher. That $3.00 annual dividend and DRIP from MO in an IRA is paying off. My portfolio in that one IRA is yielding just around 4% total in dividends alone. All solid stocks with great history.
I pumped more in GE, XOM, CVX, MCD. I’ve wanted to add MO to my portfolio- may as well do it now
Yup. The “decoupling” theory espoused by so many economists in the last two years has been killed, embalmed and buried as of today.
But it’s different THIS time! /sarcasm
I’m wondering how the emergency overnight huge rate cut is being seen by Joe Six-Pack? I wonder if this will only add to the panic.
The FED can cut the rates to zero, but the losses from CDOs and toxic ABCP are going to have to work through the system at their own pace, and as long as some companies refuse to own up to these losses, the liquidity crisis is just going to go on and on.
You conviently forget that WWII ended the depression, not FDRs programs.
World War II ended the Great Depression, but it still didn’t help stock prices. Stock prices didn’t reach back to pre-Crash levels until the early 1950’s!
It's a classic bubble burst. We've had these recently, the tech bubble, the housing bubble, now an equities bubble. Fundamentally, there is no reason why profitable firms should have their share prices beaten down. So if it is, for reasons of panic. maybe cooler heads will profit from the irrationality.
I’m now experienced enough that when I hear “It’s different this time!” I start getting out, getting short or getting hedged.
The problem with Joe Six Pack is that he doesn’t know jack about what really goes on in the financial markets. For example, how many people here think that today’s Fed cut will directly translate into a lowering of mortgage rates? How many people know that the Funds rate is a “target” by the Fed and the market can (and has recently) had funds rates that were at variance with what the Fed wanted?
On and on and on. The public, as a whole, is stunningly misinformed about how the markets and economy actually works.
You’re right about the liquidity crisis: and the people who keep pointing at some stupid economic numbers are the most clueless about it. Liquidity issues have nothing to do with last month’s economic numbers. Zippo, nada, zilch. I don’t care if last month’s GDP shows an annualized GDP growth of 5%. Doesn’t mean jack if banks are vapor-locked and not lending.
Liquidity problems can have a big impact on next month’s economic numbers tho. And these liquidity problems are having an impact on the economy, starting in the housing sector, then the finance sector, and now we’re starting to see the blow-up in bond insurers and CDS’s have a much wider effect.
People who think that banking system problems are just going to “hit the fat cats” haven’t read the detailed history of the Depression. The stock market largely recovered in less than a year — then the liquidity crisis started and *then* the Depression started.
Bulk distributions for 401K profit sharing accounts should be hitting the markets soon. At least mine will be in the next week.
We are on the same page. I am sure the emergency panic rate cut will do some short-term good to stabilize a market crash, but they will have no effect staving off a recession that will come from the liquidity crisis and the loss of consumption by indebted consumers following the bursting of the housing bubble.
That's the case around where I live, too. Houses in the lower tier ($80,000 to $150,000 two or three years ago) have really appreciated, while the $400-$600K houses sit.
The "bubble" was NOT uniform.
hmmm. Somewhere there’s a Warren Buffet ETF where you can buy what he’s buying. Might be worth looking into.
I <3 My DRIPs!
And when we sneeze, the rest of the world catches cold.
But only use money you don’t need any time soon.
That line should be required reading for anyone who wants to invest.
One of the biggest problems with the market is people treating it like a lottery instead of a long term investment. Part of the reason is the ease with which anyone can invest these days; i.e. availability of brokers, small investments, Internet, etc.
Any investment should be with money that you aren’t needing any time soon. Too many people think like day traders.
I just logged on and yahoo news misleads by saying the rate cut was ineffective and the DOW is hopeless.
Funny when I left it was -300 and some but now it’s -100...
kind of like the war is lost tripe.
IF hypocrat liberals were playing football they’d quit when down at halftime and demand defeat at any cost when you explained the game isn’t over yet.
Ambac is the first one to be downgraded. MBIA is still triple-A:
“This was followed late Thursday by an announcement by Moody’s Investors Service (MCO) that the rating agency had placed MBIA on negative outlook for a possible downgrade from the insurer’s triple-A.”
http://online.barrons.com/article/SB120071150488302379.html?mod=yahoobarrons&ru=yahoo
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