When should I get back in the stock market for my 401K?

greenspun.com : LUSENET : TimeBomb 2000 (Y2000) : One Thread

-- bob (JANEBOB99@AOL.COM), September 02, 1999


Go to the Prudent Bear fund and watch them closely. Seem to know what they're doing. I put a bit in and it's growing safely. I'll not toot their praises. Read their propectus.

-- Lobo (atthelair@yahoo.com), September 02, 1999.


Read up on the years 1930 and beyond. That was the great depression that started with the stock market crash of 1929. It can give you some ideas about when to get back into the stock market. Just remember that we didn't recover from that problem for over 10 years.

-- Gordon (gpconnolly@aol.com), September 02, 1999.

Get back in december.

Oh sorry forgot,thats dec.2020,after the depression ends.And we start to leave our caves again.NOT KIDDING

-- Santa Claus (Ponzi@wallstreet.casino), September 02, 1999.

Hang on to your money and see what it looks like around mid-year.

-- Forrest Covington (theforrest@mindspring.com), September 02, 1999.

from another forum...

I have been examining the charts on the US$ vs Other currencies and the result looks like the US$ will finally die very soon...One of the key charts is the Japanese Yen...If you look at a 3 year ( closing price ) chart, you will see the makings of a huge head and shoulders bottom that the Yen is making in here....And the Yen is at the breakout point now...The projected result will put the Yen at about 60 to the dollar!! Other currencies look to be in the bottoming camp against the dollar as well...I suspect the when we get the next trade deficit report, the dollar will be in a freefall. The reprecussions of this will be the dismantling of the hedge funds that have been short the Yen...combine this with a falling stock market and come the end of September you could see a real mess in the financial markets...This Could, and I say Could, lead to a BIG Crash in the markets without hope that the PPT will be able to pick up the pieces...you see, this WILL be the domino effect that sets the ball rolling...all of these forces coming together at the same time will be too much for Bill Clinton and his lying theiving cadral to bolster up...Think about it for a while...A rapidly falling dollar...A rapidly falling stock market because of a rapidly falling dollar...A rapidly falling banking system because of rapidly RISING interest rates...A banking crisis just beginning because of Y2K withdrawls AND As a result of all of this, Hedge funds that are in serious troubles and about to bring down the banking system!

Now, I can hear all the ney sayers out there, "this could never happen"...but I say to you in all sincerity...once this starts...it will seem like the whole world is caving in on the US financials...as I see it, we are out of control as we speak and Alan Greenspan knows this!

We are finally coming to the end of our out of controlled spending ( debt ) on all levels, First-Gov't, Second-Corporations, Third-US Citizens...with the rest of the world now growing out of recession all the recovering countries will be drawing all of their currencies back to them as money comes flowing into THIER stock markets....This is the end of the bubble market!

-- Andy (2000EOD@prodigy.net), September 02, 1999.

Stock market?

-- CygnusXI (noburnt@toast.net), September 02, 1999.

Motley Fool is a good source of information.

-- mommacarestx (harringtondesignX@earthlink.net), September 02, 1999.

The following is advice. Beware! Your money is too valuable to rely on others to tell you what to do with it.

If the stock market really does crash in the next 2-3 months (it could be in as little as 3 weeks), then watch *very* carefully. You need to evaluate the whole situation and ask such questions as:

Is this a correction or the start of a bear market?

If the market falls 30% or more from its high, expect a bear market and wait it out. If it falls in the range of 20%-25%, look for a substantial retracement of the losses before getting back in. Bear markets rally. These rallies are always greeted with hope and characterized as proof that the worst is behind us and the bull market has resumed. Do not believe it.

Have investors experienced a "revulsion" from stocks?

Look at today's confidence in stocks. Compare it to the popular feeling after stocks have gone down. Do you detect a ground-shift in opinion about the stock market? Do the optimists suddenly stand out as different from the common sentiment? If so, then the public is likely to remain disgusted, demoralized and defiant against stocks for at least 10 years. Probably more.

Investment choices run in waves. Once there has been a mania for one particular type of investment, and it has run its course, then that type of investment stays out of favor for a long time. The more people who were burned during the mania, the longer it takes.

After the 1929 crash, it took about 30 years for broad public sentiment about stocks to change from revulsion to neutrality to favor. If folks are burned badly enough this time around, it may take another generation for the wounds to heal.

Last word: take your profits (if you have some) and be happy to have them. Put them somewhere as safe as you can find. And wait. Playing in this market is a very high risk proposition. Don't put any more money into it than you'd put down on a craps table in Las Vegas, and be ready to kiss it goodbye as soon as you lay it down.

-- Brian McLaughlin (brianm@ims.com), September 02, 1999.

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