Well part of the problem is that the new Secretary of the Treasury Geitner, can't find the bank bailout section of his Turbo Tax program. While the administration proclaims that it wants to reduce our dependence on foreign oil the new Secretary of the Interior reverses the previous administration's lifting of the ban on offshore drilling. A reeling auto industry now has to manufacture cars of various emissions requirements depending on the whims of individual states. Meanwhile our "economic stimulus" package is a pig farm of projects such as wetlands reclaimation for the harvest mouse and a high speed rail line from Pelosiville (Los Angeles) to Reidville (Las Vegas.)
Jiffy, please don't do that....I can't imagine a worse thing to do. If you are well diversified, hang in there, don't watch CNBC and wait for the bounce. I don't know when, but I know in fact.....
T buck...the "bounce" I am afraid is minimum 5 years out. Will do me no good. I need preservation at this time
I don't believe that Jiffy.....it may be some time before we get back to levels we saw in fall 07, but the only way to rationalize these levels is to assume economic activity at almost armaggedon levels. I don't believe that......asset prices are currently being valued at almost worst case levels. I don't buy it......if you do, then cashing out and going all in cash will allow you to sleep better. But, imho, that is a more risky course than going all in equities at this point......the prudent course is to maintain equity exposure, provide yourself with enough fixed income and cash holdings to stay the course for the next twelve months or so and wait it out.....there are classes of assets being priced at depression-era levels. That is absurd. Yes, the economy is in a bad way, but we are not remotely close to depression era declines in economic activity and employment.....not close. What we need is a dose of confidence in this administrations ability to address the challenges.....at present we have none and they have given us no reason to have any. It will help a great deal when the President stops with the scare talk and gets Treasury to show something meaningful and with enough specificity to be actionable. I could be wrong, but I don't think so....
I, for one, will not bet what I have left on Obama. Today he signs into law a $410 billion bill that is 100% pork barrel spending. That is dirrectly in contradiction to his campaign promises to veto ANY pork barrel spending. So I will not be backing him with any more of my hard earned money than I have to.
George left this thing humming like a finely tuned engine when he exited office on Jan. 20th.....now look at it.....right boys?
MCG do you like what Obama has done so far? Are you for growth of govt and a more Euro Style Democracy where we approach being socialistic?
Dave, That is your defense of Obama? Bush was worse? Bush completely abandoned conservative values and spent like, well, a liberal. He is the only reason that Obama is president. So which part of Obama's moves do you like the best?
Nor would I, but that is not the relevant bet, imho. No one man, not even the President, is bigger and more meaningful in the long run - which is what are the fundamental basis of stock values - than the fundamental strength of our society. I'm investing what I have left - which is not to say I'm ALL IN stocks which I am certainly not - on the value of this vast diverse economic engine that is the United States......which continues to be the strongest, most resilient economy on the planet. He may erode some of elements of this this great system, but he can't destroy it.....not without our help and not in 4 years.
T Buck ... Your confidence seems to be leaving you. You Poopooed the past 2 years as I told you 5000/500 is coming!
Due to my unemployed condition there are things in the Stimulus package that will help me directly like more unemployment income and I may be able to sell my home quicker with the first time buyer deal and I am willing to see if some of the indirect creation of jobs in the green areas and the infrastructure projects for example may lead to a general uptick in the economy and better employment opportunities eventually. I do not plan on waiting that long however so hopefully I'll need a better functioning economy in general just to have a better chance at success in my new job....wherever that is. There absolutely could have been more job assistance and less pork no question about it but I would look at Pelosi before I would look at Obama as the cause of that mess. So....I am at the state of willing to give Obama a chance as he has only had 6 weeks at this and who can really tell what may happen as a result of his efforts so far.
It doesn't take much political intelligence to tell that Obama and Pelosi are one in the same. They have the same agenda for this fine country of ours. If you doubt that, then I suggest that you take a look at Obama's little congressional address last week and count the number of times Ms. Pelosi felt inclined to give her hero and partner in crime a standing ovation. We're in serious trouble with these two as the most powerful personalities of our nation. That is what I'm afraid of. Of course, time will tell whether Obama comes out of the major economic crisis of our time looking like Hoover or FDR but, as of right now, I'm guessing Hoover....
Never Jiffy, never.....I don't fundamentally believe in the direction that the new President is taking us.....and I'm certain that the capital markets are rebelling as well. I think his vision is complete opposite of the fundamental principles our founding fathers laid out over 200 years ago and also in direct contrast to those principles that made this the most successful society that the world has ever seen. That said, I do not believe that he and his socialist revolution can succeed in destroying what has been built and what has been bred over these 200 years.....I do wish he would grow a sack and exert the kind of leadership and clarity that we so desperately need right now.......and that does not mean a budget so full of earmarks and pork that is should make every citizen puke.....especially the followers that believe in the changes he promised which now are nothing more than fodder for late night comics......at the end of the day, my investment bias is that our system and the assets employed in the productive capacity of our economy are worth much more than they are currently being valued.....just my opinion. My investing thesis and the question I always ask myself is, how should I allocate my investments so as to maximize my expected return over - at least - the next 5 years.....to me that is an easy question to answer.
..A complete lack of principles is what got us into this mess. What do you suggest now...that we let those same unprincipled.....unethical a-holes lead us all to the economical promised land?
Thank God Pelosi and Obama are not one and the same: http://www.cbsnews.com/stories/2009/02/27/politics/politico/main4833055.shtml?source=RSSattr=Politics_4833055