What to do? Stop funding my retirement or pull it all out?
Senior Member
Joined: Nov 1999
Posts: 1,160
Likes: 0
From: Clarksville, Tennessee
Hello,
Buying Guns, Ammo, Gold, and other commodities does stimulate the economy. Look at all the gun manufactures and ammo manufactures, they are running 110%, but because Barack Obama doens't like them he doesn't want you to invest in them, he would rather help out his buddies in Detroit, or on Wall Street.
Buying gold, give those that are mining, shipping, minting, and selling gold cash to spend on other things. So I can't see how that's not doing the right thing.
What would really put the screws to the government is if the producers just said--ENOUGH
"Who is John Galt?"
Good think I don't run a bank or automobile plant, government tried to give me money, I'm calling the electric company that same day, cut the power were done. Same goes for those Union Workers. Just can't understand why they would stand up to government handouts,
Buying Guns, Ammo, Gold, and other commodities does stimulate the economy. Look at all the gun manufactures and ammo manufactures, they are running 110%, but because Barack Obama doens't like them he doesn't want you to invest in them, he would rather help out his buddies in Detroit, or on Wall Street.
Buying gold, give those that are mining, shipping, minting, and selling gold cash to spend on other things. So I can't see how that's not doing the right thing.
What would really put the screws to the government is if the producers just said--ENOUGH
"Who is John Galt?"
Good think I don't run a bank or automobile plant, government tried to give me money, I'm calling the electric company that same day, cut the power were done. Same goes for those Union Workers. Just can't understand why they would stand up to government handouts,
Senior Member
Joined: Mar 1998
Posts: 1,719
Likes: 1
From: Blue Ridge Mountains, GA
John Galt! Atlas Shrugged. One of my all time fav's along with Capitalism: The Unknown Ideal.
In it there is an article written by none other than Alan Greenspan back in 1966 where he explains taking the US off the gold standard is nothing more than a scam by the gov't so they can increase deficit spending! How the worm has turned !
In it there is an article written by none other than Alan Greenspan back in 1966 where he explains taking the US off the gold standard is nothing more than a scam by the gov't so they can increase deficit spending! How the worm has turned !
Technical Article Contributor
Joined: Nov 2002
Posts: 2,804
Likes: 9
From: Wisconsin
I follow the Harry Dent Spending Wave or Age Wave theory. I converted a lot of stocks to cash in early 2008, but did keep some that I thought would remain strong. I went into 2008 about 80% cash, and now know I should have been 100% cash. I sold some more stocks last week, but with others I will ride out. I don't think you need to sell all, or ride it out with all. I like to sell half and keep half, so I'm covered either way.
I'm going to stick with the Spending Wave theory. I've been watching it since the mid 1990s. If the economy and stock market follow the spending wave, then this is more than just panic selling, it's real, and we need to be take it seriously. The theory suggests more of an economic bubble that has just popped, rather than a dip which will return back up to normal. That is very similar to what happened in 1929, only things were very different back in 1929 compared to today. I am surprised at how much this has impacted the global economy.
Looking at the forecast, as spending decreased the market would drop to 9000, but it has already dropped below 7000. That would indicate the market is already over sold due to some panic selling. Will that continue? I think so, just not sure how far. Stocks like OGE are oversold, and a real bargain, but the price may drop further. Would you like a gas and electric utility with a 7% dividend? At 7% compounded your money will double in 10 years.
The bad news is that according to the Spending Wave, forecasted spending will decline over the next ten years. That means if your going to wait it out, you better plan on waiting at least 20 years to get back what you lost. If you are young, and do have 20+ years that's great. Problem is most of us do not have 20 more years. A lot of us will be working longer. I'm not sure if that would increase spending enough to make a difference I'm still investing 100% of my new 401k money in securities. I expect dollar cost averaging will work to my benefit over the next 10 - 15 years. At this point I'm only buying companies and which I think can survive 10 years of reduced spending, and value funds.
I'm going to stick with the Spending Wave theory. I've been watching it since the mid 1990s. If the economy and stock market follow the spending wave, then this is more than just panic selling, it's real, and we need to be take it seriously. The theory suggests more of an economic bubble that has just popped, rather than a dip which will return back up to normal. That is very similar to what happened in 1929, only things were very different back in 1929 compared to today. I am surprised at how much this has impacted the global economy.
Looking at the forecast, as spending decreased the market would drop to 9000, but it has already dropped below 7000. That would indicate the market is already over sold due to some panic selling. Will that continue? I think so, just not sure how far. Stocks like OGE are oversold, and a real bargain, but the price may drop further. Would you like a gas and electric utility with a 7% dividend? At 7% compounded your money will double in 10 years.
The bad news is that according to the Spending Wave, forecasted spending will decline over the next ten years. That means if your going to wait it out, you better plan on waiting at least 20 years to get back what you lost. If you are young, and do have 20+ years that's great. Problem is most of us do not have 20 more years. A lot of us will be working longer. I'm not sure if that would increase spending enough to make a difference I'm still investing 100% of my new 401k money in securities. I expect dollar cost averaging will work to my benefit over the next 10 - 15 years. At this point I'm only buying companies and which I think can survive 10 years of reduced spending, and value funds.
Last edited by greencrew; Mar 7, 2009 at 10:54 PM.
Senior Member
Joined: Mar 1998
Posts: 1,719
Likes: 1
From: Blue Ridge Mountains, GA
Much of what you said makes sense. From what I have read/studied, this economy will never be as strong/vibrant as it once was since we have given most of our manufacturing jobs away. That tells me that when the market comes back someday, it will be a long, slow, gradual increase.
I think it is best to get out and forget about the bear market rallies. It's better to be completely out of it and then get back at a later date. The more I read, the more I think the market will *eventually* bottom between 1-2K points. As much as I hate to think about that.
I think it is best to get out and forget about the bear market rallies. It's better to be completely out of it and then get back at a later date. The more I read, the more I think the market will *eventually* bottom between 1-2K points. As much as I hate to think about that.
Technical Article Contributor
Joined: Nov 2002
Posts: 2,804
Likes: 9
From: Wisconsin
A drop to 1-2k is possible, especially when you consider that over the next ten years in the U.S.
There will be more people retiring than in anytime in U.S. history.
There will be more funerals than in anytime in U.S. history
There will be more people living off their retirement funds than anytime in U.S. history.
There will be more people selling stocks than anytime in U.S. history.
There will be more people retiring than in anytime in U.S. history.
There will be more funerals than in anytime in U.S. history
There will be more people living off their retirement funds than anytime in U.S. history.
There will be more people selling stocks than anytime in U.S. history.