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Where is the stock market headed? Is this going to continue until everything is gone?
I am just totally amazed and frightened by the continued decline.
 

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What happens will depend on how confident investors are. Plain and simple.
 

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I cant' even hardly listen anymore - my stomach tightens up, my blood pressure is going up and I'm just bordering on depressed again. I just don't want to have to work till I drop over dead.
 

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DH has always been very confident that things will right themselves- " the market is down your just buying more shares" "so when it rights its self you make even more" 5 days ago he pulled everything out of the market! We can put it back very quickly if things look up, but don't anticipate that happening any time soon:(
 

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It's great if you're younger and your 401k is buying shares at bargain basement prices. Unfortunatley there is a huge generation of baby boomers who were just about to retire who don't have the time to watch it come back.

It'll get into the 5000's. There's nothing that's going to stop it. Like it or not, whether it's fair or not, the market drops every time Obama or Geitner open their mouths. They haven't figured out the magic words to calm things down. I sure hope they do.
 

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It's great if you're younger and your 401k is buying shares at bargain basement prices.
Everyone loves a bargain except when it's the stock market. I have convinced myself that I will be working 3 years after I'm dead. Should the market improve and the bargains pan out. I will change my outlook come retirement age. Until then it's like a big clearance sale at Macy's.
 

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DH has always been very confident that things will right themselves- " the market is down your just buying more shares" "so when it rights its self you make even more" 5 days ago he pulled everything out of the market! We can put it back very quickly if things look up, but don't anticipate that happening any time soon:(
If you don't mind my asking, what did he do with the stuff he pulled out of the market? We don't play the stock market, but all of the retirement from where I work now, and of course my annuities are in mutual funds accounts and I've lost tons of actual money (have less than what I put in) I talked to the guy that manages the accounts for work, and I decided not to change anything at this time, but I was thinking about just not putting as much in right now. We have an inheritance that we never did get around to investing, and it is making more money now sitting in 3 savings accounts that make interest than it would anywhere else.:(
 

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There is a silver lining to all this. The baby boomers were going to retire, taking with then lots of skill, knowledge and experience, and we would have been facing a labor shortage. Now, they are not going to retire so problem solved.
 

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I don't know, but the technicians say going through 7,000 broke a huge support level. They're the guys/gals who look at charts and trends and predict where the market is going to go.

Selfishly, it's good for me. Assuming I have a job at some point in the next 6 months, houses are cheaper and stocks are cheaper. It's almost a "do-over." I invested $2,000 back in 1996 for college expenses and cashed out $8,000 in 2000. Hopefully the market won't produce a bubble like it did in the 90s, but you can buy a lot more shares when the Dow is at 6,000 as opposed to 14,000. But I also realize that people like my grandparents who had thought they were fine for retirement suddenly find themselves in their late 70s and early 80s and looking at a smaller nest egg. I really feel bad for my Dad because he has to retire this year (based on changes his company is making to their retirement plans), but he's also lost a lot in his 401(k).
 

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news just said they wouldn't be surprised to see the stock market drop below 5000 before going back up. a friend of mine lost all her son's college tuition and he graduates this spring. DH pulled out his 401K and put it into low risk funds but still lost 2000.00 before doing that. it's such a scary time. i don't think anyone has any confidence left in the market. this could be the end of the economic world as we know it.
 

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this could be the end of the economic world as we know it.
Which is good for the long-term. We really needed a good shake after people expected the value of their home to go up year-over-year, or stocks to go up 10%-15% annually.

You look at what happened after the Gilded Age, or the Roaring 20s. After both periods of extreme excess, there was a horrible crash and a depression. The depression following the Gilded Age lasted 4 years, and we've heard all about the Great Depression following the Roaring 20s all too often lately.
 

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I don't know, but the technicians say going through 7,000 broke a huge support level. They're the guys/gals who look at charts and trends and predict where the market is going to go.

Selfishly, it's good for me. Assuming I have a job at some point in the next 6 months, houses are cheaper and stocks are cheaper. It's almost a "do-over." I invested $2,000 back in 1996 for college expenses and cashed out $8,000 in 2000. Hopefully the market won't produce a bubble like it did in the 90s, but you can buy a lot more shares when the Dow is at 6,000 as opposed to 14,000. But I also realize that people like my grandparents who had thought they were fine for retirement suddenly find themselves in their late 70s and early 80s and looking at a smaller nest egg. I really feel bad for my Dad because he has to retire this year (based on changes his company is making to their retirement plans), but he's also lost a lot in his 401(k).
Man, I should hire you to manage my investments: you outperformed the market substantially from 1996-2000.

Older people who are not in the market are also suffering. The drop in interest rates has really put a dent in their income. My grandparents have been out of stocks for years and living off interest. So when rates drop from 4 or 5% to 1 or 2% that is a significant hit.
 

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Man, I should hire you to manage my investments: you outperformed the market substantially from 1996-2000.
Yes I did, but that was also in the heyday of the market when you had individual stocks sometimes doubled in one trading day. I'll manage you're money if you'd like, but I'm guessing my dumb luck won't catch lightening in a bottle again. I guess it worked out well that I graduated in 2000, because I ended up selling at the top, through no financial insight of my own.

Roughly half of my investment was in the Putnam Voyager mutual fund (PVOYX) which had a pretty good run from '91 through 2000. I don't remember if it was Juniper, but there was another stock that I was invested in that also doubled during that time.

I know, at least from your past comments, that you don't really believe people when they say the outperformed the market, but I actually did. Not exactly 300% gain through pure stock increases, thanks to dividend reinvestment and I probably added another $500 myself, but I was really fortunate to have a good investment adviser at Edward Jones and a little luck in the midst of a stock market bubble.
 

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Yes I did, but that was also in the heyday of the market when you had individual stocks sometimes doubled in one trading day. I'll manage you're money if you'd like, but I'm guessing my dumb luck won't catch lightening in a bottle again. I guess it worked out well that I graduated in 2000, because I ended up selling at the top, through no financial insight of my own.

Roughly half of my investment was in the Putnam Voyager mutual fund (PVOYX) which had a pretty good run from '91 through 2000. I don't remember if it was Juniper, but there was another stock that I was invested in that also doubled during that time.

I know, at least from your past comments, that you don't really believe people when they say the outperformed the market, but I actually did. Not exactly 300% gain through pure stock increases, thanks to dividend reinvestment and I probably added another $500 myself, but I was really fortunate to have a good investment adviser at Edward Jones and a little luck in the midst of a stock market bubble.

No, I completely believe you.
 

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Unfortunatley there is a huge generation of baby boomers who were just about to retire who don't have the time to watch it come back.
Isn't that exactly why you're supposed to pull out of the market 7 - 10 years before you retire?
 

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Isn't that exactly why you're supposed to pull out of the market 7 - 10 years before you retire?
Well, at least move to something that's supposed to be safer, like bonds. For the life of me, I don't understand why my grandfather did not do that. We had the same investment adviser, and I can't imagine he didn't tell him to do that. He's developing Alzheimer's, or so we think. He has a lot of the symptoms, but he won't let my grandmother go with him to the doctor so we don't know exactly what's going on. I'm wondering if it's more advanced than we think and that played a role in his poor financial decisions.
 

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Isn't that exactly why you're supposed to pull out of the market 7 - 10 years before you retire?

Partly. Of course lots of baby boomers "had to stay in equities" because that was the only chance they had at retirement after years of not saving and living beyond their means.

Also, even if they did pull out of the market and put your money in CDs, interest rates are so low now that they still can't afford to retire.

For millions of people this is a no win, never recover in their lifetime problem.
 

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When is the bottom reached?

I heard a business/economics report on NPR this morning that said look to the Asian stock markets for the first indications of world markets' recovery.

Another good indicator I recently heard was that when the Fed begins sliding interest rates higher a degree in a move to limit inflation then the bottom will already have been reached and the ascent already begun.

 
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