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Every time it appears the stock market is starting to recover, it get's knocked back down by what the media refer's to as "profit takers". I haven't been selling any stocks. In fact I have done more buying in the past six months than I ever have. But, it appears I'm in a minority. What do people do with the money they recieve from all these sales of stock? Apparently, it is not going back into the purchase of other stocks, what with the numbers constantly declining. Is it time to start stuffing mattresses? Excuse me if I sound like an idiot with this question; but I'm afraid when it comes to the detailed in's and out's of the stock market, I am an idiot. Oh well, I'm in it for the long haul. So, I'll just sit back and let it all play out.
 

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No, its not time to stuff mattresses, but the days of buying stock, having a sandwich and coffee and seeing that your money doubled are long gone. People are becoming much more careful about where their money goes and what investments they make. High tech doesnt automatically mean high quality and IPO isnt short for Instant Profit Order either. Just be careful out there.
 

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Buy low, sell high.

Its the Monday morning quarterbacks investing the college fund they need in 6 months that get nervous when a large company/investor/fund manager shift their weight from market focus to another.
 

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Dollar cost averaging religiously is the best investment. Pick a fund, stock or a couple of both then sign up to deposit the same amount each month regardless of market condition. Some of them are as little as $50 a month. Do this for 10 years and you'll be way ahead of someone trying to time the market. A 401k works on the same idea.

Don't worry about the ups and downs, look at the history of the stock market and you'll see it's a natural cycle.

If you have a bit of cash to invest, get yourself a fee based planner. They only get paid if the investments make money. It's a win/win situation.

If you want to learn more, read.

You've got to be in it to win it!

*These are my opinions. Don't sue me if you loose your house following what I just wrote!
 

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That is basically what I'm doing. The majority of my investments goes to a variety of mutual funds. The rest I have invested in a few individually purchased stocks that I like. I'm not looking to get rich, just want something to retire on (and buy my Cobra kit).
 
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The problem seems to be that signs from the economy and company reports always seem to be saying opposie things. There may be some good earnings reports one day then bad news on the economy the next or there may be positive signs from the economy then some bad company/earnings news will emerge shortly after.

I suspect when the economy and the company reports all start saying good things at the same time things will turn around. Until then we'll see more of this. The outlook is still hazy.

I sold a bunch of stuff and put the money into things I could never afford in quantity before, like Cisco. With all of the craziness in Eneron and Tyco going down I figured it was a good time to diversify to be on the safe side.

I'm not expecting a grand recovery but if I can double my money in five years (seems doable) then I'll probably come out way ahead of people who stuck their money in bonds.
 

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Gone to bear stocks, every one....

Short of being the next lucky winner, I plan to be working for another three decades. Plenty of time for the market to recover.

Steve
 

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OK...Im gonna let you all in on a little secret. In the LONG RUN (10 year time horizon or longer), NOTHING beats the S&P 500. Hot companies come and go, superstar fund managers also come and go. But if you want the closest thing you can get in a "set it and forget it" investment, find a low fee S&P 500 index fund. I have had almost all of my 401K money in the index for 15 years now, and I have been treated very well. Good luck out there boys and girls!!!!!

Michael
 

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Where I live (Northern NJ), a lot of the money that was in the stock market is now in expensive remodeled houses/second houses and in vintage muscle cars or street rods (the price of a nice vert is too high for me now). I my self am thinking of buying a garage/shop and moving my workshop out of the house (garage is under master bedroom).

Personally having spent twenty years in corporate America, I feel that the current economic foes are based on lack of qualified leadership in the CEO offices. I don't mean the Enron kind (there is enough of that), basically they're sitting on their hands (can't blame the consumer, he's spending; can't blame interest rates, money is cheap). CEO's have to make some tuff calls, take some risk and grow their businesses. Now's the time for them to be investing, you can deal on capital equipment and in IT hardware/software and the consulting support to install it.

Basically standing pat, but I went heavy into cash in 2000. Only buying quality or indexes on dips.

Bob.
 

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You're right dinosawnj. The trouble with corporate America is that, over the last decade, they started working for Wall Street instead of Main Street.That mentality shift has left us with companies that have lost their long-range vision, worrying from Quarter to Quarter what their numbers are going to look like. We haven't helped any, watching those numbers at home on our little screens and playing the game right along with them. Running a large corporation from Quarter to Quarter is like driving your car fast around the race track with your eyes focused on the ground just past the hood. You can't see what is coming and you can't prepare for it, therefore you can't make the right desicions fast enough etc etc CRASH...you get the picture. I have a lesson that I teach my managers. I take them out on a two lane 55MPH road and tell them to drive looking over the hood untill they start to scare me. Then I tell them to drive looking as far ahead as they can, all the while driving faster and faster. You know what? It's easy! If your focused over the hood and see something happen, it's already too late to react. The longer the view the easier it is to plan the next move while the day-to-day stuff slips right by because you already handled that. When you invest, look for that long range vision in the prospectus. When you drive fast, Keep the long view *G*
 

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Hate to bust your bubble on the S&P 500 theory but realize that the S&P funds will have ridden Enron, Worldcom, et al, all the way down since by investment policy they have to own them if they are still in the S&P 500. The 500 is really a committee that adds and subtracts from the index-not exactly the 500 largest companies that it proports to be. Index funds do wonderfully in bull markets, performance is questionable in down markets. The Vanguard 500 trust is down about 30% over the last 2 years. Not a bad strategy mind you, the expenses are low, but far from perfect.

Covered calls on dividend paying stocks, or Exchange Traded Funds (ETF's) are the way to play in my opinion.

J. Boggs
 

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Well to give you a professional opinion.... it's going to take some time!!! The lack of consumer confidence in the market is probably one of the biggest factors, another is that fact with Enron and Arthur Anderson when companies "cook" their books, many other companies who may have followed suit, it will take quite a while for these companies who may have "cooked" their books to correct the overstatements and truely recover! On a final note to michaelinf.... sorry your incorrect!!!! There are many funds who have beat the S&P 500 over a 10 year period! I even checked with four outstanding funds that I use and all four of them beat the S&P over a 15 year period!!!!!! There are even more!!!!! Just don't look to Money magizine for good advice.... it's not their business!!!
JDiehl
70 76B Convert 351 C4v w/a shaker!!!!!!!
 

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Well, if someone is selling that means somebody else has to be buying. Personally I go with nearly all eggs in one basket and watch it like a hawk. I buy when "blood is running in the streets" and invest in income real estate and stay nearly debt free. "They're not making any more land".
 
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Those "stock market Bulls" are being "flipped at a golden arches near you!" (name me one part of a cow that isn't 100% beef)
Actually, it's more likely that the bulls are now flipping burgers themselves!:)
 

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Ok, I stand corrected on the S&P500.....FOUR funds out of the THOUSANDS out there have beaten the S&P500. Any idea how many people were in those four funds for the entire 10 years? My guess is not many. I used the term "set it and forget it" to describe the S&P 500 index and I stand by it. its record it stellar. Yes it is down over the past two years, but I was talking 10 or longer. Check back with me in another 10 years and we can all look for four more funds that might have out performed the S&P. Oh by the way.....good luck spotting them today!!!!
 
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