Is it safe to invest in stocks ?

maxcy

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Apr 13, 2009
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As we see another 23rd U.S Bank - New Frontier Bank in Greeley, Colorado, was closed by state regulators and bank to fail this year amid mounting losses linked to rising unemployment and the slumping housing market.

Is it safe to invest in stocks while these recessions are still going on, If "Yes" what are the primary precautions should be taken these days before investing in any stocks which are related to Housing markets?
 
Define "safe".

I look at the changes our economy is undergoing and I cannot see how it will get healthier in the long run.

I see massive changes in the way American will be living in the future and in the medium run (say the next 20 years or so) I expect American will, on average, become less affluent that we have ALLL come to expect.

I sincerely hope I am wrong.
 
As we see another 23rd U.S Bank - New Frontier Bank in Greeley, Colorado, was closed by state regulators and bank to fail this year amid mounting losses linked to rising unemployment and the slumping housing market.

Is it safe to invest in stocks while these recessions are still going on, If "Yes" what are the primary precautions should be taken these days before investing in any stocks which are related to Housing markets?

Stocks are never "safe" in that there is always a risk you can lose some principal. However, in the long term they have been the best vehicle for investment at least for the small investor. But you should have a long term view.

With that, I'll take a different tack than the others.

This is not the first time the doom and gloomers were proclaiming the end of America; their voices were heard loud and clear in the late 70s and early 80s. Shortly before the stock markets took off on the greatest bull run in memory, if not history.

Will that happen again? Who knows for sure? But unless you believe we are headed for another great depression (and some do) then history shows at some point greed begins to outweigh fear and investors start jumping back into the market. And historically there have been some very strong years following a recession. By the time you figure out that is what is happening, you've missed it. In fact the market is already up more than 20% since its low.

If you do invest, make sure you are well diversified, and if you don't understand the principles of investing, I'd recommend that you consult with someone who does.
 
As we see another 23rd U.S Bank - New Frontier Bank in Greeley, Colorado, was closed by state regulators and bank to fail this year amid mounting losses linked to rising unemployment and the slumping housing market.

Is it safe to invest in stocks while these recessions are still going on, If "Yes" what are the primary precautions should be taken these days before investing in any stocks which are related to Housing markets?

No such thing as safe, particularly right now. Only invest what you could live with losing. Never borrow to invest.

If you're new to it and want low risk, I'd stick with municipals if I were you. If you're thinking housing, it sounds like you have an appetite for risk. I personally wouldn't touch banks or housing at the moment. There have been positive signs but I still don't think all the bad stuff has shaken out yet.
 
As we see another 23rd U.S Bank - New Frontier Bank in Greeley, Colorado, was closed by state regulators and bank to fail this year amid mounting losses linked to rising unemployment and the slumping housing market.

Is it safe to invest in stocks while these recessions are still going on, If "Yes" what are the primary precautions should be taken these days before investing in any stocks which are related to Housing markets?

No such thing as safe, particularly right now. Only invest what you could live with losing. Never borrow to invest.

If you're new to it and want low risk, I'd stick with municipals if I were you. If you're thinking housing, it sounds like you have an appetite for risk. I personally wouldn't touch banks or housing at the moment. There have been positive signs but I still don't think all the bad stuff has shaken out yet.

Some believe in the economy in the long run, some try to time the market, and some look at angles, Fibonacci numbers, and inflections of the DOW. Your choice.

That being said, I read and interesting newsletter around inauguration, and followed up with a copy later in the year. The author predicted that the DOW would drop to 6600 by mid February. He was almost on the head.

I called and got a sample newsletter, and this is what he predicted: DOW would regain 30-50% of its losses by summer- but then within a year would fall below the lows, possibley to 5000 as a "second leg" of this recession. He also claimed that every trillion the administration puts in would add a year to the recovery.

If the DOW hits 8800 by summer, that would be two correct calls for this advisor.

Any thoughts?
 
As we see another 23rd U.S Bank - New Frontier Bank in Greeley, Colorado, was closed by state regulators and bank to fail this year amid mounting losses linked to rising unemployment and the slumping housing market.

Is it safe to invest in stocks while these recessions are still going on, If "Yes" what are the primary precautions should be taken these days before investing in any stocks which are related to Housing markets?

No such thing as safe, particularly right now. Only invest what you could live with losing. Never borrow to invest.

If you're new to it and want low risk, I'd stick with municipals if I were you. If you're thinking housing, it sounds like you have an appetite for risk. I personally wouldn't touch banks or housing at the moment. There have been positive signs but I still don't think all the bad stuff has shaken out yet.

Some believe in the economy in the long run, some try to time the market, and some look at angles, Fibonacci numbers, and inflections of the DOW. Your choice.

That being said, I read and interesting newsletter around inauguration, and followed up with a copy later in the year. The author predicted that the DOW would drop to 6600 by mid February. He was almost on the head.

I called and got a sample newsletter, and this is what he predicted: DOW would regain 30-50% of its losses by summer- but then within a year would fall below the lows, possibley to 5000 as a "second leg" of this recession. He also claimed that every trillion the administration puts in would add a year to the recovery.

If the DOW hits 8800 by summer, that would be two correct calls for this advisor.

Any thoughts?

Do you have a cite to the article?
 
Whether it's "safe" or not depends on your time frame. Stocks are dirt cheap right now. So the upside is huge. But the short term volatility isn't going to disappear. So if you are in the long haul start buying!
 
No such thing as safe, particularly right now. Only invest what you could live with losing. Never borrow to invest.

If you're new to it and want low risk, I'd stick with municipals if I were you. If you're thinking housing, it sounds like you have an appetite for risk. I personally wouldn't touch banks or housing at the moment. There have been positive signs but I still don't think all the bad stuff has shaken out yet.

Some believe in the economy in the long run, some try to time the market, and some look at angles, Fibonacci numbers, and inflections of the DOW. Your choice.

That being said, I read and interesting newsletter around inauguration, and followed up with a copy later in the year. The author predicted that the DOW would drop to 6600 by mid February. He was almost on the head.

I called and got a sample newsletter, and this is what he predicted: DOW would regain 30-50% of its losses by summer- but then within a year would fall below the lows, possibley to 5000 as a "second leg" of this recession. He also claimed that every trillion the administration puts in would add a year to the recovery.

If the DOW hits 8800 by summer, that would be two correct calls for this advisor.

Any thoughts?

Do you have a cite to the article?

It wasn't an article, but I recall the prognosticator's name, I believe, was Steve Frankel or Frankle,

I'll try to find the Phone #. If you come across it first, post it.
 
now is probably a good time to "invest"

and by "invest" i mean get rid of dollars

what to get instead ? i don't know ...

hookers and crack perhaps ?
 
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Depends what your time frame is.

Over the next 10 years, stocks will be a good investment. However, we are not out of the woods yet.

I believe the market is in the process of bottoming but we may have another leg. I think that the March 6 low of 666 has a pretty good chance of being the ultimate low.
 
Depends what your time frame is.

Over the next 10 years, stocks will be a good investment. However, we are not out of the woods yet.

I believe the market is in the process of bottoming but we may have another leg. I think that the March 6 low of 666 has a pretty good chance of being the ultimate low.

At first I thought you made the mistake of dropping a digit, but then I noted who was writing, Beelz
 
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As we see another 23rd U.S Bank - New Frontier Bank in Greeley, Colorado, was closed by state regulators and bank to fail this year amid mounting losses linked to rising unemployment and the slumping housing market.

Is it safe to invest in stocks while these recessions are still going on, If "Yes" what are the primary precautions should be taken these days before investing in any stocks which are related to Housing markets?

No such thing as safe, particularly right now. Only invest what you could live with losing. Never borrow to invest.

If you're new to it and want low risk, I'd stick with municipals if I were you. If you're thinking housing, it sounds like you have an appetite for risk. I personally wouldn't touch banks or housing at the moment. There have been positive signs but I still don't think all the bad stuff has shaken out yet.

Some believe in the economy in the long run, some try to time the market, and some look at angles, Fibonacci numbers, and inflections of the DOW. Your choice.

That being said, I read and interesting newsletter around inauguration, and followed up with a copy later in the year. The author predicted that the DOW would drop to 6600 by mid February. He was almost on the head.

I called and got a sample newsletter, and this is what he predicted: DOW would regain 30-50% of its losses by summer- but then within a year would fall below the lows, possibley to 5000 as a "second leg" of this recession. He also claimed that every trillion the administration puts in would add a year to the recovery.

If the DOW hits 8800 by summer, that would be two correct calls for this advisor.

Any thoughts?

Sounds about right to me. I called Dow 6500 as the low, and I'm calling around 8800 to 9000 before we pull back and retest. We're not out the woods yet by a long shot.
 
No such thing as safe, particularly right now. Only invest what you could live with losing. Never borrow to invest.

If you're new to it and want low risk, I'd stick with municipals if I were you. If you're thinking housing, it sounds like you have an appetite for risk. I personally wouldn't touch banks or housing at the moment. There have been positive signs but I still don't think all the bad stuff has shaken out yet.

Some believe in the economy in the long run, some try to time the market, and some look at angles, Fibonacci numbers, and inflections of the DOW. Your choice.

That being said, I read and interesting newsletter around inauguration, and followed up with a copy later in the year. The author predicted that the DOW would drop to 6600 by mid February. He was almost on the head.

I called and got a sample newsletter, and this is what he predicted: DOW would regain 30-50% of its losses by summer- but then within a year would fall below the lows, possibley to 5000 as a "second leg" of this recession. He also claimed that every trillion the administration puts in would add a year to the recovery.

If the DOW hits 8800 by summer, that would be two correct calls for this advisor.

Any thoughts?

Sounds about right to me. I called Dow 6500 as the low, and I'm calling around 8800 to 9000 before we pull back and retest. We're not out the woods yet by a long shot.

It's a pretty good bet it will get up to 8800 to 9000; what is your prediction on the retest low?
 
Depends what your time frame is.

Over the next 10 years, stocks will be a good investment. However, we are not out of the woods yet.

I believe the market is in the process of bottoming but we may have another leg. I think that the March 6 low of 666 has a pretty good chance of being the ultimate low.

At first I thought you made the mistake of dropping a digit, but then I noted who was writing, Beelz

What are you talking about?
 
Depends what your time frame is.

Over the next 10 years, stocks will be a good investment. However, we are not out of the woods yet.

I believe the market is in the process of bottoming but we may have another leg. I think that the March 6 low of 666 has a pretty good chance of being the ultimate low.

At first I thought you made the mistake of dropping a digit, but then I noted who was writing, Beelz

What are you talking about?

I don't think she realizes you were referencing the S&P with that 666, not the DOW.
 
Depends what your time frame is.

Over the next 10 years, stocks will be a good investment. However, we are not out of the woods yet.

I believe the market is in the process of bottoming but we may have another leg. I think that the March 6 low of 666 has a pretty good chance of being the ultimate low.

At first I thought you made the mistake of dropping a digit, but then I noted who was writing, Beelz

What are you talking about?

You know that the DOW did not fall to '666' and I believe that, rather than a slip, the mumber has some significance for you:
"Revelation, Chapter 13 speaks of the beast and how to identify his followers. According to verses 16 and 17, they will have the mark or the name or number of the beast on their right hands or foreheads. Verse 18 introduces the number 666 itself: "Let him that hath understanding count the number of the beast: for it is the number of a man; and his number is Six hundred threescore and six."

Identification verified.
 
At first I thought you made the mistake of dropping a digit, but then I noted who was writing, Beelz

What are you talking about?

You know that the DOW did not fall to '666' and I believe that, rather than a slip, the mumber has some significance for you:
"Revelation, Chapter 13 speaks of the beast and how to identify his followers. According to verses 16 and 17, they will have the mark or the name or number of the beast on their right hands or foreheads. Verse 18 introduces the number 666 itself: "Let him that hath understanding count the number of the beast: for it is the number of a man; and his number is Six hundred threescore and six."

Identification verified.

He was talking about the S&P 500, PC. It bottomed at 666.
 
What are you talking about?

You know that the DOW did not fall to '666' and I believe that, rather than a slip, the mumber has some significance for you:
"Revelation, Chapter 13 speaks of the beast and how to identify his followers. According to verses 16 and 17, they will have the mark or the name or number of the beast on their right hands or foreheads. Verse 18 introduces the number 666 itself: "Let him that hath understanding count the number of the beast: for it is the number of a man; and his number is Six hundred threescore and six."

Identification verified.

He was talking about the S&P 500, PC. It bottomed at 666.

You mean he's not the devil?

And Toro had gone up in my estimation.
 

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