What to do? What to do?

Discussion in 'Economy' started by Tech_Esq, Mar 5, 2009.

  1. Tech_Esq
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    Tech_Esq Sic Semper Tyrannis!

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    Ok, somehow, through no wisdom on my part, I have not participated in the meltdown of the market. Through some incredible timing and a little sheer laziness, I rolled my ESOP and 401(k) funds into my IRA about this time last year and never invested them. I then sold all of the stock I was holding in that IRA in preparation for buying something, but I got too nervous before I did it and just held off. Eventually, I bought 6 month CDs with most of it, to wait it out. One of the CDs the bank failed within 3 months. I got my money back from the FDIC. They other one matured in January.

    Now the question is what to do with this somewhat sizable (at least to me) chunk of cash languishing at money market rates in my IRA? Any good suggestions?
     
  2. DavidS
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    DavidS Anti-Tea Party Member

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    Invest it in art. The art market has appreciated every year since 1980 and has given better returns than gold, stocks, money markets... you name it.
     
  3. Tech_Esq
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    Tech_Esq Sic Semper Tyrannis!

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    While my IRA is pretty flexible, I don't think there is any way to invest in art with it :confused:
     
  4. wimpy77
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    wimpy77 Member

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    money seems to be good right now. im not ready to invest in stocks at this point. david and toro and better at this stuff than me. im just chicken to put my money in right now.
     
  5. auditor0007
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    auditor0007 Gold Member

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    I'd hold; keep your money in cash for now. We haven't hit bottom yet.
     
  6. Tech_Esq
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    Tech_Esq Sic Semper Tyrannis!

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    I agree with that sentiment. I'm a believer in the idea that this will end with a whimper and not a shout. The market is far too volatile to be at a bottom. My understanding is the next technical support is at 6000, true?

    I was more wondering if anyone would say to get into metals at this point or if the ship sailed on that long ago. I'm concerned about inflation when we do get a recovery.

    Maybe when people flood into the market after the bottom I'll throw 20% in gold as people sell theirs.
     
  7. DavidS
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    DavidS Anti-Tea Party Member

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    That would be the worst thing you could do - going into gold. Let's say you bought gold at $1000/ounce and did what so many idiots are doing and put 50% of your money in there - it's down almost 10% since reaching its high of $1005. It was around $900 earlier today. Read my lips: Gold will not reach $1050.

    Silver on the other hand... that's a different story. For every one ounce of gold, you can get over 70 ounces of silver. And Cramer pimped silver the other day like a skank whore.
     
  8. DavidS
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    DavidS Anti-Tea Party Member

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    Liquidate your IRA and buy in some emerging art. I'm dead serious about this.
     
  9. xsited1
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    xsited1 Agent P

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    Art in the form of Bonds. Ask your broker.
     
  10. Tech_Esq
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    Tech_Esq Sic Semper Tyrannis!

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    Actually that's what I was thinking about gold. The ship sailed on that long ago. That's why I said metals.

    On the purchase of gold I was saying once we hit bottom, my thought was that some people will sell their gold (causing the price to drop, probably a lot) and flood into equities. Not that I'm trying to overly time anything, but I would think there would be a sweet spot where gold would drop below $700 or $800 and I might pick up about 20% of my portfolio at that point. If it dropped further I would add, because the inflation that's coming is gonna be a bitch and a half.

    If silver is a good deal now, I might just start buying that now.
     

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