Is it safe to invest in stocks ?

[tigerbob]

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.

Toro is a Reds fan, and therefore deserving of all respect.

All Hail Toro!

 

[PoliticalChic]

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.

Toro is a Reds fan, and therefore deserving of all respect.

All Hail Toro!

RED fan. Yeah, see- red suit, horns on that avatar!

I was right all along.

 

[ItsFairmont]

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?

You are asking if it's safe to invest in stocks. There is no answer for that.


However, I will say this: handing your money over to a complete stranger to manage for you is one heck of a risky way to get rich.


Most millionaires in America got that way the exact same way they did 400 years ago: real estate.

You don't have to believe me, and you can argue until you're blue in the face. But I'll trot out fact after fact. Land is the best way to become rich.

But it requires patience.

 

[tigerbob]

You mean he's not the devil?

And Toro had gone up in my estimation.

Toro is a Reds fan, and therefore deserving of all respect.

All Hail Toro!

RED fan. Yeah, see- red suit, horns on that avatar!

I was right all along.

...said the 'chic' in the red hot pants with the "come hither" look.

 

[Iriemon]

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?

You are asking if it's safe to invest in stocks. There is no answer for that.


However, I will say this: handing your money over to a complete stranger to manage for you is one heck of a risky way to get rich.


Most millionaires in America got that way the exact same way they did 400 years ago: real estate.

You don't have to believe me, and you can argue until you're blue in the face. But I'll trot out fact after fact. Land is the best way to become rich.

But it requires patience.

Lots of would be millionaires are stuck with property worth less than what's owed on it at the moment.

 

[Toro]

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.

That's where Satan covered his short positions and went long the market.

The devil is a pretty good trader, you know...

 

[lancenicolase]

Don't believe anyone answering this question! I'm not saying that they are wrong or are lying. It's just that you need to do a lot of studying of any of the stocks mentioned before you buy any listed here or anywhere.

I posed a similar question back in October, and got lots of answers. And NO ONE was entirely accurate, and actually everyone was pretty much wrong.

Having said that, this is possibly ALMOST a good time to buy stocks, but I would wait a few more days to see if the market bottoms out or goes lower.

Also, the answerer right above me mentioned a few that might be good, but then he listed a lot of stocks! Just try to consider that the world is using more and more natural resources such as titanium, copper, aluminum, and others. I don't know which is more in demand and less in supply, but you could study that to find out.

I have a long term faith in Goldman Sachs though, and their stock symbol is GS. They are pretty sharp and have their fingers in everybody's pot.

 

[code1211]

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?

Use common sense.

An example of common sense. I bought Ford at $2.00. It dropped a little then rose. I haven't checked this morning, but it was above 5 last time I did. Ford seems to like to keep the value of its stock around 10. They turned down the bail out. I bought the stock.

A second point of common sense. The question you ask puts you in my league when it comes to knowledge on this kind of stuff which is, and I mean no disrespect when I say this, almost knowledge free. From this point of understanding, buying stocks and going to a Casino are about on a par. Only "invest" what you can afford to lose.

A good long term investment if you are young is a No-load, diversified Mutual fund with a strong history. If you are old, a very low risk mutual fund or other instrument with low risk low return. You can go to your bank this morning and get this done, but you need to be assured, if you are going to lock up cash, that you won't need that cash in the near term.

Finally, take a lesson from the current economy. Make sure you have proper insurance coverage first, some cash reserves second, pay off debt and get out of debt, start some kind of savings for the five years away stuff and some kind of savings for retirement.

Stocks can be tantalizing, but they can be a great way to lose money. Be careful with your money. The only one who cares if you keep it is you.

 

[code1211]

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.

That kind of talk is just silly. Things are already starting to turn around and the panic times only started in about October. Are things right now worse than ever? Not even close. Are they as bad as they are going to get? Time will tell.

As a child of Depression era parents and a survivor of the debacle of the mid to late 70's and early 80's, I've heard of and seen worse.

I thought that from last October forward, we had about 12 to 18 months before things got right again. Well, a Trillion dollars later and myriad of miss judged, poorly planned, politically motivated and misrepresented boondogles we are stumbling around waiting for some guidance from the top.

During this time Obama and Timmy have done many things, but none seem to address the problem. Toxic assets? Were these not the big Boogie Man of the Fall? Have they been bought up, bought down or otherwise taken off the books? No.

What do we have instead? Bail outs, band aids and boondogles. Obama is shaping up to be twice as smart as W if we use only the growth of the debt to measure this stuff.

What Obama is doing right now is paying for a short term problem with long term debt. It's like taking out a second mortgage to go on vacation. Makes no sense.

Luckily, we have the American economy to pay for this. We've had dumber poiticians trying to save us in the past with even worse results. My fear is that Obama will save us so completely that there will be nothing left of the economy to pay for the damage. We can at least be thankful that we haven't fallen into a vast, National Malaise.

You're doing a heck of a job, Timmy.

 

[Toro]

I have no doubt America will get itself out of this mess. Economies grow because of increases in productivity (as well as population growth). To assume that the economy cannot recover is to assume that the ingenuity and resourcefulness of the American people is at an end. Since the American economy has gone through far worse - the Civil War, the 1873 Depression, the 1929 Depression, WWII - the economy will recover from this as well.

 

[auditor0007]

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.

You are pretty much on the money. The only way this will not be the outcome is if government spending is slashed drastically. I don't see that happening anytime soon, so we're fucked.

 

[editec]

When American go back to work, THEN I would feel confident to invest generally.

Bear in mind that I still think that the price of real estate is so far out of line with average incomes that things are going to remain out of kilter regardless of what the stock market does from day to day.

That doesn't mean that some stocks cannot be winners, but it does mean that Amnerica cannot win until it does something about the shrinking American middle class.

 

[WillowTree]

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.

you are not wrong,, the democwats will see to that.

 

[auditor0007]

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?

I've read some others who believe pretty much the same thing, that this is a bear rally and it's going to come crashing down hitting new lows. I would be very hesitant to invest in stocks at this time.

Here is another big problem. Wall Street, in the long run, is a reflection of what is happening on Main Street. However, there are blips on Wall Street that don't always correlate to what is actually happening on Main Street. This current market rally is evidence of that. Some people are getting their hopes up because unemployment is not increasing as much as it was, but it is still increasing. The economy isn't shrinking as much as it was, but it is still shrinking. We have not yet turned the corner.

To top this off, there is not one single sector of the economy that is poised to lead the way back to recovery. Housing is in shambles. We now have nearly 20 million vacant homes. That's enough homes to house 60 million people. Does anyone understand these numbers? 60 million people need to fill these existing vacant homes before we need to build any more houses, and housing is one of the most integral parts of our economy. When housing is not doing well, neither is our economy, and with that many vacant homes out there, we are not likely to see a turnaround for a very long time.

Now, that doesn't mean things will necessarily continue to spiral downward forever, but the idea that we will just bounce out of this is not in the cards, as far as I'm concerned. This is the classic L recession where we will most likely hit an unemployment rate of around 10%, maybe a little higher, and then remain there for a very long time.

So what will turn all of this around? More people. And this is what tends to happen. When people don't have money to spend, they end up sitting around home with nothing better to do, and they end up making more babies. This may sound off the wall, but it's true. People have more kids when economic times are at the worst. When the population expansion finally hits, as those kids become adults, the economy finally has the opportunity for real expansion. Based on that, I'd say we won't be seeing a real strong economy again for another twenty or so years.

 

[auditor0007]

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.

Here's a link to another article on the same subject.

Tice Sees Stocks Plunging 54 Percent

Friday, May 1, 2009 10:15 AM

By: Dan Weil Article Font Size

The bear market in stocks is just hibernating now and will soon come back with a vicious growl, says David Tice, chief portfolio strategist for bear markets at Federated Investors.


Tice, who called the market’s top in 2007, isn’t swayed by the recent 31 percent jump in the Standard & Poor’s 500 Index from its March 6 low


“Denial isn’t just a river in Egypt,” he tells Bloomberg TV. “A lot of people on Wall Street are experiencing denial.”


This is a bear market rally, Tice says.


“There will be a lot of rallies. However, we expect a lot of declines, with each decline taking out the previous low.”


The S&P 500 could drop to 400, he says. That would constitute a 54 percent plunge from Thursday’s close.

Moneynews - Tice Sees Stocks Plunging 54 Percent

 

[auditor0007]

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.

The S&P fell to a low of 666 on March 6th.

 

[auditor0007]

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.

Toro is a Reds fan, and therefore deserving of all respect.

All Hail Toro!

The last time the Reds were any good, the economy wasn't much better than it is today.

 

[auditor0007]

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?

You are asking if it's safe to invest in stocks. There is no answer for that.


However, I will say this: handing your money over to a complete stranger to manage for you is one heck of a risky way to get rich.


Most millionaires in America got that way the exact same way they did 400 years ago: real estate.

You don't have to believe me, and you can argue until you're blue in the face. But I'll trot out fact after fact. Land is the best way to become rich.

But it requires patience.

This is very true. However, in order for real estate to increase in value, it requires population growth. Now is a good time to invest in real estate, but it's going to take some time before it shows a good return. And you have to make enough on it to pay the taxes, so be careful.

 

[auditor0007]

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?

You are asking if it's safe to invest in stocks. There is no answer for that.


However, I will say this: handing your money over to a complete stranger to manage for you is one heck of a risky way to get rich.


Most millionaires in America got that way the exact same way they did 400 years ago: real estate.

You don't have to believe me, and you can argue until you're blue in the face. But I'll trot out fact after fact. Land is the best way to become rich.

But it requires patience.

Lots of would be millionaires are stuck with property worth less than what's owed on it at the moment.

They bought when it was overvalued. Real estate is no longer overvalued, although it's not going to show a quick turnaround either. It's a good long term investment so long as you can generate some income from it. If you can pay cash for it, then it's a great buy.

 

[editec]

You are asking if it's safe to invest in stocks. There is no answer for that.


However, I will say this: handing your money over to a complete stranger to manage for you is one heck of a risky way to get rich.


Most millionaires in America got that way the exact same way they did 400 years ago: real estate.

You don't have to believe me, and you can argue until you're blue in the face. But I'll trot out fact after fact. Land is the best way to become rich.

But it requires patience.

Lots of would be millionaires are stuck with property worth less than what's owed on it at the moment.

They bought when it was overvalued. Real estate is no longer overvalued, although it's not going to show a quick turnaround either. It's a good long term investment so long as you can generate some income from it. If you can pay cash for it, then it's a great buy.

I think real estate is still overpriced in many areas of the nation.

I think it's been overpriced for the last thirty years, frankly.