Out of the market today...

[Zeke]

The more interesting part of the discussion will be where will you invest the cash?

I have a friend of many years that has a problem of too much cash and no where to put it. He was in hard money loans, but doesn't like that market now. With CD's paying next to nothing, he would not do those either.

So, he buys surplus new homes in Victorville. No problem getting a grand a month rent for under 80,000 investment. You do the math. He affirms that he nets 10% on his money.

He knows real estate so property management is no hassle for him. He simply hires it done, but not by an established firm that gets 10%. He never leaves his house and has maybe 4 million in real estate not counting his own expensive home.

Which I believe is paid for.

[wreckersteve]

Well I never had anything in the market. The last few years I was going to but it just doesnt seem to have bottom out yet. So when it does, let me know.

[Garp]

Originally Posted by Wayne at Pelican Parts

I occasionally make posts sharing some investment strategies (remember, buy AAPL @78, sell CountryWide short, etc.).
-Wayne

I remember that call very vividly. Excellent move. Good luck.

[Porsche-O-Phile]

I agree and am in a similar situation. The question most investors are asking these days is "where's a safe place to park money?" There's not a good answer for that one either, although I think going short on T-bills isn't a bad idea (there's a pretty obvious bubble there and if you've got the stomach for it, it might be a play worth looking at...)

Other than that, I think Asia and S. America don't look too bad, but nothing looks really good. There's a lot of people taking the "wait and see" position and not a lot of active capital allocation going on.

[KFC911]

I'm still in (never got out) and doing pretty well with that portion of my investments. Imo you forgot the most important item: Wallstreet LOVES gridlock in DC and that's coming. Now is the time for long-term investors to be buying imo...YMMV. Betting against equities (and the US economy) in the long run is a losing proposition imo as equities historically provide the best returns over time. If the US goes down in flames, it won't matter what you're invested in (to a degree) imo. Of my equity positions, about half are high dividend stocks (5-7% returns).

edited: I'm also diversified about 50/50 between equities and (solid, paid off, income producing) investment properties but I'm small potatoes

[cgarr]

Sounds good to me, Just get back in at the bottom again. You have to be able to sleep at night and it sounds like a lot of people are having sleepless nights!

[McLovin]

I'm at about break-even for the past 3 years.

I've been almost completely out for going on 3 years now, so we're tied.

[McLovin]

I agree on getting out now, though.

[tabs]

1. Markets hate Uncertainty and the Obama and the Dems bring that on in spades. A Republican sweep in Nov will mean a more balanced govt eg gridlock. Or an end of the Lefts reign of terror. The stock market will like this. Kramer was right about Wall Street applauding an Obama failure and hoping it will translate into his defeat at the polls.

2. Corporate earnings have been very strong for this year. most exceeding expectations. Yet there has been no rise in stock prices. When this is reflected in the PE ratios it is a defacto devaluation of stocks. Stock Market once the uncertainity of the election is out of the way should rise

3. Since the begining of 2009 569B has flowed into T Bills reflecting an On the Beach stratedgy. This is creating a Bond Bubble which will have to deflate at some point. Money will start to come out of Bonds and GO WHERE???

4. There is NO ASSET CLASS barring Gold that is rising in value. there is no place to make money. Bonds, CD's , RE..the Stock Market remains an undervalued asset as it has been for the last 10 years.

One could say your timing was ill advised. One should have waited till after the election before making a move.

Also from the technical aspect of the market..U really should have watched the SP 500 average and taken a close look at its support levels. 1050 Baby is where it has found support, is this the 2nd or 3rd time it has bounced off these levels. The market is building a foundation at these levels. In other words every time the market declines to 1050 the buyers come in and start buying as they think it is a good buying opportunity.

The market is trading in a range...due to earning and a Republican sweep the next move for the market should be higher.

Also a weaker USD makes US exprts more affordable and the a declining USD should make stock prices rise as the value of the asset is now worth more USD...

You should go back to shorting T Bills...you can't go much lower than 0% interest. The next step if for the Fed to start screwing witht the 10 year note....

[Superman]

I was going to head to the market after work today. I need tomatoes. Now I'm nervous.

[TechnoViking]

I just buy the index and hold it. I don't have the stomach for jumping in and out. Everything I have in the market is LONG term (like 20+ years to withdraw).

[jjwood]

yea take money out of the market, and invest it in something tangible, like maybe a 962. I wish.

[1990C4S]

I don't believe in 'market timing'. Too difficult. I don't think very many people who try that succeed.

[The Gaijin]

"Let the discussion begin!"

Dunno. I think you have given an excellent summation.

I lived an worked through the Japan boom and bust of the early 1990s. I just hate to think we are heading into that same sort of doldrums.. Too much of this economy is oddly familiar.

Time will tell.

[flatbutt]

Well my Bond portfolio is 25% lighter today. It was holding steady at a minimal earnings rate but it has remained in the black for 5 years. I just felt a tingle and moved some funds into Money Market.

[Rot 911]

I think the market is going to wait until the November elections to decide which way it is going to go. I'm going to hang in there awhile longer.

[KFC911]

Originally Posted by The Gaijin

....Time will tell.

Agreed. I don't even think about trying to time the market...I just don't worry about money that much to preoccupy myself with such a losing proposition over time (Warren Buffet has it right). The SP closed at 1064 today...let's see where it is one year from now (still short term imo, and I too have a 5+ year horizon). I too believe in "sleeping well" at night, and if uncertainty bothers you, then "out" is the correct place to be

[Bill Douglas]

Originally Posted by Porsche-O-Phile

Other than that, I think Asia and S. America don't look too bad,

umm. I thought that too and bought Australian BHP Biliton mining shares. These guys sell the iron ore and coal to the Chinese and Indians. But the shares have dropped something like 5% Another mining share Lihir Gold is doing well, but that's only because of a looming takeover. The Chinese really are cutting back on lending, building and improving their intrastructure.

Edit: I did buy with a three year timeframe in mind, so I wasn't being unrealistic and expecting a six month bounce back in the economy.

[island911]

This culture of manipulating money to gain wealth has to end. All those who used their house equity as a cash-machine has ended. (Good) But, the bigger problem is all those in banking/govt who believe that they can manipulate the monetary system all the way to prosperity. Also, those boomers who think that they can ALL be taking their money out of the market w/o anyone noticing. All of those auto paycheck extractions to 401k's were great for the market on the way up. tic-tock, tic-tock.

Population concerns aside, Political uncertainty is right. The big Q's are;
will the recent poisonous, manipulative, complicated schemes be reversed by a change of political balance? (mid-term)
If so, will it be enough? Or are we Thelma and Louise with only half throttle, as we clear the edge of the cliff?

[dtw]

Yep. I've been out since early 2008.