Personally I think this is just about the biggest indicator that value does exist and there are plays to be made. The guy is a complete jackass and was spouting the value of averaging down on plays like Inktomi in early 2002.
If you couldn't see the bursting of the tech bubble coming, what good are you.
I have a "conservative" Vanguard stock fund, down a bit; I might need the money in the next 5 years. Should I dump it and take the hit?
According to him, YES.
Jim Cramer's 20% prediction has already been surpassed in most areas of decline. My 401k has already been devalued by almost 30% but I am only 31 and plan on having the money in the market for about as many years. Anyone that thought the continued rediculous growth we were seeing over the past few years was normal was asking for trouble. I bought my last house in 1999, a townhome for 158k. Sold it 4 years later for 310k! Shit like that is nice, but not normal. The correction we are experiencing now is one hell of an opportunity for us younger guys to make some money when the cancer gets cut out.
Jim Cramer's 20% prediction has already been surpassed in most areas of decline. My 401k has already been devalued by almost 30% but I am only 31 and plan on having the money in the market for about as many years. Anyone that thought the continued rediculous growth we were seeing over the past few years was normal was asking for trouble. I bought my last house in 1999, a townhome for 158k. Sold it 4 years later for 310k! Shit like that is nice, but not normal. The correction we are experiencing now is one hell of an opportunity for us younger guys to make some money when the cancer gets cut out.
I bought my last house in 1999, a townhome for 158k. Sold it 4 years later for 310k! Shit like that is nice, but not normal.
Josh,
That is an excellent point about home valuations, in that, despite the home values flying up in a few short years our salaries did not raise anywhere near that level. It was unreasonable to expect that people would even be able to keep up with that pace.
I, just as you, was lucky enough to sell two homes before the bubble burst. One went from $310k to $425k in a few years, but the other went from $610k to $725k in 6 months. The last house sold the very month that it all went south and I see that it is now in foreclosure.
Thing is, our parents NEVER took loans against their homes the way that people do these days. Might be a good lesson for everyone to follow our parents and grandparents advice.
__________________
96% of half the African Americans voted for 14% of 9/10's of the people that looked most like them. The rest followed the herd.
I take Crammer with a grain of salt, but he is fun to watch when he goes bonkers hitting buttons and throwing chairs and garbage cans . In this case he did say before awhile ago we would see a drop down into the low 9K range, and most likely into the 8K range as well. You had others saying it wouldn't go below 10K support level, yesterday seem to prove that wrong, quickly. I wouldn't follow him for actual financial moves though, been wrong more times then he's been right, but he's a good watch....better then watching some borring schmoe talk numbers and sound like blahh blah blee blah blee lol.
Cramer called the bottom in July, he is a complete fool. His only claim to fame is that his then wife (much more market savvy than he will ever be) told him to sell tech in his hedge fund right before the bubble burst. He made a ton and looked good on her advice.
He is like most weathermen. Good at telling you that it's raining outside, worthless at predicting anything.
Cramer called the bottom in July, he is a complete fool. His only claim to fame is that his then wife (much more market savvy than he will ever be) told him to sell tech in his hedge fund right before the bubble burst. He made a ton and looked good on her advice.
He is like most weathermen. Good at telling you that it's raining outside, worthless at predicting anything.
Well, I flipped the switch and took a decent hit on a conservative stock fund I had. Moved it into bonds for now. I just don't see this hitting bottom for a while.
Well, I flipped the switch and took a decent hit on a conservative stock fund I had. Moved it into bonds for now. I just don't see this hitting bottom for a while.
The ones I pulled out of were all conservative, I'm not a big risk taker with stocks etc even at only 26 years of age. I lost a ton on conservative and other less risky investments.....if I had of had aggressive setups, oye vey
I'm in fairly aggressive right now and have thought of going more conservative. But, as soon as I do things will start to improve and I'd be wishing I would have stayed the course.
I have a "conservative" Vanguard stock fund, down a bit; I might need the money in the next 5 years. Should I dump it and take the hit?
I wish I could remember the exact statistics but I'll at least get pretty close.
65% of stock analysts lose to the S&P 500
You are 70% to make more money dollar cost averaging than trying to time a market
If you were to have tried to time the market and missed the 12 biggest rally's in the S&P500 in the last 10 years, you would be down. If you were to have kept it in, you would be up.
Cramer made some good/lucky picks early in his career and brought home a lot of money. Since then, his reputation is not good at all. He became a laughing stock on wall st. and there is a group of investors that actually base their investments off of going against what ever Cramer says on his show. Last I heard, they were doing very well.
I also heard Cramer recently say that all of his predictions shots in the dark and the best, most reliable way to make money is dollar cost averaging the S&P500. Of course, he would never say that on his show, why would people watch any more?
__________________
You're gonna need a bigger bat!
I had 70K in tech and research funds earlier this year and it was 41K today-OUCH. I have most of my $ in my computer business in laptops, desktops, pallets of drives, servers and the like plus all my shit is paid off sans $35K or so on my house left. My thoughts are that of my finance professor at school, "the fastest way to double your money is to fold it in half!"
. In this case he did say before awhile ago we would see a drop down into the low 9K range, and most likely into the 8K range as well. You had others saying it wouldn't go below 10K support level, yesterday seem to prove that wrong, quickly. I wouldn't follow him for actual financial moves though, been wrong more times then he's been right, but he's a good watch....better then watching some borring schmoe talk numbers and sound like blahh blah blee blah blee lol.
