Comments on Saving to Inve$t: Pop goes Last Week's Bubble as Stocks Plunge

Curt/Kyle - I too wish we would reach a bottom soo...

2008-12-02T09:35:00.000-05:00

Curt/Kyle - I too wish we would reach a bottom soon, this long suffering ups and downs is brutal for the investing pysche. Evock's quote is so accurate for the current situtation. Scary stuff.

Dow 5000 may not be so unrealistic given market moves nowadays.

I more or less agree with Curt at this point. Exp...

2008-12-01T22:47:00.000-05:00

I more or less agree with Curt at this point. Expecting any sort of recovery before next summer is unrealistic, although I don't think we'll see 5000. Either way, I'm diversified and in it for the long haul.

Quote:The singular feature of the great crash of 1...

2008-12-01T18:08:00.000-05:00

Quote:
The singular feature of the great crash of 1929 was that the worst continued to worsen. What looked one day like the end proved on the next day to have been only the beginning. Nothing could have been more ingeniously designed to maximize the suffering, and also to ensure that as few as possible escaped the common misfortune. The fortunate speculator who had funds to answer the first margin call presently got another and equally urgent one, and if he met that there would still be another. In the end all the money he had was extracted from him and lost. The man with the smart money, who was safely out of the market when the first crash came, naturally went back in to pick up bargains. The bargains then suffered a ruinous fall. Even the man who waited out all of October and all of November, who saw the volume of trading return to normal and saw Wall Street become as placid as a produce market, and who then bought common stocks would see their value drop to a third or a fourth of the purchase price in the next twenty-four months.

from "The Great Crash: 1929", John Kenneth Galbraith

The marketed are heading a lot lower, so sell into...

2008-12-01T16:41:00.000-05:00

The marketed are heading a lot lower, so sell into the rallies like last week.

I wish the market would just drop to the bottom (probably 5500) so that we can get it behind us. But, that is not likely to happen.

Instead the market is probably going to continue declining for six months to a year before we get to the bottom. Long and painful, day after day, will be very wearing on everyone. I'm getting sick of talking about the bad news, which just keeps coming.

I can't wait for the bottom, but by the time we get their no one will recognize it - just like they didn't realize we were in a recession for so long.