peredon said:For long term investors these fluctuations dont matter as our horizon is 20-30 years Certainly a valid point, however no one likes to see thier 401k drop 3% in one day! Also, even with this theory, lets say this is your first purcahse for a retirement account you will cash out in 30 years, and you have 45k to invest. You pick which one you want:

1) Invest 45k and buy 1500 shares (in different companies) at an average price of $30 per share.
2) Invest 45k and buy 1560 shares (in different companies) at an average price of $28.85 per share.

Do the 30 year compounding at any interest rate you wish and see how HUGE of a difference this can make

kai2007 said:I seem to recall that it took 20 years for the market to get back to where it was before the 1929 Crash.

So buying at the top before a crash can be painful, even if you are in for the long haul.Waiting to buy while the market keeps going up can also be painful.

jayK said:That's why you don't check your long-term investments every day. I only check on my 401(k) once or twice a year, just to ensure my portfolio is correctly balanced. I can't help it (OCD maybe), and the fact that I like to day trade when possible (pending I have the time), which I do this summer, but I tend to check every day (I know this has been discussed elseware in a thread).

PS: Market update: 2:55PM , dow down 437 (I can hear rioting in new york)

MikeR397 said:MaddHatter said:Since this thread's here and is worthless by default, I'm going to make another stupid post.

Dow's down 285 pts at the moment, and S&P down 2.35%. Has me wondering if I may as well open the wife's Roth now instead of waiting for October.When I saw this thread get bumped, I was going to compain to the poster at first. However, as I have not been paying attention to the market the last week, this is a nice little heads up (thanks op). Down 285 by 1PM leaves a lot of room to fall a lot more. If we get a 400 point fall, I might think about going long in some positions before the end of the day.

Are you long?

scott1961 said:agentpt5 said:WalStMonky said:The day this thread was started the Dow traded as low as 12,078.85.

and my Dow 10K prediction has not changed. I still have around 4.5 years left.
You may be right or maybe it will be at 20k, Either way I could care less. My cash in the bank does nothing but go up year after year, Albeit at a slower pace. But that roller coaster ride you call a market was just to much for me. So many will be in bed tonight thinking will it bounce back tomorrow or fall further, While I drift peacefully to sleep compounding interest in my head.

Right. If you aren't comfortable with the increased risk of the stock and bond market, it is perfectly respectable to put your money in an account earning 5.xx% guaranteed. I would be laughing at him if he said he hides his money under his mattress so he doesn't have to take the risks of the stock market. Not because he chooses a more conservative (and guaranteed) approach to investing/saving.

agentpt5 said:WalStMonky said:The day this thread was started the Dow traded as low as 12,078.85.

and my Dow 10K prediction has not changed. I still have around 4.5 years left.

Since you made that bold prediction the dow is up over 10.6% (that is after today's 3%+ sell off). How are those short plays working out you made then?

longwood8 said:agentpt5 said:WalStMonky said:The day this thread was started the Dow traded as low as 12,078.85.

and my Dow 10K prediction has not changed. I still have around 4.5 years left.

Since you made that bold prediction the dow is up over 10.6% (that is after today's 3%+ sell off). How are those short plays working out you made then?

Please, I have not touched the short side since 2001. Give me a bounce, and I think I am going to short for the first time in 6 years.

I have been 100% long gold, silver, oil, and gas since 2003.

MikeR397 said:delezy said:That's why you don't check your long-term investments every day. I only check on my 401(k) once or twice a year, just to ensure my portfolio is correctly balanced. No, I do not own anything right now. Sold everything in my Roth about a week ago right before it hit 14k and have been waiting for a situation like this. However, I'm thinking I'm going to be patient here. Maybe it will bounce back tomorrow a little, but I don't think August will be a good month. We'll see, I have almost an hour.

PS: Yes I'm thinking about going long (in an index fund, or foreign index fund that is down 8% today). The things I want to trade short are not available for short trading in Zecco.

SRS seems like a solid hedge for those worried about real estate. It's a double inverse etf (uses leverage) against the IYR etf. Props on cashing out in your Roth. That's one of the big advantages of self managed IRAs, you can trade all day and zero taxes.

MikeR397 said: No, I do not own anything right now. Sold everything in my Roth about a week ago right before it hit 14k and have been waiting for a situation like this. However, I'm thinking I'm going to be patient here. Maybe it will bounce back tomorrow a little, but I don't think August will be a good month. We'll see, I have almost an hour.

PS: Yes I'm thinking about going long (in an index fund, or foreign index fund that is down 8% today). The things I want to trade short are not available for short trading in Zecco.

You're day trading your retirement fund?

ifyouhavetoask said:Whatever you do, don't take your eye off those Dow gains.

Don't look at the dollar.
Don't look at the credit markets.
Nothing to see there.

Just watch your 401k balance. As long as that keeps going up, there's nothing to worry about. Anyone who says otherwise, is a communist.OK, so what's your strategy then? I'm afraid you won't get much of a return by investing in sarcastic comments...