On 18/03/2011 12:40 PM, johncb wrote:

Stocks plunged 138 points yesterday. I heard by next week it will drop
another 500! That sucks.. I am already on my way to living in the
street.. anyone know a good market to be in?

You must be new to investing. Ever since congress of 2006 took steps to
mess with the currency, too much new ponzi fiat moneys and too low of
interest rates unemployment has climbed and markets are far less stable
than they used to be. Once debt-spend Obama looked like he was going to
win and someone wants to be paid out of the mountain of debt, well - the
rest is history.

Personally I would like to thank the liberal idiot who destablised the
economy with piles of ponzi debt as I saw this shaing up in 2007 when I
cashed up. I wouldn't ahve the gains I have today if prudence and
conservative currency management was used. I would have to live with a
sucky return of 5 to 8%. Now, that seems like chump change for returns.

The trick was that when real savings interest rates plus taxes is less
than real inflation, cash up as a real recession/depression is coming.
Sell any stocks that you don't have faith in for at least 2 whole years.
So I dumped a little over 1/2 the portfio to cash. So when the big
dip came, I had the cash to cherry pick and really picked of some
serious gains.

Just watch for these dips, cherry pick good stocks when it looks like
they pop up and plane out a bit dump them. I do it in tax defered
accounts, far less paperwork. In cash accounts I only keep the long
term plays.

This is history repeating itself, much of this mimics 1929/1932 pretty
closely. For much of the same reasons too, including the immutable fact
that you can't debt-spend your way out of a debt problem. But you can
make it worse. So do expect volitility. It is a dangerious investment
environment right now. Big gains can be had, but the risk too is there.

You can expect it to be more stable as inflation rises and the US Fed
raises rates 2 to 3 percent more than inflation. But we are a long way
from that as Berneke has his shoulders on his but for this one. In fact
dare I say so long as this clown puppet is in office, you can consider
the US economy is like the Japans Lost Decades.