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Discussion Starter · #1 ·
I have coworker who is nearing retirement age. As typical of many people, he has no clue as to what is going on in the financial markets. And in spite of having parents who went through the Great Depression, he has no interest in any sort of prepping, as "the country was a lot different then, the govt won't allow that to happen these days."

So I see him after lunch, about 1:30 west coast time (after the markets closed). And I mention the 500+ drop in the DOW.

He gets a stricken look on his face (he has all his pending retirement in 401k funds, I believe) and says, "I have to call my advisor."

Not sure what he discussed, but he came back looking a bit relieved. And said although he suffered a loss today, his financial advisor told him he would move his funds out of the stock market tomorrow into money market funds.

Now, multiply this: if there are 79 million baby boomers, and let's say a third (a conservative estimate) have money in the stock market....

How many made similar calls as my coworker?

This, along with a bad jobs report, might result in a very ugly Black Friday...
 

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Tokyo shares plunged 4.09 per cent in early trade today, following a sharp selloff on US and European markets amid worries over the American economy and the European debt crisis.

The Nikkei index at the Tokyo Stock Exchange dropped 395.09 points in eight minutes to stand at 9,264.09, before the initial sharp plunge stopped.


Read more at: http://profit.ndtv.com/news/show/ja...-in-early-trade-166859?pfrom=home-Business&cp
 

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Maximus
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Dunno... seems like a panic move to me. I mean moving it to money market accounts... it will take him 10 years to make up what he lost today. Then it will lock his money in for at least a month and up to years. Should have stuck with a balanced approach and rough it out. I guess he is just cutting his losses.
 

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Survivus most anythingus
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The jobs reports are going to continue to suck until good jobs come back and people start spending and saving money again. Right now, they have money for necessities and not a lot to spend on stuff they simply desire or to save a lot.

Until somebody grows a set of testicles and gets rid of illegal aliens and finds a way to bring jobs back to this country that PAY LIVING WAGES, well, here you go! Enjoy! :thumb:
 

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Jihaadi GoBOOM
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My humble opinion is we will see a downtrend for months, possibly back to the 2009 lows, before it turns. I bailed in May, as it was just getting "piled too steep", as my dad would say. Like I did in 2008, maybe I lose the last 15% up, but I don't care. This time I don't think I did. If I were still in, I'd sell every stock I had tomorrow and not even look back till we get a correction of at least 25% down from here. Buy the short term dips and rises at your risk, those who don't remember the past are going to get hurt...
 

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Start up the rotors
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My prediction... the jobs numbers will be "not as bad as feared", though still disappointing.
It's BS of course, and they'll quietly be revised in a couple weeks to reflect reality, but it has to be that way to allay market fear. :confused::taped:
 
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Discussion Starter · #9 ·
Dunno... seems like a panic move to me. I mean moving it to money market accounts... it will take him 10 years to make up what he lost today. Then it will lock his money in for at least a month and up to years. Should have stuck with a balanced approach and rough it out. I guess he is just cutting his losses.
I think my cowrker lost his a$$ in the 2008 crash, so he's pretty gun shy now. I remember him tellling me he hung in the market way too long.

He eventually moved back to the market and has recouped some of his losses.

But like many Americans, he doesn't fully trust the market any longer...
 

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The age old adage is to buy low & sell high. It's common sense. But the crux of the issue is that prices are never low when the world is bright, happy, and shiny. You've got to have long range vision. Twenty years from now, there's going to be a chunk of millionaires who are pointing at this moment when their lives changed.

...the alternative scenario is that everything goes completely to hell. In which case, I'll gladly trade some food for that gold coin. Either way is win-win.
 

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My 401k, is just started with my new company, so this is a good start because of the lower share cost. Unfortunately, my IRA, that has been a dog since the start, is even performing worst then normal. I'll just hold my nose and let it ride.
 

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Friday should be very interesting. What will the Hedge Fund managers do? It is my hope that the market will rebound. If not, I will hold my stocks and wait. If the stocks never come back what good will dollars be then anyway? As for now I will keep prepping. Good luck to us all.
 

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Si vis pacem, para bellum
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move his funds out of the stock market tomorrow into money market funds.

This, along with a bad jobs report, might result in a very ugly Black Friday...[/QUOTE]

Money Markets and funds are one of the reasons for yesterdays selloff,possibly insolvent, your buddy may have made the worst move he could have..imo
 

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The jobs reports are going to continue to suck until good jobs come back and people start spending and saving money again. Right now, they have money for necessities and not a lot to spend on stuff they simply desire or to save a lot.

Until somebody grows a set of testicles and gets rid of illegal aliens and finds a way to bring jobs back to this country that PAY LIVING WAGES, well, here you go! Enjoy! :thumb:
We could get rid of every single illegal here and there is no guarantee these jobs would be filled. We'd just have employers looking for workers. Remember that most Americans still feel the are to go good to do manual labor. Why do you think you need to know a second language to order a happy meal?
 

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I have coworker who is nearing retirement age. As typical of many people, he has no clue as to what is going on in the financial markets. And in spite of having parents who went through the Great Depression, he has no interest in any sort of prepping, as "the country was a lot different then, the govt won't allow that to happen these days."

So I see him after lunch, about 1:30 west coast time (after the markets closed). And I mention the 500+ drop in the DOW.

He gets a stricken look on his face (he has all his pending retirement in 401k funds, I believe) and says, "I have to call my advisor."

Not sure what he discussed, but he came back looking a bit relieved. And said although he suffered a loss today, his financial advisor told him he would move his funds out of the stock market tomorrow into money market funds.

Now, multiply this: if there are 79 million baby boomers, and let's say a third (a conservative estimate) have money in the stock market....

How many made similar calls as my coworker?

This, along with a bad jobs report, might result in a very ugly Black Friday...
Your co-worker should make a few more calls today.

Setting up appointments to interview new advisors.

ANYONE that close to retirement whose portfolio is invested in risk asset classes to the point that a correction would cause him/her to panic is getting VERY bad advice.

The last few pre-retirement years are for accumulation AND asset PRESERVATION .... not SPECULATION.

He needs to find a RETIREMENT advisor, NOT a FINANCIAL advisor. One who can then shift his portfolio to an income producer.
 

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The age old adage is to buy low & sell high. It's common sense. But the crux of the issue is that prices are never low when the world is bright, happy, and shiny. You've got to have long range vision. Twenty years from now, there's going to be a chunk of millionaires who are pointing at this moment when their lives changed.

...the alternative scenario is that everything goes completely to hell. In which case, I'll gladly trade some food for that gold coin. Either way is win-win.
The trouble with "buy low sell high" is that they never blow a horn at the bottom nor ring a bell at the top.

I prefer to go with the irrefutable logic of "you can never lose money taking a profit". The trouble that folks have is that they fail to rake off their profits after a great year or two.

Too easy to "let it ride".
 
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