The Dow Jones Index Closed @ -504.48 Today

Today was the worst day on Wall Street since 9/11. I sincerely hope at least some of you guys took advantage of this opportunity to clean up on the misfortune of others? Sadly, my limit order @ $6.00 per share for On Semiconductor didn’t pan out. But I did manage to get a bunch of Vanguard Emerging Markets Stock Index Fund shares for $22.06 each! This is -33.96% down from the first of the year. A story that ran in Bloomberg today made me feel good by validating my decision to buy into The Emerging Markets Index Fund about a month ago. Analysts predict that there will be a 20% bounce very soon since the market is in a panic yet many of the companies represented are raking in record profits. I consider myself very lucky as my portfolio is only about 5% down when the S&P is down about 15% and, ironically, that’s only because of some modifications I made recently to diversify my holdings.

One of my coworker today told me that her best friend has lost $25k year to date and is pulling ALL of her money from the market tomorrow. I stressed that this is a huge mistake, but it’s her decision to make. Apparently the woman is in her 80s and she feels that she doesn’t have time to wait what I estimate to be 15-18 months for the market to rebound. This may be so, but unless she thinks she’s going to die within the year this is foolish. I mean, if you think you’re going to check out soon you can pull a Leaving Las Vegas and party like it’s 1999! Otherwise you hunker down and deal with it because of the inevitable bounce that ensues… I just went through this with my father as I manage his retirement savings. The old man is freaking out but he’s willing to take my advice.

In other news, there is NO news @ the Library. There are some business related things making me even more woeful, but not our clientele. Stay tuned!

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~ by Woeful on September 15, 2008.

4 Responses to “The Dow Jones Index Closed @ -504.48 Today”

  1. I actually scored the Emerging Markets Stock Index Fund at $21.70 – Booyah!!

  2. Well, it tanked an additional 450 today. Despite that, I still think that sitting tight is the way to go. The company I work for might be bought by Wachovia. God, I hope not.

  3. Yeah, it’s definitely one of the ugliest Bears ever. Historically speaking it doesn’t make any sense whatsoever to bail out… The only time this would be advisable is if you know that you will need the money within the next year. When there’s blood in the streets it’s time to buy!

    I wish I had more liquid cash, I would dump money in like mad… BTW, the most messed-up thing about my portfolio is that my best performing asset is a REIT. That’s right, my best performing asset is a mortgage investment company… WTF!? How does that even make any sense in this time of mortgage meltdowns that brought down the likes of Lehman, AIG, etc… Bizarre!

  4. OHH Some very interesting and insightful thoughts. I like this.

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