My Peeps

I just what to assure my readers that I will be blogging about library weirdness as soon as there is some library weirdness to blog about. Aside from Special Ed being a phenomenal pain in the ass lately, it seems that even the freakiest of freaks are obsessed with only two things… The economy and the election.

Seriously, people have been walking into the Library in a haze looking as if they just lost their life savings… To quote one of my favorite authors, “Don’t Panic!” Yes, the economy is in a bad way, but everything will be okay assuming you don’t need the cash right now. Seriously. History has demonstrated time and again that there is a reciprocal bull for every bear… And that means that the next bull is going to be INSANE! Normally, during the initial bull run the Market makes 80% of its value back.

So, if you’re not retiring in he next 12-24 months you have absolutely nothing to worry about. Remain calm and just ride out this bitch we’ve entered. If you yank the money from your stocks and/or funds you will never make the money back when the market rebounds… And it will rebound, it ALWAYS does.

Relax, have a drink and know that everything will be OK in the months and years ahead.

Advertisements

~ by Woeful on October 10, 2008.

11 Responses to “My Peeps”

  1. I think a major part of the problem in the markets is the PANIC… fuelled by the media. The headlines are packed with words like meltdown, crisis, depression, ruin, disaster, catastrophe and failure. It’s hard to gain perspective when this is all one hears and reads. I didn’t go to social event last night because I couldn’t stomach more talk of the economy and the election. Yes, we are having one here in Canada too (on Tuesday Oct. 14th). Oh well, it’s Canadian Thanksgiving this weekend so I am going to concentrate on my blessings. Hang in there, Woeful.

    K. from Canada

  2. So far, my broker has successfully talked me out of bailing out but I have to admit that I started to feel pretty stupid as the week progressed. Why should I be the only one holing? Well, hold I shall and I’ll keep my fingers crossed.

  3. The election is trouble for us, too.

    We have a possibly bipolar patron who, a few months back, was rabidly consumed with support for one of the Presidential candidates. Now he’s flipped 360 degrees and hates the guy.

    And of course we have the steady stream of people who believe the library is part of some conspiracy to repress their side of the debate, although the staff works hard to purchase a balanced number of partisan political books…

  4. … and I thought the library was a haven of peace..

  5. I bailed. I’ll admit it. I have PLENTY of time until retirement, but I did it anyway. I was looking to ride the roller coaster of finanical terror, but my husband, mother and the news scared the livin’ be-jesus out of me. Sorry economy…

  6. Ack! bailed into what? Bonds are down as well although not nearly as much as stocks… And money market funds began breaking the buck about two weeks ago. The Government stepped in and guaranteed a dollar in a dollar out but any insurance like FDIC only guarantees you get your money back. It does not guarantee that you get equal value for your money, meaning that if the Government has to pay everyone back because of massive bank failures the Treasury can print more money… Making inflation run rampant and the dollar worthless in the process. You see, raising the $250k ceiling on FDIC deposits was really only a political ploy to stave panic. It is something that looks and sounds good on the surface but has no real substance to it when held under a microscope.

    I’ve been throwing as much money as possible incrementally into my funds for the benefit of dollar cost averaging, especially emerging markets which are now down over 52% YTD. When I began buying them at the beginning of August they were already down about 17% at $27+ per share, currently they are trading at under $16 per share. It’s like a wound that keeps bleeding no matter how well you dress it but I have faith in the Market because history clearly shows that it always goes up over the long-term.

    In fact, today it looks like it might be one of the best single days ever for emerging markets. I’m glad to write that America Movil, China Mobil, and Petroleo Brasileiro are kicking some serious ass today for the first time in weeks! Although I’m taking a beating in Lloyds Bank like crazy all because of this brilliant idea they have to buy HBOS which is an English bank that’s in serious trouble. Lloyds was solid… Until they decided to take on HBOS’ debt. I only hope that in the long-term the merger pays off… And it probably will but it’s going to take years (5-10 I’m guessing).

    I’m really worrying more about my father than anything. He just recently retired and ever day for the last two weeks I’ve seen his overall balance fall by about $1,000 to $1,500 every single day. I’ve seen the same thing with mine as well… But I have time to recover. I’m trying desperately to rollover his money into something safer but that still has enough stock exposure to rebound when the Market does (about 65% bonds 35% stocks) as he doesn’t need any of this money for another 5 years or so. I’m a big fan of Vanguard funds as they have minimal management expenses and these expenses eat away at your overall gains like cancer.

    Anyway, you have to do what you have to do based on your own risk tolerance for volatility. I can stomach quite a bit only because history and every expert out there agrees that crashes happen periodically, and then the Market recovers and actually excels. You can’t time the Market. In fact, I wish I had more money to dump into it right now. I’d buy GE, Coke, Kraft, AT&T, Pfizer, and more of some of the companies I already own like Lloyds, and Gerdau Ameristeel. These companies are rock solid. The only reason their share prices have tanked is because of PANIC. Sigh…

    Incidentally, we have a patron who pulled every cent out of the Market and just about everything else about eight months ago and dumped it all into gold. Gold has been about the only thing to hold steady through this whole mess. Although it’s down from its high a few months ago it is still doing very well. His gut told him to do what he did, but that’s just dumb luck. His gut is telling him right now to hold out to buy stocks again because he thinks the Dow will bottom out at 6000. I think he’s wrong. I think the Dow might hit 7500 but no lower and I think it’s going to rebound very quickly. Since nobody can time the Market he’s going to lose. He was lucky getting out, but he’s not going to be so lucky getting back in, nobody is that lucky. Now is the time to buy. Dollar cost average into the bottom and up from there. That’s the experts advice based on historical analysis.

    When people are fearful it behooves investors to be greedy and to be fearful when people are greedy. People are very greedy with gold right now… And even more fearful of stocks. Patron X is going to pay for his hubris by selling his gold on the downward slope and buying stocks once they rebound… Which is not the way to invest.

    I however, have every intention of buying Krugerrands the next time gold tanks, and it will tank because gold is now the element in a bubble that’s just waiting to pop!

  7. You’re lucky I just (FINALLY!) read Hitchhiker’s Guide to the Galaxy, or that quote would have gone right over my head. 🙂

    And now, Mr. Librarian, as a padawan learner/wannabe librarian, I have to ask… have you read the whole Hitchhiker’s Guide series? If so, is it worth it? Which is your favorite? Does Adams have any other books outside of that series that you like? etc etc!

  8. Hah! I’ve read them all and they are all worth the read. My favorite is the original. I would also highly recommend: Dune, I, Robot, Foundation, and anything by Philip K. Dick! If you’re after a more substantial read try Stephenson’s Cryptonomicon you won’t be disappointed.

  9. The library patrons just look downright normal compared to some of the election stuff.

  10. Hi Max! Did you catch the expressions on McCain’s face all night long as he was listening to Obama’s answers? LOL… I hope Obama wins this for all our sakes. If not I’m moving to Iceland. Since their economy has completely tanked and their currency dropped 75% in one day last week I think I could live like a king if I cashed everything in and rolled the dice. 😉

  11. I just won’t even watch the debates. I know the platforms and I know who I am voting for and the pony shows just wipe me out especially the joke appraisals after oog.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

 
%d bloggers like this: