DU Investors: I can't think of a single hiding place anymore

[Mike 03]

Although it seemed like a good idea, the infrastructure, electrical grid, heavy machinery and clean-coal stocks have been performing no better than any other sector, and in some cases they have performed even worse. It looks like the market has already factored the effect of the stimulus package on these sectors and, in any case, is not overly impressed.

Gold and mining are so-so. Energy will probably recover at some point, but I can't see that happening in the next year or so. Healthcare was one sector I thought would do well, but it has had ten or eleven days down in the past two weeks.

I'm bewildered about where to hide. Overseas is out of the question. Asia is crashing. Eastern Europe is tanking. High grade bonds? Cash? Are certificates of deposit worth a crap at this point? TIPS? Some foreign currency I'm not thinking of?

I am inclined to throw in the towel at this point.


ON EDIT: Hats off to the DUers who predicted we would break lower than 7,000. You were right!

[ananda]

1. Throw your money in that towel..

.. and put it in the mattress.

Well.. that's all I could think of.

[CountAllVotes]

2. cash is king right now

best to keep it liquid.

I'd suggest a money market acct. with your bank or a credit union.

I'd avoid online accts. for the time being ...

Enough.

:kick:

[Coyote_Bandit]

3. I'm afraid it is going to get uglier

Earnings estimates are suspect.

It is still a consumer driven economy and consumers are fearful of losing their jobs and their buying power. Credit remains tight.

We can't make anything much so all we have to offer is services.

Jobs are not coming back soon and litle is being done to spur new business and small business.

Lat year I said the Dow would get down to 6800. Clearly it will fall further. I hope I am wrong when I say I wold not be surprised to see the 4000 level before we see a recovery.

[Motown_Johnny]

4. Aren't Euros constantly outperforming American Dollars? (long term)

[RedEarth]

5. I'm looking CD's from a credit union for some of my cash

They seem to offer a little higher rate than bank cds.

[dcindian]

6. Out at 11,000 back in at 8,000

I should have listen to the folks saying 6,000 might be bottom.

[Warpy]

7. It's a little too late now

but don't feel bad. Most of the people who tried to preserve their assets will later discover they've outsmarted themselves.

This is worldwide and it is going to get much, much worse over the next two years.

You'll have plenty of company.

We won't know what the right thing to do is until this mess is over and we all count up what's left.

[ecstatic]

8. it'll be back. don't worry

I still think there's a lot of people just waiting to throw their chips in, but not until all the skittish people are done!

[county worker]

10. What about the money people lost. That's not coming back.

Unless they invest what they have left and we get 14,000 again.

[spanone]

12. if you're in stocks..you still own the same stocks...same amount...their worth will come back

[county worker]

9. Well in 2007 if you took $100,000 and put it in a coffee can and buried it in the back yard

today you would have $100,000 in the can.

In 2007 if you put $100,000 in the stock market you would have $50,000.

In 2007 if you put $100,000 into a new car you would have a pretty expensive car worth more than $50,000.

[elocs]

17. Well, last year I had a Roth IRA and a 401k and I didn't lose money for the year in either.

My Roth had been mostly in energy funds, but when I saw the price of oil plummeting I converted to Treasury Bonds. I lost some money, but I had made so much earlier in the year that I made money on the year.

I did the same with my 401k. I did not feel obligated or compelled to watch my investments lose half their value. I retreated to a more conservative position (since I was allowed to move my money around) and although I did lose some money I made money overall for the entire year.

I am not a financial genius, but neither am I a victim. I am responsible for my money. I did not make a lot in 2008, but I did not lose money either.

[spanone]

11. a box of money buried in the back yard

[mmonk]

13. There's nowhere to hide in a global meltdown.

Wait it out (don't sell at a huge loss).

[TXRAT2]

14. My best investment has been guns.

I've been a collector for many years, never lost money yet! Some of my Colt's have more than tripled in value.

[SoCalDem]

15. Bank cds is what we prefer now.. at least the principle is secure

we lost 26K in the 101-k (because my husband was TOO BUSY to make one stinking phone call between September and january :grr: )

lost anout $250K of vapor-equity in the house..

[OwnedByFerrets]

16. I have 15 yrs for it to come back. If its not back by then,

we will have had much bigger problems than my little 401k not producing.

[Thickasabrick]

18. Some guy on a radio show today predicted it will go down to 3800

then a temporary rally to 9 or 10 before it drops again for the long haul. He said that when it gets to 9 - get out. I'm sorry I didn't get the guys name - has a radio show, went to Harvard and a economist - all I know.