This is what concerns me. I am no expert in finances, had some google stock and mutual funds and just sold them all off today because I was very scared. Some of you financial wizards may call me an idiot for selling, that I panicked, and maybe you are right. Oh well. This is why I sold though - I have been reading about the crash of the great depression and I see some similarities. I copied pasted this from Wikipedia - http://en.wikipedia.org/wiki/Wall_Street_Crash_of_1929 ...
� fell sharply for a month, losing 17% of its value on the initial leg down. Prices then recovered more than half of the losses over the next week, only to turn back down immediately afterwards�At 1 p.m. on Friday, October 25, several leading Wall Street bankers met to find a solution to the panic and chaos on the trading floor. �They chose Richard Whitney, vice president of the Exchange, to act on their behalf. With the bankers' financial resources behind him, Whitney placed a bid to purchase a large block of shares in U.S. Steel at a price well above the current market�
� events were dramatized by newspapers.. On Monday, October 28, more investors decided to get out of the market, and the slide continued with a then record loss in the Dow for the day of 13%. The next day, "Black Tuesday", October 29, 1929, 16.4 million shares were traded, a number that broke the record set five days earlier and that was not exceeded until 1969� William C. Durant joined with members of the Rockefeller family and other financial giants to buy large quantities of stocks in order to demonstrate to the public their confidence in the market, but their efforts failed to stop the slide. The DJIA lost another 12% that day� An interim bottom occurred on November 13, with the Dow closing at 198.6 that day. The market recovered for several months from that point, with the Dow reaching a secondary peak at 294.0 in April 1930.
The reason why I did not stay in the market and sold today (and yes, I was panicked, upset, sad when I sold � I got into funds about three years ago and google 2 months ago - today I said goodbye), was because when I heard Friday that Bush wants to throw $800.00 checks to every taxpayer in the US, expecting us to all go out to buy wide screen tv�s from china or computers from Dell, he expects this will fix the problem with the stock market and the possible recession. I also saw the fed unexpectedly lower interest rates � of a percent today, not during their regular meeting, it just smelled (to me anyway a dumb, average investor) like the people in Washington are panicking and think that the economy is in very bad shape, much worse than they have been telling us. Bad enough to drop money out of helicopters so we will buy stuff.
I thought it compared to what Richard Whitney did above. Buy large blocks of shares of blue chips well above the then current market prices. I was thinking, things must be really bad if they go to those extremes so should I be safe and sell and tuck my money away into the bank (or mattress haha). It appears that the 800 bucks did the trick � stocks were way down today and then went up - I followed all day the market and did not place my sell order until within a half hour of closing, I kept wondering all day � is this only a temporary fix that will prop up the market for a few days and then crash again? I did not want to take the chance so I sold.
I also listened to Bush Friday and did not appear to me as type of person who was very calming, like Roosevelt was with his �nothing to fear but fear itself speech�. He sounded like a jerk to me. I therefore decided that the folks in Washington do not know what�s going on and that their knee jerk reaction was to panic and to throw money at the problem instead of sitting down and trying to figure out what to do to fix the economy and what to say to the American people. Did not seem as if there was a very good speech prepared. Continued...
you are a passive investor. that's ok sometimes, but not now. i bought goog at 527 today, lots... i will sell soon. take my advice... enjoy the 5-6% roi your brokers offer and stay safe... goog will not crash... hell, it already has and is on the way up. you are smart to stay out... less valium req'd...
but it is fun when you call things corrctly, as long as you exit w/ a profit.. greed is what kills, esp. combined w/ ignorance/ naivete...
That's why all passive investors should be selling their google stock tomorrow. Because if it was a blue chip it would be safe and there would be no reason to sell it.
If this stock is not safe enough to hold on to for a few days or weeks then watch out all you retirees and 401 K investors, protect your nest eggs and get out of google asap.
If the stock was really going up then there would be no reason to sell, but who knows if it will go up or down? It swung ten percent today. heavy speculators.
Trust me everyone! Take advantage of any rally and sell into strength! I've seen these sharp moves up in a bear market and it may last another day or two but we haven't seen capatulation yet!
trouble is in this uncertain time, any kind of professional advice or analysis from the "experts" is completely un predictible. I would have to see at least a three month stabilization of the markets without these crazy swings and some good news out of washington for a change without hearing these blabbering politicians pulling out their dirty campaign tricks, before I jump back in the market.
This is a very scary market.
It can drop 1,000 points just like that. I am very confident that U.S. is heading for Depression.
I lost a lot in the past month, but sold it all. Now I sit on the sidelines and watch the massacre!!
The US has a history of gold confiscation:
The Gold Confiscation Of April 5, 1933
From: President of the United States Franklin Delano Roosevelt
To: The United States Congress
Dated: 5 April, 1933
Presidential Executive Order 6102
Forbidding the Hoarding of Gold Coin, Gold Bullion and Gold Certificates By virtue of the authority vested in me by Section 5(b) of the Act of October 6, 1917, as amended by Section 2 of the Act of March 9, 1933, entitled
Section 2. All persons are hereby required to deliver on or before May 1, 1933, to a Federal Reserve bank or a branch or agency thereof or to any member bank of the Federal Reserve System all gold coin, gold bullion, and gold certificates now owned by them or coming into their ownership on or before April 28, 1933, except the following:
All I can say lamb is that I was feeling pretty bad all last night for selling google and sad about my loss and kept wondering if I did the right thing. Today I guess I don't feel so bad. I feel very sad though for people who got into google and so many other stocks recently and are now selling them today at big loss. I hope things improve soon.
Of course if the stock goes way back up tomorrow I will be kicking myself but at what expense to my mental health today while waiting to see it go up. It's not worth the stress I want to be healthy.
That is my personal opinion regarding safe deposits. I'm trying to minimize the middlemen right now.
Yes safeguards were to be put in place to avoid a depression, but will they work. The FED has no one to account to with regards to their actions. The 3 branches in gov't have to have accountability, but not the FED. The FED can not continue to print money without consequences. The more money in circulation the higher inflation will be.
I feel sorry for Bernake...big Al dumped this on him.
I've been studying this since I started to invest in gold back in 2002. My friends thought I was nuts...so far I've done pretty well.
U may be right. What scares me though is that it can drop so hugely so quickly. If it can drop that fast and so much, how does the average joe know for sure if the market is really undervalued? Or overvalued?
I mean it's all fine and good that all the experts can bring out their charts and graphs to try to prove a company is really worth the stock price, but how does anyone really know for sure unless you work for the company? And even if you work for the company you really have no way of knowing if the stock is worth what it's selling for.
I think there needs to be a great increase in the rules and regulations before I will feel safe to go in again. Like only allowing people to sell their stock on one day a month, tying the stock value directly to the companies assets and earnings and have the SEC set the price for the stock and then get a dividend check maybe once a quarter.