So Far So Good

Well, I'm up 12 hundreths of a percent so far! :-) Seriously, the markets did drop on Friday, the S&P hit 666 and rallied in the afternoon to close barely positive. However... there is still another wave down to come and it may be where we get to 650 or possibly even below. In any case, that's when I'll put the rest of my retirement back in.

It's kind of funny, a friend of mine and I are emailing back and forth with links to articles that talk about "the other shoe to drop" and so far I think we have a dozen pair of shoes accounted for... commercial real estate, credit cards, reduced wages, etc, etc.

It really is a bit scary if you read it all. But sticking your head in the sand isn't a good choice either. Just be aware of whats going on and make wise decisions. Buy and hold is no longer the way to invest. You'll have to actively manage your money now and be willing to make changes, trades, swings. Otherwise you may see your investments go sideways at best.

The S&P is down over 50% from it's peak. That means you have to double your money to get back to break even. At 8% a year compounded, it'll take 11 years. I have news for you, we won't be averaging 8% a year for a while. I'll try to alert you to the swings so you can make money on the way up and not lose any on the way down. The waves are your friend. You won't hit things exactly at their peaks up or down, but even if you're close it'll save you some serious money.

Well, I have a ton of errands and tasks to get done today so let me get at 'em.