Originally Posted by Laszlo
It's cool. They're doing their best to pump up the economy and these days and they'll probably recover it. But I must admit, these are some scary times. The massive Asia and EU sell-off we experienced over the weekend was due to panic selling and market corrections which was expected for a while now. I hope it doesn't get worse and I'm sure we'll never see unemployment reach 30%. But 10% could be realistic. These are also great times to get bargains from housing to stocks. Take advantage of it.
It's easier said than done...I used to remember in my grad days when they likened the Fidelity Magellan fund to a supertanker, very hard to manuever. Sometimes I chuckle when I used to see the (where are they now?) I lease because I invest the cash flow and make more money posts. For example, I've been riding Bank of America down from $50. It reached around $54 while I've held it, my lowest purchases were around $42. Why wasn't I buying Tue. at an intraday $33? Because nobody wants to catch a falling knife. Why not have ridden the 10% pop the last two days in a boring, dividend stock like BAC?
Ditto for real estate. In a way what I'm saying is if you have any real money, it would have been going in all the while and one cannot exactly take advantage of Tue. or Wed. by going all-in like a poker game. You bought a house last week and locked, you're totally burned today when 30 yr. is less than 5.5% with zero points. Timing in life is heavily dependent on luck. That's why I've always said a car is a total waste of money, pure luxury, and to be enjoyed. That's why I'm ok with an entry-level BMW. I always find the "what's your next car after the 3," "I'm getting an Alpina B7 or a CL 6x AMG or maybe the Veyron next or 599GTB" threads!