Aug 8th, 2008
What the hell should I do with my money?
If I had to characterize the state of the market right now I would say its sort of like Gary Busey. A sort of unpredictable downward spiral that occasionally shows signs of its former self only to slip back into some sort of awkward state of existence. Luckily for us, unlike Busey, the market will recover, its only a matter of time. In the meantime it has left a lot of people asking what do with their money.
What not to do with your money
-Invest in massive amounts of penny stocks. I have a friend who invests $20 a month in Penny stocks. Though its amusing to own 20,000 shares of a stock, its not exactly a big investment plan for real investing.
-Put money into non-insured banks.
-Buy low end mortgaged backed securities. Here is an awesome graph I made that sums up my guess:
What to do with your money
Here is the easy part: keep investing. A diversified portfolio right now will make you more in the long run than buying at any other point. Why? Its cheaper. Absolutely positively do not jump ship. Jumping ship right now is basically akin to deciding to jump ship in the middle of the ocean.
I know Im beating a dead horse but for those you who continually are searching on google “401k losing money” rest assured, if you have your money in something decent in the long run you will be ok. In fact, you will be worse than ok, you will be excellent.
- 10 Comments
- Investing
lol busey awesome
Couldn’t agree more…buying 50 and 100 block shares of certain stocks right now; if everything recovers, we’ll look back at this mess as a fire sale. Great time to by real estate if you have the capital (30-40% down with good credit is just plain nuts).
Then again I bought Washington Mutual at what I thought would be their low point. I rank this purchase currently as somewhere between D’Oh! and D’uhhh….
Another thought…after surfing bankrate, I found a Money Market Account at 3.75% APY, compounded daily, credited monthly. No service fees, no minimum, but limited access like any other MMA.
unionfsb.com
Bad Jesse!! Now I’m overcome by a desire to have 20,000 shares of a stock just for the hell of it. Bad!!
I vote for “invest in Hank” - I have a great piece of oceanfront property in Arizona that I want you to look at…
I say sit tight, the key thing is that you put it in your first paragraph, it WILL come back. Keep putting $ in what you like, it’s cheap now, and if it’s strong, can only go one way…
Smart investing is important. Do you rush to the ATM and withdraw money regularly, make sure you allocate enough money for regular expenses.
Hi sorry I cannot help you because I don’t have any idea about this matter.
Now I’m overcome by a desire to have 20,000 shares of a stock just for the hell of it. Bad!
Invest in massive amounts of penny stocks. I have a friend who invests $20 a month in Penny stocks.
A diversified portfolio right now will make you more in the long run than buying at any other point. Why? Its cheaper. Absolutely positively do not jump ship. Jumping ship right now is basically akin to deciding to jump ship in the middle of the ocean.