OverSoft

You've gotta understand that investing in the stockmarket is always risky.
But if you want to go long term and get a good return, the next couple of weeks are THE time to get in the market.
Getting strong long term call options (for example, mine end in december 2012) on major indices (like the Dow, Nasdaq or local indices like the Euronext indices in Europe) are pretty sure to pay off quite big.

In the next couple of weeks the bottom of those indices will become apparant (it's quite bottoming out now, but don't pin me on that one: bad news always comes unannounced), so this is a good moment to get in the market.

If you want to be a more active trader, getting small amounts of penny stocks (especially financials in Europe, which have dropped a BUNCH the last couple of weeks) are fun to play with.
But beware! They could go either way, one example is Fortis (a Dutch/Belgian bank) which went down 10% yesterday and up again 11% today.

I've currently got just 2(00) call options (Dec '12 - 120C) on the Euronext AEX (Amsterdam stock market), but those are high value options (120 when the index is 250, so a difference of 130) which are quite nicely priced (you usually pay €10,- less per option than the actual options value, so if the index is 240 and the optionprice is 120, the value is 240-120=€120,- per option, but you actually pay €110,-). The AEX is bottoming out right now, so i'll just let them roll for the next couple of weeks and see what happens. (The end date so far in the future is so nice, you can trade at any moment, but the risk that the index won't be above the current value for the next 3 year is really small)


BTW: i'm not guaranteeing anything here!

kscarrol

I doubt it!!

rogerj

Phil, I wish I understood the markets like OVERSOFT... it takes a lot of time and research.

I have a good friend who earned 40K/yr and is worth millions. He made all his $$ in the market. He was positioned in the internet/IT companies in the early 90's and made a killing. He sold at the top and bought a couple houses...meanwhile many rode these stocks to the bottom and lost confidence in the market... so they pulled $$ out of the market and started investing in real estate. He was already sitting there... so real estate started going crazy... he sold the houses and eventually got back in to the market in energy stocks.... then oil/energy went crazy... well you get my point.

He eventually started "writing options" and making commissions on every option purchased that he wrote.. He said he would never buy/sell again because writing was too profitable and less risky. When people were bullish, he would write put options... and when people were bearish, he would write call options...

He has 2 acres in Jupiter with a Custom built home and Guest house. HE IS OUT OF THE MARKET COMPLETELY and working as a contractor. He claims that there is too much corruption in the market currently to safely be involved. He claims that the "bailout" stuff has allowed investment firms to reconstruct themselves as banks and receive tort $$. Large hedge funds have so much leverage that they can manipulate sectors and prices. Thus, it is very hard for the individual investor to be successful. Nowadays, you have to be a trader...not an investor. OVERSOFT is a trader. Wish I understood what he does.

So to answer your original question. I am down 50% across the board... 401k, mutual funds, and individual stock.

rogerj

This may be a little off topic... but here are a few other programs that are flawed... The Better Business Bureau (BB requires certain business standards to be met in order to become a member. These standards are supposed to add extra protection to the consumer, but in addition to meeting these standards, an annual fee has to be paid to the BBB. So if you a file a complaint with the BBB against one of their members, they risk losing that companiy's annual membership fee if they investigate and find wrongdoing. Thus, there is a strong incentive to ignore or justify any complaints. The BBB is a USELESS organization and a false sense of protection.

FDA works the same way. Companies must pay the FDA to research and approve medications. If the FDA starts to deny drugs, less applications will be submitted, less income to the FDA, and government workers will lose their jobs. So... generously approve applications, more applications, more government jobs... AND more dangerous drugs on the market!

MiamiPhill

+1 down ~40-45% myself ......so I'm hoping time will help me out.

Ricracing

Sorry to hear about the problems most people have.

I'm up only about 10% in two years, but I'm so happy that it's up,
even if only 5% a year, not down.
But I'm very, very cautious and read a lot about the finance markets.

Even my apartment is only down about 3% (and its payed for).

The car is down at least 15% after a year, but that's no news.
But the 520d is very attractive car on the used car market over here,
and therefore it will hold its price much better than most cars.

The price of my former 525i has come down a lot, do to the new car tax laws over here
preferring low pollution cars.

Just wait for these car pollution tax laws all around the world.

OverSoft

I've bought mine of a dealer, so the minute you drive off the lot, it's worth at least 15% less than what you've payed for it.
Every car has that problem

Ricracing

Me too, brand new. Maybe minus 20% is closer
But I have enjoyed it every day.

Money is nothing if you don't enjoy it.

ValE60

Hi Phill,
Once again, great find! This was a very powerful video that EVERY American should watch, most people out there have no idea how this entire crisis started. I have always followed closely because of my job so I need to be on top of all that including specualtion...my personal quote "We should thank President Bush and his adminstration that encouraged the de-regulation" all running loose selling loans and securities over and over again...all this could have been avoided by the government if they were to closely analyze the housing bubble and act accordingly!

rogerj

Time is definitely your friend. As nervous as I am and as bleak as the immediate future looks, I have actually increased my contributions. Assuming that my holdings will rebound, and I wouldn't still be in them if I didn't think they would... I figure lowering my avg cost by adding to them at or near the bottom will speed up my recovery.