Please Keep The Markets Falling
- 5 Comment
I’ll probably receive a bunch of dirty looks from the folks who just lost a substantial part of their nest egg. Oh well, it is just my opinion on the failing economy.
Why am I hoping for this?
During the small recession in 2004, I didn’t know anything about the stock market, investing, or the economy. I was in high school and good grades were more important than money. Now in college, I’ve learned and observed the way the financial markets work and I’m anxious to invest. The falling markets with make it cheaper for me to get in.
- I’ve got squat. Except for a few thousand dollars, I have nothing that will benefit from a bull market. Sure, some of the money is stored in my savings account but it is there just to negate the effects of inflation.
- I’m young. As all the investing and personal finance advisors have said, being young allows me to be more aggressive and it gives me more time for my investments to grow. Preparing to invest after this bear market increase my chances for a greater return.
Wouldn’t my parent also be hit by the unfriendly markets?
My parents opened a Roth IRA and a brokerage account with $14,000 right before the stock market drop in 2003. So, their portfolio has been in negative territory since then and was just starting to even up over the past 5 years. And now, like everyone else, it is taking a big hit once again. Compared to many people out there, they’ve invested close to nothing. Most of their money was put towards our 3-family house. The bad experiences of 2003 have instilled fear of investing and that’s why they have so little invested and little to lose.
Isn’t this considered timing the market bottom (which is hard for me to do)?
Sure, despite being a rookie, it doesn’t mean I can’t do it. It doesn’t even mean I have to get it right! Even if I begin investing somewhere close to the bottom, whether it is before or after, I’m still heading for a great start. The key point is that I’m getting in cheap.
What happens if my wish comes true?
Well, my Roth IRA has been open for a while and I’ve got a little more than $1000 waiting to be invested in a mutual fund. I’m looking to put the money into one of three places: Dodge & Cox Stock (DODGX), Dodge & Cox Foreign International Stock (DODFX), or Marsico 21st Century (MXXIX).
Photo credit: samlustgarten
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5 Comments on this post
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Kevin Wright said:
I think this is a great time to start getting in the market. In four months, I’ll be able to start putting money in my 401k plan again since I switched jobs. I am excited about this.
October 16th, 2008 at 10:52 am -
Sabrina said:
This is a great time to invest especially since you’re so young. I’ve heard really good things about Dodge & Cox funds. Good luck!
October 16th, 2008 at 12:29 pm -
Dr. T said:
I agree, you will benefit greatly but ONLY if you ACT. I remember thinking back when we had our last large drop to about 7000 that I should have taken some of my money from my student loans and invested it.
I didn’t and thus I didn’t experience the great ride that many people had had over the past 5 years.
But even if I had invested I don’t know If I would have been smart enough to know when to get out before the recent turmoil.
Getting in now is an easy decision to make, but don’t forget that you will need to make an equally important decision of when to get out.
Dr. T
October 17th, 2008 at 8:41 pm -
Simon said:
Wow, I’m glad to see other people who agree with me and are thinking the same way.
October 19th, 2008 at 10:52 pm -
Code4Gold said:
I’m only interested in real estate and gold these days. The stock market is far too volatile for individual investors but if you’re daytrading with $500K or more, you could really make some quick daily profits in this current market.
October 19th, 2008 at 11:01 pm
