[Vision2020] And the Saga Continues . . . (unfortunately)

Paul Rumelhart godshatter at yahoo.com
Mon Aug 8 15:51:39 PDT 2011


I hadn't thought about the first point.  That's a problem insomuch as no one tweaks those programs to allow AA+ TBill ratings for the short term.  Not that I think that will happen, but it seems an easy solution to what is really a political problem, as opposed to a purely financial one.

As for the second factor, what's the alternative?  Unless you are right on the brink of retirement, like in the next month or two, then I still think it's a bad move to sell now.  If you sell now and buy something that hasn't been hit as bad, then you are basically stepping into that new stock in order to get on it's normal growth curve.  The old stock, which used to be valued higher, should spring back to near it's original value if it wasn't already overvalued to begin with.  


I feel really bad for the people who are in that group that were planning on cashing out soon, but I don't know what can be done about it.

Paul



________________________________
From: Jay Borden <jborden at datawedge.com>
To: Paul Rumelhart <godshatter at yahoo.com>; Tom Hansen <thansen at moscow.com>
Cc: Moscow Vision 2020 <vision2020 at moscow.com>
Sent: Monday, August 8, 2011 12:32 PM
Subject: Re: [Vision2020] And the Saga Continues . . . (unfortunately)


Paul:

There are two large factors...

1)  auto selling of securities holdings that specify the portfolio must have a % of investments carrying a AAA rating (like tbills)

2)  investment horizon.  You and I have the luxury of time.  We can let our money sit.  Others on the fringe of retirement are seeing their nest eggs lie in ruins and are pulling out for salvage.... fearing the market wont recover again on their windows of time.

Jay

Sent via DROID... so ignore the typpos

-----Original message-----

From: Paul Rumelhart <godshatter at yahoo.com>
>To: Tom Hansen <thansen at moscow.com>
>Cc: Moscow Vision 2020 <vision2020 at moscow.com>
>Sent: Mon, Aug 8, 2011 19:17:14 GMT+00:00
>Subject: Re: [Vision2020] And the Saga Continues . . . (unfortunately)
>
>
>
>I don't understand this.  Really, what's changed that affects any
    given stocks fundamentals?  If I own a stock I bought prior to last
    week, what has fundamentally changed about that stock that I should
    start assuming it's not just going to climb it's way back up to
    where it was as soon as the panicked sheep have stopped slashing
    their own throats?  Unless I have reason to believe that my stock
    will plummet to zero, I would think that the last thing I should do
    now would be to sell.  On the other hand, if I had the money I'd buy
    lots of good, sound stocks that have fallen in value that someone
    else has sold out of some hazy "fear of the financial situation" and
    ride them  back up to where they were in a few weeks time when this
    whole stock market hysteria blows over.
>
>Paul
>
>On 08/08/2011 07:58 AM, Tom Hansen wrote: 
> 
>>The market as of 10:50 AM (New York Stock Exchange Time), today.
>> 
>>Thank you, Tea Party!
>> 
>>The DOW is down almost 1,200 points . . . SINCE TUESDAY!!!!!!!!!!!!!!
>> 
>>One can hardly imagine what to expect from the 12-member super congress panel in November . . .
>> 
>>Second verse same as the first, a little bit louder, a little bit worse.
>> 
>>Seeya round town, Moscow.
>> 
>>Tom Hansen
>>Moscow, Idaho
>> 
>> 
>> 
>>
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