What's going on: It's the one-year anniversary of Dow's peak

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Guysanto
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What's going on: It's the one-year anniversary of Dow's peak

Post by Guysanto » Thu Oct 09, 2008 2:23 pm

On October 9, 2007 the Dow Jones Industrial Average reached 14,165 points. Today, on the anniversary of that peak, the Dow fell under the 9,000 level for the first time since late August, 2003.

What's going on here?

From this day on, will anybody (who can manage keeping a job) be able to retire?

And if you do lose your job, what are your best options?

Do you believe that "better days are ahead"?

Are we headed into a global depression?

What can we do to keep our heads above water?

Your advice or word of wisdom?

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Guysanto
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Post by Guysanto » Thu Oct 09, 2008 8:07 pm

The Dow closed at 8,579... 40% off its value a year ago today.

There's a silver lining to this: Negative political ads will not stick. People are just worried about the bottom line. And for just cause.

Frantz
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Joined: Fri Dec 29, 2006 5:06 pm

Post by Frantz » Fri Oct 10, 2008 11:27 am

Guy, let me take a shot at some of your questions. I will be blunt and short;

'1- "What's going on here? '

It 's hell. Fear has spread and panic is gaining ground by the minutes. The Dow is already down to -384 at noon. The financial system, worldwide, is in turmoil.

2-"From this day on, will anybody (who can manage keeping a job) be able to retire? "

- This is not a good time to retire. Retirement accounts values are down considerably. This is the time to review your finances and make the hard choice that will keep you afloat i.e cutting down on some of your expenses.


3- "Do you believe that "better days are ahead"?

- Yes. But not in the short run. Therefore, decisions must be taken after careful evaluation of your situation. If you are in the market and willing to take risk, this is the right time to make some good investments. With stock prices at a record low level, there may be an opportunity to acquire some shares of sound companies.
You should look at your retirement accounts and inquire about your investments. If you own mutual funds, inquire about the make up of the fund. Was that fund invested in stocks only? if so, you may want to switch to a another fund that is better diversifed. Your financial adviser should be able to inform you. You should not liquidate and run at this time. You should keep on funding your retirement accounts.
Good luck!
frantz

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