Even before I started this blog, I couldn't believe how fast things were changing. The stock market was, and still is, bouncing around like a loose lacrosse ball. Down twice, up once, and vice versa. In all likelihood, it isn't you going in and selling or buying in such quantity to cause the market to change direction. I learned a long time ago to stay the h*** out of the market. Why? Because you as an individual do not have a chance of beating what is happening. And, because of hedge funds. But there is a way to get a handle on it.
Ever hear of buy low, sell never? Well, consider this. Dollar cost average with a few bucks, as in a 401(k) plan, and at the same time set aside a few bucks for future investment. THEN, when the market tanks as it's doing now, you can add your nest egg a little at a time. Are you a timer? Wait until the last hour of the day to see which way the hedge funds are driving the market. If it's down, get in. If it's up, eh, wait. This suggestion will work mostly when the market is quite volatile, and people that can't tell the difference between a balance sheet and a spread sheet should stick with Index funds.
When you see the market rising steadily month after month, you may want to set some stops. That is, when the market suddenly starts heading south, you want those stops to come into play and get you out of the market.
Other changes. Boy, there isn't anything you can name that isn't going to change in the next two years. Retirement plans, the dollar, taxes, employment, health care, foreign relations, Congress, environment, vehicles, world peace, talk radio and more. And much of it will not be good. Ooops, sorry. Yeah, I said, "Not good."
Even the experts on commodities, stock and currencies are seeing their former recommendations going in directions they didn't expect. The dollar is strong now, but it is forecast to be going into the toilet in the not too distant future. Got $10,000 to spare? Look at Everbank.com. You can invest in foreign currencies in a few different ways. Travellers Checks? They aren't much good for traveling, unless you can find an American Express office to cash them in. You will also likely have to declare the amount of money you are coming and going with, because there are limits. The U.S. isn't as free as it used to be, and it's likely to get worse.
Some time ago, there was a recommendation to buy CD's in Iceland. Whoa! I almost did, and if I had, my investment would be worthless today. I was told to buy gold when it was at its $1,200 spot price. By the way, if you can find a place to buy gold at the spot price, tell me, please. Silver, too. There is always a premium to pay.
Want an easy way to check on the financial markets? Yahoo! has a wide variety of ways to check up on them. You'll need to sign up for a regular email account, then you can click on "My Yahoo!" and start looking. Currency exchange, too!
Oil. Oh, yeah, it's down now. Guess who has a hedge fund? Ever hear of Mr. T. Boone? Yeah, that fella that is promoting windmills and natural gas. I have a hunch Mr. T. Boone and his hedge fund helped drive up the price of oil to $140. Now that the price has come down, have you noticed how Mr. T. Boone is giving away millions of dollars for various causes? And guess who is predicting oil will rise to $200 in the near future? Mr. T. Boone. What a guy. He predicted $150 oil, and he almost got it.
401(k)'s. Some companies are thinking of eliminating their contributions to match the funds of their employees. It's getting tough out there. And can you believe this? The employees are bitching. Wow! What a country? Perhaps they would rather lose their jobs in lieu of the cut back on the 401(k) contribution.
The Roth IRA. Will it be around in two years in its present form? It's anybody's guess. There is talk of massive changes to the 401(k) and IRA programs. Democrat members of Congress are grousing over how much tax money is being forfeited due to these programs.
While all of this is going on, what can you do? For one, hang on to your job as long as possible. Don't even think of quiting, unless you have something else that is rock solid. Layoff? Ugh. Over 50 and no job? Ugly. No matter your age, you can see age discrimination flourishes in this equal opportunity country. Where? Check out the AARP site for discussions on money and employment. For two, look for a business you can do. It doesn't have to be fancy. It doesn't have to be a brick and mortar business. It also shouldn't require you to second mortgage your home to get started. The one consideration should be, "Does this make sense?"
And finally, newspapers. They are shrinking. They are losing advertisers. They are left leaning leaflets for bird droppings. What they don't realize is that they are printing articles that highlight their eventual demise, but the editorial boards don't see it. While they continue to exist, watch for the changes. Watch for them in the internet news areas of Yahoo!, MSN, Comcast and more.
