Starting to get a little spooked about this stock market.

[Atman]

Been there done that. I've more than made up for everything I lost when the last bubble burst, but I'm no savvy investor -- I just give my money to some "expert" and let him spread it around according to my wishes (and his recommendations).

Talk me off the ledge, oh savvy investors. I'm thinking of just taking my profits and leaving the original investment. Thoughts?

[L0oniX]

1. Hopefully they will lay off more people so profits go up and stock holders will stay happy.

[librechik]

2. It's not a really good crash unless they build the bubble higher than the WTC.

NOTHING has been done to curb the speculation and gambling that is about to look around and see itself hanging out over the cliff too far to run back, Yosemite Sam.

[Johonny]

3. Either the rest of the economic figures will catch up with the stock market or

the market will catch back up with those figures. I'm more worried after the mid-terms when the presidential election coverage kicks off for 2016. Much like Christmas the insane presidential politics seems to get earlier and more negative each year. The last two changes in the oval office brought bad news to the economy...

[NoOneMan]

4. Id sell now

I already did and lost out on some money actually, so you know, its all gambling. Eventually there is going to be a major sell off. Dont be standing in the cold. When it drops significantly and everyone is running, buy back in.

[Atman]

10. That's the thing...I'm ahead now...walk away from the table and cash out!

I can leave my original bet on the table, and just take the winnings. But even those "original winnings" represent the claw-back from the beating I took during the last crash. It would be so much easier if I was just a 1%-er and losing millions isn't even noticed by anyone but my accountant.

[NoOneMan]

12. "I can leave my original bet on the table"

Yeah, but you might be losing opportunity. Again, its all gambling. I'd guess though with QE tapering, and an inflated market, a full 1000 to 1500 drop is not unrealistic (the market isn't realistic in the first place, so whatever happens in fiction land is the way it is). If you sideline it all until after the drop you can make significant gains compared to just going a few steps forward and back.

[WinkyDink]

14. Taxes.

[Atman]

18. Thanks to the Bushies, capital gains taxes are pretty low.

Compared to the debt I can pay off by taking the profits, I'd come out ahead. Way ahead.

[Sgent]

21. If you have debt

other than a home loan, and the money is in a taxable (not IRA) account, then I'd cash 'em out and pay off the debt.

[lasttrip]

23. I agree and actually still make some money

by saving interest on the debt.

[Warpy]

5. Think about where you're going to put those profits

and compare what they'd earn in interest (bupkus) with what they're paying in dividends (a little better than bupkus).

You might want to consider an indexed fund. Your nest egg would rise and fall with inflation or deflation. There are no micromanagers charging hefty fees. Your purchasing power remains unchanged no matter what the economy does.

My problem is that I inherited mine from my dad and some of the legacy stocks he bought in the 40s and 50s are paying off, bigtime. Stashing profit would cost me a huge part of my income. So I'll ride out the inevitable correction now that QE money is no longer flooding the stock market, my net worth falling but my income remaining unchanged. Since I'm not planning to use my net worth to leverage debt, that's fine with me.

[jmowreader]

25. He appears to be considering using the profit to pay down debt

If the interest on it (significantly higher than bupkis) costs more than the income rolling the profits into new equity will bring (a little more than bupkis), retiring the debt is a better investment.

[Warpy]

26. True, I did that first

Paying off my house was equivalent to paying myself all the interest that would have gone to the bank.

Getting out of debt is always a great idea. Income can come and go but the bank's fingers are always in your pocket whether or not you have enough to eat.

[A HERETIC I AM]

6. DU is absolutely the LAST place to seek investment advice.

Having said that, there is nothing wrong with what you suggested. Taking profits is a common strategy.

Pretty soon, someone will tell you to check out the "Stock Market Watch" thread, as if that would do you some good.


It won't.

[Warpy]

24. DU gives better advice than CNBC does

unless you do the opposite of what CNBC tells you.

[OKNancy]

7. me too

I invest for myself in Vanguard index funds. I didn't get in until 2011 so I've made a nice profit.
I'd like to stay in and not pull out until my husband retires, but I have a hinky feeling.

[AngryAmish]

8. The stock market may go up, may go down or stay the same

Anyone who tells you anything else is either a fool or a liar.

That said I am invested long term in the stock market. No-load S & P mutual fund, with a dividend bias. But this is gambling.

One exception: I have about 3% of my money in Goldman Sachs. I figure that since the game is rigged, why not bet on the folks doing the rigging?

[Atman]

13. I was told S&P was a good investment because it does better when times are tough.

Ironically, times are good on Wall Street, and S&P has done well, too. It's been a win-win for me. I put a fair chunk into the S&P as a hedge, and it's been doing much better than my investment guy projected. When I opened the account, he was sure Obama was going to ruin the economy, so I got into stuff to help me ride it out. All those indexes have way out-performed his predictions. Now I'm just fearful of losing everything I've gained as 1%ers laugh it off and take their own profits, which they'll never see and never spend.

[Swede Atlanta]

9. How long before you will need the money in your investments?

I am, give or take, about 7-9 years from retirement. I am staying in a balanced portfolio for my age of about 60% equities, 30% bonds and 10% cash/cash equivalents.

By having dividends and returns re-invested I now own more shares of those investments. So even if they drop in value I have more of them and, historically, the market will recover.

I know there are the "preppers" and "doomsdayers" that claim there is an imminent collapse of the global economy. I don't necessarily believe that but even if it does I'm not sure what hoarding my money in my bed would necessarily buy me.

If there is a collapse inflation will be rampant so whatever money you have will be worthless (see Weimar Republic Germany after the end of WWI and before the Nazis took control).

If you will need or have reason to think you will need money sooner than 5-6 years you may want to rebalance to something more like 30-40% equities, 40% bonds and 30% cash/cash equivalents.

Best to speak with a financial advisor who you can trust. I have one that I trust without question.

[Atman]

16. I started late...

I've been self-employed most of my life. I took a full time job in order to send my kid to college, and it offered handsome benefits which helped me make up some retirement funds I wasn't disciplined enough to put aside when I was struggling on my own. My balance is 60 (equities)-40, in a moderate risk fund because of my age. The return has been great so far. It's just, like...how long can it last? I can't afford to start over once again!

[JaneyVee]

11. The only thing I'm knowledgeable in is ForEx trading. Can't help you with

Anything else, but I did ForEx trading for myself for 5 years. Made some ok money.

[CoffeeCat]

15. WE have no idea what to do either...

So I'm not going to be much help.

I talked my husband into putting all of our 401k into a money market--2 months before the crash. He did it and I looked pretty damn prescient. However, we stayed out and watched everything steadily climb. The question is...when you do get back in??? We've slowly reinvested in the stock market and now 60 percent of our money is there. We've made nice gains, but now I'm nervous again.

I want out.

I don't like this. AT ALL.

No one knows a damn thing except the big boys at the top--who are probably using the market to lie, cheat and steal their way into the billionaire's club. The stock market doesn't reflect reality anymore. It's bizarre.

I seriously don't know whether to shit or go sailing when it comes to these matters. Sorry.

[Atman]

17. I'm right there with you...

We have additional help...my wife's partner's hubby is a hedge fund manager, and handles all of her investments. She gets her money put into the same stuff the hedge fund guys do. But it's not liquid at all. It's all long term. Mine is easier to switch around.

I love your last line..."I seriously don't know whether to shit or go sailing when it comes to these matters. Sorry."

That's exactly where I'm at.

[HERVEPA]

19. Skip the expert. (S)he doesn't know any more than you do. They're just guessing too.

[denverbill]

20. Why does it have to be all or none?

Why not take some smaller percent out now, wait a month or two and see what the market's doing, then take more out or add back in? Any percent you take out now lessens your downside risk and gives you cash to put back in if the market does drop. Whether it's 10%, 25% or 50%.

[Laura PourMeADrink]

22. Can't...because it is predicted the market won't do well this year. You are lucky

to have gained back. Actually think RE is a better route.

[Uben]

27. I'm in the same boat....

...I have been pondering selling while the market is up. After all, that's when you are supposed to sell! I have a lot of gold and silver ETF's I will have to hold until the next market crash, so might as well dump the stocks while they're high.

[DoBotherMe]

28. I'd sell it, pay the taxes, and get out of debt

It will make a "correction" and, really, the market is for the wealthy. It is manipulated by them and owned by them. So use it to YOUR advantage. Just my 2 cents. Dana ; )