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If you have a 401k, get out of the high risk stocks now! Follow

#27 Aug 07 2011 at 9:00 PM Rating: Good
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You're obviously behind the curve if you've not invested in Thundermemes.
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#28 Aug 07 2011 at 9:00 PM Rating: Excellent
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I heard a couple analysts saying that much of the hit from the downgrade was factored into last week's drops; i.e. everyone knew it was coming anyway. So the impact this coming week may not be as severe as you'd expect.

Take it or leave it, I'm just passing along someone else's opinion.

Edit: Early trading in the Asian markets is showing some, but relatively little, impact.
LA times wrote:
Interest rates on U.S. Treasury bonds were mixed in early Asian trading on Sunday, with short-term rates falling and longer-term rates rising as investors had their first opportunity to react to the government’s downgraded credit rating.

The moves in both directions were relatively modest.


Edited, Aug 7th 2011 10:03pm by Jophiel
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#29 Aug 07 2011 at 9:06 PM Rating: Excellent
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Joph, sshh, the adults are talking.
#30 Aug 07 2011 at 9:22 PM Rating: Excellent
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lolgaxe wrote:
You're obviously behind the curve if you've not invested in Thundermemes.


My financial panther ran the numbers and it's been pretty stagnant barring some crazy spikes. The Lulz is primarily based in Greece, and everyone knows they aren't really in a good place.


Allegory's MLP pick was a good one.
but I still think a broad spectrum memetual fund has both safe and rapid growth.

Thunder cats is still an ok forward looking pick with a rosy growth forecast in the next year or two. It's much better than, say, picking up Allakhazam lulz stock, as it's common knowledge that the OOT is dying.

Edit: Oh hey, I can make pictures!


Edited, Aug 7th 2011 11:27pm by Timelordwho
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#31 Aug 07 2011 at 9:23 PM Rating: Excellent
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Wow. Regular ol' Joph fan club in here.
#32 Aug 07 2011 at 9:52 PM Rating: Good
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Just to illustrate TLW's point about regularly fluctuate stock prices, many sources of lulz follow a similar trend. For example, I'm about to be funny again.
#33 Aug 07 2011 at 10:15 PM Rating: Good
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Allegory wrote:
Just to illustrate TLW's point about regularly fluctuate stock prices, many sources of lulz follow a similar trend. For example, I'm about to be funny again.


NO ROLEPLAYING
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#34 Aug 08 2011 at 6:56 AM Rating: Good
lolgaxe wrote:
You're obviously behind the curve if you've not invested in Thundermemes.
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STOP IT. STOP IT RIGHT NOW, BEFORE YOU EVEN START WITH THIS NONSENSE.
#35 Aug 08 2011 at 7:16 AM Rating: Excellent
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That's a good way to get Gaxe to start doing something.
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#36 Aug 08 2011 at 2:17 PM Rating: Excellent
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Vestal Chamberlain Lubriderm wrote:
lolgaxe wrote:
You're obviously behind the curve if you've not invested in Thundermemes.
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STOP IT. STOP IT RIGHT NOW, BEFORE YOU EVEN START WITH THIS NONSENSE.
To be honest, I was expecting the lolgaxe trend to go towards Iron Man anime Tony Stark rape faces.
#37 Aug 08 2011 at 8:07 PM Rating: Excellent
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Majivo wrote:
The fact that your father - who, if you're any indication, was not the brightest bulb - chose to invest in stocks and chose poorly does not support a strategy of "don't put savings in high risk stocks".


Well, and he apparently waits until after his high risk stocks crash to sell them off so as to seal his losses. That's brilliant.

Um... Unless you are retiring like right now (or in a very few years) you simply should not even look at your 401k. Maybe occasionally make adjustments to the ratio of funds you're investing in, but that should be it. The idea that anyone who isn't a professional stock broker should run off after hearing bad economic news and sell out of his 401k is ridiculous.

Your fund manager will make better choices that you do. If you take your money out after bad news hits, you're going to lose money and wont get it back when the market inevitably recovers. A 401k is a long term investment. Don't worry about year to year ups and downs. Ever.
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#38 Aug 09 2011 at 11:48 AM Rating: Good
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Hey, I agree with gbaji! Smiley: yikes
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#39 Aug 15 2011 at 9:29 AM Rating: Good
Just a quick addendum.

Price of gold in 1980: ~800 USD
Dow Jones Industrial Average in 1980: ~800

Long term, I think I know which pony I'm putting my money on.
#40 Aug 15 2011 at 2:12 PM Rating: Decent
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Vestal Chamberlain Lubriderm wrote:
Just a quick addendum.

Price of gold in 1980: ~800 USD
Dow Jones Industrial Average in 1980: ~800

Long term, I think I know which pony I'm putting my money on.


Gold is a commodity, and like all commodities is a high risk volatile asset that hedges against inflation.

It's also the purest analog to buy and sell the value of fear on the open market, (It edges out both arms manufacturers and insurance, by a reasonable margin in terms of correlative effect.)
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#41 Aug 16 2011 at 5:47 AM Rating: Good
Timelordwho wrote:


Gold is a commodity, and like all commodities is a high risk volatile asset that hedges against inflation.

Yeah, what's that in English? I'm pretty sure that gold has lost value in constant dollars since 1980, so I'm not seeing how it's much of a hedge against anything, in the long term.
#42 Aug 16 2011 at 6:43 AM Rating: Decent
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#43 Aug 16 2011 at 2:03 PM Rating: Decent
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Vestal Chamberlain Lubriderm wrote:
Timelordwho wrote:


Gold is a commodity, and like all commodities is a high risk volatile asset that hedges against inflation.

Yeah, what's that in English? I'm pretty sure that gold has lost value in constant dollars since 1980, so I'm not seeing how it's much of a hedge against anything, in the long term.


Correct. Commodities hedge against rapid inflation, and gold sort of acts like money. If a money supply increases, the value of money goes down, so the price of goods, and most acutely, raw goods, go up in relation to the value of money. Their actual value doesn't change, just the number. Gold is especially prone to this effect because many people treat it as a money analog, and so it changes in value with respect to the perceived future value of money, or what the inflation rate is.

A simple example being you have $200. You buy 1 gold bar worth $100. The government prints a ton of money, so their is now double the money in circulation. Your gold bar is now worth $200. you can sell it and have $300. The money you put in gold has been 'protected' from dropping in real world worth in the way that your dollars have. In fact, your gold bar may be selling for $300-400 because people are afraid the government will print more money and thus devalue it's worth further.

The effect works in reverse for deflation.

Commodities are also high risk because their value fluctuate wildly.
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