It's The Economy Stupid
In case you were wondering, the Dow Jones is now negative for the year:
- Stocks fell more than 2 percent on Friday, dragging the Dow into negative territory for the year after a dismal U.S. jobs report added to fears that Europe's spiraling debt crisis was dragging down the world economy.
The S&P 500 closed at its lowest since early January and ended below its 200-day moving average for the first time in 2012 after the Labor Department said employers created just 69,000 jobs last month, the weakest in a year.
The bleak May jobs report caps a week of soft economic data from China and growing problems in Europe as Spain's bank crisis deepened.
And our Deferred Comp looks like an asteroid ran through it.
Labels: we got nothing
posted by SCC at 12:01 AM
29 Comments:
Just think, if you come on this job and opt for a 401k instead of a defined pension, and the day before you retire the market goes south. What to do then?
Expect some major jawboning about an economic "recovery" that remains on-track- along with hints of additional stimulus- coming out of Washington and the Fed over the next couple of days in an attempt to prop up the stock market. Can't let the values of investment/retirement accounts fall too much in this pivotal election year.
blame bush...it worked last time!
Deferred comp is Kin to walking into a Vegas casino and betting everything on black. seventy percent of the time it's a losing bet .
My deferred comp got flushed in '08. When it got back within shouting distance of it's peak, I put in all in fixed rate funds. Screw the drama. Tortoise over hare: Aesop.
Remember...it's all Bush's fault.
And yet the ignorant masses of West and South side trash will be herded to the polling places by their so called reverends to put this socialist asshole back in office.
This is a pathetic city and state.
The deferred comp stocks suck, you always in the hole waiting for things to get better.Stick your money in fixed and watch it grow and if you want to gamble play lotto you have a better chance to make money.
Be careful with your fixed rate investments, the bond market is a bubble ready to burst. When it does, interest rates will soar and those fixed rate funds will get crushed. Move to cash, sit this one out.
With summer already here and summer jobs filled, dont look for any more goods news in the job market. Look for the next two months to sink the ship bc europe will sink first and then take the rest of the world with it, except for england and germany who saw the bullshit from miles away. Before summer is over it is predicted that we will be under 10000 and that no checks will be written without chinas authirization. Its the democratic way
Anonymous said...
Just think, if you come on this job and opt for a 401k instead of a defined pension, and the day before you retire the market goes south. What to do then?
6/02/2012 12:14:00 AM
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Uumm, asset diversification. The closer you get to retirement, the more into cash instruments you should be, that minimizes your exposure.
Damn dude, it's your money, listen to Bob Brinker or Larry Kudlow for a few minutes each week. You worked hard for the money, sacrificed current wants to put it aside, spend a few minutes per month managing it. I was invested 90% in the market and a few years ago, I'm over 50, I started upping my percentages into cash and took some of the lagging performers, liquidated them and put them into cash. I hate being in cash, I like the explosive gains the market can give you but at my age, I don't have time to recover losses.
The economy is terrible and we are hoping for change in November and if he goes, within 2 years the economy should be rebounding nicely. Provided Europe doesn't flush the whole works.
Anyone that says that differed comp is like putting money on black has no idea it works. Over a span of 30 years contributing to a 457b or 401I, the actual dollar value of your fund doesn't matter until you start getting closer to retirement. When you are young and the market is tanking is the BEST time to be buying, because all of the funds are cheaper. Ever heard of buy low and sell high? You know what is economic suicide though? Trusting politicians are telling you the truth about how they have you and your family's best interest in mind when it comes to your pension. How many years have they failed to make their legally obligated contributions? What are you going to do when there is no money left? After you paid into it your entire career, and it goes tits up the day you retire. Give me a choice between having a pension or a 457 go bust, and I'll take the 457. At least I have control over what I invest in and how risky I want to be with my money. And lastly, when you are retiring, your deferred comp should be open to such a small risk factor, that even if the market does go down, the money you have invested should be minimally effected.uld be minimally effected.
"Remember...it's all Bush's fault.
6/02/2012 01:41:00 AM"
Well low information 1/2 wit, he's the one who gutted the SEC stating the Market will Police themselves.
Of course you're all about an unregulated marketplace, this is what you get. On a more positive note, when you& the family are living in the basement apartment in gresham @ least you can walk to work.
Unless your involved in a foreign fund which can be highly volatile the worst thing you can do is move your money in deffered comp after you take a big loss. In every ten year segment the stock market has been profitable since the great depression. The only time you should revert to fixed or switch your funds is if you have less than five years til retirement. If you are going to put tens of thousands of dollars in something at least take the time to learn how it works.
They only tell you how many jobs were created, not the ones that were lost.
They created lawn maintenance, life guard, park district jobs, air conditioner repair jobs, jobs to replace people who have vacations and fireworks salesmen.
just think if we had a pres who wasnt hell bent on wrecking the economy.this man is a dyed in the wool socialist. but he says hes going to part the oceans. what is really scary is how many well educated people voted for him. some wanted to make history,others just wanted a slice of the pie without working for it. can you hear me! remember in november.
Our economy will collapse. There will be riots in the streets. There will be no food. It is coming sooner than you think.
Anonymous said, "Well low information 1/2 wit, he's the one who gutted the SEC stating the Market will Police themselves.
Of course you're all about an unregulated marketplace, this is what you get. On a more positive note, when you& the family are living in the basement apartment in gresham @ least you can walk to work.
6/02/2012 11:12:00 AM"
Oversimplify much? Unregulated banks are not the problem. Unregulated banks who are perpetual bailout recipients are. The TBTF banks should be broken up, their officers barred from the industry for life, and banks should be prohibited from all derivatives, on and off balance sheet. Neither GWB nor Obama have any interest in this because they're getting paid handsomely to give the Banksters the loot.
"And our Deferred Comp looks like an asteroid ran through it."
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My deferred made it all back plus about 50% after tanking in 2008. I am 3 months from retirement, when I was a year from retirement (9 months ago) I sold all the funds and put it all in fixed.
I am still way up and that is where I will stay, fixed. I still get my own contributions in there each month plus the fixed interest. Not a huge amount but definitely not losers.
I am OK with it, you have to be able to sleep at night.
I had three calls back to back to back today. Not one person did anything for a living other than look for the 'guvment deposit each month. I might be making a few hundred more each month if not for the leeches of society. Woman lives in a CHA high rise, nice apartment, $260 a month. Plus her SSI, adult son also gets SSI due to his sore shoulder and mental disorders.
And the goddamned mayor wants to cut my pension after a lifetime of work. I pay for those goddamned blood sucking shitheads! When the goddam hell did any of them ever draw a steady paycheck?
Fuck this shit.
http://tinyurl.com/86qzptq
A report prepared for legislators and business leaders by the American Trucking Associations highlights just how critical our just-in-time inventory and delivery systems are, and assesses the impact on the general population in the event of an emergency or incident of national significance that disrupts the truck transportation systems which are responsible for carrying some ten billion tons of commodities and supplies across the United States each year.
http://tinyurl.com/79vznl9
If this doesn't burn your ass, nothing will:
If JP Morgan gets to the point where it is about to collapse, the U.S. government and the Federal Reserve will rush in to save it. Because of this "security blanket", banks such as JP Morgan feel free to take outrageous risks. Today, JP Morgan has more exposure to derivatives than anyone else in the world. If they win, they win big. If they lose, U.S. taxpayers will be on the hook. Not only that, but thanks to Dodd-Frank, U.S. taxpayers are on the hook for bailing out the major derivatives clearinghouses if there is ever a major derivatives crisis. So when the derivatives market crashes (and it will) you and I will be left holding a gigantic bill.
This is what our politicians love to do.
They love to have the U.S. taxpayer guarantee everything.
Our politicians look at us as one giant insurance policy.
Apparently they believe that if anything in the financial world goes wrong that U.S. taxpayers should be the ones to clean up the mess.
But will we really have enough money to bail everyone out when the derivatives market crashes?
Today, the 9 largest banks in the United States have a total of more than 200 trillion dollars of exposure to derivatives.
That is approximately 3 times the size of the entire global economy.
The U.S. government is already nearly 16 trillion dollars in debt.
If you have some years to go before retirement, don't worry about your deferred comp. Just think of all the extra shares you'll be able to snatch up while they are "on sale". After awhile, when the prices do rebound, you'll have many more shares than you would have had. Now if you're already retired like me, then you have my sympathy.
Anonymous said...
"Remember...it's all Bush's fault.
6/02/2012 01:41:00 AM"
Well low information 1/2 wit, he's the one who gutted the SEC stating the Market will Police themselves.
Of course you're all about an unregulated marketplace, this is what you get. On a more positive note, when you& the family are living in the basement apartment in gresham @ least you can walk to work.
Yeah, cuz barry's policies have worked so well up to this point, right??! Fucking democratic moron.
One of the best rules of investing is- "Don't invest in anything you don't understand".
You have to be able to sleep at night without worrying that you may lose your money.
Anonymous said....
U.S. taxpayers are on the hook for bailing out the major derivatives clearinghouses if there is ever a major derivatives crisis. So when the derivatives market crashes (and it will) you and I will be left holding a gigantic bill.
6/02/2012 09:32:00 PM
When derivatives crash, it will be the end of the dollar as we know it. We won't really have to "pay the bill," because we will have nothing left to pay it with. Martial Law will rule the day, and FEMA will be overwhelmed trying to dole out tiny amounts of freeze-dried food it has already purchased for this planned crisis. The day of reckoning is coming in a few short years. Store up some canned and/or freeze-dried food. When this crisis hits, the grocery stores will be empty, and food will be a very prized commodity. Prepare Now!
I can see that people aren't buying all this so called recovery either.. well people that can READ .. HEAR..THINK.. and have an ounce of common sense and logic.. must be why I like this blog people here have all the a fore mentioned things.. including my view I tell everyone they are propping up the stock market and playing us for fools.. do have to say everyone should be preparing for inflation to..stocking up on things like FOOD worse that can happen you have a well stocked pantry and IF things get better BEFORE they get worse you can donate it..
Try using Deferred comp's PCRA option and check out PRPFX.
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