Now that the recession is here, what now?


W

W. Wells

Every circumstance brings new opportunities. Now that we are probably in a
recession how do we take advantage of it?

I would like to hear some ideas from some of you on how you would go about
improving you status in this downturn.

And if you get out of the market, when you will decide to get back in.

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to keep the conversations on-topic for financial planning. Other posting
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H

HW \Skip\ Weldon

Every circumstance brings new opportunities. Now that we are probably in a
recession how do we take advantage of it?

I would like to hear some ideas from some of you on how you would go about
improving you status in this downturn.

And if you get out of the market, when you will decide to get back in.
Since I don't change my strategy based on current events (I'm planning
for the future, not the present), I will continue what I was doing
before the "recession".

(I put quotes around "recession" because yesterday when I went to the
shopping center it was tough finding an available parking space.)



-HW "Skip" Weldon
Columbia, SC

--------------------------------------
Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the
Newsgroup.
 
J

jIM

Every circumstance brings new opportunities. Now that we are probably in a
recession how do we take advantage of it?

I would like to hear some ideas from some of you on how you would go about
improving you status in this downturn.

And if you get out of the market, when you will decide to get back in.
I am still buying in my Roth and 401k. I am trying to make sure I
also have enough cash to weather unemployment. I have 3 months cash,
looking for 6 months. Also shifting some of my large allocation to
growth (I am highly value oriented now).

--------------------------------------
Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the
Newsgroup.
 
B

BeachBum

W. Wells said:
Every circumstance brings new opportunities. Now that we are probably in a
recession how do we take advantage of it?

I would like to hear some ideas from some of you on how you would go about
improving you status in this downturn.

And if you get out of the market, when you will decide to get back in.
I would not try market timing - stick with a long term investment strategy.
Before the stock market went south I was increasing my cash reserves by
a few hundred dollars each month. I now invest that monthly amount in
a stock fund at Vanguard - a minor tweak. So you could dollar cost average
into the downturn.
BeachBum

--------------------------------------
Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the
Newsgroup.
 
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D

dapperdobbs

Every circumstance brings new opportunities. Now that we are probably in a
recession how do we take advantage of it?

I would like to hear some ideas from some of you on how you would go about
improving you status in this downturn.

And if you get out of the market, when you will decide to get back in.
The long-term approaches recommended above are impressive (good
advice). There was a piece on CNBC today pointing out that the average
bear market declines 30% - today we have hit more than 70% of that
decline (they said). If this is to be a "shallow recession" we may be
very near the bottom. So selling now to trade is a bit late, and if
your positions are sound, then you have less reason to sell. Don't get
caught in a panic - easy to say, hard to do.

I've observed that markets have a tendency to go down much faster than
they go up, so it isn't necessary to pick the exact bottom.

In all cases, make your own decisions about your positions based on
company fundamentals, and determine for yourself what your stocks are
*really* worth (ref: Benjamin Graham). Then depending on where the
market prices them, you can tell whether you want to buy or sell.

--------------------------------------
Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the
Newsgroup.
 

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