Friday, October 24, 2008

Today is going to be a BRUTAL day on the stock market. I'm predicting a drop of between 5 and 8% just today on the DOW.

It seems as if everything that can possibly go wrong is going wrong.

As my company is primarily an aerospace driven company, the Boeing strike is hitting us hard (my plant alone is losing 650K per week due to the strike). On top of that, the panic on the market is ridiculous. Warren Buffets favorite saying is "Be fearful when others are greedy and be greedy when others are fearful." I have no doubt that now is the time that fortunes can be made. It'll just take some courage and a long term outlook.

If you've got 20K to invest, within 5 years you'll be sitting on 100K. I have no doubt whatsoever. The problem is, no matter now much I believe that, going against the grain when all you're being told is that the end is neigh is still tough to do.

The good news is that our backyard is now going to cost more thousands of dollars to fix and we also need to buy a new mattress because the dog peed all over our old one (no stain, but it saturate the interior fibers, so there's odor). Well, we actually did buy a new mattress, but it's just not comfortable (not firm enough -- that's what she said), so we need ANOTHER new mattress. The actual good news is that we can return the king bed and box springs we bought, but the next bed we buy can't be returned. So here's hoping we pick a winner.


J Money said...

I hate it when things cost most thousands of dollars.

That's a lot.

And sure, the dog peed in the bed. I bet you blame him when you fart, too.

Poor Max.

E said...

Gee, if only these stores would let you lay on the beds before you buy them.......

E said...

So you think the market is gonna increase 500% in 5 years??

So what should we invest in?

Tim said...

Because we all feel comfortable sleeping on a stores bed for 8 hours.

The mattress we chose felt good for the 5 minutes we laid on it. After a whole night though it wasn't right for us.

J Money said...

You are such a delicate little flower.

This mattress is too hard! This mattress is too soft! This mattress is juuuuuuusst right.

I say you go in to the store, tell the people you and Linds want to test it out and then elbow the guy and go "...if you know what I mean! Hey-yoooo!"

Always a crowd-pleaser.

Plang said...

Stock tip - GE and Cisco are pretty cheap right now and will go up, not to mention dividend payments with GE.

Hell, most everything is cheap right now. I would invest 10K, if it weren't tied up in a crappy mutual fund right now.

Tim said...

GE is cheap, that's true, but their forward P\E is higher than their current P\E, which means their EPS is forecast to fall in the next year. Not a good sign when you need growth to increase share price.

bmp1965 said...

While GE is diversified with it's holdings, one of it's holdings is NBC. Speaking from someone on the inside, TV is dying (especially NBC). I wouldn't invest in any company that has Network TV as one of it's subsidiaries.