tag:blogger.com,1999:blog-27697009.post3784021309080116207..comments2024-02-29T03:21:35.007-08:00Comments on The Great Depression of 2006 : The Mutual Fund Run (Reprinted)Jim in San Marcoshttp://www.blogger.com/profile/09435296419912935381noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-27697009.post-46177110068558796232008-05-11T13:43:00.000-07:002008-05-11T13:43:00.000-07:00Hi TyroneI was looking at my 401K and was amazed t...Hi Tyrone<BR/><BR/>I was looking at my 401K and was amazed that they considered the safest investments as 30 year 5% bonds. Especially with inflation at [insert your guess here]. I switched from those to shorter term Treasury which the fund claimed were riskier. It the 30 year interest rate went to 10% those 30/5% bonds would still be worth face amount in 30 years, but I don't think I'll live to be 90 years old. At 10% interest current face on a 30/5% would be 50%. A real killer.<BR/><BR/>Something I am going to start next week is shorting a few dogs in the stock market. I tried it a long time ago, but I couldn't get to sleep on the weekends because of the potential stress involved.<BR/><BR/>The thing that counts most is a good nights sleep. A bad investment can really ruin that!<BR/><BR/>Thank you for your postJim in San Marcoshttps://www.blogger.com/profile/09435296419912935381noreply@blogger.comtag:blogger.com,1999:blog-27697009.post-25384320656899233372008-05-11T12:43:00.000-07:002008-05-11T12:43:00.000-07:00Hi SackThe quote "emerging market is one from whic...Hi Sack<BR/><BR/>The quote "emerging market is one from which it may be difficult to emerge," made me laugh. It's a little like a chess game. You think your safe but your not.<BR/><BR/>I'm like you, I got out of the stock market in '96. It was out of whack even thenJim in San Marcoshttps://www.blogger.com/profile/09435296419912935381noreply@blogger.comtag:blogger.com,1999:blog-27697009.post-6994958265344458692008-05-11T08:38:00.000-07:002008-05-11T08:38:00.000-07:00I haven't exactly done the math, but my 'run on mu...I haven't exactly done the math, but my 'run on mutual funds' is upwards of $500K, from both 401K and personal holdings. The problem you face is where to put the money. I withdrew cash from some, moved to short-term treasuries, money markets, small position in S&P short ETF, small position in energy and gold funds, and bond funds (yes, bond funds,... *barf*). <BR/><BR/>I performed my due diligence, and feel comfortable with the result, but it's not low risk by any means.Tyronehttps://www.blogger.com/profile/04226876002855072090noreply@blogger.comtag:blogger.com,1999:blog-27697009.post-66475566183755804142008-05-11T04:23:00.000-07:002008-05-11T04:23:00.000-07:00Hair-raising. First out survives with least damage...Hair-raising. First out survives with least damage. But then, I've been telling my clients for the last 9 years not to get in. Which is why I have earned little. Which is why most advisers and fund managers don't say it. And good ness know what would happen to a MSM journalist who played Cassandra. That's why I've joined the blogosphere - among the madmen are some prophets.<BR/><BR/>Your foreign-equity point is useful also. A UK investment wise-owl journo called Christopher Fildes said years ago, an emerging market is one from which it may be difficult to emerge.Sackersonhttps://www.blogger.com/profile/09410040031410954403noreply@blogger.com