Comments on: Ben Stein: Concerned About A Recession? Time To Buy!

By: Tim

Tim — Fri, 18 Jan 2008 19:35:02 +0000

if you’re investing with a regular 401(k) plan or automatic investment plan, then just keep plugging away. If you’re buying individual stocks or funds on your own, then be cautious for now and nibble on good quality stocks here and there. as they start to turn around, then buy more shares with confidence.

By: Anonymous

Anonymous — Tue, 15 Jan 2008 23:02:06 +0000

Ben’s real point is always this: Work to your own plan and ignore the “market” because your friend is the economy.. That is, don’t get panicky or time markets or over-spend or act in any way short term. Invest for retirement, which is long term. Market up? Market down? Whatever. Save your money for when you need it.

By: Anonymous

Anonymous — Mon, 14 Jan 2008 01:33:46 +0000

I had a short gig working for a University in New York. They stuck money in TIAA-CREF. Ignorant at the time, I added nothing. In four years they put in $7000.00. That’s the total contribution. That job ended in ‘76. That 7K is now sitting at 170K after 30 years. This is after all the crashes and reversals and meddling by trying to time the market. I left it alone. The danger is going the way of “if only I had” kinds of thoughts. Of course you can invent ways to torture yourself.

Regardless, the lesson is clear to me. Putting money in the DOW and not meddling with it except to put in money on a monthly basis and putting enough in that it makes you wince just a little every month will (most likely) let you retire very comfortably. There are other exchanges that do well so there are lots of choices however the regular 401K type investment in performing low cost mutual funds is the key. I know this sounds familiar but it is true.
Bill

By: db

db — Sat, 12 Jan 2008 19:15:09 +0000

@CrzyAbtPF:

I can’t tell you whether it’s wise to go 50/50 US vs. international stocks. I’m not an expert.

But I can tell you I personally go 50/50 US vs. international stocks.

By: Tim

Tim — Thu, 10 Jan 2008 00:56:37 +0000

I’ve been buying lots throughout oct-dec. i’m negative on most, but i’m not phased by it. echoing what others have said in investing in good companies for the long run. we are balancing increasing cash holdings, not because of the market turmoil, but because we will need it in a short 4 month period; otherwise, I would be putting more into the market. so instead of putting 85% of pay into the market, we have had to drop it to 60% of our pay. i’m not happy about it, because i really see lots of steals to be had right now; however, with dropping to one income and the both my wife and I moving to two separate countries for work, requires extra cash holdings to fund. so, like someone else stated, if you have the extra cash, then i’m all for buying more stocks/funds.

By: bryan

bryan — Wed, 09 Jan 2008 23:35:35 +0000

i fully funded my roth for 2008 already and bought $5000 worth of stocks/funds today. bought a worldwide strategy fund, utilities fund, agriculture, JNJ, DD, and MO. gold should do well again this year. and i dont think $100 oil is going away anytime soon. the days of sub $80 oil are gone, get used to it.

if youre long, start buying and continue to buy through 2008. theyre will be some good deals if you hold…

just do the opposite of everyone else and youll be ok overall.

By: Venugopal

Venugopal — Wed, 09 Jan 2008 22:23:07 +0000

I just bumped up my 401(k) contribution rate by 2.0% (bringing it to 13.0% total) … I don’t have enough money on hand to fund my Roth IRA in one swoop, so I may do the DCA on it all through the year …

On another note: is it wise to re-allocate 401(k) funds to be 50.0% US stocks and 50.0% International? Many experts are suggesting that … I currently have it at 73.0% US Stocks and 27.0% International.

Thanks,

CrazyAbtPF

By: mbhunter

mbhunter — Wed, 09 Jan 2008 16:14:52 +0000

I won’t be buying stocks anytime soon. There will be lots of losses in the financial industry as they’re forced to claim their CDO losses under new required valuation methods.

There will be much better bargains than there are right now.

By: jpsfranks

jpsfranks — Wed, 09 Jan 2008 05:45:14 +0000

I think it’s good advice, but I can’t help but notice that the FSTVX that he recommends has a $100k minimum. Of course there are other almost-as-cheap total market funds, but it would be nice for Ben to come down to earth a bit along with us mere mortals.

By: MoneyNing

MoneyNing — Wed, 09 Jan 2008 04:55:33 +0000

Wow there’s so many people here that seems like they are going to buy stocks. I wonder how many people are actually buying with full force right now?

I will be buying though since you never know when the bottom will be

By: NCN

NCN — Wed, 09 Jan 2008 02:46:08 +0000

I’m so convinced that it’s the time to buy, I’ve fully-funded my Roth IRA for 2008 AND I’ve scheduled an index-fund buy for tomorrow!
NCN

By: Alan

Alan — Wed, 09 Jan 2008 01:59:53 +0000

Agreed that for long-term investing, now is always the best time to buy. However, you can amplify gains by shifting your money around the sectors that do better weathering a recession, and then the sectors that do good coming out of recessions.

By: Frugal Dad

Frugal Dad — Tue, 08 Jan 2008 21:37:11 +0000

I think the more negative sentiment is out there the more I’m wanting to buy, particularly in sectors like healthcare cost containment, infrastructure, energy, etc. These “defensive” stocks will be big winners this year until financials get things turned around and recover from the housing fallout.

By: plonkee

plonkee — Tue, 08 Jan 2008 20:39:09 +0000

I think that the best time to buy for the long term is as soon as possible. Which means in 2008. Now if you have the money.

By: RacerX

RacerX — Tue, 08 Jan 2008 18:08:05 +0000

As with any dip, it is time to buy…but only certain things, not everything at the buffet!

Invest in what you know. Research, and if something shows an undeserved beating, but and don’t look back!