Capitulation

That's been the word I have been saying for the last few days. I think it means when everyone is selling their stocks, then experts say that we are near or at bottom of the market. I think that's true. 2 Fridays ago, the market dropped to 700 or so, and the following Monday it went up 1000 points. After that it has been up and down. Must be profit taking mixed with panic selling.

Capitulation or not, this economy has taken it's toll on almost everyone I know. Things that you would not think twice about buying last year, now warranted a second thought.

But we have to stay optimistic. We can only go up at this point. On to another subject.....Turning 40 seems to be a hot topic among some friends that I had coffee with last Sunday morning. I asked the question " what do you want to do before turning 40?". So, here is the list:
1) Alvin still wants to do a fantasy football camp with USC trojans
2) Fidencio wants to join a band (Not the marching type)
3) Patrick wants to do a stand up comedy act
4) Mark wants to spend more time with friends (I know, we called him on that). But, he is still thinking.
5) For me, I wanted to buy that damn SUBMARINER Rolex that I have been eying for the last 10-12 years. This thing's price keeps going up every year. Imagine that.







So, we marked the date, and we set forth to try and accomplish our goals. We will see what happens. Check back with you in just a little over 14 months from now.

UNBELIEVABLE TIMES!!

Let's see the last time I blogged, I commented on the AIG fall out, and noted that I think WAMU was next. Fast forward today, Wednesday, October 9, 2008.....and WAMU is GONE!!! Bought by JP Morgan. AIG is still in trouble, Morgan is desperate for cash, banks are not lending money, Financial Companies are hammered (METLIFE, HARTFORD, PRINCIPLE, Etc.)...oh and the market continues to TANK down to today's depressing close of 680 point to about 8500 with the DOW.

Keep in mind that just about 1 year ago, DOW was peeking at 14,000. That is about a 40% drop in value. We have to go back to about 5 or 6 years ago to be at the same level as we are now. All that money wiped out in about 15 months. Someone said that Americans have lost about 5-7 Trillion dollars in their retirement money during those 15 months of decline....OUCH!!!!!

This SUCKS!! I know the right thing to do if you have money in the market is to hold on, but man, that's some major stomach turning going on there. It's one of those easy to say, hard to do.

A lot of experts are optimistic about where we are as being close to the bottom, and if you sell off now, then you might miss out on the upswing of this market....there in lies the rub as they say.

Experts also say that this is where millionaires are made. During unique market conditions like this,(If you have the BALLS to do so) this is the time to buy stocks at heavily discounted prices. I wish I had some cash to buy, I am so sure that you can double your money in a year or two. Imagine that.

Well, I can keep going on and on about this market, but I think I will take the road less traveled, and say that we are going to make a huge comeback in the market within the next few months.....Mcain will be our next president, and real estate will make a huge comeback in the next coming year. HEY, we can only hope....right?