What Will the Stock Market do Next – Investing Uncertainty Edition
October 19, 2008
Will the stock market continue to drop or has it reached “the bottom”? Although it showed a little sign of life last week it could be just a temporary leveling off before dropping another thousand points.
Investing in the Market
Obviously no one knows what it will do for sure but I have decided that stocks are on sale and starting Monday I’ll take advantage of the free stock trades with Zecco and start putting money into the market. Warren Buffet is moving some of his personal investments out of bonds and into stocks. He doesn’t say which stocks he is buying other than stock in American companies that he thinks are a bargain.
Investors everywhere have different opinions on the state of the market. In general, people are tired of the constant market fluctuations but the optimistic investors see the financial crisis as an investing opportunity. There have been a lot of knee-jerk reactions in the markets, and especially in Washington, such as the proposal to eliminate the tax benefits of 401(k) plans.
During uncertain financial Times is always good to stick with the basics. For example, simplify everything you do to take the least amount of time and money.
Pay yourself first by saving and investing a portion of your income automatically before it lands in your bank account where you will most likely spend it.
Give yourself to allowance of discretionary spending money for the month and once it is used up, stop buying stuff.
Here’s a list of free spreadsheets and tools for managing your money, a checklist of financial things you should consider this fall, 18 things new homeowners can do to save money, and last but not least some tips on enjoying life.
One good way to get a wide range of opinions of the market conditions and finances in general is to check out the weekly summary of financial blog posts from around the web.
I try and submit one of my favorite articles each week, thanks to Girls Just Wanna Have Funds and Banker Girl for hosting the last two carnivals of personal finance that I was involved in. They are typically published every Monday morning you can check out next week’s at Budgets are Sexy.
Have a nice rest of the weekend!
All posts by Ben Edwards