Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
If GDP falls 5% then that would put us at ( - 3.0%) = recession.
If US Defaults, Stocks Fall 30%, GDP 5%: Credit Suisse - Yahoo! Finance (http://finance.yahoo.com/news/If-US-Defaults-Stocks-Fall-30-cnbc-2144458547.html?x=0 - broken link)
A U.S. debt default triggered by the failure of politicians to agree to raising the country’s debt ceiling would be an “act of collective insanity” with severe impact on assets prices and the global economy, according Citigroup Inc. (C) economists.
I hope i doesn't happen, but if it does, it sounds like a nice buying opportunity.
Personally, I think the buying opportunity is now. I think there will be a last minute deal because the consequences of no-deal are so serious that even moronic politicians can understand that. Also, politicians who do not 'get it" will not see much in the way of corporate donations going forward and that always focuses their minds.
As a result, I have taken a number of positions in stocks which have declined sharply over the past 3 days. I probably didn't buy at the bottom but low enough that, if we do get the deal, I will probably make money on the rebound.
My portfolio is already effed up beyond recognition, thanks to Japan, Tepco and GE. And with this default drama, my safer stocks have been chewed off too. 2011 will go down as the worst year in my life, I have never had so many problems accumulating in one year.
Except that I run out of funds only when there's a buying opportunity
Everything is invested. Money is a little tight right now. I have a plan to accumulate 6K by the end of September, the first time I am drawing up one such ambitious plan. Coz I generally siphon funds as and when I get them and buy the stocks in little quantities.
I have set my sights on some rare earth stocks and am going to buy in bulk, like 10K or something. UCore and Greatwestern appear nice. JL alerted me to those recently. Have also been looking at GPR and more Lynas. It's going to be risky but after Japan, my risk tolerance has greatly increased.
I even am toying with the idea of getting 20K on GPR and let it sit for a couple years. It's got immense upside potential.
Except that I run out of funds only when there's a buying opportunity
Everything is invested. Money is a little tight right now. I have a plan to accumulate 6K by the end of September, the first time I am drawing up one such ambitious plan. Coz I generally siphon funds as and when I get them and buy the stocks in little quantities.
I have set my sights on some rare earth stocks and am going to buy in bulk, like 10K or something. UCore and Greatwestern appear nice. JL alerted me to those recently. Have also been looking at GPR and more Lynas. It's going to be risky but after Japan, my risk tolerance has greatly increased.
I even am toying with the idea of getting 20K on GPR and let it sit for a couple years. It's got immense upside potential.
Thats how I buy. Each quarter I try to take money from savings and transfer to Chuck Schwab and pick up 5k worth of a stock.
Focus on the Long Term Amid Debt Ceiling Uncertainty - T. Rowe Price (http://individual.troweprice.com/public/Retail/Planning-&-Research/T.-Rowe-Price-Insights/Personal-Finance/Focus-on-the-Long-Term-Amid-Debt-Ceiling-Uncertainty?placementGUID=em_rtl_edu&creativeGUID= EMBDHT&debt_ceiling&v_sd=201107 - broken link)
Ticks me off that those Tea Party idiots in Congress are so stupid that our money managers have to send out these kinds of emails. After everything falling off a cliff 3 years ago, you'd think these morons would know better. But given the general ignorance of the populace who elected them, that is too much to hope for.
I mostly have CDs, GNMAs and some equities (over which I have no control - in an employer retirement plan), but the GNMAs will take a hit, I think.
Can't foresee I'll need the money in the next 12 months, unless SS payments aren't made.
But sell soon or you'll go down to 6k by the end of the 4th quarter.
This is the trend until something changes the course.
GOP will do what it takes to bring this Admin. to it's knees.
No one will remember what congress did, or doesn't do.
Remember Carter?
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
