That's what people keep telling me. However, in 2001 the market dumped...last year was the first year we felt good about the $ we have in our retirement accounts , and we know what we've lost since December..............if it takes another five years to feel good about the market, I'm if putting the $ under our mattress isn't a better alternative.

 

It's been 11 months since the market started going in the crapper. I like to keep telling myself the worst is over.

 

I think that's an optimistic view. But the carnage will eventually end.

 

unfortunately I see the turbulence continuing for a while.
I believe that there is still a remarkable amount of leverage still on the street.
Until we get better controls on the derivative markets, we still going to have meltdowns.
several thoughts which hopefully someone smarter than I am can comment on and ease my concerns.
1. The fed deficit is out of control and not generating labor as in the new deal.
2. The remarkable cash outflow for energy continues to create a drag on the GDP.
3. Although interest rates appear to be low at the moment, the prior two items are reducing the liquidity in the markets by eliminating the working capitol in the markets. this will drive interest rates up which will reduce the flexibility the fed has in managing inflationary pressures and growth.

I think most in vintage can remember the resolution trust company which was created to liquidate the mortgage holdings coming from the FDIC bailouts.
The same will need to happen to the subprime mortgages.
The continued slow bleeding created losing of homes by people who have mortgages who shouldn't, will continue to undercut confidence on the overall market. It sounds cold but until the market bottoms solidly there will not be consumer confidence to buy again. Until then, the market will continue to limp along without any strength.

 

This is bad for me. Im 22 and I have always wanted to invest, but lately its too unstable. What would you guys suggest to do?

 

if your 22, relax and be patient.
if you were 72 and your investments were falling then you have reason for concern.
the funny thing is when the market is down is a good time to be watching to get in.

 

I am afraid that the lifestyle we have known is a thing of the past. Our kids are about to learn how good they HAD it.

This will be a lot different than downturns in the past. Our infrastructure is weak (low dollar, high national debt) and we don't have the manufacturing base we once had to help climb out of this mess.

 

I just sent another "wad" to one of my mutual fund companies. Man, it's taken more guts than usual to ignore what's going on and have faith that things will recover. I'm still hoping my most recent investment will prove to be a classic buy low/sell high scenario. Some of the stuff going on now is scary though. Still driven by greed and stupidity.

 

I'm sure we haven't heard the final thud yet but somewhere there's a bottom to this 'correction'.

 

I can't imagine the nightmare of having your accounts tied up in lehman bros.
Even if they were just custodial stock holding accounts, it must be a awful to be hamstrung, and the staff were cleaning out there desks today.