What's going on with the Stock Market? Are we at the bottom, or still room to fall?
I know I can't expect anyone to know exactly what's going to happy with the market, but whats the general consensus on where this market is going...overall? I'm not really good with economics and the stock market, I'm a computer science major so yeah i'm more of a computer geek, but I have 17 years of savings in the market and have no idea what to do about re-allocating my money and all that stuff. I keep seeing my statements and I'm still losing money... so are we at the bottom? is there more room to fall? or is there light at the end of the tunnel? Any answers would be appreciated, thanks.
- MikeLv 69 years agoFavorite Answer
In my opinion the market is currently fairly priced. That doesn't mean it can't go down another 20% since investors are the most fickle people in the world.
Currently DOW stocks have a p/e ratio of about 12 and pays an average dividend of about 2.85%. The p/e ratio is well below anytime in the past when a bubble occurred and the dividends are higher.
However, because of the uncertainty in the market, it would probably be wise to be defensive by purchasing high dividend blue chip stocks so that if the market declines again, large solid corporations are usually hit the least and the dividends will ease the pain.
In my opinion, the following would be a defensive play.
Purchase the Diamonds ETF (DIA) which follows the DOW, has a very low maintenance fee, a dividend yield of 2.82% and gives you diversity.
After that choose high dividend blue chip stocks (try to pick stocks in different sectors) to bring up the dividend yield such as the following.
AT&T (T - 6.30% dividend)
Verizon (VZ - 6.27% dividend)
Pfizer (PFE - 4.44% dividend)
Eli Lilly (LLY - 5.36% Dividend)
Consolidated Edison (ED - 4.96% dividend)
Duke Energy (DUK - 5.73%)
Altria (MO - 6.24% dividend)
Philip Morris (PM - 4.47% dividend)
Dupont (DD - 4.02% dividend)
Royal Dutch Shell (RDS.B - 6.00% dividend)
Chevron (CVX - 3.74% dividend)
You may want to choose one of these ETFs as an international play for foreign blue chip stocks.
Euro STOXX 50 ETF (FEZ - 3.63% dividend)
International Dividend ETF (DWX - 4.75% dividend)
- genthnerLv 43 years ago
Have you spotted that the inventory marketplace has been plunging ever for the reason that Barack Obama started to grow to be identified? I'd say December of 2007 is while this all began, and earlier than we knew something approximately him, the economic system was once exceptional. Go again to early 2007, the economic system was once exceptional. 2006, the economic system was once exceptional. In truth, throughout October of 2007, the Dow Jones Industrial Average set an all time top, wherein the index was once close 14,000. Now it's headed beneath 7,000. I realize I sound loopy, however this entire mess has gave the impression now and then like a marketplace response to Obama himself. Sad, is not it?
- MACDLv 59 years ago
What is going on with the market? Probably a Secular Bear market that started in the year 2000. S&P 500 is -20% in the last 10 years.
What to do with savings? Right now, I would concentrate on protecting capital and waiting for opportunities (attractive long term investments)....don't see much to get excited about in the long term right now.
Are we at the bottom...maybe...but is there a basement?
Is there a light at the end of the tunnel? ....maybe but it could be an oncoming train.
- ag318punLv 79 years ago
In this kind of market the best thin g to do is invest more
when it looks like it hits bottom.. Thats how Warren Buffet
makes his money. Buy low and sell high. How do you know
when its high or low? Good question. Best bet is go with
your gut feeling. The economy still looks very weak for the
near term. Watch the price of gold. It's very high right now
and may go higher, but if it starts to drop then our economy
is getting stronger.Source(s): 20 year investor in mutual funds.
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- Anonymous9 years ago
I'm convinced we're near the bottom.