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Market Falling, and now I’m in the market

bull_mvhargan.jpgWell, now it’s not just the US economy that’s going down, the global market is falling too. When I read about the market, I start thinking “Oh hey, that’s me too.” But not panicking yet.

On the plus side, I’m in it for the long run. So if things eventually go back up, I’ll be ok. And I’ve “only” got $1000 in the market. As long as my stock doesn’t disappear…

I’m trying to find the post I read a few days back–a nice succinct one which just said “Don’t pull out just because you’re nervous. The market goes up and down and you’re going to lose money if you pull out.” After going through my reader, I found a surprisingly large number which say this, but not the succinct one. Darn stealthy writers.

So if it’s not a time to sell your stocks, is it time to start investing since prices are lower? I’m definitely not an investment professional so I have no idea. Intuitively it seems right (if you’re investing in something like the index anyway) but intuition and investing don’t always go together.

In slightly more humerous news–you can invest in Iraqi currency. Or burn your money….

As it is, I’m just not going to look. Sometimes passive investing involves stepping away so that emotions don’t get the best of you.

Coming soon, a review of a book on ethical investing–can it be lucrative and still satisfying your conscience? Maybe, I have to track down some of the stuff they’re talking about…

photo by mvhargan

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Market Volatility, Should I Get Out of the Stock Market? | Moolanomy
April 20, 2008 at 6:07 pm


Aaron Stroud January 22, 2008 at 1:02 pm

A large market correction is one of the best things that could happen to young investors. Personally, I’m torn between hoping for a huge correction and the possible long term consequences of that happening now.

I suspect a huge correction might result in more regulation, higher taxes, and more blantantly socialist politicians elected. These downsides would probably outweigh the benefits of cheap stocks for the next decade or two.

Andrew Stevens January 22, 2008 at 1:28 pm

I just sunk $4000 into the market this morning, but I’m not recommending trying to time the market; I would have done the same thing even if it was at a record high.

If the stock market is too turbulent for someone, I think it’s fine if they decide to keep all their money in the bank or in real estate instead. If people want to invest in the market and time it as well, I guess that’s fine too. However, the one thing you can’t do is buy when the market’s going great and sell when the market’s doing poorly. That’s a sure way to lose money.

RacerX January 22, 2008 at 1:56 pm

If you had bought after the market crash in 1929, you would of had an amazing buying opportunity.

It is an opportunity to cost average down what you already have and buy cheaper.

All that being said, it is a great time to shed debt!

MMJ January 22, 2008 at 2:28 pm

It’s all about the long term, 5+ years. That’s why I do automatic investments.

Emily January 22, 2008 at 2:42 pm

The beauty of being young when this stuff happens. It’s easier to sit still and not panic. Now is certainly not the time to jump out. Andrew said it best above “However, the one thing you can’t do is buy when the market’s going great and sell when the market’s doing poorly. That’s a sure way to lose money.”

Dad January 22, 2008 at 2:59 pm

Panic is probably the worst reaction at a time like this. Look at the S&P 500 on a long term graph. It has these corrections and eventually recovers. Timing the market is nearly impossible for most professionals much less amateurs like us.

BTW, I saw an article about Google doing high speed scans of blogs. I googled an unique phrase in today article “but not the succinct one” and your page came up number one. I don’t know when your post went live but at 3 pm EST Google had it.

plonkee January 22, 2008 at 4:36 pm

Definitely stick with it. And your stock isn’t going to disappear – it’s in an index, right? So you’d need several hundred large companies to go bust at the same time. And none replace them. That’s not very likely.

Adfecto January 22, 2008 at 5:36 pm

I’m one of those bloggers who has been telling everyone “Ignore the Stock Market Pain.” Diversify asset classes, buy the index, dollar cost average, and invest for the long haul and you will come out way ahead of all of the chicken littles. I’ve lost $1k so far this month, but I’ll be sleeping soundly and so should you.

oxymoron January 22, 2008 at 7:24 pm

World markets always dip when the NYSE is down for a holiday. Nothing to worry about. Time to buy. If the tax credit comes through, the question is it better to pay off debt or invest?

As Andrew Stevens says, buy high and sell low is not a good practice.

nicho January 22, 2008 at 7:36 pm

How much interest are you paying on your car loan? or student debt? You have $7039 in savings & a newly started retirement yet you aren’t paying off a $7564 car loan? and you have $110K of student debt? and if i read this blog right you work as an administrative clerical?

Ah, you should pay off your loans first before worrying about retirement. Once your loans are gone, esp that car loan, you could concentrate on a future. you’ve got too much to worry about in your present.

i found your site because of all your clever marketing tools you left, as comments, on every single blog in the universe. sorry, i’m NOT buying your sorry-ass iPod pieces of crap.

the only thing you have going for you, is that you are married. Mrs. Whatever.

RacerX January 22, 2008 at 7:45 pm

Nicho…wow I don’t get the hostility at all. I have NEVER seen her say one negative thing to anyone anywhere. If you are jealous that she has built up a great blog and can’t handle it, take it up with your shrink, but get out of here…

mrsmicah January 22, 2008 at 7:53 pm

I don’t get the hostility either, RacerX, but perhaps Nicho was just having a bad day. Or perhaps I’m so loquacious on blogs that it pisses him/her off. Either way, obviously not everyone’s going to like the site, agree with me about things, or even think that I make good decisions. Heck, I know I don’t make perfect decisions, but I do the best I can.

Thanks for being supportive.

glblguy January 22, 2008 at 8:11 pm

Hey Nicho, how come you didn’t include a link to your blog?

Husband January 22, 2008 at 8:13 pm

And Nicho obviously hasn’t read your site. If it/he/she had, it/he/she would know the debt isn’t yours. You actually have no debt. It’s all my college/grad school loans. It’s my car loan.

And the retirement account is yours. Not mine. You’re a debt-free person saving for her own retirement who happens to be married to someone with a lot of debt.

I think it’s brilliant of you to be taking care of yourself! What if I turn out to be a total douche and divorce you? I’ll take all the debt with me, and you’ll be left with a nice little retirement account.

Laura January 22, 2008 at 8:14 pm

Take a chill pill Nicho. If you don’t like it, then don’t leave a nasty comment.

fathersez January 22, 2008 at 9:06 pm

Mrs. M,

You have the most powerful weapon on your side, time. As as your UK friend, Plonkee has pointed out the chances of your investment tanking to zero is just next to zero. And if the reasons that made you buy the investment are still the same, stick with it.

And incidentally Nicho must be having a bad day. Let us hope it gets better for him.

Andrew Stevens January 22, 2008 at 10:05 pm

Nicho is also mistaken. I wouldn’t pay off the car loan yet since you’d have to drain your emergency fund to do it. The interest on a car loan isn’t great and it’s certainly the debt I’d tackle first, but if you drain your emergency fund to do it, you raise the chances that you’ll have to take on credit card debt instead, which is worse. As for the student loans, there’s an excellent chance that you shouldn’t pay them down any faster than you’re required to anyway. The interest rate on student loans is usually very reasonable. (I’ve got student loans locked in at 2.625%. It would be foolish to pay them off when I can make 4.5% on my savings account, never mind my investments.)

Catherine Lawson January 22, 2008 at 11:41 pm

Hi Mrs M – our market in the UK always mimics the dow. I suppose we copy almost everything else America does, so it’s not surprising.

I’m looking forward to that book review.

Ron Robins January 23, 2008 at 10:06 am

Good to see you are going to review a book on ethical investing! I’ve been following the subject for around forty years.

Despite the gaining popularity of ethical investing, I’ve found insufficient good information and media coverage on the subject. So in 2002 I started a website to fill this void. In the past year or so, I’ve also been covering the latest global green and ethical investing news. Interested readers can see my site at

Good luck and best wishes, Ron Robins

paidtwice January 23, 2008 at 11:05 am

Hi Micah I love you!

Don’t tell my spouse 😉

And if you turn out to be a douche as you put it I will hunt you down. Mrs. M is a catch 😉

mrsmicah January 23, 2008 at 12:09 pm

Lol, thanks paidtwice. Micah says thanks too and he promises not to be a douche.

deepali January 23, 2008 at 2:56 pm

Buy low, sell high! As soon as I fund my IRA for 2007, I’m putting it in the market. I’ve got 30+ years for the economy to shake this off.

And big ups for looking into ethical investing. A good 1/3 of my 403b is in TIAA-CREF’s “social choice” options. I’d love to make a killing in the stock market, but not at the expense of someone else’s life.

Ryan S. January 24, 2008 at 12:15 pm

Not to plug my own blog, but I did just put up a post about how doing the smart things in a down market is the same as doing the smart things in an up market. Just go on automatic, choose wisely, and hold on. Things’ll be fine.


Benedykt March 20, 2008 at 3:34 pm

There is a mention above of long term graphs of stock prices. Maybe we need to look really long term. On a very long term view the S&P should test the under 200 range by 2025. I would certainly think of another tap at the 1987 low at least. If it doest do that then that will be because an ice cream costs $1,000 or more.

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