Tired of Caring

[Conveyor Belt]

Today, the Dow is up 300. WTF? I thought we were headed toward a certain recession. In fact, haven't we been headed toward a recession everytime the Dow takes a little dip? However, it's still very high.

And oil prices are hovering around $100/barrel. Wasn't gasoline $3.50/gal in hattiesburg when it was around $80 a barrel? What gives?

I don't give a shit anymore. What can I do about the speculators reaching into my pockets? More importantly, how can I make money on this fiasco. It's complete and utter bullshit.

[aaron]

I would venture to say that the DOW and oil is up because of how good foreign markets are doing (and the US companies that are in them). So, the stock market and oil isn't as vulnerable to a recession. Your pay check and how much it will buy is, however.

[CircusRide]

Gas was never $3.50 a gallon in Hattiesburg.

[mi_nombre_es]

Today, the Dow is up 300. WTF? I thought we were headed toward a certain recession. In fact, haven't we been headed toward a recession everytime the Dow takes a little dip? However, it's still very high.

And oil prices are hovering around $100/barrel. Wasn't gasoline $3.50/gal in hattiesburg when it was around $80 a barrel? What gives?

I don't give a shit anymore. What can I do about the speculators reaching into my pockets? More importantly, how can I make money on this fiasco. It's complete and utter bullshit.


We are not heading to a recession (not yet at least). The housing and credit crisis is being balanced by the Oil price increase and keeping our economy moving up and down in greater rates than normal. The American economy is always growing but there are times when it moves up and down in a rapid pattern. Just gotta go with the flow.

In times like this, if your investing for the long term (with real money). You want to look at Dollar cost average. This is where you are investing say $100 a month and every month that $100 buys shares. Well Month 1, it might buy only 10 shares, but month 2, it buys 20 shares and month 3, it buys only 10 shares again. This is because of the up and down in the market allowing you to buy more shares. So in this example:

Month 1: $100- 10 Shares @ $10 each
Month 2: $100- 20 Shares @ $5 each
Month 3: $100- 10 Shares @ $10 each


So in total if you take your money out in Month 3, you have 40 shares and the value of each share is $10, you have a total value of $400 but you only invested $300. So you have a profit of $100. This is how an up and down market works for investors. In my Opinion, this is the best market to purchase in. Another example: This time with a market that is going up with a down on the end, because no market is gonna constantly be up over a long period of time, there will be some downtime. ($100/month towards buying shares):

Month 1: $100- 10 Shares @ $10 each
Month 2: $100- 5 Shares @ $20 each
Month 3: $100- 10 Shares @ $10 each

So you have invested $300 dollars, you have 25 shares valued at $250, so you have a net return of -$50.


As for the cost of oil in relation to gas prices. you must consider the fact that the demand for gasoline hasn't been as huge as it was last year (can't find the exact figures atm but I will look for them when I get home). This coming Thanksgiving/Christmas will see huge jumps in gas prices due to the increase demand. When Demand exceeds or gets close to exceeding the supply of gas, the price moves up faster than just if the price of Oil goes up. Gotta love Supply and Demand =P


Example of Supply/Demand in another form:

New Elmo doll comes out in time for Christmas, Everyone is buying one. Stores are selling out and as Christmas gets closer and supplies dwindle, makers of the dolls will charge more because they know the toy stores will pay more because it is a hot selling item. Likewise, the Toy stores will jack up the price, not only because the maker did but also because they know since it is selling out, it must be a very popular toy and people will pay whatever they have to, to get this item. But as the supply increases and the demand decreases, toy stores will reduce the price in order to keep the same profits off the item by moving more of the same product.


Hope this helps explain some stuff =)

--Mi_Nombre_Es

[CircusRide]

Well, if the Fed downs interest rates, inflation rips us a new. If the fed ups interest rates, the housing/credit market rips us.

[Baloo]

I just worry about the American dollar - it grows weaker each day... I remember when it had one of the highest monetary values. I know that other countries finding and developing huge oil reserves (Russia, China, Africa) and the supply and demand for oil, outsourcing of US jobs and businesses (which had led to economic booms in other countries) and enemy political agendas are all driving the dollar down... I have no idea what can be done to bring the dollar back up...

[countrygirl]

I wish I could have taken all the money that hubby and I invested in social security and put it in a good mutual fund. We did have a 401k and other retirements that have done much better than ss. My main problem is that I am retired and yet not old enough to draw social security. If something happened to me tomorrow...that money that I put in SS would be GONE. If it was in a 401k that was rolled over, at least my kids would reap the benefits....

[Hob684]

I have no idea what can be done to bring the dollar back up...


I do.

or atleast a step in the right direction.



but Sue, fuzzis, and amandah like to swarm like flies when i bring it up....

i'll just reference you to my sig line.

[dollfus46]

I wish I could have taken all the money that hubby and I invested in social security and put it in a good mutual fund. We did have a 401k and other retirements that have done much better than ss. My main problem is that I am retired and yet not old enough to draw social security. If something happened to me tomorrow...that money that I put in SS would be GONE. If it was in a 401k that was rolled over, at least my kids would reap the benefits....

Nuts ain't it? Wouldn't be gone. Some baby boomer would get it. That should chap your cheeks. federal government freaked when the private social security issue came up. Nothing in the SS fund now but an IOU. Your gubment done spent it on other stuff.

[dollfus46]

I do.

or atleast a step in the right direction.



but Sue, fuzzis, and amandah like to swarm like flies when i bring it up....

i'll just reference you to my sig line.

Huey Louie and Dewey?:-D

[Hermione]

Don't forget though, that Social Security pays more than retirement. It pays disability and survivor benefits as well. My parents and BabyBro would never have made it without Social Security disability when Daddy had a massive stroke at 44. The trouble with the retirement benefit is that the whole program was designed in the 30's when life expectancy was much lower -- 65 was old. It was never meant to provide more than a floor, certainly not meant to provide a total livelihood for twenty or thirty years.

[CircusRide]

Just saw a story that says gas will increase .20 a gallon over the next two weeks. 3.20 a gallon.

[TheCapitalist]

I wish I could have taken all the money that hubby and I invested in social security and put it in a good mutual fund. We did have a 401k and other retirements that have done much better than ss. My main problem is that I am retired and yet not old enough to draw social security. If something happened to me tomorrow...that money that I put in SS would be GONE. If it was in a 401k that was rolled over, at least my kids would reap the benefits....

You are right, but it will never happen. The gov. won't allow it. That would mean you control your money and destiny, not the gov. They need to 'launder" it for you and make it disappear in the wash of gov entitlement programs. Big shell game w/ you the loser.