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Market In A Free Fall, I’m Sitting Put, Ready To Inject More Money On January 1st

9 October 2008 One Comment

With the market crashing through the 9k mark (Dow), investors are wondering when the carnage ends.  The market is down approx 37% from its peaks a year ago.

I am going to be sitting put and just watch this thing shake out.  I recently purchased more Apple shares at $90 because I like the company long term and they have plenty of cash to finance their operations.  The only other moves I may make in the short term is sell my DUG position which is up almost 50% in a matter of weeks or cover my short Amazon position.

Other than that, I am ready to put my maximum Roth IRA contribution into my Roth IRA at the start of the new year just 2 months away.  The market may be lower or it may be higher (indicating I may miss the bottom), but that is fine with me.  My goal is to build quality positions over time.

If most of your stocks are in a retirement account and you are a long way from retirement, you’re better off ignoring the stock market because you can’t touch the money anyways so let it bounce back from the utter devastation that the stock market has become in recent months.

My guess is we’ll see a short term rally in the next few weeks just because we’ve plummeted so far.  It may be an opportunity to trim down some positions if that happens.  I could be very wrong though!  We’ll see!

My advice: work hard at your job to make yourself more valuable, continue the search for secondary income streams, stick to your budget and stick to your investment strategy.

One Comment »

  • Chris said:

    I’ll be ready January 1 too in my Roth, but I couldn’t wait and bought more this morning. I went conservative and bought jnj, mmm, de, and more pm. Hopefully I am not too early.
    Good Luck