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Did I say Interesting Times?

in Debts, Federal Reserve, Government, Mistakes, Stock Market

Financial Meltdown Continues (aka I really don’t like Mondays)

Well, just when you thought it was safe to go swimming in the Amazon, a fresh batch of piranhas come out and chew the living daylights out of you. Yesterday, I watched the TSX dip below 10,000 for the first time in almost 6 years, and while there was a ‘recovery’ of sorts by the end of the day, the roller coaster continues to swerve, dip and dive making even the most ardent investors sweat a great deal. 

My RRSP as it stands now seems to have lost about 20% of its value, and it may well dip a lot lower before things start getting back to normal. Is this a concern? Not really, since the money is for my alleged retirement, which is many years away, and most of the equities I own are fine (OK some of the banks I wonder about), but I am not planning on getting “Whip Sawed” as Michael James points out. I will continue on the course I have chosen for now.

Why Am I not Financially Panicking?

Well, I am trying to be more optimistic for one thing (yes, I am not succeeding all the time), but I also am about to inject a great deal of cash into my retirement, to be invested in some fashion, and for once, I think I may enjoy shopping for bargains in this BEAR of a market. 

My wife and I (Mrs. C8j as we call her) will need to put together a plan for investing and put together a budget with some “bear” assumptions to get us through to next year, with the severance I have just received, but with those decisions will come the interesting questions of where to invest? Most of the financial bloggers I know will be getting that question asked to them (once I can get them over a beer or two), and that is one of the reasons I am smiling during this grim financial time.

Could it get worse financially?

Never ask that question. Every time in my life that I have stated, “It can’t get any worse…”, it has, so I have stopped asking that question, or making that statement. Follow the lawyer’s credo in this situation, “Never ask a question you don’t already know the answer to…”.

Remember many things can happen, the Horses Might Even Sing!

Election?

Who(m)ever inherits this mess in the U.S. or Canada, I wish you good luck, because you are being left holding the bag, and as usual, the culprits (as it were) are enjoying the fruits of their labours, on our nickel (not that I am pointing a finger of blame, just that I know someone made money on this, and they aren’t giving any of it back).

For the rest of either electoral race, the simple answer to any other issue is

It’s the ECONOMY STUPID!

to paraphrase Bill Clinton’s campaign of 1992. Nothing else matters, now.

Tomorrow

Tomorrow watch for a celebration of sorts on this blog, celebrating 4 years of work and the fun I have had doing it (unless today brings even worse news, then I’ll push it out another day).

{ 1 comment }

  • Lee October 7, 2008, 9:33 AM

    My feeling is that if you’re taking advantage of dollar cost averaging, then the markets being low aren’t really a worry.

    I myself am many years away from retirement and am extremely happy I’m able to sink a ton of investment money in such a low market at the moment.

    Reply

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