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  • James Kostohryz Positions For 2012: 100% Cash The Only Way To Play This Market [View article]
    Lol Tony, I have to say, I'd rather be fat than adhere to either of your solutions! ... as it is, I try to keep it under control with less drastic measures.

    I've learned a lot reading all the comments here in the past few days. and keep thinking of things I want to say.

    There is one stock I've held for over 20 years, it's ALE, used to be Minnesota Power in the olden days. Only reason I still have it, it was left to me by inheritance, and the utility company held the stocks, and the dividend was set up to reinvest. I sort of forgot about it, thinking I would cash it in at some point down the road, if I needed the money. It was wort about $40K at the time.

    A few years down the road, I received a notice in the mail that the stock was splitting. Meant nothing to me, I checked with a friend who worked for a bank, he said, don't worry about it. So I didn't. I suddenly owned twice the amount of stock, and while the price went to half it's previous amount, within about a year, it was up to the amount it had been before. Not a bad deal!

    A few years ago, one of their holdings called ADESA spun off, and we were paid out a nice sum of money, since they went private, so not stocks to be had. It was enough to buy my daughter a house, cash.

    Today, I checked and the stock is at an all time high again... so through the years, that $40K has developed into about 10 X principal, with reinvestments, splits and spin offs.

    This may not be a good example, but nevertheless, it is one of those lucky instances, where - had I gone to cash during the market crashes - I would have missed out on a nice little nest egg.

    It's still sitting there in MN, waiting to be left to my daughter. I made her promise to not touch it, unless in dire need. ;)
    Dec 23, 2011. 10:39 AM | 1 Like Like |Link to Comment
  • James Kostohryz Positions For 2012: 100% Cash The Only Way To Play This Market [View article]
    I wanted to add that one financial I will be buying soon is MA. That one is doing great, from my observation.

    Also, the diet comparison doesn't work, I'm an old pro at dieting. ;) You can't stop eating, so if it's addictive to you, you're at a loss. But you don't have to invest in stocks, I mean, that's just a very silly comparison.
    Dec 23, 2011. 10:13 AM | Likes Like |Link to Comment
  • James Kostohryz Positions For 2012: 100% Cash The Only Way To Play This Market [View article]
    Good to know, and very sensible. Has there been an article before this one, to attract this many comments in a little over 24 hours?? ;)
    Dec 23, 2011. 09:51 AM | 1 Like Like |Link to Comment
  • James Kostohryz Positions For 2012: 100% Cash The Only Way To Play This Market [View article]
    Then why not put that in the title ... well, I know why. It's so addictive to come and argue with you, lol ... all in good fun!!
    Dec 23, 2011. 09:49 AM | 1 Like Like |Link to Comment
  • James Kostohryz Positions For 2012: 100% Cash The Only Way To Play This Market [View article]
    Totally agree and blue chips to me are stocks like MCD, PNG, JNJ, KO, ... probably not the right label I used, forgive me ... but does that explain a bit better? I would definitely add oil to that, in small doses. I did a quick glance at 5 years averages, and all of these stocks are up, some of them WAY up, over that period of time. And have been paying dividends for the entire time, most have increased divis. That's my strategy, doesn't work for everyone obviously, but for me, with the amount of money at my disposal, it works fine.
    Dec 23, 2011. 09:09 AM | Likes Like |Link to Comment
  • House Republicans cave to Pres. Obama’s demand for a two-month payroll tax cut extension. House Speaker Boehner says his side has ended its opposition to the extension in return for new language in the legislation to make it easy for business payroll staff to process the tax cut.  [View news story]
    Actually it was all about pushing through their pork (pipelines) with the usual cut throat tactics ... who gives a shit about the public, certainly not Congress!
    Dec 23, 2011. 09:06 AM | 1 Like Like |Link to Comment
  • James Kostohryz Positions For 2012: 100% Cash The Only Way To Play This Market [View article]
    Thanks James, I do understand and have taken the stance of waiting out the market if it makes sense. That's the most important measure for me at this point in life: does it make sense? Which is of course very subjective. For some, it makes sense to cash out, no matter the consequence, just for peace of mind. For others, the risk is worth it, esp. if there is time for recovery in the near future. And that's where we differ - I see the cup half full, you seem to see it half empty. We might both be wrong, but I see us as both being right, in our own way.

    To be honest, I think history proves me right. Every crash has been followed by a recovery. Is it better to cash out and then re-enter the lower market? Or hang in and go down and up from the bottom again? Not sure, guess it's a matter of preference.

    Have a great holiday,
    Barb
    Dec 23, 2011. 07:10 AM | Likes Like |Link to Comment
  • James Kostohryz Positions For 2012: 100% Cash The Only Way To Play This Market [View article]
    Hey Perk,

    thanks for what you said, I sense a kindred spirit. Common sense and patience, are my motto. I think James has good intentions, but is a bit black and white, I understand going to cash, but the 100% is a bit off putting, esp. when this strategy is nothing new on the horizon. Afterall, we've been in this situation before, many times. See this from just last year http://bit.ly/vpVB2d

    I do like your idea of a mentor, I trade with Schwab and have found their analysts pretty informative, I can call any time and get help with the trades I want to make. They have also saved me a few times when I made wrong entries, for instance, selling at a too low a price, by leaving off a 0 ... I'm impressed with them.

    Other than that, I try to read as much as I can, and let my intuition guide me on whom to listen to. I think emotions and greed are the most difficult things to temper, for some of us. I haven't put everything in the market, but a lot of money at this point. I have a long history of watching the market, and some day I might share my story, giving me an unusual vantage point and some insight at a young age, that many might not have had the privilege to.

    Hope you and everyone here has wonderful holidays,
    Barb
    Dec 23, 2011. 07:01 AM | 1 Like Like |Link to Comment
  • House Republicans cave to Pres. Obama’s demand for a two-month payroll tax cut extension. House Speaker Boehner says his side has ended its opposition to the extension in return for new language in the legislation to make it easy for business payroll staff to process the tax cut.  [View news story]
    Haha.

    Just saw BOhner speaking, that smirk has been wiped right smack off his fake tanned face ... nice ;)
    Dec 22, 2011. 06:34 PM | 3 Likes Like |Link to Comment
  • James Kostohryz Positions For 2012: 100% Cash The Only Way To Play This Market [View article]
    Makes no sense at all, but never mind, I can detect the brain washing in your words. Listening to much Fox News are you>?
    Dec 22, 2011. 06:14 PM | Likes Like |Link to Comment
  • James Kostohryz Positions For 2012: 100% Cash The Only Way To Play This Market [View article]

    Please explain how this is a prelude to Obamacare? Thanks in advance.
    Dec 22, 2011. 05:35 PM | 1 Like Like |Link to Comment
  • James Kostohryz Positions For 2012: 100% Cash The Only Way To Play This Market [View article]
    If you buy blue chips, they will come back ... always. History has shown that. If they pay a dividend and you space them well, you will have income all year long, no matter what the market/principal does. That's what I'm trying to learn and implement. Would that not work for you, Boubou?
    Dec 22, 2011. 04:23 PM | 3 Likes Like |Link to Comment
  • James Kostohryz Positions For 2012: 100% Cash The Only Way To Play This Market [View article]
    " ... better to have loved and lost than never to have ....." ooops, wrong metaphor!! ;)
    Dec 22, 2011. 08:21 AM | 3 Likes Like |Link to Comment
  • James Kostohryz Positions For 2012: 100% Cash The Only Way To Play This Market [View article]
    James, I had been "100% cash" for the past 25 years. I am extremely risk averse, to a fault, or let me say, have been in the past. My child is grown and self sufficient at this point in my life, and I have a few more years to work and grow my retirement fund. I was looking at my IRA back in the spring, and it was growing at about 0.25% per year. I made a rash decision and put it all with Schwab.com, and have accumulated around $20,000 since then. However, the problem is (as you have pointed out quite eloquently many times) it's very risky, and in my case, I went in like a complete idiot (well, not complete, but very uneducated in terms of investing) and made some trades that turned sour, and I'm still holding on to them. Haven't lost any of my capital so far, but have to give up most of my profits for the year, if I choose to cash out.

    what would you do??
    Dec 22, 2011. 08:09 AM | 2 Likes Like |Link to Comment
  • James Kostohryz Positions For 2012: 100% Cash The Only Way To Play This Market [View article]
    Ok, after reading all the comments this morning, I have to admit there is some value to cashing out at this point in time. However, what if it means a loss of ... lets say $15,000, because investments are down at this moment, but we know they will be up again at some point in time. Would you still cash out? Or wait and hope and pray ... that the evil Germans wil come around last minute, as they usually do. Because they have no choice. ;)
    Dec 22, 2011. 08:04 AM | 1 Like Like |Link to Comment
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