MSNBC

A Real Rally?

Five reasons to be careful about getting back into the stock market.

MSNBC
Jan 8, 2009 | Updated: 2:07  p.m. ET Jan 8, 2009

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  • Posted By: SimpleSimian @ 01/10/2009 9:07:30 AM

    I made my first million by investing in the stock market back in the late 1990's. I got out of the market iseveral years ago for a reason -- I no longer trust the US economic system. Now, I'm waiting to hear that oil is not going to be traded in dollars and a total collapse of the US currency will take place. Who, in their right mind, would trade with the US? By the rapid decline of the stock market, fewer by the day. Get out and stay out!

  • Posted By: archmsu @ 01/09/2009 3:56:35 PM

    Trust Wall Street again? I don't think so...................

  • Posted By: curryjm @ 01/09/2009 10:10:11 AM

    This article is not good advice. Assailing the "buy-and-hold" strategy in favor of "market timing" is ridiculous. And people who stop contributing to their 401(k) are simply missing the boat. They are missing the opportunity to purchase mutual funds and stocks at low prices. They are also paying current income taxes on the income they would have otherwise deferred in their 401(k) accounts. So, what are they doing with this extra income anyway? Buying wide-screen high-definition televisions and blue-ray players? Or are they putting the money into low-paying money market and savings accounts? At least shelter the income from taxes! If people are afraid of stocks and mutual funds in their 401(k) accounts, then they should channel their new contributions into a money market account or a CD; at least income tax deferral can be preserved.

    • Posted By: mikew999 @ 01/09/2009 1:55:54 PM

      I couldn't agree more with your comments. The Citi investment head is out of touch with reality---does he really expect the average joe to trade? And, it's always easy to look back in time with 20/20 vision.

    • Posted By: profche @ 01/09/2009 11:45:00 AM

      curryjm, you assume that there will be any value left to the 401k or ira in the future. For every dolllar I've put into my IRA, I now have 50 cents. Would I have been better off to have that dollar taxed at my current rate (should I have kept my money) or hope that the market will outpace inflation (by investing it in the IRA)? I've lost several years worth of returns, and even with a 10% return on that IRA now it will be ten years or so before I get that IRA's value (compensated for inflation) back to the value of the money that I put into it.

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