Discuss Market Comments 12/13

Wall of worry?- Stocks continued their move higher on Friday as the S&P 500 closed above the November high for a 3rd straight day, all but confirming the breakout....

Market Commentary for 12/13/10

Current Daily Market Commentary

 

[Stoney63]

I read an article a couple weeks ago that said to be on the lookout for stocks to crash on Dec 15th if the Bush Tax cuts aren't extended. The reasoning was the Capital Gains will go up to to 20 % if they aren't and why Dec15th was that's when many options come due. The author thought they could crash to 12 months lows. Since they are still up in the air, I'm wondering if it wouldn't be a good idea to move everything currently in stocks to the C fund temporarrily. At least until the situation is more firm. I'm 100% in S now, and hope to retire this next year and can't afford a loss like I had on paper a couple years ago.

 

[tsptalk]

I think you meant move to the G-fund but in your situation, playing it safe is never a bad idea.

We talked about this a couple of weeks ago (http://www.tsptalk.com/mb/showthread.php?t=8894). Hopefully they can get the extensions extended within the next couple of days, but if it makes you nervous, by all means, preserve your capital.

 

[Stoney63]

Yes, that is correct, I meant G fund.I have been 100% S since I started back in 2003. It's taken a long time to recover, but I'm finally getting there. I'm right at +20% now, but was as low as -40% back when. I'm thinking to dump everything into G until it settles out then buy back in as soon as it does. Especially if it does go to hell for a few days/ weeks. Could end up making a killing in the long run.

 

[tsptalk]

Wow! You really rode it out. What a trip!

Perhaps you can move a portion into G?

 

[Stoney63]

I did it-- scared the hell out of me, but it dropped so quickly there wasn't much I could do. Then its been going up fairly consistently I haven't wanted to trade too early, but the reasoning is so good, It's hard not to right now. Guess I'll take a look at it tomorrow before 12 and make a quick decision then.

 

[Guest]

I traded out everything to the G fund this morning too. I would like to get back in (S, C, & F) 5% lower from here.

 

[tsptalk]

There are enough warning signs that suggest a 5% pullback is possible, but it never seems to be as easy as it sounds to do.

Good luck!