My own private market update

Well after I lost roughly 46% of what I had put away in my Roth IRA I have been slowly climbing instead of digging with a portfolio shuffle that I think will work for both the short term and long term. I am now firmly only at a 26% lost. That means I have raised my funds roughly 20% from there worst point in the past 2.5 months. How did I do it, mostly buying two stocks that are a couple of the only companies that will do well in this economy Kroger (KR) and Walmart (WMT). Not to mention timely purchases of Baldor (BEZ), Philips Morris International (PM) and Vanguard Total Market Etf (VTI). I am buy no means a savvy investor again (was I ever) but I resolved late last year to make conservative long term purchases in the market. Also, I am going to go forward with an investing strategy which I will explain someday in a later post but the biggest impact is going to be anchoring ETF's like VTI and smaller investments for long term stocks using principals that I have laid out over the past year in this blog.

I haven't even begun adding to my 2008 Roth yet, so a big plop of money is going to get infused soon into my future funds and a close scrutiny of the market will litter my posts once again.

Ticket to Crazytown: Market Thoughts...

Well I haven't updated on stocks recently, but should probably say that I went to all cash except for Baldor (BEZ) Wednesday morning and then picked up one of those two stocks that I have been eyeing Phillips Morris International (PM). I have been thinking a lot about the market and how to make safe money in this our current economy and have come up with a couple of thoughts.

The first being I am going to stay away from ETF's until there are real signs of market improvement. This may sound crazy, ETF's by nature are supposed bring some stabilization, but all the ones that I have held and were eyeballing have been slowly deteriorating in share price. I am negative 20% on my account because of it. When signs truly trend a little better I will buy VTI and PWV again, but for now I am going to wait.

The second being that there is some real values out there right now. If you are a contrarian investor you should be having a field day. I am trying to find some real hard and firm value stocks with good economy proof basics. Baldor is still one of those stocks for reasons that I have spoken about before. Philips Morris International is one that should be both economy proof to the US and also provide long term growth across the world, and because smokers smoke. The others that I have been looking at is Kroger (KR), Intel (INTC), and Ship Finance International Limited (SFL). I am searching for more, but I am looking for a solid long term companies.

I am interested to know what other people think of what has happened with the economy. I have mixed feelings for the government's bailout / takeover / whatever that has occurred this week. On the one hand I am glad that they are doing something, I think that the current financial market dictates that this needed to occur. I don't like that it is my money, but I think that saving us from a complete financial collapse is a good thing. On the other hand, I am pissed that we all didn't do something six months ago when we knew that this was a possibility and when it would cost us a lot less. Beware now of the hidden inflation that will now occur. I am unsure how it will affect the everyday person, but we can't keep throwing money at sinking ships and expect for the return to add value to the economy. I am nervous that is for sure.