I just opened a Scottrade account - what should I buy?

[yast]

- the market can't stay this low much longer

on wich facts do you base this opinion?
almost highest national debt since 50 years,us trade deficit widening every year,inflation rising and the continious devaluing of the greenback,slow gdp grow,sub prime disaster and a ongoing war wich will bite you in the arse
do i hear recession?
let the dollar slide more and see how the foreign money investors pull out their cash to switch to non-$ accounts.more $ on the market to sell.
see how the oil exporting countrys are switching to euro pays instead of the $.less $ buying power.
let the chinese get sick seeing their 1 trillion $ bonds losing more and more value and dumping them on the open market,more $ to sell.
economy101:supply and demand regulate the markets,nothing else.
you know what happens when there is too much supply ,right ?
this isnt the end,its the beginning and the party still has to start.
my 2 cents ? the us will need a least a decade to get out of this shit,if ever and if you dont vote a other fucker like the actuall president.
say thanks to the bush family

 

[BrooklynBlue]

With interest rates coming down and home equity lines less expensive, people might be doing more home improvement. You could do some research on companies like Home Depot or Black and Decker, and diversify away from tech, where you presumably make your money
JMHO

While rapidly declining interest rates may provide a dead cat bounce in home buying, I don't think there will be a sustainable impact on home-improvemnet retail.

It was the housing price bubble that spurred the bulk of home improvement spending. No one is going to drop $80k on SubZero appliances, soapstone counters, etc if they will get less than 1x return in the home value.

HELOCs are meaningless if the value of your home is stagnant or declining, regardless of interest rates.

In essence, the piggy bank is quickly disappearing and the only home improvement that retailers can count on are essentials like fixing a busted water heater, not the high-end aspirational remodeling circa 2002-2006.

 

[Webferret]

dow's going to 8000. "100%, guaranteed".

 

[oziman]

See what style of investing you're choosing.

Read "The Intelligent Investor" by Ben Graham.

Look overseas or alternatively foreign companies in the us.


just some thoughts.

 

[blackthought286]

The financial markets hasn't been about economy 101 supply and demand since the introduction of the derivative and other similar financial instruments. I have no problems with options, CDO's, futures, fowards, and swaps but they do make the market more murky and harder to predict for the average investor.

Its no longer just the companies financial statements that are swaying the markets. And its also not just swaying factors such as the value of the dollar, gdp ratings and the emerging economies. Those have a big effect but it's also the effects of these extra instruments. The big part of the sub prime mess that is happening now is not just people not being able to pay back the banks. Its the CDO's that were issued that were backed by these mortgages. Now instead of just taking a loss with the person backing out of their deal as far the house goes the CDO that were propped up by them also lose value and lose their rating.

If you are investing in the long term these issues have less of an effect. But if you are any kind of trader these are real issues that you have to worry about.

 

[blackthought286]

Intelligent Investor is a great book for value investors. Actually everybody could learn from that book.

 

[deStone]

banking sector is taking a hit because of the mortgage stuff, especially regional banks. May go lower but long term, probably a smart move on banking stocks. Just something to look into ...

 

[BeerHat]

I've been done well with an energy spdr , but I bought when oil was around $50.

 

[MMG]

While rapidly declining interest rates may provide a dead cat bounce in home buying, I don't think there will be a sustainable impact on home-improvemnet retail.

It was the housing price bubble that spurred the bulk of home improvement spending. No one is going to drop $80k on SubZero appliances, soapstone counters, etc if they will get less than 1x return in the home value.

HELOCs are meaningless if the value of your home is stagnant or declining, regardless of interest rates.

In essence, the piggy bank is quickly disappearing and the only home improvement that retailers can count on are essentials like fixing a busted water heater, not the high-end aspirational remodeling circa 2002-2006.

I understand what you are saying, but because home prices are not increasing, families that were looking to flip to expand will probably think twice, since they cannot necessarily sell theirs at the price they want/need, so if you are going to stay in the home, it makes sense for the fixup.
Again, JMHO