Join the Meeting Place for Moms!
Talk to other moms, share advice, and have fun!

(minimum 6 characters)

One-Fifth of Dow Components Under $10. How has this impacted your retirement, pension, tuition plan?Are you doing anything different?

American Express Co. on Friday became the sixth current Dow Jones Industrial Average component to see its shares trade below $10. Since the eruption of financial and economic crisis last fall, stocks large and small have been in free fall, with the Dow now pushing to new 12-year lows. Investors initially touted larger companies as the best to hold because of larger balance sheets and more diversified products, but with six of the 30 Dow components now in the single digits - a previously incomprehensible development - traders say the idea of buying large company stocks, in order to be safe, seems futile.
American Express joins General Motors, which slipped under $10 in July 2008, American International Group in September, Alcoa in October, Citigroup Inc. in November, Bank of America Corp. in January 2009 and General Electric Co., which sank below that level on Feb. 20, 2009.

Answer Question
 
grlygrlz2

Asked by grlygrlz2 at 4:27 PM on Mar. 6, 2009 in Politics & Current Events

Level 39 (106,530 Credits)
Answers (15)
  • http://blogs.wsj.com/marketbeat/2009/03/06/one-fifth-of-dow-components-under-10/

    ~~~~~
    We have lost over half of our kids 529 and our IRA's. Hubby was suppose to retire in 4 years, but may stay in a little longer now.
    I am buying more individual stocks inlo of mutual funds. That has become my new "job" while my business is on the decline.
    grlygrlz2

    Answer by grlygrlz2 at 4:28 PM on Mar. 6, 2009

  • Kid's 529 is nearly wiped out. I expect it to be gone by the end of the year. I went ahead and pulled out what was left of my 401k when I left my job because they had dropped 83% - it amounted to gas money. We have 2 others floating out there that are basically worthless, one that has been sitting since 1997 and is worth about $500 less than it was when I left the job 12 years ago - that's more than the penalties I would have paid to pull the money out back then, if only I'd known. I've resigned myself to the fact that once I'm out of school I will be starting from scratch and to count on having $0 savings and to work until I'm at least 70.
    NotPanicking

    Answer by NotPanicking at 4:35 PM on Mar. 6, 2009

  • We're continuing to buy and sell quickly (my husband is a day trader for sport!), trying to eke out quick profits. We're also heavily invested in biotech companies--some day there moment will come, and if they can hang on through this economic storm, will hopefully rebound. We don't invest in DJIA stocks--everyone else does, and they are especially volatile now.

    Fortunately for my children, my mother has established trust funds for their college educations, and (if the housing market rebounds in 15 or so years!), they will inherit literally millions of dollars in real estate from her (I'm an only child).

    So, any investments and retirement accounts we have are really for us, as our children will be taken care of.
    LoriKeet

    Answer by LoriKeet at 4:42 PM on Mar. 6, 2009

  • We followed advice given in May of 2008 ( Fleeced came out in June 08, with same advice) to bail in September if Obama was in the lead. We bailed the first week of September and went to strictly cash accounts. Still in retirement so it is not taxed, but based only on a conservative cash fund. We won't make any money until Zero is out of office, but we didn't lose 52% either.
    akinbottom2

    Answer by akinbottom2 at 4:43 PM on Mar. 6, 2009

  • Well it hasn't impacted us too much yet. We've changed our plans to focus more on getting out of debt and stock piling instead of retirement. But I'm sure we'll go back to retirement once we're out of debt :D
    Anonymous

    Answer by Anonymous at 4:49 PM on Mar. 6, 2009

  • 401k is a joke LOL. My parents have been nearly wiped out. They cashed theirs in and decided to invest in different ways and put money in places where hopefully dems wont get to it if they do end up taking 401ks to pay social security. Not like there is going to be much left since the DOW is a joke and down down. The next 4 yrs is going to be horrible.
    Anonymous

    Answer by Anonymous at 4:52 PM on Mar. 6, 2009

  • if you are thinking of taking out your retirements, please don't. you won't lose any money until you sell at a low price, keep your paper and wait it out. the street will come back and when it does you will make money again. the average comeback from a bear market is almost 120%, please do not take your money off the market or out of investments, wait it out. you don't lose any money until you sell.
    Anonymous

    Answer by Anonymous at 4:57 PM on Mar. 6, 2009

  • Hmm.... now might be the time to Buy!!! When I can afford it! LOL Not going to happen either way. We don't have stocks, bonds, 401K's, tuition funds.... nothing glamorous like that. Just a nifty little thing called a savings account.
    Anonymous

    Answer by Anonymous at 5:17 PM on Mar. 6, 2009

  • We have been buying stocks. My parents are rich and became rich in the early 80's when the economy was like it is today. They bought low and sold when it went up. They made millions. Did not hurt they bought Walmart stock in the 70s they bought 300 shares and they were worth millions when they sold them a few years back. Now is a great time to invest. There is risk but there is always risk in anything that can make you wealthy.

    Anonymous

    Answer by Anonymous at 6:47 PM on Mar. 6, 2009

  • My kids college funds are nearly empty. I stopped paying overage and now only pay the required amount into them. Pretty depressing. I have a daughter going to college in just 4 years.
    JackalsWife

    Answer by JackalsWife at 6:50 PM on Mar. 6, 2009

Join CafeMom now to contribute your answer and become part of our community. It's free and takes just a minute.
close Cafemom Join now to connect to other members! Connect with Facebook or Sign Up Using Email

Already Joined? LOG IN