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Friday, September 20, 2002
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Should I get back into stocks?
Back in 2001, I decided that Dubya was going to run the stock market into the ground, and I moved most of my money out of the Vanguard S&P 500 index fund and ito bond funds. As a consequence, I have not been seriously hurt by the stock market plunge. Back in July when the S&P 500 plunged to under 800, I thought the foreigners would continue to sell their stock holdings, drive the S&P 500 down further, and then I would buy back into stock market. The S&P 500 rebounded back up to 962, but is now heading downward again and yesterday dropped below 850. Should I sell some of my bonds and get back into stocks? Stocks are still higher than their historical P/E, but interest rates are so low that stocks are looking attractive. I don't trust the hucksters in financial magazines and newspapers because their goal is to get you to buy stock regardless of the prospects for the market. I would really like to know more about the money flows into and out of the stock market, as they drive the prices as much as the underlying fundamentals. If Dubya gets his way and we invade Iraq, I think oil prices will go up higher and pull the economy back into recession. For now, I think I will continue to bet that if there is a way to screw up the economy, Dubya will find it.
7:25:31 AM 
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© Copyright 2002 Unrelated Disney.
Last update: 10/1/2002; 10:10:40 PM.
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