S&P 500? Will The Market Continue Down?

I wanna keep this light but … it’s kinda tough when there is so much non-growth oriented (see, I avoided saying ‘negative’) news on the economy.

I have been looking for a bounce in the stock market, maybe back to 1000-1050 in the S&P500 index.  It is looking like a tough fight as the overall trend in the market is down.  One of THE most important things you can learn as an investor is (memorize this):

YOU MAKE MONEY IN THE STOCK MARKET BY INVESTING WITH THE DOMINANT TREND IF YOU INVEST AGAINST THE TREND YOU WILL LOSE MONEY.

The we are in mess started with real estate and real estate has to start a recovery for us to be heading back to an even playing field.  And real estate market is not coming back anytime soon.  I know a lot of Realtors (I am a Broker myself).  Most of them are good people.  They made good money in the boom.  Nearly every one is hurting now.  A good number of them think properity is just around the corner….NOT!

Thank you Mr. Hoover but, I don’t think so.  Futures are looking like late 2010, maybe even 2011 before that happens.  Sometime preceding that is when the stock market will have truly bottomed and a new bull will begin.

The S&P500 COULD really get to 500 before all is said and done.

Look out below.

Building Wealth Daily Nov 15 08

Here are today’s offerings from the blog-o-sphere on building wealth.

Property Investments For Anyone Building Wealth
By admin
Anyone considering building wealth needs to take into consideration the many benefits that can and do come to those that invest in real estate. They need to realize the true benefits of security and value that come from property … (MTR Comments - I haven’t yet figured out the deal with this blog … is it one person or an article submission factory (?).  In any event, good stuff today on real estate investing.)
Your Wealth Guide - http://www.yourwealthguide.com/

Building Wealth through Non-Conformity
By Jose DeJesus MD
Here are some simple guides to breaking away from the patterns that block most people from building wealth.  Physician Entrepreneur - http://physicianentrepreneur.com/

Wealth is a Choice: What Do Most People Think

By admin
I give a simple definition for wealth in my free e-book and a plan to get you on the road to building wealth. Donald Trump is really no different than any of us, but as he grew up he watched his father build an empire in real estate as …  (MTR Comments - This guy reiterates one of my standard lines from all of my presentations: Becoming wealthy is a choice.  He has a few too many ads for my taste however).
Infinite Wealth - http://www.moneykicks.com/

Strategies by the experts?
By nycbull212
… stocks this is a game of leverage but I would essentially have to have 100 properties flowing $100/mnth to even get excited about the return and that seems to be hard to achieve… so REAL strategies on building wealth in this game? (MTR Comments - Pretty good collection of comments on real estate investing). BiggerPockets Forums - http://www.biggerpockets.com/forums/

Good for Stocks, Bad for Real Estate

As I was noting the possibility of in my previous post, I think we hit the double bottom and can expect the stock market to trend upwards for awhile.  Could only be a few months, could be the better part of the next 12 months.  Who knows.

Thank God … whereas I am only down (as of today) just over 10% in 2008, that’s a big enough number for me to be pissed off about it.  I have bet heavily on physical precious metals and the ETFs that hold them.  Yesterday’s brutal ~$50 drop in gold and a commensurate % drop in Silver has been killing me (and it continues today).  Goes back to hedge funds deleveraging and other conspiracy theories which I think will settle out and result in a huge run in gold and silver.

I am indeed holding my breathe …  this is not for sissies.  Turning blue that is … Read more

Patience is … Profitable

It is my observation (and that of others), that patience in the current market (most ANY market …real estate, stocks, gold, etc) is not only a virtue but profitable as well.  This market is a bear (literally and figuratively) in testing one’s patience.

It has been killing me to hold on to the junior mining company stocks that I own.  They were hurting even before this lastest calamity (they have barely budged on mining stock upticks resulting from the recent jump up in gold and silver).  Selling them now is just stupid.  Read more