PatriotsReign

There are many, for sure. If you truly wish to get an honest perspective of where the US economy is, then all you need to be aware of is the following sample of facts & trends;

-Bank of America's small-business default rate hit 17.5% in the third quarter of 2009.
-Credit-Card Delinquencies Rise Again
-Common assessment of the stock market (as follows)
20% chance of a durable rally
20% chance the market meanders nowhere for as long as 5 years
30% chance of of a hard 25-30% correction
30% chance the bottom is not even in
-A 26-mile-long line of idled oil tankers, enough to blockade the English Channel, may signal a 25 percent slump in freight rates next year.
-The Baltic Dry Index is collapsing

Source links below;

Credit-Card Delinquencies Rise Again - WSJ.com

The Baltic Dry Index Is Collapsing

Lower modified mortgage payments means fewer redefaults - Dec. 21, 2009

Mish's Global Economic Trend Analysis: Hussman on Valuation; Stocks Higher? Bulls Dance On Edge Of Cliff

Stay EXTREMELY cautious on your 401k's. Especially if you've gained a lot in 2009 and/or close to retirement. But please don't take my word for it....consult your investment advisors.

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"No one walking this earth knows what is truly righteous"

BelichickFan

I'm real close to moving most of my 401K to Cash but I am greedy and hate to miss one last move up before I do it. I do know that most seem very bearish on bonds and mixed on stocks for the next period of time. When I do my kids' educational savings money for the year next week I really don't know what to do. Bonds look bad, stocks look risky. Money Markets are earning next to nothing.

ljuneau

I have a question related to BF's post. When inflation starts poking its ugly head, I understand that the best hedge is owning assets of some type, like gold. Is owning stock, even via mutual funds, considered ownership of assets? I'm just trying to determine if being in the market during an inflationary period is good or bad. PR can you answer that?

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“If you have been voting for politicians who promise to give you goodies at someone else's expense, then you have no right to complain when they take your money and give it to someone else, including themselves.” ~ Thomas Sowell

BelichickFan

If shmessy is around he can give you the best answer; but commodities are good during inflation and also TIPS (Individual - TIPS In Depth) which you can get through most/all mutual fund companies. I plan to move some of my Vanguard funds to TIPS at some point but I don't think we'll have inflation until the employment thing changes around quite a bit and that looks a way away.

ljuneau

I agree, it may be several years before inflation rises, but I'm trying to do my homework now to determine an appropriate course of action.

Our 401K plan includes about 15 mutual funds - I'll take a look and see which of these hold TIP Securities. Thanks for the link.

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“If you have been voting for politicians who promise to give you goodies at someone else's expense, then you have no right to complain when they take your money and give it to someone else, including themselves.” ~ Thomas Sowell

PatriotsReign

My ego would love to answer that question, but I'm not an investment advisor. If I was one, I would still be nervous about giving advice during times such as these.

I know that real estate is near the top of the list during heavy inflation. But I'm not biting on your request other than that comment Juneau. no disrespect, but there are many more qualified than I to answer that for you.

I will also add that inflation prolly won't be seen much at all in 2010. I just saw that BF & I are on pretty much the same page...for whatever that's worth!

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"No one walking this earth knows what is truly righteous"

PatriotsReign

In many ways, it's like making "one last bet" when you're up at a casino, isn't it?

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"No one walking this earth knows what is truly righteous"

ljuneau

Let me rephrase my question a bit then with the understanding that this is not financial advice.

Is a stock considered an asset? Does it dependant on what type of stock? And do stocks typically rise during inflationary periods?

__________________
“If you have been voting for politicians who promise to give you goodies at someone else's expense, then you have no right to complain when they take your money and give it to someone else, including themselves.” ~ Thomas Sowell

PatriotsReign

Stocks typically rise during inflationary periods because inflation "typically" ocurrs during booms. And stocks always (as a whole, not individually) rise in booms. inflation is usually the result of increased demand and that almost always happens when unemployment is low (boom). But there are exceptions such as the early 80's when both inflation & unemployment were high (stagflation or the wage-price spiral).

All we have are "typical" scenarios based upon history. But there are exceptions to these generalities.

As for whether a stock is an asset...yes, of course its an asset. But not the same type of asset as real estate or gold. But your getting away from my area of experience and an investment advisor is your best bet to discuss various types of assets.

I'm discussing the economy and your discussing investments. Stocks aren't the economy...not even close.

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"No one walking this earth knows what is truly righteous"

NEPatriot

US banks are in big trouble right now

Morgan Stanley defrauded investors | Reuters

UPDATE 1-Chinese firm says won't pay Goldman on options losses | Reuters

If these news are bad enough, this one is

http://www.reuters.com/article/idUSTRE5BT06O20091230

Here is the ending of GMAC after Obama gave them 3.8 billion dollars. It happened within minutes. It's scary!

http://www.washingtonpost.com/wp-dyn...l?hpid=topnews

Here is the SAD part. One bank SCREWED everybody UP BIG TIME. Yes, Obama is allowing this ***** happening. Do you wonder why everything is so fcked up?

http://www.nytimes.com/2009/12/24/bu...goldman&st=cse

Why does Obama let these arsholes do what they want?

http://www.bignews.biz/?id=804337&ke...s-manipulation