Royal Bank of Scotland to investors: 'Sell everything'

I'm about 75 percent cash in the 401(k) but still invest 15 percent of my income in a 401(k) index fund. Dollar-cost averaging will mitigate almost any bear market, as will having only about 25 percent of the fund exposed to it. Maybe too conservative. But I'm old and careful.

 

I do all my investing in FanDuel.

 

As the head of the central bank for a currency that should never have been created, and the only official with real power within a political entity (the EU) very close to dissolution, Draghi has much more on his plate than the direction of financial markets. Compared to his, Chairman of the Fed's job is a breeze.

 

I only felt comfortable investing in things other than conservative index funds in 2008. Everything was so cheap it was hard to mess it up. If it got any worse, we were headed for a depression and our money was going to be worthless anyways. It was a no-lose and (hopefully) once-in-a-lifetime situation.

 

Scratchers, man. It's the only way to go.

 

Oil is spiking on news that natural gas inventories fell. It's bringing the Dow with it, up almost 300. But they just came out and said crude inventories rose, and that should quash the rally.

 

I'm putting away 16 percent of my salary toward retirement. My employer gives 3 percent, then matches another 2 percent, so I kick in 6 percent (which increases 1 percent every year on my hire date) with another 5 percent with an outside firm.

I'm going to have to work until at least 65 and maybe 67 and hope like hell Social Security is still around when I'm done to pick up the considerable slack.

If I get a job I've applied for an interviewed once (with a second round of interviews scheduled), I'll have at least $20,000 more a year to work with. That would help.

 

Why aren't you the Secretary of Treasury?

 

My company has to keep buying back stock to keep the price above $1 so it won't be delisted from the NYSE.

Can someone explain in less than 1,000 words (sorry, Ragu) the downside to being delisted as opposed to throwing away money artificially pumping up a stock price that the market will just beat back down under $1 anyway?

 

I, too, really like and respect Ragu's thoughts. He knows his stuff. What he couldn't count on was the currency manipulations of the last seven years that have falsely inflated another false bubble.

 

As of 11 a.m. Jan. 29, the Dow is up 200 points. Here is Reuters' explanation:

"Wall Street was higher on Friday after weak GDP data raised expectations that the U.S. Federal Reserve would go slow on future interest rate hikes."

Of course, had the DJIA been down 200 points, they would have simply said it was because of "weak GDP data."

Either way, they have an explanation. One that's full of crap.