As with everything I do I have a contingency plan. It's like going to war, when war is declared, you pull out a canned plan and make the adjustments as needed. My plan was canned back in December 2009 and I blogged about it.
Plan A: Avoid the loss in the first place (duh). I could have done this, but just couldn't seem to find a good opportunity.
Plan B: Look for a 50% retracement, bump up contributions to lower the cost bases per share. For those who had the stones
You have to go back to December 2008 to see this much carnage in one day. And it's not about the downgrade anymore. It's about the economic climate moving forward.
There's little reason to go into any kind of daily economic read. The charts will easily speak to that. But I will point out that the Volatility Index spiked 50% to 48.0. You have to go back to May of last year for that kind of reading. Gold surged 4% and looks to continue to
Friday was a mixed day for stocks, but of course the big news came after the close on Friday when Standard & Poor's downgraded the credit / debt rating of the U.S. from AAA to AA+. The futures are sharply lower as we head into Monday's trading.
For the TSP, the C-fund slipped 0.06% on Friday, the S-fund dropped 1.72%, the I-fund gained 0.49%, and the F-fund (bonds) fell 0.54%. For more on the weekly and monthly returns,
And if we get one, is it a dead cat?
What a difference a week makes. I never used to have trouble finding my seven sentinels on the tracker. I always knew where it was. Just scroll down to the bottom of the list. Been there for awhile.
Now, after the past two weeks I have to "look" for it. After spending much of its time at the sub-750 level, it's now sitting at 539. But I'm closing on it fast (my actual account).
Crash! Then a Downgrade
After seeing a lot of selling heading towards the deadline of the debt ceilings negotiations last week, many investors were expecting a relief rally once a deal was done, or at least expected the market to stop falling. Instead, things got much worse as the weak economic data, and perhaps the benign plan to reduce debt, sent stocks reeling.
Now the S&P has downgraded our credit rating from AAA to AA+. Once again the market reacted before