My reality TV

Whoo,

more exciting than a roller coaster ride and much easier (yes easier) on my stomach!

This market is exciting (many bad things get your heart racing good or bad) and keeps you on your toes. I wonder who will go bankrupt today?

Another excerpt from an email to a family member who asked if i was watching the markets... LOL.

The actual question

"So...what do you think of the markets this week? Are you watching closely or are you more of a ride out the storm kind of guy? "

My simple answer was Yes to both.

Email quote:

>>>>>>
I lost over $5k today in my investment account. Very sad now as i doubt that i have a good shot at winning this contest! What and you thought i was talking about real money?? lol.



In my real investment play account i am down this week $500-$1000. Not good, but not as bad as most. I am also 40% cash and have been most of this year waiting for this sort of melt down.



My RRSP is down worse. I am fully invested right now (i had a little money in cash that i invested Monday morning>>>> whoops.



In answer to your questions yes to both. I am in a good position. Sure if the markets continue to fall it looks bad, but i have many years at which i am adding money at these lower levels. My match RRSP at work adds 18% of our salary yearly and it goes up as our pay does.



I am also adding to RESP's and a cash (emergency account). If interest rates rise these may be reduced or suspended to pay additional interest.



The wife is mad at me (she has reason). I am watching the market fervently. I entered a contest this week and stuff has sold off big time everywhere. Regardless of that when large firms like Merril Lynch and AIG are going under simultaneously we are watching history. So i am riveted by the markets right now although i am doing little with any real investments (I thought about buying some silver companies today). This stuff is my reality TV.



I love how the US government bails out any and all comers. Wanna invest like a fool with Billions of other peoples money and get paid oodles. Then when you screw up and lose MORE than everything no worries THE FED will bail your 'dumb ass' out. What about those peoples money you lost? Sorry SOL.



I can only hope that lots of financial people go to jail and pay back all those bonuses when they made 'pretend' money.



Due to our dollar erosion i think your US fund should be ok (by ok i mean not the worst performer and you shouldn't lose 'all' your money like some).



Imagine some people who borrowed to invest in companies and lost? Like that oil company i bought yesterday in my 'game' account. It fell almost 50% today.... and that was after falling 50% ytd. (no its not 0 now, but -75% ytd). Hmmm.



People like Sis and others younger stand to benefit from this 'healthy' correction since the market was over extended before. Now when she invests in the coming years the market will be 'on sale'.


'Don't panic, Don't use leverage, and stay the course'. A mix of advice from people smarter than i.

<<<<<< end email.

As you can imagine i have done nothing with options. Premiums are through the roof. Spreads are absurdly large. It really makes them tough to use. That said Selling puts on CDE at $5 strike a few months out might work. I wonder if just buying the shares would be easier however due to the large spreads.

Enjoy the show!

DH