S&P 500 Down Nearly 50% in 2008

This is unprecedented in the history of the S&P:

If this were to hold up for the rest of the year, it would be the worst 1-year performance in the history of the S&P Index*.

Now, I’d like to know your opinion:

Has this been overblown?

I’m starting to think it has been overblown, which makes these times an excellent buying opportunity. We may very well stay low for awhile but eventually this things gonna turn.

*Remember the S&P 500 began trading in March of 1957. Prior to 1957 it was an index composed of 90 stocks.

5 thoughts on “S&P 500 Down Nearly 50% in 2008”

  1. Fear and greed cause the market to be overblown in opposite directions. We are in a cycle of fear. For those with a long-term investment time-frame, buy now and pat yourself on the back in 15, 20, 30+ years. You can tell the grandkids that you had the foresight to buy at the bottom of a “once or twice in a century” financial debacle.

  2. It certainly is depressing. One thing I’ve been more afraid of is buying individual stocks – regardless of how “cheap” they are. Especially in the financial sector.

  3. Today I bumped up our P&G drip’s monthly contribution. It’s the only stock in our portfolio I still have the warm fuzzies for!

    But I am a patient woman, and continue to add to DH’s 401K and the kids’ 529 plans, and my own T Rowe Target fund. But seeing the A**-kickin’ they’ve taken the only comfort is I’m buying “cheap”–As a woman scorned, I no longer love them 🙁

    Just moved some liquid funds into ING’s CDs to juice our earnings from the (low-but-not-negative!) savings acct rate. Also, paid off some zero-percent debt (yes, I know I’m giving up some arbitrage!) and will watch to see what the crazy market does next…Isn’t some market resistance finally here?

  4. I believe this is a great market to short sell luxery stocks. Stocks such as HZO, a luxery boat company just went up dramatically and are about to plummet. This is a good time to short sell HZO. If you own HZO, this is a good time to sell. Other luxery stocks will go down due to the bear market and hard financial times.
    Frank Stevens (Financial Advisor)

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