Is the market going to crash again? What do I do with my investments?!

For awhile I figured if I lost it all, I'd have plenty of company--if it got that bad, everyone would be broke except politicians. But I can't go down without a fighting chance, and I won't. There are many economists that believe things are going to go from bad to worse. With all the negative spending the country has and the realistic unemployment rate at around 16%, the national debt over 80% of the GDP--we are headed to a bad, bad place. And yes, people like you and me will suffer. I'm just trying to cut my losses. My investment guy at the bank says don't worry but I'm getting a second opinion on Tuesday. Hang onto every cent you can--can't hurt and will probably help!

I'm in mutual funds right now, which is a mix of different stuff. I have some bonds. But my adviser keeps telling me everything is fine and I know in my gut that things are NOT fine. I feel a strong urge to hurry. I have an appointment Tuesday with another adviser and will see what he has to say. I have to do something soon, the crap will surely hit the fan before long. Thanks for your suggestions!

Thank you for telling me about him. I found his site and will be reading it over the next couple of days. Anyone that doesn't think we're headed for a tanking must be hiding under a rock.

Check out Ulli Niemann's free newsletter and blog. I've been following his advice for four years and didn't lose anything when the market went south this last time. He'll even comment to your e-mails for FREE. The way I see it, your advisors make money when you're in the market... I've been doing my own investing since the early 80s. Did ok, but following Ulli's advice, I've done more than ok.

I cannot remember seeing gold that high in my lifetime. And it has happened in 2010 because of the financial crisis. The smart investors beat you to it. The demand for it pushes the price up. When the crisis is over, they will resell their Gold in order to invest in high profit venture. And then the price of Gold will crash due to a larger supply of gold. It is a matter of knowing when to sell. Someone is claiming that Gold will go up to $5000 But that very much depends what happens in the next two years. I wish I had a crystal ball. lol But I did find this article. In the long term, gold has proven over the past 200 years to be very stable. The value of gold as a purchasing power, distinct from the purchase power of the US dollar for example, still remains very much the same or better. If you look back through history you would find that one ounce of pure gold has hardly changed at all. One ounce of pure gold now still purchases the same as it did 200 years ago. The change in paper currency however, due to manipulation and removing the gold backing from currencies world wide, has been dramatic and can be shown by the consumer price index. What originally cost 20 dollars in 1800 cost 216.86 dollars in 2005. Yet one ounce of gold still purchases today what it did 200 years ago. In fact it is tending to purchase more. It is likely that this scenario will continue and over the next 200 years, inflation, recession etc. will continue as more paper money is printed. Yet the value of the pure gold troy ounce will remain the same in terms of purchasing power. This is a good reason to purchase gold. The next question is 'what sort of gold should one buy?' Out of the possible four types, stocks, exchange traded funds (ETFs), futures and bullion, it is the bullion that will retain its value. Stocks can crash, futures can change wildly and exchange traded funds, although based upon actual stocks, rather like the dollar when it was backed by gold, still has the volatility of trading in a similar way to stocks and futures. Bullion has a history of remaining stable, whether it be gold bars or gold coins, both have the stability of being actual gold rather than a representation of it. Both have the assurance of retaining their value even when there is a stock market downturn or an economic recession and both have an instant salability at the value of gold at the time of the sale. Plus, gold coins and gold bars can be easily transported and stored making them the ideal medium to invest value in. This then, for the collector as well as the investment or even just the hobbyist, is the answer to the question, why buy gold.

I decided to move my investments to another firm. I was with my bank and even though their stock consistently fell they had me into it. The advisor kept telling me things were fine, don't worry, it is impossible for the economy to collapse. So I switched to someone only 4 miles from my house, he's with my credit union, and he has me in some conservative products to preserve my principle and a small amount that is intended to grow. I feel a lot more secure!

Gold is at record rates and will surely fall so it will be like paying $1 for a loaf of bread that will cost $.10 by the time you get it home. They are really pushing gold here, commercials all over the place. But it's so high and when you buy it you pay more than the going price. I don't have enough to buy a lot of gold, anyway, but for people with a few hundred thousand I would think it might be a fairly good strategy to invest a few thousand into it. At least you have land. As long as you can pay the taxes, it's yours and you'll have a place to live!

Error:if a few should be is a few.

I've been of good cheer for the last five years, even during the "recession" which is a euphemism of "depression". But I can no longer trust my security to my government, which is lying to us all. I have learned to be proactive in my life after being a "victim" in the past. Which is to say, I trusted my government and believed everything they said. No more. I don't want to be a burden to my children. Those who can should do everything they can think of to preserve their capital. I plan to do this. Plus, my mortgage company just the other day sent me a letter saying my payment would go from $625 to $905 because of tax increases!!!!! I recently refinanced and got the $625 payment from $805. I will be shopping around for another refinance because there has been no public vote on increasing taxes. Add to that, my government is thinking of making 401Ks be invested in treasury bonds so it will finance the debt and it is a bleak outlook. Every man for himself. That's abominable economics. But that's the United States in 2010. I must survive and minimize my burden to my children and to society.

Hiya dragon, That is really awful news for you. Is that the News they gave you then or are you still waiting for the outcome of today? When you were going to speak to someone about interest rates at the Bank I think it was. I fear that is what will happen here when the taxes go up again and with the wages they get here how things will go seems very bad at the moment I hope not. Well they are trying to do that here to about those Savings Bonds things and no one has enough to buy proper Food let alone save anything. I find it laughable when these adverts come out I think to myself who are they trying to kid? Hope you manage to remortgage and get on as well as you can. I try to think one Day at a time too it´s the only way I have of living through all this.

I'm not an educated investor so I'm afraid I wouldn't do well buying and selling. I'm leaning toward the structured CDs. I'll look at your site though, I may learn something--thanks!

I'm so glad that your son finally found some work!! I don't recall seeing you posting about that good news, at least I can stop praying for him, that's great news!! I do not think we are coming out of the recession. I believe a lot of economists that are saying this is actually a depression that we are long overdue for. If we had not done anything and let things take their natural course, the economy would have righted itself by now but Bush and Obama had to interfere and now it's bad and will get worse. You are lucky that you have a place to stay because within a year or two there will be a lot of people on the streets and I might be one of them. Yep, tomorrow I have an appointment with an adviser and will be asking about structured CDs and other things. I'm not a person who values material things but I like to take care of my own needs and don't want to lose what little I have.

Stocks has little risk at all. Risk happens if you don't know what you are doing. So risk equal to skills. Look at daredevils. Do you think they are taking risk? No. They are not taking risk. Because they know exactly what they are doing. The only problem is accident. And accident do happens. but it does not mean its risky.

Fixed bonds sound like a good idea, thanks! I'll ask about them, I'm getting a second opinion on Tuesday. My advisor from the bank says don't worry, everything is fine, but my values keep sinking so it's time to act. Thanks again!

Treasury bonds used to be good, as were municipal bonds. But the country and the cities are going to be bankrupt and then what good will those be? They were a great investment in the past but all bets are off now, the country is going down fast and hard. I agree with keeping a little in the stock market but I want the bulk of my principle to be safe. It's less than $50,000 and all I have for retirement. I'm 56 already, was married to a non-saver for 20 years and that represents all I got from our assets. Social Security will be bankrupt when I'm 65 so that's all I have--you can see why I'm in a panic, I'm sure. Thanks for your advice!

Sounds like a good strategy but I rely on an adviser to do my trading for me. I'm in mutual funds right now and they are losing money. I lost 20% in the last crash and that's all the money I have when I will be too old to take care of myself. I just don't get financial stuff like that no matter how hard I try, I'm a stock market idiot. Thanks for your advice, though!

Thanks Bhemzky! I'm not at all sure about insurance companies--they seem to have a very good business plan going for them but there have been several in financial trouble here. I'll add that to my options, though.

Safe is what I'm looking for. I would be happy to just preserve the principle but I need to find a way to do that, hence my visit on Tuesday to an investment adviser.