I think all of the government bailouts have been short-sighted at best, but with regards to the homeowner bailout, what about lawsuits from homeowners who have already lost their home in this market? How is the cutoff point decided?
My experience has been that those who are looking for someone else to cover for them get very emphatic about their "rights" when they feel someone else got a hand out and they didn't. If a home owner lost his home last month, for example, so it's no longer his to bail out, might he not sue the government for the loss caused by the government's failure to act in a timely fashion, "resulting" in his loss of a home?

While everyone is running around like Chicken Little, please remember that no matter with all this stock and bonds, money is what is NOT WORTH ANYTHING!! LET ME REPEAT.....YOUR AMERICAN DOLLARES IS Z I L C H. So all of you who believe this is bad, wait until you are growing your own grapes and potatoes in third world America - which, if you have been real smart up to now, will figure out that America is now a classified commodity - third world, but still buyable. Which country do YOU think has the best chance of acquiring America?
In addition, please remember that at no time - NEVER - has the country ever lost its currency value completely, until now; although you may believe differently, think one word - credit. That is what the Great Depression had on its side - lack of that word in the economic structure of the everyday man in America. People still dealt with REAL CASH for negotiations, stocks, etc. The only way to return to a normal life, for all countries that have dealt with a credit mentality, is to do so simply - remember, large problems don't demand complicated remedies; to do so, only complicates the large problem - as in "bail out". The credit economies of the world need to reestablish a currency based on something else, other than gold buillion. America only has 8 thousand tons; this is a small amount compared to some other countries. In the meeting of these countries, perhaps the new currency can be backed by another of the earth's precieous metals. Who out there would like to take a guess as to what that would be? Also, money is only a fabrication of society - it became important because we gave it importance - paper, ore, diamonds, gold - is a material good, not something that is really important in the simple equation of living each day. When we started attaching monetary value to everything, we set out on a course of destroying really simple, yet more profound and much more satisfying interchanges of helping each other in living every day - we did not work hard to produce to live, we began to work for money. I hope this makes sense to you - perhaps in a large sense it is the simplest answer to what has become a global problem. Thank you for allowing me to speak out.

Look at it this way...stocks are on sale! If you in it for the long term or if you like certain companies, buy low then sell high down the road after obtaining satisfying returns.

There's no reason to lose money in this market. VectorVest had a Confirmed Down call on 6/11/2008 so I bought ultra short ETF's on 6/12/2008 and my portfolio is up huge. You don't have to play the market only to the upside. You can make money when the market goes down too. I wouldn't follow anyone's advice if they were losing money in this market. It just means they don't know enough. Go Google "ultra short ETF" to find out what you're missing. Yes, you can use short and ultra short ETF's in a retirement account. Heck, there are even inverse and double inverse mutual funds out there (check Rydex).

But Clark, don't you also have real estate and small business investments, so that they would effectively be like dividend paying stocks or annuities? They would effect you portfolio mix, wouldn't they?

Dollar Cost Averaging only benefits over the long term so DCA would not be the reason for the year being down only 10%. I have heard Clark say he invests in S&P 500 funds. If that is the case that portion of the investment will mirror the S&P 500 decrease.

Let's see - my 401 and Vgrd funds are down a cum 2.2%. Took almost everything to GIC, MMkt last March. Would'nt have lost a cent but left a tiny fraction in Intn'l. Folks should hopefully learn from all of this activity: PAY Attention! ACT depending on your risk level! If you really don't know what you are doing GET expert advice (pay as you go CFP). Buying CD's while we face hyperinflation is the wrong way - it's like selling all the way down!! Gold? sure - if you can put it in your pocket - it's still paper pretty much is'nt it?!!
Will I stay out longer> Most likely. Will I start 10%ing my way back in - most decidedly.

...LOOK, MOST PEOPLE ARE DOWN 40%....BONDS INCLUDED, MAYBE 20%.....I am down $700,000......we have to climb 40% to break even to where we were OCT 2007...not all people have the benefit of dollar cost averaging, Clark...you refuse to admit that......if we all live that long, or most will have to retire at 125, I am already retired many years early....and do not need any stock portfolio...

Thank you Clark for sharing your portfolio breakdown and for reminding us of dollar cost averaging and how to take advantage of the down market. I for one needed this encouragement and reminder to stay put. Vicki Scheidle, Hillsboro, Missouri

Clark, you should take another look at your portfolio! I think you are down more than 10.6%.

Someone asked about investing in gold and silver. I think both are going to be in much abundance soon and the price will continue to drop. There's even home parties now to buy gold and silver jewelry which will flood onto the market. I suggest rarer metals such as palladium and platinum or companies that mine them such as SWC and PAL.

You really didn't give us details of your portfolio, only the asset allocation. Can you be more specific?

Didn't we hear this before from you Clark when Dow went down to 11750 early this year and then next day it went up 400 points after some Federal Reserve action. Market continued to go down for almost 2 years after 911. The truth is 'NOBODY KNOWS REAGRDLESS OF HOW SMART HE/SHE IS'. Stock market is nothing but Gambling except you don't get fun like in Casinos. I have some IRAs (Target 2020 Fund) bought in 2000 is worth 20% lower than buying price. What we need is option in 401k to invest in CDS for nervous investors who does not have G-R-E-E-D like Corporate America (expensive spa, party with our tax money) has.

My opinion- Until we have CDs, (10, 20, yr CDs have always been over 5%)guaranteed bonds in 401k, save your own retirement separately. Assume 401k is additional tax our government deserves for letting us have good life style in America compared to the majority of the rest of the world. Thanks

Here's a better link:
http://allfinancialmatters.com/2006/04/28/how-to-calculate-your-personal-rate-of-return/

While I am not happy with the -52% in my 401k. I accept the the market is volatile (more at times than others). I continue to invest and beleive that capatalism is the best system yet devised. I refuse to let the bad actors in the banking/investing industry to frighten me. This will pass... and if capatilism and democracy are doomed, well, then i guess it doesn't matter!

thanking you for educationing the us on the history of the stock market. The ups and down etc. But do you think it is a way for the "few in power" to collapse the world financal world so they can step in and "save us" with a world bank, thus controlling the whole world? (i am not a nut job-just wondering). Love your show.

I still don't believe him. First of all, what 401K doesn't also employ dollar cost averaging? That he dollar cost averages doesn't differentiate him from 401K participants with well diversified investments. Did he factor in his almost total loss in Wachovia stock? My international emerging markets fund is down about 40% in the past 3 months and his contains Japanese stocks which have gotten hammered recently, in fact their market suffered a 9.8% hit on Tuesday alone. Since Clark isn't an individual stock picker its unlikely he has most of his "big company" stock in Altria, so I'd have to imagine these have suffered greatly as well. Small cap stocks certainly haven't escaped the carnage, so my gues is Clark just isn't doing the calculations correctly especially since he invests each month which makes the calculation very difficult.

Mark

p.s. I'd like to see what Clark says about gold in a few months

Perhaps Clark can tell us of a good buy on bullion.

When financial planners and Clark say the market has never lost over any 10 year period they mean the ENTIRE New York Stock Exchange not just the S&P 500. The S&P 500 represents only about 10% of the NYSE. So financial planners are stll correct.

Thanks for the clarification and insight Clark.