[Kerrigan]

Jan. 8 (Bloomberg) -- Marc Faber, who predicted the U.S. stock market crash in 1987, said global assets are poised for a ``severe correction'' and it's time to sell.

``In the next few months, we could get a severe correction in all asset markets,'' Faber said in an interview with Bloomberg Television in New York. ``In a selling panic you should buy, but in the buying mania that we have now the wisest course of action is to liquidate.''

Faber, founder and managing director of Hong Kong-based Marc Faber Ltd., advised investors to buy gold in 2001, which has since more than doubled. His company manages about $300 million in assets.

Bloomberg.com: Worldwide
-------------------------------------

What do you think? There is a "buying mania" going on (see how Apple kept climbing even with potentially damning news looming). And there is almost always a correction after growth, so maybe he is correct.

This news isnt enough to make me go out and sell every stock I own, but I'm definitely going to be paying closer attention the rising prices, in order to hopefully determine when peak prices are nearing (a complex method called technical analysis which I am sort of familiar with).

[turtle777]

All my stuff is 401ks and IRAs, so I don't worry about it. I will hold it for another 30 years.

-t

[Voch]

Same here (the 401(k) stuff). In fact, it can be looked at as a way for my ongoing 401(k) contributions to be stretched further by buying cheaper stock.

[Ganesha]

You can't time the market.

[turtle777]

Originally Posted by Ganesha 

You can't time the market.

Well, yeah, to some extent you can. With a lot of analysis and loads of information, you can get close to it than just by guessing. But is it worth it ?

-t

[Ganesha]

Originally Posted by turtle777 

Well, yeah, to some extent you can. With a lot of analysis and loads of information, you can get close to it than just by guessing. But is it worth it ?

-t

With respect to the S&P 500 (1996-2005), all you have to do is be wrong and miss the best 20 days and your yearly average gain goes from 9.1% to 0.2%, miss the 30 best days and you start to lose money (-3.1%)

[Andy8]

The local market here in Hong Kong is crazy. IPO fever pushing the index into all time highs. More and more speculative investors buying into this frenzy.

[Railroader]

Originally Posted by turtle777 

All my stuff is 401ks and IRAs, so I don't worry about it. I will hold it for another 30 years.

-t

Same here. But I got burned a bit in the tech bubble because I was heavy into tech mutual funds.

I am currently in longer term funds and a bit more conservative.

[Joost]

Originally Posted by Andy8 

The local market here in Hong Kong is crazy. IPO fever pushing the index into all time highs. More and more speculative investors buying into this frenzy.

So true.

You can always tell when it's time to get out of the Hong Kong market -- high-street banks are full of seniors and housewives crowding around Bloomberg monitors punting their life savings (and then some) into dodgy second- and third-line stocks. Every stock movement is greeted with a "Wah!".

You can't help but feel they're unwittingly setting the stage for the kind of newswire photos we saw after the tech bubble burst -- anguished, head-in-hands investor slumped mournfully beneath a neon sign that says "Hang Seng Index, down 8.9% in region-wide selloff"...

[shifuimam]

Originally Posted by turtle777 

All my stuff is 401ks and IRAs, so I don't worry about it. I will hold it for another 30 years.

-t

I would assume, though, that you can move your investments around within your 401(k) to an extent. For instance, my company matches 2:1 my contributions with stock in the company. When the company is doing well, I can sell that stock within my 401(k) and invest it in other funds available in the program. If you act wisely, you can really increase the amount in your retirement accounts, which is always good when you're retired.

Just a thought.

[turtle777]

Originally Posted by shifuimam 

I would assume, though, that you can move your investments around within your 401(k) to an extent. For instance, my company matches 2:1 my contributions with stock in the company. When the company is doing well, I can sell that stock within my 401(k) and invest it in other funds available in the program. If you act wisely, you can really increase the amount in your retirement accounts, which is always good when you're retired.

Just a thought.

Well, you are right, I can shift around. But I really wouldn't know where to.

I'm currently very light on US stocks and companies, mostly invested in Europe and emerging markets. Yes, I could go conservative in bonds, but I just don't feel like it

-t