"Dump the stationwagon for a Ferrari" , now?

y eye · #1 (**permalink**) 10-21-2008, 07:36 AM

"Step 2: Dump the station wagon for a Ferrari. Given the choice of hitching your investment wagon to a slow jalopy headed for the junk yard or a 200-mph high-performance sports car … I’ll take the faster ride every time. I suggest the same for your portfolio and recommend that you overweigh your portfolio with stocks, funds, and/or ETFs from Asia, Latin America, and the Middle East."

Chinese Exports Defy Threat of Global Recession | Money and Markets: Free Investment Email Newsletter

**Sirrobin4ever** · #2 (**permalink**) 10-21-2008, 07:56 AM

In the short term, yes the countries that export the most will be those that suffer least...but in the long term, they will suffer the most, as those who initially bought their products will not be buying.

BUY AMERICAN!!! [/unshakable Patriot]

**logainofhades** · #3 (**permalink**) 10-21-2008, 08:17 AM

Quote:

Originally Posted by Sirrobin4ever

In the short term, yes the countries that export the most will be those that suffer least...but in the long term, they will suffer the most, as those who initially bought their products will not be buying.

BUY AMERICAN!!! [/unshakable Patriot]

Yea I have never owned a foreign car and do not plan to. Only foreign vehicle I have owned is my Honda Shadow and that is only because it was so cheap. Hard to pass up on a $500 bike that runs from your neighbor.

kg4icg · #4 (**permalink**) 10-21-2008, 09:06 AM

I didn't know that Marysville, Ohio was a foreign country? Honda's are built in Ohio. Only the parts are imported.

**Gneisenau** · #5 (**permalink**) 10-21-2008, 09:15 AM

Quote:

Originally Posted by Sirrobin4ever

In the short term, yes the countries that export the most will be those that suffer least...but in the long term, they will suffer the most, as those who initially bought their products will not be buying.

BUY AMERICAN!!! [/unshakable Patriot]

You don't buy a lot of electronics then eh?

**Sirrobin4ever** · #6 (**permalink**) 10-21-2008, 09:17 AM

Quote:

Originally Posted by Gneisenau

You don't buy a lot of electronics then eh?

I know that most electronics are made in other countries, but whenever possible, I will buy the American made equivalent.

**JKflipflop** · #7 (**permalink**) 10-21-2008, 09:24 AM

Eventually, the stock market will pick back up, and the USA will still run the world with an iron fist.

That's right, we can invade your country, alter your governmental missions and fundamentals, and install our own leaders if we wish. And there's not a damned thing you - or anyone - can do about it.

**Gneisenau** · #8 (**permalink**) 10-21-2008, 11:06 AM

Quote:

Originally Posted by Sirrobin4ever

I know that most electronics are made in other countries, but whenever possible, I will buy the American made equivalent.

Equivalent is the operative word. I look to see where it's made and will buy American first if:
a. It's as good as foreign made
b. It's something I would want to buy

I will not buy an inferior product because it's American made, I will not settle for a style or features I don't like because it's American made. I expect American companies to be able to compete with foreign companies with quality/styling/features.

I guess you can make that case they foreign companies don't compete with our's, but I can't bring myself to settle for less than I want. I am willing to pay extra. (Within reason.)

TSIMonster · #9 (**permalink**) 10-21-2008, 11:37 AM

Quote:

Originally Posted by Gneisenau

Equivalent is the operative word. I look to see where it's made and will buy American first if:
a. It's as good as foreign made
b. It's something I would want to buy

I will not buy an inferior product because it's American made, I will not settle for a style or features I don't like because it's American made. I expect American companies to be able to compete with foreign companies with quality/styling/features.

I guess you can make that case they foreign companies don't compete with our's, but I can't bring myself to settle for less than I want. I am willing to pay extra. (Within reason.)

I have to agree. I am willing to pay a couple of extra dollars for an american product IF if it is at least as good has the competition.

flasher702 · #10 (**permalink**) 10-21-2008, 11:53 AM

Quote:

Originally Posted by kg4icg

I didn't know that Marysville, Ohio was a foreign country? Honda's are built in Ohio. Only the parts are imported.

I consider it a foreign country xD

**Viperabyss** · #11 (**permalink**) 10-21-2008, 11:54 AM

Personally I'm boycotting any China made food product at the moment. Diary product made in China has been found containing toxins, and has killed over 10 infants, and poisoned over 1000 others.

flasher702 · #12 (**permalink**) 10-21-2008, 12:00 PM

Funny thing is that all these capitalists wrote most of my school curriculum and then they try to tell me to forsake free market and "buy American" instead. No ty. I'll buy the best products at the best prices. Unless it's something that I'm eating I don't even look at where it's made.

But, back to the OP. Warren buffet says buy stocks now (well, he actually said to buy "american" stocks now) and so do these people. Problem is: I gots no more money to buy stocks with right now

Neither do a lot of people. But I do think it is a good time to buy. However I'd advise large cap value (the station wagon) not small cap growth (the ferrari) unless you have a big appetite (and budget) for risk and whatever you buy make sure your portfolio is globally diversified.

BaldEagle · #13 (**permalink**) 10-21-2008, 02:19 PM

Quote:

Originally Posted by flasher702

Funny thing is that all these capitalists wrote most of my school curriculum and then they try to tell me to forsake free market and "buy American" instead. No ty. I'll buy the best products at the best prices. Unless it's something that I'm eating I don't even look at where it's made.

But, back to the OP. Warren buffet says buy stocks now (well, he actually said to buy "american" stocks now) and so do these people. Problem is: I gots no more money to buy stocks with right now

Neither do a lot of people. But I do think it is a good time to buy. However I'd advise large cap value (the station wagon) not small cap growth (the ferrari) unless you have a big appetite (and budget) for risk and whatever you buy make sure your portfolio is globally diversified.

Still smarting from that WaMu????

I would agree with you if you want to buy now buy into the slow growth Large Cap dividend income stocks often refered to as "Granny Stocks". That is what I personally have done in my investments as I get slowly back into the market. What a year to be out of the market...

Having just changed jobs there wasn't much 401K to kill but it's pretty much a 201K like everyone else, Oh well. I also did have the IRA's that I couldn't take out so I went into using inverse ETF's like QID, FXP, and EEV with part of it so they made out like bandits while moving the rest into money markets and safe stocks like BUD that is being bought out.

Fool Blog: Stocks We'd Recommend to Our Grandmas

If you wait for the market to bottom and the economy to pick up you will have missed the bottom but you'll have also missed the largest risk as well. If you buy now and the market declines further you've wasted your time and money when it could have been working so maybe you go granny now and go for faster growth later?

Then again maybe you just wait for the big thud at the bottom?

**wuzy** · #14 (**permalink**) 10-21-2008, 02:45 PM

Quote:

Originally Posted by Viperabyss

Personally I'm boycotting any China made food product at the moment. Diary product made in China has been found containing toxins, and has killed over 10 infants, and poisoned over 1000 others.

Hmmm, born without a single bit of moral compass.
Even eating kitteh has more moral than that.

**wuzy** · #15 (**permalink**) 10-21-2008, 02:49 PM

I like the way how Buffett does things with a large principle.
The stock drops a little you buy little, the more it drops the more you buy.

...wait
Step 3: Profit!