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Well, the Dow and the S&P ended up just about where they were when I began my retirement 11 years ago. Since a good part of my retirement income comes from the market portfolio, I am more than mildly bothered by this state of affairs.

I don't speculate. I have a managed account where I pay a percentage management fee every quarter based on the value of my portfolio.

The fee has been a lot less lately. One positive result of the downturn.

They decide what to do based on general guidelines that I give them. I can do quite a bit in terms of instructions. A lot of latitude is built in.

They have done a good job over the decade. I have always been ahead of the market, even now.

I suppose you could say that I haven't lost anything yet as all the rest of it was on paper.

You could say that and so can I but there isn't any comfort in it.

I called my manager today and let her know that it was another shock to see the new bottom. We talk at least once a week. One subject of discussion is the stress I am feeling.

Not bad so far. I can still take it but I wanted to run through the options if I got to skittish. I really have no intention of doing anything but I like to rehearse, just in case.

I could liquidate. Cash. Small interest. Play with CDs. I have a friend who has gotten as much as 7% by playing on the monthly CD market but there we are with speculation again and he isn't finding any CDs like that today.

Then, I could go to bonds. Like going to cash, this would be selling out. The stocks I own would be sold at their bottom or near bottom. Bonds don't increase in value and most don't pay worth a shit.

I could put more bonds into my mix. Same thing.

I could tweak the portfolio to put in more income and less growth stocks. That wouldn't be too bad. I am presently getting pretty good dividends even in this environment. 3-5% or so.

But when you go to income you lose on the equity. You get very conservatively managed stocks that don't grow a lot even under the best of conditions.

I asked what Buffet is doing. Warren not Jimmy.

He has a newsletter out Saturday.

She thinks that he is buying stock.

So I left it just where it is.

I try to live to the maxim "if in doubt do nothing".

There sure is a lot of doubt.

I have a few friends who are doing the same thing. Standing pat.

You can't say the market isn't trying.

Every day for the last week--well a few days--the Dow and S&P futures are positive and maybe the actual market starts positive. Then they get on their teevees and blackberries and start rumors and pull back and get all fear ridden and by the end of the day we are in the shitter again.

The market is trying to find a new bottom. And not doing very well.

My current strategy is to save money on the expense side. We are doing pretty well and not missing a lot that we have cut. So far. Regulating spending is the biggest lever anyone has right now.

I am looking for the Administration to get some clearer statements out about what they are planning to do. They have to be careful because when they say they are going to work with a company like CItigroup, people panic and sell the stock. Now though it is so low that they don't have much of anywhere to go.

I understand the stimulus will start leaking into people's pockets by the first of April. The mortgage plan will begin on March 4th. So there are some good things coming down the pipe.

Tomorrow night he makes a speech to the joint session. Today he had a meeting with the leadership and a mix of business and other outsiders. He did well.

But nothing satisfies the bull these days. They want specifics that are just not available and they don't like that they are about to see an end of the era. Everyone hates them. They know it too. They are irritable and discontent and throwing tantrums.

Change is a real pain in the ass.

But I remain optimistic!

Although looking at this picture, I can't see much to be confident in.

Labels: economy, retirement