[HoodPin]

In case you haven't already seen or heard, the stock markets are taking a major dump today. DJIA is down more than 500 points.......... my TSP is shrinking........ .

[Trak Ratt]

Good thing I’m waaaay too young to retire! I’ve correctly anticipated a decline in the stock market 12 out the last 7 times

[Mike W]

Originally Posted by david riley

Good thing I’m waaaay too young to retire! I’ve correctly anticipated a decline in the stock market 12 out the last 7 times

Don't worry, studies have proven that you have about the same ERA as the people who work on Wall St.

[wludavid]

Shouldn't you old guys have diversified by now? Sure, stocks took a hit, but 10-year T-bills spiked. Not that I understand how t-bills work.

[racer]

don't worry.. there only "paper" losses. Good thing you still have your Porsche(s)

[wludavid]

Porsches -- liabilities, all of them!

[Trak Ratt]

Originally Posted by wludavid

Shouldn't you old guys have diversified by now? Sure, stocks took a hit, but 10-year T-bills spiked. Not that I understand how t-bills work.

Don't understand what you mean by diversify? Isn't there only one type of Money? Or did I miss the memo

[Mike W]

Originally Posted by wludavid

Shouldn't you old guys have diversified by now? Sure, stocks took a hit, but 10-year T-bills spiked. Not that I understand how t-bills work.

It's a direct relationshop. When stocks go down, bonds go up and vice versa. I'll be happy to go into further depth as to how they are related and the reasons beyond simple market choice as to why they tend to behave that way....
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but you're probably asleep by now

[wludavid]

Actually, that would be an inverse relationship, not a direct one. I should have been more specific -- I do understand stocks and bonds are related. I was just looking at today's price and I realized I had no idea how they're valued/priced.

No, not asleep yet. I find equities and stock markets much more interesting than what I get paid to do.

[Mike W]

Sorry, in my studies, we refered to that as a direct inverse relationship.

Convoluted I know, but this is as opposed to an indirect inverse relationship. Again, sorry, getting way to technical.

As for how they are valued and priced, well I spent a semister studying Bond and equity Markets. It's complicated, but here is a good overview:

http://www.duke.edu/~charvey/Classes...al/bondval.htm