October 2008 Financial Asset Roundup
|Asset||September 2008||October 2008||Change|
|Credit Card 0% Balance Transfers||0||0||0|
|Total Assets||$574,427||$478,415||-$96,012 (-16.71%)|
Ouch! The S&P 500 index has been at a receiving end of a major smackdown over the past ten days or so (down 28.16% since my last update!), and is now down to levels we haven't seen since 2003:
(chart courtesy of msn.com)
While fear and uncertainty has pretty much slammed the entire world, one of the few positives has been the corresponding fall in oil prices to below $80 per barrel, which could provide a little relief for pinched consumers of gasoline and home heating oil.
Moneywise, I plan on staying the course with the investments in my retirement accounts, just like I did after the tech bubble popped in 2000. I've advocated locking in CD rates now since rates are still attractive while banks are desperate for cash, but I am not confident that these rates will be around long. Following my own advice, I rolled my maturing E-LOAN 5.75% APY 2 year CD into a E-LOAN 5.25% APY 5 year CD.
One event of note to savers is the release of the September 2008 Consumer Price Index (CPI-U) inflation data on Thursday, October 16th, which will give us the rate of return for October 2008 issue I Bonds the next 12 month period. Even with a 0% premium over the rate of inflation, they could still be an attractive (and safe) place to put cash for the next year or so.