Do you think the stock market will rebound soon?

Just curious on what you think the stock market will do in the next couple months. I have some cash in stocks that I'd like to use to fund a house purchase in the fall, and its taken a beating these past couple weeks.

Should I take the loss and cash out or just wait it out?

it already has rebounded. And it will do so again and again.
If you can sell at a profit, consider doing so. But if the price has dropped to the point where you will be taking a loss, you need to look at where your money is - what company? If it's a mortgage or financial company, I would probably get out. But if it's a good sound company then ride it out. As far as your house purchase goes, if you can wait you should probably do so as house prices are dropping.

I notice you asked this question 4 days ago. If you'd acted then, you would be ahead. The market has continued to decline(plummet?) however, so now it's too late. Wait out this correction...the market needs to make corrections from time to time...this one is overdue.

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Good Luck , Best Wishes!

It will rebound as soon as you take your money out.

Yes.

Now is not the right time to buy a house.

You need to wait more months and you will get a far lower price.

Looks like you took on too much risk. Fall isn't a long enough time horizon for investing in stocks. Your bond funds should soften the fall, though.

No one knows what the market is going to do.

You may have to put off that home purchase.

Recheck your risk tolerance.

Your buying opportunity will be coming up soon.

No, I think it's heading into a natural correction for a host of reasons too long to emunerate. I don't believe the growth seen in 2007 can be sustained. But that, of course, is pure educated speculation. However, that doesn't change my following advice.

If your time frame was long-term I would suggest you hang on and weather the storm, especially with the long-term proven winners with good fundamentals. I'm a bottom-up trader and use tech analysis not fundamentals and overall market conditions therefore don't matter much to me.

If you're time frame is this fall, I would take any profits off the table unless a particular stock is still in a confirmed uptrend. On all your positions you should set some stop limits like 2% of the current price lest you go into a free fall and really take a beating. Anything where you've already lost 6% or more sell and move on.

Stocks are not the best place, at least not for all of it, to have money earmarked for the purchase of a home in the first place. But since you've already done that apparently no time for a lecture at this point. Maybe you just happen to have a portfolio and later decided to buy a house. None of my business. Not trying to make you feel bad, just giving you good advice. Anyway, sounds like the stocks are beating you up enough already.

I recommend people saving for a down payment for a house to park a sizeable portion of that money into something safe but relatively decent yielding like a direct online savings account (I recommend ING Direct Orange for ease of use, cust service-paying 4.5% or HSBC or Emigrant ot WAMU paying~5%). Avoid CDs and MM accounts-yield too low.

Remember CAPITAL PRESERVATION IS THE NAME OF THE GAME in all successful investing, especially for important money like retirement savings, college funds, and saving for a home purchase. All investors can find stock picks that gain and make money. But what separates successful investors from the average investor is that simply put, they lose less money in the process-by leveraging risk, money management, and knowing when to get out of a trade. That is, when it's time to cut bait, take your medicine and move on . You know, selling at a loss and putting money somewhere where it's actually earning something, not bleeding like a stuck pig in a stock that one has started to feel an emotional attachment to and can't get ego and wishful thinking out of the way long enough to make a rational decision anymore.

Warren Buffet put it best regarding the rules of investing:

Rule #1- Don't lose money

Rule #2-See Rule #1

Hope that helps and good luck!

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