Interesting week...
dow=9034
SandP=931.8o
VIX=39.19
10yr=2.39%
SandP P/E: 15.17

Where we're at:
cash=41%
bonds=26%
stock=33%

We finished 2008 at -14.38%

The DOW closed above 9,000 for the first time in 2 months (11/5). The pundits sound increasingly "bear market rally" optimistic then a retest, then a second half rally. The column commenters continue to spout chicken little-like statements that the economy will be awful until the end of time. I agree that 2009 will suck but I am optimistic that capitalism will survive.

I have been reading Andy Kessler's "How we got here". It is amazing how history continues to repeat itself, like the instructions on a shampoo bottle (find a trend, exploit the hell out of it, pop the bubble, regulate, repeat). In 2008, some upbeat happenings. We opened and fully funded our trust, so we can look after A even when we are gone.

I moved out of actively managed positions in taxable into passive investments. Even with a large drop, V health care would have nailed us with cap gains, but I switched out before that happened. V and Janus crushed us in the '00-'02 downturn with cap gains, I wanted to avoid that this year.

The revised plan came out on 12/29 and it still pushes us to go "all in" to equities. We'll pass and be contrarian, spend while the world saves. Since we have been saving while the world spends, we're entitled. I'm planning on a new vehicle, kitchen countertops, and a nice vacation (DW or cruise in 2010), unless a layoff occurs before the end of 2009. For now, only new equity money in tax deferred stuff until the DOW stays above 9,000 consistently.

I came across an interesting quote this week in US news and world reports, "Arrogance lowers IQ". How true. I'm also seeing more and more people telling me to buy gold, I feel a bubble coming on.

Health, family, home, job, investments...in that order.