I was moderately "hopeful" that I might get back up to even in nominal dollars with my total portfolio value at its all time high in mid 2008.  Got within 2% when the recent declines began.  All set, I was, to post a scathing article about how being "even" in nominal dollars has become irrelevant due to the massive devaluation of the US$ already inflicted by the Oh! Bomb Ah administration.  As the situation is developing, I'm not going to be able to post *that* scathing article ;).

In any event, no, I haven't purchased anything since the muni bond portfolios last December and the REITs (most of which I have been forced to dispose of due to the fraudulent munchiments slashing payouts to owners and thereby slashing the value of the REITs to me as an income investor for that portion of my portfolio) that I bought in January through March 2009.  Nor do I have any interest in doing so, so long as the criminal abrogators continue to refuse to issue any stocks to me in MY name but insist on "holding" them in the hands of known criminal thieves of property and income, the major one of which is itself de facto bankrupt and thereby "motivated" to steal the property of Americans (they're not) that are placed in their wrongful adverse possession.  My going after income producing property (believed to be so anyway, at the time I purchased) was an exception to my general LESSatorium which I began imposing in October 2007 when the major criminal gangs of Wall Street got the corrupt sonofaBush SEC to approve their criminal abrogation of seizing all stocks in violation of Article IV of the US Constitution Amendments.  My statement to all sellers is this:  you want me to pay for something, you are going to deliver the property that I pay for TO ME, NOT TO YOUR CRIMINAL CRONIES IN THE TRANSFER AGENCY BUSYMESS who have a long record of "transferring" property to themselves and other criminal affiliates.

Check out... http://www.thestoryofstuff.com. ... and let me know what you think. If you don't have DSL then it takes awhile to load. I think the video sums up a one major portion of the problem. There are a lot of resources on the website, too.Check it out.

I continue to have mixed emotions (I'd really like to have 'facts' --- there is simply no agreement on how to interpret the many things, financial, that are happening) on the markets.

All this spending is going to break something. Not sure what and how badly. The decline of the dollar means gas will continue to rise for awhile, which I assume, everyone has noticed already in the last couple of months.

General agreement, for what it's worth, is that unemployment will continue to rise until at least 4th quarter, and foreclosures don't seem to have an end either (mostly tied to unemployment).

I really believe the 'human cost' will continue for years. There will be a group of people who will never have the incomes they once had, and standard of living will permanently drop in the country (although the 'standard' was based on escess consumption that was put on credit cards).

I don't think I'm 'brave' with the bonds --- I see them as more conservative than equities at this time.

Well, to be honest, I had always been a very disiplined investor until the stock market drop in March. At that time, I did get out of most stocks and have been dollar cost averaging back  a small position in equities. I trade ETFs and have mutual funds. When I see a good stock at the right price I buy it. However, I am in no rush.

I still believe there is a way to go before we see a real economic recovery. Almost every state in the nation is having financial problems, the jobless rate is getting worse, and foreclosures are still up.

If the government hadn't pumped so much money into the economy we wouldn't be as stable as we seem to be right now (which isn't very stable). Until jobs recover (good paying ones) it doesn't matter how low interest rates are-most of the real estate activitiy has been in refinancing. The two wars we are in at this time are also a big drain on the economy.

It was in 2003 when people didn't have to go through the usual stringent screening to get financing.

I think you are very brave to be in junk bonds.

Charge cards are a prime issue with me. Wife and I have used, exclusively, credit cards (only a fewq) over 25+ years. In 25 years, 99% of what we've purchased has been put on a credit card and we've never incurred a fee of any type. In fact, we're about $7000 up in 'free money' as a result of cash back, or equivalents, using those cards. I have multiple cards now because I max out the benes on one card in a year.

I always tell people we're the last people in America who have never used an ATM --- yes, I have no idea how to use one. Never stood in front of one, never had a need. If we get $100 cash from the bank, we're good for half a year, at least.

I just don't understand the mindset that if one has a credit card, one can just indiscriminantly spend.

Online:

http://www.madison.com/wsj/home/biz/447241

Your comment 'impulse control' (or lack thereof).  We all have to many charge cards these days. 
 

My wife and I mainly use one card and pay it off monthly.  I do put a few extras items in our cart at the grocery store and I tell my wife it is on SALE!
 

We also use our charge account statements to keep track of our budget.

You hit the nail on the head with your last sentence, "Lack of this ability means 'not learning from mistakes' because it wasn't perceived as a 'mistake' in the first place." It's the basis of all 12-step programs, that people have to first admit that they have a problem!

I'm sure many people would use the, "Everyone else is doing XYZ", as an excuse for spending money on various things .. whether it's conspicuous consumption or taking equity out of a house to fund vacations or even unnecessary home projects. When I was a kid, that "Everyone else is doing it .." didn't cut it with my Mom; she'd say, "If everyone goes to the edge of a cliff & jumps off .. are you going to follow them doing that too?"

Now that I bought a house a month ago, I've got a growing list of things to do. They all ought to be done, and many make a lot of sense to be done before I move in with all my furniture. I've laid out a cash flow plan for the next few months, and if additional projects come up, I'm getting used to telling contractors & sales people, that I may not be able to do/buy something, due to financial restrictions. The window treatment place even offered no interest financing; I told them that I don't spend money I don't have .. and miraculously they decided the second-best product line wasn't as bad as they'd described it, when they thought I'd just shell out $$$ for the #1 product line!

I believe I have posted in the past about a concept from Psychology 101 --- Deferred Gratification.

We have only a small percentage of people (don't know exact numbers) that are able to defer immediate 'pleasure' in order to gain something long term. The obvious application in finances is to not purchase uneeded items that you would LIKE (not need) and put the money to use for your retirement. 

This inability goes all through life. It's the same concept for diet/exercise. People HAVE to have whatever food items they crave rather than not eat them, or be very sparing, in order to maintain/improve long term health.

Another related term is 'inpulse control' (or lack thereof).

I won't keep rambling. The real point is that many studies have tied individual success (in all meanings of the word) to the ability to defer gratification. That is, you're healthier, wealthier, and wiser if you work on reason and planning, not impulse.  Lack of this ability means 'not learning from mistakes' because it wasn't perceived as a 'mistake' in the first place.