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Because I don't think he knows what he's doing & the long term effects could be severe.
I regard the stock market as having been a flatline for 1.5 years. The Dow has been floating at this 25-26k level since January 2018. I've only been making money off of dividends since then; stocks are flat.
As for unemployment, that's nice, but that is not "all that matters."
Why select January 2018 as your starting point? Is it because it would it not fit your narrative if you mentioned that the market is up like 40% since Trump's election?
Edit: Ah. I see from your other posts that you have Trump Derangement Syndrome. Also, fyi, from January 5, 2018 to May 5, 2019, the Dow was up about 1200 points, or 5%. Not fantastic by any stretch, but also not that far off from what you would expect to see. When you factor in there was a 20% correction in there, and it followed a 30% runup or so in the first 15 months after Trump's election, I'd say it's quite good.
So, so sorry you didn't start investing until late 2017. Looks like you missed the Trump Bump. The rest of us knew electing a (generally) business-friendly president (particularly relative to Obama) would be good for the markets and assigned our portfolios with that in mind.
i was only refering to your comment about the dividends being your only return when the stocks are flat ... that can't happen because to see a return from a dividend the stocks must appreciate at least as much as the payout or total return is zero . each payout is offset by a matching automatic drop in price so markets have to pull the share price back up to see any return . if you have no appreciation in the stock the dividend cancels itself out and is zero total return . .
Oh ok, well I meant those investments are some of the few that are making money right now.
Oh ok, well I meant those investments are some of the few that are making money right now.
Okay , as long as you understand they can’t pay a dividend yet be flat and make money , they must appreciate back to the price they were pre div to see any return
I stupidly had some money in mutual funds from 2007-11. It went down about 45% in 2008-09 and recovered its value in fall 2011. Whole thing was a mess.
I stupidly had some money in mutual funds from 2007-11. It went down about 45% in 2008-09 and recovered its value in fall 2011. Whole thing was a mess.
And if you never sold them, they would probably be worth about double what they peaked at in 2007.
Again, doubling your investment in 12 years is not setting the world on fire, but it also isn't that bad, especially when you consider that period included the biggest recession in over 70 years.
In which case, we shouldn't be giving Trump much credit, should we?
There is nothing in the world that could get me to approve of Trump. He could give me a million dollars and a free night with Ivanka at Mar-a-Lago, I would still be against him.
Believe it or not, ALL of politics is just noise when it comes to the economy and the stock market.
It absolutely does not matter who is President or what political party is in power in Washington DC.
And if you never sold them, they would probably be worth about double what they peaked at in 2007.
Again, doubling your investment in 12 years is not setting the world on fire, but it also isn't that bad, especially when you consider that period included the biggest recession in over 70 years.
At the time, I needed the money. I had racked up debt trying not to sell those shares at a loss. To the extent that the whole thing was a learning experience, it was that you need to complete the "baby steps" before investing - have stable income, pay off debt, have an emergency fund, basically have ducks in a row.
At the time I bought those shares I had been convinced that I was going to "lose out" on returns. I had this idiotic idea that I could invest and the growth of the shares would outgrow my student loan interest & I'd pay them off quicker, win-win. That actually might not have been a bad idea if jobs had been easy to come by, but I had no idea how difficult the job market would be for the next 3 years. I thought I would just get a job like my parents, at about their income level, lickety split.
In retrospect I should have bought a car. I needed a car to get around & could have paid for a decent one without financing. Instead I had to finance a car waiting out the recovery. Or pare down the student loans.
I have little confidence we won't see a situation like that again in the medium term future... probably before 2030.
Last edited by redguard57; 05-06-2019 at 02:38 PM..
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