Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Trump is so unpredictable and dangerous in his ignorance, normal investing philosophy of ignore market ups and downs and stick with the game plan may not be valid for everyone.
That is an, uh, interesting perspective. I don't share it.
Quote:
Originally Posted by Ariadne22
He is capable of enormous harm in areas we may not yet recognize. The crazy volatility is a symptom. Bogle has said he's never seen anything like this. ..At the very least, holding much higher cash position until Trump is gone is probably wise. ... For now, sitting on cash is not a bad idea.
And yet Eugene Fama, Nobel Prize winning father of modern portfolio theory that Bogle adopts, finds the volatility a non-worrisome consequence of efficient markets. The consequence of efficient markets is that attempting to do something such as hold a much higher cash position is sub-optimal.
At the end of the day, each of us must decide just how much risk we are willing to bear. Once we've decided how much risk we are willing to bear, then and only then should we construct a portfolio of asset classes (including cash) that generate the highest return for that level of risk.
I think in your case you see much more risk in the market than do I.
That's OK.
Going back to first principles, the reason I expect a positive ROI on an investment is because I'm willing to incur a risk that someone else such as you has explicitly declined to take.
Last edited by SportyandMisty; 04-10-2018 at 12:02 PM..
Is Trump still president? Why does the market still have some good days while he is still president? It just does not make sense if the Trump haters are correct, hmmmmm... Time will tell who was correct but one thing I am pretty sure of, had Hillary won, then we would likely be at war with Russia, maybe Iran and who knows who else, how would that have played out on the market?
The stock market correction that began on January 26 is playing out as expected.
We are about 2 and half months in. Probably closer to the end than the beginning at this point. But we shall see.
What correction? The drop in the stock markets started when Trump began to threaten a trade war. It drops more every time he makes the same threats or takes some action. If he backs off, the markets at least partially recover. Without the Trump trade war rhetoric, it is likely the markets would have continued the upward march and the DJIA would be about hitting 30,000.
What correction? The drop in the stock markets started when Trump began to threaten a trade war. It drops more every time he makes the same threats or takes some action. If he backs off, the markets at least partially recover. Without the Trump trade war rhetoric, it is likely the markets would have continued the upward march and the DJIA would be about hitting 30,000.
Na...first big drop had nothing to do with Trump. It was on rising rates and inflation fears..
the first down round , was on trumps tax cuts when the markets realized they can be quite inflationary and possibly not a good thing like they first thought .
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Watching this market fly around can be dangerous to ones health.
