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The DJI closed just over 13,000 today. How are they finally "starting" to see some of that come back? Unless they were retards and sold at the bottom, they're completely back above board.
I would not call these people retards, just conservative. There was no guarantee that we would not see a major crash as per the Great Depression. 'Experts' were shaky concerning the market at that time. Maybe you just threw caution to the wind and gambled the farm and it payed off. Many have been burned by that mindset. Don't be so quick to judge.
I have seen the same thing. people depending on the company retirement plan. It is a good plan, but only a fool puts all his eggs into 1 basket.... Such a fool invites his own disaster.
No, these are people who thought they would actually be able to work through any problems, and many had their jobs outsourced. But your point is well taken.
I would not call these people retards, just conservative. There was no guarantee that we would not see a major crash as per the Great Depression. 'Experts' were shaky concerning the market at that time. Maybe you just threw caution to the wind and gambled the farm and it payed off. Many have been burned by that mindset. Don't be so quick to judge.
And how much lower than Dow 6,000 could it have gone? Sorry, but your argument holds no water, because a large chunk of the companies in the Dow were financially fit, they were just getting beaten up by the spineless who didn't know how to manage their portfolios. At Dow 6000 from Dow 11,000, you're already at a point to where you should just ride it out if you have any sense about you. It clearly wasn't going to go to Dow 3000 and sit there.
So yes, anybody who sold at the bottom was retarded with their money. And yes, I was a buyer starting at Dow 7000 and bought all the way to the bottom, and didn't start taking profits until Dow 11,000. It wasn't throwing caution to the wind - it was having a solid understanding of market fundamentals and economic reality.
And how much lower than Dow 6,000 could it have gone? Sorry, but your argument holds no water, because a large chunk of the companies in the Dow were financially fit, they were just getting beaten up by the spineless who didn't know how to manage their portfolios. At Dow 6000 from Dow 11,000, you're already at a point to where you should just ride it out if you have any sense about you. It clearly wasn't going to go to Dow 3000 and sit there.
So yes, anybody who sold at the bottom was retarded with their money. And yes, I was a buyer starting at Dow 7000 and bought all the way to the bottom, and didn't start taking profits until Dow 11,000. It wasn't throwing caution to the wind - it was having a solid understanding of market fundamentals and economic reality.
And I am certain that those who invested during the Great Depression before the second crash came thought the same thing - and many ended up jumping out of windows. You were lucky.
And I am certain that those who invested during the Great Depression before the second crash came thought the same thing - and many ended up jumping out of windows. You were lucky.
The 1930's != the late 2000's.
There are simply too many other sectors for the Dow to completely fail. The economy is too globalized for it to completely fail. Completely different scenarios, and anybody who was thinking 1930's in 2007 was too stupid for their own good, and needed to hire someone to manage their money. Luck had nothing to do with it. The ability to understand that there were companies that were trading at less than 1x forward earnings did.
Stock market "unpredictable"? Truer words were never spoken! But rising interest rates will make fixed-income paper more attractive for investors. That's why a diversified portfolio -- either self-managed or through a reputable financial service -- is a must. Include stocks AND bonds/fixed income instruments. It's a lot like owning parts of two horses in a two-horse race. Of course, you have to be in the game for the long run, and resist the temptation to cash in your chips when you're losing...
Buy low, sell high. I have that tattooed on my forehead in reverse.
x 2 for diversification, buying low/selling high, and all the bolded
Some other key concepts people should focus on are:
-dollar cost averagingsee buy low/sell high
(just start saving ... NOW! and keep saving regardless of what the market is doing at any one instant)
-proper asset allocation
(consider your risk tolerance, your time horizon, and don't forget to think globally)
-regularly scheduled re-balancingsee buy low/sell high
(regardless of what the market is doing at any one instant)
-you cannot 'time' the market, so don't even try to
-don't act or decide based on your emotions, especially fear or greed
Many states now have laws requiring adult children to pay for their elderly parents expenses. Some states put these laws on the books recently, foreseeing a time when the cuts in Medicare/Medicaid would result in tight times for state budgets.
Most people I talk to do not know of the existence of these laws, mostly because states haven't been enforcing them nor have others been suing under those laws to collect. However, that is changing rapidly. See the 2nd link for a guy who was successfully sued for $93K when his mother's Medicaid application didn't kick in fast enough after a car crash - the nursing home where his mother stayed briefly post crash decided it made more sense to come after him than wait on the Medicaid possibility. His mother had left the country after being discharged from the nursing home, and so I'm not even sure exactly how "destitute" she was. This was in Pennsylvania, and has been through the trial court and appellate levels there, thus so far, the son is on the hook for this.
In a nutshell, in a majority of states children may now be held legally responsible for the debts of their elderly parents, ie a judgment can be obtained and their assets potentially liquidated to pay their elderly parents bills - whether their parents were the victims of bad circumstances beyond their control, or whether they are have always been irresponsible. Once the children are stripped of their assets, then I guess you have another group of people who will be potentially destitute and need assistance.
However one feels about these laws, this whole deal really isn't going to end well - the only question is for whom will it not end well? Many believe kids should be the ones to help their elderly parents but aren't as comfortable now that it isn't just a nice theory but a reality where they can be forced do so whether it makes sense to do so or not (if their parents are spendthrifts or gamblers, if their limited resources were to be used for their own ailing child or their own illness, to name just a few scenarios).
the stock market was up around 14k in late 2007...by 2009 it dropped down to 6k...time to invest..I doubled my contribution to my 401k at 6k...have made back EVERY PENNY and then some since the drop..and I came into the 401k investing late in the ball game
if you invested in the stock market when it was 1500...the drop to 6000 was still a 400% increase
the stock market was up around 14k in late 2007...by 2009 it dropped down to 6k...time to invest..I doubled my contribution to my 401k at 6k...have made back EVERY PENNY and then some since the drop..and I came into the 401k investing late in the ball game
if you invested in the stock market when it was 1500...the drop to 6000 was still a 400% increase
Please give me the name of your crystal ball dealer. I want one just like it!
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But rising interest rates will make fixed-income paper more attractive for investors. That's why a diversified portfolio -- either self-managed or through a reputable financial service -- is a must. Include stocks AND bonds/fixed income instruments. It's a lot like owning parts of two horses in a two-horse race. Of course, you have to be in the game for the long run, and resist the temptation to cash in your chips when you're losing...
