Quote:
Originally Posted by CK78
Saw this fluff propaganda piece tonight on ABC World News with Diane Sawyer and was surprised that even in the in the midst of their "Pravada" level journalistic piece they admitted that there are LESS jobs today than 2007! I'm skeptical of their 12 million number too. That's probably the amount of people actually collecting checks. Anyway here it is:
Dow Jones Industrial Average Has Record Close - ABC News
What's scary for the average citizen is that according to the establishment this economy has recovered and is humming along but with that average income dropped to a low not seen since 1993 levels and it's not translating to more jobs as more automation and outsourcing take place.
I guess the moral of the story is get into the top 10-20% of earners and wealth holders in this country or forever hold your piece. Or in other words if you're in the lower 80%, "You be f*****d!" |
1. The rise in the markets is due to the fed pumping money
2. The average income of US citizens is less now than 2008
3. The average savings of US citizens is less than 2008
4. There is more personal debt than 2008
5. We have a consumer driven economy
When things don't add up, they usually don't. How many times have I heard, "this is different"! I avoided the crashes in '87, 2000, and 2008. I sold out of this market at 10,500 Dow. Did I miss some profit? Of course! I have accumulated wealth by avoiding losses.
This market, as it is mostly fed driven, will eventually crash and there will be tears again. When will that happen? I don't know, as my crystal ball is in the repair shop. However, one must lock in profits simply move to other investments when a good profit has been achieved. That "number" will be different for everyone.
Interestingly, I tinker with my investments. I leave all my kid's investments alone and buy them only stocks, bonds, and mutual funds. They have had several stocks, by holding, become essentialy worthless (Lucent, Pacific Gas and Electric, Circuit City). They have had several stocks that have gone up several hundred fold (Apple, Best Buy, Cisco). Because of holding onto "home runs", they have done better with stocks than I have. However, I have far eclipsed "thier" investments by using other vehicles, such as realestate. I have given them the option to manage thier own portfolios now. They have all declined, as they are busy with college and to them that money is almost "imaginary", as they did not earn it, have not spent it, and have not mentally "bought" something with it. It might as well be Monopoly money to them. The amount that each has is far more than the investment portfolios of most adults who have worked a long period of time.
Take home message-
1. No man can predict the future
2. sell when you feel good about your investments (I usually sold when I felt compelled to check the value of my portfolio several times a week). This saved me from three crashes, as stupid as it sounds.
3. Don't watch or read "fiancial news", with the exception of the WSJ. The rest are entertainment.
4. the herd is usually wrong, but they are "right" short term
5. markets are driven by forces that go beyond the capacity of the individual to fully understand and be "nimble" enough to "beat the market".
6. We forget about what we have to pay in taxes when calculating "gains"
7. You can only deduct $3,000 per year from investment losses (I have had to do that a few times)
8. Everyone gets thier ass kicked every once in a while, which reminds us that we are not as smart as we think.
9. Most stocks, if held long enough, will become worthless over the long run.
Any "stock market gurus" I have ever run across are usually lying when thier record is closely analyzed.
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