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Old 10-31-2014, 02:31 PM
 
Location: Tampa, FL
27,798 posts, read 26,205,335 times
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Quote:
Originally Posted by mathjak107 View Post
nasdaq closed at over 5000 on march 10th 2000. it had been over 5100 earlier that day. we are still behind.
looks like Yahoo charts are unreliable.....none of their charts show over 5000 on Nasdaq

^IXIC Interactive Stock Chart | Yahoo! Inc. Stock - Yahoo! Finance
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Old 10-31-2014, 06:38 PM
 
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the part you are missing is it is skipping months . it jumps from feb to may i think. it is showing before and after it fell.

customize the date to show march and you will see the 5134 show as the high, i just tried it on your link..
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Old 11-01-2014, 05:38 AM
 
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in real return the nasdaq is still down about 30% or better .

keep in mind while valuations are better today than they were in 2000 we are at pretty high valuations by any yard stick.

looking at your balance today and projecting out 15 years at what your balance may be based on todays net worth may end up being very off base.

if you looked at your balance back in 2000 and fell asleep for 15 years you would be almost where you were in real return back then.
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Old 11-01-2014, 05:57 AM
 
Location: Tampa, FL
27,798 posts, read 26,205,335 times
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thanks for the correction MJ -

To the 30 yr old....dollar cost averaging over the course of 20-30 yrs will even out the peaks and valleys of the market - even if you experience what many of us experienced since the .com bubble burst......avoid putting large sums of money into the market at any given time, in my opinion. Hold steady over the long run....

Worked for me.
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Old 11-01-2014, 07:18 AM
 
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actually except for cherry picking a handful of time frames dollar cost averagong in is less volatile but also provides the least amount of growth.

historically maarkets are up 2/3's of the time and down only 1/3 so buying in over time would get you fewer and fewer shares at higher and higher prices.

in fact a target date fund would be the ultimate worse case since at the same time you are buying on over time higher and higer the fund is cutting back equity exposure leaving most folks with far worse performance than the fund gets.

ever wonder why we don't sell everything once we reach our desired allocation level and start over dollar cost averaging in again ,if dollar cost averaging performed better than just lump sum?

it is because 99% of the time you would hurt yourself by doing that vs lump sum.

lump sum is generally the best way ,but most folks have no other option but dca since they do not have the money.

i would not use a target date fund though if i was dca'ing in.

if i had a lump sum and wanted to dca i would put it all over no no longer time f ame than over the next year
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