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Sure Coupon. I did not say no-one made money, go back and read what I posted again. Aside from that, personal anecdotes used as some sort of proof can't challenged or verified by anyone else. It's easy enough to check up on what I have posted if one is really interested in knowing. Nobody, I would assume, is much interested in your bank statement.
One more time. The stock market of today, is not the one you keep describing. It's no skin off my back but I'm willing to bet there are going to be a lot more that are going to be eaten by the sharks because they think they know the formula (properly diversified, hah) for winning at today's stock market. Anyone else reading this, go read up on high frequency trading.
Basically you are saying "this time its different" when you say "the stock market of today"...
If I had a nickel for everytime I heard that line....
Not to be argumentative or anything, but throughout time there are always people who say that and look at the results....
My philosophy w/the market is that it isn't different. If you stick to a plan you can use it to reach your goals whether you're just starting out or nearing retirement...very simple.
Basically you are saying "this time its different" when you say "the stock market of today"...
If I had a nickel for everytime I heard that line....
Not to be argumentative or anything, but throughout time there are always people who say that and look at the results....
My philosophy w/the market is that it isn't different. If you stick to a plan you can use it to reach your goals whether you're just starting out or nearing retirement...very simple.
I'm with lumbollo on this one. It's nothing more than gambling and has turned into one big Ponzi scheme. The younger generation may start opting out of investing in these schemes.
I'm with lumbollo on this one. It's nothing more than gambling and has turned into one big Ponzi scheme. The younger generation may start opting out of investing in these schemes.
When you say "its nothing more than gambling", can you explain what you mean by that when it comes to investing?
When you say "its nothing more than gambling", can you explain what you mean by that when it comes to investing?
You have no control over the what the companies do that you are investing in. From their decision making, strategy, thought process, etc etc. Even researching them, I don't think you can learn enough information about the company to make a qualified decision. And by the time we regular people learn about scandals or bad decisions, it's too late.
I just don't see how I can put a few hundred dollars into a stock or mutual fund every month and expect it to magically grow into hundreds of thousands of dollars by the time I retire.
And if it did work for a select group during a select time period, I don't think something like that can last forever.
Only time will tell, but I'm skeptical about the future of investing in the stock market as a way to ensure retirement.
What happened in the 1980s, as I said above, is irrelevant to today's situation. People had real wealth creating jobs in those days and that allowed home prices to appreciate. Starting in the years since and accelerating greatly through the late 90s and 2000s, there has been a wholesale transfer of the wealth creating jobs in this country to China, India, and other parts of the 3rd world. This was done under the broken view that it would bring cheaper goods to the USA. The problem with this approach, and it is simple, is that people can't buy things when they don't have real jobs.
Take away government borrowing, which has replaced consumer borrowing, and we revert back to an instant economic disaster. The government has gotten a bit of a reprieve from how fast this is happening due to the fact that the Euro is cracking up and the people who no longer believe in it are moving their money to the $ and gold. If they fix their problems, this could disappear overnight. If not then it will take a little longer, but none the less, it doesn't address the overall problem with the USA economy. There can't be house appreciation in the absence of real wealth creating jobs.
Forget what happened in the 1980s because our economy is nothing like that now. Until this issue is actually addressed, and Obama has demonstrated that he has no interest in making real changes to the status quo, housing prices are going to continue to fall regardless of the interest rate. Falling rates just mean more suckers are going to be drawn into the abyss.
You have no control over the what the companies do that you are investing in. From their decision making, strategy, thought process, etc etc. Even researching them, I don't think you can learn enough information about the company to make a qualified decision. And by the time we regular people learn about scandals or bad decisions, it's too late.
Well, my take on this is that its more risky to hold a majority of your money in CD's and cash (not saying you are exclusively doing that, but) because IMO you are limiting your growth potential and you are taking a huge risk not keeping up with inflation. Being diversified in mutual funds across the whole spectrum along w a healthy dose of bonds (according to your risk tolerance and timeline till you need the money) will give you a much better fighting chance of reaching your financial goals IMO.
Quote:
Originally Posted by sheenie2000
I just don't see how I can put a few hundred dollars into a stock or mutual fund every month and expect it to magically grow into hundreds of thousands of dollars by the time I retire.
And if it did work for a select group during a select time period, I don't think something like that can last forever.
Being diversified from day one and not listening to the CNBC's of the world (ie noise) has helped (and exceed) me to be on track to reaching financial goals. I guess I'm one of those people that you consider "the lucky few" or such.....The problem is you have so much "financial porn" pulling you in so many different directions that people panic and many times "sell low and buy high". The one good thing about the correction a yr and a 1/2 ago was that it showed what everyone's risk tolerance was and if you were invested too heavily in equities......it basically was a repeat of '74-'75.
Quote:
Originally Posted by sheenie2000
Only time will tell, but I'm skeptical about the future of investing in the stock market as a way to ensure retirement.
Over time, after huge volatility, many people have said the same thing (this time its different/ and being skeptical of the market), and no matter what I say will change your mind. That's ok to agree to disagree. I just know its been successful for me (even after the dowturn of late '08).
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