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.
Of course, it sat at 1527 in May, 2000. So a slight loss over almost 13-years.
This is true. However, the stock market was in a historic dotcom bubble at that time. By contrast, the S&P 500 was only at 460 just 5 years before that in January 1995. So, a 229% gain from then until now. If I knew back then what I know now about investing, then I probably could have cut my losses dramatically during the bear market downturns. Live and learn, as they say.
The more important point now is that the stock market is likely to go even higher and significantly exceed historical highs in the coming months and years. This is something to keep an eye on, though it's not guaranteed of course.
Really? The Nikkei has been falling since 1989, what if that happens to the SP500?
It's not out of the question. We all take risks in life. Personally, that's why I own 25% in a global bond fund as well as money in an emerging markets stock fund and a global stock fund.
This is the third time the market has been at these highs since 2000. We saw these levels in 2000, 2007, and now in 2013 these same highs are being tested. The S&P 500 peaked near 1520 in 2000, it peaked at about 1560 in 2007, and here it is again at those same levels in 2013. After each of the last two peaks the market has turned down aggressively too, so another logical question is if that process will repeat itself as well. After each of the prior two spikes the S&P fell to about 800.
Wiping out significant wealth for not only the wealthiest 1%, but also for investors of all types, retirement plans, and college savings accounts that were heavily invested in the markets.
--------------------------------------------------------
So, for those long term, never sell, holders, who bought in the 1990's and watched it all go away in and after 2000, and in and after 2007, are you wanting to see it all disappear again?
As mathjak already stated, the S&P 500 index doesn't include the dividends. Returns have been lousy since 2000 for sure, but dividends clearly added to returns in a significant way.
Also, companies are earning a lot more per share now than they were in 2000 and 2007, so they higher index is more justifiable.
That doesn't mean it won't go down or even crash. But in general, the market is much more rationally priced than it was in 2000 or in 2007.
[quote=Sage 80;28028424I prefer not to deal with that kind of stress. I'd rather sell when I make a decent profit, i.e., after prices have been rallying for a while. Then I get back in when prices drop again.[/quote]
Yeah, yeah, yeah. Easy to say. Extremely difficult to execute. Everyone thinks theyy're going to be the ones who can do this, but very few can.
Whether you are a bull or a bear.
No matter your time frames or investment tools, take 29 minutes to watch and listen to this video. Jeremy Grantham Interview - CNBC
At one moment in the video he says he is not sure when a decline could begin.
He mentions 1500 at one point.
He may be wrong and he may be right.
But, all investors of all kinds should hear his opinion.
I know it's not for everyone, but there are "regular" people out there who study the markets and do very well with the buy low/sell high method.
The people who can do this consistently are not "regular" by definition. Sure, they may be "normal" in the sense that they may be nice, humble folks who look ordinary and do ordinary things outside of their investing...but they are clearly much smarter intellectually and emotionally (temperament) than the vast majority of people.
The people who can do this consistently are not "regular" by definition. Sure, they may be "normal" in the sense that they may be nice, humble folks who look ordinary and do ordinary things outside of their investing...but they are clearly much smarter intellectually and emotionally (temperament) than the vast majority of people.
Maybe I just got lucky, but I was able to call the March 09 market bottom within a few days of accuracy. I just had a gut feeling about it because everybody was acting like the world was coming to an end. I didn't know how to spot the previous market top in 07, unfortunately, so that didn't leave me any additional cash to invest at the bottom. This time around will be different, hopefully.
I don't even want to tell you how many time my gut feelings cost me giving up gains.
My gut feelings are the main reason i resort to a newsletter. They force me to keep my gut feelings out of the equation.
That's true. I rarely go by that. But it happened that one time, which I thought was interesting looking back on it now.
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.
