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I am a little confused and wanted to get opinions from people on CD as to the current stock market environment.
I was apprehensive when I lost a lot of money during the circa 2007 stock market crash. I'm still relatively young, and it appears as though I'm starting to recover my retirement fund losses. However, around November of 2012, I pulled my retirement funds out of the stock market and slid it into government bonds because I thought the stock market was going to tank due to (1) debt ceiling, (2) economic reports, (3) debt-to-GDP, and (4) an unstable, or non-collaborative, government.
But, even with all of the bad news and negative stuff you hear on TV, the stock market just continues to go up, and up, and up. On one hand, I'm reading about how the government is pumping money into the markets and that's why it's performing so well, but it won't last, and how stocks tend to do well at the start of the year and then tank around 2nd/3rd quarter, but all I see are stock market rallies. Meanwhile, I'm confused as to whether I should move my money, now, and buy at the current highs and then have the stock market crash or cash in on this bull market.
So, I wanted to get your opinions on the rise of the stock market in relation to current events, whether I should jump into the market from bonds, and get your future predictions for the year.
1) The market moves in cycles. If you are constantly going in and out of the market trying to predict bull markets, you are destined to lose long term.
2) The markets have been in uptrend chart formations.
3) There was no double dip recession.
4) Rates are virtually zero, so the stock market is attractive.
5) Corporations are hoarding lots of cash on the sidelines.
However, around November of 2012, I pulled my retirement funds out of the stock market and slid it into government bonds because I thought the stock market was going to tank...
Thanks. That's why I try not to watch the news and listen to talk radio. Sometimes, you can place too much confidence in stuff, over-think things, and try to outsmart a situation and wind up outsmarting yourself.
Thanks. That's why I try not to watch the news and listen to talk radio. Sometimes, you can place too much confidence in stuff, over-think things, and try to outsmart a situation and wind up outsmarting yourself.
Lesson learned. Thanks so much.
You're welcome : )
It's never too late to start again, just don't leave the market this time unless you are happy with your gains. I know many people who got out of the stock market in 2008 after Obama won and even to this day they complain about the market has gone up for no reason and it should be at record lows. Politics and current events shouldn't influence your decisions in the long term, but still should be researched so you are in the loop of short term movements effected by politics or current events.
It's never too late to start again, just don't leave the market this time unless you are happy with your gains. I know many people who got out of the stock market in 2008 after Obama won and even to this day they complain about the market has gone up for no reason and it should be at record lows. Politics and current events shouldn't influence your decisions in the long term, but still should be researched so you are in the loop of short term movements effected by politics or current events.
Thanks! Now, I'm just ticked at what I missed out on. But, like you said, it's a learning experience I hope I won't ever repeat again.
I've made tons of mistakes over the years, but like you said as long as you learn from them, you'll be successful. Don't be discouraged either because you'll continue making new mistakes too. I still make mistakes, but I learn from them instead of blaming the system. The only mistake I've made more than once was chasing stocks. Meaning, I'll do research on XYZ and believe it's a good buy. I end up buying it and then it goes down a week straight. I get discouraged and sell it at a loss. It then goes up and above my original price, so I think, "OH I WAS RIGHT" so I quickly buy it back and then it goes back down and I think, "ah forget it" so I sell it again at a loss.
Predicting market crashes is very, very difficult for an experienced, highly knowledgeable professional investor, let alone an average retail investor.
And once someone starts talking about stocking up on food and guns, FEMA death camps, UN invasions, Saul Alinsky, selling all your investments and buying gold, or compares the president to Adolf Hitler...you should definitely not get any investment advice from that person. You should only get investment advice from reasonable people who take great care to limit their emotions and bias, those who look at information objectively while constantly entertaining the possibility that they're wrong about something. Confirmation bias and emotion are two of your biggest enemies in investing.
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