Posted on 12/21/2023 6:33:32 PM PST by davikkm
Algos don’t understand economic reality along with the laws if supply and demand.
The market where the magical symbols representing a real company reside, is a screwed up version of Tron, where computer programs are fighting each other, with the Fed representing Master Control.
(Excerpt) Read more at citizenwatchreport.com ...
“if funds are invested over many years and decades and left to grow in a diversified groups of funds.”
I believe the history is that less than 10% of investors can or do make that happen.
The reason is that when the stock market crashes—and that will happen at least once over “many years”—most investors panic and sell. While fear is one factor another is that this is the exact time that there are many layoffs and folks need to tap that money to keep food on the table and pay their mortgages.
Most financial advisors are folks who tell you never to use past returns to predict future results—and then they go and use past returns to predict future results.
;-)
I've read that stocks keep up with inflation at about an 85% pace (if inflation is 10%, stocks go up 8.5%). High inflation will tend to steer stocks higher. Inflation is hell for seniors and the money they saved into bank accounts to live on, but stocks are a hedge against it ...
... until they're not.
ping
Bailout City
Yes. Absolutely.
Jaime Gorelick is a multi-millionare(ss)...
The market doesn’t represent the state of the economy. It seldom has.
They always have been … over time.
Investors is a term always used loosely to describe anyone with $49 in a 401k. The problem is most investors know more about physics than they do investing or portfolio management. That can include your Edward Jones guy. :)
You live in the lie.... What else can you do...can't go back to the farm, Bill Gates, or the Chinese owns that now.
“I’ve finally come to realize that our modern day version of “Bread and Circuses” is actually the Federal Reserve (a PRIVATE institution that has virtually nothing to do with the federal government) = The Bread part and the “Markets” = the Circuses, the distractions! So long as those two keep going up (ie, the printing of new $$$$$ in order to keep the “markets” propped up) the population can be kept relatively passive and harmless from revolting! I’m convinced that this is what’s been happening since the creation of the Federal Reserve and it’s been on overdrive since the late 1990’s! 🙄🤔🤨🤦♂️”
I agree. If you mention to someone that the economy is bad, they respond, “No it isn’t! Look at the DJIA and Nasdaq! A few tech stocks in the Nasdaq 100 (NDX) account for the rise in the Nasdaq in the past few weeks. I believe it is a bubble that is going to pop soon after the first of the year. There is no way they can keep this up until the November election. I believe once it starts to fall, it is going to fall hard and fast.
Commercial real estate and office space is up for a day of reckoning soon IMHO.
I see vacancies everywhere.
One of my projects for 2024 includes a demo of 5 buildings currently worth over $400M to build a “Data Center” City.
This seems to be the new trend.
Yes lots of people want to speculate and get rich quick and think they can outsmart the market etc. I’ve screwed up and done those same things but learned from my mistakes.
If one can invest 10-20% of their paycheck while working in diversified index funds and leave it alone for 30 years or more they will be fine.
Not at all. In fact, 1%'ers have much of their wealth outside the stock markets, such as real estate, bonds, or art collections.
Your typical stock market investor is a working person, funding their 401(k) retirement plans by purchasing index/mutual funds made up of hundreds if not thousands of individual stocks, usually tied to the DJIA, NASDAQ, or S&P 500.
These portfolios are well diversified and held over the long term (decades) before they are finally drawn down by retirement needs or RMD requirements. Even in down years, the 401(k) owners make out because they are now purchasing new funds at lower rates (dollar cost averaging), which results in them owning more shares to ride back up later.
This approach has made many working people millionaires in retirement. In fact, if one is able to save 10% of their income in a 401(k) over a working career of 40 years, they are essentially guaranteed to retire as a millionaire.
That's not to say that 401k milloinaires are living the Richie Rich lifestyle. Using the 4% rule of IRA withdrawals, one million dollars will be just $40,000 in annual income in retirement. However, paired with Social Security benefits, one can live relatively comfortable without any real financial worries.
“If one can invest 10-20% of their paycheck while working in diversified index funds and leave it alone for 30 years or more they will be fine.”
Let us take a closer look at that statement.
Here is what is true:
If folks invested 10-20% of their paycheck while working in diversified index funds and left it alone for 30 years or more they would have been fine any time in the last one hundred years.
Here is what is not true:
We know the future.
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