Posted on 06/12/2021 7:37:41 AM PDT by BenLurkin
On the bright side, I (and many others) have learned a lot in the past 30 years. People aren’t born brilliant in every endeavor in life. Sometimes you learn on the knee of masters, sometimes you go to the school of hard knocks.
One of the big lessons here is TEACH YOUR CHILDREN so they can avoid the same mistakes.
You forgot to include this...
“According to a recently released report from Crestmont Research, the rolling 20-year returns for the S&P 500 between 1919 and 2020 have never been negative. In fact, only two ending years (1948 and 1949) out of the 102 end years examined produced average annual total returns (including dividends) of less than 5%. In short, if you bought an S&P 500 tracking index at any point, you made money as long as you held on for at least 20 years.
As long as you have a long-term mindset, you’ll be ready when the next stock market crash arrives.”
This type of news could be another tactic Hedge Funds are using to recoup some of their losses after shorting meme stocks like GME and AMC. Billions have been lost as retail traders rally against HF. There are also allegations that HF are trading fake shares and the way to cover up such illegal activities would be to deflate meme stocks using a crash as a scare tactic.
The big problem is that you can’t just keep your money in a mattress… unless you don’t have much.
Here’s the 6th reason:
Passive population
It will be blamed on Trump, of course. Not on the bumbling old fool who is controlled by marxists who avoid showing their faces.
Regards,
A lot of us have been there and learned that hard lesson.
The real shame of investing is that it is almost formulary but we almost all learn the same hard lessons alone. I have envied people I have known who had parents who taught them how the process is done. I have acquaintances who are sophisticated investors but also play the market and do well. They may not have learned how from their parents but they were inspired and made confident by their parents doing the same thing.
My parents were children of the Depression, grew up dirt poor and never owned a stock in their lives. The only investments they had were in their giverment retirement and a savings account at the credit union. For all their lives they lived with the thought that they could be hungry again. They taught me a lot of other great things though.
I think I have learned and taught my children, you save for cars, houses and such. You invest for your future and maybe even legacy. It is like owining a farm. You intend to hold on to it and keep making improvements to it your whole life and expect it to provide your livelihood.
20 years is a long time for someone trying to live on investments in retirement.
In the long run it iwll go up.
In the long run we are all dead anyway.
Thanks!
There is a puzzlingly bizarre set of movements in investment in stocks, but I don’t think that is uncommon.
The market is really big, but something like another pandemic or war would certainly cause the economy to tank for a long while.
That strategy is called timing the market. It almost never works. No one can tell when a correction will happen. The government may continue with infinite stimulus and you’ll miss out on the chance to stay even with the inflation this causes.
If you look at how the big players do it, they keep a significant cash reserve and then buy more on the dips. If you sell at a high, you owe capital gains taxes which is huge hit when it comes to reinvest because you are investing significantly less money. Balancing the loss from the market going down versus the amount you lose to taxes when you cash out, means the stock has to go up much more to recover not only from the drop, but from the tax loss.
The best strategy for those of us not actually in a position to know anything is to buy well-run companies with a solid looking future and hold on to them until you must sell them. It’s a good idea to keep cash on hand so you don’t have to sell something on a dip to pay your mortgage.
“But should the Fed start aggressively raising rates, that will all change.”
Won’t happen. Too much debt.
Yes. That’s a common technique for capturing losses.
Please post when you liquidate. That will be my signal to buy LOL.
And China is going to finally invade Taiwan before the summer is over. They KNOW Sleepy Joe is no threat to them.
Sounds logical. Except they don’t ring a bell at the ultimate bottom. Like the article says there will be multiple bottoms in a bear market. No one has been able to forecast the lowest bottom consistently yet. And no body will in the future.
Once the crash happens, I am going to max out my 401k and allocate more to my S&P and index funds so that I can get more shares at a lower price.
Market crashes really help me save for my retirement. The crashes of 1987, 2000 and 2008 enabled me to build wealth much faster than if the stock market was stable all that time.
Sniffer is in charge.
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