U.S. stock investors should curb expectations, adviser says(Wall St. worried)

Market Watch ^ | 10/30/09 | Kate Gibson

[TigerLikesRooster]

U.S. stock investors should curb expectations, adviser says

Technology, materials and industrials should perform as economy recovers

By Kate Gibson, MarketWatch

NEW YORK (MarketWatch) - As stock investors hunt for higher returns in light of what some are calling a "new normal" of reduced expectations, analysts point to early- cycle stocks as among those that stand to gain as Asian demand for goods picks up.

Equities investors accustomed to an average rate of return in any rolling 20-year period at around 11% would be wise to adjust their expectations downward, says Doug Lockwood, chief investment officer at Cornerstone Wealth Management.

"We're in a bit of a new normal when it comes to investing, and that type of growth rate is probably not possible going forward. You may not want to plan your retirement based on the same appreciation rates as the historical average," Lockwood says.

[TigerLikesRooster]

Wall St. says, “It's not that good but still good.” LOL.

[Frantzie]

11% over the past 20 years? Are they delusional? May a total of 11% or a half percent avg a year.

[Deo volente]

Dow Jones plunging right now, down 225 points.

[TigerLikesRooster]

Wow, it went down by 35 points since my last check.

[Landru]

>ping<

To what y'all already know by now; or, at least anticipated.

[stephenjohnbanker]

: )

[Katoolie]

“Dow Jones plunging right now, down 225 points.’

That is the bad news.

The good news is that you can buy a lot more stocks now with the same amount of money.(grin)

[foolishboi]

Target 9619 will we get there today?

[TigerLikesRooster]

If all PPT boys are catching food poisoning during the lunch time.:-)

[Overtaxed Patriot]

My expectations were curbed last November.

[foolishboi]

Hide the Pepto I’m short. :)

[Gvl_M3]

I kind of keep an eye on the market and commodities (nymex).

Are investors delusional right now are something?

Why would stocks go down 200 early in the week, Oil down 2-3.00, and then up on Thursday. Right back down on Friday.

Seems someone was trying to prop up the market yesterday and it is all crashing back down today.

Doesn’t seem to follow any rational process.

[foolishboi]

The Dow was destined to drop at 10125. Lets see if Soros pumps more money into the market at 9620.

[TigerLikesRooster]

No fundamentals translate to no sustainable upward momentum. We have very volatile swings at best, which is a result of aggressive move to prop up the market. It can go only so far unless there is a real fundamental to back it up.

[lainie]

You may not want to plan your retirement based on the same appreciation rates as the historical average," Lockwood says.

Sheesh, they've been saying the exact opposite as long as I've been alive.

[grey_whiskers]

Short term fluctuations of this kind ("fibrillations" I call them) often are a harbinger of a sudden leap or crash.

...or not.

Cheers!

[Gvl_M3]

Thanks for your replies.

Based on companies still laying off people and the general climate out there, these wild fluctuations just didn’t make sense to me.

I guess I have a nagging feeling that the bottom is going to drop out again soon.

I know the value of the dollar has some impact on oil & gasoline prices, but with the same amount of people not working, the summer driving season is over, tractor trailers parked because there is no freight to move, I just don’t see oil spiking all of a sudden. Let alone gas prices. How do they “find” unexpected high inventories?

Ok, Rant off.