Posted on 02/14/2017 10:53:54 AM PST by DFG
Smart economists never predict the stock market. Our theory tells us that it's impossible. Leaving aside inside information, everyone already knows what we know and has traded on this old news and moved stock prices accordingly. Princeton economist Burton Malkiel popularized this point in his famous book A Random Walk Down Wall Street. The fact that only "new news," things that people don't yet know or expect, should change stock prices means that stock movements are supposed to be random — that is, unpredictable.
(Excerpt) Read more at dallasnews.com ...
I’ve lost value on my hoard of silver coins, compared to stock. Silver not going anywhere but down lately. Don’t put all your money in one bucket, spread it around to different things. It’s insurance if one bucket dips.
The markets will have corrections. Position /diversify your assets to minimize the hit.
The markets will rebound eventually. So if you didn’t sell in the panic, you didn’t lose any money.
You can send the check to mkehoe@FReeRepublic...
5.56mm
“That is one reason I’m out. Fundamentals don’t apply the way they used to.”
But where do you go when you get out?
Princeton economist Burton Malkiel popularized this point in his famous book A Random Walk Down Wall Street.
I consider A Random Walk Down Wall Street to be one of the best books written on personal finance and investing in the stock market and other assets. Actually, I consider it the best (but I have only read a dozen or so books on the subject).
Rising stock market makes Trump look good so all you need to dump your stocks to bring it down.
I've been reading this "get out of the stock market" baloney since 1979. That was the year that "My Sharona" by The Knack topped the charts.
Thanks for this. My mom’s trust is in the stock market and I have no say in the matter. So that is somewhat comforting.
100% correct you are. Without zero interest rates policy (ZIRP) SP500 would be selling around 1750. I pay no attention to DJ30 because the 30 stocks are constantly switched based on profitability.
As for the market, I expect the Trump bull market to continue for a month or two.
And yes, ZIRP by Janey Yellen has stolen from savers and seniors to finance welfare and foreign wars which gain nothing in return. Foreign wars on borrowed money is how most of the historical superpowers met their demise. Do not ignore history, otherwise you shall be doomed to repeat it. First time since Reagan we have a new president who does not believe in foreign wars which gain nothing and cost a fortune in money and blood.
Trading is like gambling. The typical player loses money in the long run. The house gains money by having an edge and following rules that exploit the edge. Be like the house, not like the typical player. Learn to read the charts and apply discipline, or just don't do it.
Precious metals are going up while the stock market is also going up. This is unusual as of late.
Hang onto to your silver. Solar depends on silver. It will go up eventually. Buy low and sell half when it doubles.
Show me any 10 year period where that is true.
Gold and Silver are commodities. They can out perform the market sometimes, but never over long periods of time.
Metals are better than cash but mutual funds are better than metals.
Real estate and junk silver.
I don’t have millions to invest. All my investments are either something I can hold in my hand or something I can walk on. They’ve already kept the house of cards up a lot longer than many experts thought they could, but it’s days are numbered. This is one reason they are trying to eliminate cash. Everyone “has to” be in one way or another.
But I’m opting out. I take this pretty seriously. It’s one reason I moved from Seattle to south central, rural KY in 2011. And I LOVE it.
Fiat currency always collapses. Ours is past due.
“Keep an eye on the FOMC.”
Sure thing. There goes one now..
Actually, I believe it was something like 1934 to 1974 or something like that.
The point was really not about the performance of commodities. The point was that it was exposing the devaluation of the currency.
About six years ago, I would hold ten Morgan silver dollars in my hand and say, back in 1922 these were worth $10. In 1972 they were worth $10. They are now worth $400. What changed?
A gallon of gas is worth as much today as it was in 1960. But it is worth far more in dollars because dollars are so worthless.
I bought mine at $!8. I didn’t buy it to sell it. I bought it to use it to buy stuff. I’ve not used any of it yet.
The price of silver has been manipulated, and so is the market. We are seeing the effects of QE still. All that money has to go somewhere, and the market is the answer.
I am dubious about that assertion. That $1K in the market is statistically likely to return $64K. In any case, I will be dead in 60 years.
“Used to be that if you put $1000 in the market, and $1000 in silver coins and buried them, 60 years later the coins were worth more than your stock.”
Hopefully you buried all the silver you could buy in 1980, you’ll be rich!
Sounds like my story!
My main concern is paying taxes on the gains [...]
Same here - was forced out (after 16 years) by my broker (ML) last July because they are cutting us non-U.S. residents loose. Expecting to pay beaucoup capital gains taxes this April.
[...] waiting for President Trump to reduce taxes and then I’ll sell.
"Getting out" is always the hardest part. Don't wait for lower taxes!
Regards,
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