"Buy when blood is running in the streets."............Banard Baruch
It's a talent I have......the kiss of death...
You get in, you STAY in, and everything will be OK!
And then you have nasdaq somehow miraculously pulls out of nose diving by 3pm on almost every crash day?
You're the expert,what's going on? how is this possible?
Is their truth to a "plunge protection team" that Intravenously pumps money in the market when the breakers get tripped? This pattern happens way too often to be a coincidence. Thanks for any info
This sort of stuff happens once or twice every year. It's always one version or another of "The World is Going to End!"
Ignore it.
If you're investing for the long haul, none of this stuff matters other than it's designed to scare the crap out of you so you'll sell at the wrong time for the wrong reason.
Ignore it.
I'm familiar enough with the stocks I buy to say that. Not giving advice to anyone Dr.Porkchops.
This Deutsche Bank fiasco doesn't alarm you? this will be much bigger than Lehman brothers if they go insolvent.
I turn 57 Monday. I have a moderate level of risk aversion, and was not blest to have children. Robin and I both have good jobs, I teach she is a dental hygienist.
Her portfolio follows the common used ruled of breaking your percentage of retirement into bonds/equities with age into bonds, rest into equities. Robin pretty much follows that.
I am still 100% equities as I believe in the markets and like to live by what I preach. But, we will both have SS and I will have a pension, God willing we live long enough to see it.
I would be more worried if we were within 5 years of retirement and I did not have adequate income otherwise. If our markets collapse, it is all over. So for insurance in case that happens, we have invested in precious metals-lead:)
The age old advice that as you age and go into retirement you should move from equites to bonds, T-bills and CD's may have been OK when people retired an 65 and died at age 70.
But such a strategy is dangerous now as one spouse of a 65 year-old couple is more than likely live to be 85 or loger. If you don't have a significant part of your investments in equities, inflation compounded over those twenty years will decimate your buying power and you'll end up moving in with your kids.
The key concept here; The recent Recovery, or prosperity...whatever you want to call it is all debt driven. The gov pushes interest rates artificially low to incentivize buying of goods and investment.
Same with why oil is tanking, if you have heard otherwise- its BS. Many oil companies have borrowed for their expansion...its debt driven not equity owners as they know its stupid to sell oil at a loss. The equity owners stop pumping...then the price of oil adjusts due to lessened supply.
Now since its debt driven they have to keep pumping to pay the debt service....or even increase production to fend off bankruptcy. Its a horrible downward spiral that isn't finished playing out....so hold off on your oil purchases.
The writing has been on the wall for months.....the financial policies Obama has put in place are just showing their ugly head now. Will we get blips up during this slow grind down- yes. Don't let those fool you. There is money to be made when the oil bankruptsies and consolidation hit....if you have any money left.
lets look at those oil companies as an example of how it is "different"
In the past these companies had controlling owners that had the sense to shut it down and wait it out when they werent making money.
Many of these companies now are built on debt...and they have to have the income ratios or their notes are called..then bankrupt....so they have to keep pumping oil at a money losing rate...and it hurts all of them in the process.
So are these companies going to bounce right back- no.
No i'm sure the Fed will stop raising rates and other central bankers will continue their artificial stimulus- which has never in history been done to this degree,ever. The bubble they have created has never been done. So can it continue...of course. If I had a bunch of money in the SM, I would look at big upticks as an opportunity to hedge.
And its not just the Fed and Central bankers manipulating things....something like 70% of the market is HF traders....thats never been done in history...and the jury is still out on the LT effect. These markets are evolving at a lightning pace.
So is this time different....sure seems like it to me. Now will the old school buy and hold still work...probably in the long run....but not this year.
"....but not this year."
Unless you need your money to spend 'this year,' the performance of the market 'this year' is of no concern. What matters is how themarket capitalism performs between now and when you need your money in the years ahead.
This time it isn't different! This sort of stuff has been happening to one degree or another ever since there have been markets. And in the long run, downturns such as this are temporary, while market growth is inevitable
I got 7 more yrs till I retire. Hopefully the market will turnaround before then. I like the optimism. Hang on for the long run.
I'm thinking the Fed and Mega/World banks have tweeked the financial system about as much as they can are about out of tricks.
The Fed is now talking about negative interest rates! The only reason why the Fed would do this is because they are out of ideas and it's a Hail Mary move.They're already trying this in Europe and it's not working.
What is going to cause the worlds economy to miraculously bounce back?
Life is about to get real interesting!
God bless, Steve
My best to you Kyle...and all of the folks that are in the markets.
No one strategy works for everyone. We each have different comfort levels with risk, and have different situations. Talk to more than one advisor before any decisions are made.
You hit the nail on the head. The first and foremost rule in my business is "Know your client." That's for precisely the reasons you've mentioned.
When I meet with a potential new client, I spend 55% of my time interviewing them and having in-depth discussions with them about their current situation and their goals, hopes and dreams. Another 35% of my time with them is spent educating them about investing; especially the risks they are likely to face from time-to-time. Once that's done, making the right recommendations is a piece of cake, probably due to my forty-plus years of experience.
Nice bounce back in the markets today, btw. The question is, will this be the start of a move up, or is it a one day aberration in the recent downward slide?
We'll probably know in the next two-three weeks.
Has there been any time in history with rates so low, that if the Feds even mention raising rates by a lousy half percent that the stock market crashes?
How's those interest rates been workin' for you lately?
FYI, the Fed's raising interest rates have had ZERO to do with the recent market decline.
ZERO!
And what, actually, were they saying it about? Because your post gives us absolutely nothing to go on, one way or another.
Try again.
Mostly though, IMHO, all of this is due to failed socialist policies of varying degrees throughout the world.
