11–20 of 433 posts
How about a more useful index than the Dow, which fails to account for basic stuff like market cap? S&P 500 % drop or something would be more meaningful. EDIT: The page in question lists it actually, S&P 500 down 4.1%.
Nothing to be surprised here. Anyway, finally this might be the perfect time to consider a market entry again after a lost year so far. Lost if you were refusing to buy at much too high prices. Let it go down some more days and invest then.
https://en.wikipedia.org/wiki/Market_timing#Evidence_for_mar... > Studies find that the average investor's return in stocks is much less than the amount that would have been obtained by simply holding an index fund consisting of all stocks contained in the S&P 500 index.
How do oil prices factor into this? The price has already been diving in this last quarter. Oil stocks also make up a huge portion of the Dow formula.
I think it's a bad sign when they can write an article and get it out in under 25 minutes...but by the time they release the article, the market has gone up by half the amount it fell on opening. This market is severely flawed.
I think it's a bad sign when they can write an article and get it out in under 25 minutes...but by the time they release the article, the market has gone up by half the amount it fell on opening. This market is severely flawed.
Nothing to be surprised here. Anyway, finally this might be the perfect time to consider a market entry again after a lost year so far. Lost if you were refusing to buy at much too high prices. Let it go down some more days and invest then.
https://en.wikipedia.org/wiki/Market_timing#Evidence_for_mar... > Studies find that the average investor's return in stocks is much less than the amount that would have been obtained by simply holding an index fund consisting of all stocks contained in the S&P 500 index.
Just ask Japanese investors.
Or Chinese investors from 2007. They went sideways for eight years, and after their bubble deflates will likely see 20 total sideways years.
Or the Nasdaq from 1999 to 2012.
Point being, even the premise of index buying requires some smart timing or your returns - if any - will be extremely poor.
Earlier quoted context omitted.
https://en.wikipedia.org/wiki/Market_timing#Evidence_for_mar... > Studies find that the average investor's return in stocks is much less than the amount that would have been obtained by simply holding an index fund consisting of all stocks contained in the S&P 500 index.
Yes, you can enter into the S&P 500...
"The New York Stock Exchange said it will halt trading for 15 minutes if the Standard & Poor’s 500 Index drops 7 percent." [0]
How is it fair that the markets get put on pause if they're failing? I really don't understand.
[0]:http://www.bloomberg.com/news/articles/2015-08-24/nyse-will-...
Earlier quoted context omitted.
https://en.wikipedia.org/wiki/Market_timing#Evidence_for_mar... > Studies find that the average investor's return in stocks is much less than the amount that would have been obtained by simply holding an index fund consisting of all stocks contained in the S&P 500 index.
Which completely falls apart if you are 'unlucky' and buy at the wrong time. So by its very nature, buying that index fund requires good timing as well. Just ask Japanese investors. Or Chinese investors from 2007. They went sideways for eight years, and after their bubble deflates will likely see 20 total sideways years. Or the Nasdaq from 1999 to 2012. Point being, even the premise of index buying requires some smar…
Or just investing a regular amount of new money on a regular schedule, which will even out the timing issues.