In the grand scheme (meaning, 5+ years), this is a small blip. Buy more.
Stocks Off Sharply as Market Upheaval Grows
271–280 of 433 posts
Re: Stocks Off Sharply as Market Upheaval Grows
#272Earlier quoted context omitted.
Because it's the system that's pulled several billion people out of abject poverty in the last 30 years? I believe the system that was tried before that was called socialism, and didn't work as well as capitalism.
In Europe socialism created limited working hours, affordable health care, free public education all the way to university level - and beyond - and was also responsible for massive investment in infrastructure and R&D. Modern social democratic states wouldn't exist without it. You might want to understand what the word means before running down a political system you seem to know nothing about. As for abject poverty…
I'd hardly call Europe socialist. Socialism is the social ownership (state ownership) of the means of production. A welfare state is a state with large programs to ensure the welfare of the people, which better describes much of Europe.
As for extreme poverty, China has seen a 90% reduction in extreme poverty since 1981, and India has seen a 60% reduction since 1981, and Sub-Saharan Africa has seen a 12%. The Indian and Chinese reductions coincided with a relaxation on state owned industry and introduction of free market economic policies.
Hate the corruption, hate the corporatism, but according to the world bank (and nearly every other NGO), capitalism has reduced human misery on this planet like no other force.
Re: Stocks Off Sharply as Market Upheaval Grows
#273"There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved." https://mises.org/library/human-action-0/html/pp/818
There is absolutely zero political will for the voluntary abandonment of credit expansion. So, only the final catastrophe, the collapse of the dollar as the world's reserve currency, is the final outcome. It could be decades away however; there is just too much invested (literally and figuratively) in keeping the dollar afloat.
Re: Stocks Off Sharply as Market Upheaval Grows
#274I find it fascinating how this discussion goes, Do we differentiate between "healthy" and "strong" ? The US economy is, as far as I can tell, tethered in a macroeconomic sense, to the bill of the very expensive land wars it recently fought. The cost to the economy both in terms of government spending and workforce depletion as national guard troops were mobilized for duty in Iraq and Afghanistan. American worker prod…
> So lets say someone like Apple contracts to buy 10 million iPhone 6 baseboards, in Rmb at an exchange rate of $100 per board, and now when it comes time to actually take delivery and buy the boards they cost Apple the equivalent of $150 each. That sounds like it's the wrong way round.
You are absolutely correct, complete brain fart on my part. If their pricing in RMB they take the currency hit.
Re: Stocks Off Sharply as Market Upheaval Grows
#275People's investment philosophy will vary and tolerance for risk will play a major role in it all. My own view is this, and it is based on a lifetime of having made all the typical mistakes. Steady is the best way to go for your investable funds. That means, go with stocks for a decent segment of your investments but temper this with investments that will help preserve capital when things get rocky. Keep a ratio betwe…
The FTSE is where it was 17 years ago. Since this time everything has gotten way more expensive. Anyone in the UK following this advice from age 20 to 35 is staring down the barrel of working forever. The problem is they have a share in growth in the UK over the past 15 years and that growth is next to nothing. IMHO the old advice needs to be taken with caution. This is not your dad's market.
Yes, there was a bubble so if you invested all in one hit, all in equities, your timing was unlucky and you ignored the return from dividends then it doesn't look good.
Re: Stocks Off Sharply as Market Upheaval Grows
#276Earlier quoted context omitted.
It is probably out of frustration, because whatever language you use to argue something which is not supported by the mass media is rejected by most people as being 'fringe' or 'kooky' (Ron Paul being a well-known example). The public is only slowly waking up to the fact that mass media ownership has been consolidated among 5-6 major corporate/industrial conglomerates. Slowly, hence the frustration.
Yes, this is exactly it. You can use whatever technical indicators or statistics you want to create your alternative narrative, but if it isn't the MSM's narrative (which is frequently very poorly researched and extremely corrupted by outside interests) you won't be listened to because you're not "the authority" on the issue. The media has been on the bullhorn about "the recovery" for years now, trying to make it hap…
HN always reminds me of this comic: http://i.imgur.com/NIWnZgu.jpg
Re: Stocks Off Sharply as Market Upheaval Grows
#277Earlier quoted context omitted.
Warren Buffett says "If you're buying hamburger your whole life, do you want the price to be low or high?" For me, the situation is such a mess that I don't think we're close yet to what I would consider a buying opportunity. One saying is "buy when there's blood in the streets"... but I don't think we're there yet. Downvoted and slow banned. Why do I even contribute to this site?
When I saw the articles in my local newspaper over the weekend of this happening, I figured its almost time for me, a fresh college graduate, to jump into the markets. But considering how profound the issues of Chinese Real Estate bubble are - they were paying people to make it look like empty, recently-built, luxury apartment complexes had people actually living in them - I think the worst is yet to come and I'm sti…
Just start monthly investments into index funds / ETFs. Start with small sums if that makes it better, but do start with monthly (automated?) investments. I kind of hope someone would have pointed me to the right direction years earlier.
In case you're worrying of buying at the top: it's still a good idea. There's a very nice article [0] of what would have happened to an imaginary investor if he always bought at market peaks only, and held between the peaks.
[0] http://awealthofcommonsense.com/worlds-worst-market-timer/
Re: Stocks Off Sharply as Market Upheaval Grows
#278People's investment philosophy will vary and tolerance for risk will play a major role in it all. My own view is this, and it is based on a lifetime of having made all the typical mistakes. Steady is the best way to go for your investable funds. That means, go with stocks for a decent segment of your investments but temper this with investments that will help preserve capital when things get rocky. Keep a ratio betwe…
The FTSE is where it was 17 years ago. Since this time everything has gotten way more expensive. Anyone in the UK following this advice from age 20 to 35 is staring down the barrel of working forever. The problem is they have a share in growth in the UK over the past 15 years and that growth is next to nothing. IMHO the old advice needs to be taken with caution. This is not your dad's market.
The FTSE 100 total return index is at 5,898.87 i.e. the levels of November 2012: https://www.google.com/finance?cid=15424700
Re: Stocks Off Sharply as Market Upheaval Grows
#279People's investment philosophy will vary and tolerance for risk will play a major role in it all. My own view is this, and it is based on a lifetime of having made all the typical mistakes. Steady is the best way to go for your investable funds. That means, go with stocks for a decent segment of your investments but temper this with investments that will help preserve capital when things get rocky. Keep a ratio betwe…
The FTSE is where it was 17 years ago. Since this time everything has gotten way more expensive. Anyone in the UK following this advice from age 20 to 35 is staring down the barrel of working forever. The problem is they have a share in growth in the UK over the past 15 years and that growth is next to nothing. IMHO the old advice needs to be taken with caution. This is not your dad's market.
Selective end points. Dollar cost averaging is a simple way of solving this particular problem.
Re: Stocks Off Sharply as Market Upheaval Grows
#280People's investment philosophy will vary and tolerance for risk will play a major role in it all. My own view is this, and it is based on a lifetime of having made all the typical mistakes. Steady is the best way to go for your investable funds. That means, go with stocks for a decent segment of your investments but temper this with investments that will help preserve capital when things get rocky. Keep a ratio betwe…
The FTSE is where it was 17 years ago. Since this time everything has gotten way more expensive. Anyone in the UK following this advice from age 20 to 35 is staring down the barrel of working forever. The problem is they have a share in growth in the UK over the past 15 years and that growth is next to nothing. IMHO the old advice needs to be taken with caution. This is not your dad's market.
1) If you put all of your money in exactly 17 years ago, then, yes. You would be at the same place.
2) It still would've been paying you dividends that entire time
3) If you, rather than investing an imaginary lump sum at the top of the market 17 years ago, invested slowly as your savings accumulated over time, you would be ahead.
The FTSE hasn't exactly been sitting still all those 17 years.