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Index Last Change % Change
I DJI 17,148.94 -1.58% icon-down.gif -276.09
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The historical rate of return for the US Stock Market is 10.4%...its about long term, continuous investment.

People will always need tires, food, clothes, basic home products. Look at the Mall any day of the week and it sure does not seem folks are without discretionary income. We bought a new Subaru the other day and the dealer said their sales for 2015 was over 4000 cars. I know Ameirprise Financial hires people to look at these trends as well as observing shopping malls, etc for a real world perspective on life as we know it.

I try not to fear things beyond my control. Some like to though.
 
We are due for a major downturn, In real terms the DOW is about the same place it was 16 years ago (adjusted for inflation)

Buy and hold is no longer a valid investment strategy

If you have money in the market, now is a good time to take profits and hold some cash
 
China has the ability to muck up everything. If China crashes hard enough there is no way the rest of us get out smelling pretty.

I personally believe we are in for some very tough times in the coming years. I dont think there will be a good time to be in the market for most of the rest of the decade
 
Because I'm one of them tin-foil wearing conspiracy fruit loops I cashed-out 10 years ago when interest rates dropped to below inflation and, as it happens, I had it all in cash when I divorced my Leftist wife:) who, as a Marxist atheist must really enjoy her current employment with a Christian based company.;) Not that I'd wish her on a Christian but maybe she'll discover that Christians, unlike Leftists, don't eat their young:eek:.
Yes, I follow the middle of road doom sayers and it has saved me a bundle. Some might say I lost a chance to make a bundle more, to them I say 'Your ruled by greed and it's none of your business!":p
 
Because I'm one of them tin-foil wearing conspiracy fruit loops I cashed-out 10 years ago when interest rates dropped to below inflation and, as it happens, I had it all in cash when I divorced my Leftist wife:) who, as a Marxist atheist must really enjoy her current employment with a Christian based company.;) Not that I'd wish her on a Christian but maybe she'll discover that Christians, unlike Leftists, don't eat their young:eek:.
Yes, I follow the middle of road doom sayers and it has saved me a bundle. Some might say I lost a chance to make a bundle more, to them I say 'Your ruled by greed and it's none of your business!":p
Hopefully it wasn't a qualified fund where you lost 40% in that cash out. :eek::)

In my early years of investing I panicked and told my investment adviser to pull my funds and put it all in cash management. Within a couple months there was a rebound and I would have made a ton if I had stayed the course. I haven't made that mistake since and I have reaped a considerable profit because of that.

In the past 20+ years there have been many doomsday "profits" scaring folks telling them to pull out and go to precious metals. While Gold rose from $400/oz to $1500/oz may have been a good investment even with taking a 40% cash out hit, I always wondered why the gold hawkers would so readily want to trade their gold for paper money, especially when they claimed gold would go to $3000/oz.

Sounds like your eX must work for Providence...if I was to take a WAG
 
Welcome to 2016, same as 2015; the market will go up and down this year with the overall end result being somewhat flat.

The current hiccups are not as bad as October, and we already recovered from that.

As mentioned, if you are in the market, you should be in it for the long term. I am, I have been in the market for about ten years and overall I have averaged about 7% returns on investments in that time. Last year I didn't do well, but I didn't do poorly either - just flat. Day to day, my investments in the market go up or down 5% or thereabouts.

If you can't take that kind of news, then stay out, otherwise ignore the daily ups and downs because that is the nature of the market, has been for decades and it isn't the sign of a downturn until it is long term (more than a year or two).

I lost 40 to 50% on paper during the dot.com crash, and got that back and then some. I lost about 20 to 30% on paper when the housing bubble burst. I didn't pull anything out either time, and I made money as a result.

Those who pull out during a downturn are ignoring economics 101; buy low - sell high. They are doing the opposite; buying while the market goes up and selling when it goes down, which is a sure way to lose money. If you average your investments over time and don't worry about short term downturns, you generally make money over time because the downturns average out with the upswings and the general trend is up.
 
No need for a young person to depend on or be a slave to .gov later in life. As Dave Ramsey says, do something now that your later self will thank you for.

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you would do well to turn your market investments to cash now and get back in at the bottom in a few years.

Buy and hold worked for 50 years, for my parents and grandparents it was sound strategy. What we are living through now and have been for the last 20 years is a monitory experiment that will result in huge destruction of wealth and a reset of the system. It is a opportunity if you understand it. If you insist on "standing firm". You will me mostly wiped out.

Just remember this, in a few years when your destitute, and all the talking heads say "no one could have seen this"

You could have opened your eyes, done some digging on your own and saved yourself.

Ask a Japanese investor how a buy and hold position worked out over the last 30 years. We are headed down the same path
 

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