That's one conclusion...
But where do they go from here?
Up and down. As they have since we've been tracking it. I'll just keep investing and rebalancing. If it goes down big, like I know it will eventually, I'll stay the course and keep investing. If I lose my job in a great depression, I wont be concerned about the S&P.
Right on point. You have to figure that parts of your investment portfolio will decline at different points in time in dollar terms. The only way to avoid that is to hold cash only. Diversify between different asset types and rebalance periodically. This guarantees that you will lock in some gains and will buy some assets while they are cheap.
Sometimes they all go down at the same time. In the US it has always gone back up. In other countries that may not be the case. The only thing I can guarantee is jumping out at the bottom and waiting for things to improve is a sure way to lock in those losses. Most everyone I know who got burnt in 08/09 did exactly this. They crapped themselves and pulled the money out to wait for better times. Well, better times came and they missed the boat.
Some didn't pull out, stayed the course, took huge losses, and have not recovered.
Some didn't pull out, stayed the course, took huge losses, and have not recovered.
Yeah, children will do that.
Are we still talking about investing or have we switched over to reproduction?
Some didn't pull out, stayed the course, took huge losses, and have not recovered.
Mark Dice strikes again! This time he is offering passers-by a 10oz bar of silver or a Hershey bar. The results are too predictable.
Why couldn't I fortuitously encounter this guy and walk away with something of significant value amidst a pack of dumbasses with candy bars?