Been lurking for 4 years...decided to post. Think I’m going to buy..

You can still make money , even more money, in the stock market when it crashes, if you know how to trade... The problem is people make the assumption that stocks go up over time but that is not always the case. Volatility is your friend if you are a real trader rather than an investor. There is much better places to invest your money other than the stock market. But for somebody that understands the markets, there is alot of money to be had in both directions

 

No one who worked their entire life to fill a retirement account has the intestinal fortitude to hold still and watch their 500k lifetime savings drop toward 100k without selling, thus wiping out all gains. What good is a million bucks when youre 80?

The general public is essentially forced by the govt via 401k programs to put their money into public trading markets. CD accounts no longer keep pace with the fed's "inflation targets." But you, the amateur emotional investor, arent playing against other poker faces. Youre playing against emotionless trading algorithms with nanosecond orders at investment banks that will get bailed put by YOUR tax dollars if they mess up bad enough. Its not the purely human market that it was when warren buffet was studying graham and dodd.

A rising tide lifts all boats. Stay in markets long enough and youll get wiped out. Its a pump that puts the money into the houses account over time. When markets are high, get out. When P/E ratios are cheap, buy in. One crash can end a lifetime of prudent investing. We're in a megaphone pattern. The next crash will make 2009 look like the kiddie pool.

"Irrational exuberance" is an important read for any young buck who's starry eyed at the returns that the brochure promises. I sure was. I managed the modest savings my parents started for me before i was born, from 6yrs old. Crushed it with CD accounts into adulthood, split it 50/50 between ira and mutual funds and made a dot com killing that was wiped clean in the dot come crash. Then the housing bubble, then 09.

It wasnt for lack of intelligence, research or discipline, i was always a money nerd who always worked, and it ALL went to other people. My whole life was a financial train of bad luck. Dont bet it all.

A cash home is a safer bet than any other. If they arent appreciating so what, you still live in it mortgage free.

 

I made it through the 2009 stuff. I will tell you my secret. Don't sell or get out when things go down because they will probably come back. Just like it did, unless you close to retirement. Then you start taking all you money out because you now need it and can't afford to lose it.

 

Nice post. I lost a hard earned $2000 when I was 16 by trading stocks. It’s funny how my heart rate would increase when I bought in, then that emotion works against you! I got kinda unlucky on one but that’s just the way it goes. Around 18 yrs old I lost another hard earned 2k trying to trade forex. Got over leveraged trying to score a big one. I look back as it was money well spent gaining that invaluable experience though.

I never was into school though. I liked real world ####.

 

I would love to have all the money I have lost in one way or the other over the course of my life, I just chalked it up to a continued education. lol