Thread: How can the stock market ever be trusted again?

Originally Posted by Populist

Despite all of the Wall Street crooks & thievery, I haven't fully lost faith in the stock market. And I'm not going to panic, sell and lock in my losses now, as I have a long time horizon. Remember, when the market recuperates most gains will likely be made in a short period of time. And I'm worried about high inflation in the coming years.

I AM HOLDING ON TOO. ITS TEDIOUS THOUGH.

Moving from General Discussion to Other Topics.

Originally Posted by redpony353

Originally Posted by Bowman

Originally Posted by redpony353

YES THEY ARE AFRAID. I DONT BLAME THEM...I AM LOOSING MY SOCKS IN THERE. BUT I AM STAYING IN TILL IT GOES BACK UP. THERE IS NO REASON TO GET OUT OF ANY STOCK THAT IS HEALTHY. UNLESS THE COMPANY IS GOING UNDER OR SOMETHING.

I FEEL SORRY FOR PEOPLE. THEY DONT KNOW WHAT TO DO. THEY DONT WANT TO TAKE OUT THEIR MONEY AT A LOSS, BUT THEY ARE SO AFRAID TO LEAVE IT IN. I HOPE I AM DOING THE RIGHT THING BY STAYING IN.

If you don't need the money in the next year or two leave it in. Before this dip I had 1/3rd of my IRA in Government bonds, 2/3rds in stocks. The value of my stocks has declined to almost the same level as the bonds, if the stock value goes below my bonds value I will sell bonds and buy stocks because at that point they are a bargain. It is called keeping a balanced portfolio, at my age (52) you want to have more money in stocks than fixed income. Around age 55 or 60 it should be 50/50, after age 60 you put more than 50% into the fixed income funds.

Originally Posted by Bowman

Originally Posted by redpony353

Originally Posted by Bowman

Originally Posted by redpony353

YES THEY ARE AFRAID. I DONT BLAME THEM...I AM LOOSING MY SOCKS IN THERE. BUT I AM STAYING IN TILL IT GOES BACK UP. THERE IS NO REASON TO GET OUT OF ANY STOCK THAT IS HEALTHY. UNLESS THE COMPANY IS GOING UNDER OR SOMETHING.

I FEEL SORRY FOR PEOPLE. THEY DONT KNOW WHAT TO DO. THEY DONT WANT TO TAKE OUT THEIR MONEY AT A LOSS, BUT THEY ARE SO AFRAID TO LEAVE IT IN. I HOPE I AM DOING THE RIGHT THING BY STAYING IN.

If you don't need the money in the next year or two leave it in. Before this dip I had 1/3rd of my IRA in Government bonds, 2/3rds in stocks. The value of my stocks has declined to almost the same level as the bonds, if the stock value goes below my bonds value I will sell bonds and buy stocks because at that point they are a bargain. It is called keeping a balanced portfolio, at my age (52) you want to have more money in stocks than fixed income. Around age 55 or 60 it should be 50/50, after age 60 you put more than 50% into the fixed income funds.

AT THIS POINT I ONLY HAVE ABOUT 10% IN STOCKS RIGHT NOW. I SMELLED TROUBLE WHEN THE HOUSING MESS STARTED TO BECOME EVIDENT LAST YEAR, SO I GOT OUT OF WHAT I COULD. BUT SOME HAD LOST VALUE SO I LEFT THEM IN. I CAN AFFORD TO LEAVE IT IN TILL IT GOES UP. AFTER THIS MESS BLOWS OVER I WILL PROBABLY GET BACK IN AGAIN WITH THE MONEY I HAD TAKEN OUT. I WAS DOING PRETTY GOOD UP TILL ABOUT A YEAR AGO. I AM 55 SO I HAVE TO START BEING MORE CAREFUL.

I honestly believe that the stock market will never fully recuperate. Its "different" this time. Its not like the "great depression" that our parents or grandparents went through. Its more "global" now.

Originally Posted by butterbean

I honestly believe that the stock market will never fully recuperate. Its "different" this time. Its not like the "great depression" that our parents or grandparents went through. Its more "global" now.

The Great Depressions was Global also.