most people throw in their $ into stocks/funds and have no idea what they're doing.Besides for the fact that many people are better off having a savings account for a bad day before trying to invest what they can't afford to lose.
Look at almost any portfolio over ten years, and you'll see a much bigger net gain than any savings or CD account. The problem is loss of liquidity. Penny stocks and the like are a different story. (Still, the fact that you know that the market will come back doesn't alleviate the feeling when you look at how much you lost in a week.)
like you said, the problem is loss of liquidity. And if you need the $ just when the market is down, you've got a problem.
Why are you guys still involved in stocks?
Look at almost any portfolio over ten years, and you'll see a much bigger net gain than any savings or CD account.
What happen when you try and catch a falling knife?
What about 1998 - 2008 and 1999 to 2009?
Looks like today will be a nice one, Good for those who invested yesterday.
Dead cat bounce?
NO!
The market recovered back to 1998-99 peak levels within a year. You're a moron if you sell as soon as the market crashes. Although the market did take six years to get back to the 2007-8 peak, and is not much higher today than it was then, after the losses of the past couple of days.
You said take any ten years and I did. Don't make statements you can't back up. Just admit you were wrong and move on.
My specific example had cases which didn't fit, but the principle is still true. The stock market continues to turn a profit long term. You just have to have the patience to stick out the lows. Anyone who sold out in the 2008 crash missed out on the recovery.
Market (djia) vs gold over twenty years.Gold is almost equally volatile, although it doesn't look like it. You would have made more on the market over the course of ten or twenty years.
which broker do u know that allows that ? td ameritrade doesn't the're quite competent.