98-2001 were the big day trader years, I've been following and investing in the market for the last 12 years and this year in terms of volatility is similar to 98.
Lost a fortune on them. I should have stayed with my trading group who all did very well and were short on the market before the crash. Hevy trader group. They were an awesome group of guys. AHHH memories
12 years!!!! I think I better keep my mouth shut when it comes to investments That encompass some of the worse turmoil in the history of the stock market.......and you are alive!
You live and you learn, I've made some good investments and I have made some bad investments. My reasons for thinking that this may be a good time to invest in the market are. 1. The market is nearly down 20% and unlike in 2000 when the market ran up a lot before hand being down 20% in a short period of time means a lot of weak investors will get shaken out of the market which is what creates buying opportunities. When everyone says sell that's the time you should be buying. 2. P/E ratio's are in line with their historic averages meaning that they may not fall much lower and falling interest rates tend to expand P/E ratios. Worst case scenario. Stocks stay stagnant for a while. 3. The market has fallen based on uncertainty which it hates, I think the market will get the answers in the next few months on the sub prime mortgage mess and on the state of the economy which will let it rebound. That’s why I think it’s a good time to get into the market slowly. I still would avoid financial stocks because it will be a while before everyone knows who holds what but the recent down turn has given an opportunity to buy good companies at discount prices, for example google its down nearly $200 in the last month and nothing really has changed. They are still the market leader in a fast growing industry
Well I think the Great Eastern Philosopher Confucius once said that even in a group of three, there are bound to be one whom you can pick up knowledge and learn from. There are much more than 3 here . Hope to learn more from you guys and also thanks for being unselfish in sharing your knowledge.
Struggling against my better judgments Till now have not touched them but some of them are framed so nicely that it is hard to resist, but I will resisted them at all costs.
if cutting rates is the only way to boost slowing economy, then Japan would have been the fastest growing economy for the past decade.......Fed must keep in mind the threat of Inflation and not only what stock markets like him to do.........
Japan was my classic study of liquidity trap, but USA politicians not matter what can't beat Japan politicians when it comes to procrastination......
Have you read Ron Paul's Economic plan? That's the way to get America back on track. Not by cutting or raising rates artificially. We need to get back to work, and produce more than we consume, or we will be consumed by our lack of production.
No offense that man has the brilliant idea but not the charisma or the political power base to achieve this. It stepped on the toes of too many establishments, in the end what I can foresee is a watered down version. It is usually easier for people to accept the good news and not the bad, to spend but not tighten their belts. One man is not enough, the general electorate still thrive on one liners rather than comprehensive plans. That is IMHO, not trying to offend the USA citizens in anyway. The last few elections that I followed, usually the worse man wins. I don't know why, but it happened.
Yeah, I'm not talking about Paul's elect ability. Just the plan. It's the right one. It's the best one.
The path to hell is paved with good intentions, plan itself needs someone to execute. You need another Churchill, who can take a Coventry in stride, sacrificing in short term to ensure long term prosperity.
In Theory its very nice, in reality it doesn't work. For example what if American made goods cost more to produce which would then carry a higher selling price (Which is very likely) How would Ron Paul respond to American goods not selling well or at all when their competitors goods made overseas are filling off the shelf’s because its a similar good at a lower price. 1. Would he respond with trade tariffs against other countries? 2. Subsidize American production Or 3. Let the market take care of it self
I haven't touched equities in the last year but for a recent buy in the stock NVR. Its just way to volatile right now, currencies are shaping a lot better but still, a ton of volatility around the clock.
The difference between Japan and the US is that the Japanesse save. The US has one of the lowest savings rates and most consumers carry high credit card debt.
The Japanese also work. They don't complain about sick days, vacation time, etc. They work, and they work hard. They're industrious. The Chinese aren't more productive than us when it comes to knowledge and skill, but 100 Chinese workers can outwork 2 smart American ones. And that's what we are up against. Too many people looking for a free ride or some entitlement.