Top Reasons Not To Invest In The Stock Market

Discussion in 'General Chat' started by Sharpseo, Nov 17, 2005.

  1. #1
    This page has a great list of historical excuses people have used not to invest in the stock market. Then he shows what $10,000 invested at that time would be now, if invested in broad stock indexes. He proves that even when it seems like the world seems that it is headed for certain doom, investing in stock market makes money over time, a lot of money. Here are some examples:

    Obviously if you invest in high risk sectors, your returns can be far less or more. But if you buy broad based indexes, like the S&P 500, history says they have a good chance of providing high returns over time.

    http://www.john-ross.net/excuses.htm
     
    Sharpseo, Nov 17, 2005 IP
  2. latehorn

    latehorn Guest

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    #2
    How much was the inflation since 1960? How cheap was a central apartment in London then compared to now?
     
    latehorn, Nov 17, 2005 IP
  3. mark1

    mark1 Peon

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    #3
    thanks for the link sharpseo!
     
    mark1, Nov 20, 2005 IP
  4. latehorn

    latehorn Guest

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    #4
    You forgot this:

    1998 - The President was impeached and almost removed from office. What's next? $10,000 = $9,460


    1999 - With the Y2k bug about to crash all the planet's computers next month, I'm stockpiling food and water. You'd be a fool to invest now. $10,000 = $7,720


    2000 - The dot-coms all imploded and the NASDAQ is crashing. $10,000 = $6,170


    2001 - Terrorists destroyed both WTC towers, and a nuke is probably next. $10,000 = $6,940


    2002 - Enron, WorldCom, Global Crossing, there’s no end to these accounting scandals, and now the lawyers are going after Fast Food just like they did with Big Tobacco. $10,000 = $7,800
     
    latehorn, Nov 20, 2005 IP
  5. tesla

    tesla Notable Member

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    #5
    The stock market has historically always gone up over time. Their are skilled day traders out there who make big bucks and are good at what they do. I've done some daytrading myself. My advice to everyone is when you're doing good and making money, that is the time to sell.
     
    tesla, Nov 20, 2005 IP
  6. palespyder

    palespyder Psycho Ninja

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    #6
    I had a bum in Vegas come up and tell me to invest in gold, sooooo get on it folks ;)
     
    palespyder, Nov 20, 2005 IP
  7. Crazy_Rob

    Crazy_Rob I seen't it!

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    #7
    Crazy_Rob, Nov 20, 2005 IP
  8. ferret77

    ferret77 Heretic

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    #8
    when you factor in inflation according to the calculator on this site

    (which may be a pos)

    http://www.westegg.com/inflation/

    So basically those investments might not be that great
     
    ferret77, Nov 20, 2005 IP
  9. Blogmaster

    Blogmaster Blood Type Dating Affiliate Manager

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    #9
    I think some people just have a great instinct when it comes to investing in the stock market, they seem to do well no matter what's the season. if you have bad luck again and again, it't time to get out. Just like in Vegas...
     
    Blogmaster, Nov 20, 2005 IP
  10. ferret77

    ferret77 Heretic

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    #10
    oh wait i missed a number place, even with inflation it would be good
     
    ferret77, Nov 20, 2005 IP
  11. Sharpseo

    Sharpseo Peon

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    #11
    Good find on the calculator ferret. Like you said though, who knows how good their method is.

    Yeah, no arguing that the market has blown goats lately. If you look at the returns calculated though, there are a few periods like that, where your investment would have been greater by waiting a year or more.

    Someone said "If you would have invested in the car industry in the early 1900's, you most likely would have lost all your money". The vast majority of automotive start-ups failed. The same looks to be proving true for the tech boom. The companies that survived the crash are beginning to thrive again. Lots will still struggle, and go under. But there are some real stand-outs.

    Regarding stock-picking, it's mostly a game of luck. 75% of professional mutual fund managers fail to beat the returns of the S&P 500 average. The best way to invest, for the average person, is buying index and select mutual funds, using a dollar cost averaging method (DCA). DCA basically means you buy the funds over time, because trying to "time the market" is just about impossible.
     
    Sharpseo, Nov 21, 2005 IP
  12. lavanay

    lavanay Active Member

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    #12
    I think investing in stock markets is fine as long as you have researched the fundamentals of company that you are investing money into.
     
    lavanay, Mar 8, 2008 IP
  13. soniqhost.com

    soniqhost.com Notable Member

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    #13
    In the late 90s grocery store baggers where giving out stock tips, when that happens you know you reach a peak, today bums are tell you to invest in Gold. Its reached its peak.

    If you take any 30 year period in the stock market (including the 1929 crash) you'll average 10-12% return per year.
     
    soniqhost.com, Mar 8, 2008 IP
  14. Shazz

    Shazz Prominent Member

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    #14
    Shazz, Mar 8, 2008 IP
  15. lavanay

    lavanay Active Member

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    #15
    Fundamentally, gold and silver couldn’t be more bullish. The U.S. dollar is weak; and as the dollar falls, gold will rise. That is cast in stone.
     
    lavanay, Mar 8, 2008 IP
  16. soniqhost.com

    soniqhost.com Notable Member

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    #16
    Currencies tend to overshoot either to the upside or downside, and I'm pretty sure our currency overshot to the downside and in the next year or two will rebounds which would cause the price of gold to fall.
     
    soniqhost.com, Mar 8, 2008 IP
  17. LogicFlux

    LogicFlux Peon

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    #17
    I think the same is often true with the mob of average Joes calling bottoms too. When main street is abuzz with average people talking about how certain markets are horrible, there might be a bottom in sight in those markets.
     
    LogicFlux, Mar 8, 2008 IP
  18. Avatar Viper

    Avatar Viper Well-Known Member

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    #18
    this topic so old liao...
     
    Avatar Viper, Mar 8, 2008 IP
  19. SEOBusiness

    SEOBusiness Well-Known Member

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    #19
    Stock market always makes lose money.
     
    SEOBusiness, Mar 9, 2008 IP
  20. ahuddy

    ahuddy Peon

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    #20
    My investments always rise... until bush or bernanke make a public statement. Then all hell breaks loose and the markets crash every time.
     
    ahuddy, Mar 9, 2008 IP