Fri 21 Nov 2008
What’s Your Game Plan For A Lost Decade?
Posted by RichSlick under Money Management
[2] Comments
There have been many comparisons of our current credit crisis to the Japan crisis of the 90′s and the ensuing “” in which equities returned essentially nothing after inflation and adjustments.
If you were to assume that the U.S. stock market is heading toward a “lost decade” then what is your investing game plan? Will buy & hold work in this condition? If you’re in your 30′s or 40′s and the plan is to buy and hold for the next 10 to 20 years then isn’t this essentially “market timing?”
How many people are going to re-balance their portfolio and asset allocation in this mess? I don’t see how reallocation will work anyway because all across the board: commodities, equities, real estate, bonds have all been trashed.
So I’m curious, what’s your game plan for a lost decade?
November 21st, 2008 at 1:14 pm
Hope & pray. I’m 22 and it seems all fundamentals and analysis are gone and thrown out the window. The stock market has finally realized that it has been “played” and “hustled” for so long through cheap credit and easy money. I say DOW drops to around 4000.
Isn’t it ironic that all the boomers are losing their money, just when they’re going to need it the most.
Sit down, buckle up, hang-on, this ride is going to be a wild one.
Great site by the way!
November 21st, 2008 at 4:28 pm
The stock market reacts based on emotion.
For instance, today Obama picked Timothy Geithner for Treasury and the stock market went up.
Yes it seems like it will take a lifetime to actually get your money back.
You have to be diverse, real estate, trade options, start a business, develop more streams of income- do something. The stock market should not be the only place to put money