RED ALERT: FX Dislocation In Process
Q: I have half of my portfolio in bonds and the other half in stocks. Heck, I just ride it down, buy some more, and ride it back up. No sweat, and no guessing when to get back in.
A:
Market is not the same as it was in the past. As late as in the 80s, folks
didn't have as much of their money in the stock market as they do now.
The market is much more volatile now. It has much greater swings, and investors seem
much more greedy.
I seriously doubt you will ever go through 19 years of waiting to get your
investme
will see some 100% returns very easily.
Take BofA for example. $4.77 or so now. How difficult will it be for that
stock to double. You think it is going to go sideways for 19 years.
Seems you have been listening to essentially the same crap, just opposite to
the buy and hold idea. Check out Berkshire Hathaway, and Buffet. When he
buys stocks, he plans to hold them forever. If you do not want to hold
forever, then do not buy them.
I haven't lost all my money. You shouldn't have all your money in stocks.
That is just greed. Greed is what kills investors.
Maybe you didn't notice, but we are already 9 years into a lost decade.
The S&P500 could double from here and we'd still only be at 2000
levels. Hell, it could take another 10-20 years or more for the Nasdaq
to reach its all-time highs.
You already could've made 100%, had you put your money into gold stocks
back in November.
That's funny considering Buffett admitted that he wished he would've
sold in 2000. Buffett doesn't hold stocks forever. He sold out on PTR
near the top of the market before it collapsed.
Anybody holding since 2000 has lost half their money. Anyone who
bought at the "bottom" in 2002, is making zero, or more likely, losing
considering they would've kept dollar cost averaging up. They would've
been better off in cash unless they sold at the top.