Dedicated to Deposits: Deals, Data, and Discussion
Featured Savings Rates
Featured Accounts

Dow Hits Record, Erasing Great Recession Losses

Tuesday, March 5, 2013 - 5:03 PM
Under a program called "quantitative easing," the Fed has bought trillions of dollars of bonds to drive their yields down. The idea was that the puny yields would so frustrate investors, they'd have no choice but to shift into stocks. That, in turn, would push up stocks and make people feel wealthier and more willing to spend, helping the economy. Just as Bernanke had hoped, American household wealth, or assets minus liabilities, has risen, though the gains haven't been shared equally.  The rich have been the biggest winners of this bull market. Eighty percent of all stocks are held by the wealthiest 10 percent of households. Additionally, in this run-up, nearly all the buying has come from companies repurchasing their own stock in an effort to boost its value.

Dow hits record, erasing Great Recession losses | Business | Dallas Business, Texas Busi...
3
ShorebreakShorebreak2,607 posts since
Apr 6, 2010
Rep Points: 14,112
1. Tuesday, March 5, 2013 - 6:07 PM
The stock market is a roller coaster and just for money one thinks they can afford to lose, imo.  It's a given that there are times it will go down and times it will go back up.  The secret to making money in the stock market is being in it for long periods and hoping you will not need your money during one of the times the roller coaster is going "down".  Roller coasters make me nauseaus so I don't ride the stock market train.  However, if you are a psychic, and know when to get in and when to get out, maybe some can get off before it goes down and they need their money.
4
paoli2paoli21,367 posts since
Aug 10, 2011
Rep Points: 5,993
2. Tuesday, March 5, 2013 - 6:31 PM
Re: paoli2 @ 1. Tuesday, March 5, 2013 - 6:07 PM

Imagine reaching your point of retirement and losing 40% of your funds in a market crash such as we had in 2008. That's why a heck of a lot of people got out of the market and stayed out. As the article points out,  "nearly all the buying has come from companies repurchasing their own stock in an effort to boost its value". This is a market rally without a foundation.
2
ShorebreakShorebreak2,607 posts since
Apr 6, 2010
Rep Points: 14,112
3. Tuesday, March 5, 2013 - 7:47 PM
Here are five reasons why many Americans don't share Wall Street's cork-popping mood:

http://www.mercurynews.com/business/ci_22723524/many-americans-still-feeling-effect-economic-crisis-not



 
2
ShorebreakShorebreak2,607 posts since
Apr 6, 2010
Rep Points: 14,112
4. Tuesday, March 5, 2013 - 7:51 PM
Set an asset allocation appropriate to your risk tolerance.  Invest in low-cost index funds and a CD ladder. Keep enough in bond funds for re-balancing, if necessary.  Buy, hold, and re-balance.

Seriously, it's that simple.
3
BozoBozo137 posts since
Feb 14, 2011
Rep Points: 937
5. Wednesday, March 6, 2013 - 7:26 AM
What is the point of celebration when Dow finally climbs out of its grave it dug for itself many years ago??

Bozo's point (index/bond funds) is well taken; but I am too smart (or dumb:-) to stick with index funds and too intriguing to get into the boring bond funds:D

I deploy 20% of my portfolio in FLPSX (a major portion), FCNTX, FIGRX, and lately FSCRX.  I was in FINPX for a year and it did nothing for me; thus I ditched it.
2
51hh51hh1,476 posts since
Jan 16, 2010
Rep Points: 6,426
Reply