taxgun wrote: "Most folks" ??
I wonder where you came up with that one.
And twice, no less.
Jeeze....I guess I could have said the average family has over $5,000 in credit card debt and is not in any position to take on additional debt.
In fact, according to the MSN LINKED article, credit card unpaid balances average $8,000.00and43% of Americans spend more each year than they earn. -And these are two year old estimates from 2006! Suffice it to say the figures are much larger today!
Skid Row Joe wrote: Dick, do you think interest rates are likely to rise anytime soon? This and CDs, seem to be what's weighing on most older RVer's minds lately with their 401K's.
Joe, I don't see interest rates rising much until after the election season. Too much political pressure to keep rates low to supposedly spur the economy.
But, regardless of interest rates, if folks don't have money to spend the current interest rate is a non-issue. There is little left in the housing equity market to borrow on, and most folks are already maxed out on their credit cards.
With the rise in energy, food, and other required living expenses most folks have little left for non-essential toy purchases.
The above comment partly explain why I see the stock market continuing to decline. As the elderly pull money out for retirement expenses there will be less money available to put back in thus lower stock prices. Purchase demand will be down and also the money supply to make purchases. Lower product demand (stocks) and less money available for purchases results in lower average prices.
The "spin" on those comments were negative.
If someone charges a new bed, a sofa/chair, they are creating debt on some
type of credit.
If someone buys a car on credit, or even 2 cars at the same time, it is on
a longer term contract.
Is this negative ?
Charge airline tickets for a vacation, Put the hotel bill on a credit card.
There should be a law against it ?
I know, there are people here who believe every dollar spent should be out
of current income.
That's just another opinion, and we know about that, don't we.
Joe
If you can read thank a teacher.
If you can read in English thank a veteran
my3sons wrote: The worst thing you can do is to pull your money out of the market now. The stock market goes up and down in the short-term. However, over the long-term, stocks have always outperformed fixed-income securities (bonds) and cash (money markets). The key is to hang tight and not fret.
I have another 15 years until retirement and am 100% invested in stocks. To me, the evidence (see long-term returns per Ibbottson Associates) shows that stocks are the best alternative out there. In fact, I would argue that you are at GREATER risk by not being in the market to some degree.
Traditionally what you mentioned about the market is true. However, there is a very strong possibility the market may not come back or take a very long time to do so. We are no longer the strong growing industrial nation we once were and a large portion of the strong companies that are left are foreign owned.
I would strongly suggest diversifying your funds. I have about half my savings in income producing real estate. Real estate like the stock market goes up and down. However, they don't make paper land and I don't think the Good Lord is making anymore either. Thus, in the long term land will always increase in value due to supply and demand.
The only place to be is U.S. Treasuries. Anything long-term from the Treasury paying 3% or greater is a true gift horse right now. Lock-in before they nosedive too! We are on the brink of deflation that has never been seen in 60+ years in this country.
The only place to be is U.S. Treasuries. Anything long-term from the Treasury paying 3% or greater is a true gift horse right now. Lock-in before they nosedive too! We are on the brink of deflation that has never been seen in 60+ years in this country.
Quite the switch from your posts a week or so ago, chastizing me for not earning a consistant twenty percent!
Quote:
Skid Row Joe wrote:
Anyone getting 10% to 12%, or "9.64%" for a period of years, has lost a lot of money over those years. Anyone that hasn't done 20% compounded or more average per year the past 5, 10, or 15 years, has made some bad decisions. You need to fire your broker.
* This post was
edited 07/07/08 06:55am by Sea Dog *
Skid Row Joe wrote: The only place to be is U.S. Treasuries. Anything long-term from the Treasury paying 3% or greater is a true gift horse right now. Lock-in before they nosedive too! We are on the brink of deflation that has never been seen in 60+ years in this country.
Sea Dog wrote: Quite the switch from your posts a week or so ago, chastising me for not earning a consistent twenty percent!
Skid Row Joe wrote: Anyone getting 10% to 12%, or "9.64%" for a period of years, has lost a lot of money over those years. Anyone that hasn't done 20% compounded or more average per year the past 5, 10, or 15 years, has made some bad decisions. You need to fire your broker.
Claire, in past years I think better returns were available and common although I think perhaps Joe exaggerated just a bit.
However, in the near-term and next economic cycle I tend to agree with Joe that good returns are going to be hard to find - unless one has a lot of funds to put in the right places and can hold for a considerable period of time.
* This post was
edited 07/07/08 09:16am by Dick A *
Skid Row Joe wrote: In fact, according to the MSN LINKED article, credit card unpaid balances average $8,000.00and43% of Americans spend more each year than they earn. -And these are two year old estimates from 2006! Suffice it to say the figures are much larger today!
That lends sufficient creedence to Dick's "most folks" statement. -Especially since Americans consume/spend most dollars they earn in the first place.
I've seen citations that about 40% of Americans pay off their credit cards every month. That $8000 isn't spread evenly, but far more than the "average" is held by the half living beyond their means.
Sea Dog wrote: The only place to be is U.S. Treasuries. Anything long-term from the Treasury paying 3% or greater is a true gift horse right now. Lock-in before they nosedive too! We are on the brink of deflation that has never been seen in 60+ years in this country.
Quite the switch from your posts a week or so ago, chastizing me for not earning a consistant twenty percent!
Quote:
Skid Row Joe wrote:
Anyone getting 10% to 12%, or "9.64%" for a period of years, has lost a lot of money over those years. Anyone that hasn't done 20% compounded or more average per year the past 5, 10, or 15 years, has made some bad decisions. You need to fire your broker.
You seem to be unhappy with any opinions you read here. And since past returns hold no guarantee of future returns, especially in an ever changing market economy environment, can one reasonably expect another investor to know the future too? I don't think so.
Skid Row Joe wrote: The only place to be is U.S. Treasuries. Anything long-term from the Treasury paying 3% or greater is a true gift horse right now. Lock-in before they nosedive too! We are on the brink of deflation that has never been seen in 60+ years in this country.
Sea Dog wrote: Quite the switch from your posts a week or so ago, chastising me for not earning a consistent twenty percent!
Skid Row Joe wrote: Anyone getting 10% to 12%, or "9.64%" for a period of years, has lost a lot of money over those years. Anyone that hasn't done 20% compounded or more average per year the past 5, 10, or 15 years, has made some bad decisions. You need to fire your broker.
Claire, in past years I think better returns were available and common although I think perhaps Joe exaggerated just a bit.
However, in the near-term and next economic cycle I tend to agree with Joe that good returns are going to be hard to find - unless one has a lot of funds to put in the right places and can hold for a considerable period of time.
DickA,
The fund I cite that has returned through 12/31/07, precisely 20%+ compounded average annual return since 1965. It may or not do as well in the future. We only know there is a flight to CDs, Money Markets, and U.S. Treasuries. The future other than those three are unknowable at this time. Everybody is on their own in this game anyway.
Sea Dog wrote: The only place to be is U.S. Treasuries. Anything long-term from the Treasury paying 3% or greater is a true gift horse right now. Lock-in before they nosedive too! We are on the brink of deflation that has never been seen in 60+ years in this country.
Quite the switch from your posts a week or so ago, chastizing me for not earning a consistant twenty percent!
Quote:
Skid Row Joe wrote:
Anyone getting 10% to 12%, or "9.64%" for a period of years, has lost a lot of money over those years. Anyone that hasn't done 20% compounded or more average per year the past 5, 10, or 15 years, has made some bad decisions. You need to fire your broker.
You seem to be unhappy with any opinions you read here. And since past returns hold no guarantee of future returns, especially in an ever changing market economy environment, can one reasonably expect another investor to know the future too? I don't think so.
On the contrary, The opinions here do not sway me one way or the other.
I was merely commenting that your statement that 3% pecent govt bonds are now the way to go after stating that anyone should strive for around twenty percent.
Seemed to me quite a switch in thinking in a couple of weeks.
Perhaps I read you wrong.
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