Thank you guys for your reassurances with the stock market.
I am assuming this is just an interesting wave in the historic tide of the stock market?
This is not the beginning of the end where America starts to lose its foothold as a world leader and eventually plunges into a new era of 'depression like times'?
I assume this is like the whole Indy-mac collapse...created a flurry of activity and panic but in the end had really no big bearing on the big picture?
Everyone tells me that when I eventually need the money tied up in the stock market- it will be there. Everyone also told me I should buy a house during the height of the boom. I cant help but wonder if people have been brainwashed into a certain way of thinking- by people who's lives and careers are dependant on us continueing to think that everything will be ok. I have seen alot of propaganda and have become very cynical of all the way 'advertisements' make their way into our lives disguised as fact and public assistance.
But I am hoping very much that the difference between the reassurances that the stock market will eventually return to it's previous climbing status and the advice I was given to buy into the housing market- is that the former advice is from people who actually know what they are talking about.
I have a few worries- That other countries (or terrorists) will see our weak financial state as a big vulnerability and figure out some way to use it to wipe out/take over/ ruin America. Dont say it cant be done. No world leader has continued forever...well...England has a pretty good track record. but they might be reletively young as well. It's been awhile since I have sat in on a history class.
I also worry about how the baby boomers will impact this. I am very spotty in my history/financial education. But I think one of Americas largest generations is now entering retirement and drawing off social security. They are also well respected for their contributions to the stock market...but now they need money from the stock market. I wonder how/if the baby boomers will somehow unintentionally set the stock market into a downward spiral.
Maybe I should look at this as "the stock market is correcting itself." As the housing market is correcting itself. Sucks for the people who need to sell their home now- or bought high- but in the long term of things this will educate people to see 'bubbles' in the future and this whole housing crisis really has no long term impact.
At this point I feel that I am 'stuck' in the market. So I will stay in. I have not heard a peep from my financial advisor in many, many months- and as far as I know- he needs my ok if he wants to sell or move things around.
I cant wait till this whole financial crisis is over so I can maybe use this experience in the future when the next big crisis starts brewing.
Deep breaths. Repeat to myself "This is a learning experience. This will help you in the future."
Musings on the stock market
September 15th, 2008 at 01:29 pm
September 15th, 2008 at 03:56 pm 1221494212
Yes, history is in the makings, but it's localized to very specific companies that are involved. For them though, the problem is systemic, and even fatal (such as Lehman right now).
But that doesn't mean you're going to go broke and end up having to fend for yourself from marauders on your way to the soup line. In fact, I'll bet you could go through your days and if you've never heard of any of these news, you wouldn't even have noticed that anything has changed....
Remember the dot com burst back in 2000? To this day, some people still haven't fully recovered from that, but as you can also see, the economy and life still went on. This, despite the fact that the market (Dow) dropped even lower than it is now (8000 versus 11000).
I have to get going, but please don't worry. Unless you're holding to a bunch of Lehman stocks.
September 15th, 2008 at 04:46 pm 1221497177
The other factor is that people don't liquidate their portfolios on the day they retire. They may sell stuff over time, but it is a gradual process and there are plenty of younger workers and institutional investors pouring money into 401k and Roth and other accounts to buy those shares.
September 15th, 2008 at 09:33 pm 1221514417
September 16th, 2008 at 01:30 pm 1221571835
You are right to be cynical of advertising. Whenever you get advice, you have to factor in the position, and the motives, of the person or institution giving that advice.