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Old 06-19-2005, 08:17 PM
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jmjj215 jmjj215 is offline
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Default Re: Sage Advice For The Apprenticed Investor

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Ah, but you had suggested a “50/50 stock/bond portfolio”. Not to mention that even a 66/33 split delivered about a zero return, which in it’s fifth year would be amassing significant losses in inflation adjusted dollars.
True, but then I readjusted it based on what a "retiring" portfolio should look like. Even at 50/50 your loss that year would've been -3.1%, not too scary for one year.

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It doesn’t really matter what the configuration of broad stock holdings one held, as some $9 TRILLION has been lost in the stock market since 2000.
Is that realized or unrealized loss for the investors? Not everyone is worried b/c not everyone was retiring in 2000. Along with a "$9 TRILLION" loss, the future gains in the next decade could (might, maybe, we hope) offset those losses. I don't think you can pick even a five-year window in the stock market and start to get too worried about it.

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A darn fine question, which is the question I have been raising, in the form of a devil’s advocate, in these forums.
Alright, turn off the Devil's advocate switch and come up with some suggestions

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That’s just it. “Buy & Hold” no longer works. Even Wall Street has admitted this now.
Would you mind pointing me to some (or just one) places where Wall street has admitted this? Thanks.

Edit: I just took a look at the "Millionaire" thread you referenced above. Feel free to disregard my last two responses to your quotes (wall street admission, and your suggestions). I kind of picked them up there.
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