Global turmoil

sweeps · #1 (**permalink**) 07-13-2006, 01:23 PM

Middle East erupting into war
Iran manufacturing nuclear weapons
North Korea firing missiles all over the place
Oil at a record high $77/bbl
Stocks dropping 1-2% per day
Inflation and interest rates on the rise
Recession right around the corner
Almost everyone is pessimistic about the future

Is everyone else thinking what I'm thinking??

Yup, what a great time to buy stocks cheap for the long term...

Ima saver · #2 (**permalink**) 07-13-2006, 01:26 PM

What are you buying, sweeps??

Majan · #3 (**permalink**) 07-13-2006, 02:04 PM

I'm waiting a few more days to see if Wal-mart, Home Depot, and Adobe go down some more.

Joan.of.the.Arch · #4 (**permalink**) 07-13-2006, 02:41 PM

Honestly, buying stocks is not what the news makes me think of.

boefixepa · #5 (**permalink**) 07-13-2006, 02:50 PM

Humm...I read that and though, good thing I have a year's worth of food at my house for when I can't afford to buy it!! That way I can use my $50 a month for food to pay for gas!!!

Broken Arrow · #6 (**permalink**) 07-13-2006, 04:10 PM

I'm with sweeps. The US, anyway, was in far more danger during WWII and the Cold War than we are now. And yet, we survived all that, so why wouldn't we fare similarly, if not even better now?

It's a great time to be a buyer.

pyotr · #7 (**permalink**) 07-13-2006, 06:47 PM

Unless of course the whole thing escalates so that Israel, Pakistan, and the US end up exchanging several nuclear warheads and puts us all into a nuclear winter. I don't foresee my stocks being worth too much at that point.

Broken Arrow · #8 (**permalink**) 07-13-2006, 06:50 PM

Although it's possible, it's also a logical extreme. As in, extremely unlikely to happen.

My humble opinion anyway.

pyotr · #9 (**permalink**) 07-13-2006, 06:54 PM

a couple of stocks I think are WAY DOWN - outstanding companies and outlook : BSTE, ACUS, AMAT. I think if you buy like a thousand shares of ACUS now, within 5-10 years you could be sitting on $300,000. I have no ties or financial whatevers with any of these companies. In fact I don't even own any ACUS shares yet but I'm going in on it.

sweeps · #10 (**permalink**) 07-13-2006, 07:01 PM

Quote:

Originally Posted by pyotr

Unless of course the whole thing escalates so that Israel, Pakistan, and the US end up exchanging several nuclear warheads and puts us all into a nuclear winter. I don't foresee my stocks being worth too much at that point.

Heh, yeah. But it won't make much difference WHERE your money is at that point.

WellManicuredMan · #11 (**permalink**) 07-14-2006, 10:34 PM

Quote:

Originally Posted by Sweepsplayer

Middle East erupting into war
Iran manufacturing nuclear weapons
North Korea firing missiles all over the place
Oil at a record high $77/bbl
Stocks dropping 1-2% per day
Inflation and interest rates on the rise
Recession right around the corner
Almost everyone is pessimistic about the future

Is everyone else thinking what I'm thinking??

Yup, what a great time to buy stocks cheap for the long term...

Isn't the S&P still pretty high right now? I'm not buying at these levels. I think it would be wise to at least wait until the end of the summer. Personally I have my eyes set on October.

VJW · #12 (**permalink**) 07-19-2006, 05:20 AM

Quote:

Originally Posted by WellManicuredMan

Isn't the S&P still pretty high right now?

No, it isn’t. The S&P 500 is down more than 15% from where it was six years ago in 2000.

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WellManicuredMan · #13 (**permalink**) 07-19-2006, 10:24 AM

Quote:

Originally Posted by VJW

No, it isn’t. The S&P 500 is down more than 15% from where it was six years ago in 2000.

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True, but that was a result of over-inflated prices in 2000. The S&P is also up 39% since 2003.

pyotr · #14 (**permalink**) 07-19-2006, 11:56 AM

You still skulking around here V? SHOO!!! SKAT!!!

cschin4 · #15 (**permalink**) 07-19-2006, 12:41 PM

I doubt there was ever a time in history where there wasn't global turmoil. So, carry on with business as usual.

VJW · #16 (**permalink**) 07-24-2006, 12:09 AM

Quote:

Originally Posted by WellManicuredMan

True, but that was a result of over-inflated prices in 2000.

How were “prices” “over-inflated” in 2000 ? We had the greatest prosperity in American history, the lowest inflation, the lowest unemployment, and the fastest and longest inflation-adjusted wage growth in about four decades.

Quote:

The S&P is also up 39% since 2003.

Not in inflation-adjusted dollars. When you’re making comparisons across a number of years, you have to adjust for inflation. The S&P 500 is lower for the sixth straight year.

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jstanawa · #17 (**permalink**) 07-24-2006, 12:15 AM

I don't buy any stocks, I buy mutual funds. Go to a local broker for an financial check up to see what they think would be benefit your portfolio (most brokerage places where I live do them for free to try to get you to transfer your accounts to them). Then purchase your own. That is what I do to save money.

WellManicuredMan · #18 (**permalink**) 07-24-2006, 08:51 AM

Quote:

Originally Posted by VJW

How were “prices” “over-inflated” in 2000 ? We had the greatest prosperity in American history, the lowest inflation, the lowest unemployment, and the fastest and longest inflation-adjusted wage growth in about four decades.
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I hope you didn't recommend that people invest during this period because of your above reasoning. Like you said, it is down 15% (inflation-adjusted dollars?) since 2000 and you'd still be waiting for a gain today had you held this entire time.

Quote:

Originally Posted by VJW

Not in inflation-adjusted dollars. When you’re making comparisons across a number of years, you have to adjust for inflation. The S&P 500 is lower for the sixth straight year.
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Regardless, the fact remains that it is up a lot since 2003 compared to what it has done since 2000 because of a bubble in the late 90's.

VJW · #19 (**permalink**) 07-29-2006, 08:10 AM

Quote:

Originally Posted by WellManicuredMan

I hope you didn't recommend that people invest during this period because of your above reasoning. Like you said, it is down 15% (inflation-adjusted dollars?) since 2000 and you'd still be waiting for a gain today had you held this entire time.

Which “period” ?

If you mean up until 2000, yes I recommended being invested in the market. It was one of our nation's Golden Ages. If you mean, after 2000, I recommended against being in the market. As I previously posted elsewhere, I exited from the market on November 3rd, 2000, the Friday before the election, and sidestepped the 15% and ongoing drop in value.

Quote:

Regardless, the fact remains that it is up a lot since 2003 compared to what it has done since 2000...

Um, I hate to burst your bubble, but it’s not. The S&P 500 would need to be over 1600 just to get back to the value it was at in 2000. It is lower for the sixth straight year. Treasury Bonds provided double the return of the stock market over that same period of time.

Quote:

...because of a bubble in the late 90's.

As I’ve demonstrated in another thread, there was no “bubble” in the 1990s. It’s an often repeated myth.

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