Global turmoil

[VJW]

Re: Global turmoil

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.

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]

Re: Global turmoil

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]

Re: Global turmoil

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.

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]

Re: Global turmoil

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.

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.

...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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