I think in order to draw a conclusion, alternate time periods should be used. Although 1928-2014 is a start, that leaves the door open for a lot of omitted variables to influence the data. Better to sort it by decade to get an idea of how the returns have changed over time. This also allows you to try and gain an understanding about why the change occurred. Since your friend's son is only nearly grown (implying still well away from retirement), I think it is in his best interest to shy away from mutual funds and index tracking stocks for now, and chase the higher yielding and more volatile stock market. And then he can gradually transition into more stable investments as he inches closer to retirement.
When the number of pessimistic "analysts" are at a high, that is when there is a bull market. When all of the analysts are bullish, that's when you'll see a bear market. Besides, you only have a loss if you sell. I agree with you, if you're confident in your holdings, weather the storm to greener pastures.
I think restaurants are traditional businesses, but the companies in the Globes article are start-ups because what they are offering is new. In my mind, start-ups are new ventures providing an ingenious solution to a previously unoccupied space in the market. Opening up a shoe store is not a start-up, there are millions of shoe stores. Make that shoe store different and new compared to all of the other shoe stores in the world and then you can use start-up. But for how many years can a start-up go on and still call itself a start-up? It's all subjective. Interesting topic of debate. I would love to hear other people's thoughts.
Definitely far from a stock picking guru, so I always make sure to use stop-losses to avoid large losses. Professionals don't even hit at a 100% clip, and I am far from a professional. I recognize that some of my picks will be mistakes and I am willing to accept my losses before they compound and become even bigger losses. I don't have the time to check on my portfolio daily, so I find stop-losses to be a good intermediary for me. Do you think that that is wise or do you not agree with the use of stop losses?
I think the biggest mistake people make when it comes to retirement is not starting soon enough. People fail to realize what a large impact a few years can make with compounding interest. It would behoove people to start planning and saving for retirement as soon as they begin their careers. Too many young 20 year olds take retirement for granted and put it off because it is not on the horizon.
Interesting analysis. I have actually been accumulating GE; waiting for them to release earnings on Friday before taking a sizable position however. I know they are approaching the 52 week low, but I feel it will bounce and it is certainly reasonable that they approach $30 in the next 52 weeks.
Disagree with the policy. I should have the right to access my money whenever I need and/or want it. Agree with you that a 48 hour period will not abolish "too big to fail."
Enjoyed the article Keith. The environmental industry, I believe, is going to be gaining more and more in popularity. Green initiatives seem to be popping up more and more all over the place. Pollution control, of course, plays a very large role in cleaning up the environment. While some of the yields for the stocks you mentioned might be low, I feel as if they all offer tremendous growth potential. Thanks for the tips I am going to begin doing my DD and will potentially allocate part of my portfolio accordingly.
Hey Matt, enjoyed the article and your ideas. I absolutely love General Electric right now. I agree that it has been oversold, and is due for a correction soon. I've been ramping up my holdings over the last week or so. Not infatuated with McDonald's. I think it is a stable investment, however, I see greater potential upside for Ford and GE. Depends on the type of investor you are, of course. I am far from risk averse.
There has definitely been manipulation by the powers at be since the inception of money, driven predominantly by greed. That definitely will not change, which is what drives my interest in many of the decentralized currencies. If those who control it will relinquish their control, then give no one control over it. That eliminates any temptation for manipulation that anyone may have, and additionally, breeds fairness for all.
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Historical Returns Of Traditional Asset Classes
I think in order to draw a conclusion, alternate time periods should be used. Although 1928-2014 is a start, that leaves the door open for a lot of omitted variables to influence the data. Better to sort it by decade to get an idea of how the returns have changed over time. This also allows you to try and gain an understanding about why the change occurred. Since your friend's son is only nearly grown (implying still well away from retirement), I think it is in his best interest to shy away from mutual funds and index tracking stocks for now, and chase the higher yielding and more volatile stock market. And then he can gradually transition into more stable investments as he inches closer to retirement.
Mental Toughness Pays Big Dividends
When the number of pessimistic "analysts" are at a high, that is when there is a bull market. When all of the analysts are bullish, that's when you'll see a bear market. Besides, you only have a loss if you sell. I agree with you, if you're confident in your holdings, weather the storm to greener pastures.
What Exactly Is A “Startup”?
I think restaurants are traditional businesses, but the companies in the Globes article are start-ups because what they are offering is new. In my mind, start-ups are new ventures providing an ingenious solution to a previously unoccupied space in the market. Opening up a shoe store is not a start-up, there are millions of shoe stores. Make that shoe store different and new compared to all of the other shoe stores in the world and then you can use start-up. But for how many years can a start-up go on and still call itself a start-up? It's all subjective. Interesting topic of debate. I would love to hear other people's thoughts.
Six Reasons Why Investors Don’t Make Money
Definitely far from a stock picking guru, so I always make sure to use stop-losses to avoid large losses. Professionals don't even hit at a 100% clip, and I am far from a professional. I recognize that some of my picks will be mistakes and I am willing to accept my losses before they compound and become even bigger losses. I don't have the time to check on my portfolio daily, so I find stop-losses to be a good intermediary for me. Do you think that that is wise or do you not agree with the use of stop losses?
Don’t Make These 4 Mistakes When Planning Your Retirement
I think the biggest mistake people make when it comes to retirement is not starting soon enough. People fail to realize what a large impact a few years can make with compounding interest. It would behoove people to start planning and saving for retirement as soon as they begin their careers. Too many young 20 year olds take retirement for granted and put it off because it is not on the horizon.
3 Very Popular Stocks - AAPL, GOOG, GE
Interesting analysis. I have actually been accumulating GE; waiting for them to release earnings on Friday before taking a sizable position however. I know they are approaching the 52 week low, but I feel it will bounce and it is certainly reasonable that they approach $30 in the next 52 weeks.
The Doors Are Being Shut
Disagree with the policy. I should have the right to access my money whenever I need and/or want it. Agree with you that a 48 hour period will not abolish "too big to fail."
Filtering Great Dividends
Enjoyed the article Keith. The environmental industry, I believe, is going to be gaining more and more in popularity. Green initiatives seem to be popping up more and more all over the place. Pollution control, of course, plays a very large role in cleaning up the environment. While some of the yields for the stocks you mentioned might be low, I feel as if they all offer tremendous growth potential. Thanks for the tips I am going to begin doing my DD and will potentially allocate part of my portfolio accordingly.
Three Widely Held Stocks Yielding At Least 3.5% And Trading At Less Than 17 Times Earnings
Hey Matt, enjoyed the article and your ideas. I absolutely love General Electric right now. I agree that it has been oversold, and is due for a correction soon. I've been ramping up my holdings over the last week or so. Not infatuated with McDonald's. I think it is a stable investment, however, I see greater potential upside for Ford and GE. Depends on the type of investor you are, of course. I am far from risk averse.
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There has definitely been manipulation by the powers at be since the inception of money, driven predominantly by greed. That definitely will not change, which is what drives my interest in many of the decentralized currencies. If those who control it will relinquish their control, then give no one control over it. That eliminates any temptation for manipulation that anyone may have, and additionally, breeds fairness for all.