Stocks... will always go up, up, up!

[KFC911]

Sorta like real estate

Discuss....

[masraum]

Originally Posted by KC911

Sorta like real estate

Discuss....

It's been true (long term) for the past 100+ years.

[McLovin]

Historically, over time, that statement is proven to be true.

As you learned from “that other” thread!

[stevej37]

Tabs...Tabs......

[KFC911]

Originally Posted by McLovin

Historically, over time, that statement is proven to be true.

As you learned from “that other” thread!

You got the reference .

I'm still holding my 1500 Enron shares... time is on my side

[McLovin]

In September 1929, after the big run up of the market in the roaring 20s, leading economists such as Irving Fisher concluded, “Stock prices have reached what looks like a permanently high plateau.”

The Dow was around 380 at that time.

[Sooner or later]

Thread title is like a Bat Signal to Tabs.

[stevej37]

I couldn't be happier than I am with mine.

[sammyg2]

As long as the gubmint subsidizes the stock market through tax deferred programs like IRAs and 401ks, and as long as interest and inflation rates stay below 5%, there will be more money going into the market than out of it.

So yes. Stocks will continue to go up.

But it's only a matter of time until the gubmint goes after that cash cow, and then we'll all be TABS.

[McLovin]

Tabs speaks truth.
If one has little assets, or relatively small assets, it doesn’t make much difference.
If you do have assets, however, you do have to do something with them. Keeping 7 figures in US dollars doesn’t really work over time. Esp. now.
So you *have* to take risks, such as stocks and real estate.
So that’s where a lot of money always has been “stored,” and will continue to be.
(As Sammy points out, it also helps that those are the two assets classes the government always has been most anxious to prop up).

[RWebb]

Stocks went up before then tho

[McLovin]

I do think we are going to have a massive correction though, and relatively soon (within 100 days).

[widebody911]

The various indexes "always" go up because they're heavily curated; non-performers get booted.

[sammyg2]

Originally Posted by RWebb

Stocks went up before then tho

yep, but it kinda like they got in a bigger hurry over the past 40 years or so.

It started when Congress passed the Revenue Act of 1978, which included a provision that was added to the Internal Revenue Code — Section 401(k) — that allowed employees to avoid being taxed on deferred compensation.

In 1980, benefits consultant Ted Benna referred to Section 401(k) while researching ways to design more tax-friendly retirement programs for a client. He came up with the idea to allow employees to save pre-tax money into a retirement plan while receiving an employer match. His client rejected the idea, so Benna’s own company, The Johnson Companies, became the first company to provide a 401(k) plan to its workers.

In 1981, the IRS issued new rules that allowed employees to fund their 401(k) through payroll deductions, which kickstarted the 401(k)’s popularity. Within two years, nearly half of all big companies were offering 401(k)s or were considering it, according to the Employee Benefits Research Institute.

[sammyg2]

Originally Posted by McLovin

I do think we are going to have a massive correction though, and relatively soon (within 100 days).

Agreed, hense the hiding under a rock thing.
Got stop-loss orders in, just in case all heck breaks looose.
About six months ago I said that this coming October was gonna be real ugly, not sure which thread I said that in tho.

[sammyg2]

Found it, back in may:

https://forums.pelicanparts.com/off-topic-discussions/1060870-hey-sammy-should-i-quit-now-3.html#post10872981

Originally Posted by sammyg2

No doubt it's over-bought considering today's fundamentals but the market is priced based on future conditions, or at least it's supposed to be.
How far in the future?
That's the hard part.

Lots O'folks got the idea that all we have to do is flip a switch and the economy will pick right up where it left off and they are investing based on that fallacy. That drives the prices up higher and faster than is appropriate but eventually the hang-over will kick in.
The recovery is not gonna be that easy or fast, it's gonna take years to fully recover from this self-inflicted BS.
I figure October will be really ugly this year and it'll have nothing to do with a bug.

So, do we sit on our hands and shake our heads in disbelief as everyone else makes gobs of money or do we say "I gotta get me som a dat"?

I've been pretty aggressive lately and its paid off but in a month or so maybe I'll back off. Til then I'll try to buy on dips and sell on peaks but stay in most of the way and most of the time.

But as long as there is lots of money on the sidelines (and there is) and as long as the gubmint subsidizes the stock market with IRAs and 401k's, there will be an upward pressure on the markets. That momentum is really strong now and until it peters out (giggity) there's good money to be made.
Plus a lot of folks (like me) are betting some miracle medical breakthrough will show up and the markets will go batsheet crazy high.
I'm better than even from peak on Feb. 19th and if I were smart, I'd stop being so darn greedy. But it's too easy now.
All I need is a little more ........

[stevej37]

[908/930]

Absolutely, just look at Nortel.

Wait, possibly a bad example. At least with land you actually own something, not just paper.

[sammyg2]

The IRA or Individual Retirement Account, just like its cousin the 401(k), was an invention of the 1970s.

First introduced in the Employee Retirement Income Security Act of 1974 (better known as ERISA), the IRA is a portable retirement account which allows contributions from workers outside of the worker's employer. The IRA family also claims employer run IRAs; one example is the Simplified Employee Pension IRA (SEP IRA), created in 1978.

https://dqydj.com/historical-ira-contribution-limit/#:~:text=The%20IRA%20or%20Individual%20Retirement% 20Account%2C%20just%20like,contributions%20from%20 workers%20outside%20of%20the%20worker%E2%80%99s%20 employer.

[RWebb]

Originally Posted by sammyg2

yep, but it kinda like they got in a bigger hurry over the past 40 years or so.

I wonder if we should log scale that axis?