Down goes the Dow

agip wrote:

...and your endless tirades against 'jewish elites' like DSK, weiner, bloomberg, etc...have exactly what to do with israel?

I dunno. Opposing a serial sexual assaulter, a pervert, and a man who used his office to increase his personal wealth from less than $2 billion to over $30 billion would seem to be the decent position to take. The real question is why anyone would defend these guys.

K5 wrote:

I also don't know where you live, but in the Boston area where I am, and with no mortgage or car loans (already paid off)nor college payments, my wife and me -- and helping out with out two daughters -- living a very modest life style spend about $125,000 per year.

Modest? What are you spending all that money on?

I have a home in the suburbs that's paid off and one on the Cape with a mortgage. No car loans, but we're paying for our third child to attend a private college (we previously put the other two through school). We go out to dinner at least once each week (usually more often) and I have a membership at the local golf course. And we do all that on significantly less than the figure you mentioned.

Greta wrote:

[quote]K5 wrote:

I also don't know where you live, but in the Boston area where I am, and with no mortgage or car loans (already paid off)nor college payments, my wife and me -- and helping out with out two daughters -- living a very modest life style spend about $125,000 per year.

Modest? What are you spending all that money on?

Hard to say. Every day its something. A large water bill. A dentist bill. A new washing machine needed. A news stove needed. A new roof. New tires for the car. Property taxes. Xmas. B-days. The toilet is broken. A new tub is needed. Etc., etc.

Randy Oldman wrote:

If the Dow drops 30% today and recovers by half that in the short-term, then pays out the average return since 1896, I'll still be able to afford to retire at 59.

If it doesn't recover in that timeline I'll have to work a couple more years.

I have enough alternative investments to hedge a crash.

My riskiest investment is in my real estate.

A 30% drop would just put us around long-term historical average valuations.

Why would you assume it will stop at fair value? I'd expect the market to become severely undervalued at some point, and if history is any guide, it will take significant time for it to recover.

Most of us have never invested through a down stock market that became undervalued. So many people here speak like 2000-2002 and 2008-2009 was "it". Their wakeup call is not going to be pretty... especially since many are boomers and will be approaching or in retirement. Ugly.

I have a question for people in this thread.

What if Ralph Nader or Ron Paul became president in 2016. How do you think the Dow would react? And why?

ryan foreman wrote:

I have a question for people in this thread.

What if Ralph Nader or Ron Paul became president in 2016. How do you think the Dow would react? And why?

I would go up or down and then back down or up.

K5 wrote:

Randy Oldman wrote:

Compound return on financial investment since 1926 versus inflation

Dow - 9.6%

S&P 500 - 9.8%

Government bonds - 5.7%

Treasury Bonds - 3.5%

Inflation - 3%

Strikes me as inaccurate.

Can you point me in the direction of your source.

Edward Jones Investments.

Here's some more data for you K5.

Average Annual Returns on Investment

Since 1928

S&P 500 - 11.5%

3-month T.Bill - 3.57%

10-year T. Bond - 5.2%

Since 1964

S&P 500 - 11.29%

3-month T.Bill - 5.11%

10-year T. Bond - 6.97%

Since 2004

S&P 500 - 9.1%

3-month T.Bill - 1.56%

10-year T. Bond - 4.69%

Source: NYU Stern

Really?! The markets would perform just the same? That is interesting to know.

Randy Oldman wrote:

ryan foreman wrote:

I have a question for people in this thread.

What if Ralph Nader or Ron Paul became president in 2016. How do you think the Dow would react? And why?

I would go up or down and then back down or up.

K5 wrote:

First off, there are no safe investments out there that pay 4%.

Try 1%.

I also don't know where you live, but in the Boston area where I am, and with no mortgage or car loans (already paid off)nor college payments, my wife and me -- and helping out with out two daughters -- living a very modest life style spend about $125,000 per year.

1) Why don't you understand the technicalities of responding to another person's post? Do you know that you do that wrong?

2) Properly invested stocks and bonds in mutual funds will bring more than 4% annually over time. you keep an emergency fund or live mostly on SS if the market tanks a lot.

3) My example included not paying for children (USUALLY in retirement you don't do that).

4) My example also mentioned that there are several places to live well on much less than $3 million. No one said you have to live in Boston, brother. I used to live in the SF Bay area and then in the Washington DC are...both very expensive places to live...well, I moved away from them and would never plan to retire there.

You have a lot to learn.

agip wrote:

and in relevant news, world stocks are now just 1.4% below their all-time peak.

Well, since this thread is about the Dow, today's high Dow price so far is about 3.3% below its all-time high.

Even so, this is pretty good, and we're still more than 1,000 points away from when K5 left the market.

Actually, I was hoping for a correction now though...I mean, one is BOUND to happen decently soon, and this looked like as good a time as any, but nonetheless, we didn't have one. Oh well.

Tricker - Trick No. 1. Lookest over there!

Trickee - [looks over there and sees nothing special]

Tricker - Ha! Madest thou look. Thus endeth the trick.

Trickee - Hey! [in tone showing full acceptance of being fooled]

Tricker - Yes...

MonkeyMan wrote:

I believe the next debt ceiling debacle is coming up in mid-October and if the government defaults this time (they came very close in 2011), you may get your wish for a 7,000 Dow.

Check yesterday's news on the debt ceiling my friend.

I don't know why you have to prove the same thing to K5 over and over again. The Dow has always been a safe, long-term investment.

K5 wrote:

Greta wrote:

[quote]K5 wrote:

I also don't know where you live, but in the Boston area where I am, and with no mortgage or car loans (already paid off)nor college payments, my wife and me -- and helping out with out two daughters -- living a very modest life style spend about $125,000 per year.

Modest? What are you spending all that money on?

Hard to say. Every day its something. A large water bill. A dentist bill. A new washing machine needed. A news stove needed. A new roof. New tires for the car. Property taxes. Xmas. B-days. The toilet is broken. A new tub is needed. Etc., etc.

We all have similar expenses. $800 for truck tires and I helped my daughter buy a car to get back and forth from school. I put on a new roof 2 years ago, a new bay window, chimney work, and this year a new furnace. It's part of home ownership. And dental work? I know all about that.

But tahrs all doable on less than $100k/ yr. I'm not sure where your extra money us going.

What will be the Republican proposals be toward the debt-ceiling in the lead up to the next general election?

They have voters so confused between the debt-ceiling and government spending that it's going to be very difficult to disconnect them.

It's going to be a conundrum for any Presidential candidate, particularly a Republican, as freezing the debt ceiling would inevitably lead the US to default on it's loans

The first task for any new President is going to be renegotiating the debt ceiling, which is likely to exceed $20 trillion by 2020 whatever short-term measures are taken (Marketwatch)

Randy Oldman wrote:

I don't know why you have to prove the same thing to K5 over and over again. The Dow has always been a safe, long-term investment.

Wow. That says it all about your grasp of reality

Randy Oldman wrote:

I don't know why you have to prove the same thing to K5 over and over again. The Dow has always been a safe, long-term investment.

+1

Pointing Out the Obvious wrote:

Randy Oldman wrote:

I don't know why you have to prove the same thing to K5 over and over again. The Dow has always been a safe, long-term investment.

+1

You are a fraud and an imposter. POTO has assured us so.

so close...world stocks now down just 0.8% from their all time highs

looks like that was just another headfake, with retail investors selling stocks and rushing for the door at the wrong time. Again.