Comments on: When Will it End??

By: Roman @ FinancialJesus.com

Roman @ FinancialJesus.com — Thu, 02 Oct 2008 02:36:45 +0000

I’m interested to know Stockpicker – how do you know that the market will recover in exactly 2016?

As a lot of you noted in the comments – there have been times when market is flat for a prolonged period of time.
To get the most out of these times I would definitely look into buying dividend paying stocks.
If the stock price stays the same for 20 years you will still get the dividends and if it eventually rises you will get an even nicer profit!

By: Stockpicker

Stockpicker — Fri, 26 Sep 2008 02:24:42 +0000

Get out of the STock Market NOW! We are heading into the first depression since 1929. Stocks are going LOWER and there will be no recovery until 2016. Just like those that said you can’t lose money in real estate were wrong, so are those that say now is a good time to buy cheap stocks. Wrong. STocks can still go lower. MUCH lower.

By: Richard

Richard — Sat, 20 Sep 2008 17:56:35 +0000

Just 4.7%? It would be hard to get that out of a savings account for most of the last 10 years. That’s actually a pretty good return considering the quality of the starting point. It also completely ignores the reality of investing.

Matt: as you point out, if the S&P 500 is at the same level in 20 years it certainly wouldn’t be the first time it happened. But having no return over that period is highly unlikely. That would have to mean prices don’t change at all over that time period (if they go down you’re buying at a discount and you profit when they return to normal – if they go up you just made a profit on your earlier purchases), there’s no dividends at all for the next 20 years, and we’re talking about someone who owns one asset class.

When will this end? Only when people acknowledge the real value of the businesses in the market – then we can get back to growth and profits. There’s some intelligent people who believe the fair value of the S&P 500 is around 1100 by 2010. If that’s the case, the sooner we get to that level the better. We may be only a couple of weeks away.

Warren Buffet himself pointed out that if the average expectations of stock market growth happened consistently over the next century the indexes would get to levels that are hard to believe in that time. But if that’s based on the S&P starting out 20-40% above its real value, then a quick correction is all we need to make future growth expectations much better. As so many people forget, when you’re planning to buy stocks for a long time you want it to be at a discount not at a premium!

By: Weekly Dividend Investing Roundup - September 20, 2008 » The Dividend Guy Blog

Sat, 20 Sep 2008 11:01:46 +0000

[...] When will it end [...]

By: Matt @ Steadfast Finances

Matt @ Steadfast Finances — Wed, 17 Sep 2008 22:31:40 +0000

Nicely said. My only concern is the S&P will flatline, like it
did from 1960 to 1980 and all those people who chose index funds
will be sitting on zero returns after investing religiously for 20
years.