Quote:
Originally Posted by WSSix
I understand what you're saying Greg and I agree. I intend to buy more stocks soon in a brokerage account that's outside of normal retirement accounts. Right now, I'm just waiting for the outcome of the election and to see what Congress intends to do about the fiscal cliff or whatever made up term they are calling it today. I figure I might "lose" 3-4 months of investing time but I'd rather be patient and see some resolution to these concerns. Besides, I'm not really "losing" anything. My future stock purchase money is sitting in a savings account making 1%. I've never seen a negative interest rate on a savings account. So I can't lose. I just won't earn a lot.
I'm glad you're at ease and like what you're seeing in the economy for the most part. You understand this more than me and are more connected and informed as well. So that helps me feel better because frankly, I'm not so confident in what's going on right now. I'm confident it will get better eventually, but how long until eventually becomes now though?
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Excellent!
Markets don't like "uncertainty" -- they will SELL OFF when there is uncertainty - because people don't like standing (possibly) in front of a train.
Nobody knows if there is a train - but they don't want to stand on the tracks just in case.
For the average investor - it's futile to try to "time" events... in fact - it's IMPOSSIBLE. Thus the "just stay the course".
BUT if people have suddenly decided they should invest some "quick money" recently... then my advice would be to stand down.... let the political and economic uncertainty become clearer... then pounce if it turns out to be a good entry point.
The market is always a "percentage game" --- 10% is a big move...
10% on a grand isn't much money... we spend that going out to eat... but 10% on the kind of cash that I'm playing with - that buys a house! So I'm "on it" all the time.
