Investing 102

[GregWeld]

Originally Posted by 68Cuda

Greg. The last 5 years have been nice... but I have to admit, since about the beginning of the year I have been feeling a bit nervous, kind of bearish so to speak. I am having trouble comprehending the market... last time I had this feeling was late 1999. I'll have to admit, this does not feel bad in quite the same way, just seems a bit high.

Is this just a natural reaction to the market hitting new highs?

What say you?

Not being mean here -- please understand the response.


Go to any company that has a chart longer than say 20 years.... put the chart in ALL mode. If the chart goes back to about 1950 --- how many "NEW HIGHS" were put in as we climbed from a DOW that was about 300 back then.

The DOW was 130.57 on January 1st 1941....

The reason that I have urged people to buy DIVIDEND paying stocks is because we can not rely on day to day price increases to fund our retirement savings or our retirement income. That takes cash flow. If the stocks you own are paying dividends and they are being re-invested - then if the market takes a dip - you will be buying MORE shares - which is a good thing! The whole point of this long winded thread is to get people to STOP trying to second guess the "market" and just buy the best of the best - that pay dividends - and HOLD ON TO THEM for the long term. Be a Warren Buffett.... He buys - he never sells... he's one of the richest men on the planet.

If you sell every time you "think" you know what's going to happen -- you're never going to get anywhere with your investments. The market will - mark my words WILL - go down.... it will also go back up - or maybe just tread water for a long period of time (as in YEARS - not days). You will never know in advance when any of that is going to happen.