And from CNBC:
"By many metrics stocks are priced as low as they have been for 25 years," says Peter J. Tanous, president and director of Lynx Investment Advisory of Washington, D.C. "If you still believe in the future of this country, it is very possible that in five years from now you will be able to look back and say, 'Wow, what a buying opportunity.' "
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By many metrics stocks are priced as low as they have been for 25 years," says Peter J. Tanous, president and director of Lynx Investment Advisory of Washington, D.C.
ReplyDelete........And the stock market experts back in 1932 said pretty much the same thing.
"If you still believe in the future of this country, it is very possible that in five years from now you will be able to look back and say, 'Wow, what a buying opportunity.
......More likely you will say "Wow, what a short selling opportunity"
After the stock market crash of 1929 the market didn't get back to its highs of 1929 until 1954-
A Twenty Five Year Wait. That is a mighty long time to see 'great' profits, and after factoring the effects of inflation, the returns were even less great.
These jokers are comparing the typical cycles in the market and not what could happen if there is a bone crunching, once in 75 years recession.
ReplyDeleteTheir advice, while not necessarily as ridiculous as those who touted the housing market citing the returns made by those early to the market, should be taken with a grain of salt. If there is a fundamental restructuring of the US economy -- which is likely and needed since much of it was based on financial air -- the entire market could be depressed for a while.
I can't find the article now, but I'm pretty sure the Economist recently ran a piece that made the same argument.
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