get ready for the roller coaster
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Joined: Jul 2002
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From: bolton
Originally Posted by martha,Sep 16 2008, 09:25 AM
I've always heard that recessions last, on average, 6 months. I haven't been too worried, thinking things would bounce back before my elusive, ever-moving-forward retirement date. I hadn't even studied the Great Depression. Unfortunately, I just did a quick read and this comment is scaring the crap out of me:
The Dow did not return to pre-1929 levels until 1954!
Unfortunately, I just don't have that long to wait!
The Dow did not return to pre-1929 levels until 1954!
Unfortunately, I just don't have that long to wait!
by Robert Shiller goes into the psychology of investing.
It's a great read.
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Joined: Feb 2003
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From: The (S)Low Country
Originally Posted by martha,Sep 16 2008, 09:25 AM
. . . Unfortunately, I just did a quick read and this comment is scaring the crap out of me:
The Dow did not return to pre-1929 levels until 1954!
Unfortunately, I just don't have that long to wait!
The Dow did not return to pre-1929 levels until 1954!
Unfortunately, I just don't have that long to wait!
I don't know many people who can wait that long. 
Joined: Oct 2002
Posts: 34,131
Likes: 126
From: Canton, MA
Originally Posted by martha,Sep 16 2008, 08:25 AM
I've always heard that recessions last, on average, 6 months. I haven't been too worried, thinking things would bounce back before my elusive, ever-moving-forward retirement date. I hadn't even studied the Great Depression. Unfortunately, I just did a quick read and this comment is scaring the crap out of me:
The Dow did not return to pre-1929 levels until 1954!
Unfortunately, I just don't have that long to wait!
The Dow did not return to pre-1929 levels until 1954!
Unfortunately, I just don't have that long to wait!
http://stockcharts.com/charts/historical/djia1900.html
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From: SoCal
dlq only 10% down ain't bad! If that's true after yesterday I think you need to tell everyone where you've been investing. Overall, I think we're down about 15% on most investments. Oh well.
Both sides of the government for the past 10 years have made personal home ownership a priority. And while this has caused revised policies that have created over 10 million new home owners (good), about 1 million of them are now defaulting or are late on their payments (bad).
Homes are clearly one of our largest investments--one in which our initial down payment can be "earned" by appreciating in one year, depending on the housing market. People and institutions seem to have forgotten that the reverse is also true, and leveraged investments (like homes, or securities requiring a minimum investment balance in the case of banks) can cause real problems.
Both sides of the government for the past 10 years have made personal home ownership a priority. And while this has caused revised policies that have created over 10 million new home owners (good), about 1 million of them are now defaulting or are late on their payments (bad).
Homes are clearly one of our largest investments--one in which our initial down payment can be "earned" by appreciating in one year, depending on the housing market. People and institutions seem to have forgotten that the reverse is also true, and leveraged investments (like homes, or securities requiring a minimum investment balance in the case of banks) can cause real problems.
Joined: Oct 2002
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From: Canton, MA
Originally Posted by martha,Sep 16 2008, 09:41 AM
^^^ While that's bad, I wish my % was that low. And I wish my original balance was as high as yours.
