Quote:
Originally Posted by Boomer
Peter Lynch said, “In the stock market, the most important organ is the stomach. It’s not the brain.”
If you have been in the market for a few decades, you know who Peter Lynch is. And you have seen a few things.
Those who have been in the market for only one decade might think it’s always like this.
Any thoughts from TOTVers on what the 2022 market could bring — or take?
Boomer
PS: Of course nobody can predict the market, so nobody can hold you to your opinion — not even yourself. But it can be interesting to think about.
|
I do hold stocks. Truth because of government actions it is a house of cards. Gone are pensions replaced by 401Ks, 403b kind of stuff. Heck if you have a pension, you may be shocked to realize the money to pay you is invested in the stock market. It is sort of like the 1920;s everyone is in the stock market whether it know it or not. The 1920s prosperity, ended with the incomprehensible misery of the 1930's depression. We must believe it will not happen. People of the 1920's knew the stock market only goes up.
History shows they were wrong. Lose the farm? The farm was your family roots. It was all you knew, it was how you fed your family.
Safe place to put your money. In the past you would build a treasury bond ladder. Truly simple bonds maturing at different times. You would use treasuries-zero risk, they were backed by gold or silver and they would pay roughly 2% more than the rate of inflation.
Today, the cpi, consume price index, is 7%.a ten year treasury is paying 1.7%. You have to pay that 7% with after tax money so you need 9% or more to pay that 7% inflation. Social Security gave you/us a roughly 5% raise. It is historically large. Only problem is it is not enough to pay the inflated costs . The stock market IS NOT A SAFE PLACE but due to inflation you have no choice but to swim with the sharks and hope they do not realize they are looking to feed on you.