I advise all of my clients against investing in the stock market - especially if they are nearing retirement. I had one guy that went against my advice and bought a "sure bet" - CISCO. He put in $200,000 at $87 a share. Now they are trading just under $20 a share. Needless to say, he listens to me now! Now that it is too late to help him on that loss!
The richest man in Jefferson County told me he has never, ever put one red cent in the stock market and he is worth many millions today.
Give or take, the stock market as a whole is about where it was 5 years ago. The investment folks are now making money. Trust me. Insurance rates are expected to go down this year. Why? Investment income is back up and the companies can afford to loose a little money on operations while attempting to gain market share because the investment income that is back in the 16-18% range is making enough to make up for a loss.
Now, I'm the worst investor in stocks I know. Everything I have is down. But I believe that in general, some that have been over inflated have corrected theirselves (Unfortunately, that's what I own) and others have grown.
Buy when it's low, sell high when possible. There is money to be made, you just have to know what to look for. It's a lot like the cattle market, at any given point there is money to be made by those that watch and wait. I'm still KICKING myself I didn't buy gold a few years ago when it was $250.00/ounce--it's near $450/ounce now!
I wouldn't buy a lot in stocks now, maybe if you were putting a small amount a month in a retirement plan. I'll say one word I've been saying for a few months on here and getting chasitsed the whole time.....
Is coming back. It may well be the government's way of avoiding (or trying to avoid) a total collapse of the social security system in a few years. They may fire up the printing presses.
I've noticed the price of most commoditites are up, which gets passed on to the consumer. I've noticed some code words for inflation being said in the news. I've noticed my food bill seems to be going up. I have really noticed an increasing number of trucks with scrap metal on them the last few months. I have heard chatter on other boards :speechles that some machinists are having a hard time getting some metals because China is getting them---I think China is a bigger threat to our solvency than many will admit or realize. They have the potential to hurt us in a lot of ways as they develop quickly.
We've been in a period of unprecedented growth--even after 9/11. At some time we have to pay the fiddler.
I am fairly young but I have found a good rate of return by buying stocks from local bank upstarts. These smaller community banks are very succesful in my area and most of them are eventually bought out which always adds to the price per share. You can expect a split or two as well in the first years. I put most of my extra money (and alot of the banks $ ) in real estate.
Actually, China has (4) Steel mills under construction as we speak. It's our own mills that are sticking it to us! Thank God for foreign steel! Oversea suppliers have have caused a little stability to the steel market. If the American steel companies had their way...prices would continue to bust throught the roof!
Look at U.S. Steel and NuCore's earnings and compare them to the past couple of years...You'll see what I'm saying
Historically in Presidential election years stocks soar , yet in 2000 and 04 they didn't , Hummm ??? wonder why ??
Historically during wartime stocks soar , yet they're not , Hummm??? wonder why ??
I'm not saying its Bushs' fault , But people , not you and I but the people that are the movers and shakers don't trust this administration with our economy and their fears are proven correct almost weekly .
One of my wifes customers is a multi billionare dollar stock broker out of NYC and a close personal friend of George H.W. Bush , he told me that he did not put one red penny into the re-election of the younger Bush for that very reason , He said there will not be significant market change until the administration changes , This came from one of the RNC's biggest contributers
I think it won't make much difference who is in office if--no, when--another major attack happens. I am still prety surprised we have recovered as well as we have. People have once again stuck their heads in the sand thinking it won't happen again, we're not REALLY at war, etc.
You know I don't like to beat anybody down but the american workers and unions are what's hurting us. With such high prices. I know the worker doesn't set the prices but with the labor rates so high we then have to turn to other countries for better prices. And alot of times better quality products. I don't want to sound anti american or anything but most people just want to make 8 hrs and go home they don't care about quality anymore. That's what's hurting us. This is just how I see it.
Absolutely the attacks of 9/11 had a huge impact on the market , but thats been four years ago now and the decision to go into and stay in Iraq was purely elective now that we know the original reasons were incorrect , People just don't trust the decisions made by this administration and one of the biggest is moving jobs overseas and rewarding corporations for doing it , allowing corporations to rape our enviroment is another .
Now organized labor is a great thing it disallows corporations from taking advantage of the working man while allowing for a decent wage , we actually need more unions in this country not less .