cobalt, all that is in hindsight and the author picked his dates to prove his point. did he mention how much the said person was down after 5 years? 10 years? 15 years? btw, this is no short period of time. 20 years? 25 years? why do you suppose he didn't discuss each individual time frame? what about joe scmo who just couldn't take it anymore and sold? or joe schmoo who had to fund a child's education and needed the money?
long term, if the buy price is right, the stock market is the place to be. don't believe the buy, don't think, hold and get rich mantra. it is easy, too easy.
btw, we've had the biggest bull market in history. 2 months wiped out over 40% of the gains of the prior 6 years of the greatest bull market in history. did the author discuss this? nope. didn't fit his agenda.
the reason is that, on avg, you must put more net money in at the tops to support them. you lose more quickly on the way down.
if you buy 1 share at $1 and one share at $10 you've spent $11 and have a value of $20 (2x$10). if the stock goes down to $5 you now have $10 and are down $1 for a net loss. you are down about 9%. even though the stock is 400% higher than your initial purchase.
dollar cost averaging is lessens the risk. anybody that has been dollar cost avging in japan for the last 12 years is hurting badly. i wonder if the author is buying japanese issues like there is now tomorrow? after all, it is GUARANTEED TO GO BACK ABOVE 39,000 FROM THE CURRENT 13,000 LEVEL - AND EASY 200% GAINER. right? right? right? please tell me i'm right? ;-)
i bet he didn't discuss japan's current situation? why? he doesn't know the future and can't MANIPULATE IT to further his agenda. ;-)
there is no easy money. learn to value companies, develop risk reduction techniques (time, company, industry, portfolio diversify), buy low and sell high the best you are able. |
