Comments on: Investing in panicky times: some things to remember http://www.thickenmywallet.com/blog/wp/2008/09/22/investing-in-panicky-times-some-things-to-remember/ Everything to do with thickening your wallet Wed, 01 Feb 2012 15:44:00 +0000 hourly 1 http://wordpress.org/?v=3.3 By: Richard http://www.thickenmywallet.com/blog/wp/2008/09/22/investing-in-panicky-times-some-things-to-remember/comment-page-1/#comment-17020 Richard Mon, 22 Sep 2008 15:01:33 +0000 http://www.thickenmywallet.com/blog/wp/?p=429#comment-17020 It's true that there's a lot of arguments for lower future returns than we've become used to lately (mainly because that kind of growth can't go on forever) but that could all change with one good correction. Buying high reduces your potential for future returns and buying low increases it. If, as some believe, the S&P 500 gets back to 1100 by 2010 that would give it a lot more room for future growth. After all, assuming high growth for the last 20 years followed by lower growth forever makes it sound like there's no volatility or business cycle. I don't know the exactly level of future returns in the market but I'll bet everything I have that it's not a straight line :) Also, I always thought real return bonds had a return above inflation (it just goes up or down as inflation changes). If the market is panicky you might buy them with a 0% real yield but that doesn't mean it's always the case. It’s true that there’s a lot of arguments for lower future returns than we’ve become used to lately (mainly because that kind of growth can’t go on forever) but that could all change with one good correction. Buying high reduces your potential for future returns and buying low increases it. If, as some believe, the S&P 500 gets back to 1100 by 2010 that would give it a lot more room for future growth. After all, assuming high growth for the last 20 years followed by lower growth forever makes it sound like there’s no volatility or business cycle. I don’t know the exactly level of future returns in the market but I’ll bet everything I have that it’s not a straight line :)

Also, I always thought real return bonds had a return above inflation (it just goes up or down as inflation changes). If the market is panicky you might buy them with a 0% real yield but that doesn’t mean it’s always the case.

]]> By: Phantasmix http://www.thickenmywallet.com/blog/wp/2008/09/22/investing-in-panicky-times-some-things-to-remember/comment-page-1/#comment-17019 Phantasmix Mon, 22 Sep 2008 14:12:04 +0000 http://www.thickenmywallet.com/blog/wp/?p=429#comment-17019 The problem with TIPS is that it's tied to the "official" inflation rate and I think it's obvious that inflation has been under-stated for some time now by the U.S. government. (CPI calculations ex. food and gas? Please.) The problem with TIPS is that it’s tied to the “official” inflation rate and I think it’s obvious that inflation has been under-stated for some time now by the U.S. government. (CPI calculations ex. food and gas? Please.)

]]> By: admin http://www.thickenmywallet.com/blog/wp/2008/09/22/investing-in-panicky-times-some-things-to-remember/comment-page-1/#comment-17018 admin Mon, 22 Sep 2008 14:06:32 +0000 http://www.thickenmywallet.com/blog/wp/?p=429#comment-17018 I can't tell you why but the markets have always performed poorly in September. I can’t tell you why but the markets have always performed poorly in September.

]]> By: Mom2KG http://www.thickenmywallet.com/blog/wp/2008/09/22/investing-in-panicky-times-some-things-to-remember/comment-page-1/#comment-17017 Mom2KG Mon, 22 Sep 2008 13:06:04 +0000 http://www.thickenmywallet.com/blog/wp/?p=429#comment-17017 September is a bad month for investing? Why? I just purchased my first ETF on Friday! September is a bad month for investing? Why? I just purchased my first ETF on Friday!

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