Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
Elliot Wave has not exactly had the best record lately, but the idea that Greece's problems will not be solved and will spread if they fail is not without merit. The only issue with that is that it is clear at this point that any such situation will be met with more money printing. At some point kicking the can down the road no longer works, and the money will have been spent. Greece is bankrupt; giving them more money is trying to put air in a tire with a hole in it without patching the hole first. It's a financial "Groundhog Day", only not in the least bit funny.
Is it possible that the Eurozone could blow apart as a result of the failure to solve the problems of the PIGS? Sure. Do I think anyone can make a valid prediction about this, and the resulting effects on the markets? No.
The interesting story here is the stress test that economic union without political union is getting. Here in the dollarzone we can't say things like "Oh those Michiganers made a bad bet on the automobile industry -- why should we bail them out?" Instead the Michigan auto industry is OUR auto industry, so it looks like OUR problem, no matter what state you live in. Not sure the Germans and the French are so accustomed to identifying with the problems of the Greeks.
Words like "plummet" make for good attention grabbers. My suspicion, based on a relatively short 30 or so years investing and watching financial markets, is that these doom-sayers generally make alot more money than the folks who follow their advice. (Think books, public appearances, newsletters).
Now, gonna hijack the thread and hope the MFO firing squad dont find me. But have to say I think alot of the problem with all of us, myself included, is that we are so accustomed to instant gratification it makes it hard to take a long term perspective on investing. Imagine if you clicked the remote and the channel didnt change right away.
But investing is different. Ya can invest in Europe and see a 10-20% hit the first year; but than earn 30% a couple years down the road. And, over 10-15 years maybe make out pretty decent. But, betcha 75% would sell a losing fund and eat a loss rather than wait it out. Sunday's sermon. EOM
I completely agree. Words like "plumet" are used to invoke fear on audience and sell a product.
There is too much near term focus (bet here, bet there) and too little long term what could happen and how to position for long term. It may still fail to produce acceptable return odds are in favor of positive returns over a decade long period in world-wide equities. Mix it with enough bonds to adjust that for risk tolerance and near term goals and try to minimize expenses and you are set to go. If you want to make it a bit more interesting add a bit of gold and commodities to the mix.
CNNfn used the words plummet and plunge numerous times last week. 1%-2% does not mean plummet or plunge to me, so it's rather obvious the words were chosen exactly to scare. The quality of financial journalism is really pretty poor right now, with very few places that simply report the news, rather than hype it to sell advertising. My advice is to turn off the darned television, or at least turn off Fox Business, CNNfn, and even Bloomberg, the last of which has become almost as bad as the first two.
An alternate way to read WSJ Online free is to visit a Starbucks. When you logon, there is a welcome screen and you can click news and WSJ online is available free there (as well as a bunch of other content from various providers).
Hi Sven- don't forget that at any WiFi spot you are sharing the bandwidth with everyone else in the area. The smaller you slice the bandwidth pie, the slower it is for everyone.
i sometimes go to mcdonalds or borders or burgerking, all these have wonderful wifi, your best bet could be at local bk or chick-filet [not many wifi customers and reasonable seats], do order the veggie diet though :0)
Comments
The interesting story here is the stress test that economic union without political union is getting. Here in the dollarzone we can't say things like "Oh those Michiganers made a bad bet on the automobile industry -- why should we bail them out?" Instead the Michigan auto industry is OUR auto industry, so it looks like OUR problem, no matter what state you live in. Not sure the Germans and the French are so accustomed to identifying with the problems of the Greeks.
Now, gonna hijack the thread and hope the MFO firing squad dont find me. But have to say I think alot of the problem with all of us, myself included, is that we are so accustomed to instant gratification it makes it hard to take a long term perspective on investing. Imagine if you clicked the remote and the channel didnt change right away.
But investing is different. Ya can invest in Europe and see a 10-20% hit the first year; but than earn 30% a couple years down the road. And, over 10-15 years maybe make out pretty decent. But, betcha 75% would sell a losing fund and eat a loss rather than wait it out. Sunday's sermon. EOM
There is too much near term focus (bet here, bet there) and too little long term what could happen and how to position for long term. It may still fail to produce acceptable return odds are in favor of positive returns over a decade long period in world-wide equities. Mix it with enough bonds to adjust that for risk tolerance and near term goals and try to minimize expenses and you are set to go. If you want to make it a bit more interesting add a bit of gold and commodities to the mix.
i would also consider adding a little bank stocks/HY etfs also
http://www.investorplace.com/45635/business-development-companies-bdcs-to-buy-fsc-tcap-bdcl/
Of course, Starbucks prefer you to buy something.