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.
When you buy more important than what you buy. Luck is a big factor. One should worry about worse case scenario not dream of best case scenario Buy Camry not Lexus Err on the wrong side and plan to die with money in the bank instead of fretting about how much you can withdraw in retirement.
In conclusion... Low interest rates are not incentivizing banks to lend since 4% "free" profit is just fine Consumers are NOT going to spend and sometimes CAN'T - mortgage interests may be low but who is qualifiying? We are shit out of luck. No really.
What are the banks going to do with all the money the Fed is creating? IMHO banks are going to invest it, maybe a lot will go to stocks. I am not predicting a rally in stocks, but I wouldn't be surprised to see one happen.
Reply to @LarryH: banks buy treasuries hi qual munis which count towards capital - demand for which has been greatly increased due to recent regulations. banks do not buy equities -- your mutual funds buy equities.
Prudent Polly, Balanced Burt, and Contrary Connie - LOL - Arnott shows that simple formulas don't always produce the desired or expected results.
A poll too! Is there a prize for spotting? ... Worry's too strong a word. But, with me it's all about allocation. Not how fast I can grow it, but a "steady as she goes" plan that lets me sleep at night. Beyond the stage of saving. Just hoping not to draw it down too fast or too soon.
It is interesting paper. But the Contrary Connie results come with bigger spread and believe few people can tolerate that. It is riskier and thus it has a wider range of outcomes. Who wants to expose themselves to such high variability of outcomes that late in life when compensating for unfavorable outcomes becomes increasingly difficult.
Furthermore, the ability to take risk increases if you actually achieved a big enough portfolio and more. Having relieved from the worry of meeting the basic needs of retirement, the more portion can be invested in a riskier way for potentially passing to other generations, charity etc. if that money is never needed.
Comments
When you buy more important than what you buy.
Luck is a big factor.
One should worry about worse case scenario not dream of best case scenario
Buy Camry not Lexus
Err on the wrong side and plan to die with money in the bank instead of fretting about how much you can withdraw in retirement.
In conclusion...
Low interest rates are not incentivizing banks to lend since 4% "free" profit is just fine
Consumers are NOT going to spend and sometimes CAN'T - mortgage interests may be low but who is qualifiying?
We are shit out of luck. No really.
I'm quite depressed.
Larry
A poll too! Is there a prize for spotting? ... Worry's too strong a word. But, with me it's all about allocation. Not how fast I can grow it, but a "steady as she goes" plan that lets me sleep at night. Beyond the stage of saving. Just hoping not to draw it down too fast or too soon.
Furthermore, the ability to take risk increases if you actually achieved a big enough portfolio and more. Having relieved from the worry of meeting the basic needs of retirement, the more portion can be invested in a riskier way for potentially passing to other generations, charity etc. if that money is never needed.