market meltdown

[Fishboy]

quote:

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It takes a real cause to move me to write. How quickly the immediate past dies. When a market hits a big high, and turns - it heads for a big low. It is math, enhanced by gravity (and sharks). Nothing is more certain. If you want to profit, go with the market. Sell it down. The trend is down. You cannot row upstream when the current is gushing down. Do not be fooled by little rallies. They provide great profits for those moving with the market. Do not try to catch a falling knife. You will get hurt. Take a look at the charts. It may be 4 or 5 years before the trend reverses. This is no time to buy. I really am friendly, optimistic, and mellow. But not about being bullish when a market turns bearish.

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Mling,
I'm so glad you are friendly, optimistic, and mellow, because I have to say it appears you've been hurt by an investment strategy that went south. There's no other conclusion for your apparent lack of faith in the market.

Your observations are likely based on relatively short-term market fluctuations, and I can understand that perspective. For those with a longer investment horizon, though, a well-diversified portfolio is a sure-thing. I started investing when I was just out of college and have put money into my portfolio when I could. It's now thirty years that I've had investments and my modest beginnings have blossomed to a portfolio that will guarantee I can live well when I retire. Along the way I've seen the markets "melt down" several times. Each time my portfolio has faltered just like everyone else, but has always come back.

I'm not bragging, I'm just saying that your opinion is accurate, or can be accurate, for the short-term investor. But the longer your investment horizon the better the guarantee that these bumps in the road are just that.

Mahalo nui loa,
Brian and Mary
Lynnwood, WA\Discovery Harbour