Stock market hysteria

[ironfoot]

On Feb. 8, 2009 I (Ironfoot) wrote:

"I am 54 four years old. I remember these same sentiments in the early 80s. The DOW average is 10 times now what is what then, not counting dividends. I think buying stocks in American companies would probably be smart right now. "

 http://www.gboreloaded.com/forums/index.php/topic,157833.30.html

Dee replied:

"Bloomberg says if you over 30yoa, to NOT get into the stock market. You may not live long enough to see a profit. I agree with Bloomberg, but if ironfoot buys in, I hope he buys in BIG, and maybe D.C. won't have to give them MY TAX DOLLAR. Whadayathink?"
 
Ironfoot again:

The Dow was about $8,000 then.
It closed about $9,000 today.
Not a bad return for less then 6 months.

[The Hermit]

The Dow was at about 14,000 at one time so I guess it depends on how you look at it. There are lots of factors to consider about investing. While it is true the market has had a rally since the low in March, I would suggest to anyone that they live debt free first, save some cash for a cushion, then perhaps diversify between gold, silver and dividend paying stocks. Hope this helps.
  The Hermit

[mannyrock]

   Back in the early 1980s, I bought some gold.  It was about $450 an ounce.  Now, 25 years later, it is barely worth double that amount.  Pretty poor investment.  About a 2.5% appreciation a year.

   All of the stocks I bought in the 1980s, even after the recent downfall, have extremely outpeformed that gold.  Exxon, Phillip Morris, Coca-Cola, IBM, Wal-Mart, McDonalds.

   Even the value of used antique firearms, such as original Colt 51 Navies, have far outstripped the appreciation of gold.
 
   In the event of some great societal collapse, people are not going to be running around clammering for gold.  You can't eat it, it is too soft for useful metal, and it is only good for jewelry. 

   Gold only has value when there is a civilization and an infrastructure that is sound enough that it can support the luxery and triteness of wearing jewelry. 

   Just my opinions. :-)

Mannyrock
 

[hillbill]

+ 1 on the debt free thing. only prob is paying the taxes on what yu own.this adminstration would not surprise this hillbilly by instituteing a net worth tax. those of us who have built everything they own from scratch will be hurt by this.it will come right after they tax your 401k or investments cuz they feel anybody worth over a certain amount is EVIL RICH.

[ihookem]

I think the bible says in the last days people will throw their gold and silver out in the streets. I guess I could look it up.

[The Hermit]

I think a lot depends on your age. My investments in gold took place in the late 50's early 60's. I can remember my father telling me I was crazy for spending $11 bucks for a $10 dollar face roll of uncirculated siver half dollar coins. I put up uncirculated rolls of silver dimes from the 40's and 50's before the big melt.
Mexican 50 peso's were selling for $69 bucks for an ounce and 2 tenths of pure gold.
My only suggestion is to diversify and perhaps put some gold and silver aside for the next generation.
My grandchildren will inherit them. I wonder what it will be worth then. I'm glad I didn't save those silver certificates that the government stopped honoring. They are worthless now. For less than 3 silver dimes you could buy a can of campells soup. I think for 3 silver dimes today you can buy 2 cans.
I know the market is up since march, my own portfolio is up 14% this year. I guess you gotta do what your comfortable with.
In the last depression and in hyper inflation in Germany, silver dimes were readilly accepted in trade for items in lieu of paper money. Just a thought. My comments are meant to get folks thinking. Please don't talk offense to them. Do your own research then decide whats best for you.
The bible also tells me to help my neighbor which I can do because of carefull investments over 60 years.
I certainly don't worship money. God bless.

  The Hermit

[WD45]

Thoughts on gold.
There are very few things that has ALWAYS had monitary value and gold is one of them. When paper money and stocks are worthless gold will still have value and not just as jewlrey. While things could be turned upside down for awhile there will always be some type of economy. It just won't be cars, VCR's, washers and dryers and such. It may be the necessary items to survive. 200 years ago and less everything was bought with gold and silver and very little of it was jewlry. If you are buying gold I believe you should be recieving the real thing and not paper certificates saying you own some. Most of the people that I know that are buying some gold are not buying it as an investment hoping it will out perform the stock market. They are buying it it hang on to because it may be the only thing accepted for payment in the future. 

[SDS-GEN]

I think what WD45 is trying to say is precious metals are not really a good long term investment.  Gold and silver should be looked at as a storage of wealth.  Precious metals are immune to inflation and government tampering (outside of an outright siezure).  Consider this, a $20 dollar US gold coin was worth $20 in 1899, it would have bought a really nice rifle, that same $20 dollar gold coin today (not including any numismatic value) would still buy a dang nice rifle but is worth $950US.  If you had a bank note from 1899 (a Federal Reserve type note) for $20 it would only be worth $20 today.

[WD45]

Yup.. pretty much sums it up.. ever have one of those times when no matter what you say just doesn't convey your actual point