A Market Collapse Is On The Horizon

Now I understand your bitterness. Im guessing you bet the bank on Mr Rogers psuedo- science. It's funny, James's claim to fame is shorting Fannie Mae in 2007.
That's all well and good,but investors like myself did much better, percentage wise, being long on It in 2008.

I bought 6500 shares for between 28 cents and 36 cents. Sold them for between 3.50 and 4.25. I wish I had bought more.
Fannie Mae lost 99 % of their value, but then it increased over 1000%. Timing is everything. I currently have about 1100 shares I bought when it went back below a dollar.
I suspect Don Jimmy understands that but posted this for his ill informed groupies.

Maybe as part of your investing education you should read "Money Masters" by John Train or "Market Wizards" by Jack Schwager. Jim Rogers "claim to fame" as a legendary goes back a few decades.

I read Market Wizards more than twenty five years ago. Right around the same time I was reading Jerry Patterson's blackjack books.
I am of the opinion that neither aged very well.

DonDiego posted it as an accurate chart of FNMA common stock.

Here's another:



DonDiego congratulates billryan on his timing; it has been impeccable.

Buying a company that is backed by the full faith of the US government was a no brainer. My selling it could have been a bit better. I sold on the rumour of it going private. I knew the Republicans wouldn't allow it so I sold and bought back on the rebound. I generally avoid flipping but this and Assisted Living companies are exceptions.

Another sign of the times:

The Teamsters Central States Pension Fund, which covers 400,000 participants, 220,000 of them retired, is proposing significant pension cuts. F'rinstance, a retiree presently receiving $3000-per-month may have his pension cut to less than $1200-per-month.

Some current retirees complain "“This pension should be paid out in full until it’s gone.” If this were done, the fund is so short of money, it wouldl go broke in 10 years, . . . leaving nothing for anyone after that.

Ref: The Kansas City Star

This is the sort of thing that happens when pension funds fail to collect sufficient contributions, . . . as many private, state, and federal funds do, . . . and interest rates fall to near-zero% as a direct result of Federal Central Bank policy.

DonDiego suspects many other pension funds will soon find themselves in similar financial peril.

One might reasonably expect the enrollment in Food Stamps to rise eventually as a result.



Or one might just shrug one's shoulders and suggest there's nothin' to see here, . . . and just move along, . . .

As long as you have the time

Everyone , even retirees have the time . How long do you plan on living ? Until 80 ? 90? Then you have the time . I'm sure that you will want to continue to earn more than 1% the banks will give you . The key is to have some funds in liquid form that you can use to ride out the downturns . Bob

My advisor suggests two years worth of expenses in cash and to have a diversified portfolio in all asset classes which is re-balanced regularly.

If you are working, continue to invest regularly. If your tax rate is 15%, invest in after tax (ROTH) investments. If your tax rate is > 15%, invest in 401K and other tax deferred investments. Be sure to invest AT LEAST to any company match so you don't leave money on the table.

The largest movements of the market (both up and down) will be in 10 days during the year and NOBODY knows when these days will be. So, stop trying to "time the market". Staying invested is the best way to take advantage of price increases and not be burned by the price decreases.

Is there anyone here who doesn't think the DOW will be > 20,000 at some point within the next 3 years? If so, that would be a 6% annual return which I highly doubt anyone will find a better return elsewhere.