Why does Fox Business News have guys saying "dont buy US Stocks"...

Its been a proven a buy and hold approach of blue chips like coke,exxon,philip morris etc has not only beaten the market but beaten it handily with dividends reinvested, yes the short term may be ugly but in the long run if you try to time the market you will get killed. It's like someone the other day posted its about "time in the market, not timing the market" so unless your window is 3-5 years yes the market will be bumpy, but I promise itll beat your .001% savings rate......in 20 years you'll look back and laugh if you buy coke stock and let the dividends reinvest themselves

Read this one of my favorite pieces to show short term traders and investors

my favorite line from it "It is the reason that over the past 20 years, despite record-shattering trade deficits, trillion-dollar budgetary deficits, bitter partisan politics, a dot-com bubble, an Asian currency crisis, two wars, a real estate bubble, a near cataclysmic collapse of the financial sector, and high unemployment, a shareholder of Procter & Gamble could have turned a $100,000 investment into more than $1,200,000."

LINK

Back at you dumbass!

quote:

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Up 14% since November so caution may be prudent.

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Yeah, sound reasoning IMO.

Analyst are there to give an opinion, that's it.

I mean goal as an investor is to build a dividend growth stream for 30 years from now. I could care less if I grab chevron at $116 today or $105 "if the market has a correction" that's for traders who are trading $100k here and there. My goal is to buy companies that have raised dividends consistently year over year and eventually have an income stream that beats inflation and Exxon and Chevron do that, so I own both.

If there's a 20% drop Ill buy alot more, but Im not gonna sit on the sidelines and wait for it, Ill dollar cost average down for sure, but 20-30 years from now there will have been many more crashes and I promise you buying chevron and reinvesting the dividends today whether at $116 or $85 in a market crash in the coming months will make no difference, you will be wealthy either way.....of course wealthier if you buy more at a lower price, but nonetheless WEALTHY so relax, buy every month and average down, don't buy the fear, stay out the market and enjoy the diminishing returns on your dollar in your .01% savings account? That's worse youre losing 4+% a year and getting no dividends

As to what I said about companies doing more with less

JP Morgan Chase is laying off 4000 tellers I read yet adding 100 new bank branches....more with less....sucks for the employees but the companies are healthier than ever and sitting on more cash than ever, the ones that have debt have refinanced the debt at crazy low rates like Altria and Philip Morris so theyre positioned well for the future

Well I seem to be sleeping well at night and could care less about corrections while everyone else is panicking....so is my concept really that horrible? It's built the biggest amount of wealth for people over the years, it's a shame more people don't follow buy and hold principles with dollar cost averaging bc it reduces stress by ALOT

plus the only people panicking are those who

1) buy stock today and dont have enough to average down the cost in a big market correction
2)can't see that there has never been a 20 year period where you lost money if you reinvested dividends, its not even possible....these are the same people who feel amazon is a steal at 3600x earnings and pays no dividends....
3)have a window of less than 10 years to retirement

a 4% dividend does not beat inflation, but a 4% dividend that is raised like say Mcdonalds at over 20% a year on average over the last 10 years does.....look into the rule of 72 and investing in dividend titans....they don't pay 3% forever on your inital yield, that yield is boosted year over year....significantly in line with inflation and for all intensive purposes well above it

but again does your .01% savings account interest beat inflation? So what options do most people who aren't hedge fund managers with inside info have? Look in 2008 everyone said the dollar was done,we were all gonna be broke and gold was gonna be $5000....were still here there will always be problems but sitting on the sidelines isn't the answer. "time in the market is how you win,not timing"

Plenty of people use buy and hold with DCA. Anyone with a 401k uses this strategy, just not with individual securities. I never said your concept is horrible. I was simply implying that if someone wanted to trade the market, things may be a little overbought. That's all.

Fidelity chief investment officer quoted last 3 weeks saying:


"About a dozen years ago, stocks were trading at an average of about 26 times their expected earnings. Now, they're trading at about half that level, or 13 times expected earnings, so stocks are relatively inexpensive. Earnings have roughly doubled over the last decade, but the market has basically been flat."