re: stay away from the stock market for the next 6 weeks

(no message)

No idea.

"On December 29th, 1989, the Nikkei 225 hit an all-time high of 38,957.00."

Yesterday, just over 30 years later, it closed at 21,142.96.

"I've lost count of the number of people who have told me that they are just going to sit on their long-term investments indefinitely, because the "market always comes back over time".

Anything is possible.

I'm just saying - you NEED to consider the possibility that stocks may take decades to "come back".

There are probably people in Japan that are still holding from 30 years ago, hoping that the Nikkei 225 "comes back".

When you consider that their money has lost value due to inflation, the carnage becomes even worse."

LINK

I'd very much like to think that the Dow will be testing 35,000-40,000 by the time I retire. I also can't ignore the amount of quantitative easing and financialization of the economy that has occurred over the past 20 years.

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We've been repeatedly told by the hedge fund managers around here who moonlight as infectious disease specialists that every day this week has been a buying opportunity.

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Because it has been? Don’t believe just pure idiots who say buy stock in media driven panic sell offs? Well... let someone else inform you.

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“The World’s Greatest Investor” (the phrase often used when referring to Warren Buffet), is a market timer. Buffet’s company, Berkshire Hathaway, held $47 billion dollars, a full 28% of its market capitalization, in cash at the U.S. stock market peak in the fall of 2007. This was the most cash ever held by Berkshire Hathaway and turned out to have been a great time to have been in cash, as stock prices fell by more than 50% over the ensuing 18 months. Rather than increasing his stock positions at unattractive prices he engaged in market timing by making the decision to hold a large cash position. Conversely, as stocks began to collapse during the financial crisis of 2008, Buffet began to buy. First he picked up a distressed position in both Goldman Sachs and General Electric. In late 2009 he capped off his buying spree with a purchase of the remaining shares in Burlington Northern Santa Fe railroad that he didn’t already own. At a price of $44 billion, this was, by far, the largest purchase Buffet’s company had ever made.

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