Trading Now

Trading Now

Monday, March 2, 2009

Conventional Wisdom Led Investors to Ruin

And in case this isn't enough to convince you, look at this chart from

*see? Its not just me. On the next rally, get out of the stock market! This will be your escape hatch. Then you wait for the pullback (say 5800), buy back in and sell into the next rally. This is the only way for you to make some of your money back. If you just wait (buy and hold) from when you bought in by dollar-cost-averaging in 2007 and 2008, you will have to gain 100% to break even. Do you think in 10 years you can gain 100%? Keep dreaming! After GE lost 80% of its value during the Great Depression, it took 25 YEARS to come back to same level. If you have learned nothing else, the Conventional Wisdom no longer works. This ain't your fathers marketplace. You would have been better off placing your money in a savings account at 3%. What a concept. go to article...

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