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Steven Longenecker comment: Jeff and Mark, you’re both right, of course. A bust does follow every boom. And once you’ve been burned by a market crash, it’s tough to accept that another one isn’t right around the corner. But the good news is that your caution is probably a clear sign that most folks aren’t at the “greed” stage yet. I sold out on a downturn in 2013. Did not get back in at all. Stash is earning not much of anything. I know timing the market is not really possible but September/October is a traditional weak time of year. Will jump back in maybe mid-November. – Andrew H. Steven Longenecker comment: The market is up more than 70% since September 2013 including dividends... or 11% per year. For the market to get back down to its 2013 levels, it would need to plunge almost 40%. That’s not to say the market can go up forever. It won’t . In fact, the next time the market falls, it’s likely to be far worse than the 2008 financial crisis. There are plenty of problems in the world – namely, massive debt loads. But that problem is still down the road. And it looks like a long road for kicking a debt- shaped can. If you’re afraid today and you’re close to retirement age, the market rally that we’re experiencing right now could be your last chance to make life-changing gains. The “Melt Up” is a term coined by financial analyst and American Consequences feature contributor Steve Sjuggerud to describe the
Re: Health Care Emergency: Somebody Call a Politician! I am a retired physician who worked in the “system” for over 30 years. The government sucks at most everything it does and this is certainly true with health care. Perhaps my greatest fear is “Medicare for All” which will rapidly hasten our economy into the toilet. Health care, as it is in Canada, will be rationed by a kindly group of administrators whose job it is to count the beans and decide at what age you no longer need health care. While our present “system” is crazy, a government run system won’t be crazy it will just be horrible for all but the wealthy. Only the rich can afford to be socialists. – Peter B. P.J. O’Rourke comment: Dr. B., you’re my new family physician! Read the above letter, everybody! Doctor’s orders! And thank you, Doc, for an Rx of common sense. Re: Tell Us Why You’ve Missed the Boom... I know that a bust follows every boom. I’m not even that old, but I saw the bust that followed the Housing and Tech Bubbles, and I saw how the financial experts were SHOCKED by it. When markets are fearful, I get greedy. When markets are greedy, I get fearful. – Jeff H. I figure that right now, things are too unpredictable... Having lost in a crash before, I’m cautious. – Mark B.
18 October 2018
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