Quote:
Originally Posted by gstelmack
Why, because the stock market is down? If you're thinking long-term, this is a decent time to buy (as long as you avoid any companies going bankrupt), and at the least you shouldn't panic and just maintain your holdings and ride it out, as the stock market ALWAYS bounces back even if it takes a couple of years.
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O'Rly?
First off, after the crash in 1929 it took 24 YEARS for the Dow to come back to where it was the day before. So unless you meant a couple decades when you said a couple years, then it doesn't ALWAYS bounce back the way you said.
Second off, you're also stating that past performance is an indicator of future performance, which is also not true. You suggest looking long term; I suggest looking longer term. Perhaps we have just had a nice century long bull run, and now we are at the beginning of a nice century long bear.
Last off, you say that now is a good time to buy. Why? Who's to say the Dow won't fall another 5000 points? Who's to say that your good buy today won't take 15 years to come back to break even? Who's to say it ever will?
Just some food for thought.