Posted on 08/24/2015 6:36:42 AM PDT by C19fan
The Chinese economy has slowed down from its huge, almost continuous high growth. When that happens, it buys fewer commodities hurting countries like Australia. In an effort to stimulate growth and make its products more attractive, China devalued its currency. This will make it easier for China to sell its products and increase foreign investment. The downside is that their imports will cost more.
The US dollar will gain strength as people put their money in the safest place they can. This however hurts American exports, which become more expensive.
The bottom line is that the US is no longer the engine of the global economy. China is.
Most likely. Here’s their dividend history since 1911.
I was just about to do that, but then someone told me they're not making any more land and gold is the only safe store of value.
What's an "investor" to do?
The DOW’s back to where it was in January, 2014. Down 2,500 points from the high it’s been hovering around for several months.
It had been going up 1000-2000 points a year since 2009.
What goes up must come down.
What about folks who bought gold at $1,890/oz in 2011? Today it's at $1,162. That ain't too "safe."
Right now the Dow is up 600 points off the low.
“Go back 20 to 25 years. Inflate the DOW at 5or 6% per year straight line. The DOW is not too high..... unless you believe there is a cap that it can never go over?”
I believe that if we were getting returns based on real results that would be true. If we are getting market results based on fed intervention and actually entering a deflationary environment it will rip your face off.
Commodity prices like copper are not suggesting 5-6% real growth, or anything like it.
Correction...up 700 points.
Retired four weeks ago. Over the previous six months I moved most of my retirement savings to very stable items. Still have about 30 percent in very stable stocks.
I am done working for now.
A commodity prices are driven by supply and demand, costs to produce, technology advancements etc etc. I’m just saying, if someone told you the stock market would average 5 to 6% growth over time, most people would accept that as a okay, not-particularly-scary, number.
So, you’re saying stock market prices are a function of time?
CA....
The markets are a function of time. Inflation is a function of time. (unless you believe our future is going to have deflation over time) Looking back it would be difficult to predict deflation over time, but who knows.....
gold is not an investment:
http://bucks.blogs.nytimes.com/2011/05/23/gold-is-not-an-investment/
When I first started driving gas was about 50cents per gallon. $2.50ish now? You know... that’s 5 to 6% increase over time.
So I take it you’re from the “Buy and hold” school of thought? Set it and forget it?
CA....
I have “set it and forget it” investments. But I have short term as well. Not nearly as many short term because I’m semi-retired. Some individual stocks now and then. No bonds. I don’t view bonds as low risk. I buy real estate for a hedge against market fluctuations.
Thanks!
Same here...around 35% real estate, 35% long-term decent dividend stocks and 30% cash.
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