It took almost 6 years but the Dow to-day broke its old record high set in 2007. Easy money and corporations are lean and mean and flushed with trillions in cash. The problem in the U.S. now is high government debt and a bloated government workforce.
Dow Record!
- Thread starter Rockslinger
- Start date
The best time to buy would have been early 2009 when the Dow hit a 12 year low. Now, who knows
.Actually the best time to buy is a little all the time - dollar cost averaging rules in the long term. If not that, then buy when the market is running down and hold off a little when it is peaking.
PS I am not a financial advisor, just the strategy I have in place and it works over time (for example, for RRSPs, I contribute each month, rather than waiting to Feb 28th each year to invest a lump sum - and I got the returns for those portions during the year as well).
PS I am not a financial advisor, just the strategy I have in place and it works over time (for example, for RRSPs, I contribute each month, rather than waiting to Feb 28th each year to invest a lump sum - and I got the returns for those portions during the year as well).
Doesn't mean much to Main St. The Dow only represents 30 companies. These 30 companies are flush with cash and still not hiring or expanding. The middle class are not benefiting from this rise. Only the fat cat execs are. The S&P on the other hand represent 500 companies. This is where to invest. In terms of percentages, it's doing as well or better than the Dow.
I may be in the minority (so what else is new?) but I think there is still lots of money to be made in U.S. banks, especially now that U.S. real estate is coming back from the dead.
all I know is I'm making $$$$ last week sh*t myself with the money I made I hope it goes for awhile ,people are putting in money WHY because the banks only give you what half a percent interest.
With Bernanke pouring $85 billion into the market *every* month, what do you think?
And he can't raise interest rates because government debt is too high. At some point he will have to stop because the inevitable effect of printing money is inflation.
All the investment money is being forced into the market, bond yields can't go any lower than real zero, this also dries up the savings alternative (money markets) - the only place to earn a return is in equities... your seeing a demand surplus.
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Don't know if this is still true to-day but I heard a few months ago that fund managers were sitting on tons of cash. The other factor driving the market is share buybacks and takeovers. China just paid $15 billion to Nexen shareholders, where is that money going to be re-invested?
I did all ETFs last May. though I wasn't certain which way my life savings would go, it's making me look smart right now. Real Estate stinks now, though.
