Comments on: Reader Question: It Feels Like I’m Just Throwing Money Away, So Why Should I Keep Investing?

By: financial spreadbetting

financial spreadbetting — Tue, 20 Jul 2010 06:29:45 +0000

Lots of other people feel like they are throwing money away. It is when everyone else gives up that the biggest opportunities come.

By: Chris

Chris — Wed, 04 Mar 2009 15:56:21 +0000

Not to be a debbie downer, but what exactly do we have to be optimistic about in this country? Socialism? Deficits and debt up to our eyeballs? Moral hazard at every turn? Going green and paving roads is NOT going to grow us out of this mess. I hope an pray I am wrong, but I’m having a hard time seeing the proverbial light.

Oh, and BTW, I was sure thinking long term when I started investing in 1997. SURE ARE MAKING HEADWAY AREN’T WE???

By: BlackJackTrainer

BlackJackTrainer — Wed, 04 Mar 2009 15:51:21 +0000

Great article, thanks for sharing this info.

By: thomas

thomas — Wed, 04 Mar 2009 07:15:49 +0000

I’ll keep pumping in cash to my retirement account and truly hope that the markets stay low for a little longer.

By: El Cheapo

El Cheapo — Wed, 04 Mar 2009 04:07:39 +0000

“Stocks are cheap”… and “buying at a discount”…

While I am a long term investor with a retirement horizon of 30+ years, we need to be careful to say the above statements. The P/E of the S&P is about 13 right now, which is NOT particularly cheap versus other bear market averages. To me, stocks are ‘cheap’ with a P/E of 10, so sign me up when the S&P hits the 500 to 550 range.

Living in California, real estate is pretty dang cheap too versus 3-5 years ago. But you won’t find me advocating a purchase anytime soon. The fundamentals just aren’t there.

By: Ken

Ken — Tue, 03 Mar 2009 02:54:54 +0000

Great advice that you give to this young investor. He does need to stay the course and benefit from this bargain cheap market we have right now. He needs to think LONG TERM. He will not need this money for 30 plus years. History says the market will rebound. I think 2010 we’ll see a predictable and more consistent rise.

By: anon

anon — Tue, 03 Mar 2009 02:20:25 +0000

If you are a Gen-Xer contributing to a retirement account, you should be down on your knees thanking a deity for this bear market.

In 2008, market valuations (Shiller’s CAPE, PE10, P/B ratios) were astronomic. Now they are a little below average. This means that over 20 years you’ll probably get a 5% real return. Back in 2007 you were due for a 1 to 2% real return.

Now just hope that we all remain safe and employed through this mess.

By: Eves Bank

Eves Bank — Tue, 03 Mar 2009 02:01:44 +0000

Maybe trying a money market account, cd account, or a interest bearing checking account would be something you might consider if you want to be more on the safe side?

By: financePHI

financePHI — Mon, 02 Mar 2009 23:50:15 +0000

I agree with the article in terms of long term investments that you have already taken hits on. But for the short term, it may be better for you to close your long positions and sit on the sidelines.

By: MoneyEnergy

MoneyEnergy — Mon, 02 Mar 2009 23:29:32 +0000

One thing I’ve learned from this recession (probably the first real one I’ve been very conscious for) is that the next time that my holdings see a surge, or the next time we’re feeling really good in a bull market, I’m going to take a good chunk “off the table” and put it into more conservative investments (Cdn. gov’t bonds probably) in order to be assured of income for the subsequent bear market. Because we all know that every bull is followed by a bear… it’s just a question of when.

Good post – thanks for these reminders.