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Cheap gas + cheap stocks. Sounds like this is a good thing unless you're either a) a full-time investor, or b) retired or planning to retire very soon. If you'
by nfriedly 11y ago
Cheap gas + cheap stocks. Sounds like this is a good thing unless you're either a) a full-time investor, or b) retired or planning to retire very soon.
If you're working a job and putting money into an index fund for retirement, then news like this should make you smile and maybe put a little extra into your IRA/401k/etc. next paycheck.
- opmac 11y agoIdeally, if you're getting ready to retire, most of you assets should not be in the volatile stock market, so it should not affect you terribly.
- kbutler 11y agoIf you intend to live for 30 years in retirement, shouldn't you still have a good chunk of your assets in stocks?
- robotresearcher 11y agoMany people use much of their retirement savings at the moment of retirement to buy a special retirement-income product. This can have tax benefits over normal investments. So you try to maximize the probability of having a large fund at that moment.
- jameslk 11y agoCheap stocks? To me, everything looks pretty inflated from the QE fun we've had since 2009. What goes up, must come down. And over the past 7 years, stocks have gone pretty far up. Now the party is over thanks to the Fed. Or, to put it more visually, take a look at the graph of the S&P 500 since 1994: http://i.imgur.com/5Kn5XJM.gif http://i.imgur.com/5Kn5XJM.gif I think that does a good job of illustrating our problem here.
- rmah 11y agoHave you tried adjusting it for inflation and GDP growth? Even after that, the S&P 500 should be doing better. Why? Because the S&P500 represents the winners not the overall economy.