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It all depends on how long your investment horizon is. If you have another 30 years until retirement it would be foolish not to buy stocks now. Not saying to d

It all depends on how long your investment horizon is. If you have another 30 years until retirement it would be foolish not to buy stocks now. Not saying to dump every penny you have into the market at once, but increase your buying NOW. The dollar is being devalued as we speak, holding cash makes little sense. When all the dust and panic around this virus has settled, many quality companies will still be around. Procter & Gamble will still be selling detergents and tampons, McDonalds will still be frying hamburgers and Microsoft will still be selling office subscriptions.

VBprogrammer 7y ago
For the most part I agree with everything you have said. In the original conversation I obliquely mentioned I took the stance that no one should finance a car over 7 years. I myself pay cash for all of my vehicles and simply limit my choice to vehicles I can afford to buy in cash. A couple of people came out of the woodwork to say that paying cash on a car is not a sound financial decision because I could otherwise invest the same money at gain a 10% return each year while only paying 1.5% for the debt. I made the argument that over a 3-7 year time span you are about as likely to come out down as you are to come out up in the stock market.
graeme 7y ago
If markets fall another 20-30%, it won’t have obviously been a good time to buy today. These aren’t normal times. In the depression, stocks fell for about three years. Also, your dollar argument makes no sense: the stocks are valued in dollars, and are falling faster than the dollar. It’s great to buy at the bottom, but who knows if that’s it.
- alexandercrohde 7y ago
  The point is that even in the worst-case-scenario, if you bought stock the hour before the great depression, you'd still be way up when you retire in 30 years later.
  - lifty 7y ago
    You're probably right, but keep in mind that for the past 100 years we have seen a systematic trend in lower interest rates that brought massive debt expansion and financialization of the economy. We are at the 0% interest rate at the moment so monetary expansion will be more difficult, unless the FED does direct equity purchases like the ECB did. So it's worth considering other outcomes as well, like stagflation, MMT or massive devaluation of our currencies. Some of these outcomes are very bullish for equities, but it's hard to say where things are headed at the moment.
  - graeme 7y ago
    The dow went from 400 to 50 in the depression. If you bought at the bottom you’d have 800% more than if you’d bought at the top! The fact that stocks go up long run isn’t an argument for pouring money into a plunging market. This might be the bottom, it might not.
    - tybit 7y ago
      As you said It’s great to buy at the bottom, but who knows if that’s it., so I’m going to continue investing whatever I can each fortnight. I’d rather risk paying more now before a big crash and continuing to invest through the big crash than risk missing this opportunity and the market going back to a bull one in a few weeks.
      - graeme 7y ago
        That’s fine. The parent comment was recommending people increase their buying right now however. My point was this isn’t necessarily a special opportunity just because it’s off a peak.
  - empath75 7y ago
    but i'm not retiring in 30 years?
- imtringued 7y ago
  The market will recover. Give it a decade or two. If you want to retire today you're having the worst luck ever.

VBprogrammer 7y ago

For the most part I agree with everything you have said. In the original conversation I obliquely mentioned I took the stance that no one should finance a car over 7 years. I myself pay cash for all of my vehicles and simply limit my choice to vehicles I can afford to buy in cash. A couple of people came out of the woodwork to say that paying cash on a car is not a sound financial decision because I could otherwise invest the same money at gain a 10% return each year while only paying 1.5% for the debt. I made the argument that over a 3-7 year time span you are about as likely to come out down as you are to come out up in the stock market.

graeme 7y ago

If markets fall another 20-30%, it won’t have obviously been a good time to buy today. These aren’t normal times. In the depression, stocks fell for about three years. Also, your dollar argument makes no sense: the stocks are valued in dollars, and are falling faster than the dollar. It’s great to buy at the bottom, but who knows if that’s it.

alexandercrohde 7y ago
The point is that even in the worst-case-scenario, if you bought stock the hour before the great depression, you'd still be way up when you retire in 30 years later.
- lifty 7y ago
  You're probably right, but keep in mind that for the past 100 years we have seen a systematic trend in lower interest rates that brought massive debt expansion and financialization of the economy. We are at the 0% interest rate at the moment so monetary expansion will be more difficult, unless the FED does direct equity purchases like the ECB did. So it's worth considering other outcomes as well, like stagflation, MMT or massive devaluation of our currencies. Some of these outcomes are very bullish for equities, but it's hard to say where things are headed at the moment.
- graeme 7y ago
  The dow went from 400 to 50 in the depression. If you bought at the bottom you’d have 800% more than if you’d bought at the top! The fact that stocks go up long run isn’t an argument for pouring money into a plunging market. This might be the bottom, it might not.
  - tybit 7y ago
    As you said It’s great to buy at the bottom, but who knows if that’s it., so I’m going to continue investing whatever I can each fortnight. I’d rather risk paying more now before a big crash and continuing to invest through the big crash than risk missing this opportunity and the market going back to a bull one in a few weeks.
    - graeme 7y ago
      That’s fine. The parent comment was recommending people increase their buying right now however. My point was this isn’t necessarily a special opportunity just because it’s off a peak.
- empath75 7y ago
  but i'm not retiring in 30 years?
imtringued 7y ago
The market will recover. Give it a decade or two. If you want to retire today you're having the worst luck ever.