Bill Gross -- The Good Times Are Over.

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I don't understand money stuff. But since I don't need my retirement monies for a few decades I'm not sure a downturn is "bad" for me. If I pump money into my 401k/Roth/index, then perhaps I'll be buying when low. And selling when high, in future years when I rebalance my portfolio.

So I guess you could say, I'm not changing anything. I hope to ramp up my savings rate based upon long term trends (market makes growth).
 
Bill is a good example that if you keep saying the same thing for years, eventually you will be right and can point to it and say "see I told you so."

His opinion seems to be very self serving as the conclusion drives you to buy what he sells - his bond fund.

I have no crystal ball, just see powerful economic forces at work with low oil prices resulting in huge transfer of wealth - simulating some economies and destroying others. The Saudi's and the other oil producing companies are liquidating their cash and other assets at an incredible rate. Usually in times like this, someone has made wrong sided bets and they can't cover, which creates lose-lose situations that ripple through the global economy. Could be an interesting ride.
 
Nope.

The good times are just beginning.

Now, I can buy all those stocks I was contemplating...but for a lower price!

E.G. Bought XOM yesterday. Might buy more today....
 
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Originally Posted By: Turk
So, what do you think?


It doesn't matter what year it is, what time of year, what the geopolitical climate is...the world is always ending for some stock analysts. It's always "time to sell" or "time to buy".

I think history demonstrates pretty strongly that keeping your money in the market, in a good mix of asset classes, is the surest way to reasonable growth.

In short, and to answer your question, I will make few changes to my portfolio this year.
 
They cant even predict whats going to happen tomorrow never mind a trend.
They saw 08 coming right? lol
If these guys were so friggin smart they would be sitting fat on some tax sheltered island somewhere not writing columns posted on yahoo.

Its all a gamble sometimes you win sometimes you loose thats all there is to it, 99% luck and tips from others and 1% skill for most investors.
 
Originally Posted By: HosteenJorje
Didn't sell anything in 2008/09 and not going to sell anything now.


Me neither...

But I was buying quite a bit!
 
Originally Posted By: Trav
They cant even predict whats going to happen tomorrow never mind a trend.
They saw 08 coming right? lol
If these guys were so friggin smart they would be sitting fat on some tax sheltered island somewhere not writing columns posted on yahoo.

Its all a gamble sometimes you win sometimes you loose thats all there is to it, 99% luck and tips from others and 1% skill for most investors.


True, but this time, the guy quoted is Bill Gross, whose time at PIMCO has left him worth over $2 Billion. He took the job with Janus to keep working....he probably owns that island, but just enjoys the game...
 
Originally Posted By: Burt
Bill is a good example that if you keep saying the same thing for years, eventually you will be right and can point to it and say "see I told you so."

His opinion seems to be very self serving as the conclusion drives you to buy what he sells - his bond fund.




Burt is right.


I used to be a fan of Bill Gross but now I have lost all respect for him. He is an embittered old man who lost his job at his own company (PIMCO). He is trying desperately to stay relevant, through the media.
 
Originally Posted By: Schmoe
That dude has always been preaching that....probably why he jumped ship.


His departure from the company he founded is the source of much controversy, but basically, he didn't just leave, he was asked to leave.
 
Bill Gross is a MORON; he has the bond market completely a$$ backwards; he said the end of QE would make rates skyrocket and the complete opposite has occurred. He killed Pimpco, his flagship fund had record outflows from under performance when he tried shorting treausires during the recent year long rally.

He's another debt doomer clown who has no clue how the modern money system works.

http://www.businessinsider.com/this-was-the-bill-gross-blunder-that-led-to-his-downfall-2014-10
 
A family I knew in my college days invested their retirement in gold coins and have continued to do so. Their retirement now is well financed. I just wish that I would have done the same. My retirement of 27 years of work went up in smoke with Lehman Brothers bank in 2008 while the government protected institutional investors in the bank because they were "too big to fail". Executives that caused and/or participated in the failure were never punished and often rewarded with government positions or at least golden parachute retirements. Our financial system is as corrupt as can be and I'm no longer involved. I followed all the rules and advice of financial advisers and because of what amounts to criminal behavior of those in charge I was left with nothing. I know that what happens to me makes no difference to the system or anyone else so I'm busy taking care of myself. The family that invested in gold coins was laughed at in the past. Because of how they are living now, no one is laughing anymore. They are completely debt free and can finance the retirement of many generations to come.
 
If the family invested in gold when it was $300/oz...then they did well. But, adjusted for inflation, gold has returned essentially zero percent over the years from 1982 (peak) until now.

There are better long term strategies for investing, though gold does have a place in a portfolio.

But what that family has done right is to fully fund retirement. Most people don't.

Astonishingly, most Americans my age have about $12,000 in retirement savings. A frightening number. $12K will yield about $40/ month in retirement, using a 4% withdrawal rate....and that doesn't even pay my electric bill....much less pay for groceries.

Now, the executives at my airline all left with fully funded pensions and generous benefits, while my pension was liquidated and turned over to the PBGC. I will end up with about 10% of what was originally promised in our contract. You see, contracts with employees are renegotiated in bankruptcy, while contracts with executives are kept in place. After all, their expertise (which led to the bankruptcy on the first place) is vital to the company's future, while my skills, like flying an airplane, aren't important to an airline. (I'll pause to let the sarcasm sink in).

None of it was fair, but that's the hand I was dealt. The real question is: how do you play the hand you were dealt? I suffered a huge loss. To compensate, I poured money into my 401(k), I joined the Navy Reserve (which has a pension), I cut back, to the greatest extent possible, to fund that 401(k) which is solely mine. Now, at 51 years old, 12 years after the bankruptcy, I'm in a pretty good position.

I don't own any gold at the moment, however, the plan, and the discipline to execute the plan, have put me in a good position. The planning and discipline, not the particular investment choice, is the lesson to be learned from your gold coin family example.
 
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Frontline on PBS did a 1 hour report on airline employees and their pensions, the CEO / execs got a golden parachute while the pilots, mechanics and flight attendants got screwed.

I tell my employees that you need 'fund' your own retirement because a company pension can be changed at any time. Don't rely solely on company pension and Social Security.

I also tell people to circle their wagons and watch every penny. Just because a person / family is under a mountain of financial debt DOES NOT make them successful. If you max out your credit limit just to have an illusion of success.... You are only kidding yourself. A compounding interest calculator will open up a person's eyes when they plug in the numbers showing debt and retirement savings over a 25-30 year period.
 
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