Sam, before committing your money to an index fund or another equity-based instrument, I urge you to consider the potential impact interest rate hikes will have on the market. Also, in a doomsday scenario, if Forbes Kerry were elected President, I can assure you my money would not be long equities.
It's a shame you'll be sitting out Rubinomics 2.0, did you do the same when Jefferson Clinton was elected and miss on the largest bull market of all time? ...my worries about higher interest rates pale in comparison to what those rates may be should the runaway deficit spending under Walker Bush continue and deficit financing becomes a serous issue....
I will not hijack a thread in the Hangout Forum with talk about how Rubinomics has been proven wrong or how the market performed well in spite of Clinton. I will not hijack a thread with information about how every investment professional that I have ever spoken to being very sour on the potential for a Forbes Kerry presidency. I will not hijack a thread with information about how an increase in capital gains tax rates or dividend tax rates would seriously impair the market. GOOD DAY
to be fair...clinton did catch the internet boom. and interest rates are the thing that will be influencing the market the most. there are more than a few stocks right now that have their gains based on these insanely low rates
True, my point was that "crowding out" and hence higher interest rates was a problem when Clinton took over due to high deficits, and that that problem may soon recur.
You guys really need to read some of the posted studies on Lance's site. It's very important to note how hard it is to make up losses. A 10 percent loss of your to portfolio requires an 11 %+ rise to return to the same level since the gain applies to the reduced value. This fact makes capital conservation more important than capital gain but those of us who have only participated in the bull market can easily overlook it. There are recent periods in the US market where the market has gone a decade with no apprecialble gains and in fact had losses when inflation is factored in. Buy and hold is a losing game in a bear market.
