A nice article on bubbles and capitalism

[MadeInTaiwan]

To summarize, it is everyone’s fault, but unavoidable. It explains why bubbles are inevitable part of capitalism. It gives reasons why it is difficult to be remain a bear in a bull market.

http://www.theatlantic.com/doc/200812/blodget-wall-street

I am just glad that we already owned our house for a few years when the housing bubble hit.

The article reinforces my personal financial strategy of long term cost average investment in index funds and ignore (or try to) the day to day and month to month movements, try to live within my means, and pray that violent market movements doesn’t adversely affect me too much (like a long term layoff).

[sdduuuude]

If you started dollar-cost averaging in the stock market any time after 1997 (maybe even 1987), you are losing money.

[sdduuuude]

If you started dollar-cost averaging in the stock market any time after 1997 (maybe even 1987), you are losing money.

[sdduuuude]

If you started dollar-cost averaging in the stock market any time after 1997 (maybe even 1987), you are losing money.

[sdduuuude]

If you started dollar-cost averaging in the stock market any time after 1997 (maybe even 1987), you are losing money.

[sdduuuude]

If you started dollar-cost averaging in the stock market any time after 1997 (maybe even 1987), you are losing money.

[MadeInTaiwan]

That is if I sell today correct? Since all of my cost average index investment is long term (20, 30 years from today) I am hoping for an overall gain 🙂

My understanding is that the U.S. stock market historically averages 7-9% return (don’t remember if it is adjusted for inflation), which makes it the safest investment taking inflation as a risk. Besides, if there is sufficient systemic problems for a 15-20 year decline then I figure I’d got more problems to worry about then loosing my nest egg.

My squint eye view of market graphs tells me that the market doesn’t move very much most of the time, but have big jumps and dips. While we can say that the market is overvalued, it is hard tell when the correction comes. More importantly, if you may miss the rises, and this is assuming that you make the correct call on where to put your money instead of the stock market.

I just figured a low cost, index funds like Vanguard allows for best combo of low anxiety, low fee, low maintenance, high return for me. I’ts what Warrent Buffet recommends for most foundations, pension funds, and it is good enough for me.

[MadeInTaiwan]

That is if I sell today correct? Since all of my cost average index investment is long term (20, 30 years from today) I am hoping for an overall gain 🙂

My understanding is that the U.S. stock market historically averages 7-9% return (don’t remember if it is adjusted for inflation), which makes it the safest investment taking inflation as a risk. Besides, if there is sufficient systemic problems for a 15-20 year decline then I figure I’d got more problems to worry about then loosing my nest egg.

My squint eye view of market graphs tells me that the market doesn’t move very much most of the time, but have big jumps and dips. While we can say that the market is overvalued, it is hard tell when the correction comes. More importantly, if you may miss the rises, and this is assuming that you make the correct call on where to put your money instead of the stock market.

I just figured a low cost, index funds like Vanguard allows for best combo of low anxiety, low fee, low maintenance, high return for me. I’ts what Warrent Buffet recommends for most foundations, pension funds, and it is good enough for me.

[MadeInTaiwan]

That is if I sell today correct? Since all of my cost average index investment is long term (20, 30 years from today) I am hoping for an overall gain 🙂

My understanding is that the U.S. stock market historically averages 7-9% return (don’t remember if it is adjusted for inflation), which makes it the safest investment taking inflation as a risk. Besides, if there is sufficient systemic problems for a 15-20 year decline then I figure I’d got more problems to worry about then loosing my nest egg.

My squint eye view of market graphs tells me that the market doesn’t move very much most of the time, but have big jumps and dips. While we can say that the market is overvalued, it is hard tell when the correction comes. More importantly, if you may miss the rises, and this is assuming that you make the correct call on where to put your money instead of the stock market.

I just figured a low cost, index funds like Vanguard allows for best combo of low anxiety, low fee, low maintenance, high return for me. I’ts what Warrent Buffet recommends for most foundations, pension funds, and it is good enough for me.

[MadeInTaiwan]

That is if I sell today correct? Since all of my cost average index investment is long term (20, 30 years from today) I am hoping for an overall gain 🙂

My understanding is that the U.S. stock market historically averages 7-9% return (don’t remember if it is adjusted for inflation), which makes it the safest investment taking inflation as a risk. Besides, if there is sufficient systemic problems for a 15-20 year decline then I figure I’d got more problems to worry about then loosing my nest egg.

My squint eye view of market graphs tells me that the market doesn’t move very much most of the time, but have big jumps and dips. While we can say that the market is overvalued, it is hard tell when the correction comes. More importantly, if you may miss the rises, and this is assuming that you make the correct call on where to put your money instead of the stock market.

I just figured a low cost, index funds like Vanguard allows for best combo of low anxiety, low fee, low maintenance, high return for me. I’ts what Warrent Buffet recommends for most foundations, pension funds, and it is good enough for me.

[MadeInTaiwan]

That is if I sell today correct? Since all of my cost average index investment is long term (20, 30 years from today) I am hoping for an overall gain 🙂

My understanding is that the U.S. stock market historically averages 7-9% return (don’t remember if it is adjusted for inflation), which makes it the safest investment taking inflation as a risk. Besides, if there is sufficient systemic problems for a 15-20 year decline then I figure I’d got more problems to worry about then loosing my nest egg.

My squint eye view of market graphs tells me that the market doesn’t move very much most of the time, but have big jumps and dips. While we can say that the market is overvalued, it is hard tell when the correction comes. More importantly, if you may miss the rises, and this is assuming that you make the correct call on where to put your money instead of the stock market.

I just figured a low cost, index funds like Vanguard allows for best combo of low anxiety, low fee, low maintenance, high return for me. I’ts what Warrent Buffet recommends for most foundations, pension funds, and it is good enough for me.

[MadeInTaiwan]

But I really did not mean to trumpet my own investment strategy. What is interesting to me about the article is its assertion that bubbles are inevitable cycles of capitalism, and every participant are acting fairly rationally in his/her “irrational exuberance.”

I suppose a crafty investor can (and have) win big by betting against the herd, but for the majority it simply is not possible due to human nature.

Too bad when the next big bubble comes I’ll probably be long dead (or near death) to profit from the knowledge. Do hope to pass it on to my kids though.

[MadeInTaiwan]

But I really did not mean to trumpet my own investment strategy. What is interesting to me about the article is its assertion that bubbles are inevitable cycles of capitalism, and every participant are acting fairly rationally in his/her “irrational exuberance.”

I suppose a crafty investor can (and have) win big by betting against the herd, but for the majority it simply is not possible due to human nature.

Too bad when the next big bubble comes I’ll probably be long dead (or near death) to profit from the knowledge. Do hope to pass it on to my kids though.

[MadeInTaiwan]

But I really did not mean to trumpet my own investment strategy. What is interesting to me about the article is its assertion that bubbles are inevitable cycles of capitalism, and every participant are acting fairly rationally in his/her “irrational exuberance.”

I suppose a crafty investor can (and have) win big by betting against the herd, but for the majority it simply is not possible due to human nature.

Too bad when the next big bubble comes I’ll probably be long dead (or near death) to profit from the knowledge. Do hope to pass it on to my kids though.

[MadeInTaiwan]

But I really did not mean to trumpet my own investment strategy. What is interesting to me about the article is its assertion that bubbles are inevitable cycles of capitalism, and every participant are acting fairly rationally in his/her “irrational exuberance.”

I suppose a crafty investor can (and have) win big by betting against the herd, but for the majority it simply is not possible due to human nature.

Too bad when the next big bubble comes I’ll probably be long dead (or near death) to profit from the knowledge. Do hope to pass it on to my kids though.

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