How Much Will Your Investments Be Worth in One, Five, and Ten Years?

Posts Tagged ‘Stock Market Crash’

How Much Will Your Investments Be Worth in One, Five, and Ten Years?

By Jim Walker on Monday, December 10th, 2018 | Comments Off

Investors are concerned today as the market corrects, the trade war threatens to be long term, the Trump tax cut effects are wearing off, and earnings are taking a hit. But, one needs to put things in perspective when looking at long term investing. When making investment decisions, ask yourself how much will your investments be worth in one, five, and ten years.
Stock Market Investment Perspective
The New York Times has an interesting article in this respect. Despite recent losses, stocks are riding high when you look at the longer term.
Lately, the markets have been rattled about the prospect that a […]

Why Is There a Flight to Quality Investments?

By Jim Walker on Monday, November 12th, 2018 | Comments Off

The US stock market is down a bit as investors are flocking to quality stocks, as reported by CNBC. What is going on? Why is there a flight to quality investments?
Both before the market’s October sell-off and in the two-week bounce, investors have shown a clear preference for “quality” stocks.
Not the same as cheap “value” stocks, these are companies with less debt, stable businesses and some defensive characteristics in a tougher market or economy.
A grouping of such companies by Citi surfaced the likes of Walmart, McDonald’s, Pfizer, Procter & Gamble, Amgen and Quest Diagnostics.
While not predictive in itself, this pattern […]

Could Your Investments Lose 30% of Their Value Next Year?

By Jim Walker on Wednesday, August 8th, 2018 | Comments Off

Earnings have been driving growth in the stock market. A trade war is developing and we are entering the 9th year of an economic expansion. CNBC writes that 20% earnings growth is not sustainable and predicts that stocks could plummet 20% to 30% next year.
“You could be looking at the first 20 percent-plus decline in the S&P since the financial crisis,” the firm’s chief U.S. strategist said Tuesday on CNBC’s “Futures Now.”
His worst-case scenario is a 30 percent plunge next year.
“Our primary list of concerns is on the earnings front,” Clissold said. “Earnings growth north of 20 percent isn’t sustainable, […]

Switch Your Investment Focus from Growth to Value

By Jim Walker on Wednesday, February 28th, 2018 | Comments Off

Unless the stock market stages an unexpected late rally, the month of February 2018 will be the first February since the 2008 market crash where stocks have gone down instead of up. Inflation is gaining momentum and interest rates are about to go up from years of historic lows. The unique financial conditions of the last several years have been ideal for high tech growth stocks, the FANG group especially. But, now that conditions are changing, growth stocks are overpriced and at risk for a major correction. The better choice for many investors is to move into value stocks and […]

Should Investors Be Scared as Markets Cool Off?

By Jim Walker on Monday, November 13th, 2017 | Comments Off

Did you lose a lot of money in the 2008 stock market and real estate market crashes? If so you probably wish you had listened to that little voice in your head that said it was time to take profits and sit on cash for a while. It was not like there was no warning. Look at Google Finance and you can see how the SPDR S&P 500 ETF Trust peaked in late 2007! For the next twelve months the market was in an ever-steeper decline.

SPDR S&P 500 ETF Trust
Anyone who listened to that little voice and got out saved […]

Is Dr. Doom Right about the Markets?

By Jim Walker on Monday, June 26th, 2017 | Comments Off

There are contrarians who continually predict a fall in stock prices. The old joke is that even hypochondriacs get sick once in a while. Thus by analogy we might say that even the perpetual naysayer will be right about the market from time to time. One of these naysayers is Marc Faber also known as Dr. Doom. According to CNBC he predicts that stocks are set to plummet 40% or more.
If the man often hailed as the original “Dr. Doom” is right, the stock market could see another “lurch” higher – at which point investors may want to cash out […]

Another Dot Com Bust?

By Jim Walker on Monday, November 30th, 2015 | Comments Off

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The S&P 500 is trading up, near a 52 week high. This would make investors happy if it were not for the narrowness of the rally. Market Watch remarks on the similarity […]

Deciding Which Stocks to Sell

By Jim Walker on Monday, September 28th, 2015 | Comments Off

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As investors watch the market fall the issue becomes one of deciding which stocks to sell. A common problem when the market corrects is that investors panic. The Wall Street Journal notes […]

Dow Theory Predicts Correction

By Jim Walker on Wednesday, June 10th, 2015 | Comments Off

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A hundred year old stock market predictor has investors worried. The Wall Street Journal reports that Dow Theory is indicating a market correction. It has to do with surging industrials and lagging […]

Next Big Stock Market Crash

By Jim Walker on Monday, February 3rd, 2014 | Comments Off

In retrospect it is easy to see that the dot com bubble was going to burst and that the market was going to crash in 2008. Going back to the market crash that ushered in the Great Depression hindsight always tells us what should have been obvious. But the market always seems to have trouble […]

Posts Tagged ‘Stock Market Crash’