Did you stick with the Dow?
The stock market crashed 5½ years ago, erasing $11 trillion from portfolios. On Tuesday, however, the Dow Jones industrial average finally reached a new high, closing at 14,253, topping the record of 14,164 set Oct. 9, 2007.
This proves again that old saying: The market goes up; the market goes down. Maybe the market is overheated right now and due for a correction, particularly with our jobless rate resistant to any great improvements.
Many investors fled from stocks during that crash. Others stuck tight or adjusted their holdings.
I’m sure many readers are like my wife and me. We don’t have pensions. Our retirement monies are locked up in 401(k) and IRA accounts. Years ago, we decided we didn’t have the knowledge to properly manage many of these holdings, so we hired help. Portions of our funds remained invested in the stock market.
What about you? Did you stick with the stock market? Did you remain all-in, or did you adjust your holdings when stocks were falling or after the crash? If you got out completely, did you ever get back in, or are you thinking about it now?
Greg Peck can be reached at (608) 755-8278 or gpeck@gazettextra.com. Or follow him on Twitter or Facebook
Mar 8, 2013 at 1:51 p.m.
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Yeah, professor, so why even try, right? Why try to save a little bit every month like we started doing years ago, even if it was $5 sometimes. You learn to walk a mile one step at a time. Yeah, you might have to forego some extras like eating out a lot or ciggies or driving a new car every two years, but pennies turn into dollars and they grow. Instead of bemoaning other people's good fortune and smart planning, try to take of yourself. It works.
Mar 7, 2013 at 3:07 p.m.
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The problem is this: While the stock market kept going up, and corporate profits kept going up--both now at historical highs--personal income has been in decline. Thus, who can really afford to take advantage of the Dow, even if they wanted to?
Mar 7, 2013 at 1:41 p.m.
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I pulled out of stocks last month. Will be getting in soon when it goes down. If my crystal ball is right?
Mar 7, 2013 at 9:37 a.m.
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Stocks are socially accepted gambling. I learned this in a difficult way.
Mar 7, 2013 at 9:36 a.m.
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Much to my dislike, my wife got us into the market back in the seventies. We have seen great gains , as well as great losses. If the market keeps gaining for the next year,we might be back where we were in 2008. It's a ride folks !
Mar 6, 2013 at 10:58 p.m.
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I have worked with a Certified Financial Planner for many years. I have "active managed accounts" for two annuities where they buy/sell and make those hard decisions for me.
I certainly am not qualified to do it and am willing to pay them a small percentage to do it for me.
I stuck with the same basic 2/3 stock / 1/3 bond mix I had before the crash, and I am very happy with the results.
Make a plan and stick with it!
Mar 6, 2013 at 5:46 p.m.
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I was afraid of an economic downturn but decided to stick with a diversified investment portfolio withdrawing IRA's gradually. It seems like it would be wise to hold onto government bonds and municipal bonds a little longer. My patience may pay off but I am still not confident in the market. Things can change quickly.
Mar 6, 2013 at 5:42 p.m.
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Of course, after a crash is the worst possible time to get out of the stock market....
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