Saturday, June 03, 2006

The Experts at Investing

People seem to think that these Mutual Fund Managers and IRA Fund managers (and throw in a Stock Broker) know what they are doing.

They know how to handle the paper work, but ask yourself one question. Is the reason that thing have been so great, is it, because the market has been climbing to the sky?

None of these rookies has ever seen a bear market. Let me explain a bear market to you. Say GM finds a way make gasoline out of thin air, you would find the stock dropping $10 per share. That seems impossible, but thats the way the '60's and 70's went.

So far in this new millinium structure, things have been going up. Sometime in the near future stocks will start their downward slide. This time it will be different, people will be expecting a recovery and it will not be there. They will hold on until it is so obvious and then it will be too late.

The stock market has stopped its climb, but the obvious things that would allow it to stay at this level deny all expectations. The dividend level is pathetic. If you are about ready to retire, ask yourself, what investment will pay a good dividend at retirement? Very few it seems.

If thats the case, where do all of the IRAs, Mutual Funds, and 401K figure on getting the money for payout on retirement income plans? Selling their principle investments, I think not! They have a song and dance, and when the music stops, its going to be different, different than anything that you could ever imagine.

No comments: