Truth or Consequences, NM
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Chet Ruminski Wrote: The DOW is in a steep climb. Does that tell retirement funds to keep buying ? Or move retirement funds to Treasury Notes. The possibility of huge losses to pensions outweighs the low Treasury interests. By the time the DOW moves down it will be too late. Dockadams, Is that the only loss?
I can only speak from personal experience, those people with 401K's which are invested solely into stocks is a big mistake, unless they're willing to risk losing all of the money they've put into it.
As I see it, almost anything can bring down the stock market, all of them, not just the DOW, this morning, following Trump's new rhetoric about NK, all stock markets opened lower, this is what I mean by almost anything can bring all of them down.
"(Reuters) - U.S. stocks opened lower on Wednesday as investors flocked to safe-haven assets amid escalating tensions between North Korea and the United States.
The Dow Jones Industrial Average fell 63.37 points, or 0.29 percent, to 22,021.97."
If we go back in history a bit, the world market and housing market crashes had a severe effect on banks and the stock market in 2008.
"The Great Recession was a period of general economic decline observed in world markets during the late 2000s and early 2010s. The scale and timing of the recession varied from country to country. In terms of overall impact, the International Monetary Fund concluded that it was the worst global recession since the 1930s. The causes of the recession largely originated in the United States, particularly related to the real-estate market, though choices made by other nations contributed as well. According to the U.S. National Bureau of Economic Research (the official arbiter of U.S. recessions) the recession, as experienced in that country, began in December 2007 and ended in June 2009, thus extending over 19 months. The Great Recession was related to the financial crisis of 2007–08 and U.S. subprime mortgage crisis of 2007–09. The Great Recession resulted in the scarcity of valuable assets in the market economy and the collapse of the financial sector in the world economy"