A Rich Life

The Old Ideas on Saving & Investing Don't Work -- Here's What Does

Comments

  1. We agree that we should look to the Bible for guidance. Here is the appropriate verse:

    “ 1 Timothy 5:8, KJV: But if any provide not for his own, and specially for those of his own house, he hath denied the faith, and is worse than an infidel.”

  2. I think it would be fair to say that that verse expresses my ex-wife’s point of view re these matters. I am not unsympathetic to that point of view.

    But I also worry about the millions of middle-class investors who will suffer devastating setbacks during the next Buy-and-Hold Crisis in the event that stocks continue to perform in the future anything at all in the way they have always performed in the past.

    I think about the idea expressed in that verse every single day. It’s God’s judgment that matters, not yours. So I am not super concerned what some internet Goon thinks. But I am not 100 percent confident that God will judge me positively. Given that he knows the entire story, I believe that he will. But I cannot say that I feel zero concern re this matter. It’s a worry. But the worry about what will happen to millions of innocent people in the event that stocks continue in the future to perform at all as they always have in the past is the greater worry in my mind. So I do what I do.

    Rob

  4. A Buy-and-Hold Crisis affects everyone who lives in the United States, whether he or she owns stocks or not. Look at what happened in 1929. Look at the stagflation of the 1970s. Look at what happened in 2012. Much of the political frictions we have seen in the years since had their beginnings in the Buy-and-Hold Crisis of 2012. That’s where the Occupy Wall Street movement on the left and the Tea Party movement on the right got started.

    You can’t have a nation lose many trillions of dollars of spending power. as we do in every Buy-and-Hold Crisis, and not have hundreds of thousands of businesses go under as a result of the contraction in consumer spending and then not have millions of people lose their jobs. It would be better to permit honest posting re the last 41 years of peer-reviewed research at every site. Then investors would have access to the information they need to invest effectively and we would no longer see these out-of-control bull markets that cause so much human misery when the mountain of irrational exuberance created eventually and inevitably disappears into the mist. I believe in permitting the consideration of research-based stock investment strategies.

    My best wishes to you.

    Rob

  5. Your understanding (lack of understanding) of each of those economic situations is just shocking.