The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing


Subject:  Re: Awesome retirement investing tip Date:  2/21/2000  4:39 PM
Author:  Goofyhoofy Number:  19373 of 88758

{{Considering the fact that the Rule Breaker has averaged over 60% since 1994, hoping that it will average over 18% is a risk I am willing to take despite the fact that 1994-2000 is a short time period.}}

It's 1965. "Wow, the stock market has doubled in the past 5 years. It's tripled in the past 10! The DOW is at 1000! I'm putting everything in stocks!"

Result: The DOW stays under 1000 until 1982, giving 1965 investors no return for 17 years.

It's 1973. "Wow, those Nifty Fifty stocks are a can't miss! Most of them are up 20 to 25% year over year, some have doubled and tripled and even quadrupled in the past 5 years! I'm putting all my money into them!"

Result: The Nifty Fifty, aka (the high P/E growth stocks) crashed. Walt Disney went from $57 to $4 per share. The other 49 did only marginally better. Some, like Avon and Polaroid have never come back.

It's 1979. "Wow, inflation has been over 10% for the past 5 years, and it keeps increasing! It's at 17% and climbing! I'm putting all my money into short-term CD's, and rolling them into even higher paying instruments with every redemption!"

Result: Inflation crashes during the recession of 1980. Today it's at 2%.

It's 2000. "Wow, those RuleBreaker stocks have gone up 66% a year for the past 6 years. I'm putting all my money into them.!

Result: ???
Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us