No. of Recommendations: 2
Huh? Are you suggesting only putting money into savings accounts and other principal preserving assets? I would still advocate young people follow some kind of standard asset allocation plan (stocks, bonds, real estate, international), presumably updated for changing times. My view is that if economic growth is less in the future (which doesn't necessarily mean a lower standard of living, if standard of living is measured as quality of life not how much stuff people buy), then returns on investment will be less, overall. A sensible asset allocation plan should still be the best way to optimize what real return is available.


Please don't misunderstand me, you make this board and we all enjoy reading your posts. I do admire your writing ability, but my life experiences leads me, at times, to see things differently then you do. You talk about the historic average return, this is just a reference point, for it is not our reality, our investment lives are too short. What we experience is some small parts of that historic average that turns out to be a violent roller coaster ride with the potential to wipe out our savings. Huh?..yes you guest it exactly, at this time it is hard enough to limit ones losses, I follow the first rule in investing, don't loose money. Presently our government is stealing our savings and encouraging us to take risks that only benefit the financial industry. It is times like this to stand aside. Using asset allocation to spread our savings over high-risk low return investments only benefits the financial industry at our expense. I have no way of knowing what the future holds and my only guide post is rate of return related to risk. I view the deflation of all assets as good times ahead for rates of returns will improve. It will create investment opportunities. I like the globalization that is going on for it raises the standard of living of all people. If things work out in this world as it did in our country the increasing demand for everything will benefit everyone. But it is this same globalization that makes markets and the future so unpredictable.
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