Skip to main content
No. of Recommendations: 18
{{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: ???
Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.