Comments on: The 2009 Great Depression: Why Stocks Are The Best Pre & Post Crash Investments

By: Randolph

Randolph — Mon, 09 Mar 2009 00:16:49 +0000

Alex

If your advice makes sense, then from extrapolation the market would pick up somewhere around July 2010 onwards. So if one still has some cash the time to start “nibbling” good stocks is from end of this year onwards.

By: Philip Chua

Philip Chua — Sun, 08 Mar 2009 20:33:57 +0000

Fully agree that one have to consider investing for the longer term but when would be a better time to start investment in equities? If equity prices are to drop another 50% and with the same capital the investor could double the investment holdings. And definitely collect twice more the dividends or run doubly fast when prices pick up. Considering the Dow had three of its worst years ever – 1931 (-53%), 1932 (-23%) and 1937 (-33%) -during that period, then my preference is to invest later.

By: Namesake

Namesake — Sun, 08 Mar 2009 18:12:58 +0000

Regardless of where the market ultimately bottoms and for how long, the market will have plenty of buy opportunities. There were 21 rallies of at least 5% from the 1929 top to the 1932 bottom. Now, that does NOT mean you can ID each! But, it = opportunity.

The longer a downtrend, the greater the magnitude, the more you should think, “Opportunity”, rather than herdist, PIED PIPER RAT laggardism.

The average herdist knows how to read the newspaper headlines (5 words on average – and is written at the 3rd grade level, so big deal), can find news (it’s everywhere and requires no skill), yet sucks at investing, and always will, so why should I follow them?

Herdist Pied Piper Ratism has created so many problems in the world. I might as well try to find the opportunity they present.

By: Bill

Bill — Sun, 08 Mar 2009 14:43:45 +0000

Is this a good time to start ” Gone fishing”.

By: Jack Hardy

Jack Hardy — Wed, 04 Mar 2009 14:57:24 +0000

I think most companies printed stocks just to feed
the demand for baby boomers. If you add up the total net worth of most companies then divided it by the number of stocks they printed. The stock are not worth, in dollars, the paper there printed on. There is no doubt in my mind that there were illegal activities there too.

What we have here is something similar to Great Tulip Mania and we will be laughing at ourselves
for many generations to come.

Maybe things will change in the future. I sure hope so.

By: MediaMac

MediaMac — Mon, 02 Mar 2009 22:51:36 +0000

Did you see the market today? Before or after you wrote this?

By: Jack Edwards

Jack Edwards — Mon, 02 Mar 2009 21:13:59 +0000

With all due respect, and with the full knowledge that you have been active in the market longer than I have, your optimism seems like the south end of an ostrich whose north end is buried in the sand. Too many cycles are all coming into play at the same time. This is different from all our previous crises; the old rules no longer apply.

By: Julf Schwenke

Julf Schwenke — Mon, 02 Mar 2009 19:49:53 +0000

Dear Alex, my retirement savings and investments are now down 55% and I have no cash to invest, because I am retired. My income is minimal and I am counting to live off my investments. So, who is to benefit from your wisedom? The unemployed with no income? the retired who do not receive monthly pension payments of substance, or just those who had the guts and sold for cash before the crashing started and continued?
Simserim sim sim sim sim, Julf

By: Paul Christensen

Paul Christensen — Mon, 02 Mar 2009 19:00:50 +0000

Alex, Is this a good time to start your “Gone Fishing Portfolio?”

By: Dan Mertely

Dan Mertely — Mon, 02 Mar 2009 18:10:25 +0000

Recommending that investors buy now and not wait for a “bottom” is not “contrarianism”, as you say, but is rather the recommendation of the mainstream. For months now we’ve heard nothing but calls to get-in and not try to call the bottom from most advisers. As to where we’ll be in 10 years, I’d quote Keynes: “In the long run, we’re all dead.”