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[demosthenes]

Pretty much. If you are retiring in 4 years then you should be pretty bond heavy, I would imagine. At least I would be. I'm a chicken.

Typical bond funds I've looked at have their largest 3 month declines as ~4-5%. Typical mutual funds / etfs for stocks I've looked at have their largest 3 month decline as ~35-40%.

However Bonds will be interesting over the next 2 years as interest rates should be rising.

 

[Random Painted HIghway]

I doubt anyone responding right now is at a point in their life where the ups and downs of their retirement plan is meaningful.

What about 529s?

 

[reKon]

Should be divesting from riskier positions as much as possible. You are describing something that happened to a lot of people in 2008 and they had no choice but to get out at the bottom.

Pretty much. If you are retiring in 4 years then you should be pretty bond heavy, I would imagine. At least I would be. I'm a chicken.

Ok, I just looked it up and it's 70 1/2 when she must start withdrawing. But I'm guessing that she will be forced retire around that 65 mark.

 

[Mikey Jr.]

Obama gets zero credit for Dow 6000 to 18000.

Trump gets credit for dow 20000. LOL

Reverse affirmative action.

I think it's more the fact that everyone thought America Would implode on itself.

 

[Pomerlaw]

So Trump's popularity is going to go way up?

Even worse than a crash.

 

[Ac30]

I think it's more the fact that everyone thought America Would implode on itself.

It's been 5 days, lol. And even then, they haven't exactly been promising in the slightest.

 

[KrellRell]

Look not everybody can invest, but majority can if they make some sacrifices. Where i work which is boeing/defense as a technician i make the same salary as my peers and they seem to never have money nor be able to save money and never want to do overtime. Then they think im doing something illegal on the side because i have more then them. But these are the ppl who go out to bars/ have adventures, go on vacation all the time and buy small electronics all the time. I never go out to lunch and barely go on vacation and live a humble but boring lifestyle and worked 600 hours of ot last year, and invested any extra money i could for the last 10 years and is finally paying off and next year i should be able to start a flight school business. It really saddens me when people feel so hopeless they dont even have motivation to try. Before boeing i was target backroom for a year and best buy inventory stock for year and half, and alot of them lost all hope to move on.

A great story, and the absolute biggest misconception of investing is "I don't have enough money". You don't need a lot of money, the entire point is small amounts of long periods of time. Not like you gotta drop 10k in stocks then sell it in a week, this isn't day trading - it's investing.

 

[rochet]

If ppl have problems with ceo pay then they should reverse what bill clinton did. Planet money 682 when ceo pay exploded. Eliminate call options for ceo's.

Look i believe there are time when ppl need to be more republic and other time be more democratic, time for taxes to go up and times for it to go down. The economy/world economy is too dynamic to be on one side all the time. And some how this whole debate has turn into who is on winning side and losing side and thats sad. Its not about.

This might sound silly but try and play the old sim city with no changes in policy and see how far u get. It a good toy economy. Also listen to planet money toy economy with the story of babystitting and the german prison camp.

 

[Ogodei]

waiting for that "i told you so" moment is going to take a while huh

now imagine the economy does well the entire 4 years

Aye, however much outrage there is, it'll be hard to dislodge an incumbent with a booming economy under his belt.

Impending trade war would take a lot of the wind out of those sails. Right now the market is projecting their fantasies of a right-wing government, not the realities that will come around.

 

[Linkura]

This isn't going to stay this way for long. Once his new policies to ruin the economy kick in, it's fucked.

 

[bebop242]

Seen a couple Trump supporters gloat about this on FB. I mean its great and all but just seems terribly short sighted.

 

[tuxfool]

Seen a couple Yrump supporters gloat about this on FB. I mean its great and all but just seems terribly short sighted.

I bet they were all crowing about the time the Dow hit an all time high during Obama's term...

 

[Ron Mexico]

My God some of what I'm reading here.

The market is up because rates are still artificially low. Look, I said it before and I'll say it again-- I didn't vote for the prick but this was going to happen regardless. Fed funds have been at record and then near-record lows for ages. The increase in December didn't even make investors flinch. The money was going to go somewhere and guess what? It still is.

Seriously, you guys need to go out for a breath of fresh air or something. Or don't. This is how day traders and wannabees take a real bath in a hurry.

I try to stay out of the majority of the political threads, but holy shit. Here's another hot tip: holding on to Dodd-Frank for dear life isn't going to do what you want it to either.

 

[Randam]

Woohoo.
Time to raise national wages.

 

[Captain Tuttle]

Planet Money did a podcast on it.


tl;dr: It won't matter to you personally.

Unless you own an ETF that tracks the Dow

 

[Rentahamster]

12,000 or so of those points were under President Obama, I think? Thanks Obama. The Dow is fine in certain aspects as a metric for economic status. Give Obama credit for that, jeez. It's nice to see Trump taking the ball and at least running in a positive direction for now. Will he fumble? Time will tell.

lol at the talk about shorting stocks now. As if you can pick which ones will tank. Unless you had inside info on which company Trump will shittalk next.

As long as Trump still has good PR victories in the economic sphere and that headlines include phrases like "building factories in the US", the positive trend will continue. People don't actually have to have more money, they just need to think they do. We're dumb like that.

 

[Rentahamster]

http://fortune.com/2016/07/20/americans-happier-at-work-study/

• Unemployment is very low
• Stock Markets are at all time highs
• Housing prices have recovered
• Most people are happy in their jobs
  [*]No current wars

Yet all the credit will probably go to Trump instead of Obama because Democrats suck at messaging

No current wars?

http://www.independent.co.uk/news/w...akistan-middle-east-afghanistan-a7534851.html

 

[Prototype]

What does this really mean? The value of the dollar is lower then it's been in the past when the DOW was also lower. This is pretty meaningless.

 

[Unknown Soldier]

It's only been less than a week and America is already great again!

 

[Imperfected]

No current wars?

http://www.independent.co.uk/news/w...akistan-middle-east-afghanistan-a7534851.html

That's just fiscally responsible reduction of surplus bombs to prevent stockpiling costs.

 

[Damaniel]

And the people holding the other 50% benefit from this as well.

Typical libertarian claptrap. The bottom 50% own almost none of that stock, and will be disproportionally screwed over by the elimination of all the pesky regulations that supposedly keep us from Making America Great Again™. It's easy for people with a 401k to look down on people who will be forced to rely on a Social Security system that won't even be around by the time they need it, all the while being screwed over by people at the top who have disproportionate and exclusive access to the most profitable financial instruments (like initial crack at desirable IPOs, for example).

The system is far too fair to the top 1% and not fair enough to the bottom 80%. I wouldn't expect a libertarian to care about that though.

 

[Unknown Soldier]

2% of Americans hold 50% of investments.

Someone gotta tell the other 98% about the bootstraps

 

[Rentahamster]

Someone gotta tell the other 98% about the bootstraps

I have $100 worth of bootstraps in savings, hidden inside my mattress.

 

[Ovid]

I do, it still doesn't matter much.

If people really want to look at the DOW with any sense beyond 'wow 20k as a milestone' then it would make sense to look at the velocity the DOW hit 20,000 from 19,000 (compared to 18,000 to 19,000). I'm not arguing that the DOW is not a good proxy to the overall equity markets, but the DOW itself hitting 20,000 is basically like any other day when the DOW goes up, it was expected to go up, it's not some shocking turn of events.

AT BEST the DOW hitting 20k spurs more confidence but it all the same S/P has been steady, high sure, but steady. As other people have mentioned we've been riding high for years now.

Considering where we were in 2008-09, it's a milestone.

Other than that, yes, the number 20,000 itself is no different from 19,999.

I remember being in the stock thread during the panic and getting to where we are today was a bit unimaginable.

 

[killer rin]

Gotta ring every last bit of cash out of the system before it all comes crashing down again.

 

[Mulgrok]

It's like the republicans forget that deregulation leads to a more volatile market. The highs will be higher, but the lows will be lower. Regulation helps to keep things flowing smoothly.

Get ready for the greatest depression.

 

[oxidax]

I'm glad he thinks he helped the market get to 20k, but we all know that when the next recession hits, he'll blame everything on Obama and/or anyone but himself.

.

 

[Randolph Freelander]

The market is up? Cool. Keep investing.

If the market goes down? Cool. Keep investing.

Take advantage of your 401Ks and IRAs. If you don't have one, start one.

This is concerning to me because mother 60 now is likely to retire in the next 4-5 years. I know that we're going to be the ones to help support her at this point as she doesn't have enough in her 401K to support her very long. A perfectly timed crash right before she takes has to withdraw would be infuriating and would make things much harder for me as I'm trying to keep moving in my career (I'm trying to wipe out my remaining student debt in 3 years).

If she's retiring within 5 years, she needs to be in an appropriate target date fund, particularly if she doesn't want (or know how) to manage a portfolio. Vanguard's 2020 or 2025 fund would be appropriate, and each will have a significant allocation in bonds (2020 more than 2025). If the market tumbles, the impact on her savings will be lessened.

 

[hydrophilic attack]

the owner class is generally happy during fascist rule

 

[Kayhan]

thingsarelookingprettygood.gif

 

[kvn]

Clueless people caring about this and reacting in all the wrong ways, lol. This is a terrible terribly calculated index that has no meaning at all.

 

[Huw_Dawson]

Rather than saying this is bad because Trump, say that this proves how good Obama's economic policies were.

Trump's not started any serious insanity regarding the economy yet (i.e. trade wars) so take this good news for what it is, America.

 

[Ron Mexico]

The market is up? Cool. Keep investing.

If the market goes down? Cool. Keep investing.

Take advantage of your 401Ks and IRAs. If you don't have one, start one.

.

And while I would disagree that the Dow has no meaning at all, it's definitely an imperfect measure.

I also love the "all deregulation is bad" idea. Know how we got to "Too big to fail?" Here's a hint: compliance with bloated regulations is expensive. Know who can afford that, who has the scope? Yep. Wells, BoA, Citi, Chase.

Rather than saying this is bad because Trump, say that this proves how strong the Fed was suppressing interest rates.

Trump's not started any serious insanity regarding the economy yet (i.e. trade wars) so take this good news for what it is, America.

Fixed. Not to say it wasn't Obama's influence at all-- there was (and justifiably so imo) but this market is the Fed, the whole Fed and nothing but the Fed.

 

[Lasthope106]

And yet my 401k doesn't seem to be affected by any of these gains.

 

[LookAtMeGo]

without any disruptions to global trade eh? Good luck.

 

[Real Hero]

the 80''s are back baby

kill kill kill the poor

 

[Randolph Freelander]

And yet my 401k doesn't seem to be affected by any of these gains.

Your 401k is terribly allocated.

(Granted, that might not be entirely your fault. It's possible your plan only has bad options.)

 

[Ponn]

"Trump is making us richer motherfuckers!"

 

[Setzer]

Congratulations to Trump and his adminstration. Things have already improved since he was inaugurated.

Yep

 

[Blader]

This particular news is pretty much universally positive. It will of course be bad for lower income people in the inevitable crash that will come.

How in the world is it positive for the millions of people who have zero stock portfolios? Many of whom are working-class whites who voted for Trump?

 

[dopplr]

This makes sense. Imagine the US, having more companies than ever coming back and investing since it's so cheap due to all the regulations Trump is cutting. The market looks extremely bright for shareholders. Now let's think about that for a bit though, AI and Robots and coming in at an increasing rate, that means yes, it's cheaper to run your company in the US, but further - your costs are now way down due to the ever expanding inclusion of AI/Robots. Who the hell wouldn't want to invest in the US right now?

Issue is - what happens to the rest of the people when everything has gone to shit.

Just my opinion, apologize if I am offbase with this train of thought.

 

[tuxfool]

Who the hell wouldn't want to invest in the US right now?

People that are planning to export or rely on imports with other countries.

 

[voodoojohn]

What does this really mean? The value of the dollar is lower then it's been in the past when the DOW was also lower. This is pretty meaningless.

IMO, you're right on point. Genuine wealth creation in the industrialized world has ceased. The government has allowed its currency to deteriorate in value to create the illusion of growth, hoping that this will boost consumer confidence, increase business spending, and kickstart genuine growth again. This will not happen since the financial markets yield greater returns for corporates than investing in the real economy would. It seems inevitable that Western companies will be picked apart by Asian peers who will have (billions of) healthy household balance sheets and strengthening currencies supporting them.

I'm no expert, but this is my best attempt at making sense of this crazy state of affairs.

 

[rokkerkory]

thanks obama

 

[Staccat0]

I don't give a fuck about money, I just want a future for my children...

Basically

 

[gcubed]

this is all built on fantasy and dreams. you better hope he does infrastructure investment and corporate tax relief soon or this is going to all come crashing down... hard

but he's too busy taking money from womens programs, the UN and putting a wall up

 

[Javaman]

This is concerning to me because mother 60 now is likely to retire in the next 4-5 years. I know that we're going to be the ones to help support her at this point as she doesn't have enough in her 401K to support her very long. A perfectly timed crash right before she takes has to withdraw would be infuriating and would make things much harder for me as I'm trying to keep moving in my career (I'm trying to wipe out my remaining student debt in 3 years).

If she's that close to retirement age should have more stable investments like bonds then stocks and be less affected by the ebbs and flows of the stock market.

 

[qcf x2]

It's going to surge a lot higher and then plummet severely in about 2 yrs when the wave of repercussions from other countries who start following similar extreme-isolationist practices begins to reach us. If you're thinking about jumping in, tread extremely carefully.

The money will circulate more within our borders at first, but yeah, that roller coaster is going to be like the tower of terror.

 

[KyanMehwulfe]

this is all built on fantasy and dreams. you better hope he does infrastructure investment and corporate tax relief soon or this is going to all come crashing down... hard

the tax cuts and regulation cuts are pretty certain if his early rate of executive action is any indication...

and it's going to rather radically transform net income for US corporations. not just an improvement but a continental shift.

not only that but if he promotes spending record cash piles and overseas repatriation (through said tax cuts/import taxes and regulation cuts) where suddenly new CAPEX/financial instruments/etc have huge regulation expense cuts and much smaller tax bills on top of the influx of cash, it could be like 1980s animal spirits.

(while destroying consumer protection, environmental protection, etc in a much worse way lol)

the big wildcard is the anti-China stuff but even that, he's already hinted at the USD being too strong, I could see him using anti-trade (and purposefully trying to get countries like China to sell US debt) on purpose to weaken USD demand so that it's even cheaper to invest in the US, repatriate money back to the US, buy imports from the US, etc.

 

[teh_pwn]

It's short term reactions on a market that was already good. Long term effects of the policies coming out will probably lead to malinvestment and lowered productivity.