Yep...came back in '87, came back after Dot Bomb, came back after mortgage meltdown... The only ones really stuck at the moment are those who needed those funds RIGHT NOW for retirement purposes...those who still have 10+ years to go are in good shape even with $15-20K hits to their portfolio. This becomes even more accurate for those who put money into mutual funds and not individual stocks.
Anyone close to retirement should not have a lot in stocks, IMO not more than 50%, although that will vary depending on one's circumstances. Any money you need RIGHT NOW should only be in cash, or maybe short term bond funds. Of course these are just my opinions.
The biggest thing with investment is not panicking when the markets experience a correction. It can be tempting to cash out during a downturn just to stop the bleeding, but in the long run, that just means you're buying high and selling low, which is obviously bad. Honestly one financial book I read suggested an indifferent approach to investment. It said review it like once a year, make changes where appropriate, and then just let it do it's thing. The North American markets have averaged decent returns over the last few decades, so as long as you stick it out for the long run, you should do ok. Of course, that's easy for me to say at 21, when my retirement is decades away and I don't need the money now. I get that.
Totally agree and I fucken despise ppl who sell at every bump, it just drags down the stock price Never too <del></del>early to start a retirement fund tho
Real estate is the way to go, imo. Buy cheap fixer uppers, rent them out, pay the loan asap, when the market is right sell and buy more.... It's worked well for me and nobody has made any money off them (brokers) except me.... Stock market and other cash investment vehicles are too rigged for me.....
We've done pretty good with real estate also. We're looking right now for another investment rental. Unfortunately, being on the west coast, even fixer uppers ain't cheap.
we have a huge housing bubble here and everyone knows it. It's funny when you see the bubble, you feel the bubble and you know it's going to pop. It's all caused by excessive bureaucracy meanwhile the gov is talking about building a whole new city... and who's going to pay for it
I'm lucky that I've developed the skills to do all the work on them myself...I shy away from stuff that has major problems that would require permits and contractors.
Here in B.C. in some cities the building regulations are just retarded. I learned that when I worked for my cousin, helping him renovate a place for him and his new wife and baby. We intended to start in March, but various delays and red tape made it so we started in November and had to work through the winter, which was annoying. Not to mention it cost him thousands for essentially no service to him, basically just another tax. At least where I live, I definitely wouldn't try to make money in real estate. I've heard too many reno horror stories.
It's true, sometimes there's more blood, sweat and tears going in than there is equity coming out. That's when it sucks.
Yup, never get involved in anything that needs more than a superficial do-over or a toilet or sink....if there are obvious problems like rotten wood, termite damage, mold etc.....stay away.