Are we are LONG on Short Term thinking?

[Chuckanut]

I have been browsing a number of articles concerning how the retired and soon-to-be retireed should deal with the stock market events of the past few weeks. They are in various issues of the financial press.

My impression is that they all seem to be written from a very short term point of view. The implication is that low interest rates will continue for decades, as will volatile markets that plung down more often than moving up. Am I imagining this bias?

Where is the long view? Whatever happened to staying the course, or making a few minor corrections? Certainly, with interest rates at historic lows, one can be excused for taking a WR of 3% instead of 4% and cutting spending accordingly. But, suddenly these guys are advising, dumping those risky stocks, and buying fixed annuities, moving most money to guanteed CD's and treasury bonds, etc.

It seems we are in the grips of a real herd mentality when it comes to the financial press. Today, after volatile down days, we are advised to move into CD's, treasuries, and high dividend stocks. (Why didn't these experts tell us that BEFORE the market gave back most of its yearly gains?) When the market was going up earlier in the year we were told to have a good portion in growth stocks or market indexes so as to keep up with inflation. This financial press seems to operate on the flavor of the day approach.

Your thoughts?

[GregLee]

So far as I know, everyone agrees with the buy low/sell high strategy. And since stocks are low and bonds are high, it seems obvious what to do (if anything).

[REWahoo]

Quote:

Originally Posted by Chuckanut It seems we are in the grips of a real herd mentality when it comes to the financial press.

Staying the course is boring and been done. Panic, gloom & doom, and calls for an alien invasion make headlines and pumps up readership. Nothing new here.

[Chuckanut]

OK, so I read an article that tells us we should have already moved most of our money out of stock to more stable investments before this all started. GREAT! But, the article does not tell us how to build a time machine, NOT SO GREAT!

Well, I found the directions on how to build a time machine on the Internet. Build Your Own Time Machine: Science Channel

But, unfortunately, the author does not define the word 'most'. Is that over 50%, 60%, 80%?? We don't know. So I will define it myself to be 75%. The same source about 8 months ago told us that we need a significant amount of money in stocks to avoid being the victims of inflation. So, I guess I will have to sell a majority of my holding in stocks (after they have given up the year's gains) and buy bond's (at historic highs) and CD's ( at historic low interest rates.) I am so thankful for this advice.

[Brett_Cameron]

Quote:

Originally Posted by Chuckanut ... Well, I found the directions on how to build a time machine on the Internet. Build Your Own Time Machine: Science Channel ....

[Coolius]

Quote:

Originally Posted by Chuckanut OK, so I read an article that tells us we should have already moved most of our money out of stock to more stable investments before this all started. GREAT! But, the article does not tell us how to build a time machine, NOT SO GREAT! Well, I found the directions on how to build a time machine on the Internet. Build Your Own Time Machine: Science Channel But, unfortunately, the author does not define the word 'most'. Is that over 50%, 60%, 80%?? We don't know. So I will define it myself to be 75%. The same source about 8 months ago told us that we need a significant amount of money in stocks to avoid being the victims of inflation. So, I guess I will have to sell a majority of my holding in stocks (after they have given up the year's gains) and buy bond's (at historic highs) and CD's ( at historic low interest rates.) I am so thankful for this advice.

Yes, the very best articles on investment are written with the full benefit of hindsight. I am sure it has never failed the authors.

I get kind of amused when I read Seeking Alpha; there are articles advising to buy a particular stock, followed by another article that says to dump it - sometimes both articles coming out on the same day.

I now look at sites like SA and Motley Fool, to determine what I should NOT do.