Chuckanut
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
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?
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?
