In the long run young investors will be rich.

[rescueme]

An aside: no one mentioned the end of the world is right around the corner?

In that case, there is nothing to discuss ...

 

[ronocnikral]

In that case, there is nothing to discuss ...

except how to spend your money so none of it is "left on table" come the end.

 

[rescueme]

except how to spend your money so none of it is "left on table" come the end.

That's not a problem, for me.

I would rather die with money than live without it. If any's left? So be it. There are others (and other organizations) that can do with my "excess" after I'm gone.

If I can continue to live the life in retirement (as I have been doing) with enough income/assets to achieve that goal, I don't care if anything is left. Money is for the living, not the dead...

 

[MichaelB]

So, just keep on investing and everything will work out well in the end? I wonder how much of that is plain old good luck, timing, and survival bias?

My advice to my children is to work hard and live beneath their means. Saving is much more important than investing.

 

[haha]

Any actionable advice to dodge these end-of-the-US as we know it predictions? If not I guess I'll stick to a diversified AA that includes 50% non-US equities...

DD

For someone with your skillset, it is really very simple. Never stop doing clinical work that maintains your skills, for money, not only for the benefit of mankind.

There is no substitute for earned income, especially income earned at highly skilled relatively scarce yet needed occupations.

Ha

 

[DblDoc]

For someone with your skillset, it is really very simple. Never stop doing clinical work that maintains your skills, for money, not only for the benefit of mankind.

There is no substitute for earned income, especially income earned at highly skilled relatively scarce yet needed occupations.

Ha

I've always figured I was good to go for the apocalypse. Physician skills, I can brew beer and we grow a lot of our own food.

DD

 

[MichaelB]

There is no substitute for earned income, especially income earned at highly skilled relatively scarce yet needed occupations.

Ha

Well said.

 

[jackontrack]

There is no substitute for earned income, especially income earned at highly skilled relatively scarce yet needed occupations.

Ha

I agree. I think about these things every day about all this "doom and gloom", which is largely based on some real facts. I am with the crowd that says that there WILL be an event or series of events that will totally change our relationship to our economy and all economies of the world for years to come.

With that said, I still contribute to long term investments, but I have found that the only solution that makes any sense is to learn skills that are and will be high in demand, that way you can weather the storm in bad times, and take advantage in good ones. Cover all bases.

 

[cloud]

And if you picked the 'wrong market' or were born at the 'wrong time'?

Nikkei 225 (Year opening price)
1984 - 9,927
1985 - 11,543
1986 - 13,054
1987 - 18,703
1988 - 21,551
1989 - 30,166
1990 - 38,922
1991 - 23,827
1992 - 23,031
1993 - 16,980
1994 - 17,422
1995 - 19,725
1996 - 19,946
1997 - 19,364
1998 - 15,269
1999 - 13,779
2000 - 18,937
2001 - 13,898
2002 - 10,631
2003 - 8,669
2004 - 10,787
2005 - 11,458
2006 - 16,294
2007 - 17,322
2008 - 15,155
2009 - 8,991
2010 - 10,609
2011 - 10,352


How did US returns 1880-1940 compare to 1950-2010?

A lot of this is luck and beyond our control. Maybe we'll get lucky in the stock market. Maybe we won't. So far the odds of broad index funds have been better than playing the lottery at least.

Bad example to use Japan, it's under deflationary pressure for long time. I am sure there's strategy on how to invest in deflationary economy.

Speculators depend on luck. Real investors do not depend on luck such as Benjamin Ghram, Warren Buffet, Peter Lynch. They depend on logic and business skills.

We can lose money by doing nothing.With 3% inflation, in 40 years, money will have only 30% of its original purchasing power. I might as well invest in something that grow faster than inflation by big margin. GIC, saving account can barely keep up with inflation after tax.

 

[DblDoc]

I agree. I think about these things every day about all this "doom and gloom", which is largely based on some real facts. I am with the crowd that says that there WILL be an event or series of events that will totally change our relationship to our economy and all economies of the world for years to come.

And that differs from all of recorded history how?

DD

 

[urn2bfree]

and as bad as that Japanese market looks, it does not reflect any gains from dividends that may have accrued. So as already mentioned with the erosion of inflation it still gotta be better to be in than out.