If Only They Hadn't Sold!

**tomcat** · 09-03-2019, 07:18 AM

...having already annuitized my pension, I just sat back and watched the excitement:

This stock market hit rock bottom 10 years ago. Here's how much a $10,000 investment then would be worth today

by Ian Salisbury (Money)

This Saturday is a big day for the stock market, as it marks the 10th anniversary of one of the longest and most profitable bull runs in history.
Indeed, an investor who put $1 into a market tracking index fund on March 9, 2009 — the day the market hit what turned out to be it’s lowest point following the 2008 financial crisis — would have ended up with $4.99 by March 1, 2019, according to Morningstar. That means, $100 would net $499; $10,000 would be worth nearly $50,000, and $100,000 would be worth a cool half a million.

Barring a dramatic, unforeseen event like the 1987 stock market crash, the S&P 500 will have posted an average return of nearly 18%, each year, over the past decade, according to S&P Dow Jones Indices. To put that in context, the long-term historical average annual return, going back to the 1920s, is a hair above 10%.
Kicking yourself for not buying?

It may be hard to remember now, but back in 2009 most investors were actually terrified. In February 2009, President Obama signed a $787 billion stimulus package. Within months, both Chrysler and GM would go bankrupt. In October, unemployment would peak at 10%.

Statistics suggests that a decade ago most of us were selling rather than buying. Between the start of the financial crisis in 2008 and 2017, Americans pulled $830 billion out of stock mutual funds on a net basis, while pouring nearly $1.4 trillion into less volatile bond funds. In other words, investors missed out on billions, if not trillions, in gains they might have reaped.
The real lesson of the stock market’s incredible 10-year run is not to imagine the riches you could have had if you’d bought an the precise right moment, fun as that might be.
Instead it’s to remember that, even in the darkest times, the market will eventually snap back. If you panic and sell, you could miss the upside.

**baldrick** · 09-03-2019, 07:28 AM

Originally Posted by tomcat

President Obama

it was all his fault

**TizMe** · 09-03-2019, 09:33 AM

Just waiting for a Trumptard to show a graph of a 2 month period that surpasses another 2 month period under Obama.

**Texpat** · 09-03-2019, 11:00 AM

Waiting for the tales-of-woe of O'Bobo sycophants who sold-up and moved abroad because the election of Donald J. Trump, President of the United States of America, was going to spell economic ruin for the country.

Oh wait.

Nobody moved. The economy is soaring.

MAGA.

And yes, Bobo was full of shit.

**AntRobertson** · 09-03-2019, 11:05 AM

Says the man that lives abroad and survives off government benefits.

**HuangLao** · 09-03-2019, 05:35 PM

Suckers....

**uncle junior** · 09-03-2019, 05:43 PM

yeah, and if i bought a different set of numbers last week i'd be a billionaire this week

**tomcat** · 09-03-2019, 06:24 PM

...^not quite the same thing, is it...a buy-and-hold stock strategy beats lottery guesses every time...

**Dragonfly** · 09-03-2019, 06:50 PM

Originally Posted by Texpat

And yes, Bobo was full of shit.

indeed, he was a bit. But he was such an elegant SOB, and a great speaker

too bad he couldn't deliver shit and was ineffective in implementing his policies

great man, poor implementation of his ideas

**uncle junior** · 09-03-2019, 07:57 PM

Originally Posted by tomcat

...^not quite the same thing, is it...a buy-and-hold stock strategy beats lottery guesses every time...

same shoulda coulda woulda if you didn't hold and are looking back.....

**SKkin** · 09-03-2019, 09:25 PM

Originally Posted by tomcat

Indeed, an investor who put $1 into a market tracking index fund on March 9, 2009 — the day the market hit what turned out to be it’s lowest point following the 2008 financial crisis — would have ended up with $4.99 by March 1, 2019, according to Morningstar. That means, $100 would net $499; $10,000 would be worth nearly $50,000, and $100,000 would be worth a cool half a million.

Cool...so you'd have a lot more of something($) that's worth less than it was 10 years ago. As in $ devaluation. Plus the risks involved in playing in a rigged casino.

I'm impressed.

**Texpat** · 09-03-2019, 09:40 PM

worth less than it was 10 years ago

Aside from fresh fruits and vegetables, what do you have that devalues at anywhere near 18% annually for 10 years running?

**jabir** · 10-03-2019, 01:29 AM

Originally Posted by tomcat

...^not quite the same thing, is it...a buy-and-hold stock strategy beats lottery guesses every time...

Yes, buy and hold, and if it's a solid stock but drops further then buy more, they're shaking the tree.

**tomcat** · 10-03-2019, 06:23 AM

Originally Posted by jabir

Yes, buy and hold, and if it's a solid stock but drops further then buy more

..."buy the dip" is another popular way to build wealth with stocks...I used both investing strategies successfully to grow the stock portion of my retirement portfolio...

**Jack meoff** · 10-03-2019, 06:35 AM

Don't waste any profits on rabbit food pizzas

Remember salad is alway on your side.

**tomcat** · 10-03-2019, 07:30 AM

Originally Posted by Jack meoff

Don't waste any profits on rabbit food pizzas

...agree: always reinvest stock dividends (particularly in Total Return-type mutual funds)...the third leg of the investment stool...

**Chittychangchang** · 10-03-2019, 08:08 AM

The morning star?
Any good for lighting barbies..

**fishlocker** · 10-03-2019, 08:42 AM

Yes, remember '09 well. Watching each day as stock values were spiralling down. Fortunately for me I got my head around the game knowing damn well never to sell on the way down as those downturns were large and rapid.

Locking in at a loss is never an option in my mind. But then you have the thoughts that over time your still up comparatively and something is better than nothing. It's a mind bender that many naturally, due to human nature and
social conditioning, cash out.

I'm just glad I held on, though it is very unnerving to see your life's saving get slashed in half or more.

Now I don’t know any of you folks but I hope you didn't sell
at the bottom. Or loose your job or your house. Many did as they like Lehman Brothers were way over leveraged.

Now I'm not the sharpest knife in the drawer but know that I like many people buy things, and subsequently owe more
than that object is worth. A new car on a loan, a home and so on.

The dagger for many were the home equity lines of credit and the banks willingness to let folks dive in way over their heads. Quite the mess when you couldn't sell your home for even half what you owed on it.

For many living beyond their means the only way out was bankruptcy and foreclosure.

Now the banks owned all those foreclosed properties meaning that now they are on the hook for the property taxes, utilities and maintenance. With the shoe on the other foot it sucked to be them now.

I could go on but you all know the story. Stocks are up, real estate is hot and we are ready to do it all over again.

Happy anniversary.

the fish.

**Chittychangchang** · 10-03-2019, 08:51 AM

It's a about time we had a new recession. ..

**tomcat** · 10-03-2019, 09:00 AM

Originally Posted by Chittychangchang

It's a about time we had a new recession. ..

...which, of course, will present a number of stock-buying opportunities...

**uncle junior** · 10-03-2019, 05:54 PM

Originally Posted by Chittychangchang

It's a about time we had a new recession. ..

potus is working on it

**OhOh** · 10-03-2019, 11:12 PM

Originally Posted by tomcat

If you panic and sell, you could miss the upside

Or lose all if you own Lehman Brothers, FOE.

Originally Posted by Texpat

The economy is soaring.

Based on future earnings or share buy backs bought with free money?

Originally Posted by tomcat

buy-and-hold stock strategy beats lottery guesses

If you buy the correct shares vs buying the correct lottery number?

Originally Posted by Texpat

you have that devalues at anywhere near 18% annually for 10 years running

Lehman Brothers shares, buggy whips manufacturers shares........

Originally Posted by jabir

Yes, buy and hold, and if it's a solid stock but drops further then buy more, they're shaking the tree.

Except Lehman Brothers.

Originally Posted by fishlocker

Stocks are up, real estate is hot and we are ready to do it all over again.

Stocks, real estate are up today? What are today's "valuations" true or false?

Originally Posted by tomcat

will present a number of stock-buying opportunities

For every buyer and holder there is a seller and a speculator.

Tis a pity most households can't run to a 500 dollar/pound emergency without more on the credit card.

But as everybody here is saying, none of us have ever lost in the casino or stock market.

**uncle junior** · 11-03-2019, 08:54 AM

Originally Posted by OhOh

For every buyer and holder there is a seller and a speculator.

must've missed that day in investment class

**fishlocker** · 11-03-2019, 09:45 AM

I bought Strong funds years ago. Turned out old Dick Strong got convicted of some sort of after hours scheme and things went to pot for him. I forgot the details but I didn't really make a lot off the holdings as I recall at the time the news broke. I jumped ship and never looked back.

Had some Harly Davidson, I should have rode that longer.
Had some First Star bank. They were purchased by US Bank. I don’t even look at it anymore though it's there.

The only time I really got burned was when I speculated on Sentry liquefied petroleum. They were buying mineral rights to mine in Australia as I recall. I got in early watched it rise untill they fell to their demise. Lucky it was only fun money I was playing with. Water over the damn, Que Sera Sera. Win some loose some. At least I was in the game.

**tomcat** · 11-03-2019, 10:00 AM

Originally Posted by fishlocker

At least I was in the game

...and a game it was: not an investment strategy to secure future income...

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