Thoughts on the Stock Market and Social Security

Dow Jone Industrial Average

on Jan 20, 2001 when Bush was sworn in 10588

Adjusted for inflation thru 2006 12397

Closed Friday 13522

A real gain of 1125

For a percentage increase of 9% in 7 years

or 1.3% per year.

And Bush wants to "privatize" Social Security so all Americans can obtain such rewards ?

funds, or bonds that the big guys have decided to play around with, you get left holding the bag on worthless crap. Like if you happened to invest in real estate when the bubble popped or if you are currently holding bank stocks. With all the deregulation and ENRON bookkeeping now, it is almost impossible to know what you are getting.

You also have the uncomfortable knowledge that the inflation rate the government reports is fake, so in the real world you haven't really kept up with inflation.

I've bought a few stocks over the years and I've been lucky and made a few dollars for my retirement account. But what scares me about most small investors is that they forget they are lucky and begin to think they are good.

Years ago there use to be a game called "snipe hunting". That was when a group of men would take an uninitiated friend out hunting for snipes on a very cold and wet night. They would sit him down in a ditch and tell him to hold a sack open to catch the snipes they would run down the ditch to him. A few hours later the "bag holder" would be shivering and wondering what happened -- while his friends would be in a warm bar having a few drinks and laughing.

The present day "small investor" reminds me a lot of a guy being taken on a snipe hunt. The only difference is that his bag holding is no joke to the guys who sat him in the ditch. They take him seriously anytime they are in trouble and need a few dollars to bail themselves out. They know he can be depended on.

They are trying to entice him this morning. Anytime they want to dump some worthless stock, the small investor-snipe hunter is always there to help them out.

If you watch the stock ticker you can always feel his presence any time the market jumps up a few points for no good reason. Especially in a falling market. But somebody has to look after the rich folks and the small investor gets so much pleasure in doing so. You'd think one day he would learn.

An excellent line!

The same person could walk into a Vegas casino, place a bet on the roulette wheel, win and know full well it was because he was lucky. But let him score on a hundred shares of stock and he thinks he is another Warren Buffett or Diamond Jim Brady.

The biggest piece of advice that I (someone who's fairly competent when it comes to investing) can give someone is to automatically suspect an investment pitched to you, especially by a "financial advisor" or "account manager". Most of the time these people are just hawking what their company tells them to and they're little more than glorified salesmen.

Think about it. If "financial advisors" were so great at managing money and picking investments, why would they still have a job? Shouldn't they be living off their own money and investments?

that would be stupid.

Not adjusted for inflation, and and 2007 gain was estimated by extrapolation of midyear result.

I'd say that at best there has been no gain at all, most likely a loss.

This is just another stick-up by the rich and powerful.

"Tax the rich, feed the poor
Till there are no rich no more"

"I'd love to change the world" - Alvin Lee and 10 Years After

between some nice paying CDs (over 5%) and some old (tax-free until you cash them) I-bonds, I'm up about 40+% since the KING got in. :D

I was smart and sold what investments I had after the "inauguration". :puke:

Until I saw Atlanta real estate values nearly double in the past 10 years.

scares the piss out of me and I'm fearless

The RICH. And let's face it, the rich are the only ones who have been benefiting greatly by it. Now the rich want it all by throwing Social Security into the stock market, so the can really fuck the hell out of 'We The People.'