MSNBC and your money

[Big D]

What the market did last week doesn't matter. Buy index funds with low fees, hold them till you retire, re-invest all the dividends. Forget about trying to time the market and pick individual stocks, the stats say that over time, you will lose.

So forget about what the market is doing on a short term (or even annual) basis. Over time it's pretty much guaranteed to provide linear growth inline with what we've seen the last 100 years (8-12% annual average). Hoping for any more return than that is not investing, it is gambling.

The last time I did what the idiots on CNBC told me to do was in 1999/2000. I lost about 30k.

[fett]

Nope. Mutual funds and POS managers take anywhere from 1% to 3+% in fees each and every year. Up markets, it's no big deal. Down markets, it cuts into the "Real Return". In a "Bear Market" they get their fees and it doesn't matter to those guys whether you do well. It's all about "Fees" and any other BS costs they decide to include. I was a stockbroker for 12 years and a trust fund baby, very small, and those fees will eat you alive. I forgot, the fucking hedge fund guys and private equity assholes can take 5% off the top and 20%+ off of any profits.

[Big D]

Nope. Mutual funds and POS managers take anywhere from 1% to 3+% in fees each and every year. Up markets, it's no big deal. Down markets, it cuts into the "Real Return". In a "Bear Market" they get their fees and it doesn't matter to those guys whether you do well. It's all about "Fees" and any other BS costs they decide to include. I was a stockbroker for 12 years and a trust fund baby, very small, and those fees will eat you alive. I forgot, the fucking hedge fund guys and private equity assholes can take 5% off the top and 20%+ off of any profits.

Not sure if you're agreeing with me or not Fett. What I'm saying is buy Index funds with ultra low fees (e.g. Vanguard is something like 1/3 of 1%). Expenses and fees will kill you, that's why actively managed funds like the ones you refer to are a complete rip off for the consumer.

[Axewielder]

Beware the "Dead Cat" bounce.

You called it! I think the feline hit the pavement yesterday.

[fett]

Suckers You guys don't stand a chance. The big money has to keep you in the game. How else can they sell? You really need to read this to understand what the DJIA really means. You won't like it. http://www.fool.com/DDow/HistoryOfTheDow6.htm

[DonP]

I'm still in cash.

I remember those assholes talking when the NASDAQ was at 5000 and were asked "What's next? 4000 or 6000?" I lost $30K listening to those idiots.

[fett]

I started in 1978 as a stockbroker and could not do it. There is a "Rational Way" and the "Real Way". I chose the first and it cost me some big bucks. I was right there in the "87" crash. I was almost there, POS trust fund, to watch the Bear Market of the early '70's. I saw my Marin County home stagnate price-wise for 10 years. Anytime anything of value goes up or down, it's all perception and the expectation of the "Greater Fool" baling you out. You end up running out of "Fools". But who ends up holding the empty bag? Oh, I know

[fett]

Oh shit. I just heard the Fed being referred to as "The Lender of Last Resort". I haven't heard that in years.

[DonP]

My mom's been on a loosing streak lately. She plays the market like it's Vegas. Maybe I should get you too in contact?

Who knows, I could be heir to the fett guitar fortune LOL!

[Spivonious]

So Fett, do you think mortgage rates will go up or down in the next few weeks? They've gone up about half a point the past two weeks and I want to lock them in ASAP if they're going to go higher.

[fett]

Don't ask me. But, credit will be harder to get because with all the sub-prime fallout, banker's anus' are puckering up. So, if you are good to go don't worry too much about which way rates go.

[Spivonious]

Oh, you seem to have an understanding of how things work out there on Wall Street. I just figure if the market keeps going down, then maybe people will shift their money to mortgage bonds and my rates will go down?

[fett]

The cost of mortgage money is more a function of the access of money to loan and the amount of risk the lenders are willing to take. This whole sub-prime fiasco was started by the massive availability of funds. The mortgage bankers would write the loans and then sell them off ASAP. That reduced their risk so they loaned like there was no tomorrow. They got their loan fees and their money back to loan again. The buyers of those mortgages are getting burned big time in a lot of cases. They may stay gun shy for quite awhile. That's why I said what I said about being good to go.

[Spivonious]

Makes sense to me. I just emailed our banker and told him to lock in the rate. The check's in the mail Fett

On a sidenote, here's the house we're buying:

http://homes.realtor.com/prop/1085122498

[fett]

Do I get a prize?:ROTF: :ROTF: :ROTF: Damn!!!! I could buy that. I'll settle for the trailer next door.