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New York Stock Indexes Reach New Highs

posted by n1 on Tuesday August 16 2016, @01:53AM   Printer-friendly
from the money-for-nothing dept.

butthurt writes:

Reuters and Yahoo Finance report that the Dow 30 NASDAQ and S&P 500 stock indexes all reached record high levels on Monday. According to Yahoo this last occurred in 1999.

Reuters cited as possible factors speculation that the central bank will not soon raise interest rates, rising oil prices due to speculation that oil producers may cut production, and a Bureau of Labor Statistics report issued earlier in the month.

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  • (Score: 0) by Anonymous Coward on Tuesday August 16 2016, @11:28AM

    by Anonymous Coward on Tuesday August 16 2016, @11:28AM (#388638)

    The great thing about finance, is that is fairly simple math.

    Bonds have their place. The answer is you don't know where the market will be. If you stop buying right after a crash, it will take you a lot longer to recover. Run the numbers of buying right before, during, and after the great depression. Continuously buying works in that scenario too. Check out http://jlcollinsnh.com/stock-series/. [jlcollinsnh.com] The panic and fear from whatever just caused the crashes more often than not drives prices lower than they should be. Remember, you don't own tickers, you own businesses. As long as the businesses are profitable, you will continue to get dividends and/or capital appreciation. Stock indexes, especially total market indexes like VTSAX that buy every company on the exchanges, buy so money stocks that as long as the world economy is producing, you will be ok. Even if there is no economic growth and you are just reinvesting dividends, you will own more shares and get ever larger dividends.

    I do own the Vanguard Total Bond Market Index, Admiral shares because the debt I have is at a lower rate than the bonds produce. I could cash them out and pay the debt, but the bonds return more than the debt costs, so it makes more sense to keep the bonds than pay the debt. Why pay cash for a car, when I can put the cash in VBTLX at a higher rate than the interest on the loan?