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starbucks4ever (97.42)

Another idiot of the day

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October 05, 2009 – Comments (9)

A special note for IQ-challenged AP business writers. Housing index is above the historical trendline. Stock valuations are above the historical trendline. End of story. 

 ----------------------------------------------------------------------  http://news.yahoo.com/s/ap/20091005/ap_on_bi_ge/us_meltdown_generation_gap

9 Comments – Post Your Own

#1) On October 05, 2009 at 11:23 PM, ResearchLover (42.05) wrote:

I'm following my gut to suggest that the historical trendline does not consider foreign (particularly developing nation's) investment in US real estate and equities markets skyrocketing...  I don't have the data to back that up, but that could explain it. No?

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#2) On October 05, 2009 at 11:27 PM, starbucks4ever (97.42) wrote:

ResearchLover ,

So how do we reproduce baby-boomers' returns by investing at this price point? Buy now and hope for some more investment from Mars? 

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#3) On October 05, 2009 at 11:58 PM, ResearchLover (42.05) wrote:

If the dollar keeps losing value, it's inevitable... ?

http://www.rcanalytics.com/reports/free_report_Global.pdf 

But seriously, no. Just anticipate what p11 of this report will look like in a year, and buy the right REIT, or other asset class.  (It looks like Brazil may have presented some value for real estate investment in 2007-08).  So if the above is true, you could bet on countries with the natural resources to maintain the value of their currency.  Like water, the value of those assets will temporarily "pool" wherever stable currency outflow is greatest.  Anticipate the next major Chinese government outlay (of $ from interest on American debt), and invest there, thereby (re)importing the exported value.  In fact, by this logic, that should be the next American stimulus.

 No, but really...

 

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#4) On October 06, 2009 at 12:25 AM, KamranatUCLA (29.11) wrote:

Wow so many great minds work the same.

When I  saw that article I was going to talk about it and copy and paste it here just like you did. It angered me soooooo much because I am in my 30s and that article is a BIG joke!!!!

Is this suppose to be a lame attepmt by the media (big corporations) to get into the pocket of the already broke young people???!!

Yeah...such a smart article...lets all stop drinking coffee and stop eating and put few dollars to buy stocks and we'll get rich...I think if I stop spending money on starbucks that would be like 600 bucks a year and...umm lets see...and invest that in stocks. Wow even if stocks triple (Dow at 24,000!!!) I make $1800!!!

I can not believe Yahoo has put that on their front page...shows you how stupid theyt are and think we are and it shows you how U.S. corporations are running this country to ground.

Young people I know that are even younger than me have no money, no good education, are in debt from student loans and credit cards, have to pay back taxes from part-time jobs they had, their future is taxed by the bail-out, and meanwhile U.S. corporations are still investing more capital in China in forms of all sort of factories than here!  Oh yeah....I forgot and we have a 9 year war going in Afghansitan and Iraq with no end in sight.....but hey don't be a pessimist...put that $1.75 you spend on buying coffee in stocks...oh but wait..don't they charge you 10 bucks for a trade??

from what I care houses could go even 75% lower. With young people in Iraq and Afghanistan and young people here with student loan debts and massive interests they pay on that and with back taxes and interest and penalty they pay on that and credit cards getting the last penny out of them...do you think a young guy is even remotly thinking to buy a house???!!!

and more corporations are going bankrupt: Frontier airlines: busted, EPEX and oil and natural gas company: Busted....Those 2 companies were in my portfolion and I lost like 2000 dollars...i think I should just have bought more coffee or something.

This yahoo post by AP was the biggest joke ever and I can't believe someone got paid to write that piece of crap. He or she should be sued for angering so many of us.

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#5) On October 06, 2009 at 12:56 AM, starbucks4ever (97.42) wrote:

It's important not to cut off your nose to spite your face. Like it or not, buying assets even at these prices IS the best choice we have. He who thinks otherwise will be the next idiot of the day. But to suggest that we should feel greatful to the baby boomers for this "incredible opportunity"...

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#6) On October 06, 2009 at 1:10 AM, truthisntstupid (87.09) wrote:

Dontbuydontbuydontbuy

Iwill Iwill Iwill.

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#7) On October 06, 2009 at 1:26 AM, starbucks4ever (97.42) wrote:

 truthisntstupid, 

A lame witticism. One has to play the cards he's got and play them the best he can.

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#8) On October 06, 2009 at 8:48 AM, dudemonkey (40.43) wrote:

So how do we reproduce baby-boomers' returns by investing at this price point? Buy now and hope for some more investment from Mars?

I don't think that we, as a generation, can.  They mortgaged our future to finance their consumption.  That's catching up to us all now and investors who focus entirely on the US should not expect another big 20 year bull market of the magnitude that we saw from 1980-2000. 

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#9) On October 06, 2009 at 8:55 AM, dudemonkey (40.43) wrote:

Yes, housing is not great, it may go down.  Yes, we may be at a local high in terms of stocks.

However, it's fairly rational to expect that history will prove the author of this article right.  If you buy shares in good companies when they're on sale (and there are still many good companies trading at decent discounts to their intrinsic value) and hold them for a couple of decades, good things are likely to happen to you. 

I suspect that this next decade will be very fertile ground for planting seeds.

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