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abitare (99.44)

Talking to Your BabyBoomer about the Nikkei

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January 30, 2009 – Comments (4)

Americans are told plenty of stupid lies about the stock and real estate market...lowering rates to zero, printing tons of money, easy credit, increase/decreased savings, increasing productivity, increased or decreased consumption, increasing education, buy and hold, blah, blah will sent the stock market higher.

Lucky the Japanesse have already tried most of this.

Take a look at the Nikkei after 20 years. 

http://finance.yahoo.com/q/bc?s=%5EN225&t=my

Babyboomers planning on a higher stock and real estate market to retire better have a plan B and better "keep it real" as to what the long term rate of return will be.

For the young, job skills, luck (create your own), hard work, starting your own business and savings will determine your future. Getting rich off a market that goes sideways is tough. We will run out of "greater fools" at some point and people will at some will stay outside of this game. Under high taxes and socialism the only way to get ahead is work for cash and have your own business.

Some classic Babyboomer Jim Cramer here

4 Comments – Post Your Own

#1) On January 30, 2009 at 12:22 AM, JGus (29.49) wrote:

Another awesome post, Abitare! Being in my early 30's, I've actually thought a lot about whether the markets really are the best place to invest for retirement. I don't know of many good alternatives, but I'm also not foolish enough to buy the "9% annual rate of return" over the long haul. We live in very interesting times!

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#2) On January 30, 2009 at 1:22 AM, DemonDoug (98.95) wrote:

It's so hard to know what the future holds, but the Nikkei return over the past 20 years is a lesson that you have to really look at.  To me, 1990 in Japan looks very much like 2000 in the US... with multiyear bull rallies and everything. This is a big reason I've decided that trading is a better way to make money nowadays than LTBH, I see another 10 years of stangant to decreased stock prices unless high/hyperinflation takes hold.

Cramer was right - firms did go out of business.  then again so was specbear, who called it before almost everyone else I've read.

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#3) On January 30, 2009 at 9:01 AM, djemonk (< 20) wrote:

Being in my early 30's, I've actually thought a lot about whether the markets really are the best place to invest for retirement.

It's still a good place to be.  You're thinking much shorter-term than you should be.  You and I are both in our early 30s, so we've got 20 to 30 years left until we retire.  Maybe more.  Over 30 years, the market will be an excellent place to be.  Same for 20.  Maybe not for 10, but we can be using this time to accumulate shares in excellent companies around the world while everyone else is looking for the next bubble.

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#4) On January 30, 2009 at 9:25 AM, goinglikesixty (< 20) wrote:

You idiots - not  Fools. Baby Boomers are roughly 40-60. Not senile, not imbeciles, not stupid. STFU.

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