Wednesday, March 1, 2017

Who is benefiting from the Stock market rise worldwide?

The upper middle Class and Rich worldwide.

Why are this group investing and the rest not?

Because there is just so much risk attached to investing in the stock market right now that you cannot invest unless you can actually survive without the money you have invested.

Most stock investors already have a diverse portfolio that has land, jewelry, stocks, bonds and other investments nationwide or worldwide. Because if you are not in a diverse investment situation then you are very vulnerable to the incredible swings in the market right now whether they are up or down.

Trump talks about the new Trillions of dollars in the stock market in value since he was elected. Well, that could all be completely wiped out in one day if North Korea nuked Japan,Hawaii or California!

It could theoretically go back to what it was in 2009 at 6900 or even lower than that if panic sets in worldwide.

So, one way to look at all this is that it is a bubble of hope by people who don't care about the ecology or whether people are going to die worldwide from these investments. But, it is equally likely that North Korea or some other country or terrorist group is going to explode the stock market any day now.

However, remember if you are a long term investor it might return to 21,000 within a month also. So, selling when it drops is what fools generally do if you study the long term dynamics of the stock market since 1929 or 1930.

However, once again you have to be able to live without your investments in the stock market while the market recovers each time. But, if you think about when it dropped to 6900 in the Great Recession in 2009 and stayed with your investments until now you have now tripled your investments. So, for example, if you had invested 10,000 dollars the day the stock market dropped that money would now be worth 30,000 dollars or more. Something to think about! And the same would be true of 1 million dollars which would now be worth 3 million dollars.Something to think about! However, tomorrow if a nuke goes off it could drop to 6900 or lower. Also, something to think about!

No comments: