Market Cycles of Bulls and Bears!
Uncle8888's assets may have survived the last market cycle of Bull-Bear-Bull; but he has failed to beat inflation rate @ 3%
How many of us realized that long-term investing over many market cycles of bulls and bears can be tougher than our current office job?
Our office job has annual salary and increment review to adjust for inflation impact. Right?
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Probably, in the advance stage of learning of investing is how to profit handsomely over market cycles i.e. compounding effect of every bull cycle.
ReplyDeleteHA! HA!
ReplyDeleteThat's why people says , "The hardest thing to do in the Market is whether you can sit still and do nothing when the market is helter skelter." i can't. i am still in my practicing stage.
That means i buy & sell too early. Heck not that i am complaining, i thank GOD as long as i don't lose any money except to inflation.She is very hard to beat because she is 24/365. Where as we can only "Carpe diem" when opportunity presents herself.
Not sure on losing to inflation is still okay?
DeleteI am quite sure that many will disagree. Losing is to inflation is as good as losing money. No?
Sorry, i have caused you to misread me. Of course why we invest is to at least catch up with inflation if not beat it.
ReplyDeleteWhat i mean is inflation is working all the time where as we can only look and wait for opportunity to invest to try to beat inflation. It can be anytime to a few years if you can't find any. Meanwhile your money is diminishing day by day by inflation. So when opportunity present itself or you spotted one, "Carpe diem" as much as you can . As much as you can tolerate the risk with adequate risk capacity. As much as your "guts" can take it.
Especially now QE has robbed us off our FD returns. Now EURO central bank has negative interest rate for banks' excess fund. What's going to happen next? Stock markets and assets going to be inflated even more? So what happens to your cash at hand? Becomes less and less valuable , isn't it?
Agreed.
ReplyDeleteNow we lose to inflation but we can win all and more.
It is like losing 100% of our capital on zero-beggers but win back all and more on multi-baggers
HA! HA!
ReplyDeleteCW, you should "patent the word" "zero-baggers".
zero-bEggers. LOL
DeleteHmmm... It's kind of surprise to me,but from the present distribution of cash vs stocks, it seems that you have divested and profited quite a fairbit ;-)
ReplyDelete