Does it make sense to invest in down markets?   Some people simply quit investing and avoid the market altogether.  This may be the wrong decision!  Here’s a little exercise might provide a clue as to why most investment experts advise consistent investing.

In our example, the price of our fictitious investment begins and $50 and goes down.  In fact, it takes 10 years just to get back to it’s initial price.  Did systematic investing seem worthwhile?  You be the judge. Continue reading →

Remember when gas was 35-cents a gallon?  You could fill a 10-gallon tank for $3.50!  I know; I did – it was a small hatch-back.   Heck, I even remember when Coca-Cola was 5-cents  I think Grant was President, I forget – now it’s a buck something; talk about losing purchasing power.

When Reagan was president, a first-class postage stamp was 8-cents!   The lesson is simple and as unchanging as a politician’s desire to get reelected:  Every year everything will cost a little more than it did the year before because our money is worth less and therefore purchases less. Continue reading →