Is Avoiding a Down Market Smart? Maybe not.

Debt DespairDoes 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

Inflation Can Cause Financial Glaucoma

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