Think Long-Term

Furthermore, let's talk about the individual stocks that are down 80%, 90% or even no longer exist.

This is a very deceptive graph. If you bought in the late 90's, it barely moved over 10 years. Look at where it dipped from 12k to 8k over 5 or 6 years. You are better off throwing your money in a mattress than in this case. Past performance is hardly an indicator of future performance. Why did you leave out the chart of the Nasdaq which was at a high of 5k and dropped to around 1.3k? America can collapse. Things can get worse, and things can go from worse to awful. Even if things do pick up, you've got 10 years of pain in the meantime. Buy and hold is a manipulative tactic. Smart investors will buy, and run like hell when they make a profit.

American man you are an idiot. Go back to school and start with English 101, Economics 101, and then History 101, read the section on socialism twice. The economy has and always will have ups and downs. Under President Bush we had almost eight years of growth. Then people, probably like you, ran up debt on their credit cards, bought houses they could not afford, and spent way beyond their means. Now according to Senator Obama and his following, it's the government's job to take money out of my pocket to put in someone else's pocket. I worked hard to achieve my success and I intend to enjoy it, not give it to irresponsible leaches who are incapable of accepting responsibility for their actions.

Brian: It seems this blog entry has attracted a couple of citizens whose daily activities include strumming "They're Coming To Take Me Away, Ha-Ha!" on their pajama cord. Your "Think Long-Term" observations are, of course, correct. For those of us who do think that way you're validating what we know to be true. It has been a personal practice to study the past, apply that to the present and extrapolate the knowledge to predict what's likely to happen 3-5 years out. Thinking long term is applicable to finances as well as the human aspects of our lives. You posed an interesting question: "If I put money into my 401k each month when the Dow is at 13,000, why wouldn’t I want to put just as much - or more - into it at Dow 11,500?" It's certainly worth considering, but for someone like myself who is a fiscal conservative I'd rather place money in a steadfast and predictable instrument. Yet, my instincts scream that some wise buys in a 11,500 Dow would eventually yield a higher ROI. You're doing a sensational job on FBN every morning. Recommend you have the FBN webmasters create better navigation to access your blog. Yours is the most difficult to find.

"American Man" - The government is not your answer they can't take care of you and your stereotypical "Money is evil" thinking. Obama can't fix you either. The reason there is no long term for lots of Americans is because they are financially illiterate. The reason for that is because they were raised by people who were also financially illiterate in a school system that does not teach about money and with the false ideal that someone else is responsible for their lives. Then to boot they were also taught to hate those who have more than they do. Why would you ever want to be something that you hate?! This article is one piece of a large puzzle that those of us who want to educate ourselves as to the power of money pay attention to everyday. And everyday our ongoing learning also consists of wadding thru posters like yourself that just whine about what they do not know so they can blame someone else for their ignorance. You sound like a bratty child who as never taught self accountability and responsibility. The general attitude of this article is to be positive and optimistic in a time of uncertainty. Unfortunately you have chosen to make your default outlook just the opposite.

Brian, I agree with you 100%. I'm also sick and tired of hearing about all the doom and gloom. People have had such cushy lives for so long that even the slightest bump seems like the end of the world to them. When I was in Iraq I remember seeing people wait in line for hours just to get gasoline (in a country where oil is obviously plentiful). I know. It's all our fault. Blah, blah, blah. My point is that if people would stop being so lazy and complain all the time about how horrible this country is, maybe we could actually accomplish something. We are still a great country, no thanks to most of the people currently living. If we don't appreciate and use the advantages that were given to us, then we'll become just like the Europeans, and guess what: THERE WON'T BE ANYONE LEFT TO PROTECT US. So we have two options: We can take the easy route (in my opinion) and put forth a small amount of effort to better ourselves and our country like are ancestors did, or we can wallow in our own narcissistic self-indulgence until someone puts us out of our misery. Believe me, there are plenty of people that would love to see us wiped off the map.

Slowly I awake to realize -wait, I'm 40 and then it hits me Oh no, people who dropped acid at a Grateful Dead concert are now filling the seats of those before them that actually had a clue - Soon, just merely associating with anyone over 50 will be enough guidance for many - I've no faith in this 'profit profit profit' mentality. Life is plentiful with loss- Where did anyone ever promise anyone a rose garden ? The hog has been tied, we've lived off the hog, the fat is merely dripping into the fire causing a blaze of smoke and once that is gone ? people don't know how to get another hog. Maybe they can youtube how to make fire ? Maybe this generation coming in can youtube how to google ? ugh! Education Education Education, THAT is the REAL investment you can make in life. Without meaning, you might as well chase a falling dollar into oblivion.

Hi Brian, Thanks for the post. This is in line with my current thinking. The key for most people, I believe, is to acquire local or mass-transit-accessible, recession-proof jobs. That way, even if there is only $20 to invest at the end of a week in inexpensive stocks, they are worth buying and holding on the way down. Meanwhile, steady income continues to pay the bills and support a modest lifestyle during the crunch. Industries such as government, discount retailers, and healthcare seem to be pretty safe bets in this economy. Good luck to the other modest investors out there.

There is no long term for millions of Americans who taking the brunt force of the economic polices that you and Bush support. The think is no matter how good you life is at the expense of the American People it really doesn't matter. Real Americans don't put their people in danger just to make a buck. The world economy is a fraud promoted by those who see the American People as their prey. Day is coming when the Wealthy will find out that their fellow Americas resent what they have done only to enrich themselves. Obama coming and it will be a train wreck for the rich. That is righ, class warfare? you bet cha.