Expert: Recession? WHAT Recession?

Dave Ramsey: We're Not In One; No Need To Change Investment Strategies

(CBS) 

"MY HUSBAND IS 56, AND WE PUT $1,100 INTO HIS 401(K) EACH PAY PERIOD. SHOULD WE PUT IT INTO A CD INSTEAD FOR NOW?" asks Catherine, from Wisconsin.

"Stop investing because of a 'maybe' recession? Absolutely not," Ramsey responded. "If we go into a full-blown recession, that would be a GREAT time to invest: It's like going to K-Mart when the blue light is on!

"Think about it: You've lost money in the stock market lately because your investments are worth less now than they were a few months ago. That's a bummer for the stocks you already own, but what about the ones you would like to buy? It's kind of like stocks are on sale at the moment. If you were given $10,000 to invest in Coca-Cola, when would you want purchase shares? When they were $60 or $35 per share? The market has never, never, never lost money over the long-term. So, go ahead and buy now; you'll be happy you did later."

Does Katherine have more reason to be concerned, since it sounds as if she might be retiring in the next ten years?

"One hundred percent of 10-year periods in the stock market have made money," he answered. "She's only (about) 56. She's not going to lose all of her retirement before she's 65. Stay the course!"

"SHOULD I RECESSION-PROOF MY 401(k) BY SWAPPING OUT RISKIER STOCKS FOR BONDS?" asks Lisa, from North Carolina.

"No," Ramsey said. "Bonds aren't necessarily safe, particularly when the Fed is pushing rates down. Bonds under-performed stocks for 70 years. Don't try to time the market, pulling in and out of 'safe' investments. Lots of statistics prove that if you invest steadily, you'll win in the end."

Again, according to Ramsey, now isn't the time to change your basic investment strategies. General investors will come out of this period OK, if they stick with their game plan.

[monkeyman1140]

Only idiots play the stock market, especially now. Its the stock market insiders that want the idiots to put their 401K''s in, so they can steal their money.
Stick to bank certificates of deposit and other fixed interest investments, the bank will love you for it because they really really need the capital right now!

[b-easy63]

"No," Ramsey said. "Bonds aren''t necessarily safe, particularly when the Fed is pushing rates down. Bonds under-performed stocks for 70 years. Don''t try to time the market, pulling in and out of ''safe'' investments. Lots of statistics prove that if you invest steadily, you''ll win in the end."


Actually, that is not true: the truth is: "If some of us invest in the right stocks steadily, they will win in the end, if you invest in the wrong stock--you can lose everything you have. I took a class where the example of what a person would have had if they had invested in certain stocks in 1929 and after-- We were given copies of 1929 stock market and today''s market to track the companies and growth. MOST IMPRESSIVE!!!

BUT then I asked these 3 questions

1. In looking at some of the stocks that no longer were in today''s paper, I asked what happened to the people who invested in the wrong companies--THEY LOST EVERYTHING

2. I then asked how many of the companies that existed in 1929 are still here--about 13%. So 87% went belly up?

3. Last question, about what % of people in the market lost everything or almost everything? 87%.

It is a *** shoot--those who think they will win WANT the rest to keep playing to make THEIR pot bigger.

[b-easy63]

Just tuned in to get a good look at the financial "guru" claiming no recession. Always good to see what the latest "big, fat, liar" looks like these days. lmao

[otionwaves]

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[olebd]

I''m so tired of this "expert". He lost me when I heard him advise everyone to pay cash for everything, including ones home and car. I don''t know anyone in this day and age who could pull that off unless they would hit the lottery or inherit a large sum of cash.

[ianlou]

"Expert: Recession? WHAT Recession?"

Visit Michigan and find out!

[griffinsivy]

Just my 2 cents on the gov''t checks and helping the economy. As I think this through, it seems that the checks most US citizens will get, will be just enough to pay a few bills and 1 trip to the grocery store. I''m not sure how this will stimulate the economy. I think maybe the govt needs to address what started the bulk of this decline - the mortgage industry, credit card companies and interest rates. I used to work in the mort industry. I know the risky loans the mort companies would do, knowing if the rates went up, buyers would default. They made loans to foreign nationals, not questioning where they really lived and what their income came from. The credit card companies did the same thing, only homes aren''t lost, debts were not collected, which is passed to the consumer, never able to get ahead.
Perhaps the govt could mandatorily make business drop their interest rates for one year. This will free up cash in for most people. Plus work out some type of program where homebuyers who now have delinguentcies on their mortg due to their rising rates, will be able to refinanced. This would encourage people to spend as they would have extra money at the end of the month. They will have hope which always boosts spending- consumer confidence. Maybe this will spur thought in others for a better long term solution.
K Louviere-Dutkiewicz
Texas

[prairiefox1]

BULL!