Dow down nearly 900 points:read speech Chair Powell | Investing | Discussion forum

AltaRed said
Dow closed down 1000 (3.03%) but that is a useless index of 30 industrials. The S&P500 is much better and it is down 3.37% today. The TSX did much better, only off 1.48%. Regardless, the speech sets the tone (for now) for a determined fight on inflation.... that is, until speculation ramps up again for a future 'blink'. Investors are such optimists.......  

They're like crack addicts. Addicted to low rates. Don't think they're going to get any relief anytime soon.

I can see that bitcoin is well above zero. That tells me, people still have money to spend on unnecessary things - interest rates can go up further.

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So Cgouimet ⬆ ...

Why not ignore their advice, and play the Big Boy's game ❓

Dean

Loonie said
Anyone who buys the line about "never sell" and "never try to time the market" is likely lining the pockets of their heirs - and maybe CRA, depending - rather than getting anything for their money. It doesn't matter how much you made if it's stuck on a spreadsheet for the rest of your life.
So, go ahead, do your best to time the market or leave it all to your heirs who, in turn, will have to time the market if they are ever going to get anything out of it.
Timing may be a challenging, but necessary pursuit.  

Perhaps you should include all the Pension Funds who are invested VERY heavily in equities - they certainly will continue to keep buying equities periodically and at perhaps lower current values - hopefully pensioners will receive "something" if the Pension Plans buy and sell as you suggest should happen i.e. "time the market". Bear in mind, Pension Funds have a diversified portfolio - every stock is not a loser - energy stocks are doing very well these days - even coal is in big demand e.g. Germany and Europe want coal so those stocks will do well. Many investors have been smart enough to invest in energy too so they may have some real winners even if some losers e.g. hi-tech. I don't think there is any rush to sell successful energy stocks in 2022.

"Never sell" to me meant no selling during accumulation decades, just accumulate & hold until you've got the pile you want, i.e. sell at some point in your later life when you're set. It's what I did, a few years ago, though I did re-enter to a relatively minor degree when the initial virus crash presented an obvious buy-in opportunity, couldn't help myself. So, yes, CRA got its pound of flesh when I liquidated but it's certainly not sitting on a spreadsheet for heirs.

But now it's mostly fixed-income sitting on spreadsheets, pretty much same effect as equities on spreadsheets, far as I can see.

Sounds like you figured out your market timing pretty well when you sold.

There is a big difference between GICs and market investments on a spreadsheet, as I'm sure you know. One has a guaranteed value and, if you shop carefully, can be turned into cash at any time with little or no foregone interest; the value of the other is unknowable until sold.
But I would agree that the spreadsheets are very similar if you never use the money; it's all just numbers on a chart for your heirs and maybe CRA.

Each to their own, but I think people need to be aware of what they are doing. Many are putting tons of effort into money they will never get any personal benefit from, and they may even take a big hit if they follow the "never sell" line and then find they must do so at a disadvantageous time. (This happened to someone close to me - a tragedy.) Something to think about anyway.

When it comes to equities, there is the added potential of appreciation in addition to dividends (for dividend paying equities).

On the other hand, it is highly unlikely a GIC will pay back more than its original principal.

Alexandre said

I can see that bitcoin is well above zero. That tells me, people still have money to spend on unnecessary things - interest rates can go up further.  

Yes, Bitcoin (BTC) is still well above Zero ... but it appears
to be heading in that general direction ⬇

https://www.google.com/finance/quote/BTC-USD?window=1Y

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Why risk Moolah on BTC, when you can safely earn an
annual 5.0% interest (guaranteed) on a 5Yr GIC ❓

Dean

RetirEd said
mordko: I wouldn't have hesitated to dump video-rental stocks. One often has time to react safely. Not always, but there is no point in following equities down to zero when the writing is on the wall. Again, I'm not talking about day-trading.
RetirEe  

The problem is that we never know for certain that something is going to zero until it is zero. I recall talk of Microsoft, Amazon and Apple (among others) talked about as “going to zero” companies.