It sure is easy to become complacent. Here we are cruising along enjoying steady growth. On a long term basis the upward move began after the last big dip in March of 2009. On a much shorter term, we've been on a heck of ride that began last September 1. As mentioned on these pages, 2010 was flatter than the proverbial pancake to the end of August. On September 1 the TSX took off and we've had pretty much the best six months in recent memory.
On the August 31 the TSX closed at 11,913. January 31, 13,551 for a gain of 13.7%. By February 17 it had spiked to 14,136. An 18.6% gain since the end of August. Spectacular!
Once again, finance guy is back in the good books of many boomers who stayed the course during the turmoil of the past few years. Many began to think that he isn't such a dolt after all. His constant reminders about the long term returns of the overall market hit home. Stick with finance guy and we'll be okay many once again believe.
For my thoughts on this, have a look at my post of July 16 last year. A Little More About The Last (Next) Ten Years. To stick with finance guy and his marvelous mutual funds for the next ten years means you really have to believe that world has not dramatically changed and the markets will settle into the old norm of slow and steady growth...a pattern which we haven't seen since the nineties. The nineties people, ten freakin' years ago! Like I said last July, the ten year return for the period ended July 8, 2010 was 10%...in total! A GIC at 3% compounding annually grows by 34.39% in ten years. Think about it.
So, will you stick with the funds? Do you believe that the markets will return to patterns last seen in the eighties and nineties? Are you thinking that we're enjoying new highs and now may very well be the time to take your money off the table? Depending on your age and your planned retirement date this may be the case. It's all about timing as I described in my post last May. Who Should(n't) Be In Funds? Most importantly, are you thinking about it at all? Finance guy thinks about your funds each month....when his trailer fee commission cheque arrives.
On the August 31 the TSX closed at 11,913. January 31, 13,551 for a gain of 13.7%. By February 17 it had spiked to 14,136. An 18.6% gain since the end of August. Spectacular!
Once again, finance guy is back in the good books of many boomers who stayed the course during the turmoil of the past few years. Many began to think that he isn't such a dolt after all. His constant reminders about the long term returns of the overall market hit home. Stick with finance guy and we'll be okay many once again believe.
For my thoughts on this, have a look at my post of July 16 last year. A Little More About The Last (Next) Ten Years. To stick with finance guy and his marvelous mutual funds for the next ten years means you really have to believe that world has not dramatically changed and the markets will settle into the old norm of slow and steady growth...a pattern which we haven't seen since the nineties. The nineties people, ten freakin' years ago! Like I said last July, the ten year return for the period ended July 8, 2010 was 10%...in total! A GIC at 3% compounding annually grows by 34.39% in ten years. Think about it.
So, will you stick with the funds? Do you believe that the markets will return to patterns last seen in the eighties and nineties? Are you thinking that we're enjoying new highs and now may very well be the time to take your money off the table? Depending on your age and your planned retirement date this may be the case. It's all about timing as I described in my post last May. Who Should(n't) Be In Funds? Most importantly, are you thinking about it at all? Finance guy thinks about your funds each month....when his trailer fee commission cheque arrives.
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