So Far So Good or Not

[dogcom]

Has the year gone as you expected it would in the markets, sectors or in the world?

For me everything has gone by the book so far as the equity markets rallied to May and then did the usual turnaround. Europe is doing its usual song and dance of the last few years except it may be getting worse as Greece is getting close to saying get lost Euro. I didn't expect a war with Iran right now and so far so good. Gold stocks fell more then I thought they would but they are following the pattern of weakness until summer so I shouldn't be all that surprised.

So all in all if I think about it everything is going as it should so far this year with no real surprises.

[Belguy]

While I am usually positive about the markets, May was a pretty dismal month for stocks and things don't seem to be getting any better:

http://www.google.com/hostednews/ukp...1338495767054A

[dogcom]

Belguy all in all was it really a shock to you especially after the run we had since October. Things also didn't seem to get better until October of last year either. At some point this easy to guess market will throw us a curve ball but so far it hasn't.

[eulogy]

I'm happy with things, just because I'm on the newer side of investing for retirement, so I like the idea of throwing money in at declining prices. Up and down in the markets really doesn't have much of a net change for me.

I'm surprised at a few things. Bonds and US Equities are positive for me. Canadian equities and International equities (mainly Europe) are getting pounded. Europe doesn't surprise me in this case, but Canadian equities does. Cheap buying either way.

[dogcom]

With China slowing and Europe in the dumper this has been a drag on commodities and thus the Canadian market, it is good however that you are enjoying the cheap buying eulogy.

[Belguy]

The younger you are, the more that you can just roll with the punches when it comes to market returns and just look at declining prices as a better buying opportunity.

When you are already retired, the concern becomes whether the markets will be able to bounce back at least in the relative short term so that you don't have to cash out at a loss.

Your time horizon is a very major consideration as to how you react to shorter term market moves.

In other words, should 70 year olds put their hard-earned savings at the whims of the equity markets?

[sags]

The economy has stayed relatively healthy longer than I thought it would, given the circumstances.

Europe keeps delaying the inevitable, but it looks like they are heading for a worse recession than they would have earlier.

The USA is still hiding it's head in the sand. Politicians still fighting over tax cuts or government stimulus.......either way they haven't begun to get serious on their debt problems.

China slowing...........that is a surprise, I think.

We don't own any stocks at present, but do own some farm land in Saskatchewan. The value is rising nicely every month.

For me...........the numbers say one thing, but from talking to people, business owners and others, a lot of people are broke.

A guy I know owns a payday loan store. He said he has to move as he isn't earning enough to pay the office expenses. His customers used to borrow against 350 a week pays.........and now they have 150 a week pays, so he can only lend them half as much.

My sister has worked at Walmart for 35 years............since they were Woolco.

She started working 40 hours a week plus overtime on Saturdays. Then her hours were reduced to 32 hours a week and no overtime. Recently they went to her and told her they were cutting her hours to 24 hours a week. She said she worked for them for 35 years and cut someone else's hours. They did...........but she said it is inevitable she will be working less. She is in her mid 50s.

I know a Chinese restaurant owner and the place used to be very busy. The dining room was full and takeout and pickup was very busy. Not any more. Nobody in the dining room and a few orders every night. They have let cooks and staff go.

This is what I see everyday all around me, yet the business channels say the stock market is doing fine.

I just wonder how long before the stock market meets the real world.

[Belguy]

The younger you are, the more that you can just roll with the punches when it comes to market returns and just look at declining prices as a better buying opportunity.

When you are already retired, the concern becomes whether the markets will be able to bounce back at least in the relative short term so that you don't have to cash out at a loss.

Your time horizon is a very major consideration as to how you react to shorter term market moves.

In other words, should 70 year olds put their hard-earned savings at the whims of the equity markets?

[Sampson]

In other words, should 70 year olds put their hard-earned savings at the whims of the equity markets?

Depends on how long you think you will live, and what returns you need to achieve a fulfilling twilight of your life.

[Sampson]

The year has gone exactly as I suspected it would.

Truthfully, ever since late 2008, I expected a long 5-10 year period of deleveraging. How can the economy grow organically without debt? that is the answer to future returns.

In terms of markets this year. Absolutely. Europe is in trouble, but failing point has been tested before, most recently last Oct, and also (a combo of the US double dipping and contagion going to Europe) back in July of 2010.

In these volatile times, it isn't a surprise to me if we touch back to those lows. Roller coaster for the next couple years.