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Hey Mark Cuban, Is The Stock Market Still 'For Suckers'?
Thanks for making me look smart Thomas. You make my point exactly.
The Market is for suckers. It takes a sucker to think the market will repeat any of its past performances.
It takes a sucker to think that out of thousands of choices, they are going to pick the exact right product, whether ETF, mutual fund, whatever. It takes a sucker to think that life wont interfere just when they least want it to and that borrowing against a fund or portfolio is the best way to do deal with an intrusion.
It takes a sucker to think that whoever is selling whatever to them has their best interests at heart.
Compare that to the 5.50pct CD rates you can get for your 100k these days.
what do you give up. No question , you give up some potential upside. Risk carries the potential for more gain. For all the risk and the swings and the ups and downs of 2006, in Thomas's world, all the risk is worth it.
In my world, you sleep like a baby every night. You know exactly what you will earn. You are in a low inflation environment where you can get ahead.
In Thomas' world. You now must decide whether to stay in or not. Is 2007 a year when the market goes up again, or will it go down , putting you in the hole ? Or should you just take profits and pay taxes ?
Sure your money could earn more. Or you could buy a CD, earn more than inflation and not worry about what those who follow Thomas' advice worry every time they go to bed: Will they go to work and get a call from their broker saying "I have bad news",or worse yet, will they check the asset value of the stock/fund/whatever at lunch and see something gone wrong, and get that feeling in their stomach where their world is about to turn upside down. At which point they call their broker or the fund and get a mouthful about how over 20 years.....Which of course doesnt help you pay for the kids school next year.
The market lives for amateurs. Funds advertise to try to get your money and they thrive on your lack of knowledge.
When there is a year when rates stop going up and there are a lack of options, the markets look good.
You know what they call someone who thinks that in the last 6 months of 2006 DJIA stocks got intrinsically more valuable... a sucker
Jan 2, 2007. 04:38 PM
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