According to web analytics firm, Quantcast, 3/4 of Deets readers are under 50, and 1/3 are under 35.
With that in mind, Captain Capitalism has some advice for people who are not near retirement:
Though it’s counterintuitive, younger generations should be cheering for stocks to crash as low as possible. The reason why is simple; we’re not retiring tomorrow. We’re retiring 30-40 years from now. So why would we want to pay a premium for stocks? Oh, sure, if you’re retiring tomorrow, you’re screwed. If you thought you were going to snow bird it down to Florida and sell your house and live off your 401k plan next year, you’re hosed. But if you’re in the “acquiring stage” of building up your retirement portfolio, you should be cheering like mad for the stock markets to crash. For stocks are no different than any consumer good. Do you want to pay $5 for a gallon of gas? I presume not. So why would you want to pay $100 for a share of Microsoft, let alone cheer when stock prices go up. You want the price of stocks, just like gas, cars, chocolate and wiener dogs to go down.
Counter intuitive? Sure.
Reality based? Hmmm.
I don’t see many Gen X and Gen Y’s who are house poor and cash rich.
Are you telling people who just got laid off that the stock market has great buying opportunities?
Unfortunately, when the market is down so is access to cash.