Comments on: Had You Invested on the Last Day of September, 1929… http://allfinancialmatters.com/2008/10/31/had-you-invested-on-the-last-day-of-september-1929/ A personal finance blog dedicated to discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance. Sat, 11 Feb 2012 20:32:19 +0000 hourly 1 http://wordpress.org/?v= By: Tim Thompson http://allfinancialmatters.com/2008/10/31/had-you-invested-on-the-last-day-of-september-1929/comment-page-1/#comment-375727 Tim Thompson Mon, 03 Nov 2008 04:25:53 +0000 http://allfinancialmatters.com/?p=2922#comment-375727 If you look to the S&P more recent past it has not faired to well in simular times. What you say might be true in a few years but you might end up waiting for a while... http://stocktruth.com/chart.php?symbol=%5EGSPC 2001 has a nice turn around, but even this year (march 2008) we saw a nice return just to fall again. I would give it a few more months before I felt that we are at ground zero... If you look to the S&P more recent past it has not faired to well in simular times. What you say might be true in a few years but you might end up waiting for a while…

http://stocktruth.com/chart.php?symbol=%5EGSPC

2001 has a nice turn around, but even this year (march 2008) we saw a nice return just to fall again.

I would give it a few more months before I felt that we are at ground zero…

]]> By: Julia http://allfinancialmatters.com/2008/10/31/had-you-invested-on-the-last-day-of-september-1929/comment-page-1/#comment-375678 Julia Sun, 02 Nov 2008 22:43:14 +0000 http://allfinancialmatters.com/?p=2922#comment-375678 Is your next post going to tell us what our return would be if we invested at the lowest point in 1932? If you only invested at the peak of the market, then it took 15 years to "recover". I don't know many people who invested all their money at once at the peak of the market (or at the low point in the market). Is your next post going to tell us what our return would be if we invested at the lowest point in 1932? If you only invested at the peak of the market, then it took 15 years to “recover”. I don’t know many people who invested all their money at once at the peak of the market (or at the low point in the market).

]]> By: fivecentnickel.com http://allfinancialmatters.com/2008/10/31/had-you-invested-on-the-last-day-of-september-1929/comment-page-1/#comment-375600 fivecentnickel.com Sun, 02 Nov 2008 14:43:20 +0000 http://allfinancialmatters.com/?p=2922#comment-375600 Glad to hear that you're planning a DCA followup, because stats like this are totally unrealistic for "real" investors who continue adding to their positions over the long term. Glad to hear that you’re planning a DCA followup, because stats like this are totally unrealistic for “real” investors who continue adding to their positions over the long term.

]]> By: Finance Junkie http://allfinancialmatters.com/2008/10/31/had-you-invested-on-the-last-day-of-september-1929/comment-page-1/#comment-375473 Finance Junkie Sun, 02 Nov 2008 00:27:29 +0000 http://allfinancialmatters.com/?p=2922#comment-375473 Ok, to the person who mentioned dollar cost averaging. If you dollar cost averaged for two years starting on the last day of September 1929. You would still have a negative return on your money 13 years later in Sep 1942 (based on chart above). Ok, to the person who mentioned dollar cost averaging. If you dollar cost averaged for two years starting on the last day of September 1929. You would still have a negative return on your money 13 years later in Sep 1942 (based on chart above).

]]> By: Tim http://allfinancialmatters.com/2008/10/31/had-you-invested-on-the-last-day-of-september-1929/comment-page-1/#comment-375457 Tim Sat, 01 Nov 2008 22:27:17 +0000 http://allfinancialmatters.com/?p=2922#comment-375457 I really find it odd that people like to fixate on one moment in time analysis. All of this presumes that you aren't continuing to invest your money over time. the point isn't how long it will take to recover the $100 initial investment, because if you continually invest, that loss in the $100 will decrease with continued investments. so this is again another argument for dollar cost averaging. I really find it odd that people like to fixate on one moment in time analysis. All of this presumes that you aren’t continuing to invest your money over time. the point isn’t how long it will take to recover the $100 initial investment, because if you continually invest, that loss in the $100 will decrease with continued investments. so this is again another argument for dollar cost averaging.

]]> By: JLP http://allfinancialmatters.com/2008/10/31/had-you-invested-on-the-last-day-of-september-1929/comment-page-1/#comment-375360 JLP Sat, 01 Nov 2008 15:43:15 +0000 http://allfinancialmatters.com/?p=2922#comment-375360 QJC, I guess you didn't see my comment #3. QJC,

I guess you didn’t see my comment #3.

]]> By: QJC http://allfinancialmatters.com/2008/10/31/had-you-invested-on-the-last-day-of-september-1929/comment-page-1/#comment-375358 QJC Sat, 01 Nov 2008 15:40:05 +0000 http://allfinancialmatters.com/?p=2922#comment-375358 OK, so that's a nice worst case scenario. Scary only IF someone actually could do this. Now how about positing something more along the way people really invest - that is to say at least annually, or most commonly through automatic investment plans like 401(k)s and IRAs taken out over time. What's the scenario for investing a fixed amount of $10, say, from 1920 through 1940, eh? OK, so that’s a nice worst case scenario. Scary only IF someone actually could do this. Now how about positing something more along the way people really invest – that is to say at least annually, or most commonly through automatic investment plans like 401(k)s and IRAs taken out over time. What’s the scenario for investing a fixed amount of $10, say, from 1920 through 1940, eh?

]]> By: Andy http://allfinancialmatters.com/2008/10/31/had-you-invested-on-the-last-day-of-september-1929/comment-page-1/#comment-375352 Andy Sat, 01 Nov 2008 14:34:27 +0000 http://allfinancialmatters.com/?p=2922#comment-375352 Sure, but most people don't have 100% equities. I believe for something like 80/20 or 60/40 the number of years drops a non-negligible amount. Sure, but most people don’t have 100% equities. I believe for something like 80/20 or 60/40 the number of years drops a non-negligible amount.

]]> By: JLP http://allfinancialmatters.com/2008/10/31/had-you-invested-on-the-last-day-of-september-1929/comment-page-1/#comment-375347 JLP Sat, 01 Nov 2008 12:48:35 +0000 http://allfinancialmatters.com/?p=2922#comment-375347 EnoughWealth, The POINT of this was just how long it took to recover from the '29 crash. I'm already planning a follow-up that looks at dollar-cost averaging over the same time period. EnoughWealth,

The POINT of this was just how long it took to recover from the ’29 crash.

I’m already planning a follow-up that looks at dollar-cost averaging over the same time period.

]]> By: EN http://allfinancialmatters.com/2008/10/31/had-you-invested-on-the-last-day-of-september-1929/comment-page-1/#comment-375316 EN Sat, 01 Nov 2008 07:38:11 +0000 http://allfinancialmatters.com/?p=2922#comment-375316 ^It was just a fun example..... ^It was just a fun example…..

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