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santana Icon : (26 June 2015 - 12:26 PM) FIRE WOOD!
Mr_Jet Icon : (26 June 2015 - 05:54 PM) Kristaps Porzingis???
Mr_Jet Icon : (26 June 2015 - 05:55 PM) You'd think Isiah Thomas was still running the Knicks last night.
santana Icon : (27 June 2015 - 07:30 PM) Lol yeah no clue about those names
Jetsfan0099 Icon : (28 June 2015 - 10:10 AM) Is there any chance that Porzingis ends up being good?
Jetsfan0099 Icon : (28 June 2015 - 10:10 AM) I'm guessing he won't be the next Pau Gasol or Dirk Nowviski
Mr_Jet Icon : (28 June 2015 - 11:41 AM) You never know, he could be as good as Gasol brothers or Dirk. Honestly the Knicks picking at #4 did the same thing the 3 teams picking ahead of them did. Picked a 19 year who could go boom or bust.
Mr_Jet Icon : (28 June 2015 - 11:45 AM) Porzingis seems to have the "I'm going to prove them wrong" type of attitude needed to overcome people's doubts about him. Hopefully he'll have the work ethic that goes along with that attitude.
azjetfan Icon : (28 June 2015 - 10:17 PM) In other news I decided to shave the dome. Since the hair was falling out anyway I figured I would show it who's boss
santana Icon : (29 June 2015 - 01:11 PM) Deisel up shave the dome
Mr_Jet Icon : (29 June 2015 - 04:49 PM) Welcome home.
azjetfan Icon : (29 June 2015 - 08:59 PM) I feel fast.
azjetfan Icon : (01 July 2015 - 07:53 PM) Shot an 86 today. Personal best.
santana Icon : (01 July 2015 - 08:19 PM) well done
santana Icon : (01 July 2015 - 08:19 PM) im going to play friday
blk_orion Icon : (02 July 2015 - 08:57 AM) play what? golf?
Jetsfan0099 Icon : (02 July 2015 - 01:16 PM) Sheldon Richardson suspended 4 game for substance abuse.
Jetsfan0099 Icon : (02 July 2015 - 01:16 PM) f***
ganggreen2003 Icon : (02 July 2015 - 06:15 PM) DAMNIT TO f***ing HELL!!!!
azjetfan Icon : (02 July 2015 - 07:46 PM) Yup. Golf. I'm ready to take on Tiger. Mid season form. For what ever reason I am hitting the driver great. 280 and fairly controlled. I'm playing again Saturday.
santana Icon : (02 July 2015 - 07:55 PM) tiger shot a 66 today didnt he easy course though
santana Icon : (02 July 2015 - 07:55 PM) things were going too well for the jets this off season
MikeGangGree... Icon : (02 July 2015 - 10:33 PM) Well I guess Williams will be starting in opening day now
MikeGangGree... Icon : (13 July 2015 - 09:34 PM) WOW homerun derby was awesome!!
santana Icon : (14 July 2015 - 03:56 PM) I missed it frown face
MikeGangGree... Icon : (23 July 2015 - 09:35 PM) WOOOOOOO
SecondHandJets Icon : (25 July 2015 - 10:24 PM) CONFORTO > TROUT, JUST ACCEPT IT!!!!!!!!!!!!!
santana Icon : (28 July 2015 - 10:52 AM) blasphemy
azjetfan Icon : (28 July 2015 - 01:37 PM) Brady suspension upheld
Chaos Icon : (30 July 2015 - 05:55 PM) https://twitter.com/...885423357390848
Chaos Icon : (30 July 2015 - 05:56 PM) God dammit Richardson. Jets need to pay Mo. Richardson is turning into a huge liability.
Jetsfan115 Icon : (30 July 2015 - 06:17 PM) good thing we drafted williams. thats why you take BPA
jets4life Icon : (30 July 2015 - 07:54 PM) Mike Freeman of the B/R has spoken to three NFL sources who all said they think Jets DE Sheldon Richardson Will Never Play Another Down In The Nfl following this arrest.

Freeman’s sources all pointed to the 12-year child and the loaded handgun in the car as two major concerns regarding the incident.
We’ll have more details regarding Richardson as the news is available.
ganggreen2003 Icon : (30 July 2015 - 08:44 PM) do we need to get rid of sheldon?
ganggreen2003 Icon : (30 July 2015 - 08:44 PM) wtf was he thinking driving 143 mph
azjetfan Icon : (30 July 2015 - 09:19 PM) My guess would be by the time he is done with all his suspensions he will not be under contract anymore.
azjetfan Icon : (30 July 2015 - 09:20 PM) The child and gun will do him in.
azjetfan Icon : (30 July 2015 - 09:20 PM) Was he charged with child endangerment?
MikeGangGree... Icon : (30 July 2015 - 10:53 PM) Why o why
Chaos Icon : (Yesterday, 07:29 AM) i think he was only charged with resisting arrest
Chaos Icon : (Yesterday, 07:29 AM) he isn't going anywhere. wife beaters get second chances and he won't?
Chaos Icon : (Yesterday, 07:29 AM) i'm sure he's going to be suspended for more than 4 games though
Jetsfan0099 Icon : (Yesterday, 10:16 AM) Richardson is a moron
Jetsfan0099 Icon : (Yesterday, 10:16 AM) Good thing we drafted Williams
Jetsfan0099 Icon : (Yesterday, 10:17 AM) Makes the decision easier to pay Wilkerson, someone who knows how to not get into trouble off the field
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Bernanke Dares You To Buy Stocks

#1 User is offline   azjetfan Icon

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Posted 24 May 2013 - 02:01 PM

Any of you who have 401Ks that are stock based (especially those from former jobs) or and stocks may want to sit with your advisor or get one.

Quote

Federal Reserve Chairman Ben Bernanke reiterated this week the message he has been sending for months about interest rates, the economy and the stock market.

Oh, it was couched in rhetoric and Fed-speak, but his message to average investors came through loud and clear: “I dare you to invest in stocks.”

No, Bernanke did not use those words, but the Fed’s actions and the chatter around them make that message unmistakable.

Combine an interest-rate environment where savers get virtually nothing with a stock market at all-time highs and a general nervousness about what will happen to that market when the Fed finally stops stepping in to prop up the economy and you have to wonder if investors have the nerve to throw more money at stocks.

Then add in Bernanke’s hint that the Fed’s rate of bond purchases could slow “in the next few meetings” and he just double-dog dared you to put more money in the market, knowing that the market will react to the end of quantitative easing the way most of us respond to food poisoning.

This reaction could be short-lived, however, and by floating that trial balloon this week, Bernanke may have been testing the waters, trying to see just how much the market reacts. The more it reacts now —— the more the big institutions start to anticipate a change in policy and price it into their plans — the less likely it will react with some long-running shock when the real moment arrives.

Plenty of average investors have taken Bernanke’s dare, which has simply grown stronger and more brash since the financial crisis of 2008. That said, while statistics show money flowing into equities, most of that has been from big institutions, and there hasn’t necessarily been some huge outflow from the fixed-income side of things, so there are a lot of people who haven’t responded to his actions yet.

“The majority of individual investors aren’t biting,” said Greg McBride, senior financial analyst for BankRate.com. “In April, Bankrate.com found 76% of Americans are not more inclined to invest in the stock market now, despite record low interest rates.”

For the investors who are in, Bernanke’s dare is something they had already factored in. For the rest of the investing public, they’re balancing all of the worries that have kept them out until now, most notably balancing the idea of a market at record highs with all of the conditions that make them nervous that a correction — or something much worse — is coming.

“You don’t want to be in or out based on emotions or flows, but on fundamentals,” said Barbara Marcin, manager of the Gabelli Dividend Growth fund (GBCIX) . “The overall fundamentals of the market are mediocre right now, you can’t get too excited. So while the Federal Reserve has intended to hold the risk-free rate to practically nothing to offer investors no choice but to invest in stocks if they want a return … the average individual hasn’t poured in.”

Bloomberg Ben S. Bernanke, chairman of the U.S. Federal Reserve, speaks during a Joint Economic Committee hearing in Washington, D.C., U.S., on Wednesday, May 22, 2013.
“Traditionally, the market doesn’t form a good top until everybody is in, and that certainly hasn’t happened yet, but anyone who is getting in now has missed a tremendous run and may be getting in mostly because they feel that they have no real choice because they can’t get a real return anywhere but the market,” she added.

While it’s easy to find analysts touting the market’s solid prospects, investors are still having a tough time getting over the market’s travails of the last decade-plus. Cyclical swings don’t just batter account statements, they damage people’s confidence to stay in the market; it’s hard to stay invested — or even be invested — in a market that delivers its long-term returns in such an uneven way.

And yet for individuals, capturing the long-term return is the point.

No one has a good answer on how to do that without taking Bernanke up on the dare.

“Individual investors are starting to come into the market some, which I hate to see now that the market is at a high,” said Jeffrey Hirsch, co-author of the Stock Trader’s Almanac. “It would have been better last fall, when we had a major buy signal, or at some other time. But there’s always going to be a time that might be better, the problem is that if you just missed the last good time to get in the market, how do you know you will recognize the next ‘best time.’

“With the Fed providing a tailwind of liquidity,” he added, “I don’t think there will be a downdraft until Bernanke takes the punch bowl away. … But investors who want to take a chance now need to keep perspective on the risk versus the reward.”

Clearly, balancing risk requires diversification, not going all-or-nothing on Bernanke’s wager. It also means looking at the market not entirely in terms of percentages, but in real-dollar terms.

Hirsch noted that an investor with $10,000 looking to gain a 5% return is talking about adding $500 in annual returns compared with keeping the money on the sidelines. The discrepancy gets a bit bigger when adjusted for inflation.

“The question is whether that $500 is going to make it for you,” he said, “because if it’s not — and you’re too nervous to be in the market — you could still find yourself better off if you save more, or change your spending or doing something else that lets you invest more comfortably.”

Comfort is something the current market is not giving investors, even as it continues to play around with new highs. Investing into discomforting times — though historically profitable — is hard.

Ben Bernanke knows that.

If you’re not going to take his dare, planning around it is crucial. And if you are going to take him up on the challenge, you won’t want to be the last one to do it, because someone is going to wind up losing in this challenge, and it is most likely to be the ones who only accept Bernanke’s gamble right before he changes his provocation to something different.




Chuck Jaffe is a senior MarketWatch columnist. His work appears in many U.S. newspapers. Follow him on Twitter @MKTWJaffe.

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