Bernanke and his cohorts on the Fed will accomplish little, if anything, in the way of reducing unemployment. However, what they are accomplishing is the destruction of the living standards for the millions of retired and about-to-be retired Americans. Personally, the biggest enemy of my retirement portfolio has not been this economy but rather has been Ben Bernanke.
Dude, you cannot retire quietly by investing in stocks. Do you think dividend is a kind of ROI ? You see it's not since the stock price can go down faster than the high dividend rate. If you want to feel safe, invest in bond. Do they give a lower return ? Of course , there is not such a thing as free lunch.
I am 39, I can take my risks and making and losing thousands of dollars a day , but if you are retired and want safe life, you cannot speculate in stock market. Buy bonds or certificate of deposits.
You say you are 39 years old. Quite candidly, you still have a lot to learn. Take it from someone who is 30 years older than you are.
FYI, REITS are not the only investment I own. I own BDCs, leveraged bond funds, stocks, etc., and I own, and have owned, a significant number of individual bonds. Have you taken a look at the interest yields of investment rated corporate bonds of late? Best I can say is that it stinks. How about non-investment grade (junk) bonds. Considering the risk, those yields for the companies that likely will have the funds needed to make the payoffs at maturity are around 6%. The bonds I hold were purchased in 2009 through 2011. They are non-investment grade and were purchased at yields between 10 to 12%. Today, those same bonds yield half those amounts.
I am doing OK in this turbulent market - generating more income than I need to live on. However, many retired folks are not, as they have had their funds in savings accounts, CDs, money market accounts, etc. These are the people that never actively managed their portfolios while working. Now, they do not know how, nor what to do as they watch their money market accounts paying a rate of .01%. The CDs that used to pay them around 7 or 8% only a few years ago, are now paying 2%.
My friend, you will not be retiring for near 30 years, if ever. I likely will be dead in 10 years or less, and I do not have children to worry about. You will be the one having to survive in an economically devastated USA - you and your children and grandchildren. Good luck.
agsilverthailand, couldnt agree with you more. If history is a guide, it tells us that the biggest corporations we believe they will never fall may collapse anytime when you wake up. A decade ago, if one told you that wamu will be gone, he must be an idiot. Stock is just one of many investment tools, we can't fully rely on it.
This thing was running till there was wind of a fed meeting. Good news is the result isn't any worse. I feel like this is priced in, AGNC might have seen $40 had the fed not started buying MBS. In any case, Bernanke isn't on my favorite list. One little thought: You wanna spur housing? Come out and tell the world the rate isn't going any lower. Say it flat out with some conviction and stand behind it. Your the Fed chair. Then the whole world looks and says hmm, it isn't gonna get any better than this...
That's when people who are on the sidelines start buying. That's how you spur housing. Just a thought.