{"id":7389,"date":"2015-04-18T07:02:11","date_gmt":"2015-04-18T12:02:11","guid":{"rendered":"http:\/\/olduvai.ca\/?p=7389"},"modified":"2015-04-18T07:02:11","modified_gmt":"2015-04-18T12:02:11","slug":"money-from-heaven-path-to-hell","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=7389","title":{"rendered":"Money from Heaven, Path to Hell"},"content":{"rendered":"<h3 class=\"entry-title\"><a href=\"http:\/\/wolfstreet.com\/2015\/04\/17\/ryan-litfin-and-dale-creed-francis-money-from-heaven-path-to-hell\/\" target=\"_blank\">Money from Heaven, Path to Hell<\/a><\/h3>\n<p>What the Fed is going on?!<\/p>\n<p>The free-flowing money from the Fed appears to be \u201cMoney from heaven\u201d at this point. And in some ways it absolutely is \u2013 but only if you take advantage of it personally and decide to protect yourself by locking in these \u201cartificial\u201d gains you\u2019ve been given. Because this \u201cMoney from heaven\u201d will undoubtedly become a \u201cPath to hell.\u201d<\/p>\n<p>But it doesn\u2019t have to. Why take unnecessary risks? \u201cPaper gains\u201d aren\u2019t profits until they are realized. Millions of people are rudely reminded of this every time the stock market takes a dump. And if you\u2019re forced to sell due to a myriad of reasons such as Required Minimum Distributions, margin calls, basic income needs, college tuition, emergencies, debt balloon payments, etc. \u2013 that\u2019s precisely when \u201cpaper losses\u201d suddenly become actual losses.<\/p>\n<p>I know, I know, you might say, \u201cNo problem, I just won\u2019t sell then. I\u2019ll wait for it to come back.\u201d<\/p>\n<p>\u201cIt will come back\u201d is\u00a0<em>not<\/em>\u00a0an investment strategy! It\u2019s financial disaster. Especially as it pertains to the stock market and mutual funds, which historically have taken far longer to recover losses than in most other non-correlated investment strategies. Sorry to be the bearer of bad news: if you wait until the stock market drops, you\u2019ve already lost. You\u2019ll either lose by selling or lose by not selling and waiting. It\u2019s a lose-lose proposition.<\/p>\n<p>We might be tempted to rewrite the recent past as ancient history. The folks who had the majority of their money in mutual funds when they retired or were planning to retire around 2001 or 2008? Instead of taking profits when they could have and then continuing their growth in other non-correlated investments, they have spent all those years just trying to dig and claw their way out of the hole,\u00a0<em>hoping<\/em>\u00a0to get back to even. But \u201chope\u201d is not an investment strategy either!<\/p>\n<p>&nbsp;<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Money from Heaven, Path to Hell What the Fed is going on?! The free-flowing money from the Fed appears to be \u201cMoney from heaven\u201d at this point. And in some ways it absolutely is \u2013 but only if you take advantage of it personally and decide to protect yourself by locking in these \u201cartificial\u201d gains [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[195,303,305,312,391,4086],"class_list":["post-7389","post","type-post","status-publish","format-standard","hentry","category-economics","tag-debt","tag-fed","tag-federal-reserve","tag-financial-crisis","tag-growth","tag-investments"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/7389","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=7389"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/7389\/revisions"}],"predecessor-version":[{"id":7390,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/7389\/revisions\/7390"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7389"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7389"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7389"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}