Quote:
Originally Posted by twdm
The only people who got burned were people who panicked and fire-sold their investments, or the people who heavily leveraged and gambled money that wasn't theirs to begin with. People who truly "invested" just waited it out or put in even more money.
So let me rephrase your statement so it makes sense in your head:
If the stock market crashes, so long as you have a job and continue to pay rent, you still have a roof over you head (and you can once again wait and ride out a possible recovery)
The fact that you have a job that pays is the only reason you have a roof over your head. It is a fallacy to believe that the only reason you have a roof over your head is because you have a mortgage on the house.
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I'll be the first to admit I'm no expert on stocks. But what about the buyer who buys into say, Blackberry at $100/share to see it rise to ~$140, then eventually dwindle to <$10... you can't tell me that's a good proposition in any way/shape/form. Of course we diversify to limit overall risk, but just take as an example.
I think it's easy to say that because you're in a position to wait for the low to correct, and even take advantage of it by buying in during that low. What if you were depending on your stocks for retirement? There are MANY people who delayed retirement because of what the market did during the crash. And that also had huge implications on the economy backing up entry level workers and making it difficult to find employment, make money, spend money, stimulate the economy, etc etc.