Investing Talk Investing Talk    FAQ   Search   Memberlist   Usergroups   Register   Profile   Log in to check your private messages   Log in  10 Busted Investment Myths          Investing Talk Forum Index -> Mutual Funds View previous topic :: View next topic   Author Message Guest Posted: Thu Jul 10, 2008 1:03 pm    Post subject: 10 Busted Investment Myths "The market slump isn't just shredding millions of college funds and retirement accounts. It's also shredding the financial playbook that many American families had come to rely on to protect and grow their savings. Think of all the rules and beliefs that worked reliably for decades, and which have been trashed in the last year..." Wall Street Journal: http://tinyurl.com/BustedMyths Back to top   Ads Advertising Sponsor Spacey Spade Guest Posted: Thu Jul 10, 2008 8:42 pm    Post subject: Re: 10 Busted Investment Myths On Jul 10, 11:10 am, "Steven L." <sdlit...@earthlink.net> wrote: Quote: vg...@safe-mail.net wrote: "The market slump isn't just shredding millions of college funds and retirement accounts. It's also shredding the financial playbook that many American families had come to rely on to protect and grow their savings. Think of all the rules and beliefs that worked reliably for decades, and which have been trashed in the last year..." Wall Street Journal:http://tinyurl.com/BustedMyths I read this article. Actually, the conventional wisdom that "housing prices always appreciate" has NOT been "true for decades." We had a big housing slump around 1990. Lots of homeowners found themselves upside down on their mortgages through no fault of their own. OTOH, the endless series of bubbles we've experienced: the "dot.com" bubble, the housing bubble, the commodities bubble, etc., has gotten a lot of economists to question the Efficient Market Hypothesis (EMH) once again. If the market is truly "efficient" and news about overpriced assets are available to everybody, then why do these bubbles keep occurring? What are these investors betting on? -- Steven L. Email: sdlit...@earthlinkNOSPAM.net Remove the NOSPAM before replying to me. Surely, you know the masses are easily fooled by those in power... Am I being cynical in assuming that those in power are usually not very altruistic? Back to top   Ads Advertising Sponsor rick++ Guest Posted: Thu Jul 10, 2008 8:55 pm    Post subject: Re: 10 Busted Investment Myths I love those "rear view mirror" dorks who say "last year it was obvious" ... B.S. Back to top   Ads Advertising Sponsor Steven L. Guest Posted: Thu Jul 10, 2008 9:10 pm    Post subject: Re: 10 Busted Investment Myths vgenx@safe-mail.net wrote: Quote: "The market slump isn't just shredding millions of college funds and retirement accounts. It's also shredding the financial playbook that many American families had come to rely on to protect and grow their savings. Think of all the rules and beliefs that worked reliably for decades, and which have been trashed in the last year..." Wall Street Journal: http://tinyurl.com/BustedMyths I read this article. Actually, the conventional wisdom that "housing prices always appreciate" has NOT been "true for decades." We had a big housing slump around 1990. Lots of homeowners found themselves upside down on their mortgages through no fault of their own. OTOH, the endless series of bubbles we've experienced: the "dot.com" bubble, the housing bubble, the commodities bubble, etc., has gotten a lot of economists to question the Efficient Market Hypothesis (EMH) once again. If the market is truly "efficient" and news about overpriced assets are available to everybody, then why do these bubbles keep occurring? What are these investors betting on? -- Steven L. Email: sdlitvin@earthlinkNOSPAM.net Remove the NOSPAM before replying to me. Back to top   Ads Advertising Sponsor JB Guest Posted: Fri Jul 11, 2008 11:00 am    Post subject: Re: 10 Busted Investment Myths "Steven L." <sdlitvin@earthlink.net> wrote in message news:nsudnUgLRI_sqevVnZ2dnUVZ_gydnZ2d@earthlink.com... Quote: vgenx@safe-mail.net wrote: "The market slump isn't just shredding millions of college funds and retirement accounts. It's also shredding the financial playbook that many American families had come to rely on to protect and grow their savings. Think of all the rules and beliefs that worked reliably for decades, and which have been trashed in the last year..." Wall Street Journal: http://tinyurl.com/BustedMyths I read this article. Actually, the conventional wisdom that "housing prices always appreciate" has NOT been "true for decades." We had a big housing slump around 1990. Lots of homeowners found themselves upside down on their mortgages through no fault of their own. OTOH, the endless series of bubbles we've experienced: the "dot.com" bubble, the housing bubble, the commodities bubble, etc., has gotten a lot of economists to question the Efficient Market Hypothesis (EMH) once again. If the market is truly "efficient" and news about overpriced assets are available to everybody, then why do these bubbles keep occurring? What are these investors betting on? -- Steven L. Email: sdlitvin@earthlinkNOSPAM.net Remove the NOSPAM before replying to me. A Mathematician Plays the Stockmarket by Paulos has an interesting logical argument regarding EMH. From memory it goes something like this....if everyone believed the market was efficient, the prices would never change and there would be no market. When nobody believes in EMH, the market will be dynamic and efficient. I know I mangled this a bit but the basic idea makes sense to me. If that's true, blind belief in the EMH or blatent rejection of it are both incorrect. I tend to view the market as a non-stationary random process where none of the statistics can be relied upon except for historical characterizations. Back to top   Ads Advertising Sponsor Display posts from previous: All Posts1 Day7 Days2 Weeks1 Month3 Months6 Months1 Year Oldest FirstNewest First         Investing Talk Forum Index -> Mutual Funds All times are GMT Page 1 of 1   Jump to: Select a forum Investing Talk----------------Investing Talk-- MarketMutual FundsFutures - OptionsTechnical Analysis  You cannot post new topics in this forum You cannot reply to topics in this forum You cannot edit your posts in this forum You cannot delete your posts in this forum You cannot vote in polls in this forum 246 Attacks blocked Powered by phpBB © 2001, 2005 phpBB Group