[gsinplaya]

Great thread and awesome posts from WestCoast.

Having a sound strategy like DCA takes the emotion out of investing which is the #1 reason most fail in the market.

It's amazing the first corrective move in an extrememly bullish market turns everyone bearish and calling for a major crash.

I think anyone who follows Westcoasts advice will be very happy in the coming years.

Those without a process/plan will get shaken out of the market because there decisions are driven by emotion.

This is what seperates the winners and losers.

[WestCoast]

^ yeah most people have no emotional control.

I laugh when I see people get excited because xyz is up or down 2-3% on the day. That's a tell tale sign the person has no emotional control.

If the stock market tanks 10% tomorrow I will be in the exact same mood compared to a 10% uptick becuase the DCA investment strategy is not played on a day to day basis.

If you can't take seeing your portfolio swing 10-20% on an annual basis, you're in a world of hurt because it implies you'll get scared and sell.

[SpecialEd]

(01-27-2014 08:27 AM)WestCoast Wrote:  

This thread has made it increasingly clear to me that the average person does not know anything about finance or the economy.

Here I am talking to people with above average IQs and yet people want to argue that inflation is bad.

How come every single bull market has rampant inflation? If you can't answer that you seriously are an arm chair historian.

Even if you don't believe me (because you don't want to bother looking up the CPI for the last 100 years in any major economy) and think inflation is still "bad"... Then just follow my advice and dollar cost into indexes or buy assets like homes etc.

Fuck it I will give you the answer. inflation just means money is aggressively moving around the economy. That is why I don't care about it. As jr put it deflation means people stop spending, hence the 09 downturn. If you're going to believe otherwise that tells me everything I need to know about your finance/economic knowledge.

No one debates that inflation and economic growth go hand in hand. But should GDP growth be the number one indicator of a healthy economy? Japan has been in and out of deflation for decades now yet their GDP per capita growth has been faster than most of the OECD, including the U.S.

What you say about countering inflation is correct, but I will still argue...nonetheless that is a bad thing for the common man. What is the motive behind creating inflation essentially? Outstanding government debts are worth less overtime in real terms. You think the FED runs the printing press to make us all richer and happier? Don't be naive. A small minority of the country has made beaucoup bucks off the system. Inflation creates an environment of easy credit. If you're smart, you can leverage this and do very well. For those who aren't so financially savvy, they are essentially being robbed by the FED. The undeniable fact of the matter is...our middle class has pretty much been eliminated over the last 50 years. Nothing to be proud about my man...

[WestCoast]

^ talking about inflation and the elimination of middle class without a long explanation of capitalism is pretty much insane.

I don't want to derail all the effort I have put into this thread so I am not going to get in it with you here. If you want to debate the merits of capitalism and a middle class on another thread I will happily chime in. The chances of me pissing off people is probably 100% though lol.

Anyway everyone can believe what they like but the world is going to continue to move so better choose your beliefs wisely.

[FrenchCanadian]

Yes, inflation is great.
Ask Zimbabwe how great it was. (or Argentina)

& how does deflation stop people from spending?
Lower consumer prices stop people from spending?
Why do businesses sell more when stuff is on sale?

Keynesians_lol.... peons of gouvernment economics

[WestCoast]

http://www.bls.gov/cpi/

Do the work yourself.

[worldwidetraveler]

(01-27-2014 01:54 PM)FrenchCanadian Wrote:  

Yes, inflation is great.
Ask Zimbabwe how great it was. (or Argentina)

& how does deflation stop people from spending?
Lower consumer prices stop people from spending?
Why do businesses sell more when stuff is on sale?

Keynesians_lol.... peons of gouvernment economics

Selling more stuff doesn't mean shit. Being profitable does not equal selling more stuff.

[WestCoast]

^ lol yep.

Anywho if people really want to debate the merits of the stock market all my points are in this thread. See y'all in 30 years.

[SpecialEd]

(01-27-2014 01:37 PM)WestCoast Wrote:  

^ talking about inflation and the elimination of middle class without a long explanation of capitalism is pretty much insane.

I don't want to derail all the effort I have put into this thread so I am not going to get in it with you here. If you want to debate the merits of capitalism and a middle class on another thread I will happily chime in. The chances of me pissing off people is probably 100% though lol.

Anyway everyone can believe what they like but the world is going to continue to move so better choose your beliefs wisely.

If you don't want to discuss the disappearing act of the middle class, that's fine. But you made four or five posts defending...actually praising the wonders of inflation. I presented a counter-argument which you conveniently ignored. Apparently, anyone who doesn't share your financial perspective is either an ignoramus or is not worthy of a response. It's a little childish frankly...

[worldwidetraveler]

(01-27-2014 02:04 PM)SpecialEd Wrote:  

(01-27-2014 01:37 PM)WestCoast Wrote:  

^ talking about inflation and the elimination of middle class without a long explanation of capitalism is pretty much insane.

I don't want to derail all the effort I have put into this thread so I am not going to get in it with you here. If you want to debate the merits of capitalism and a middle class on another thread I will happily chime in. The chances of me pissing off people is probably 100% though lol.

Anyway everyone can believe what they like but the world is going to continue to move so better choose your beliefs wisely.

If you don't want to discuss the disappearing act of the middle class, that's fine. But you made four or five posts defending...actually praising the wonders of inflation. I presented a counter-argument which you conveniently ignored. Apparently, anyone who doesn't share your financial perspective is either an ignoramus or is not worthy of a response. It's a little childish frankly...

How does discussing the disappearance of the middle class going to help guys here make money?

[WestCoast]

^ exactly my point again.

I said if he wants to start a thread I will chime in just don't be surprised if my opinions piss people off. I am not going to derail this thread where I am trying to inform people about the stock market and make people money.

I don't see how that is childish.

--

On a side note I am glad I am seeing eye to eye more with WWT.

[SpecialEd]

(01-27-2014 02:11 PM)worldwidetraveler Wrote:  

(01-27-2014 02:04 PM)SpecialEd Wrote:  

(01-27-2014 01:37 PM)WestCoast Wrote:  

^ talking about inflation and the elimination of middle class without a long explanation of capitalism is pretty much insane.

I don't want to derail all the effort I have put into this thread so I am not going to get in it with you here. If you want to debate the merits of capitalism and a middle class on another thread I will happily chime in. The chances of me pissing off people is probably 100% though lol.

Anyway everyone can believe what they like but the world is going to continue to move so better choose your beliefs wisely.

If you don't want to discuss the disappearing act of the middle class, that's fine. But you made four or five posts defending...actually praising the wonders of inflation. I presented a counter-argument which you conveniently ignored. Apparently, anyone who doesn't share your financial perspective is either an ignoramus or is not worthy of a response. It's a little childish frankly...

How does discussing the disappearance of the middle class going to help guys here make money?

There is an aptly titled 'stock market 2014' thread if you want to discuss stock picking and making money. The premise of this thread was the system was a sham because it's artificially inflated and manipulated by the various central banks.

Throughout this thread, WestCoast has defended inflation and mocked those who didn't share his perspective. I think what he is saying is wrong..as do many members here. He danced around my argument by accusing me of derailing. Funny stuff...

[worldwidetraveler]

(01-27-2014 02:14 PM)WestCoast Wrote:  

^ exactly my point again.

I said if he wants to start a thread I will chime in just don't be surprised if my opinions piss people off. I am not going to derail this thread where I am trying to inform people about the stock market and make people money.

I don't see how that is childish.

--

On a side note I am glad I am seeing eye to eye more with WWT.

I need to ban myself from some topics. Especially the higher taxes on rich people threads. It's normally a waste of time because some people are more about theory and not so much about experience.

[WestCoast]

@specialed no you just childishly believe you have the right to derail a thread because my points upset you. I stated you can start a thread on inflation and I will respond because you're opening a bag of worms

For the record card guy also stated within his thread, he is the OP btw, that he wants to keep the topic to investing.

"Funny stuff" and your handle is quite appropriate right now.

--
@WWT I agree entirely. They just talk based on zero experience I even linked to great example in your rep sheet where people don't get it lol.

Capitalism is problem solving this is why the middle class will always be diminished. Has nothing to do with inflation. But I agree we are wasting our time on some of these topics, you more so than me since I am bored at the airport right now lol.

[worldwidetraveler]

(01-27-2014 02:23 PM)SpecialEd Wrote:  

There is an aptly titled 'stock market 2014' thread if you want to discuss stock picking and making money. The premise of this thread was the system was a sham because it's artificially inflated and manipulated by the various central banks.

Throughout this thread, WestCoast has defended inflation and mocked those who didn't share his perspective. I think what he is saying is wrong..as do many members here. He danced around my argument by accusing me of derailing. Funny stuff...

He actually answered it quite a few times. Inflation can be good if you are positioned correctly and most here have agreed. No matter what is happening, it's all about the way you are positioned, correct? That is why people make money in good times and bad.

You are trying to argue something entirely irrelevant to how things work.

That is ok if you want to debate that but it isn't actionable which is why Westcoast mentioned starting a different thread.

This thread was about showing cardguy why the stock market wasn't bullshit. Not about the erosion of the middle class.

You can bitch all you want about the evils of today's society. It won't matter at the end of the day and all we can do is make sure we are playing our cards to the best of our abilities.

[WestCoast]

^ correctly understanding my posts as usual WWT. Trying to keep the points to what can be done.

[SpecialEd]

(01-27-2014 02:26 PM)WestCoast Wrote:  

@specialed no you just childishly believe you have the right to derail a thread because my points upset you. I stated you can start a thread on inflation and I will respond because you're opening a bag of worms

I'm sorry but when so many posts were on the topic of inflation to accuse me of derailing the thread is utterly laughable. The stock market is intricately tied to inflation...people wouldn't invest in it if their cash held it's value.

Quote:

"Funny stuff" and your handle is quite appropriate right now.

I am delighted that you feel the need to update your post..as half-witty remarks gradually come to you, makes me feel important.

You can have the last word.

[FrenchCanadian]

(01-27-2014 01:55 PM)WestCoast Wrote:  

http://www.bls.gov/cpi/

Do the work yourself.

I have.



The Government doesn't give a fuck about you and will print itself to death. FYI... it also has a huge incentive about lying on the CPI, or tweaking it.
But I'll let you, do your homework on that.

Numbers, and history do not lie.

[RougeNoir]

@WestCoast, what is an ETF that behaves like the S&P500 other than SPY? It is a bit pricey for DCA for some folks.

[WestCoast]

^ man did you even read my posts lol.

Don't buy unless you're buying in lots of thousands because of the purchase fee.

Low cost brokerage is about $5. So you have to wait until you have 3-5K before you purchase.

If you buy one share of spy at near $200 and pay $5 to buy it... You lost 2.5% out of the gate.

--

I won't even bother with the other inflation comments here but will happily go and put my opinion on a thread if inflation is the topic on another one. For those really interested in understanding how rich people think I strongly suggest they read every post by WWT in the thread I linked to in his crib sheet.

[worldwidetraveler]

(01-27-2014 02:37 PM)SpecialEd Wrote:  

The stock market is intricately tied to inflation...people wouldn't invest in it if their cash held it's value.

Imagine all of those companies not having access to cash in order to expand their business. Many would have died along with the jobs they supplied.

[WestCoast]

^ you're wasting your time bro. I do love your posts though.

[FrenchCanadian]

West Coast do you love Government?

[RougeNoir]

(01-27-2014 02:55 PM)WestCoast Wrote:  

^ man did you even read my posts lol.

Don't buy unless you're buying in lots of thousands because of the purchase fee.

Low cost brokerage is about $5. So you have to wait until you have 3-5K before you purchase.

If you buy one share of spy at near $200 and pay $5 to buy it... You lost 2.5% out of the gate.

Are you talking 3-5K per monthly investment? (Month 1: $5000 to pay for 25 shares @ $200, Month 2: $5000 to pay for 28 shares at $175, etc) Or, are you talking about needing to have 3-5K for the life of the investment?

[worldwidetraveler]

(01-27-2014 02:57 PM)WestCoast Wrote:  

^ you're wasting your time bro. I do love your posts though.

The good thing about forums like this is you never know who is reading.

You may not come to an agreement with the person you're debating, but there may be someone reading the thread who may get a glimpse into something they didn't think about.

Anyway, you made cardguy think a lot more about his position which means it wasn't a waste of time.