General Discussion
In reply to the discussion: So what happened with the DOW today −457.21 [View all]Bucky
(53,997 posts)I've been in the market a little over 20 years and bought big on all three of the major dips, thinking of market corrections as bargain-basement sales.
I've done good that way, seeing about 14% annual growth, but that may be a historical anomaly. I don't think there's any other period of time when that's possible, and I don't think we're going to see that rate of growth continue.
It's mostly a result of people with too much money putting their wealth into stocks instead of investing it in new enterprises. But that's kind of the definition of creating a market bubble: Stock prices that represent growing demand for stocks as much as they represent creation of real economic wealth. I think there's a very good chance we're in for another major correction over the next five years.