Was anyone fortunate enough to pull their money out of the Dow Jones back when it was 14,500?

Question

I told my parents to.. but they dont listen to my financial advise. I also told them to invest in gold back when it was at $850..

Answer 1

Its probably a good thing they dont listen.  You should never try to time the market.  They should be practicing dollar cost averaging and buying when the market is down.  Gold and other precious metals and commodities will go down as the dollar goes up.

Answer 2

The DOW is just an average...not everything has lost money since the DOW came down from there...

...stocks or funds in energy, metals, ag chemicals/ equipment, materials, shipping, rails,  even some techs are higher than they were in Oct of '07...plus the IPOs of VMW and/or V could have balanced any overall " average" loss.

Answer 3

Why, good investors/traders make money in both good markets and bad markets.

If you know what you're doing you make money whether the market is going up or dow.

I for one did not take money out of the market, and have done very well, my net worth did increase substantially.

Answer 4

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Answer 5

I did last June around 14,000. It is real hard to hit the exact top.

But the DOW went up 1,000 points in around 6 weeks with recession talk and housing troubles becoming much more obvious.

The thousand point rise didn't make ANY sense to me since I had been watching the housing market closely for two years and it was coming to a head.

When it fails to make any sense I protect my money.

I rarely make large moves in or out as short term timing is more risky, harder to determine, and less profitable.

But I think it is prudent that we recognize large extremes in the market that happen, then react accordingly.

I don't like gold much. It is a way to "store" wealth but not so much a way to create wealth. Companies make profits, gold doesn't.  

You can "profit" from trading gold but other than inflation it lacks the upward bias of companies producing profits and creating wealth.