My favorite financial journalist is Brett Arends, a regular contributor to The Wall Street Journal and MarketWatch. He’s one of the very few who doesn’t have his head up his you-know-what.
Anyhow, Brett just published a tongue-in-cheek article about all the reasons the stock market is just going to keep going up and up. And I strongly encourage you to read it here.
Some of my favorites of Arend’s 30 reasons not to worry include…
- Yes, stocks look expensive compared with annual sales, net asset values, gross domestic product, the replacement cost of company assets, and the average earnings of the past 10 years. But none of that matters because valuation measures are completely irrelevant.
- You bears “just don’t get it.”
- The S&P 500 is almost three times as high today as it was in 2009. Therefore it must be three times as good a deal!
- People who aren’t bullish are losers and sissies.
- Everybody on Wall Street says this is a great time to buy stocks, and if they don’t know, who does? [Read more…] “30 Reasons Not To Worry
About A Market Crash”
Recently, a senior editor of the respected personal finance publication, Kiplinger, described the best financial move he’s ever made:
My wisest move was buying whole life insurance in the 1990s, precisely when countless books and articles mocked whole life as obsolete. My wife, Debbie, did the same. In the ten-plus years that we’ve paid $5,000 a year combined into our policies, both from extremely sound mutual-insurance companies, we’ve built substantial five-figure cash values, can borrow from them instantly at virtually no cost and haven’t paid a cent of tax on the earnings.”1
Like most people who have Bank On Yourself plans, Jeff’s only regret is probably that he didn’t put more into the policies!
It’s a virtual certainty that Jeff and Debbie’s policies are traditional dividend-paying whole life policies, rather than the specially-designed, super-charged variation used for the Bank On Yourself method.
Had Jeff and Debbie’s policies been designed the Bank On Yourself way, they’d have significantly more cash value now.
As the Dow moved through the 10,000 mark this week, a dose of reality is in order…