The sources mentioned above were warning of an impending market nosedive because of excessive debt and unrealistic prices, especially in the real estate markets, a couple of years before the '08 collapse. The zero-down, sub-prime interest rate, and approval of loans to unqualified borrowers were driving factors. Early in '06 investors were advised to begin dollar-cost-averaging out of equities and into interest-bearing instruments such as long-term CDs and bonds. These warnings escalated when it became apparent that there would be a drastic shift in the makeup of the House and Senate.
Savvy investors made the move and took advantage of CDs in the 4-5% interest range, even though they didn't seem that good of a deal at the time.
The bursting of the dot-com bubble was also accurately predicted and investors were advised to begin dollar-cost averaging away from high-flying tech stocks. Those that failed to heed Greenspan's "irrational exuberance" warning paid the price.
The markets are not black magic if one does their homework.
For those that want to be proactive about managing their lifestyles, consider Kiplinger's Personal Finance Magazine. I've used it for decades and it's always been very helpful for everything from planning for one's requirement to selecting the best car and even finding that exceptional $10 bottle of wine.
Last edited by W4HAY; 05-05-2012 at 02:12 PM.
“There are two ways to conquer and enslave a nation. One is by the sword. The other is by debt.”
"The penalty good men pay for indifference to public affairs is to be ruled by evil men."