Bitcoin or Money?

[TwoTankAmin]

I spent the last13 years of my working in the investment field. I became a stock broker, a certified financial planner and a registered investment advisor in the end. I had to retire from all of that when I had to care for my elderly parents and sheppared them though their final years. I began managing the family money in 1981.

Today my brother and I, 2 old bachelors, live in a love home on 7.5 acres of woods in a wealthy area. We are the poor poeple in the small house. We are able to afford to live here because of how I managed the family investments. About 80% on my income is generated from dividends on the stocks I own which are purchased specifically for that.

Pension consulting involves asset allocation, management selection and diversification. It has a very long term approach. So, we used to generate reports every quarter. Without going into all the details, one of the things we monitor is a quarterly 10 year moving average.

For those who might be interested in one of the few times the maket did not show a positive return for rolling 10 year periods was due to the Crash of 29. Two situations exisited then which have not been repeated until recently. The first was people got caught up in the up markets prior to the crash and one could buy stock putting up only 10%. That is very far from what is now allowed. The FDIC insures banks wont fail taking depositors money with them.

The second factor which really precipitated the crash was the use of tariffs

AI Overview
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The Smoot-Hawley Tariff Act of 1930, enacted in the wake of the 1929 stock market crash, significantly worsened the Great Depression by raising tariffs on imports, leading to retaliatory measures and a sharp decline in international trade.

Here's a more detailed explanation:

The Smoot-Hawley Tariff Act: This act, signed into law by President Hoover, raised import duties to protect American businesses and farmers from the economic downturn.

Retaliatory Tariffs:
Other countries responded to the Smoot-Hawley Act by imposing their own tariffs on American goods, further hindering international trade.

Decline in International Trade:
The combined effect of the Smoot-Hawley Act and retaliatory tariffs led to a dramatic reduction in global trade, estimated to be around 66% between 1929 and 1934.

Exacerbated the Great Depression:
The sharp decline in international trade, coupled with other economic factors, exacerbated the Great Depression and its impact on global economies.

Economic Impact:
The tariffs raised prices and reduced the availability of goods and services, leading to lower incomes, reduced employment, and lower economic output in many countries.

Strained International Relations:
The Smoot-Hawley Act and the subsequent trade war strained relationships between the United States and other countries.

To quote Yogi Berra, "It's like déjà vu all over again." "A nickel ain't worth a dime anymore," "The future ain't what it used to be."

edited to fix many typos and misspellings

 

[GaryE]

If anyone wants to send me money, or bitcoin, I'll take it off your hands to solve the debate. That's from the kindness of my heart, you know.

I would unload the bitcoin and buy fish.

 

[fishorama]

Well, GaryE, maybe if they're giving away bitcoin, lol. But I'll take cold hard cash every time I'm not into fantasy games, Candy Crush Soda Saga excluded But I don't play that for money...it's not a game if real $$ are involved.

 

[jaylach]

Could you see if you would have had the insight to invest even just a few thousand into such companies as Microsoft, Xerox and such way back when they were new? You would be a multi billionaire.

 

[fishorama]

No, they'd just be part of our investment portfolio. I'd make some $$, not billions. But not lose much, if anything either, on other stocks & mutual funds. Our only sort of speculative stock are from husband's former co. Up a heck of a lot from his "stock awards", "options", etc. I can't do the math right now, I just grin & don't follow the math too hard day to day. That is very different than investing in the market & from holding to 1 stock for a big payoff...if it comes at all. We've done well by both...so far, so good. But we also know it may crumble to dust but not 0...& we're mostly ok with that in the long run. & that long run is how investing should be. It's not a lottery ticket to instant riches, it's return on investments over time.