The market is headed down further. Count on it. But it is time that is more important than timing. Most people cannot judge the bottom or the top, and when they attempt to time the market, they usually lose out.
I see the DJIA going down as low as 30,000, but it will rebound. This decade, I see the DJIA going to 50,000 - 80,000. This decade is very similar to the 90s. The formula that Harry Dent derived that is illustrated in his book The Great Boom Ahead is accurate. Published in 1993, he forecast the market climbing to 8,500 DJIA by the year 2000, and in 1996 amended that forecast to 12,000 by 2000.
He based this forecast on birth rate, plus what he identified as the peak of spending, age wise, which in the book was 47, he since adjusted it down to 46. Well, the baby boom generation coming into age fueled the 90s boom in the market, and the echo baby boom will do the same for the remainder of this decade. And having Trump as POTUS should only serve to enhance the performance of the market through the end of the decade. The market will do well.
My wife did not understand for a long time, but she does now. When the market goes down, she understand it is like the blue light special. She is getting shares at a reduced price when the market goes down, so that when it rebounds, it enhances her total return. She comprehends that by the end of the decade, her money most likely will quadruple from where it is right now. Prior to my advice, she had her retirement money in an account getting 1/10th of 1 %. With REAL INFLATION being around 6-9%, even during good years, one needs to make a return on investment greater than inflation to truly make money. Most people do not comprehend how inflation destroys purchasing power.
And a TIAA-CREF is just one more form of a retirement savings program. Whether that or a 401k, or others, they are designed to save money for your retirement years. One cannot predict what the market will do day to day, but as Dent pointed out, one can predict trends in the market long term. Dent has not been 100% accurate, but his formula has been proven largely true over time.
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