Tag Archives: CNBC

OMG DAVID STOCKMAN SAYS STOCKS ARE GOING TO “PLUNGE” 40%!!!

So says CNBC. And he might be right.

But here’s a few more CNBC headlines from the archive:

He could well be right this time. But if there is one takeaway from this, it is that you shouldn’t just sell (or buy) because David Stockman (or anyone else you see on TV) says you should. If you sold everything on April 29, 2014, after watching his interview, you’ve missed out on a 77.97% gain on the Nasdaq Composite.

And even if he is correct, it means nothing for a long-term holder. The S&P lost more than 40% of its value from the start of 2008 through mid-2009. It had fully-recovered those losses by mid-2011.

As always, don’t have money you might need in the next three years or so in equities. And don’t listen to the talking heads and time the market. It’s a crummy business model for CNBC, which is why people like Stockman get on, but it is the best way to handle the stock market.