Date: Mon, 29 Oct 2007 09:50:56 -0500
From: "learnfpga@gmail.com" 
Newsgroups: misc.invest.financial-plan
Subject: Re: Long Term Goal
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On Oct 26, 12:24 pm, "Elle" 
wrote:
>  wrote
>
>
>
>
>
> > Looks like you are not in US but in India. The rules are
> > little
> > different there. One thing is common though that you have
> > to start
> > saving early and let the compounding work.
>
> > Indian market is booming and so typical index funds
> > returns pale in
> > front of mutual fund returns. So in Indian market it is
> > better to
> > invest in actively managed funds and if you can spend time
> > then in
> > individual stocks too. There are lot of inefficiencies in
> > the market
> > and the money managers can tap to get extremely good
> > returns unlike in
> > US where its a very hard thing to do, this being a more
> > mature market.
>
> Just saying: I am a U.S. citizen, along with I bet the
> majority of regular posters here. All are well-versed in the
> merits of diversity, but this is typically with overwhelming
> attention to the historical behavior of U.S. markets and
> U.S. mutual fund companies, U.S. brokerages, etc. I hesitate
> to comment on those who are citizens of other countries and
> investing from a locale within those countries. U.S. markets
> are more mature, but also they are, it seems to me, fairly
> reliably regulated. Can we say the same about, for one,
> Indian markets or companies that invest on behalf of
> individuals from within India? Inflation can go rampant in
> countries lacking "maturity." As recently as the 1980s, for
> example, Israel saw inflation rates in excess of 100% a
> year. The first time Israel inflation fell to the single
> digits since 1970 was in the mid-1990s. Inflation is a
> significant consideration for those investing for the long
> term in the U.S. Just the uncertainty of inflation by itself
> is enough to give me pause when making suggestions to
> someone in another country.- Hide quoted text -
>
> - Show quoted text -

I totally agree that inflation is a big risk. And like you said in
booming overheated markets inflations can be very high too. But having
said that, one has to have some strategy of investing for long term.
If inflation goes like it did during great depression then no ones is
safe. However one cannot and should not stop planning for retirement.
Just my $3.00, taking inflation into account.... ....   :)


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