It's gonna be a bad year for investing...

Discussion in 'The Bike Cafe' started by JTE83, Jun 26, 2008.

  1. JTE83

    JTE83 Member

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    Stocks suck right now. I'm so glad I changed 4 of my 6 mutual funds to money market, against the wishes of my crappy Citibank advisor. Maybe the Dow will go to 10,500 this year. Wish I knew how to make money when stocks go down. Long time ago I think I attempted shorting [is that the term] but they wouldn't allow it on Datek. I now got only $4,000 sitting in a Roth IRA with Scottrade. I'd rather sit in cash than lose money on a declining stock!

    Actually I'm hoping for stuff to get cheap, then I'll buy cheap and then before the market improves I'll buy stock. Or maybe I should fish for good recession proof stocks now. - Know of any?
     
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  2. nikhil sharma

    nikhil sharma New Member

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    Top Cheap Stocks to Invest In for 2017
    If you’re thinking of investing in tech stocks and want to find the best cheap tech stocks with the greatest potential for big gains, it’s important to see how technology-sector stocks are performing in the grand scheme of things.
     
  3. Froze

    Froze Well-Known Member

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    I hope the stock market collapses by that much because then I will buy as much as I can. But I think you will fine that you will be wrong. The last 10 years was bad for stocks, but the chance of that happening again for the next 10 years is slim to none...ASSUMING the world doesn't go nuts and spin off into WW3, but despite what all the Trump haters are saying the big secret is corporations love Trump which is why the stocks have gained a lot since Trump has been elected due to optimism that corporations now see with Trump, and those gains will more than likely continue. On the flip side stocks could indeed perform badly in America and Europe which may be why America and Europe want WW3 with Russia and probably China.

    Regardless of whether or not the stocks go up or down the worse thing you can do with your investments is to move them into a money market account, because over the long haul money markets and CD's do not keep up with inflation not alone gain, so you'll end up with more money than now due to the small interest but the buying power of the money you made will be less than it is now. I know that may sound crazy to you but if you look on the internet at historical gains of money markets vs even the conservative and stable large cap companies.

    As Nikhil Sharma said tech stocks will be the way to go, but never but all your eggs in one basket, also consider healthcare, information tech, transportation, and alternative energy funds. Smaller companies (small cap) do carry the most amount of risk but they also carry the most potential for highest rewards, but it's mostly luck that you end up picking the successful ones, so unless you are a big gambler I wouldn't do the small company thing but rather mid size (mid cap) companies to stunt the risk a bit, but it's up to you and what type of person you are.

    The biggest problem Americans will face is inflation due to the astronomical $20 trillion national debt that Obama put our country into at $61,500 per person, and this debt doesn't include state and local debt. The national debt doubled during Obama's watch from what Bush did, and what Bush did was bad enough, but to double it was criminally insane. Problem is the debt is so high that it would take 50 years to get it under control to where it's rational and not insane, but with America's record of presidents this control of our debt and paying it down will never happen, thus inflation will be the largest issue as America prints more currency to offset the debt which will in turn make our currency worth less and less to some day a new currency from another country will take over as the world's dominant currency, probably China's.

    Keep in mind all that I said is nothing but assumptions, the same is true with anything you read in any magazine, newspaper, media, internet, or CitiBank advisors or any other advisors; these people are all speculating, which means they really don't know, but one theory will be right, but you won't know which theory is correct until time plays out, and whichever theory proves correct does not mean that the article author or advisor that succeeded on having the correct theory will be right the next time, in fact chances are great that they will be wrong the second time around; this is why for the last 20 years real monkeys who pointed at stocks to invest outperformed mutual fund managers!
     
  4. Kerrilacy

    Kerrilacy New Member

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    All year are not same. May be next year will bring you good luck. All the best!
     
  5. Froze

    Froze Well-Known Member

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    There's a lot to this picking the right mutual fund business, stuff that most advisors won't tell you, see this: http://money.usnews.com/money/blogs...014/04/29/how-to-choose-the-right-mutual-fund In a nut shell, but read the site to get more info, focus on long term of a fund with over a 10 year history of strong returns but also a fund that outperforms most other funds in it's catagory over the long haul, a fund manager that's been there for at least 10 years especially if the fund has been performing well, a well diverisfied fund. Anyways read the site and gain a lot more info then I want to type here.
     
  6. Henrywrites

    Henrywrites Member

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    Stock valauations can vary from period to period. I couldn't really see the progress of where that action you took ended, but the reality is that it is going to be pretty difficult for you to make the right calculations at this stage when Trump is getting better with policies unlike when he first ride into power. There is need to be patient when there is losses for such losses might always end up bringing bigger profits in the future.
     
  7. Froze

    Froze Well-Known Member

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    The problem with loses is if a person has all their eggs in a mutual fund 401k for example, and they've been retired say for the last 15 years and are now 80 years old, and then suddenly one day there is a 22.6% drop like what happened in 1987 and it wipes out 23% of their income overnight. Sure if they wait long enough it should rebound but how long is long enough? How long does an 80 year person have left to wait? In the meantime they have to go back to work because they don't have enough money coming in, now who's going to hire them? be a greeter at Walmart?

    Of course for the above reason is why I don't have all my money in my 401K, I did for awhile but removed most of it to buy various rental properties, and where I live I can make at least 3 times the income off of rental property then I could have living off the interest of my 401K. Of course that is dependent on where you live, some places like California buying rental property is going to be extremely expensive and you probably won't make back on income over what you paid for it, so 401K might be the better bet in places like that. That's where doing some simple math can tell if you would be better off or worse if you bought rental property or stayed in a 401K program.
     
  8. Steve5

    Steve5 Member

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    I've always known that mutual funds could work. They're a nice means of investment for the long term. I still check my balance from time to time. I'd have to say that it's had good progress since then.
     
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