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477
Joined
4/23/2012
Location
Huntington Beach, CA, USA
Edited Date/Time
1/23/2015 6:01am
I am not experienced in economics since I'm only 23. I been researching about getting into stocks the last couple of months.
I am blown away how high stocks are right not. Some companies are almost double they were before the last crash.
I believe we healed/grew to quickly and will have a second crash in the near future.
Here's a chart of the dow and SP 500 for an example:
I debating about selling the few stocks I have right now. Save with cash, gold, and silver. Wait a couple years and see....
What you guys thoughts? Are you planing for a second crash? Or just seeing how it will go?
I am blown away how high stocks are right not. Some companies are almost double they were before the last crash.
I believe we healed/grew to quickly and will have a second crash in the near future.
Here's a chart of the dow and SP 500 for an example:
I debating about selling the few stocks I have right now. Save with cash, gold, and silver. Wait a couple years and see....
What you guys thoughts? Are you planing for a second crash? Or just seeing how it will go?
With that in mind I think people are overly cautious but aggressive ( If that makes sense) Now that things have stabilized people are going to spend which in turn helps stocks.
I put my money in long good track record Mutual funds That way you have an Idea of what the trend is.
If your serious about putting your money toward the market I would get good sound advice with someone you trust with your life because thats pretty much what it demands.
There are online free stock market tutorials where you can put your cyber (Fake) money) in what stocks you would like to and see how it does to see how wise you are about investing.
52 billion a month was what they were printing and giving wallstreet ,not sure what it is now. I think they were going to cut 10 bil a month.
If you look they also print money to buy our own bonds,cool trick.
I sold all my stocks last year. Now my cash is in jars full of clear liquid,good as gold,i can drink it or run my truck if need be.
Or both,hehe. "Oak tree you're in my way"
If you're 23, just start investing systematically. You'll end up dollar cost averaging your way to a pretty decent nest egg if you start early.
http://www.forbes.com/sites/simonmoore/2014/10/08/heres-why-the-best-in…
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I'm not exactly sure what that means. Funds, the ones I'm talking about, are stocks.
Like I said, you want to be a playa? A stock picker? Go for it but you're gambling more than investing. If you follow the 5% rule, which just about every respectable investment adviser recommends, you will need 20 stocks in your portfolio. Even the nutjob Cramer tells people you will need to spend an hour of research per week per stock to keep informed enough to play those stocks. That's 20 hours a week of work to have a sliver of a chance to beat the market. Most don't. You want to take a few bucks to play some hunches? Fine. 5% max. Most people are FAR better off using those 20 hours to make money the way they already know how. Then buy all 500 stocks in the S&P 500 every couple of months and forget about all the research. Unless the whole market tanks, there's no way you can under perform it.
As to your question: Expect some sort of correction. When I traded, mostly SPY, I bought during those corrections. I also sold at what I thought was peaks but I don't recommend that for you. You just need to pick your spots to add to your total shares. If you are talking individual stocks, I have no advice. They can boom and bust completely and independently from the rest of the market.
The beauty of that most basic plan is that you don't have the natural human reaction of stopping when the news reports a decline in the market. If you're putting $100 towards the purchase each week, the fact that you buy more shares when the price goes down lowers your overall cost basis pretty significantly.
I'll buy an occasional individual issue now and then, but it's more for fun than anything else. My actual investing is almost purely automatic into mutual funds.
My only regret is that I didn't do this strictly in my early 20s.
Just be sure to buy solid companies, not ones with a lot of debt.
Good Luck.
According to you this has not had any effect- How can 89 billion a month into the economy have no effect ?
It's just a big Vegas casino, just with less rules and real regulation. And the people that write the rules (Congress) don't have to abide by the rules and make obscene wealth off the system while granting favors to the wealthiest, that just write them checks to do so.
If that wasn't enough, the banks and their henchmen within the government were able to sell to the government and the population the idea that they needed billions of dollars of our money to bail them out because their practices were so obscenely reckless and greedy they nearly destroyed the entire system.
The bill due to be voted on Monday (to keep the government running) includes the deletion of many reforms that were implemented after the 2008 crisis. They were injected by Republican house members with no debate or public discourse and the very language was written by the banks (who also control the Federal Reserve- it's not even a government agency). It's nothing more than robbery.
Pit Row
And, that the market is a roulette wheel based on mix of history, greed, real value, speculation & fear...and a little more greed. Let's establish that I'm not calling greed a bad-thing.
The idea that there are those that would trust the ass-holes on Wall-Street to "self-regulate" is some-where between Ironic & Tragic.
Let's be clear: the Economic Disasters of the past few decades are due to criminal behavior and mal-ntent; and, nothing has been done to truly fix it.
Real CRIMINAL PENALTIES & the Reinstatement of Glass-Steagall would be a decent start.
As for the money that is stuck in my RRSP ("401k") I am moving it into money market funds until after the upcoming correction.
I might miss a few months of further growth before it happens but I don't care. I am taking my few years of profit and am leaving the table. :^)
For some the world is always one step away from exploding and for them the stock market is no different.
Any smart person is going up tell anyone interested in investing to diversify.
You should really have money in long term and short term stocks/bonds, gold, and some cash. That includes money market etc etc etc.
It would be stupid for me to say it had zero impact, it had a little. You can't put that much money into our monetary system and not expect it to impact it a little. QE is helping the fed buy mortgage backed securities and lend banks money at a lower rate so they can keep mortgage and interest rates lower. Lower mortgage rates can result in increased housing market activity, which would in turn benefit the real economy and corporate profits, but thats not whats fueling the market.
Corporate profits have a more direct relationship to stock prices then anything else. Managers and investors focus on corporate earnings, dividends and cash flows and pay particular attention to valuations. They are the ones that drive the market and they don't buy just to buy, so the notion that simply adding money into the economy is driving the market is wrong. CEOs have become more efficient in hard times and in turn has raised corporate earnings.
In fact, if you look at the big picture, the lower interest rate is hurting some of the market. CD, some annuity products, bonds and some dividends are all being held back because of the lower interest rate that EQ is providing.
I have talked to a client of mine, who is a broker. He is definitely planning for 2015 to be a huge down year.
I am going to wait a year or two. So I can better research the market and see if I am right.
Meanwhile planning to hit the overdrive with my savings!
Oil prices have definitely dropped, which is not good in the long term.....
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