Stock advice

[dareo]

It was worth the hassle when you could buy the property 20% down, live in 1 of the 4 units, collect rent on the other 3 in excess of your total expenses. If nothing went wrong we would live for free that month. But you know a $5k roof here, $15k eviction into a remodel there. Those cap rates are only a distant memory now. The person i sold the property to also owner occupied it but was far from cash flowing. I think they have gained 100k of equity by now but still not that great.

 

[dblshock]

slowly buy below the 200dma slowly sell above the 200dma...right now sell or short the SPX.

 

[PandaBear]

Yep. Why take on soooo much financial risks, debts, liabilities, stress and aggravation ???
Way too many people watch HGTV or some silly show and think it’s easy $$$$ to have rental properties.

I’m not directing this at Wolf cause he is a broker and knows what’s he doing.

I’m talking about fools that over leveraged themselves with crazy amount of debt to become landlords. The ‘new’ laws are designed to work against the landlords.

Indeed. On Blind there were a lot of young folks who think it is all "other people's money" and "5x leverage so 20% appreciation is enough to double your investment", with "I am an investor so I'm going to let my CPA do my math and my contractor do the work and my manager manage it", so ask me anything. Then all of a sudden they are out of money and not knowing why.

I wouldn't say stock is less risk or higher reward, but it is something you can leave the table or get into the casino whenever you feel like, unlike real estate.

 

[Wolf359]

If you are a landlord you have to keep a lot of money sitting around, like 3-6 months rent per unit, just to handle issues. Everything breaks, people stop paying, all sorts of trouble. I don't miss it at all. Stocks are the way to go now in my opinion.

I don't really have that much money sitting around. They all cash flow so usually I can fund things like heating systems/roofs etc out of monthly cash flow. If I ever needed cash though, I can get money out of my Fidelity account in about 2 days. Plus you can always charge it.

 

[Dave Hess]

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Any folks selling and taking profits off the table before the election ?

I‘m back to 90% cash.

Not getting Political, just wondering.....


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[dareo]

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Any folks selling and taking profits off the table before the election ?

I‘m back to 90% cash.

Not getting Political, just wondering.....


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Personally i'm investing as much as possible right now as i think things will work out to the upside. Stuff like energy sector still very low. REITs still very low.
Cash is nice but who knows what you are going to miss out on.

 

[Wolf359]

Personally i'm investing as much as possible right now as i think things will work out to the upside. Stuff like energy sector still very low. REITs still very low.
Cash is nice but who knows what you are going to miss out on.

Yeah, I've thought about moving to cash. But as I've never done it, not going to start now. Market never seems to do what you think it will. Some claim that it's already priced into the market, we had a 9% drop over the last few weeks, but now it's heading back up, what do you make of the last three days? You can always hear what you want to hear though, there's always a set of bulls and bears talking all the time.

 

[JeffKeryk]

Besides buying TSLA, I am staying put. Meeting with my Schwab team tomorrow...
Good luck to everyone.

 

[OppositeLocK]

If you don’t understand how markets work, or how much they fluctuate, then you shouldn’t be in them.

Or, just dollar cost average. Don’t time. You’ll be buying on the dips, and end up with a lower cost basis for your stock purchases.

I‘ve never commented on the valuation of tech companies, so don’t put words in my mouth.

The record unemployment has dropped by 50% since its peak earlier this year. That’s good news.

I'd highly advise you against insinuating someone lacks knowledge when you suggest nonsense such as averaging down without any context.

 

[Astro14]

I'd highly advise you against insinuating someone lacks knowledge when you suggest nonsense such as averaging down without any context.

I insinuated nothing.

My advice is good: investors should stay out of things they don’t understand. That comment and advice is meant for anyone reading this thread, including the OP, who clearly didn’t understand markets or investing when he started this thread.

I suggested nothing nonsensical. Dollar cost averaging is a good strategy for getting into the market. Market timing, on the other hand, is very risky, and often fails for the individual investor. The amount an investor in the market is part of an asset allocation strategy that is appropriate to their age, risk tolerance, and other factors.

I have no idea what you mean by “averaging down”.

Perhaps you would care to explain?

 

[OppositeLocK]

I insinuated nothing.

My advice is good: investors should stay out of things they don’t understand. That comment and advice is meant for anyone reading this thread, including the OP, who clearly didn’t understand markets or investing when he started this thread.

I suggested nothing nonsensical. Dollar cost averaging is a good strategy for getting into the market. Market timing, on the other hand, is very risky, and often fails for the individual investor. The amount an investor in the market is part of an asset allocation strategy that is appropriate to their age, risk tolerance, and other factors.

I have no idea what you mean by “averaging down”.

Perhaps you would care to explain?

Buying any "dips" without context is a foolish strategy. Any prior investment is a sunk cost and present or future cash outlays should be evaluated on their own merit, not put towards a potentially losing investment.

Dollar cost averaging is a strategy to buy an investment in blocks over a period of time in case there is a temporary drop(s) in the market. This not only incurs more brokerage fees but also carries with it an opportunity cost where you miss out on increases and end up with a higher average than you would have investing a lump sum.

If DCA is a risk mitigation technique for you then it's more prudent to opt for less risky investments or hedge with options instead of trying to manipulate the risk through purchase techniques.

Virtually everyone here should stick to low cost ETFs. If you don't know how to read a balance sheet or cash flow statement, and don't understand how IFRS or US GAAP works, you have no business investing in single stocks.

 

[Astro14]

Sounds like we agree, then. People shouldn't invest in things they don't understand.

I don't understand why you're being so argumentative.

I was talking about DCA as a way to get into the market, not as an individual stock picking/stock strategy.

There isn't one bit of brokerage fees in buying mutual funds, for example, the Vanguard S&P 500 Index Fund. (feel free to insert your favorite ETF here) So, determine your monthly investment, set up a debit, let it run for 3 or 4 decades.

You and I both agree that the OP shouldn't be investing in individual stocks. I recommended mutual funds and DCA as a way to grow wealth over the long term, and here you are agreeing with me by telling folks to stick to low cost ETFs. And DCA is absolutely the best way to do that.

Let's go back to what the OP said:

If there are any stock gurus here could you have a look at a mining stock called NAK.
Does this look like a good investment?
Looks a little risky to me but I'm not a stock person.
Thanks,

 

[PimTac]

Dollar Cost Averaging is a excellent way to build shares in a investment for the long term.

In the case of NAK, this should be regarded as a speculative stock and not a long term holding.

 

[Dave Hess]

Quote:
”Virtually everyone here should stick to low cost ETFs. If you don't know how to read a balance sheet or cash flow statement, and don't understand how IFRS or US GAAP works, you have no business investing in single stocks.”

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I agree low cost ETFs are the way to go for 95% of average folks wanting to invest money.

Some folks invest in single quality companies / stocks like:
Amazon, Apple, Tesla, Costco, Home Depot, Walmart, Procter and Gamble, Johnson & Johnson, Domino’s, McDonald’s, etc.... really no need to read a balance sheet or cash flow statements.

I’ve made a little money during the 10 year bull run and after the recent market hit earlier this year with very ultra basic investing style and principles. No exotic investments or high risk trading like buying 100 shares of Hertz car rental.
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[Wolf359]

I'm not really sure an EFT is better over a mutual fund if you're just buying the S&P 500 index fund. The Fidelity FXAIX S&P 500 index fund has a 0.015% expense ratio and there's no fees to buy the fund. Most S&P 500 ETFs I've looked at have expense ratios in the .02% to .04% which is higher than the Fidelity fund. Also I'm not even sure how brokerages do it now but somehow you can now buy shares without paying commission fees.

 

[parshisa]

While I'm familiar with the key differences between ETF and index fund, why would I (at the age of 35 trying to invest for long haul - roth IRA and brokerage) choose one over the other? Would greatly appreciate yalls input

 

[Wolf359]

While I'm familiar with the key differences between ETF and index fund, why would I (at the age of 35 trying to invest for long haul - roth IRA and brokerage) choose one over the other? Would greatly appreciate yalls input

I've never actually done ETFs, always mutual fund. I believe their original claim to fame was lower fees. But now mutual funds have cut their fees to the bone and as I mentioned earlier, so there's not a big fee advantage. As I see it, ETFs are traded just like stocks so you can sell them at any time. With mutual funds, you sell them and you get the pricing at the end of the date. So if the market starts to tank in the morning, you could dump your ETFs early before it goes down by the end of the day. Or if you see it starting to spike up, you could buy it now and ride it up for the rest of the day whereas with a fund, you're just buying at whatever price it settles at once the market closes. But I don't buy and sell that often so that advantage of ETFs doesn't really appeal to me. They're also supposed to be more tax efficient as they don't have to spit out capital gains like mutual funds.

 

[JeffKeryk]

While I'm familiar with the key differences between ETF and index fund, why would I (at the age of 35 trying to invest for long haul - roth IRA and brokerage) choose one over the other? Would greatly appreciate yalls input

ETFs are easy to get into if you are starting out with a small amount of cash. They can be very broad...
Mutual funds are often indexed or tied to a strategy, such as the Standard and Poors 500.

A nice low load mutual fund is a wonderful thing, especially over time.
Call your local Schwab office and set up a meeting. You will be happy you did.
Good luck and happy investing!

 

[PimTac]

ETFs can be traded like stocks. Funds usually transact at certain times during the day. It depends on the fund and the dynamic is changing. Generally you will get the end of the day NAV.

 

[Wolf359]

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Any folks selling and taking profits off the table before the election ?

I‘m back to 90% cash.

Not getting Political, just wondering.....


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Market is pretty crazy today. Up. Thought it'd be down.

When you think it will go one way, it goes the other way. Guess I'll just stay in for now.