There is no formula to know when to get back in. Dollar cost averaging is the best way to deal with the markets ups and down. You buy more shares during down times.
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There is no formula to know when to get back in. Dollar cost averaging is the best way to deal with the markets ups and down. You buy more shares during down times.
100% correct and important. The most powerful computers and advanced algorithms cannot forecast the market.
Did anyone or any computer see FAANGM coming? Or TSLA for that matter? Or SEMI?
And in a global pandemic to boot? Please...
If you wanna have a little fun and gamble with your money, that's fine. No different than Vegas or the lotto.
Building wealth is different than gambling. I hate gambling; it scares the xxxx outta me.
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Speaking of Musk, his Neuralink company broke some news today. Too bad the company is private. The science is interesting.
Those are interesting, but look at them when they went down, when they go down, they go down twice as fast and I think last time they had a problem and did much worse than 2x.
https://www.investopedia.com/articl...5/why-leveraged-etfs-are-not-longterm-bet.asp
https://thecollegeinvestor.com/4414/leveraged-etfs-dont-match-market-performance/
The bump we had in the market in March does not appear to be the much predicted market correction that everyone was talking about the previous year, correct?
Do you guys think that the March downturn acted to get the market more balanced for awhile or do we still need a major (painful) correction to get back on track? I know, it's all speculation. Again, just wondering if we had enough "correction" to stabilize things a bit.
Do you guys think that the March downturn acted to get the market more balanced for awhile or do we still need a major (painful) correction to get back on track? I know, it's all speculation. Again, just wondering if we had enough "correction" to stabilize things a bit.
Dunno, but in 20 years the world will be run by people who were home schooled by day drinkers....
TSLA split 5 for 1 today; it opened at $444. It is currently up $53 or 12%.
doitmyself,
Theres no denying there are crazy debt bubbles, millions defaulting on their mortgage, tons of corporate defaults, many retailers filing for bankruptcy (some say retail and small business apocalypse) , airlines and hotels are headed to bankruptcy, many industries in shambles, 50M+ people out of work in the past 5 months...... tons of bad news on the horizon and headed our way.
My personal opinion is that after the election there might be another market correction once the long postponed foreclosures and evictions begin that will trigger and big hit to the banking industry. Some say it’s housing bubble 2.0 and it might create a domino effect unless Trillions are pumped in weekly.
Right now everyone is making big $$$ in the markets and balances hitting new highs. I’m taking profits off the table just before the election. Not being political but keeping my eyes open to what’s happening in the big picture, not blinders on thinking everything is sunshine and roses. I got to watch what I say because I’ve been warned a few times before.
I think I sent you a PM a while back explaining how I felt that I’m not allowed to post here.....
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Remember, the stock market and the economy are 2 different things.
The stock market is owned by the ultra rich, most people only have stocks through 401K plans (pension funds) and mutual funds.
"The richest 1 per cent of Americans now account for more than half the value of equities owned by US households, according to Goldman Sachs."
Unemployment is way up, the pandemic is still raging, fires, hurricanes, etc.
Yet the market, driven by tech (FAANGM, Tesla, SEMI) is killing it.
The stock market is owned by the ultra rich, most people only have stocks through 401K plans (pension funds) and mutual funds.
"The richest 1 per cent of Americans now account for more than half the value of equities owned by US households, according to Goldman Sachs."
Unemployment is way up, the pandemic is still raging, fires, hurricanes, etc.
Yet the market, driven by tech (FAANGM, Tesla, SEMI) is killing it.
I do not know and I learned from 08 that holding cash is also a bad idea due to bias. I held cash in 08 but didn't get back into the market early so I missed the boom. For now I just pay off my mortgage, and when things become distressed I will try to refi some and buy. Last week I just paid off 2 houses, waiting and see if something happens. I am not sure if I will come out ahead but for the moment I still think we are way over inflated in a bubble, or we are in a hyper inflation. Either way I don't know what should I buy.
My father in law was trying to buy a bunch of apple stocks because of the split and he speculate that it will double in a year because of the split. I tried to talk him out of it, hopefully it works. When people like him are trying to buy all sorts of stock, you know the bubble is here and is pretty big.
What bothers me and I guess it shouldn't is how people don't invest for the future. They make crazy claims as to how it's all fixed against them, but there's no one stopping you from opening up a mutual fund account and sending them money every month. I did it for years. No conspiracy, very straightforward. I just remember look at charts of hypothetical growth of the market over the years and you could see how savings when you're young really add up over the long term. Here's an article of Warren Buffet muttering about the $300,000 haircut. Basically to him, if you spend the money now in 10, 20, 30 years, that money could be a lot more. I'm not sure what he used for a starting point and time period but basically a dollar spent now loses its ability to compound into the future. That's why when I hear of people who want to do mods on their cars or spend crazy money on rims, in 20-30 years, that kind of money could easily have been 20-50k, but people don't think like that.
https://www.livemint.com/news/world/warren-buffett-and-the-300-000-haircut-11598679417692.html
Well said. Smart investing is easy but requires discipline. I suggest to people to get with an investment house (Schwab) to work with. It takes very little to get started. Max out your 401K if you have one. As you say, keep adding to your account. PAY YOURSELF FIRST!
I drove used Hondas and Toyota pickups forever. Now I can drive any car I want. My house is paid off.
Now riding the Silicon Valley wave was a pure stroke of luck. But get started and keep at it!
If I may paraphrase you: If you die it doesn't matter; game over. If you live, you better hope you have prepared. You ain't gonna work forever.
1 more thing... It SHOULD bother you. Because you will be helping them when they are down on their luck. And I can tell you it is a lot better to be the one who can give a little than to need a little. I have been on both sides.
Good luck!
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I've been doing the 403B saving thing for 40 years and "staying the course" over the numerous downturns as recommended here.
But, based on your guys recommendations here, I am withdrawing it all in late October and stuffing it under my mattress.
Good plan??????
But, based on your guys recommendations here, I am withdrawing it all in late October and stuffing it under my mattress.
Good plan??????
All you have to do is START investing. Even if it is only 1% of your income, START INVESTING. The haves started investing. The have nots never started. By simply getting started, and not doing greedy high risk investments, you will eventually grow wealth. Owning a residence instead of renting is an investment. Putting a few % of your paycheck into a stock plan at work is great too. I've never made above average income in my entire life (well this year may be the exception, thanks stock market!) but always invested something from the age of 11 years old and i've amassed what i consider to be decent wealth. I used to mow lawns for landlords at age 11 and i bought silver coins with some of the money if anyone was wondering.
My crystal ball is cloudy and never worked right anyway. Do whatever makes you feel comfortable, but hard to really say whether that's the right move or not. Most financial advisers recommend not trying to time the market. If your crystal ball is clear you could give it a shot. I don't really recommend anything. I thought Tesla was overvalued when it was in the $500 range. The fanboys are probably just propping it up, but that could go on for a long while. Maybe it turns into something like Microsoft where at one point the stock didn't move for 10 years. I only really believe in the long term returns of the market. The short term I nave no idea and no clue. This whole market now makes no sense, but I'm glad I stayed in.
Talk to a qualified advisor, like Schwab or Fidelity. People here are oil changers and we argue over that. Ha!
Careful of what they sell you though. My advisor at Fidelity tried the sale of their management product on me. I gave them one of my accounts to do because he claimed their professionals are better than me and would do a better job. I knew better but tried it for a couple years. Their managed account couldn't beat my unmanaged account consisting of Fidelity Index 500 and Fidelity Contrafund. That's it. Finally dumped it.
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