Stock Market is the bottom in?

[Gator]

Sounds like they're trying to figure out how they can cause world wide famine now. They are warning us because they are going to make it happen. Boggles the mind how we export 70% of what we grow here and we won't have enough for ourselves? Only if they start to export way more than they should. That joe biden sure has his thumb on the pulse of this country. What a great leader.

JB can’t pick his own nose. He isn’t making any decisions just reads whatever the teleprompter tells him


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[Telemark]

I'm still heavy energy and actually beefed it back up in that dip recently. I am expecting it to keep getting better (not for people, but investors) from here. I think there's a lot of room to run on natural gas prices yet. I don't see how Europe's 'Let's teach Putin' energy suicide doesn't spill over into our gas demand here. I wish I knew what our export capacity was. From the sounds of it, even if the boats ran round the clock, there's no way to make it all up in time.

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The US gas market is pretty well insulated from Europe's, but not completely. There is so much unused gas in the US that they just flare it off. Hopefully the rise in gas prices causes the US to build out gas infrastructure in order to utilize some of the excess production instead of just burning it off.

 

[Angus 1895]

I've learned that doing the opposite of what he says will make you money. He tries to give his take on what our government needs to do to turn things around. Total nut job.

It’s funny you said that.

when I signed up at my brokerage the consultant said they would short cramers picks all the time.

I have more duds from listening to Cramer than I would like to admit.

He talks way to fast also. But his show can be funny at times.

 

[Bowsnbucks]

I don’t buy anything exotic. Index funds and diversified ETFs, bond funds too. Fingers crossed and only time will tell if I am right or wrong.

Very few fund managers beat the indexes, and when a few do, it's usually only for a year or 2. Buffet's already said his family's fortune will go into a S&P 500 index fund once he's gone. His stated reasons?? LOW expense ratios and time-proven stats. The Peter Lynch's of the world come around once in a generation.

Indexes / diversification for us too. <<< The bulk here, and some "play money" for promising up & comers.

 

[yoderjac]

Very few fund managers beat the indexes, and when a few do, it's usually only for a year or 2. Buffet's already said his family's fortune will go into a S&P 500 index fund once he's gone. His stated reasons?? LOW expense ratios and time-proven stats. The Peter Lynch's of the world come around once in a generation.

Indexes / diversification for us too. <<< The bulk here, and some "play money" for promising up & comers.

Took me years of foolishness in picking stocks to eventually figuring that out. You also have to be right twice when picking stocks. You need to be right when you buy and when you sell. For me it is dollar cost averaging and low expense ratio broad market investments!

 

[Angus 1895]

How do dividends work?

as in if you buy and sell dividend stocks, what or when is it determined you earn the dividend?

Thanks

 

[yoderjac]

How do dividends work?

as in if you buy and sell dividend stocks, what or when is it determined you earn the dividend?

Thanks

The company. There is an ex dividend date.

 

[chummer]

How do dividends work?

as in if you buy and sell dividend stocks, what or when is it determined you earn the dividend?

Thanks

If you are holding the stock on a certain date you get the dividend.

 

[Angus 1895]

Thanks

 

[Bowsnbucks]

Took me years of foolishness in picking stocks to eventually figuring that out. You also have to be right twice when picking stocks. You need to be right when you buy and when you sell. For me it is dollar cost averaging and low expense ratio broad market investments!

Thankfully, I read about dollar cost averaging years ago. I / we've been investing that way for years now. I've read Buffet's advice to avg. investors in several articles over a good span of time, and he advises dollar cost averaging into whatever funds you pick. Same with Bogle, Malkiel, and several Nobel-winning economists, who also favor index funds for LOW expense ratios. I've tweaked our D.C.A. practice when the markets tank - and add extra $$$ at those times. Reinvest divs and interest. Time = friend ......... start early in life. You're paying yourself first.

 

[bwoods11]

The case can be made for investors to either 1. Buy funds and/or have the stocks of investments managed by a professional.

2. Seasoned investors can buy stocks and manage the shares themselves.

You will see success stories and some failures with each situation.

 

[yoderjac]

The case can be made for investors to either 1. Buy funds and/or have the stocks of investments managed by a professional.

2. Seasoned investors can buy stocks and manage the shares themselves.

You will see success stories and some failures with each situation.

But when you look at the statistics, you see few pros beating the general market and only for limited periods. There are winners at the casinos too. Many short term winners and few long-term winners. I think Brownsbucks has it right..."May the odds be with you..."

 

[bwoods11]

I’ve seen many millionaires who have just one or two stocks. I have neighborhood owners on my lake in Minnesota that bought their property with stocks such as CH Robinson Worldwide and Exxon Mobil.

They bought many shares over time as an employee of the company . Boom, stock goes way up . Ring the cash machine .

Same stories with Apple, UPS, etc..

Diversification is important. But … it does not mean it is the only investment strategy .

 

[yoderjac]

I’ve seen many millionaires who have just one or two stocks. I have neighborhood owners on my lake in Minnesota that bought their property with stocks such as Robinson Worldwide and Exxon Mobil.

They bought many shares over time as an employee of the company . Boom, stock goes way up . Ring the cash machine .

Same stories with Apple, UPS, etc..

Diversification is important. But … it does not mean it is the only investment strategy .

Yep. People win the lottery too. Many folks have made lots of money working for startups that eventually make it big. MIcrosoft and Apple were a handful of folks when I was young. If one got into one of these fledgling businesses when it was young, especially with employee stock options. On the other hand, most new businesses fail in the first 5 years.

Testimonials point out how impressive that man building formula is...and she will like it too. You can find ad hoc examples of great success all over the place and try to build a future on that...or, you can look at the statistics, work hard, save, live frugally, and grow wealth slowly.

Everyone gets to choose!

 

[bwoods11]

Yoder…These people did work hard ? That’s why they invested in the company they worked for and accumulated thousands of shares . You think a guy who works for Exxon Mobil buying company stock and then getting a match is comparable to the lottery ?

That is a good strategy. No one says you have to buy 500 stocks to be successful. That’s simply not true.

I’m heavy Apple, and maybe 15 other stocks along with farm land and I should retire comfortably.

 

[IkemanTx]

Yoder…These people did work hard ? That’s why they invested in the company they worked for and accumulated thousands of shares . You think a guy who works for Exxon Mobil buying company stock and then getting a match is comparable to the lottery ?

That is a good strategy. No one says you have to buy 500 stocks to be successful. That’s simply not true.

I’m heavy Apple, and maybe 15 other stocks along with farm land and I should retire comfortably.

On the whole, though, he is correct. Statistically, picking stocks doesn’t beat an index fund, especially when cost differences are taken into account.
Buying stock through your employer (typically at a discount) helps the margins, but for me it is just too many eggs in one basket for me to concentrate more investing into my place of employment. That works great if you begin your career and investing during said business’s growth phase.


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[yoderjac]

Yoder…These people did work hard ? That’s why they invested in the company they worked for and accumulated thousands of shares . You think a guy who works for Exxon Mobil buying company stock and then getting a match is comparable to the lottery ?

That is a good strategy. No one says you have to buy 500 stocks to be successful. That’s simply not true.

I’m heavy Apple, and maybe 15 other stocks along with farm land and I should retire comfortably.

I did not suggest they didn't work hard. Many worked very hard to get where they are. I'm not disputing that at all. I'm also not critiquing your investments. We all got where we are in life by a combination of our hard work or laziness, the choices we made, and shear luck. I personally worked hard, made both good and bad choices, learned a lot, and was very fortunate.

I'm also not saying that every investment has the same risk or every person has the same risk tolerance. I'm saying that higher risk means higher risk of failure and higher potential for reward, but they are not equal. Also, no one can predict the future with any precision. We can only look backwards. When we do that, dollar cost averaging into the broad market using low expense ratio mechanisms produces a positive return at a low risk over the long haul. Delaying gratification when young to increase investment in the early years is another tried and true approach with clear benefits.

I'm not at all denying there are success stories out there...

If you are doing well with your investments, I hope it continues. I'm sure there are folks that can name 15 high flyers along with real estate sectors that were high flying big name stocks when I was young that nobody even remembers today. Time horizon plays a role too.

Thanks,

Jack

 

[S.T.Fanatic]

I own 5 different individual stocks and don't plan on changing that anytime soon. My business has had a good year again (money wise) I'm guessing that I will have to dump some money into an IRA this year for the wife and I to get our income down a tax bracket. Time will tell. That money will be going into a much more broader fund. Nothing wrong with having some of each.

Having 4 kids young in life hasn't left us with much for savings but my income has gone up considerably the past few years and the kids are finally getting to the age where they are almost on their own. Hoping to be able to get fairly aggressive with an IRA or two in the near future.

 

[yoderjac]

I own 5 different individual stocks and don't plan on changing that anytime soon. My business has had a good year again (money wise) I'm guessing that I will have to dump some money into an IRA this year for the wife and I to get our income down a tax bracket. Time will tell. That money will be going into a much more broader fund. Nothing wrong with having some of each.

Having 4 kids young in life hasn't left us with much for savings but my income has gone up considerably the past few years and the kids are finally getting to the age where they are almost on their own. Hoping to be able to get fairly aggressive with an IRA or two in the near future.

Your right! That is what I did. For me, the low expense ratio broad market indexes were investment that I count on in the long term. The individual stocks I owned were "fun money". They let me play with different strategies and techniques and learn. Some did very well, some went south.

One other thing I learned over time. Trying to keep up with individual stocks, figuring out when to buy and then again when to sell, took a lot of time and effort and, overall, underperformed the indexes. I found I enjoyed putting that time into habitat projects rather than watching individual stocks so it was a double win for me when I gave up on individual stocks.

One more thing to consider about your strategy of deferring income to move down a tax bracket... I don't know your individual situation, so don't take this at advice, just something to ponder. Many financial advisor friends of mine are telling me that folks end up in higher tax brackets after retirement because of the RMD for deferred income containers. For a while, I did just the opposite. I actually transferred money from deferred accounts to Roth accounts to increase my income to the top of my bracket. I figure that tax rates are lower now than they will be in the future. I'm concerned that RMD will force high income spikes in the future and I see even higher income tax rates on high earners in the future. You may have already considered this, but if not, it is worth a look. It is not a simple calculation as paying tax today means you have less in a roth to earn over time than you would in a traditional had you not transferred.

Thanks,

Jack

 

[Bowsnbucks]

The case can be made for investors to either 1. Buy funds and/or have the stocks of investments managed by a professional.

2. Seasoned investors can buy stocks and manage the shares themselves.

You will see success stories and some failures with each situation.

No doubt.