I stopped reading at "Gentlemen."
I stopped reading at "Gentlemen."
Ms. CFA wrote:
I stopped reading at "Gentlemen."
My apologies Ms.CFA an other letsrun women. I really appreciate your input and feedback. I am really interested in finances and am hoping to further my education at university next semester.
People, we are here to discuss investments and the market. We all want to be as educated and informed as we can in order to make sound financial decisions.
I respect the CFA's and CPA's knowledge and experience and would love to learn more. They have different perspectives on things I never thought about and bring it to light. If opinion is backed by facts and research there is no need to get personal as the truth doesn't belong to anyone.
They are two different matters in my mind. Firstly, The price of stocks appear to be overvalued in terms of keeping the stock for life and profiting off the individual companies returns.
From Investopedia "The S&P 500 index includes dividends. As of March 2015, the dividend yield for the S&P 500 was 1.91%. This is below the historical average of 4.41% and close to the all-time low of 1.11% in August 2000'
Yet inspite of this, there is still money to be made on speculation and that the index continues to rise, and historically rebounds after a crash.
I just have trouble buying a company that is overpriced. Wouldnt it be unlikely to purchase part ownership of a company at these values that is not publicly traded? Instead of thinking about how much it will sell in 10-20 years, you would focus and rely on the company producing profits to get a return on investment. Today your ROI would be so small considering how much you front up to play.
From what I've seen the higher the stock price, the greater the risk and obviously the lower the margin of safety.
Thoughts?
valuation fundamentals,
Unfortunately in a bubble fundamentals don't matter. When speculators or bubble non-believers are faced with facts their arguments turn to twisting and then personal attacks. Your general assumptions are supported by market history and can be measured even against the last twenty years.
Igy
Thank you for your question. I should point out that your information regarding dividends is outdated and not all inclusive. Many stocks pay very good dividends and some of those companies have a history of annual increases in their dividend payouts. So there are some very good dividend-paying stocks.
Regarding prices, yes they are historically high. That is what happens in the ninth year of a bull market. Of course there will be a correction/crash at some point in the future, but ignore anyone who tells you they know when it will come. If you think it might be soon, sitting on your cash might be a good idea. When the downturn comes, invest then. On the other hand, this market might continue rising for years in which case you'd want tos be in on that. As I said, no one knows what will happen, so it's a gamble either way.
Good luck.
Ghost of Igloi wrote:
Nothing, this guy is a drunk loser, that's all.
Aren't you the guy who drunk posts in the Dow thread many nights?
No, but you are the loser that stalks everything I post. So sad. Your very original mindless handle.
Thanks for noticing me.
Yeah, that's you alright.
No it's you stalker Detector Dude. Like a jilted lover. Enfatuated with Igy. Can't get enough stalking can you?
Enfatuated? LOL. You're drunk again!
fidvanguard wrote:
mathematically, just put all of it in a Total Market Index Fund and dont worry about it. check in once a year to see if you need to rebalance (go to bonds, cash as you get older). dont worry about daily, monthly, or even yearly fluctuations. in the long run you should do ok.
i stagger my contributions (200 every two weeks) on the weeks when i dont have a 401k contribution. That way i am putting something in every week.
This is good advice. You will be devastated when the market falls again, and again. I am 50 and in the last market downturn (2008-2009) my account dropped like 45% and kept going down. I did not look how much it lost in dollars, but it had to be ~$200,000. It was tough to watch. But I knew that there were many other Americans who were "losing" much more. I also knew that I had 20-25 years before I would even use a dollar of it. Now it has more than doubled since 2010, maybe triples from its recession lows.
You have 32 years before your total matters, just let it be and hope for steady, consistent 9-10-11% gains over the long term. When your account "gains" 20% in the short term, be happy with yourself, but realize that it will soon swoon 10-25%.
I was young like you in the Flying 90's and we had 25-80% growth in the NASDAQ for a few years. That was when I was shoveling money into funds, thinking the growth would go on forever. One of those accounts (Vanguard U.S. Growth fund) was going strong in 98-99-00 and I was putting $5-10,000 in a year. Then the Tech bubble burst and I still have not recovered to the price levels I paid back 17 years ago ... although it is close now. But it should be 4 or 5 times higher.
You probably won't follow people's advice, but I would.
You doth protest too much.
sad wrote:
Enfatuated? LOL. You're drunk again!
And now you think I'm protesting? Your reasoning has been compromised by the booze. Have another drink. I'm laughing my ass off!
You are always stalking Igy, perhaps some Ambien will help you obsession. You family already tried intervention and that was a disaster. The pastor at the church did his part. Even your sister Sally prayed for your soul.
And yet all Detector Dude has to show for his efforts is a laundry list of handles. The toughest decision everyday is, which one should I choose, for this troll post, or that troll post? That decision is complicated by remembering the passwords for all his LRC registered handles. Sad.
Oh sorry, I didn't mean to steal one of your many handles.
Detector Dude,
You sure go to a lot of work stalking me. Have you ever pondered how you could actually do something productive? You certainly have an infatuation with Igy. Perhaps you can take your latest creation and turn it in to a wall poster, or better yet a Fat Head.
In the meantime the doctors have ordered your third and last dose for the evening.