Down goes the Dow

Bubble draws in more suckers while the algos churn!

Financial Advisor wrote:

Ghost of Igloi wrote:

That is why investors’ averaged 2.73% annualized over the past 20 years. But good for the investment firms to give that advice.?

The investment firms are the ones that promote annual rebalancing. Financial advisors that make money off commissions promote these kinds of transactions to fatten their own wallets. As agip pointed out, it has nothing to do with sound financial advice. Too many ignore their fiduciary responsibility.

agip wrote:

agip wrote:

2019 rally made my stock allocation too high so I'm rebalancing. I should be happy to have high prices to sell at. I'm not.

although I did read one study that found rebalancing every year is a mistake, because of market momentum. Markets that go up tend to keep going up, so selling stocks every year is a mistake. The study found that rebalancing every five years was a smarter strategy.

Once again, showing that doing nothing is usually the best investment strategy.

Unlike 99% of economics and stock market speculation, portfolio balancing has legitimate mathematics backing it. The re-balancing is effectively just controlling variance within a range. Five years would likely over expose you but for some people the variance of that might be within the target range.

Ghost of Igloi wrote:

Of course it does,. No matter, you will likely rides your clients all the way down. Then with ashen face, sell. ?

Nope. Wrong again.

OK.

This is not investment advice, but I'm taking a contrarian view on Tesla and buying all the dips. I think it's like when GOOG IPO'd and everyone said it was overvalued. I think Ralph's wrong here. Just my opinion. Long term hold IMO.

Makes perfect sense. Loses $5.00/share, $Billions in debt. Probably a great deal at $735 a share.

Ghost of Igloi wrote:

Makes perfect sense. Loses $5.00/share, $Billions in debt. Probably a great deal at $735 a share.

AMZN

what happens this week wrote:

This is not investment advice, but I'm taking a contrarian view on Tesla and buying all the dips. I think it's like when GOOG IPO'd and everyone said it was overvalued. I think Ralph's wrong here. Just my opinion. Long term hold IMO.

You've got a stronger stomach than me, in that case. Took my profits this morning while i still had some to take. Maybe when things settle down, but until then, it's got too much bearing on it for me to be comfortable holding any.

Best of luck. I do think this is a good long term bet in terms of its business.

Also a great deal at $2,000 +. I wonder why Bezos and his ex-wife sold $100s of millions in stock over the last week. No worries, Jeff needed to pay for a professional privates pic to send his hottie. Ex probably needed to buy a small chalet in Aspen. Besides, at the current pace AMZN should be $3,000 by the end of the year. Heck millennials can pay off their student loans and buy a house playing this no lose game.

Ghost of Igloi wrote:

Also a great deal at $2,000 +. I wonder why Bezos and his ex-wife sold $100s of millions in stock over the last week. No worries, Jeff needed to pay for a professional privates pic to send his hottie. Ex probably needed to buy a small chalet in Aspen. Besides, at the current pace AMZN should be $3,000 by the end of the year. Heck millennials can pay off their student loans and buy a house playing this no lose game.

Amazon has worked out well for me as a long term investment. Currently showing an unrealized gain of 71%. Thank you for the insights, though.

So, what do we think happens with TSLA today? Another crazy bounce, or is it ready to plummet?

“Tesla shares dropped another 5% in early trading Thursday morning ostensibly on a combination of the China news, and what probably is just a badly needed reality check after a 72-hour parabolic binge due to a short squeeze, gamma-hedging frenzy and increasing numbers of hysteric retail traders.”

—Zerohedge

Igy - how much did the timing belt cost on your wife's Acura?

Will we see the Dow hitting 30,000 and the Nasdaq 10,000 soon?

Sally,

To replace the timing belt you have to remove the water pump. So they recommend replacing the water pump at the same time. I believe the recommended service interval is 80,000 miles. If I recall correctly it was about $400 parts and labor.

Igy

Ghost of Igloi wrote:

Sally,

To replace the timing belt you have to remove the water pump. So they recommend replacing the water pump at the same time. I believe the recommended service interval is 80,000 miles. If I recall correctly it was about $400 parts and labor.

Igy

Oh okay. Thanks. that is less than I thought. My 2003 Acura just has 78K miles so about time to change.

seattle prattle wrote:

Ghost of Igloi wrote:

Also a great deal at $2,000 +. I wonder why Bezos and his ex-wife sold $100s of millions in stock over the last week. No worries, Jeff needed to pay for a professional privates pic to send his hottie. Ex probably needed to buy a small chalet in Aspen. Besides, at the current pace AMZN should be $3,000 by the end of the year. Heck millennials can pay off their student loans and buy a house playing this no lose game.

Amazon has worked out well for me as a long term investment. Currently showing an unrealized gain of 71%. Thank you for the insights, though.

Mine is up 35%. Glad I didn’t listen to Chicken Little.

Sold my T on Monday.

Ghost of Igloi wrote:

“Tesla shares dropped another 5% in early trading Thursday morning...

—Zerohedge

And then took another wild swing upward, right now above $780, or about 12% above the pre-trading low. Huge volume day in store today too. Looks on track to be the biggest volume ever traded for TSLA in a single trading day, same as the last three days which each also set new volume records. Last couple of days were only the 2nd and 7th biggest daily percent swings since the stock has been public. This is a nutty, volatile stock that's seen 39 daily changes more than +/- 10%.