Market plunge is starting to get ugly.
Market plunge is starting to get ugly.
Unless you're approaching retirement age, the stock market is still the best place to invest. Remember that black Monday the market was down +/-20%. Today the market was down 2.5%. For the last twelve months, the market is still up more than 10%...good luck getting that kind of return on your cds.
Inverse ETFs with a dash of options.
And I was up today.
Even though I should do it differently I usually file my taxes as early as I can (around January 17th or whenever TurboTax becomes available) and get about a $4000 combined refund.
I take that and put it into my ROTH IRA for the year, either the previous one if I haven't been doing any DCA'ing over the year or for the current one ... then I am set with that investing.
My 401k investing is more or less on Autopilot for the year most of the time. Sometimes I change the funds I invest in and sometimes I change the percentages that go into each, but usually I just let the broad diversification and the natural Dollar Cost Averaging work for me and ride out the highs and lows with my 401k.
That way I have just about $200 a month that I actively invest outside of any tax-advantaged mutual fund ... I am not an expert and I normally go with whatever seems interesting to me right then, or go on a tip from a friend. This has worked really well so far, just by accident.
If your time horizon is less than five years for the money in question ... then it has been said over-and-over: Get out of stocks.
But the likelihood that your money NOW will grow more in stocks than something else (where you need to do ZERO WORK) over 20 or 30 or 40 years is very high.
Past results are no indication of future returns ... they tell you every prospectus ... but HISTORICALLY you are going to come out OK with stocks.
Market drops = opportunity.
stock broker wrote:
Go long on Cisco,
short Citi.
I wouldn't short Citi right now. Uncertainty is what is driving Citi down. Citi is a HUGE financial firm with PLENTY of assets. It is almost time to get back into Citi. This is a great opportunity to pick up some solid stocks cheaper. Don't jump in the financial sector yet, but trust me they will be back soon enough.
Sure, buy your CDs at 5%, and with inflation, you're going to do just great!
Typical morons get into the market when it's high, panic, sell, and lose 25%. That's not the way to make money.
These corrections, dips, or whatever you want to call them are the perfect time to go bargain hunting. If you have some stock you believe in, and it fell today, then buy more -- it will go back up. Maybe not tomorrow, or Friday, or even next week...but it will.
Easy.
The flight to safety is predictable always ends up at the shepherd's barn during a storm.
Malmo is wise, Malmo is wise
No, Warren is wise, malmo only knows where to go during a storm.
Generally, during the snap-back BRK shares continue to rise before the money begins to flow back out.
I like Buffett's classic advice* to would be deal-makers, "When the phone don’t ring, you’ll know it’s me."
*and a song by his namesake, Jimmy Buffett "If the phone doesn't ring, it's me."
go long on Wellcare, you won't regret it!
[quote]Cramerica wrote:
Unless you're approaching retirement age, the stock market is still the best place to invest.
Unless you can manage your own properties. Real estate has been earning me around 16% for the last 12 years and I have control of the assets.
Rentals were "down" the last few years as the subprime market was letting a lot of renters buy a house. I had no problem in these down times. I now have twice as many people wanting a house I list for rent.
The key is to buy with cash and not to leverage your holdings. It looks good on paper to take out loans at 7% to make more money but a short down time can leave you with a serious liquidity problem that can cost you your assets.