Investing 102

[GregWeld]

Well --- Personally I'm glad all you guys are in the market now.... it makes life interesting doesn't it?


What a difference two days make! Friday nice - Monday even nicer! And that's why I say -- when you have some dough -- just put it in. You can't telegraph these kinds of days. Either UP or DOWN!


Here's what I think will happen (or could happen) -- people are hoping against hope that Congress is going to solve for the fiscal cliff... so we get these spikes. My guess is - we'll get a spike or two on the downside before it's all over. Pelosi and Boenher aren't going to just roll over. They'll get greedy at some point and we'll see a disappointed market move.

Remember! We buy on those kinds of days --- not on days like Friday and today. Even if it's 50 cents or a dollar per share... it's the SWING we want if at all possible. The difference is the dollar down to a dollar up swing is 2 bucks. But over the long haul that little bit of difference isn't going to make or break an investors portfolio! It's just that if you think you're in a wild market swing period -- then if you can catch a dip -- it makes you feel better.

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Now ---- I read an article over the weekend that tried to explain the big selloff we've had as --- ALL THE RICH PEOPLE ARE SELLING THEIR BIGGEST GAINERS IN ORDER TO LOCK IN THE 15% CAP GAINS RATE....

I totally agree with "some" of that. I did it myself. Why not? I had half a million in long term cap gains... might as well capture that at 15% tax rather than wait next year - maybe it goes up from there and maybe it goes down - but they've telegraphed that they want this rate UP from here...

BUT --- THERE'S ALWAYS A BIG BUTT --- All these so called rich guys are then sitting on CASH. What are they going to do with it?? Bonds don't pay squat -- CD's? Ha! What a laugh.... Real estate? Yeah maybe.... once we see the tax rates... but my guess is - the majority will go right back into stocks.

Where else are you going to make any money on your money? I'll take 5% dividend, and maybe some capital growth, and pay 20% tax -- vs -- 2% and pay nothing (muni bonds) and be guaranteed zero capital growth.


In the end -- it will return to MAKING MONEY. The tax is just a byproduct of that.