Investing 102

[Sieg]

Originally Posted by Vegas69

I'm watching it!

Shortly after his comment (jinx) it opens up +5% and slides to -2.5%.

[ironworks]

Originally Posted by Sieg

Shortly after his comment (jinx) it opens up +5% and slides to -2.5%.

cuz I bought a 1000 shares based on Charlies advice.

[clill]

You can all go broke with me...

[Vince@Meanstreets]

Originally Posted by clill

You can all go broke with me...

you guys can put up tents in his yard, plenty of room right?

[markaaron80]

a lot of good info here

[GregWeld]

All the cash that is being pulled out of world markets -- will earn nothing (given the historically low interest rates) -- and will want to find a home (employees being put back to work). I know that I have over 4MM in cash in the account I use for discussion here. I won't try to catch a falling knife... I won't load the boat the minute I think we're headed higher... I'm patient. But that money is waiting to be put back to work.

Yields are RISING as stock prices go lower. I'm loving it.

[LuxurySportCoupe]

I finally got to the 100 page mark in this thread, and I didn't want to comment until I finished them all. But I got into a "discussion" last night on facebook that may be of interest to investing 102, or at least got me thinking about the effect on stock prices. The discussion was about people wanting to raise the minimum wage to $15 an hour (currently something like $8 here in Michigan). Since McDonald's has been mentioned a few times here, but it could apply to any retail/food company, I figured I'd ask, how do you guys think it would effect stock prices and dividend payouts? I would imagine dividend payouts would drop, at least initially, due to increasing costs, and therefore less profits. Not to mention the effects of every other sector that pays above minimum wage that may or may not give their employees a similar % increase in pay, and how much "disposable income" people in these sectors would then be willing to invest. If this becomes too political, feel free to delete it, the last thing I want to do is derail this thread. I just find it to be an interesting topic.

[ErikLS2]

Originally Posted by GregWeld

Yields are RISING as stock prices go lower. I'm loving it.

I would just remind everyone that this is the case if shares are actually bought at the lower prices. If you buy at a higher share price and it goes down, your yield doesn't go up. There are a lot of good 4% yields out there now right now.

I'm really thinking I shouldn't have posted away about my recent short term successes, might have jinxed myself. But, I do have some cash set aside for things like what is happening now, just sitting back and waiting it out for now. It's a little more than unnerving though that these first 4 days have never happened in history before though.

[GregWeld]

Originally Posted by clill

You can all go broke with me...

You do know that "pump and dump" is illegal right?? LOL

[GregWeld]

I've reminded on many occasions for you all to "remember" when the market went up daily... and making gains was easy and fun. You want to remember those periods - when we're in a stinky market like we are right now. These stinky periods are when I LOVE the dividend. Those checks are a great antiseptic to the pain of the losses of those easy gains. For those of you that are in dividend reinvesting - they're also buying shares at lower prices automatically... bringing down your average cost - and building dividend payouts in the future.

Funny how the psyche works -- if I put a '69 Camaro up for sale - and I cut the price from 100,000 to 65,000 you'd be happy! And you'd be unhappy if I raised the price from 100 to 110,000! But not if we're talking about stocks. LOL

It's summer - stocks always suck in the summer. Add to this the possible slowing growth of China -- and a possible FED interest rate hike - and this is the kind of market you get.

I'm a buyer in these kind of markets - but I ALWAYS have plenty of cash kept on the sidelines because it can always get worse! It will help your thinking - if you tip toe in rather than dive in and then watch the shares you just bought go lower.... Keep some buying power "dry". You'll feel better about it.

I'm going to spend a week rafting the middle fork of the Salmon river.... and I won't care one bit about what the stock market is doing.... thanks to the dividends.