Investing 102

[realcoray]

Originally Posted by legend

what do you guys think?

Obviously buy ammo mfgs. Sorry but that website is hilarious.

[Bucketlist2012]

Sin stocks are the way to go...

People will be smoking and drinking..More so in a down economy...

Armageddon ? Not too worried about it...Life is too short , and I will stay invested and enjoy everyday...

No hiding in a Silo for me...

[realcoray]

Originally Posted by Bucketlist2012

Sin stocks are the way to go...

People will be smoking and drinking..More so in a down economy...

Armageddon ? Not too worried about it...Life is too short , and I will stay invested and enjoy everyday...

No hiding in a Silo for me...

Yeah, assuming you think the economy will contract at all again, I'd suggest looking at areas that benefit from that. In 2008ish I was looking at Ross, assuming that with everyone pinching pennies, people that might otherwise shop somewhere more upscale would go there. I was so paranoid about more drops that I ended up pulling what I had out..

The chart tells the tale: 11$ in November 2008, 70$ today.

[GregWeld]

Originally Posted by realcoray

Yeah, assuming you think the economy will contract at all again, I'd suggest looking at areas that benefit from that. In 2008ish I was looking at Ross, assuming that with everyone pinching pennies, people that might otherwise shop somewhere more upscale would go there. I was so paranoid about more drops that I ended up pulling what I had out..

The chart tells the tale: 11$ in November 2008, 70$ today.

So what you just said ---- is EXACTLY what the average (not disparaging you in any way) person does...

They're happy as clams putting money IN when the market is high or flying... and as soon as it turns they start thinking about pulling out... MORE MONEY is pulled out at the BOTTOM of the market.

Ya know what that is?? Buy HIGH and sell LOW... and the smart money knows that to make money you have to buy low and sell high...

Look at this recent housing market for a CLASSIC EXAMPLE... people couldn't buy houses fast enough at the peak... then the minute the spigot turned off they all tried to sell which only exacerbates the downturn. The big money is buying houses NOW and buying apartments that are distressed etc... and buildings etc.

People need to recondition their thinking to be able to take advantage of things handed to them on a silver platter. A weak economy or a recession is when it's time to buy like a pig... Back the truck up and fill it up!

The people that have HUGE gains in the stock market NOW - are the ones that invested in 2008 and 2009... they're sitting on 100+% gains.

Apple shares were $82 in November of 2008.... MO was $22.... CVX was $57...


You have to start thinking "on sale" -- like the food store does and the clothing store does - and that big screen you want -- you wait til stuff goes on sale... then you pounce!

[Vince@Meanstreets]

Originally Posted by Bucketlist2012

Sin stocks are the way to go...

People will be smoking and drinking..More so in a down economy...

Armageddon ? Not too worried about it...Life is too short , and I will stay invested and enjoy everyday...

No hiding in a Silo for me...

exactly, I didn't buy all this ammo for nothing.

[Vince@Meanstreets]

Originally Posted by legend

This site is a bit wild in predicting the end of the world, but they seem to have some interesting info on when/if another financial crisis is on the way

http://truththeory.com/2012/08/18/st...something-big/

and that the govenment is getting ready for the resulting protests/unrest

http://truththeory.com/2012/08/16/th...y-one-purpose/

what do you guys think?

don't buy into the fear, if enough people cry the sky is falling, someone will make it happen. Buy 500 shares of AIG and call me in the morning.

[GregWeld]

Sorry -- But I won't even bother to click on sites like that... it's just like reading the headlines at the grocery store check out line... UFO's invade China... Big Foot really killed JFK...

[GregWeld]

Here's a very well written article on Dividend Investing -- and the possible "bubble" that people speculate about.

There's a lot of really good info in it's entirety -- but you only need to LEARN from the very last paragraph. THIS IS SO TRUE IT HURTS! When everyone was talking about dot coms -- it broke -- when everyone was flipping houses - that broke - when everyone was into gold - it peaked...

What I truly feel is different about dividend investing is that people are FINALLY learning that it makes sense to GET PAID to invest your money. So until prices just get stupid (which would drive down the yields) --- or we get into the age old war of rising interest rates competing for capital.... we're safe. But read the article when you have time because it's (IMHO) good stuff.


http://seekingalpha.com/article/8261...g_income&ifp=0

[Sieg]

But the smoking bubble is sustaining itself well:
http://finance.yahoo.com/news/altria...151915822.html

[bdahlg68]

Dividend investing is somewhat self controlling as most people watch %-yield. If lots of people buy in, share price goes up and yield goes down. Suddenly it's a bit less attractive and people stop buying. Share prices may settle back down or the dividend may increase - yield goes back up and it again becomes more attractive. All related to risk of a certain stock, but %-yield is what really keeps things in check. Most people won't buy an Altria (MO) at 0.5% yield, or Annaly (NLY) at 1% yield. These types of things really make it dividend investing a good long term strategy and somewhat immune to bubbles - only heating up and cooling off.