Investing 102

[GregWeld]

Todays market was just like the election! Who knew! LOL


I know some of you were thinking maybe you should sell and be out of the market depending on the outcome etc.... I hope you see why that USUALLY doesn't work out the way you think. Some very stupid sellers came in after hours and took the thing down 700 points -- and the market shrugs that off and closes up. SOMEBODY made a very bad bet -- and somebody else (the buyer) KILLED IT! OMG.

[toy71camaro]

Originally Posted by GregWeld

Todays market was just like the election! Who knew! LOL


I know some of you were thinking maybe you should sell and be out of the market depending on the outcome etc.... I hope you see why that USUALLY doesn't work out the way you think. Some very stupid sellers came in after hours and took the thing down 700 points -- and the market shrugs that off and closes up. SOMEBODY made a very bad bet -- and somebody else (the buyer) KILLED IT! OMG.

LoL. Who knew!

[WSSix]

I was bummed that I missed the early morning dip on wednesday. However, some of my choices went down again so I'm looking to make some moves again very soon. I like buying dips.

[GregWeld]

Originally Posted by WSSix

I was bummed that I missed the early morning dip on wednesday. However, some of my choices went down again so I'm looking to make some moves again very soon. I like buying dips.

My guess is -- there'll be lots of opportunities presenting themselves in the future. I'm keeping some powder dry for after January 20th.... when simply saying the wrong thing can move the markets.

When you have a big change like we've just voted in -- there's just no way to game which stocks are going to move in which direction. About the time you think you know - they'll work against you. This is when getting paid a dividend really, really helps.

There's SO MANY large items on the table --- repatriation of overseas capital.... import export bank - trade agreements - infrastructure rebuilding - tax breaks and on and on.

So my advice --- don't get greedy buying the dips -- make sure you know what you're buying -- buy smart but don't gamble. Keep some powder dry - but long term - don't be afraid.

[SSLance]

4 new Charles Schwab accounts opened up today, went in to the local branch and had them all done in about 30 minutes. Hope to have the assets fully transferred to them by Friday...

Overall a painless procedure, they seem like very nice people to deal with. Found out the CFP that helped us gets paid a salary, no commission...so there was no push or hype to do anything. Just there to help if needed.

Thanks for the recommendations everyone, can't wait to cut the Merrill Lynch\BankofAmerica ties for good.

[Vegas69]

Mortgage rates have bumped up .5% since the election. I'm already seeing talk of an inflationary period with Trump at the helm which leads to some questions.

What companies do best with higher than average inflation? Would you buy Gold in the short term? What investments are you looking at if we do enter an inflationary period?

[GregWeld]

Originally Posted by Vegas69

Mortgage rates have bumped up .5% since the election. I'm already seeing talk of an inflationary period with Trump at the helm which leads to some questions.

What companies do best with higher than average inflation? Would you buy Gold in the short term? What investments are you looking at if we do enter an inflationary period?

Big questions....... when you know the answers clue us in.

Gold is a safety play. People buy gold when they are fearful.

I have not changed my investing strategy one iota and don't plan to. It's the reason I say to buy great companies vs almost anything else. They'll manage their way.

The FED has been ROOTING for inflation for years. There's nothing wrong with inflation -- as long as it's gradual.

The news is all over the map..... and news moves the markets when there's nothing else going on. In the end -- PROFITS and TOP LINE (sales) Growth are what count.

[Vegas69]

I'm trying to get a better understanding of the economy and cycles. There are opportunities regardless of the environment. I think we just need to be aware of them.

I found this video about cycles and the economy by Ray Dalio. He's supposed to be one of the sharpest hedge fund operators.

http://www.economicprinciples.org

[SSLance]

My portfolio has been interesting to watch the past week, as I'm sure yours has been as well. Looks like to me certain groups sold off their dividend income stocks to raise cash to buy treasuries after the election. I kept my powder dry while watching and now finally today, it appears that the sell off has stopped and dividend income stocks are gaining ground again. Another added plus was the tick up in all of my remaining oil related stocks.

In years past in other investing strategies, moves like this would have spooked me a bit but I wasn't concerned at all now.

[Vegas69]

I'm not concerned about my stock holdings as I'm holding long term. I just feel there are new opportunities for growth outside of stocks in a fearful market or next cycle. While the stocks take a hit, I'd like to try to capitalize on something that thrives in a down cycle.

I'll be researching it and will share if I find some ideas.

"The money is made when the market is most pessimistic."

I don't recall where I saw this, but I think it holds the key.