first let me say this, i do NOT want this thread to become a political outrage about Obama and how he sucks or how hes so great or whatever, please keep this clean from politics and on topic in off topic i know at least a few of you trade stocks, nasioc has a thread sort of like this as well. i am worried about the market volatility with the switch of the new presidents, Jim Cramer (host of mad money) is talking about how Obama wants to invest heavily in alternative energy stocks, i have a few shares in FWLT (foster wheeler) who is a maker and research company for oil drillers, i also have a few shares in CLNE (clean energy corp) which is trying to come to life by making cars compatible with natural gas (included in alternative energy) i guess my main concern/question is has the market bottomed? when is it going to bottom if it hasnt, what are you guys investing in its kind of like a group therapy for investors.. anyone have any input about anything stock market related??
October foreclosures were higher than expected and unemployment was higher than expected. This is going to get worse imo.
This is what happens when you want to raise the capitol gains tax.... The rich pull out of the stock market and find other ways of making money...
It hasn't bottomed, but I don't think it's going to continue epic losses. It's going to be volatile from day to day but I have to think some of that volatility is from panic buys and sells. Eventually it will calm down and the wild swings will decrease in magnitude. I would venture a guess that by this time next year we'll be working our way out of the hole. People need to stop listening to media hype. Does anyone recall the market tumble 6 years ago? It wasn't quite as much as this one but it still rebounded. Once people start confidently investing again the market will surge back and make a lot of people rich (or at least gain back what they lost in investments). I'm planning on moving more of my bonds to domestic markets as it turns around.
my opinion is that green stocks will be the next bubble. There are a lot of great solid companies to buy into at a steep discount right now. Believe me if I had money I'd be dumping it in. Just an example: Honeywell was around 60 now at 28ish plus they pay dividends. There are probably better deals but that's one I've been watching. There are plenty of stocks trading below book value even. Even if one were to get in now I doubt the storm would last more than a couple years before coming up at least a little. my .02 As my roommates blonde ex said "All you have to do is buy low and sell high"
+1. Just toss some disposable income in that you don't want for 5+ years. In the long term, stocks go up. You can thank me later.
Unemployment worst in 14 yrs... http://money.cnn.com/2008/11/05/news/companies/jobs_outlook/index.htm
Yeah, the stock market is a gold mine, a "once in a lifetime opportunity." Too bad I don't have any disposable income either... When major companies are 1/3, 1/4, 1/6 or more of their normal price, you can't not make huge profits.
Unless you are unfortunate enough to invest in a company that fails and subsequently doesn't receive a bailout :laugh:
alright well a little up date on my FWLT, i think it is a buy, Cramer was talking about it all last night, he said that Obama's plan with this cleaner coal idea and this alternative energy proposal. Foster wheeler is the only company in its sub group that can dish out what obama wants, they have the capability to to alot of cleaner coal techniques, and they are also in the process of buying back 19% of the company via reinvestment, it is also the lowest it has been and is soon to be picked up by people. also dow is up 248 pts!!! yay! im happy because yesterday and the day before was teh worst two day drop since 1987 what are all of you guys invested in and why?
I'm mostly in domestic and international mutual funds(I'm only purchasing int'l since they are so cheap). I own some Allianz ADR shares symbol AZ but its a relatively small chunk of my portfolio and I paid WAY too much for a couple years ago. The ones I've been looking at lately are Ford F, Citibank C, and AIG. They are all bargains right now and considering I'm not 30 yet I can hold these for a long time if they took a while to go back up. I'm just afraid to pull the trigger as any one of these could wind up being a total loss even AIG.
All i know is that in July my 98 year old grandfather took his entire life savings out fo the stock market and put it in high-rate CDs in Wellsfargo. We all thought he was ****ing insane and getting senile. Guess not. This saved him a vast sum of money and is likely the only reason he'll still be independent. Market won't really "bottom" until we know whether GM will go bankrupt. The stock market is a good gamble right now, but i wouldn't put any money in there that you'll seriously miss unless you're going long term into a stable company.
Few things: 1. Volatility is here for a while. So unless your nerves are good I would not invest in stock, maybe some index, but probably not. 2. "In the long run markets go up" is as much of a myth as "house prices always go up". 3. I don't think markets already hit bottom, there are still a few months to go until that at least, and few sell-offs. Recently was a first round of sell-offs by hedge funds, next one is due in december. Lots of bad things can happen until then. Say China slows down, decides to dump some of their export revenues onto domestic stimulus instead of buying us debt -> interest rates in US go up, markets go down. 4. Lots of talk that next 10-20 years are gonna be 'bond' market, not stock. I'd say 5-10 5. Don't think there's gonna be another bubble anytime soon. You need some lax regulation for that, some low capital gains taxes, lots leverage/liquidity. Wounds from this crisis aren't gonna heal for quite some time (I'd say 20+ years), there's gonna be a regulation backlash, CEO incentives will be changed etc. So don't count on the bubble.
Whoa whoa whoa, the CG tax hasn't gone up yet. Frankly, I think it should, as all of this is income and should be taxed as such (ie. you pay income tax rates on income). We're near the bottom. Start buying General Motors. No, I am not kidding. When considering the aggregate markets, housing prices and market values always do go up in real dollars. To quote Keynes, however, "In the long run, we're all dead" Chiming in with my useless econ degree here
Buying GM? Lol. If its gonna get some serious federal help more than likely their stock holders will be wiped out. So buying GMs senior debt might not be the worst idea, buying stocks - hm, its your money... Inflation adjusted long-term stock market returns after taxes aren't significantly higher than investing in high maturity treasuries. Depends a lot on timing of initial investment. Right now is definitely not the moment to play with it. High chances of having to wait 20-30-40 years just to break even with investing into treasuries. Adjusting for risk will make those returns even smaller compared to treasuries.
Define long run. You'd invested in a represnetative sample of the market October 28, 1929, you'd be out pacing inflation today. The key is being deversified. If you'd put money in a siungle or just a few stocks and those companies ceased to exist, you'd be ****ed. But if you're 20-30 and looking for a good retirement investment, you could do worse than a wide variety of good companies. If you're 55, you may want to look elsewhere.
Now take off taxes of that return and compare to the same amount invested in some 30year treasuries. And if anyone talks about diversification - your real income (wages etc) moves a lot with the economy, so if you're diversifying, you should short US stock indicies and hold some foreign ones Like I said, personally I would not invest into stock market at least for a few month, and after that maybe a small portion into a broad index.
All I know is that despite diversification and trying to have a more international mix my accounts are down 5k this year. Also I am no expert.
