Talking stocks, trading, and investing in general

[deelonewolf]

[QUOTE=SMD;8257980]

Originally Posted by deelonewolf

If this is long term investing, put the vast majority of your equity investments in a broad based index fund (e.g., VTSMX). Dollar cost average in (ie., set up auto investments of small amounts every day) over the course of a year. This is the foundation of your long-term equity investments. If you want to dabble in individual stocks, do not put anymore than 5% of your total portfolio in any one stock. Rebalance annually.

If you have a 401(k) at work, max it out first. Basically, contribute to all the tax advantaged options you have, SEP IRA, ROTH IRA, 529 (if and when appropriate), heck even non-deductible IRAs, whatever is available to you. Depending on your current (and expected retirement) tax bracket you may want to put income generating investments in tax deferred accounts since investments that generate ordinary income are (again, depending on your bracket) taxed at higher rates than capital gains (held for more than one year). Index funds (tax efficient ones) can be held in non-retirement accounts as they generally do not generate a lot of taxable income (assuming you do not sell) and the income they generate is typically capital gains, which are (generally) taxed at a lower rate.

And read, read, read. If you don't fully understand what I mean by the above, you should seek out a financial advisor that is compensated by the hour (not percentage) and does not push specific investments with loads or other extraneous charges. Stick with the big index fund companies and use their platforms to buy small amounts of individual stocks. Vanguard, for example, allows me a certain number of commission free trades and I am sure the other big companies do the same.

Be humble enough to accept that you will never, ever outsmart the market. My wife works in a hedge fund -- you have no idea what you are up against. Construct a good portfolio and then forget about it until rebalancing time, Do not make moves based upon the day to day gyrations of the market.

Good luck.

great advice. I'm self employed and the sole owner of all my corps and llcs. very informative. I'm really good at saving and managing my money. i rarely splurge and most of the money i gain i just reinvest even if i'm in the highest tier for tax brackets for income to loan ratio for investments for the next year. I can write off a lot of expenses as i'm in retail so sometimes i stock heavy. In your opinion would still invest now and build a portfolio or invest some of it into lets say real estate and lease as long as long term gains. what is the average percentage when investing for 10+ years spreading it around with the big companies or using one of the larger companies to do it for me. . sorry for all the kind of broad questions. questions

[ejvette]

I really enjoy reading this thread the varied opinions on what the market is doing and going to do is quite interesting and everyone's outlook on the future of the market. I for one have a very positive outlook at least for the next several years my attitude about investing is be sensible be balanced don't have all your eggs in one basket if you don't have at least a piece of your egg in equities you can't possibly outperform inflation...just my 2 cents.

Originally Posted by Gaijin

Crypto is done. Crashed. Fairy dust. When I saw every ex-pat in the bar talking about this and wildly jumping in 2-3 months ago and trying to talk me into it I had a bad feel. I didn't use the words. "Ponzi Scheme" but I sure wanted to. Lots of people are panicking and selling at losses just to salvage something.

Combine this with a potential deep stock market correction and that is going to get people selling that are close to retirement to salvage something of their retirement and millennials to stop investing who are going to say. "I knew it!'

Then houses won't be selling at inflated prices as losses from cryptro and the market combined will create a shrinking pool of those wanting and able to buy a house. Real estate tanks.

If you've got the time frame ( I don't ) ride it out. Don't sell. Maybe even dollar cost average or outright buy more.


Let's not even talk about the amount of private, institutionalized and government debt being held that brought on this 8 year bull market.

Fundamentals are fine but not for long if people start closing their wallets or have no money in them.

What will be the telling curve for us on here of financial pain will be the price of Rolex. Just like it was in 2007-08 during the housing bubble.

That is what finally brought the SS Daytona speculating to an end.

I wish you all the best. I haven't the stomach or the time frame for volatility anymore.

I know I am .

Wow serious doom and gloom really hope your wrong!

]

Originally Posted by deelonewolf

If this is long term investing, put the vast majority of your equity investments in a broad based index fund (e.g., VTSMX). Dollar cost average in (ie., set up auto investments of small amounts every day) over the course of a year. This is the foundation of your long-term equity investments. If you want to dabble in individual stocks, do not put anymore than 5% of your total portfolio in any one stock. Rebalance annually.

If you have a 401(k) at work, max it out first. Basically, contribute to all the tax advantaged options you have, SEP IRA, ROTH IRA, 529 (if and when appropriate), heck even non-deductible IRAs, whatever is available to you. Depending on your current (and expected retirement) tax bracket you may want to put income generating investments in tax deferred accounts since investments that generate ordinary income are (again, depending on your bracket) taxed at higher rates than capital gains (held for more than one year). Index funds (tax efficient ones) can be held in non-retirement accounts as they generally do not generate a lot of taxable income (assuming you do not sell) and the income they generate is typically capital gains, which are (generally) taxed at a lower rate.

And read, read, read. If you don't fully understand what I mean by the above, you should seek out a financial advisor that is compensated by the hour (not percentage) and does not push specific investments with loads or other extraneous charges. Stick with the big index fund companies and use their platforms to buy small amounts of individual stocks. Vanguard, for example, allows me a certain number of commission free trades and I am sure the other big companies do the same.

Be humble enough to accept that you will never, ever outsmart the market. My wife works in a hedge fund -- you have no idea what you are up against. Construct a good portfolio and then forget about it until rebalancing time, Do not make moves based upon the day to day gyrations of the market.

Good luck.

Great sensible advice

[SMD]

[QUOTE=deelonewolf;8259999]

Originally Posted by SMD

great advice. I'm self employed and the sole owner of all my corps and llcs. very informative. I'm really good at saving and managing my money. i rarely splurge and most of the money i gain i just reinvest even if i'm in the highest tier for tax brackets for income to loan ratio for investments for the next year. I can write off a lot of expenses as i'm in retail so sometimes i stock heavy. In your opinion would still invest now and build a portfolio or invest some of it into lets say real estate and lease as long as long term gains. what is the average percentage when investing for 10+ years spreading it around with the big companies or using one of the larger companies to do it for me. . sorry for all the kind of broad questions. questions

Without seeing the entire picture I cannot possibly say whether you should invest in real estate or other things. Few things -- you say you have your own business(es). If so, set up a SEP IRA. Depending on how much you take out in salary, you can contribute up to 54,000 tax free. Best tax advantaged deal around. Vanguard offers these and can help you set one up for your business. That is first and foremost. Build a solid retirement foundation and then if you want to invest in other asset classes, then allocate again no more than 5% of your total portfolio.

You need to pick a lane, and right now you seem all over the place. Buying stocks like amazon, investing in real estate. Focus on creating a foundation for retirement, set up auto investing for dollar cost averaging and then forget about it. And quite honestly, if you have your own business, I would focus on growing that instead of real estate or picking stocks. That is where you will most likely have the best chance to earn above market rates of return. In your own business you may actually have a competitive advantage over others, when it comes to investing, you will not.

[deelonewolf]

[QUOTE=SMD;8261299]

Originally Posted by deelonewolf

Without seeing the entire picture I cannot possibly say whether you should invest in real estate or other things. Few things -- you say you have your own business(es). If so, set up a SEP IRA. Depending on how much you take out in salary, you can contribute up to 54,000 tax free. Best tax advantaged deal around. Vanguard offers these and can help you set one up for your business. That is first and foremost. Build a solid retirement foundation and then if you want to invest in other asset classes, then allocate again no more than 5% of your total portfolio.

You need to pick a lane, and right now you seem all over the place. Buying stocks like amazon, investing in real estate. Focus on creating a foundation for retirement, set up auto investing for dollar cost averaging and then forget about it. And quite honestly, if you have your own business, I would focus on growing that instead of real estate or picking stocks. That is where you will most likely have the best chance to earn above market rates of return. In your own business you may actually have a competitive advantage over others, when it comes to investing, you will not.

this answer makes the most sense in my current situation. we're definitely still growing and i have a few more businesses opening this year. just something i'd like to get into for fun as i do have some money to play with. Letting my money sit to gain a few percentages over a long period, or just keep investing in businesses that i will be able to be successful at definitely always made more sense to me. very information to take a step back and look at the bigger picture again. i appreciate your opinion and taking the time to respond brother.

[BNA/LION]

Long term investors here and believe the fundamentals are still good overall. Been waiting for this correction. I'm glad we have plenty of cash on the side. Ready to put some additional cash to work.

Hold tight and buy in if you are in it for the long haul!

[Etschell]

Originally Posted by BNALION

Long term investors here and believe the fundamentals are still good overall. Been waiting for this correction. I'm glad we have plenty of cash on the side. Ready to put some additional cash to work.

Hold tight and buy in if you are in it for the long haul!

spy 250, all the way down to 150. dollar cost average buying every 10 points down.

[Rb10chris]

Originally Posted by BNALION

Long term investors here and believe the fundamentals are still good overall. Been waiting for this correction. I'm glad we have plenty of cash on the side. Ready to put some additional cash to work.

Hold tight and buy in if you are in it for the long haul!

Exactly, there should be some GREAT buying opportunities in the coming weeks. Mostly cash right now also, I set some pretty low buy orders on some big names just in case they ever get down to where I want to load up

[AK797]

This current fall of 10% draws us down right onto the SP 200 Moving Average so where it goes from here is key, if it dips below but soon pings back up then the bull market, based on strong earnings, continues; if it stays below for a while then confidence is genuinely eroded and this could signal a 6 month bear market as happened the last two times in 11 and 16, but I think this very unlikely given the healthy state of the economy.

[Carrera911]

^
Thank you sir!

[VICI]

Originally Posted by AK797

This current fall of 10% draws us down right onto the SP 200 Moving Average so where it goes from here is key, if it dips below but soon pings back up then the bull market, based on strong earnings, continues; if it stays below for a while then confidence is genuinely eroded and this could signal a 6 month bear market as happened the last two times in 11 and 16, but I think this very unlikely given the healthy state of the economy.

Well put my friend. Looking forward to buybacks, div increases and special dividends to shareholders who will then reinvest

[NKflyer]

I think there is a greater force here than moving averages and other traditional metrics.

Tax reform and the new spending bill are literally going to double treasury bond issuance in 2018-forward. At the very same time, the Fed will supposedly be selling securities in order to shrink its $4.5 trillion balance sheet (up from <$1 trillion pre-2008). And possibly, we could have even more spending if an infrastructure bill passes.

That is all very bearish for bonds. Who is going to sop up all of this coming US debt at the present low rates? And that's assuming we don't wind up in a trade war with China, one of our biggest debt buyers.

Consumers are still extremely sensitive to borrowing costs. That is what I think has the market spooked, and rightfully so.

[Rb10chris]

weekend reading


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[rushca01]

I figured my question could be added to this thread instead of starting a new one.

Anybody deal with gold? Have a guy willing to trade me 50 combibar for an item that I currently own. I’ve never dealt with gold. His offer is the equivalent cash value of my item.

[glenn_herwig]

Originally Posted by rushca01

I figured my question could be added to this thread instead of starting a new one.

Anybody deal with gold? Have a guy willing to trade me 50 combibar for an item that I currently own. I’ve never dealt with gold. His offer is the equivalent cash value of my item.

If it’s gold by the gram be very carful. Very hard to re sell dealers will rip your eyeballs when you sell it.

[rushca01]

Originally Posted by glenn_herwig

If it’s gold by the gram be very carful. Very hard to re sell dealers will rip your eyeballs when you sell it.

Looks like one of these.

https://www.combibar.com/

[Emptywrist]

Originally Posted by BNALION

Long term investors here and believe the fundamentals are still good overall. Been waiting for this correction. I'm glad we have plenty of cash on the side. Ready to put some additional cash to work.

Hold tight and buy in if you are in it for the long haul!

Just annoyed I didn't wait two weeks before investing in stocks for the first time in my life

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[m j b]

In my limited experience, dealers will give you 10-20% under the spot price for gold, silver, etc.

I would be concerned with getting fake stuff, unless you know how to test it.

[VICI]

Originally Posted by Emptywrist

Just annoyed I didn't wait two weeks before investing in stocks for the first time in my life

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Lesson #1: do not panic!

Lesson #2: buy when things are on sale.

[Emptywrist]

Originally Posted by VICI

Lesson #1: do not panic!

Lesson #2: buy when things are on sale.

Aye, saving it until next tax year for my ISA though

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[BNA/LION]

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[tbonesteak]

Who doesn't love a trade war? What isn't to like? I'm sure that would be excellent for everyone!

[tng11]

Originally Posted by tbonesteak

Who doesn't love a trade war? What isn't to like? I'm sure that would be excellent for everyone!

Dow was up 150 points earlier this morning. It's now down more than 550. That news probably knocked off a nice 700 points. Great news for everyone!

[walds11]

Originally Posted by tng11

Dow was up 150 points earlier this morning. It's now down more than 550. That news probably knocked off a nice 700 points. Great news for everyone!

Yea, I’m glad my office is only one level

[superdog]

Originally Posted by walds11

Yea, I’m glad my office is only one level

One level, or ground floor?

[walds11]

Originally Posted by superdog

One level, or ground floor?

My bad, ground floor.

[superdog]

Originally Posted by walds11

My bad, ground floor.

Lmao.

I figured. One level on the 18th fooor would still be no good.

It’s bad today, but not so bad. I’m thinking it’s going to get worse before it geis s better.

[tng11]

Originally Posted by superdog

Lmao.

I figured. One level on the 18th fooor would still be no good.

It’s bad today, but not so bad. I’m thinking it’s going to get worse before it geis s better.

Yep, a few hundred points sounds a lot but percentage-wise it's a blip, and we're still net up in 2018.

But depending on how this trade war escalates, it could deliver a shockwave...

[locutus49]

True. What happened to free market capitalism?

Originally Posted by tng11

Yep, a few hundred points sounds a lot but percentage-wise it's a blip, and we're still net up in 2018.

But depending on how this trade war escalates, it could deliver a shockwave...

[superdog]

Originally Posted by tng11

Yep, a few hundred points sounds a lot but percentage-wise it's a blip, and we're still net up in 2018.

But depending on how this trade war escalates, it could deliver a shockwave...

I think the trade war is going to be really bad. In a number of ways. It is already hitting my industry.

Every single one of my new material vendors is saying a rate hike is happening tonight.

Personally though, I am sitting on a small fortune of used steel products. It is 90% paid for.

I just made a deal for another significant amount. Small for many of the ballers here, but pretty decent size for me. I am keeping my money in the markets hoping that over time things will do what they always appear to do, and go up. But I am investing my reserve capital, no matter what the markets do, in myself and my business.

For the next few weeks, I am buying as much used steel as I can.

[SMD]

Not going to happen.


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