Stock Market

[DixieWrecked]

With this crazy virus going on I decided to enter the stock market around March 20th. So far, things have been going well. I am ready to watch my stocks go down in value because I am looking at least a year out. When things finally normalize I hope that I will have made a killing. Anyone want to talk stocks? Interested in what I bought? How you pick them?

 

[fifty]

Just buy low cost index funds like a s&p 500 fund or a total market index fund. Look for an expense ratio less than 0.10%.

If you’re buying “for fun” then do individual stocks but you will lose to index funds over time 99% of the time.

That being said, you picked a really good time to enter the market (~Mar 20).

 

[Gunga]

With this crazy virus going on I decided to enter the stock market around March 20th. So far, things have been going well. I am ready to watch my stocks go down in value because I am looking at least a year out. When things finally normalize I hope that I will have made a killing. Anyone want to talk stocks? Interested in what I bought? How you pick them?

I’m a CFP (Certified Financial Planner)with 20 plus years experience. Fifty your advice is solid if you’re looking for broad based market exposure at low cost. Be careful if your buying individual stocks. You need to watch them. Understand earnings dates and COVID impact as this is a fluid situation. Many of the stocks running now Might look ugly 12 months from now as they’re over valued. ZOOM is a great example. Long term it’s probably fine. Short term It is over valued big time. As I look today We’re still 20% from the top of the market so from that perspective there’s opportunity with the appropriate time horizon. Good luck! Be well!

 

[DixieWrecked]

Fifty, that sounds like a challenge! haha

Gunga: I actually haven't bought any of the stocks like Zoom which in my opinion are inflated right now. But what I have done is bought solid companies whose financials look good, have had recent insider buying, and are on sale because their industry was hit hard. Its a riskier portfolio but there is a high upside.

 

[Nelson Vergel]

EFTs like DIA are good for the long term.

For dividends and low volatility, SPHD is good.

If you want to make money in a year's time you need to become an expert of whatever company or field you buy into. That takes more work.

 

[DixieWrecked]

SPHD is a great one. I'll look into DIA. I actually picked through SPHD and found some great ones.

 

[Vince]

Last night Jim Cramer talked about the military stocks. Even with a recession, the government should keep spending on the military.

Northrop Grumman

Raytheon Company

Huntington Ingalls Industries

TransDigm Group

 

[Jinzang]

The standard advice is, to invest for the long term, buy Vanguard Index Funds. Invest 60% in stocks and 40% in bonds. More info here.

 

[Vince]

What about a good 5G stock.

 

[Roy5678]

I invest in American Silver Eagles. For an excellent primer watch Michael Maloney's "the hidden secrets of money".

 

[fifty]

American Silver Eagles purchased from where?

 

[DragonBits]

If I had bought March 20th, I would be inclined to sell soon. I like to see close to a 50% drop in the SPX before I want to buy hand over fist.

The gain might just be a dead cat bounce.

If we enter a secular bear market, those can last 10-20 years.

It's impossible to value most stocks in this environment. The thinking I have read is 10-20 companies in the SP500 will declare bankruptcy.

Things that concern me:

1)The world will have massive debt after this is over, nations, states, many companies, individuals.

2) There will likely be permanent changes in society. Work from home will become much more common, tele-health also. Less driving, less gas, less cars, will cruise ships ever be as popular as last year? Will people want to work 50-60 hours a week to get more "stuff" or will values change? Will rural real estate become more popular while living in crowded cities less popular?

3) I have seen guesses of 30-40% increase in health care costs next year. Assuming private health care is still the norm, it's much more likely some sort of version of universal medicare

4) taxes are likely to increase at some point when we do "recover" economically.

5) We could enter a depression.

I tend to either do swing trades in micro cap stocks, or be bets after a huge move like we had in 2009. Other than those two situations, I tend to not do well if I try too hard to make money. I haven't been trading / investing in several years, but i used to be very active.

I was thinking it would be a good idea to borrow money using a second mortgage or heloc. Assuming you have equity in a house, you can get $100K + loan for 15 years for 2.5%, that has got to be a low in mortgage rates. Not sure what to do with the cash, gold interest me but it's always been a tricky investment.

What does anyone think about locking in a 15 year loan home loan for 2.5% ??

 

[gaz7718]

Read a good book first like those written by the naked trader. Most people actively investing don’t do well because they make too many mistakes and don’t put in the time to form their own independent views.

good luck. It can be fun and rewarding when you get it right.

 

[Vince]

The stock market ended the year great!

 

[CKO]

Yes it did.

 

[DixieWrecked]

since I started this thread my portfolio is up 150%. Holy cow!

 

[UCFguy01]

Bitcoin to $100K by year end

 

[DorianGray]

since I started this thread my portfolio is up 150%. Holy cow!

No one ever went broke taking a profit. And you will wish you did when your gain is only 20% or zero!