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The last week, and especially TODAY, has been brutal for stocks, crypto and bonds.
- Thread starter Arta
- Start date
Depressed markets present a great buying opportunity for LT investors to scoop up high value stocks at a discount.
Liked if you think about it for a second, does the drop in sticker price REALLY speak on APPL's or MSFT's ability to generate positive cash flow and overall sustainability of their business? Because if the answer is no, the better question is why aren't YOU (generally speaking) taking advantage of the "bargain" sale?
Liked if you think about it for a second, does the drop in sticker price REALLY speak on APPL's or MSFT's ability to generate positive cash flow and overall sustainability of their business? Because if the answer is no, the better question is why aren't YOU (generally speaking) taking advantage of the "bargain" sale?
This is true. I also have read MANY stories of people setting their contribution, but never actually going into their account and choosing a fund/funds. So the money just sits in a settlement account for YEARS. So yes, at least check in to make sure it's going where it's supposed to go. Other than that, don't look at it very often or you'll go nuts.
This is the right way to look at it. I have about 23 years until my target date. Just keep on buying.
No, invest that shit right away, seriously. Like today. Do not try to time the market, or you will likely miss out. Buy and hold, and in a few decades, it'll assuredly be worth a LOT more than it is today.
I keep considering entering the market, but I also had a coworker get lucky with Gamestop and Tesla stocks and I think that's colored my opinion more towards thinking this is a way to possibly get a lot of money fast when I know it's not.
That same coworker was also a stock advisor previously so he has more knowledge than someone else given he did it as a job for a bit, plus obviously was super lucky. I think I've had to force myself to hold back and remember that this is not the way to get money fast, it's an over a large amount of time thing.
I should probably start investing a little now into some really smart places and then not really pay attention to it for a few years, but with my current debt, I'm also considering just ignoring it as I have been and continuing to pay that down until I feel more comfortable overall.
That same coworker was also a stock advisor previously so he has more knowledge than someone else given he did it as a job for a bit, plus obviously was super lucky. I think I've had to force myself to hold back and remember that this is not the way to get money fast, it's an over a large amount of time thing.
I should probably start investing a little now into some really smart places and then not really pay attention to it for a few years, but with my current debt, I'm also considering just ignoring it as I have been and continuing to pay that down until I feel more comfortable overall.
Honestly it's a good time to buy if you are starting out. It's cheaper and as long as you invest in stable companies, you are mostly guaranteed to see a return eventually.
If you're very new to investing, you should consider investing in securities that track with the market or with a particular industry that you believe will continue to grow over time. Or if your employer offers a 401k, dump money into that every paycheck and they'll usually have a ton of super basic options for risk tolerance and industry type. I would caution against trying to target specific stocks if you are brand new to investing. Take baby steps.
I started investing in mutual funds, stocks, and lightly in some crypto at the beginning of last year when everything started to pop off. I can confidently say that I am losing money rn, but I'm just continuing to invest in companies and projects I'm confident in. Hoping in the next five years it will pay off in the long run.
Well I bought for $10k. Let's see what happens soon, might invest more.
Buy I Bonds, they're offering almost 10% interest for the next 6 months, it probably will drop after that but still will be the safest investment you can make right now.
Well what specifically did you buy? The usual advice will be to invest in mutual/index funds, and greatly spread out the risk.
Thanks I appreciate it.
So this is related to the fed recently announcing the interest rate hikes I'm guessing? And as someone with no "stocks" is there any way for me to take advantage? Toss a bunch of money into Acorns? Up the % I contribute to my 401K?
Your advice is just trying to time the market as well.
With 40k in the current market, putting in 5k every week for the next 2 months is a better strategy than just throwing it in. After the dot com crash it took Amazon almost a decade to recover its value.
Lump sum vs DCA is one of those things that gets discussed a lot.
" Overall, the studies suggest that lump sum investing will outperform 12-month DCA over 60% of the time. These results aren't surprising. Statistics show the stock market is upwardly biased. Historically, the stock market has tended to provide an annual compound inflation-adjusted return of almost 7%" https://www.heraldtribune.com/story...nvesting-vs-dollar-cost-averaging/6971529001/
Ultimately it comes down to risk tolerance. Lump sum may be better on average but loss aversion means most people are more comfortable DCAing
The poster can do it your way as well. Either will work in the long run. The point is that they shouldn't be sitting on the money and doing nothing with it. And no, my way is not timing the market. The only way that would make sense is if I stated "Yeah, I don't see it going much lower, so put everything in now," which is decidedly not what I said.
I also said in a later post that they should be looking at mutual funds. I would never suggest that someone dump a large amount into one individual stock (Amazon, in your example).
That statement says it all. The stock market is "upwardly biased". Right now, that is definitely not the case and the market parameters are unlikely to change with rates increasing and no immediate change to inflation on the horizon.
DCAing over 12 months, I'd agree. Over the next 2-6 months, a lump sum is far more likely to set you back for a bit.
DNB Global Indeks A among others. Mostly index funds for long term savings.
Graham's videos can be annoying and clickbaity but he does go over some funds that you can buy into to diversify right now
youtu.be
RECESSION ALERT: The 5 BEST Index Funds To Buy ASAP
Go to http://public.com/graham and use code GRAHAM and you’ll receive a randomized free stock worth up to $1000 once you open an account! These are the Top 5...
youtu.be
Same. My first foray into options and leveraged ETFs was poorly timed, to say the least.
Thank you both! I appreciate the advice on both ends. It's still something I'm going to have to mull over.
The rule of thumb is invest in this order:
1) 401k up to employer matching
2) Roth IRA to max
3) Max out remaining 401k
That should cover the first $26,000 you have to invest.
I do total market index funds and every week I put in 1/52nd of the max. It's a braindead strategy, but passive index funds beat 90% of managed funds, and only a fraction of those who beat the market can justify their fees. Do remember that a 2008 style crash can happen at anytime and you probably will not be able to time it. I just put in money little by little and just roll with the dips.
Keep in mind, this is not official financial advice. This is just what I do because I don't think it's worth it to actively manage my investments.
Glad to see Crypto failing. Hope that trend continues, but I'm not optimistic. Would love to see the whole house of cards finally crumble though.
This is a good advice and works quite well. I pretty much do this with my 401K and IRA as well. I also hold a bit of MS, Apple and Google stock. That's it. Google could be questionable, but MS and Apple are not going anywhere. And Google is still very profitable. Some of the bigger banking stocks could be good investment as well but 2008-2009 scarred me :).
Probably should put some more money in now. Don't need any cash soon and I'm decades away from retirement.
I don't super detest crypto (I actually like and support Monero), and if they were all running through renewables I wouldn't care that much. But it's a little amusing watching some of the crypto bros freaking out now.
I wouldn't mind it if it wasn't horrible for the environment, constantly shove din my face, and repeatedly shown to be a vehicle for scams and schemes.
But yeah watching the crypto crowd freaking out in the last week or so has been pretty funny.
Stocks, Crypto, Gold, Silver. When everything is in the red and people bail, the big question is what else is there to invest in? Just sit on their money and wait for recovery?
Bonds have never been a choice recently but maybe should be considered again, even if returns are really low.
I personally believe in dividend stock. Even if their stock price is dropping too, I'm not investing in those stocks for gains. I'm doing it for the dividends. You always get the dividends from blue chip dividend stock, so I think it's always good to buy and hold those types of stock when the market is struggling.
Bonds have never been a choice recently but maybe should be considered again, even if returns are really low.
I personally believe in dividend stock. Even if their stock price is dropping too, I'm not investing in those stocks for gains. I'm doing it for the dividends. You always get the dividends from blue chip dividend stock, so I think it's always good to buy and hold those types of stock when the market is struggling.
Pokemon cards are not doing too good. Sportscards are significantly down this year too. Like 60%. Anybody who invested in trading cards a year ago got destroyed. Investing in collectibles is seriously risky.
Marvel, F1, and Star Wars cards are the new overpriced hotness. People are going to get burned buying those too.
Sealed GameCube games are a better hedge against inflation I think
Even unsealed GC games. I sold a bunch of my collection last year and made a few thousand bucks. I got $295 for Fire Emblem and $225 for Chibi Robo. Even random shit like Alien Hominid sold for around $80. DS games too, Solatorobo sold for i think $315. (Furry anime games = guaranteed winning investment!)
To expand on this: new investors shouldn't fall for yield traps. You want to investigate the equity first and go over their financials/general company health to see if the dividend payout is stable. Even a blue chip - like, I don't know, T - can cut their dividends if their the company isn't managed properly.
You also want to know what equity class the dividend paying company is in. Pending on where you invest your money could incur special tax litigations (which is why common wisdom is to hold dividend stocks in a Roth IRA rather than a regular custodian account).
On several axes--it outperforms the vast majority of actively managed situations, especially individual/retail. But also vis a vis things like collectibles above, you have to factor in how much of your time you spend on this stuff and whether that's the best way to spend your hours. Folks really like to make things complicated chasing alpha and failing.
(Also, good Peter Lynch link from the poster above, although it's confirmation bias since it follows my general view on things.)
If you have a taxable investments, you should want to realize losses. If you avoid wash sales and reinvest the proceeds in something similar, it works out to your benefit.
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Tax-Loss Harvesting: Definition and Example
Tax-loss harvesting is selling securities at a loss to offset the amount of capital gains tax owed on other investments.
The hard part is that it requires a person to get over some cognitive biases, such as loss aversion and the gambler's fallacy.
I, ironically enough, lucked into this one year when I had a loss on my retail account but also sold my RSUs. Seeing my tax bill be way lower because of it certainly made it an easier pill to swallow.If you have a taxable investments, you should want to realize losses. If you avoid wash sales and reinvest the proceeds in something similar, it works out to your benefit.
Tax-Loss Harvesting: Definition and Example
Tax-loss harvesting is selling securities at a loss to offset the amount of capital gains tax owed on other investments.www.investopedia.com
The hard part is that it requires a person to get over some cognitive biases, such as loss aversion and the gambler's fallacy.
If you have a taxable investments, you should want to realize losses. If you avoid wash sales and reinvest the proceeds in something similar, it works out to your benefit.
Tax-Loss Harvesting: Definition and Example
Tax-loss harvesting is selling securities at a loss to offset the amount of capital gains tax owed on other investments.
The hard part is that it requires a person to get over some cognitive biases, such as loss aversion and the gambler's fallacy.
Agreed, you can do that. However, I'd wager that most people don't know about that. The majority of newer investors (this board skews young I think), would be more prone to panic-selling and whining about the loss forever. For those people, I would just say "hold on to it."
This is so true.
If you're a casual investor, your mindset should be that you're in the long game.
If you're checking your investments daily or weekly and getting all up in arms during the bad times and scheduling a parade during the good times, then you're doing it wrong.
This. Plus, these are good times to bring your cost/share down if you can keep investing.
That's what I'm doing. I just added 20k to my account and have the autoinvestments set up to drip it in over time. I also sold some of the individual positions that were green in an effort to eventually get all my positions out of individual stocks as I don't have the time or care to watch them like I should.