But it is nonsense that economists and the field of economics in general are the ones proposing this.
DOW index down another ~1,000 points, 3rd day in a Week
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Investing in individual stocks is generally not advisable, unless you're just doing it to play around.
If your job offers a 401(k) or other retirement plan, you should be participating in that, especially if they offer a match of any kind. With that, you will be invested in mutual funds that invest in many companies, which helps mitigate risk.
You're not going to get rich overnight by doing that, but you will usually make steady returns, and you should be in good shape by the time you retire (assuming you're pretty young).
DO people sometimes get lucky off of investing in one company? Sure. Definitely happens. But there are also a hell of a lot of people who lose their shirt doing that, as well.
You can start with "paper trading", just to see how good you can be, or the opposite. The thing is, there is no real emotions (fear, hope, greed). It's just a game: oh well, it's going down, it's fine I'll wait. Recipe for disaster.
Never get emotional, to avoid that just don't use money that you really need now or later...
I don't see a majority of US economists advocating for universal healthcare, free college education and a state funded secondary way of education, higher minimum wages and massive expansions of social services.
In fact, not even most Democrats are doing that...
The stupid American president is commenting on the stock market.
This tweet makes absolutely no sense at all. Who is making a big mistake?
There's still a pretty big cushion before it dips under the initial boon from election day.
And people in here realize that markets constantly fluctuate right? It's been up close to 20% over the last year. Thaat's huge. It was goign to adjust at some point, so it'll go down, and then it'll go back up. This is what happens. You have to want to drive yourself insane to look at your accounts every day like this and think a drop is the end of the world
And people in here realize that markets constantly fluctuate right? It's been up close to 20% over the last year. Thaat's huge. It was goign to adjust at some point, so it'll go down, and then it'll go back up. This is what happens. You have to want to drive yourself insane to look at your accounts every day like this and think a drop is the end of the world
Come on now, you know who you are talking about. Dude is an idiot. He has no clue what he is saying.
You've got a point. Trump is still dumb to brag about the stock market, though.
If he was smarter I'd guess he's saying that publicly traded companies used to invest in their employees, but now see them as a cost burden that depress profit margins. And that reacting negatively to wage increases is a sign that these companies and the stock market have lost their way.
But lmao at our used car salesman in chief holding a view like that.
It's nice to wish for things but in the meantime, I will play by their rules in case it doesn't come true.
Just to put this "market crash" in context, Dow Jones is now at a similar level as in late December
http://www.bbc.co.uk/news/business/markets/us/djse_indu
http://www.bbc.co.uk/news/business/markets/us/djse_indu
Totally went in on SVXY and am up about 1.2K from buying on the dip. Not expecting too much, volatility seems here to stay and it is definitely not going to get as high as it was anytime soon (while Trump is president). But I can do a little profit taking later I think.
Sorry but the comment was decrying the field of economics. Specificity is important.
That is like me saying Germany is a Nazi country, because it happens that there are still Nazis in Germany.
They keep repeating it because idiot in chief said it. In reality, they have no idea what it means.
I said the original comment lacked specificity, but the general direction was correct.
American economists, blindly following capitalist dogma, have lost sense for the normative aspect of an economic system.
What the US has is not a fair system, its not a just system, its not a system that works for society, but a society that works for the system. Its a system designed by a powerful minority and tailored towards the needs of that powerful minority. And if that weren't enough, people who don't benefit off of that system are told that they do.
The data shows that thats not true, better alternatives are available and known.
American economists fail to communicate that to the people.
Who is to blame for the failure of the American system if not the people who should know the most about the economy?
30 mil uninsured Americans, insufficient healthcare for many more millions, medical bills the no. 1 reason for private bankruptcy, completely outdated educational system that leaves 70% of the population behind, comparatively low social mobility due to rampant wealth(and therefor opportunity) inequality, widespread homelessness and many more things.
Truth is that most economists don't even consider these failures of the systems, they see them as inherent to the system.
Thats wrong, they're wrong, and they deserve the shit they get.
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Investing in individual stocks is perfectly fine so long as you invest in many and not in penny stocks. Get about 8-10 different stocks and you have about the same amount of risk as a mutual fund.
That being said, I'd highly suggest anyone putting any money in the stock market to not put in many that they'll need in the near future. And if you have a 401k match with your company that's another thing.
Oh sure, I agree with that, and I believe that Buffett gives the same advice; 10 or 12 companies that you understand and can follow.
I was more referring to the people who think it's a good idea to put all of their money into ONE company. I've seen people advise putting everything into Apple, or Microsoft, or Amazon, etc, etc. And yeah, while you COULD get lucky and have this work out for you, it could very easily go the other way.
Look up two concepts: "dollar cost averaging" and "efficient capital market hypothesis." Those should explain.
Don't do this. Get an emergency fund, then put everything else into tax advantaged retirement vehicles. Check out the retirement investing thread here on ERA.
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Cool. In my experience I've beaten the market every single year that I've been investing.
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If you understand the technicals and research the history of how a company performs (ie: does it have a trend of its price going up or down after a good earnings report?) then you should be okay.
I just started with options a few months ago and tripled my starting investment. But yes, you should always assume that you'll only profit if you are matching the strategy of the large funds doing most of the trading. Unless you have a several million to manipulate the stock price with.
I just started with options a few months ago and tripled my starting investment. But yes, you should always assume that you'll only profit if you are matching the strategy of the large funds doing most of the trading. Unless you have a several million to manipulate the stock price with.
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You'll end up with a portfolio that picks things from an index.
The index manages itself. Bad companies are dropped from it and replaced with better performing ones over time.
Hopefully you'll survive a downturn.
Assuming that what some anonymous internet post is saying is true, your single experience is in no way indicative of the reality for most people (given the data). There will always be outliers who outperform the market. But if you think that even the past 9 years is indicative of anything, you're delusional.
Most stocks improved their price over the recession after it and the last recession was worse than most. So long as you don't panic sell or buy a company ready to fold under pressure long term gains are still available. If you expect to flip a stock 3 times a week and do better than the market or anything like that, that's not happening.
Actively traded brokers are pretty bad and that's what that's being compared to. The way I invest is more like a mutual fund in the first place, I don't sell that often.
No I mean if you know a stock consistently goes down, then that's a good time to short it. I'm talking about trading options which are of course higher risk for the higher reward.
Trading stocks, you might expect what like 10% annually? There's not much strategy involved with trading a stock so an index fund that you don't do worry about may make sense.
Lol nope. A coin may increase in value once every couple of years, but a right stock can double or triple In weeks time.
OK, what about the PHDs from Harvard and UChicago working for the
Geirskogul You should probably understand that in economics there is a 'yes' and a 'no' to basically everything.
we are in a bubble economy and it is due to burst any time. but its obvious that the stock market and how global corporations are doing are not directly related to the economy and how PEOPLE are doing. And i dont understand why the media and other sources treat it in this manner
I don't understand what's happening. The market has mostly recovered, but outlook is still gloomy?
Beating the "market" (which market?) in raw returns is not necessarily that notable. The key is beating it in risk-adjusted return:
https://www.investopedia.com/terms/r/riskadjustedreturn.asp
A lot of people who talk about beating the market these days are heavily invested in the tech sector, which has over-performed. But weighting heavily in any sector opens you up to addition risk due to correlation between the stocks.
Higher risk portfolios are expected to have higher average returns.
I need to hide this thread somehow. I haven't looked at my accounts and i don't want to.
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You say this as if it's something to be ashamed of!
Ignoring the noise is better for your money.