Would you invest in the stock market?

[kyzr]

Poll questions regarding the stock market

 

[MIPS]

Poll questions regarding the stock market

You forgot to mention which "stock market"

 

[kyzr]

Poll questions regarding the stock market

You forgot to mention which "stock market"

I'm assuming the US stock market(s). IMHO there probably are higher risk ones among the NYSE, Nasdaq, and AMEX, but in general its a matter of buying a stock in any. Do you feel that ANY stock market is legitimate and your investment money won't get ripped-off by short-sellers or corporate crooks?

 

[Cuyo]

Sure, why not? It's a casino with much better odds. And like a casino, if you expect to win, you have to quit while you're ahead.

What some people lose sight of is that market price is not necissarily a good indicator of the health of the company at hand. When the market's hot, stocks can and do trade for much higher than they're actually "Worth." For example, Apple is arguably the hottest stock in tech right now. The book value per share of Apple is about $43 today, and the stock is trading for $249, nearly six times what it's actually worth; But if you buy for $249 and sell for $300, you take your money and run. Who cares what it was "Actually" worth?

 

[kyzr]

Sure, why not? It's a casino with much better odds. And like a casino, if you expect to win, you have to quit while you're ahead.

What some people lose sight of is that market price is not necissarily a good indicator of the health of the company at hand. When the market's hot, stocks can and do trade for much higher than they're actually "Worth." For example, Apple is arguably the hottest stock in tech right now. The book value per share of Apple is about $43 today, and the stock is trading for $249, nearly six times what it's actually worth; But if you buy for $249 and sell for $300, you take your money and run. Who cares what it was "Actually" worth?

Ah a market "timer". All well and good until some big money player beats you to it and after you buy at $249, it drops to $150 <poof>. They sold it short and you got hosed. Look at BP as an example. A bad break and the market dropped like a rock. Merck's Vioxx dropped the stock to half its value overnight. Look at Lehman, and the big banks, they went south fast. How about the GSEs Fannie & Freddie? AIG, Enron, etc.

Its Russian Roulette with only one empty and 5 bullets. Good Luck!!

 

[MIPS]

Poll questions regarding the stock market

You forgot to mention which "stock market"

Do you feel that ANY stock market is legitimate and your investment money won't get ripped-off by short-sellers or corporate crooks?

Personally I feel the equities exchange on Mars looks fairly attractive but beyond that NO.

 

[Cuyo]

Sure, why not? It's a casino with much better odds. And like a casino, if you expect to win, you have to quit while you're ahead.

What some people lose sight of is that market price is not necissarily a good indicator of the health of the company at hand. When the market's hot, stocks can and do trade for much higher than they're actually "Worth." For example, Apple is arguably the hottest stock in tech right now. The book value per share of Apple is about $43 today, and the stock is trading for $249, nearly six times what it's actually worth; But if you buy for $249 and sell for $300, you take your money and run. Who cares what it was "Actually" worth?

Ah a market "timer". All well and good until some big money player beats you to it and after you buy at $249, it drops to $150 <poof>. They sold it short and you got hosed. Look at BP as an example. A bad break and the market dropped like a rock. Merck's Vioxx dropped the stock to half its value overnight. Look at Lehman, and the big banks, they went south fast. How about the GSEs Fannie & Freddie? AIG, Enron, etc.

Its Russian Roulette with only one empty and 5 bullets. Good Luck!!

Absolutely right. As a retirement fund, college fund for kids, life savings; not a good idea. You should be prepared to lose whatever you put in, because just as you say, <poof> it could be gone.

Now shares in rock-solid companies (IBM, GE, Microsoft, DuPont, 3M) have a much smaller risk, but they're slow movers in both directions, up and down. Most tend to pay dividends as well. Those types of companies are better investments if you're wanting to slowly grow your money over time. There is risk in them too, however. If you don't want to risk losing money whatsoever, you're best off with an FDIC insured savings account (Mine is giving 1.10% APY at the moment).

More risk allows for more reward. Day trader of speculative stocks is one end of the spectrum; Savings bonds and FDIC insured savings accounts the other.

 

[Jos]

you're best off with an FDIC insured savings account (Mine is giving 1.10% APY at the moment).

What is the current rate of inflation, if it's above 1.1% then your losing money
Current Inflation

 

[Cuyo]

you're best off with an FDIC insured savings account (Mine is giving 1.10% APY at the moment).

What is the current rate of inflation, if it's above 1.1% then your losing money
Current Inflation

Sure thing. But not as fast as if it were under the mattress.

 

[Douger]

Stock market of which empire ?
Likely no.

 

[Flopper]

Yes, I invest in the market, both equities and bonds. I always have and probably always will. I think there are better places than the US market to invest in at this time but that won't last. Long term investments have served me well. I'd rather go to Vegas than speculate. It's more fun.

 

[Zander]

If you are going to invest in equities (stocks) , the best strategy is to go with a diversified portolio of index mutual funds from Vanguard. You should plan for the LONG TERM. Stocks are not a good strategy for short term. Individual stocks are a sucker bet. Go with the indexes!! Here is a basic portfolio that will beat 80% of investors over any 10 year period.
40% US Stocks (use Vanguards "Total Stock Market index fund")
20% International (use Vanguaard's "FTSE International Index" or "Total International Index") .
Then add bonds-
20% Short term treasury Index -only buy bonds or bond funds of the highest quality and shortest duration - the purpose of bonds is not to earn high returns - it is safety.
20% TIPS - for when inflation rears its ugly head.......

Balance this portfolio back to these percentages once a year and you'll outperform 80% of the Professionals over 10 years. Over 20 years you'll beat 90%.

If you want a little more excitement, you can add a 5% slice of Real estate with the REIT index, and a 5% slice of Commodities (you;ll have to go outside vanguard for this one). You can take the 10% from the Total Stock Market Fund.

Good luck!!

 

[Dont Taz Me Bro]

I'm currently invested in the stock market and doing fine.

 

[rightwinger]

I'm still dumping money into stocks....beats the 2% payout from other investments

 

[Charles_Main]

Love the wording of the questions, did a good job of making sure there were no real good answers.

Taken as a whole in modern history, the number of people who have benefited from investing in stocks far out numbers those who were scammed and lost it all. Anyone with a 401k, or pension has at one time or another benefited and lost from stock investment. I assure if you take it as a whole, more wealth has been created than lost.

 

[George Costanza]

I would, and I have. I put a certain amount of money into stocks about 10 months ago. It has increased 20% since the original investment.

BTW - I did not check anything in the poll because of the gratuitous language thrown in along with the legitimate information. Kind of like pork stuck into a bill somewhere.

 

[kyzr]

I would, and I have. I put a certain amount of money into stocks about 10 months ago. It has increased 20% since the original investment.

BTW - I did not check anything in the poll because of the gratuitous language thrown in along with the legitimate information. Kind of like pork stuck into a bill somewhere.

Does that mean that you think that the stock market is open, honest, and completely fair with no illegitimate activities at all? Its all above board and honest?