Would you invest in the stock market?

Discussion in 'Politics' started by kyzr, Jul 17, 2010.

?

Do you believe the stock is a good investment for small investors?

  1. Yes, I'm sure teh SEC monitors the criminals like bernie Madoff closely

    2 vote(s)
    20.0%
  2. yes...its crooked, but its the only game in town

    5 vote(s)
    50.0%
  3. no...I'd sooner put my money in my mattress

    0 vote(s)
    0.0%
  4. No, its a rigged game for big money players

    3 vote(s)
    30.0%
  1. kyzr
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    kyzr Gold Member

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    Poll questions regarding the stock market
     
  2. MIPS
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    MIPS Active Member

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    You forgot to mention which "stock market"
     
  3. kyzr
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    kyzr Gold Member

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    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?
     
  4. Cuyo
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    Cuyo Training a Guineapig army

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    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?
     
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  5. kyzr
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    kyzr Gold Member

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    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!!
     
  6. MIPS
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    MIPS Active Member

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    Personally I feel the equities exchange on Mars looks fairly attractive but beyond that NO.
     
  7. Cuyo
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    Cuyo Training a Guineapig army

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    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.
     
    Last edited: Jul 17, 2010
  8. Jos
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    Jos BANNED

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    What is the current rate of inflation, if it's above 1.1% then your losing money
    Current Inflation
     
  9. Cuyo
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    Sure thing. But not as fast as if it were under the mattress.
     
  10. Douger
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    Douger BANNED

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    Stock market of which empire ?
    Likely no.
     

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