Dow headed for the worst April since the Great Depression

[Lisa558]

While that money was sitting on the sidelines making 5%, the SP500 was making 20-25%.

If you had invested it instead of sitting on cash, you’d be better off.

And if he invested it in January, he’d be worse off.

 

[DBA]

In a way.

We handed them the technology to allow us to exploit their cheap labor. They now have the technology and can stand on their own.




China sent Trump packing. It cost us billions and China quickly replaced our goods.

They are good at stealing our IP and good at copying. They aren’t so good at inventing new tech.

 

[pknopp]

They are good at stealing our IP and good at copying. They aren’t so good at inventing new tech.

We claim they stole it but for the most part we gave it to them. It was a part of the deal to exploit their cheap labor to increase "shareholder value".

 

[DBA]

before you calculate your returns you have to answer where that money came from? Did you get lucky and sell equities at the top or was that money sitting a bank for 2 years?

You’re not the only one buying the bargain. I do too. Every month with my paycheck and 401k.

I don’t leave money sitting on the sidelines thinking I can predict the future. You may invest now and the market drops another 20%.

I put money aside every month to build up a cash position. I also invest heavily in the market directly and via a 401k. I sell stocks for profit and replenish my sideline cash if it is what I consider too low to take advantage of bargains. I invest the rest. If you have good investments, you do not want to have to sell them to buy another. That makes little sense.

 

[DBA]

We claim they stole it but for the most part we gave it to them. It was a part of the deal to exploit their cheap labor to increase "shareholder value".

They steal it and create Chinese knockoffs to undercut American based companies that have their manufacturing in China.

 

[Marener]

That’s in retrospect. It is ALWAYS wise to have some money on the sidelines.

It’s wise to have an emergency fund but you don’t put into the market. Having money on the sidelines means your money is missing out on market gains and that is worse than being able to buy the dip.

 

[pknopp]

They steal it and create Chinese knockoffs to undercut American based companies that have their manufacturing in China.

Pretty stupid of us wasn't it?

 

[Lisa558]

It’s wise to have an emergency fund but you don’t put into the market. Having money on the sidelines means your money is missing out on market gains and that is worse than being able to buy the dip.

Depends on how much. Having 5% in cash, beyond the emergency savings, gives one flexibility to scoop up bargains.

That’s how I was able to retire ahead of schedule. Put my cash position to work in the fall of 2008, and more than quadrupled that specific amount within 18 months.

How old were YOU were you retired?

 

[Blaster]

The stock market goes up and down. Why don't folks understand this?

 

[Marener]

I put money aside every month to build up a cash position. I also invest heavily in the market directly and via a 401k. I sell stocks for profit and replenish my sideline cash if it is what I consider too low to take advantage of bargains. I invest the rest. If you have good investments, you do not want to have to sell them to buy another. That makes little sense.

You’d be better off investing that cash right away instead of trying to predict what the market is going to do.

You’re also contradicting yourself. You say you sell stocks to replenish your sideline cash but also say if you have good investments it doesn’t make sense to sell them.

Just don’t sell. Buy and hold. The only time you should sell is to rebalance your portfolio and ease into bonds as you get closer to retirement.

Have a plan and stick to it. Don’t use emotion or bias to make your decisions. That’s the best way.

 

[DBA]

Pretty stupid of us wasn't it?

Yes, pretty stupid, but that doesn’t negate the fact that they literally steal tech from our companies. We don’t give it to them, they steal it.

 

[Marener]

And if he invested it in January, he’d be worse off.

Yes! But he’d only lose money on a very small amount of his portfolio. The point of investing money when you have it is that you’re never investing large chunks at any time so the overall effect would be pretty minuscule compared to the gains from all the previous months of similarly small investments.

You can’t predict the future. Don’t try.

 

[Lisa558]

Yes! But he’d only lose money on a very small amount of his portfolio. The point of investing money when you have it is that you’re never investing large chunks at any time so the overall effect would be pretty minuscule compared to the gains from all the previous months of similarly small investments.

You can’t predict the future. Don’t try.

I’m not. I’m looking at opportunities to buy beaten-down stocks. I’m looking at NVDA. If I didn’t have anything on the side, I’d have to sell something at a low to buy it.

 

[Marener]

Depends on how much. Having 5% in cash, beyond the emergency savings, gives one flexibility to scoop up bargains.

That’s how I was able to retire ahead of schedule. Put my cash position to work in the fall of 2008, and more than quadrupled that specific amount within 18 months.

How old were YOU were you retired?

If all you’re doing is messing around with 5% of your portfolio, that’s not anything near enough to have a significant effect on your total rate of return.

 

[DBA]

You’d be better off investing that cash right away instead of trying to predict what the market is going to do.

You’re also contradicting yourself. You say you sell stocks to replenish your sideline cash but also say if you have good investments it doesn’t make sense to sell them.

Just don’t sell. Buy and hold. The only time you should sell is to rebalance your portfolio and ease into bonds as you get closer to retirement.

Have a plan and stick to it. Don’t use emotion or bias to make your decisions. That’s the best way.

Thank you for your advice. I already do much of this already, but my method has worked out very well for me. For a person that doesn’t really track stocks, setting it and forgetting it is a good strategy which I do some of myself, but don’t pretend that there isn’t money to be made by buying and selling stocks at the right time. You can’t do so without cash.

 

[Marener]

I’m not. I’m looking at opportunities to buy beaten-down stocks. I’m looking at NVDA. If I didn’t have anything on the side, I’d have to sell something at a low to buy it.

Retail investors really shouldn’t invest in individual stocks. The vast, vast, vast majority of them lose money. Especially when compared to passive investing.

 

[Lisa558]

If all you’re doing is messing around with 5% of your portfolio, that’s not anything near enough to have a significant effect on your total rate of return.

Not if I pick right. I was able to retire early by taking a chance on a beaten-down stock, using less than 5% of my position. Best investment opportunity of my lifetime.

 

[Lisa558]

Retail investors really shouldn’t invest in individual stocks. The vast, vast, vast majority of them lose money. Especially when compared to passive investing.

Not true, if you hold for the long-term and invest in solid companies.

 

[Marener]

Thank you for your advice. I already do much of this already, but my method has worked out very well for me. For a person that doesn’t really track stocks, setting it and forgetting it is a good strategy which I do some of myself, but don’t pretend that there isn’t money to be made by buying and selling stocks at the right time. You can’t do so without cash.

The professionals who have all the time and information to buy and sell stocks have a very hard time beating the market.

But I suppose you’re smarter and better than them.

Can Regular Investors Beat The Market?

With the big name competition out there, hard-working people who invest have a tough time beating the market.

www.investopedia.com

 

[Marener]

Not true, if you hold for the long-term and invest in solid companies.

Absolutely true. The fact that you’re talking about buying NVDA shows you’re lured by hype and not logic.

You’re not Warren Buffett.