I have good friend who has been a broker for over 30 years. According to him quick killings in the market are thought to be common but they are not. For every small speculator that makes the big score, there are a dozen that can't even keep with the market averages.
You are very correct. Almost no one without millions to leverage make a quick killing in the stock market.
I have been invested in the market for over 55 years. The first 5 or 6 years, I speculated, using the age old plan of fools, buy low and sell high. It became apparent that I would never be able to accurately forecast a market bottom or top so I gave up on getting rich in the foreseeable future and adopted a simple plan of dollar cost averaging and have stuck to it for about 50 years. Although it's about as exciting as watching paint dry, it has been successful far beyond my hopes. I have never been completely out of the market or completely in the market. On rare occasions I have sold without reinvesting. Now I am beginning to move everything to cash, bonds, or a trust, over the next few years. It has nothing to do with the current situation of the market just my age and my desire to secure a nest egg for my family.
A good time to buy beer stocks. BUD.
I put $10,000.00 into a stock market account and bought well known stocks when I was 21. I put what're I could into the account every pay day. Never have really sold stocks to pull money out. I have sold stocks and then bought others with what I sold.
The Fed lowered interest rates on March 3rd to combat the risk of the coronavirus. The market gave it's opinion by falling 3500 points over the next week. Interest rate cuts, tax cuts, and increased government spending can provide strong stimulus to the economy but it has to be done at the right time. IMHO, Trump has squandered the use of these tools in order to delay a long overdue correction till after the election. Now, he's going to drive the nation into another trillion dollars of debt to try and bolster up the economy for few more months. I believe the market and the economy are going to run their course and there is not much government can do right now except stop the spread of virus.
I have owed stocks for years, but I moved out of all of them in lieu of mutual funds. Yes, I know you can make more money buying individuals stocks, than mutual funds, although most people don't. After years of owning stocks, I think I know why. People fall in love with their stocks. They read the annual reports and what stock analysis think. They may even buy their products. When they go down, they are loyal to a fault. They stick with the company through thick and thin. Well, that's great if the company they pick can really maintain solid growth for many years, most companies can't. I guess, I'm saying it is just as important to know what and when to sell as it is to know what and when to buy. Successfully investors tend to remain emotionally unattached to their holdings. They analysis the stocks and buy the ones that meat their buy criteria and are just as fast to sell them when they meet their sell criteria. Of course when they sell, they need to keep their money working, so that means another decision of what to buy. If you have a large portfolio it can be a lot of work. Picking mutual funds is relatively easy and you are relieved of the responsibility of knowing what and when to buy and sell. Most of the top investment advisers are more concern with asset allocation than they are the particular funds they buy. Many just invest in index funds, buying and selling only to maintain their their asset allocation formula they use.
Every president is held responsible for bull and bear markets during their term of office regardless of what they do or don't do. It just comes with the territory. The causes of the 2008 recession were firmly in place the day Obama took office but the public and of course republicans held him responsible. He either didn't do enough to stop the recession or he did too much driving the country into debt. Either way he owns it. If we go into a recession as it seems likely now, it will belong to Trump. When people lose lots of money, they look for whipping boy, and Trump is looking like pretty good one.
In theory the Chairmen of Federal Reserve is independent of politics, in theory. However, in practice the president does have a lot of power over the Chairmen. He appoints the Chairmen and can remove him with cause. He also the appoints the governors of the Federal Reserve who serve on the committee and do have a vote in major decisions. Often the Fed chairmen will recommend appointments to the president. Also fiscal policy which the president does have a lot of control over needs to work in concert with momentary policy. Since the Chairmen is required to testify before congress, the president working through his party in congress can apply pressure to the Chairmen. Both the president and the chairmen usually find it is to their advantage to work together. That doesn't seem to be case with Trump.
I just started buying for my son's IRA which I manage. I'm investing 25% of the cash in the account today and will continue with each major drop in the averages. I want recognize the bottom until it is well past, so I'm going to buy it down. Although stocks are a bargain based on current earnings, those earnings will be going down. The market is down about 8,000 points on the Dow but it could go a lot lower before it bottoms out. Although the market is looking for good news, I just can't see where it can come from right now. It's too early to see any significant improvements in new cases or medical breakthroughs and summer is long way off. Obviously, the market didn't think much of Trump's announcements last night.
