Stock market

I would love to invest in the stock market but all the shit y'all saying I dunno what all it means we'll very little lol did you all just read and start investing or do y'all have schooling in this stuff?? I was told to invest in penny stocks for small gains and I'm like a stock for a penny count me in, it'll surely be worth more than a penny eventually, but that's not how this works I see! Lol is patients needed for stock market investing? How much do you start with? So many questions in this game of chance with money...
 
Overwhelming to say the least! It's like someone trying to explain a wiring diagram for a 99+ vehicle and I'm wiring/electrical stoopid! Lol
 
Speaking of bottomed out....what do y'all think about GE? About there?? And is it going to stay down?
 
jeepinmatt said:
All of those top 10 January years had corrections in May or later, except 1980. I'm thinking start transitioning to more stable stuff in March and get back in once it seems to have bottomed.
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AKA "Sell in May and go away"
 
C.Berry said:
I would love to invest in the stock market but all the shit y'all saying I dunno what all it means we'll very little lol did you all just read and start investing or do y'all have schooling in this stuff?? I was told to invest in penny stocks for small gains and I'm like a stock for a penny count me in, it'll surely be worth more than a penny eventually, but that's not how this works I see! Lol is patients needed for stock market investing? How much do you start with? So many questions in this game of chance with money...
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First off, find you a good financial advisor. You want a fiduciary. Read up here for a decent explanation: Most Americans cannot define this key financial term, and it could cost them Start slow and learn all you can. The best thing a good financial advisor will do is help you learn patience....several times, early on, I would get the "are you sure you want to do that now?" response to a question/request. Most of the time, he was right. Once you learn more and more about the market, and learn patience, then I'd start investing some on your own...there are lots of online trading sites/tools. Still, I keep the majority of my stuff invested thru an advisor. We are close, but they did outperform my self-managed stuff last year by a small margin, even accounting for their fees. And a lot less time/research/headaches involved.

No matter how good you or your advisor are, the one thing that you cannot overcome is lost time. You can't make gains if you aren't in the game.
 
Thanks gonna get my learn on!!!
 
Buy total stock market (or S&P 500), total international market and total bond funds. Choose the asset allocation that’s right for you based on income security, age, years to retirement and portfolio size.

Then hold. It’s not about timing the market, it’s about time in the market.




Very few investors (or fund managers) beat the market. And when they do, it’s rarely consistent.
 
jeepinmatt said:
So when's the time to sell? All of those top 10 January years had corrections in May or later, except 1980. I'm thinking start transitioning to more stable stuff in March and get back in once it seems to have bottomed.
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The market is WAY overdue for a pullback based on past data. Last fall/late summer I read a couple experts thinking the S&P500 2825 could be the level for a pause/correction. We are there now, so...

I messed up this time, and raised some cash at three different times during 2017 thinking a pullback was coming soon. Obviously that didn't happen. I doubt that I will sell anything more since I am already holding more cash than I should, but I will put that money to work when the correction happens.

Bull markets are born on pessimism, mature on optimism, and die on euphoria. It think we have entered the euphoria phase, but it could last a couple of years.
 
drkelly said:
It think we have entered the euphoria phase, but it could last a couple of years.
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Have you looked at any of the financial sites lately? Headlines are all doom and gloom. If this is a euphoric top, then we've all forgotten what a bear market looks like.

When your mother-in-law calls you asking how to buy the stocked market, that's your tell.
 
C.Berry said:
I would love to invest in the stock market but all the shit y'all saying I dunno what all it means we'll very little lol did you all just read and start investing or do y'all have schooling in this stuff?? I was told to invest in penny stocks for small gains and I'm like a stock for a penny count me in, it'll surely be worth more than a penny eventually, but that's not how this works I see! Lol is patients needed for stock market investing? How much do you start with? So many questions in this game of chance with money...
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I'm self taught. I spent HOURS reading, and have made mistakes along the way just like I would if I took up wood working or any hobby. I use Etrade. The vast majority of people should just buy a low cost S&P500 index fund like VFINX from Vanguard. Make regularly purchases spread out over time.
 
shawn said:
Have you looked at any of the financial sites lately? Headlines are all doom and gloom. If this is a euphoric top, then we've all forgotten what a bear market looks like.

When your mother-in-law calls you asking how to buy the stocked market, that's your tell.
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I don't think we are on the brink of the next bear market, but I don't have a crystal ball. I think the bull market continues on for another 1-3 yrs.
 
Ouch! Dow down 600....

Sent from my SM-G930V using Tapatalk
 
All the major indexes are down about 4% from their highs on Friday Jan 26th. The VIX closed at 17.21. This seems like the start of a good correction.
 
I think it's just jitters. That thing about the healthcare from Amazon, JP Morgan, and Berkshire-Hathaway, then the distraction of the FBI memo.

Back up in a week.
 
Todd Van Der Meid, MBA
CERTIFIED FINANCIAL PLANNER™
(704) 827-9000
www.rhinowealth.com
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Dear Rodney ,

So the market has been throwing a bit of a temper tantrum this week. Should you be worried? I don't think so. It is normal to see the market correct 3%, 5% or even 10% during the course of a year before resuming an upward trajectory. The market is reacting to the fear of rising interest rates and inflation. Yields have risen slightly and there are some signs of inflation but far from the levels that would be a threat to the economy. Negative market years primarily occur during periods of recession. There are no current recessionary indicators. The unemployment rate is low. By historic standards interest rates and inflation are also low. The Federal Reserve has indicated that it expects inflation will hit its target rate of 2% this year. If anything changes, I'll let you know. If you are concerned we can adjust your risk profile but I think we're approaching a buying opportunity. From a technical perspective we started the year with the S&P 500 at 2,683. The 50 day moving average, which I believe is a support level, is 2700. If the S&P 500 fell below 2,600 I would begin closely examining the underlying fundamentals. As of today the fundamentals remain strong. Year end targets from the sources I follow fall between 2800 and 3100. If you have any questions or concerns please give me a call.

Disclaimers:
The S&P 500 is an index that cannot be invested in directly. Past performance does not guarantee future returns. Todd does not have a crystal ball or access to non-public information.

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Rhino Wealth Management, a Registered Investment Adviser.
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Putting this drop into perspective, from Motley Fool:



Since its formation in May 1896, the Dow's 20 worst percentage declines in history have ranged from a maximum of 22.61% on Black Monday in October 1987, to its 20th-largest percentage decline of 6.98% on Sept. 29, 2008, during the height of the Great Recession. Friday's decline in the Dow represented a mere 2.54% pullback in the index.

Let's put this into even more perspective. In order for the Dow to have had one of its worst percentage days ever (i.e., get into the top 20 of all time), it would have needed to drop by 1,828 points, or an additional 1,162 points from where it ended on Friday, Feb. 2.


dow-largest-losses_large.PNG


From the same article, a tidbit on staying in vs. getting out:

For example, in 2016 J.P. Morgan Asset Management released a report entitled "Staying Invested During Volatile Markets" that analyzed the S&P 500's performance over a 20-year period between Jan. 3, 1995 and Dec. 31, 2014. What the report found was an aggregate 555% gain for investors who held throughout the entire period. If investors missed just 10 of the best percentage gains over this 20-year period, their gains were cut to just 191%. If they missed a little over 30 of the best days, their gains would have completely disappeared. And, to boot, a majority of the largest percentage gains came within two weeks of the biggest single-day losses. In other words, stop guessing and stay invested.
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Putting the Dow Jones Industrial Average's 666-Point Plunge Into Perspective
 
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Almost time to buy. Today is a good day to have cash.
 
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Funny, on Friday and today when they're talking about it on the radio, this thread was my first thought.
My second being, "maybe its about time to buy more."
 
Historically, when the market drops on a Friday, it usually continues on the following Monday.

It’s still higher than the 60 day moving average.
 
Officially a correction now.
 
I wonder how much something like this 'correction' can be attributed to algorithmic trading? Computers doing all the thinking and transactions, no level-headed person saying "patience, patience, patience....".
 
kaiser715 said:
I wonder how much something like this 'correction' can be attributed to algorithmic trading? Computers doing all the thinking and transactions, no level-headed person saying "patience, patience, patience....".
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I believe this definitely impacts market trends. They are programmed to sell (or buy) at pre determined levels. So when it hits that number, massive sell offs, triggering even greater decline.
 
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