Should be in financial discussions I know but more traffic here and I need answers fast. Recent thread repeated that the big recession is on it's way. Do I sell all my stocks or not? If it is as bad as they predict, money will be worth less as well. Last March I took a bit of a shit kicking but have sort of recovered. However. I missed bigly by not being able to buy low. Suggestions?
To all you financial experts
- Thread starter Robert Mugabe
- Start date
Suggestion - don't take financial advice from anyone on here. Consult a professional.
Markets have run up too fast. Get out today and hit the sidelines. Government support to individuals is about to run out soon. Economy will be in bad shape for awhile. When you see retail traders running up bankrupt stocks it’s a sign of a top. Get out today imo.
But so many of our colleagues here seem to have it figured out....Anyway last time I asked a professional he told me not to buy mastercard at $70.00 a share.
Ask these colleagues if they are professionals,meaning they make their living managing other peoples money. Then you can judge if they "have figured it out". The world is full of lunch room lawyers and fortune tellers.
Here is my advice and I don't know squat about what the future holds.If you are nervous about a big contraction, sell today and get some sleep.Nobody, and I mean nobody, can tell the future or time the market.
Now I am going to sit back and enjoy the entertainment.
My advice would be think of it as gambling...because that's what it is. If it hurts to much to think about losing part of your initial investment..get out because that's a real risk. If you think it's going to hurt more because you see the stock market go up and wish you had stayed in...well stay in for the long haul where eventually the stock will bounce back.
Day traders can make a shit-tonne of cash one day and lose it all the next day.
No one really knows what's going to happen, as the stock market is not reflective of the economy or current social climate.
Day traders can make a shit-tonne of cash one day and lose it all the next day.
No one really knows what's going to happen, as the stock market is not reflective of the economy or current social climate.
Stock markets have recovered substantially over the past few months which is typical after a crash. Almost back to previous highs or near. The markets are pulling back today and will be lower in the next few months or years as the economy has difficulties recovering.
Ask yourself a few questions. How many of the lost jobs and businesses are ever coming back. When will unemployment get back to single digits? Could take years. When will people feel secure spending on unnecessary items? The world has changed for quite awhile. The stock market can be like a big casino. Over the next few days I expect a substantial drop in markets. We’ve come too far too fast.
Ask yourself a few questions. How many of the lost jobs and businesses are ever coming back. When will unemployment get back to single digits? Could take years. When will people feel secure spending on unnecessary items? The world has changed for quite awhile. The stock market can be like a big casino. Over the next few days I expect a substantial drop in markets. We’ve come too far too fast.
Yes, it is like gambling except you are the casino. If you are a small investors (between $10K and $10M), imagine that you own a small casino that has only a single roulette and nothing else, and, because of social distancing, only one person can play at the time. However, you can chose how everybody bet and how many people will play (with the only condition is the total amount of all bets placed). For each single person you prefer him to play several numbers or a colour instead of placing all his money on a single number: this way you, as a casino, will still have the same expected winning, but if you lose you will not lose that much. In investment terms, you want to invest in a portfolio of stocks to diversify. Next, you would like to have 100 people each betting $1000 instead of a single person betting $100,000: again, as a casino, you will have the same expected winning but much smaller probability to lose. In investment term, diversify across time.
So, basically, what you need to do is to invest in low-cost ETFs that track market index and "smooth:" you investment over time (do not buy in a single day). Similarly, when you sell, smooth your selling over time. And, of course, the longer you invest for (the longer you operate the casino), the more likely you will end up in a positive territory and the higher will be your average profit.
What you do not want to do is to try to "time the market" (i.e.,try to decide if it is the right time to buy or sell) or hand-pick the stocks. And, of course, your expected investment horizon should be at least 5 years.
Let's just put aside how racist that statement is. Asian stock markets have enormous capitalization. And yes, stock markets in the short run measure people's "feelings" or more precisely market sentiment.
The Intelligent Investor by Benjamin Graham is perhaps the driest book you'll ever read, but worth it.
If you think you have the market figured out, you'll lose your underwear. The only reason that I've done somewhat ok is I admit to being Sergeant Shultz.
And I don't buy what The Millennial Millionaire is selling. Gold coins are an excellent investment but lock them away in a safety deposit box. I'm beaming at the moment, Rome and Istanbul have agreed on a freeze of their inventory of Roman/Byzantine coins.
If you think you have the market figured out, you'll lose your underwear. The only reason that I've done somewhat ok is I admit to being Sergeant Shultz.
And I don't buy what The Millennial Millionaire is selling. Gold coins are an excellent investment but lock them away in a safety deposit box. I'm beaming at the moment, Rome and Istanbul have agreed on a freeze of their inventory of Roman/Byzantine coins.
Be careful of the tax implications before touching your investments. You will pay capital gains tax of 50% if they are in a not in a registered account like a RSP or TFSA. You can offset the gains with losses from previous years, but only inside a non-registered account.
Stock prices go up and down seemingly for no reason at all. So I prefer to buy stocks that have paid dividends for years or even decades. To me, the stock price is not as important as the cash flow i.e. dividends the company pays out. That being said, dividend paying stocks are not immune to the economy especially the pandemic. That dividend can be unsustainable and the company may end up reducing or cutting it completely.
Stock prices go up and down seemingly for no reason at all. So I prefer to buy stocks that have paid dividends for years or even decades. To me, the stock price is not as important as the cash flow i.e. dividends the company pays out. That being said, dividend paying stocks are not immune to the economy especially the pandemic. That dividend can be unsustainable and the company may end up reducing or cutting it completely.
Hey Robert,
Way too general of an inquiry, hence you're getting general 'high level' responses at best (great posts attempting to help out Robert here by the way). Your decision should be on a stock by stock bases that you have in your portfolio. Have some that are risky and you know it? Downsize them (sell just part, or perhaps all) of those if they are making you worry too much. Got some long run stable choices (i.e. gold) then hang on to those as a multi-year buy and hold and stop comparing what you make on them to your buddies who are making 'fast cash' on the risky stuff that is much more volatile.
I know enough to know I don't know enough. Thankfully I have a long time friend who does and he guides me on buy and hold choices with great success over time and he's a day trader as well which helps him understand the market for both his daily activity and optimize his buy and hold decisions. Sounds like you're looking mostly to optimize your long term buy and hold choices and again, stock by stock, you can figure this out or find the help you need to make the best choices for you.
Good luck!
Way too general of an inquiry, hence you're getting general 'high level' responses at best (great posts attempting to help out Robert here by the way). Your decision should be on a stock by stock bases that you have in your portfolio. Have some that are risky and you know it? Downsize them (sell just part, or perhaps all) of those if they are making you worry too much. Got some long run stable choices (i.e. gold) then hang on to those as a multi-year buy and hold and stop comparing what you make on them to your buddies who are making 'fast cash' on the risky stuff that is much more volatile.
I know enough to know I don't know enough. Thankfully I have a long time friend who does and he guides me on buy and hold choices with great success over time and he's a day trader as well which helps him understand the market for both his daily activity and optimize his buy and hold decisions. Sounds like you're looking mostly to optimize your long term buy and hold choices and again, stock by stock, you can figure this out or find the help you need to make the best choices for you.
Good luck!
The stock market refers to NY. And who owns the vast majority of the stock there?
As NY goes so go works markets.
And right now the rich people "feel" pretty damn good about bailouts on demand and getting a right wing sympathetic President from both parties. That's why it's riding high in the middle of a recession and pandemic.
Racist my ass.......
And this is why you don't post questions like this on an escort review board. You get advice like this which is wrong. Tax on capital gains is not 50%. 50% of the capital gain is taxable at your personal marginal tax rate. If you are in the highest income tax bracket in Ontario that's about 27%.
A lot of folks are anxious about the stock market. Is the recovery real or is it just a short term phenomenon? I can tell you that in my RRSP I'm still mostly invested in the market but my focus is long term appreciation. I have an adviser who looks after that account. In my cash account which I manage, I have liquidated all my holdings in the past two weeks. I will be purchasing some stock next week but it will only account for about 20-25% of my holdings. The rest I'm keeping in cash for now.
