Stock Market- Investing

[DawgyNWindow]

It’s really not

Heres what you could likely expect (tax free upon withdrawal) using real stock market performance history just opening a Roth and putting in the minimum each year buying average performing dividend stocks.
$110,000+ @10yrs
$450,000+ @20
$1,500,000+ @30
$4,700,000+ @40
Not even joking.

True. Roth IRAs are a great way to save for retirement.

Of course, if you are within 5 years or so of retirement, or already retired, leaving your entire fortune in the market is not something I would personally do.

It took 25 years for the stock market to recover after the 1929 depression. If you were still investing new money during that period you came out OK a lot sooner than 25 years....if you were fully invested with no new money to invest during that time you spent your fortune quickly and died broke.

As it is today, I keep a set percentage of my savings in the market because there is really no better place to go with it. Give me a sure thing and I stop gambling entirely.

[dawg80]

I have kind of stumbled and bumbled my way the past 40+ years, when I starting getting serious about investing and accumulating a nice nest egg. I would like to boast that after making a mistake I learned from it and never did it again...alas, I have repeated mistakes a few times thinking "this time it will be different!" Wrong! None of them were portfolio-shattering, always a small $amount, but still dumb.

Diversity...that's been my investing mantra since day one. I have two online investing platforms, TD Ameritrade and E Trade, and a couple of direct DRIPs, and two years ago ended my "full service" broker account because their commission was ridiculous. They still hold two large annuities for me. I am diversified within the trading platforms. I hold 35 equities, 30 of which are good divie-payers, and that split between Blue Chippers, REITS, and a couple of risky, high-payers. And just took a pounding on 8 penny stocks I have dumped to offset, well, make a small dent in my AMC tax burden!

I have also been heavily invested in real estate, which I am now actively divesting. Real estate has been very, very good to me!

I also have some ultra-safe cash positions. Yeah, as we all know inflation takes a bite out of low-interest-paying "safe" harbors, but I have to be able to sleep at night. I don't recommend this for everyone, or for anyone, but it works for me.

How much is enough? Of course that depends on your lifestyle, but for us (my wife and I), we are set for the rest of our lives and that does include traveling to Europe, etc...(when this virus mess is over). My wife and I share, and have shared from the day we started getting serious when dating, a desire to retire as multi-millionaires. I don't lean on the BS some folks say, "we have been fortunate...blah, blah, blah". Bullshit! it has been a struggle at times, making sacrifices as we always kept our eye on the ultimate target: retiring as millionaires. We run our personal household/finances as a business. I think ALL entities, including universities, should be run as a business.

Now, I also am working two part-time "jobs" one in politics (government), and another as a tour guide because I love history. I also just prefer having some form of earned income. I have been working for a paycheck since I was 16 (legally) and before that in odd jobs since I was 11. But then, I am a Boomer, and WORK ETHIC is what we do!

All that said, I also know I don't know everything and am always open to recommendations, hot stock tips! and any hints that will increase my bottom line.

Good luck to all!

[dawg80]

401(K)s...

https://finance.yahoo.com/news/why-o...221928924.html

Still not a "retirement plan"? Who said it was supposed to be? Like Social Security your 401(K), or some such savings vehicle, is a PART of an overall retirement PLAN, not meant to be the end all.

I have kicked around the notion of starting a "financial literacy" consulting/educational firm. Many universities have started, or are starting, some type of program/course to teach folks about personal, pragmatic finance. Lord knows the worst thing you can do is depend on one of those so-called "financial planners," LOL! No, one has to be educated to know how to navigate planning for yourself/family.

[DawgyNWindow]

401(K)s...

https://finance.yahoo.com/news/why-o...221928924.html

Still not a "retirement plan"? Who said it was supposed to be? Like Social Security your 401(K), or some such savings vehicle, is a PART of an overall retirement PLAN, not meant to be the end all.

I have kicked around the notion of starting a "financial literacy" consulting/educational firm. Many universities have started, or are starting, some type of program/course to teach folks about personal, pragmatic finance. Lord knows the worst thing you can do is depend on one of those so-called "financial planners," LOL! No, one has to be educated to know how to navigate planning for yourself/family.

Looks like they want someone else to control YOUR retirement savings now (it's in build back better, which should NEVER pass). Wonder if the insurance companies and their lobbyists had anything to do with pushing crap like that? Wonder what the kickbacks will be to the corporations that sign exclusive deals with these insurance companies to annuitize their employees' balances? Wonder how much dim candidates are getting from these same insurance companies?

"He says SECURE 2.0, if it eventually passes, would go even further in allowing employers to “annuitize” a 401(k) plan instead of leaving retirees to manage a set final balance."

[DONW]

Looks like reality has caught up with the market. Biden has shit his pants with all the talk of spending trillions of future Americans' money.

[dawg80]

The Fed will hike interest rates three times next year, most likely. That will have a strong negative effect on the stock market overall. But, there are still lots of opportunities, like those REITs who use interest rate margins to their benefit. Some of those are dirt cheap right now, while still paying a nice dividend. I am backing up the truck and loading up!

[dawg80]

Mark this date and time...

Wednesday January 12, 2022 at precisely 8:31 EST.

A self-proclaimed market expert, James Rickards, is saying the market will crash up to 80% on that day. But, if you subscribe to his investment advice service, for $49, he will provide a road map of how to not only avoid losing 80% of your money, but how you can profit 1,000% from the pending crash. Well worth a mere $49, eh.

I think the market is in a bubble and due a correction. Of course, we are subject to such "corrections" and/or "crashes" at any time due to some unforeseen event, such as a world crisis. The 2000 Dotcom mess, the 2008 sub-prime mortgage crisis, and the 2020 China virus mess all crashed the market. But, we got over each one. Like 1929 there is a LOT of borrowed money sitting in stock portfolios. Just saw a report stating it is at all-time high in raw dollars and second only to the '29 bubble in terms of percentages. There is also a lot of rank amateurs invested in the market, many who chased the meme stocks using all that "free" money they got from the guvmint during the pandemic lockdown. Through on-line platforms like Robinhood, many of those newbies are also invested in "good" stocks/companies and have helped to inflate the bubble. They will lead the panic on the first little correction, turning what should be a minor 5% step back into something far worse.

Need to be accumulating cash getting ready to buy when the big correction comes. I am not a financial advisor, but I am a student of history. "Those that ignore history are doomed to repeat it." I cited three major corrections that we all remember from just the past 20 years. Don't ignore it.

GLTA

...that means Good Luck To All

[Guisslapp]

Looks like reality has caught up with the market. Biden has shit his pants with all the talk of spending trillions of future Americans' money.

This comment aged about as well as its author.

[Guisslapp]

Mark this date and time...

Wednesday January 12, 2022 at precisely 8:31 EST.

A self-proclaimed market expert, James Rickards, is saying the market will crash up to 80% on that day. But, if you subscribe to his investment advice service, for $49, he will provide a road map of how to not only avoid losing 80% of your money, but how you can profit 1,000% from the pending crash. Well worth a mere $49, eh.

I think the market is in a bubble and due a correction. Of course, we are subject to such "corrections" and/or "crashes" at any time due to some unforeseen event, such as a world crisis. The 2000 Dotcom mess, the 2008 sub-prime mortgage crisis, and the 2020 China virus mess all crashed the market. But, we got over each one. Like 1929 there is a LOT of borrowed money sitting in stock portfolios. Just saw a report stating it is at all-time high in raw dollars and second only to the '29 bubble in terms of percentages. There is also a lot of rank amateurs invested in the market, many who chased the meme stocks using all that "free" money they got from the guvmint during the pandemic lockdown. Through on-line platforms like Robinhood, many of those newbies are also invested in "good" stocks/companies and have helped to inflate the bubble. They will lead the panic on the first little correction, turning what should be a minor 5% step back into something far worse.

Need to be accumulating cash getting ready to buy when the big correction comes. I am not a financial advisor, but I am a student of history. "Those that ignore history are doomed to repeat it." I cited three major corrections that we all remember from just the past 20 years. Don't ignore it.

GLTA

...that means Good Luck To All

Exactly. Crashes usually happen because of the unforeseen. A tighter Fed is foreseen. The Fed’s pivot has already taken some of the air out of meme stocks and hyper growth stocks that benefit the most from low interest rates. The three hikes projected for next year, though, still keep interest rates on the secular low trend. The market has actually gotten cheaper as the indexes have gone up this year.

With all that said, 2020-2021 were easy to make lots of money. It does get harder from here. Know what you own and make sure you understand why you own it and what can change the story.

[dawg80]

Interesting read...

https://www.politico.com/news/magazi...WGw7rKVHB9dqa0

[DawgyNWindow]

Interesting read...

https://www.politico.com/news/magazi...WGw7rKVHB9dqa0

That guy was exactly right. That was a great read; thanks for posting it.

[dawg80]

Yahoo Finance had an article this morning on predictions for the market/economy for 2022. What struck me was how casual and matter-of-fact the writer is stating there will likely be a 20% correction in the stock market. Wow! First, is 20% really just a "correction" and not a "crash"? Even so, 20% represents a serious hit to the market. I'm not saying it won't happen, but I would think that there would be alarm bells ringing and that would be reflected in the tone of the article, rather than, yes, a 20% correction is very likely [shrugs shoulders], oh well, what else will be happening...oh wait, just read it again, it reads "at least one 20% correction." You mean this market/finance/economic writer thinks there could be two or more 20% corrections and he's like, Oh well, who cares?

Has other predictions like the housing market will stay hot (despite 3 rate increases), cryptos will be a big story in '22.... and then concludes by saying, Duh! file this article under the Captain Obvious column. Duh? TWO or more 20% "corrections" in the market and we are to simply file it under Captain Obvious?

I think such "corrections" will wreak some havoc in the economy.

[dawg80]

One of the longtime edicts from those offering investing advice is to hold some good, old, solid, boring, dividend kings and aristocrats. That is still sound advice but comes with a caveat. Pay attention to the status of the companies you hold stock in. Nothing is forever.

For the first time in 90 years GM is NOT the biggest automaker in the US...Toyota outsold GM in 2021. Funny thing GM stock has jumped up 5% on that news, go figure. Point is, nothing lasts forever. Now, I don't think this means GM is in any danger of tanking as a company, but it does show how things will change.

Think about these: Sears-Roebuck, J. C. Penny's, General Electric, AMACO, Bethlehem Steel, Lehman Brothers, F.W. Woolworth, Pan-Am Airlines, and others... all considered, at one time, to be a must in your stock portfolio. Couple of them, GE, are trying to hang on but it is not a good stock play right now.

AT&T is carrying baggage and many analysts have it as a cautious HOLD. It is considered one of the darlings of long-term investing. My cost basis is so low on it that I am holding it but monitoring news about it closely. Technology is changing fast and everyone, including the old guard companies, like AT&T, have to keep up or they will go the way of the Dodo Bird!

Read another article where the writer says the 10 biggest companies in the world, in the 2030's and 2040's don't even exist yet. In fact, half will be in industries that don't exist yet, and he offers a few predictions. Of course, technology is at the root of all these economic/investing revolutions to come.

[dawg80]

In case I haven't mentioned it, put UBX on your watchlist. Do your DD, of course, It's a penny stock so investing in it comes with no risk, really, buy a couple hundred shares. Not enough money to matter if it doesn't work out. But, I have read some stuff about it. Interesting...

FWIW


Clarification: buying penny stocks is all about RISK! The reason those stocks are trading for so little is because the market, in general, has little confidence those companies will be successful. But, what I meant was because the PPS is so low buying 100+ shares amounts to very little money and losing it all shouldn't hurt.*

Invest only money you can afford to lose. And, as always, do your DD.


*Use stop losses and you won't lose it all.

[dawg80]

Market getting pounded. It's Biden's fault!!!

Actually, some of it is his stupid, anti-American policies, and some of it is his inability to react to all the signs that were flashing a warning this was coming. But, overall, the market does what the market does, rather independent of any particular outside force(s). There are some SCREAMING BUYS! and yet even those stocks are being hammered in the general sell-off.

UBX is down to 1.10/share. This is still one to watch, monitor for news about it.

AMC is falling fast, down to 16.00 from its all-time high of 72.00 barely 6 months ago. Knew this one was going to be a quick peak & valley and tried my best to get folks to sell it last year when it was still above $50.00. I got accused of being a basher/shorty and took a lot of grief on the Yahoo message board. Oh well...

Rough morning! Good thing I have a long term view of all of this, otherwise I could be in a state of panic. Actually, I am drooling over some really good buying opportunities and watching them closely.

GLTA!