DOW 20k!!! - the investing thread

yeah I don't think most understand this.
It was originally intended as a gauge of American companies and their direct relationship to the consumer goods/services/growth the country was experiencing.
Now that we're a global economy it's not so much.
It was necessary for it to take on a technology, healthcare, financials aspect as the consumer culture has changed since 1880

 

Yeah I got that, and to you for having data.. but how many are are reaching 72 years of age when IRS says they have to take out x percent or face penalty, that number with average volume, trends ... not on old desktop which I track this data on so it will have an impact just not sure what %

I "gamble " with small percent of house (meaning profits) money .. I think of it like lottery tickets for people good at math.. per instance a little bit I won on was an 6 month option on ExxonMobil when oil hit 30 a barrel.. figure I am at 42% winners and have some "winnings " 2/3 get put in safe investments other third fuels my gambling addiction

 

Yeah Charles Dow started it after the transportation average... just meant S&P 500 is more accurate measure even though with it the losers are kicked out so that helps numbers trend up over time

 

I have the exact same "gambling" strategy - on stock bets only(not all of them either) I have a substantial amount of dividend paying Blue Chips - most bought with my gambles

Buy a stock and decide what your % gain is high end and tolerable loss% is low end - set your "stop sales" and take your gains/losses without perpetually babysitting them.
I would only ever sell what it cost me + fees to make the initial transaction and take the 8-10% invest in the next thing, and so-on so-forth, always maintained a bit of the initial purchase.
It gave me an extremely diversified portfolio.
Of course it took me a few hours to throw the dart at which one I wanted to buy but plenty of screeners available with P-E ratios, price, rating you name it
You have to buy companies you never heard of - just read some info on them once you have 4-5 narrowed down

 

Exactly! a mid level company has a chance to grow.. apple and GE did.. once the reach a certain point however remember stocks are like kids nothing grows 20% per year forever. ..

made some nice returns on Zimmer? got it when it was spun off held original stock .. makes hips and knee replacement parts.. lost on a few my was not going in on Facebook or google. had shots at IPO prices I didn't understand them really still dont..

 

D'oh, I totally knew this too.

Majority of portfolio is in the S&P index fund at Vanguard.

The DIG ETF is a pretty easy trade, or has been for me. Follows big oil and seems predictable with the typical oil news panics.

 

This is a very informative thread, wish I could understand it better!! Food for thought about all us old boomers starting to withdraw their money...
I am embarrassed to say I know very little about the stock market, except that I fear another crash. There are some who say it will never happen again, but I have my reservations.
I did let myself get talked into an Annuity, and it seems to be plodding along, and one of the Roth IRA's also is invested in stocks, as well as my Supplemental Retirement. I was appalled to see the carnage in 08-09 that basod referred to, but it has been recovering slowly. My biggest concern is that because the Annuity and the IRA are not covered by FCIC, that should that company (Jackson) go belly up, I will lose the largest share of my savings. I guess that is my gamble!
Still, even though I am only 3 years away for retirement, I am interested in learning all of this.

 

I was listening to the radio last night as I was going to sleep.
There was a guy on some talk show , i dont remember the name of the show (1450am in poughkeepsie @ 12am) and he was saying following trends before the 1929 crashb another" crash" in the late 1800s and the 2008 crashb the market will take a big hit in the next few weeks.
We shall see?
I dont follow the NYSE, so I dont know if he is right or not?

 

It WILL happen. Those who say it won't are fools.

The problem is, when? And what do you do in anticipation of it? Do some homework, go to the library and get some good books, and make a plan. The authors Dave Ramsey, Clark Howard, and John Bogle will not lead you too far off. There are others, some more sophisticated, but these guys are solid enough.

 

Firebroad it will go up! it will go down! you can invest and be safe either way... anyone says other wise you should run from.

think of a stock like a saw .. did some pay more than you yes.. did some pay less yes.. what does it do for you.. meaning dividends, appreciation, beta etc...

if your new and interested buy stocks in companies you like.. my uncle mid 60s an old farmer conservative was upset when Obama became president (big hunter outdoorsman hoarding reloading supplies.. I advised him to buy stocks he knew did quirk well with ammo companies past 7 years..

 

And yet another fool not worth listening to.

 

Believe me, many times I have contemplated putting any extra money in a big can in the ground behind the shed.

 

As far as a dealing with a crash, it depends on when you need that money. I've always road them out (like I had a choice) and the market came back. As I get closer to retirement, I plan to build up my savings account so if there is a crash I can live off my savings for a few years. I am fortunate to have a pension to supplement my retirement.

 

Of course the market will go down....it always does. You don't have to be a financial expert to predict that one.

The market going down is only a problem if you need to sell when its down...so if you need that money to pay for current expenses then you shouldn't have that money in the market in the first place and move it to something less risky.

I haven't looked into it in a lot of detail, but having X years of living expenses in something "safer" than equities seems like a no-brainer....then you can ride out any market downturn and not have it effect you much, if any. I don't know what X is, especially when you account for inflation, but I'll figure it out closer to retirement.

 

You can do better than that. Have some safe funds, sure, but stay invested somewhere through thick and thin. In the longer term, the good times outweigh the bad. Don't count on anyone's crystal ball to help you time the bad.

If you position your finances to weather anything reasonable, and to prosper in good times, all will likely be fine.

 

Of course my comment was tongue in cheek, but you know, sometimes I wonder...Good to have you fellows talk me away from the edge!
Like Jack Straw , I have a pension--not as good as it was before it got embezzelled(long story), but it will certainly help.

 

I don't like to play around with investments, I knew back when Ford dipped to $1.50 or whatever it bottomed at that it was a sure enough investment that I should have bought as much Ford stock as I could afford, but I chickened out and didn't buy any. Oh well.

My plan is to just put a percentage (up to 13% now) of my paycheck, with the 6% match from my company into an index fund in my 401k and let it sit. I do the same with my HSA account now that I've got enough cash in there to cover the deductible, anything else I put in goes right into an Index fund where it can sit until I need it. I'm 34 so I'm not terribly worried about retirement yet; time is on my side. My only wish is that my wife would switch jobs to somewhere that gave her a 401k match. Adding another 4% or so per year would be huge at this point in our lives.

 

I've been served well doing or having done a few things.
Take the free money; if you have a company match to a 401k, get in the program enough to get the full match, at least.
Start early with a savings plan. you get numb to the pain quickly and live within the left overs. And push yourself a little to max it out.
Reduce or eliminate debt. You want to have credit history, but not necessarily pay for it. Interest avoided is money earned.
And find a money guy you can trust. This is probably the hardest thing to do.
I have a sister I law that says coffins don't have pockets. I guess that's true and I hope don't get to a point where I regret not living by that.
But similar to having a mental issue where I get a lot of satisfaction by a wood pile that gets bigger or a shed that is stacked by May, I like collecting money.

 

good points M2theB