Has the long awaited stock market corection started to-day?
- Thread starter cloudsurf
- Start date
You have to be way more specific with your answer. Name the stocks or there is no way you can get assistance.
He did. He bought index etf’s
It’s a tough call. If you need the cash for something specific. Dump it. If it’s for retirement. Keep it and buy more
NASDAQ is not stock... It's only a sample of the evolution of IT companies in the USA.
Right now, because of the storm hitting Facebook, NASDAQ is going down... It's time to put more money into this index. The IT market will correct itself and you'll get rewards soon enough.
You need to know one thing... Indexes reflect economical sector and geography. When you buy indexes, you are not buying stock. You are buying samples mirroring how the economy is going in a given sector or geography. It's safe to buy indexes from industrialized countries... in the long run.
Right now, because of the storm hitting Facebook, NASDAQ is going down... It's time to put more money into this index. The IT market will correct itself and you'll get rewards soon enough.
You need to know one thing... Indexes reflect economical sector and geography. When you buy indexes, you are not buying stock. You are buying samples mirroring how the economy is going in a given sector or geography. It's safe to buy indexes from industrialized countries... in the long run.
If Facebook collapses, it will be replaced in the index by another stock...
Facebook represents not more than 6% of the index... But a lot of other companies depend on Facebook. As you probably know it, in the IT sector, things are moving fast. So, if Facebook gets the hook, its counterparts will adjust swiftly.
Facebook represents not more than 6% of the index... But a lot of other companies depend on Facebook. As you probably know it, in the IT sector, things are moving fast. So, if Facebook gets the hook, its counterparts will adjust swiftly.
On a parallel subject....
I've found a company that many, here on MERB, should be interested to invest in...
Its called... CIM international!!! :bounce::whip:
http://www.cimintgroup.com/overview/
I've found a company that many, here on MERB, should be interested to invest in...
Its called... CIM international!!! :bounce::whip:
http://www.cimintgroup.com/overview/
Good companies are always good companies to invest in. With the recent drop in the market a lot of those companies are even more attractive now that they are on sale. If you're investing to buy a house next year, stay out of the market but if this is an investment for your retirement the prices of some stocks are really compelling. There are a lot of companies , good companies with dividend yields in excess of 5% which in todays market would reap returns double what a GIC would and with a GIC you would be prepared to lock away your funds for the next 5 years. Politics will always affect the markets but history has shown that the effect of politics is short term where intelligent investing will always pay off in the long term. Also remember that Asset Allocation over Cash, Bonds and Stocks will also protect the downside and will provide you with cash to take advantage of stocks that have been punished as a result of politics.
Agreed DL, market(reputable compagnies) will always out perform most passive investments. I just bought last night more FB, I figure a good time to buy and if it goes down more, I’ll buy more.
Buying FB is probably a good move now but if it continues to drop than one should ask what is the future of this company. I don't have an answer for now to this question. But keep in mind what happened with NORTEL, https://en.wikipedia.org/wiki/Nortel , Once a Blue Chip, it never recovered and went in bankkruptcy. Lots of people are closing their FB accounts and this began before the story of data being used not as expected. I'm keepeing those FB stocks for now but not sure what I will do, let say, within 6-12 months. Anyway, I prefer to invest in Funds so I have a bit of everything and I sleep well most of the times. When the technos are so and so, natural ressources or services (banks) may go up and compensate.
I'd like to make a recommendation to anyone looking to invest in the stock market. I am a professional Investment advisor and if there is one book that has served me well over the years ( I won't say how many except to say several decades ) it is "The Intelligent Investor " by Benjamin Graham. For those who don't know, Graham was Warren Buffet's mentor. It is a heavy read the first time through but if you read it several times and build a portfolio sticking to the principals outlined in this book you will lessen your chances of losses and increase your chances of profits. For those of you mentioning Facebook as an investment, Buffet would NEVER invest in this company ! They don't and have never paid a dividend and are currently trading in excess of 28 X their earnings.
Finally, don't EVER invest in a company just because someone at the office or the bar told you that it was a great investment. Even if you're using someone like me to handle your portfolio, make sure the investment ideas are properly explained and that all of your questions are answered in a way you'll understand, it's your money. Media hype is not a reason to invest in a company and last, if it's a good company, be patient.
https://www.chapters.indigo.ca/en-c...The+Intelligent+Investor&ikwsec=Home&ikwidx=0
Finally, don't EVER invest in a company just because someone at the office or the bar told you that it was a great investment. Even if you're using someone like me to handle your portfolio, make sure the investment ideas are properly explained and that all of your questions are answered in a way you'll understand, it's your money. Media hype is not a reason to invest in a company and last, if it's a good company, be patient.
https://www.chapters.indigo.ca/en-c...The+Intelligent+Investor&ikwsec=Home&ikwidx=0
Good advise Doggy.
In regards to Buffet he has never been very keen on technology investment. Only recently did he stuck up on Apple (but apple is a consumer goods company more then anything). He will never buy FB or Google as there is too much technology uncertainty for his licking. About bitcoin he said: “I get into enough trouble with the things I think I know something about. Why in the world should I take a long or short position in something I don’t know about?”
For me the whole thing is about balance. I have about 10% invested in very high risk internet startup as a first seed investor, 30% on estate market, 20% on stock market but nothing targeted at specific companies and 40% on shitty returns bank funds. I could do better returns if I would take more risk but chose not to.
Cheers,
p.s. ho and I have like maybe 2-3% invested on sp. Which by the way is a very secure investment as I will never ever see this money again haha!
When I first started in this industry the rule of thumb was 100% - your age ( 45 ) = the amount to put in equities, the balance was to be invested in Blue Chip stocks all of which were paying dividends. That would equal 65 % Stocks, 45% Bonds Also it should be remembered that in todays market with interest rates what they are a portfolio yielding 6-7 % is excellent . The greedy investor will get burned every time. Remember too that these numbers are after your real estate investment which should be your home. Crypoto currencies are NOT something I would put any client into
What do you mean by 'after'? Also, what if it's not a home but a commercial building bringing revenue. Do you consider this investment part of the equation?
Cheers,
Never count the place you live in as an investment... The place you live in is an expenditure.
You won't make money on the place you live until you downgrade your way of life... And that will happen when you are old and not really able to capitalize on your profit.
You won't make money on the place you live until you downgrade your way of life... And that will happen when you are old and not really able to capitalize on your profit.
Your home might be an investment as it can be a huge hole. If you want to know if the house you bought was a good move, you should compare how much in total you spent on it (cashdown, payments, taxes, renovations, maintenance, all) than compare with renting and investing the difference. Of course if your house value has increase over time you can simulate that you sell it. As mortgages were very affordable for the last 18 years and house market did progress a lot (it was not the case between 1991 and 2001) I am pretty sure home owners made a good move. At least I did... Not to mention that in Canada the gain on a private house is free of income tax. I sold my house in 2010, bought a small condo, paid cash, and plenty of money remaining. Now it cost me around $400 a month total (taxes, condo fee, heated, cable, internet, phone, all included)... and my condo continues to increase its value. For me that is an invvestment.
As for downgrading my way of life, my needings changed, no more children at home, don't need a private swimming pool, don't need 4 bedrooms, don't need a huge basement with a home theater, don't need place for ping pong or pool table, don't need to pass my time working on the grass etc. In fact, now my living is better than if I would have kept my house. But... maybe I should consider selling my condo, cashing more money, paying a rent and invest my money in the stock market... But I can also take a mortgage on my property and invest this money... for now, I feell more secure the way I live. Buying a house is not a lifetime decision.
Buying/selling properties you live in is not investment... Even if you think it's profitable. When you sell the home you live in, what do you do with that money? Where do you go after you sold your home?
In the house market, you make money with other persons money... Read this and open your eyes: http://www.brassardgouletyargeau.com/publications/livre_chez_moi.aspx (sorry, it's in french. I don't know if there is an english version).
I haven't said that downgrading your way of life is a bad thing... But your exemple is the perfect picture of downgrading.
Not much of a trader at all, started buying P&G about 25 years for around $14 and continued for a few years till they were at $30 and sat on them, sold half of them and bought Aurora & Canopy, will probably sit on them until after retirement.
The P&G always had a crash every 7 years or so but the recovery was always greater than the crash. My old employer ( still friends, gave me the advice about thw weed stocks ) who got me started said to stick with P&G for a good long term stock ( I wanted a low risk and did not want to be a trader ) and ride out the bad times. Could I have made more buying and selling, probably but I am also happy that I never bought stocks that lost.
In short, I bought a blue chip stock the pays dividends and made over 300% in my investment over 25 years, not great but OK.
Moral of the story, buy and sell is good if you can afford it otherwise stick with a blue chip and ride it out for a safe investment.
BTW, my old boss made millions in the market, his method is sell when he gets a 30% gain and move on.
The P&G always had a crash every 7 years or so but the recovery was always greater than the crash. My old employer ( still friends, gave me the advice about thw weed stocks ) who got me started said to stick with P&G for a good long term stock ( I wanted a low risk and did not want to be a trader ) and ride out the bad times. Could I have made more buying and selling, probably but I am also happy that I never bought stocks that lost.
In short, I bought a blue chip stock the pays dividends and made over 300% in my investment over 25 years, not great but OK.
Moral of the story, buy and sell is good if you can afford it otherwise stick with a blue chip and ride it out for a safe investment.
BTW, my old boss made millions in the market, his method is sell when he gets a 30% gain and move on.
U can’t compare fb with Nortel. Nortel had huge loans and little actual revenue. Running fb is cheap they have huge revenues and few expenses.
But the main reason I believe it is a good bet is it’s management. And this is true of all blue chip compagnies. Then of course everything said before has to be taken into account. Your investments have to be diversified according to your risk tolerance.
But don’t forget the Dow was at 2000 in 1982 and now over 20000. The best investment however is in yourself. The money u make usually is far more than any passive investments u can make unless your an investment genius, which I m surely not.
But the main reason I believe it is a good bet is it’s management. And this is true of all blue chip compagnies. Then of course everything said before has to be taken into account. Your investments have to be diversified according to your risk tolerance.
But don’t forget the Dow was at 2000 in 1982 and now over 20000. The best investment however is in yourself. The money u make usually is far more than any passive investments u can make unless your an investment genius, which I m surely not.
