Investment Thread

[Jeffrey]

This is "your" thread so this is one thread in which you should always be welcome. Plus, I believe I'm able to name one other...

Do you think he remembers starting this thread? Roughly, how many beers ago was that?

[devildeac]

Do you think he remembers starting this thread? Roughly, how many beers ago was that?

I'll bet he most certainly remembers starting this thread.

99 bottles of beer on the wall... (oops, wrong thread)

[fuse]

Do you think he remembers starting this thread? Roughly, how many beers ago was that?

And...this is why I love (word not chosen lightly) the sense of community on DBR.

I appreciate the give and take.
I started this thread looking to learn, and as others have mentioned, I definitely learn something every time I read the thread.

Always happy to share what I have learned, just don’t have a huge amount to offer.

[devildeac]

Please do not blame any of those nice people on the Ymm, Beer thread for the following:

https://www.cnn.com/2020/08/11/busin...rnd/index.html

"Like toilet paper before it, the popular soda is widely unavailable in some parts of the US."

Thank you in advance.

[Jeffrey]

Meet Bob, the world's worst market timer:
https://awealthofcommonsense.com/201...-market-timer/

IMO, every investor needs to understand the example above. Dollar cost averaging, into a broad index fund, for as many years as possible, is a solid and simple investment approach. The magic of compounding stock returns for 40, or more, years yields great results.

[Jeffrey]

Please do not blame any of those nice people on the Ymm, Beer thread for the following:

https://www.cnn.com/2020/08/11/busin...rnd/index.html

"Like toilet paper before it, the popular soda is widely unavailable in some parts of the US."

Thank you in advance.

Too late, already have.

[duke79]

https://www.bloomberg.com/opinion/ar...n?srnd=premium

Good story on how to avoid common financial planning mistakes during a rescission.

[budwom]

IMO, every investor needs to understand the example above. Dollar cost averaging, into a broad index fund, for as many years as possible, is a solid and simple investment approach. The magic of compounding stock returns for 40, or more, years yields great results.

yes, I was just explaining this to friends who are about to sell a business they have built over the past 14 years, which should net them several million dollars.
I told them NOT to just pour it all into the stock market now, but feed it in slowly over a period of time (2%/month, 3%, whatever time line they preferred)...and, as you say, into a broad index fund. Their previous financial "advisors" (I'd call them mutual fund salespeople) had them in a hodge podge of mutual funds, the primary characteristic of which was the high level of fees they were paying.

[fuse]

Trying to keep this apolitical.
Regardless of outcome, I expect the election could have an impact on the market.

In a sell high, buy low attempt to time the market, when are people thinking about selling and buying? 👀

[Bluedog]

Trying to keep this apolitical.
Regardless of outcome, I expect the election could have an impact on the market.

In a sell high, buy low attempt to time the market, when are people thinking about selling and buying? ��

The market has already theoretically priced in the large possibility of Democrats holding both the White House and the Senate. Or you'd think it would have...

In other words, I don't think there's necessarily a timing play. Trump being elected did impact the markets simply because that was a surprise outcome. So, maybe Trump being elected again would result in a more significant market reaction. Typically, markets don't do great in election years historically. It's possible if a party overtakes all branches and then drafts legislation to increase corporate taxes (as an example), the markets may react. But that's not for a while...

I think valuations are a greater concern than political party in power. But valuations can continue to get even more bubbly.

[OldPhiKap]

Trying to keep this apolitical.
Regardless of outcome, I expect the election could have an impact on the market.

In a sell high, buy low attempt to time the market, when are people thinking about selling and buying? ��

FWIW, the Wall St. Journal had an above the fold, centered, front-page article today entitled "As Harris Joins Biden Ticket, Wall Street Exhales in Relief." Part of it was the fact that Biden did not pick Warren or a screaming progressive. But part of it was some comfort with Harris. Snippet:

During her own presidential campaign, Ms. Harris managed to impress a Wall Street set that tends to be fiscally conservative and socially liberal. . . . About half a dozen leaders in business and finance said they expect Ms. Harris, if elected, to be a moderate voice committed to rebuilding an economy upended by the coronavirus pandemic. They expect her to take some swings at Wall Street . . . [b]ut they aren't conserned that that would dramatically affect their business."

There was another article about her ties to Silicon Valley and the fact that she would not be nearly as disruptive a force there as Warren or Trump may be.

Of course, the Op. Ed. page was not as charitable. As you know, Rupert Murdoch owns the WSJ and the tension between the news folks and the editorial folks has burst into the public realm recently. The old (pre-Murdoch) saying is that the WSJ editorial page tells you what you want to hear; the WSJ news pages tell you what you need to know.

[Kdogg]

It's a special case but WOW! Just WOW! Of course, it's not a loss until you sell.

World’s largest sovereign wealth fund reports $21 billion loss after ‘volatile’ first half of the year

[Jeffrey]

It's a special case but WOW! Just WOW! Of course, it's not a loss until you sell.

World’s largest sovereign wealth fund reports $21 billion loss after ‘volatile’ first half of the year

Headlines can be deceptive. I always prefer to look at percentages. Down less than 4%, in the first half of 2020, may be acceptable. Value was probably down more than 4%.

[YmoBeThere]

Lowe's with blowout earnings this morning, likely driven by people stuck at home making improvememts.

Broad indexes are near all time highs. The market has been driven by huge gains in stocks like Apple, Nvidia, etc. Basically a lot of large cap tech.if you own a lot of financials, well the recovery has been much more muted.

[budwom]

Lowe's with blowout earnings this morning, likely driven by people stuck at home making improvememts.

Broad indexes are near all time highs. The market has been driven by huge gains in stocks like Apple, Nvidia, etc. Basically a lot of large cap tech.if you own a lot of financials, well the recovery has been much more muted.

From my personal (limited) experience, hardware stores and pizza joints are having a field day...same for garden centers...

[YmoBeThere]

From my personal (limited) experience, hardware stores and pizza joints are having a field day...same for garden centers...

I know they’ve gotten my money.

[YmoBeThere]

Up and up it goes, where is stops, no one knows!

[budwom]

84% of CFOs see the market as overvalued, but oh what the heck: https://www.cnn.com/2020/08/27/inves...cfo/index.html

[cspan37421]

Don't sell until a get-rich-quick investing book tops the bestseller list. Then ... break like the wind.

[OldPhiKap]

Don't sell until a get-rich-quick investing book tops the bestseller list. Then ... break like the wind.

Wasn't it J.P. Morgan or John Rockefeller who said that he knew to sell his stocks when he got "hot tips" from the shoe shine guys?