Anybody watching the stock market?

Discussion in 'Community Forum' started by Wildcat, Oct 10, 2018.

  1. Wildcat

    Wildcat 12 pointer

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    I've been busy all morning looking for bargains!!

    Beleive it or not but this is one of the results of a BOOMING ECONOMY!!

    The Fed is worried about inflation and if the economy keeps on fire they will raise the rates and the business worry about higher rates and inflation, they worry they might not sell as much. That's all this is about.
     
  2. EC

    EC 12 pointer

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    The Fed, a globalist organization, will probably try to destroy the US economy as a means to stop Trump. They won't even give Congress an accounting of where the loans go...essentially they tell Congress to "piss off" when asked.
     
  3. ojibwa62

    ojibwa62 8 pointer

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    Thats exactly what I am afraid of , the last President to talk about the fed was Reagan, and they got him back in line real quick.. I don't know that Trump can be bullied though. Read "The creature from Jekyll island".. it's about the feds origins.
     
  4. cityslicker

    cityslicker 8 pointer

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    I've always got a buy list ready for big dips. Just added WFC, KHC and looking at CMI.
     
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  5. WildmanWilson

    WildmanWilson 12 pointer

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    Percentage wise it’s nothing. The market is so high that an 800 point drop look awful but it’s not bad at all. These day traders jump if the wind shifts.

    I’m transferring a pension to a 401k next month. I’d like to see a drop to buy cheaper stocks rather than high stocks. More shares. But either way I don’t panic every time it swings.
     
  6. cityslicker

    cityslicker 8 pointer

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    I love when the market drops big and always have a watchlist to either add to current positions or start new ones.
     
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  7. Iceman35

    Iceman35 12 pointer

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    I’m 20 some years from retirement. A drop in the market means better buying opportunities, and more profit down the road.
     
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  8. davers

    davers 10 pointer

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    I agree WildmanWilson, as I am going to leave my investments alone. Investors make a big mistake by selling their investment while the markets are falling. Currently, I have my IRA, non-IRA investments, Variable Annuity + my Social Security & Money Market account, for emergencies. Also I am debt free, and was thinking about buying Gold, but I am skeptic about such purchase.
     
  9. Iceman35

    Iceman35 12 pointer

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    A quick search will reveal gold has always been all over the place. People go to it when the market crashes for way too much, only to see the inflation adjusted price crash when times are good. You might make money short term, but long term it’s terrible. Don’t take my word for it. Ask an investment advisor, or just search for the inflation adjusted price, or just the price the last decade.
     
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  10. EC

    EC 12 pointer

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    Gold is good for long term. The historical prices demonstrate this. The long term could be a very "long term" though. And as long as we have central banks, we'll have inflation--so the demand market price (spot price) will reflect this usually. It will fluctuate in spot prices like any investment. However, it is somewhat illiquid if you physically hold it and want to sell it immediately. I don't trust those outfits who want you to buy it and let them "hold on to it". Maybe they have it, maybe they don't. But, yes...I have some gold and was buying it when it was $180 an ounce.

    I like the call option markets. When I was a "kid", options were only 9 or so months in term. Now you can get them 3 years out.

    I've been thinking about loading up on a few Exxon January 2021 calls (which means the contract for the option expires, if you don't exercise it, Jan. 2021) at a strike price of $125. You can buy the right to buy 100 shares of Exxon common stock at $125 a share. The cost of this right (contract) is about $55 (or as it is reflected on the contract, 0.55 a share) right now. An option reflects 100 shares. Exxon's common stock is trading currently at $89 a share. So you have until January 2021 for the price of the stock to trade up to or exceed the $125 strike price.

    I never exercise the option (buy the common stock), I just trade the option's contract value (currently $55). The closer the market's common stock price gets to the strike price ($125), the more valuable the option. When that happens, I sell the option contract.

    I used to write covered options, but I haven't done that in a few years. That's a whole different approach and strategy.
     
    Last edited: Oct 12, 2018 at 9:24 AM
  11. KYote-Krusher

    KYote-Krusher 10 pointer

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    There's a fellow in Bowling Green that many of you would know if I mentioned his name, who is a real "Gold Bug". Back in the late 60's he went nuts on gold and touted it to all his friends. Every spare dime he got his hands on he would buy gold.

    I told him he needed to diversify and was making a big mistake putting all his eggs in one basket. If I remember right, gold was around $200 to $250 an ounce back then.

    He didn't take my advice and I didn't take his .... I'm broke and he's a millionaire! :(
     
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  12. Iceman35

    Iceman35 12 pointer

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    You're correct in the very long term aspect.

    https://www.macrotrends.net/1333/historical-gold-prices-100-year-chart

    My view of gold is that if I buy it, but my children or grandchildren have to sell it in order to recoup the gains, then its not a good investment. Add to the fact it's typically a hedge against a down market or rising inflation, and doesn't pay a dividend, and it's just not my game. I used to have some as small part of my overall portfolio, which I think is fine, but sold it to buy more lucrative things.

    Like anything, I'd prefer to have a diviersified portfolio containing IRA's that cover a broad spectrum with solid return 8-12% over decades, than risk the swings of a commodity, or an individual stock. I've got a Petroleum mutual fund that includes Exxon, but not as an individual stock. If it works for you, awesome. You appear to be more into the day to day trends of the market than I. Me, I prefer to pay someone to do it for me. At an overall ROR of 9.5% over the last 13 years, I'm pretty happy with that.
     
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  13. EC

    EC 12 pointer

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    Seems like the market price in 1971 or so (when Nixon took us off the gold standard and Ford in '74 signed a law saying US citizens could own gold again) was about $160 an ounce when Ford signed the law. Up until then, it was illegal for any citizen to own gold coins, bullion or dollars designated as 'gold certificates' (which meant, you could redeem your dollar for the equivalent value in gold). FDR made sure individuals couldn't own gold anymore. He required everyone to turn their gold over to the government for $20 an ounce. Then, once he got everyone's gold, he declared it to be valued at $35 an ounce. One of the many reasons I loath FDR...criminal SOB.
     
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  14. KYote-Krusher

    KYote-Krusher 10 pointer

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    Here's an interesting, inflation adjusted, historical gold chart:

    https://www.macrotrends.net/1333/historical-gold-prices-100-year-chart

    Deselect the "inflation adjusted" button for the actual price in dollars.

    I think my ship sailed without me .... :cool:
     
    Last edited: Oct 12, 2018 at 10:21 AM
  15. EC

    EC 12 pointer

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    Louisville, KY.
    You should do what you feel comfortable with. I like 'rolling the bones' sometimes.

    From a long term investment perspective, mutual funds are the best way to diversify and spread out risks. Of course it depends on the mutual fund...but in general it's pretty good. Especially if one hasn't the time to mess with it on a daily basis. You can get some decent long term returns on a "smoothing" of the annual numbers.

    In general, I'm long term minded. But there's short term opportunities. Back in the crash of '87, when I had just gotten married, I told my wife I was taking 10k and putting it into the market. She went nuts! "The market is crashing. You're nuts!!" she said. I said "yeah, never buy high". She's not so mad now. LOL

    I have a mix of mutual funds, individual stocks, very little in bonds (interest just isn't attractive enough and I'm not into junk bonds), etc.

    I've been studying the market since I was 13. When most kids my age were playing baseball after school, I was at the bank watching the old ticker machines. LOL
     

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