quote:

Originally posted by konata88:
I'm at an age where I'm supposed to be keeping a significant mix of 401k in bonds (or low risk). I thinking about taking some risk and shifting it to equity to take advantage of the possible short term opportunity resulting from COVID. Then shift it back to bonds after it's recovered.

I'd still have a good mix in equity that can leverage hopefully further future gains. But I'm supposed to keep a certain mix in bonds, so I'm advised.

Kinda risk averse so not sure if I'm being overly tempted and greedy.

Ask yourself this: How often do these type market disruptions occur? I personally would do as you describe, but I'm 52 not 62 or 72.

Layer in, but buy enough to make a difference if you choose to move.

quote:

Ask yourself this: How often do these type market disruptions occur? I personally would do as you describe, but I'm 52 not 62 or 72.

Layer in, but buy enough to make a difference if you choose to move.

You really ask a great question here. Just like used car dealers set themselves up for a tidy profit when they buy the car. They realize the profit when they sell the car.

We do not get great stock market buying opportunities very often. I'm not saying now is the time to buy (it's still very risky, IMO) but it will be a great time sometime in the next couple of months.......

absolutely depends on your need from your investments.
at my age (40) i see no reason not to buy some equities at "new" 52 week or historically 80 week + lows.
as the market started its declined, i watched some of the reits i keep an eye one. once they finally took the hit. i decided to start buying. i could be wrong, but i have the time to find out. during that time, maybe the dividen yields help on the rare occasion.

if i was a few years away from retirement, i dont know. id hold, and pick up some low hanging fruit, with a safe amount of liquid. you all have sound advice, i dont see many super risk takers on here selling wild ideas.

Tesla, Inc. (TSLA) dropped below 400 today.
I covered my shorts.

quote:

Originally posted by alteon180e:
absolutely depends on your need from your investments.
at my age (40) i see no reason not to buy some equities at "new" 52 week or historically 80 week + lows.
as the market started its declined, i watched some of the reits i keep an eye one. once they finally took the hit. i decided to start buying. i could be wrong, but i have the time to find out. during that time, maybe the dividen yields help on the rare occasion.

if i was a few years away from retirement, i dont know. id hold, and pick up some low hanging fruit, with a safe amount of liquid. you all have sound advice, i dont see many super risk takers on here selling wild ideas.

Sounds like a sound investment plan for your age.

quote:

Originally posted by heathtx:
You really ask a great question here. Just like used car dealers set themselves up for a tidy profit when they buy the car. They realize the profit when they sell the car.

I'll pull a quote from A1 (Frank), paraphrasing here... Your profit is made when you buy something. Not when you sell it. Now, I do understand you are talking about realized gains and losses, but the sentiment is still true. I always try to get the best price when I buy something as agian, that's when your money is made.

As I said several pages back, I got extremely lucky. We pulled my wife's 401k out of the market in mid January as we rolled it into a existing IRA with Vanguard (100% stock mutual funds, mix of large cap, mid cap and international). Her company changed hands, so they closed her existing 401k and she got a new account with a different company.

I now need to determine when to jump back in... I'm still waiting for the volatility to settle down a little, and for the market to trade sideways for a while. I don't need to get in at the absolute bottom, but glad we cashed out when we did! Of course her 401k is about 30% of the size of mine, so we also took a significant hit like everyone else.

I make my money buying

I get my money selling

quote:

Originally posted by doublesharp:
I make my money buying

I get my money selling

This is the truth, you make the money on the buy of investments including real estate, not the sale......buy low sell high.

quote:

Originally posted by jimmy123x:

quote:

Originally posted by doublesharp:
I make my money buying

I get my money selling

This is the truth, you make the money on the buy of investments including real estate, not the sale......buy low sell high.

This is generally true. Occasionally, there is enough “froth” in a market to allow one to make some more on the sale, but you can’t control that. What you can control is the buy.

I'm pounding the table on Sysco, syy.

Down to 29 from 85 since corona virus.

do your own research but I've added to my position today @ $27.50

I think when trying to evaluate this market and whether or not now is the time start nibbling. We cannot loose sight that this week might be the yearly high.

Personally, I'm not seeing any uncertainty being resolved, so I think 'flashing blue light - stocks on sale on Aisle 9' may go on for a while yet.

Flashes to the upside seem to have no legs - people breathe a sigh of relief about measure XYZ having been taken, price it in, market pops a day, then the next day worry about corporate results resumes and the market loses the gain, and then some.

Someday that cycle will moderate, for sure. But I don't expect that to happen till sober analysis kicks in, after sustained positive developments on the virus, vaccines, countermeasures etc. and some definitive earnings releases.

But I'm not greedy and won't kick myself if some buying is not done at the absolute bottom.

Difference of opinions is what makes horseraces. Those with money they don't need or much care about, and want to try to time the market bottom....it's undeniable that stuff is certainly less expensive than a few weeks ago.

quote:

Originally posted by doublesharp:
I'm pounding the table on Sysco, syy.

Down to 29 from 85 since corona virus.

do your own research but I've added to my position today @ $27.50

Yes, that is definitely very tempting. Thanks for that.

Interesting stuff going on in commodities.

Gold/Silver ratio is the highest I have ever seen. Currently around 125 (mean average is around 80). Modern average is around 60. But who wants to sell gold when they are about the turn the printing presses at the mint up to 11???

Oil now at $22.5. Futures a year out are only priced at $31. This could be extremely damaging to the domestic O&G industry if it lasts.

Saudi Arabia picked a helluva time to have their fight with Russia. They both want to damage the US energy industry, so it may work out for them. But Russia can't deal with prices this low for more than a year or so before feeling extreme pain themselves.

BA now a double digit stock again. I created an option position with no upside risk that gets me long at 52 in the worst case scenario. That's about all I'm willing to do on BA right now. The risk of bankruptcy or some other deal that wipes out shareholders is real, but not large in my opinion.

I also nibbled on SYY down here. Once life gets back to normal, it should rebound fairly quickly.

So I've looked a bit but I dont understand all the lingo.

If you buy a stock and lets just say it drops completely to zero, do you lose all your stocks shares or just the obvious value?

If the company recovers and prices go back up do you have whatever they are worth or do you lose your shares when it hits zero? Hope thats worded right.

quote:

Originally posted by Anubismp:
So I've looked a bit but I dont understand all the lingo.

If you buy a stock and lets just say it drops completely to zero, do you lose all your stocks shares or just the obvious value?

If the company recovers and prices go back up do you have whatever they are worth or do you lose your shares when it hits zero? Hope thats worded right.

A stock will not go to zero unless there is a bankruptcy or similar event. In that case, the remaining assets of the company will go to the creditors to satisfy debts and the equity shares become worthless and are generally canceled. In some cases, if there is a viable business and someone to operate it, the company may issue new shares, but they would be sold to new equity investors or granted to creditors as part of the restructuring.

quote:

Originally posted by 1967Goat:

quote:

Originally posted by doublesharp:
I'm pounding the table on Sysco, syy.

Down to 29 from 85 since corona virus.

do your own research but I've added to my position today @ $27.50

Yes, that is definitely very tempting. Thanks for that.

I'd wait on Sysco. The local Sysco rep told me they are holding A LOT of perishable food because of the restaurant closures and are going to be giving it away to food banks over the next week or two, so they're going to take a hard hit in profit/loss over the next quarter (or two).

I think the quickest stocks to rebound are the ones that aren't losing profit due to this, just taking a market hit......electricity companies......amazon (should do very well)……….utilities...…

quote:

Originally posted by Anubismp:
So I've looked a bit but I dont understand all the lingo.

If you buy a stock and lets just say it drops completely to zero, do you lose all your stocks shares or just the obvious value?

If the company recovers and prices go back up do you have whatever they are worth or do you lose your shares when it hits zero? Hope thats worded right.

If the company goes banckrupt, yes you will lose everything. If not, it won't go to zero but should rebound eventually.

quote:

Originally posted by Anubismp:
So I've looked a bit but I dont understand all the lingo.

If you buy a stock and lets just say it drops completely to zero, do you lose all your stocks shares or just the obvious value?

If the company recovers and prices go back up do you have whatever they are worth or do you lose your shares when it hits zero? Hope thats worded right.

The shares you own do not vanish. In extreme cases particular markets (NYSE/NASDAQ, e.g.) may stop trading in companies whose total market values and/or stock prices drop below their thresholds. And market value drops may change whether a company stays in certain indexes.

But, explicitly, if you own 100 shares of Widgetco, the price of the stock dropping will not by itself change your ownership; whether it is priced at 10 dollars/share or 10 cents/share, you'll still have your hundred shares of Widgetco.

This message has been edited. Last edited by: joel9507,

Who or what is working against this market? It can't be all covid-19 related. One day, the President says something and the market rockets up. The very next day, it crashes again. Something is not right.