Investing / stock market

  • Posted by a hidden member.
    Log in to view his profile

    May 11, 2012 12:47 PM GMT
    The market has been rough on me lately. I'm not sure if any of you are financial geniuses, but I could use your help if you can. Here's the deal in a nutshell. I have several mutual funds because I dig how the money is distributed across a several companies. Two are growth funds. One with Apple, oil & gas (Exxon, etc) and big banks. The other with mostly tech, Apple, Google, Oracle, etc. Problem is, most of them are taking a hit because at least one company in the fund reports a loss, or what have you. I figure if banks don't do well, maybe tech will get a fund through the rough times. Or if tech doesn't do well, the oil & gas companies will hold the fund steady. That philosophy isn't really working so well right now. I am using Fidelity for this, I'm not sure that matters. Just saying I have the tools to research funds through their website, but...

    Here's my question: what kind of companies should I be investing in if I want to employ this philosophy? If you take all the companies that could be a part of a fund, and you subtract the tech companies, the oil & gas companies, and the big banks -- what's left? Excluding gold, silver, and bonds. I'm talking stocks here. Help a brother out. JPMorgan just reported a loss and I know that one fund is going to take a hit today. Greece and Spain are having issues and other stocks go to hell. Ugh. What kind of companies are immune to all this volatility right now? Help.

    Thanks for any help or insight you can provide.
  • Posted by a hidden member.
    Log in to view his profile

    May 11, 2012 1:08 PM GMT
    gekkisaidaiich said... I'm not sure if any of you are financial geniuses...


    The secret to financial genius...
    play-craps-online.jpg


    The scientific method of financial genius...
    crystal-ball.jpg

    Or

    76493046.JPG

    3028-1.jpg
  • Posted by a hidden member.
    Log in to view his profile

    May 11, 2012 1:08 PM GMT
    You shouldn't try to time the market or pick sectors that will outperform! Instead you should invest in low cost index funds and ETFs that fit your risk tolerance. A good rule of thumb is 100- your age is the percent you should be in equities. So, if you're 30, 70% should go in the S and P 500 and 30 % should go into a good bond ETF like AGG.
  • mybud

    Posts: 11837

    May 11, 2012 1:36 PM GMT
    I took my money out of the market years ago...bought a house...Don't know if you rent or own...but this would be the best time to buy...just a thought...
  • Posted by a hidden member.
    Log in to view his profile

    May 11, 2012 1:47 PM GMT
    mybud saidI took my money out of the market years ago...bought a house...Don't know if you rent or own...but this would be the best time to buy...just a thought...


    Sound advice. The real estate market may be as unpredictable as the stock market at the moment, but you cannot live in a mutual fund.
  • Posted by a hidden member.
    Log in to view his profile

    May 11, 2012 1:48 PM GMT
    No idea personally.

    The only method I found that has worked for me is to take advantage of stock that has nowhere to go but up. I bought into Ford when shares were under $2 during the GM/Chrysler bankruptcy drama. At present Ford is trading at $10+ a share. My only regret is I didn't have more money to invest at the time.
  • Posted by a hidden member.
    Log in to view his profile

    May 11, 2012 2:00 PM GMT
    I'll reply to you by direct message in addition to what I write below.

    Managing tens of thousands of dollars is an additional chore of one's home. Even if you're not managing the money and just are making parking decisions, it takes education and wisdom from the experience of others and one's own personal experience.

    Key in financial education is the drawing of conclusions and turning down the volume of media noise.

    Mutual funds can be a good way to maintain assets but not the best way to grow assets.

    When I was mutual fund investor as you are, I definitely had an online subscription to and used morningstar.com

    Are you using morningstar.com?

  • Posted by a hidden member.
    Log in to view his profile

    May 11, 2012 2:22 PM GMT
    Yes, I use morningstar. These are both 5 star rated. I check out the beta, stddev, and expense ratio, etc when I choose a fund. But nothing seems immune to recent chaos. I do have another fund that's mostly gold, silver, bonds, etc. And I have another that's diversified based on maturation date. So it goes from risky early on to more stable as time goes by. Just saying I feel like I'm missing some key information that could help. I don't have anything in ETFs so I'll check into that. I'd buy a house if I could, that is great advice. But I did debt consolidation a few years ago and I'm still picking my credit back off the floor. Thanks guys.
  • Posted by a hidden member.
    Log in to view his profile

    May 11, 2012 3:26 PM GMT
    Stock investing should always be a long term goal. You look pretty young, I did not check your profile. The money you invest should not be money you need in the next year or two or three. If you are in your 30's the growth funds are fine. Don't watch on a daily basis. Mine are down 10 perdent in the last 8 days. Today they are up 2%. I watch because it's what I get paid to do.

    It's never bad to buy a house, low interest rates now and houses have probably bottomed out.

  • Posted by a hidden member.
    Log in to view his profile

    May 11, 2012 6:36 PM GMT
    Apple
  • Posted by a hidden member.
    Log in to view his profile

    May 11, 2012 6:55 PM GMT
    gekkisaidaiich saidYes, I use morningstar. These are both 5 star rated. I check out the beta, stddev, and expense ratio, etc when I choose a fund. But nothing seems immune to recent chaos. I do have another fund that's mostly gold, silver, bonds, etc. And I have another that's diversified based on maturation date. So it goes from risky early on to more stable as time goes by. Just saying I feel like I'm missing some key information that could help. I don't have anything in ETFs so I'll check into that. I'd buy a house if I could, that is great advice. But I did debt consolidation a few years ago and I'm still picking my credit back off the floor. Thanks guys.


    I'd agree with swimguychicago - check out ETFs that are shaped around indices. Very few mutual funds outperform the market so why bother paying extra in management fees and instead just buy the market? Exchange traded funds (ETFs) typically have much lower expense ratios (also check out Vanguard's group of funds - Vanguard has one of the best reputations and are quite conveniently also known to have one of the lowest expense ratios) -
    https://personal.vanguard.com/us/funds/etf/all?reset=true&sort=name&sortorder=asc

    And yeah, if you can't stand to lose 20% overnight without losing your mind, equities are likely not for you. And as others have pointed out, don't pay attention to the day to day and have a time horizon of at least 3-5 years. There really won't be anything that avoids the volatility - and expect it to get more volatile this year with an election year and with corporate tax policy proposals or anticipated changes coming up. Also expect the USD to continue to fall. Inflation is almost inevitable so having some international diversification is a good idea (eg FTSE) - you can get that though from commodities.

    If you do get interested in individual stocks, the books that really got me into it were Peter Lynch's One up on Wall Street and Beating the Street. They're a bit dated now with their references but the concepts are the same. I'd also check out the Motley Fool (www.fool.com) for ideas and to learn more about fundamental investing.
  • Posted by a hidden member.
    Log in to view his profile

    May 11, 2012 7:08 PM GMT
    gekkisaidaiich saidYes, I use morningstar. These are both 5 star rated. I check out the beta, stddev, and expense ratio, etc when I choose a fund. But nothing seems immune to recent chaos. I do have another fund that's mostly gold, silver, bonds, etc. And I have another that's diversified based on maturation date. So it goes from risky early on to more stable as time goes by. Just saying I feel like I'm missing some key information that could help. I don't have anything in ETFs so I'll check into that. I'd buy a house if I could, that is great advice. But I did debt consolidation a few years ago and I'm still picking my credit back off the floor. Thanks guys.


    If you still have any debt, your priority should be to pay it off (unless paying it off early incurs a heavy penalty), before you even think about investments or even savings. (Of course, you may have already paid it off, as you say your consolidation was some years ago.)
  • Posted by a hidden member.
    Log in to view his profile

    May 12, 2012 2:46 AM GMT
    I invest in Vanguards Wellington Fund, it's 60% stock and 40% bonds. I never quit investing, even when the market was dropping. What I did do was open another cash fund (money market retirement fund), and put some money in cash and some money in Wellington. That helped me sleep at night. I put money into these funds every two weeks without fail. Sometimes the market is up, sometimes the market is down. It all averages out. Don't quit investing, and keep your fingers out of the till. At 37 years old, in twenty years, you'll see some good growth.icon_smile.gif
  • Posted by a hidden member.
    Log in to view his profile

    Jun 28, 2012 12:22 PM GMT
    1333111282015_4398429.png
  • Posted by a hidden member.
    Log in to view his profile

    Jun 28, 2012 12:30 PM GMT
    charlitos saidApple


    The bulk of my portfolio is in two positions, Apple being the largest. The other one is GLD (ETF that holds gold.)
  • Posted by a hidden member.
    Log in to view his profile

    Jun 28, 2012 12:34 PM GMT
    One of the best investing methods is currency investing. Unlike the usual predictable market of the stock exchange, currency exchange is one of the vast expanding markets on the planet with the back up source being non renewable resources such as platinum and other valuables. It's always best to invest in something concrete such as this rather than a make up figure such as a stock.