A good time to buy stockmarket shares?

  • Posted by a hidden member.
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    Apr 10, 2009 10:08 AM GMT
    I think some shares are looking cheap, I'm talking about big pharmaceuticals and utility companies and they are paying good dividends.

    With rates from banks so low I'm wondering whether it's a good time to buy some shares and benefit from the high dividends of 4-6%? I would hold them for a long period.
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    Apr 10, 2009 10:31 AM GMT
    You should make today's bf a stockbroker and ask him.... icon_rolleyes.gif
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    Apr 10, 2009 10:35 AM GMT
    It's a great time to buy stock because everything is so cheap. The market could fall more but in the long term the only place it is going to go is up. Warren Buffet, a value investor, made his billions buying low and selling high. I understand he has been snapping up the bargains out there. I don't buy individual stocks since I'm not smart enough or clairvoyant enough to pick the right one. I always thought the brokers could help. Since Bear Sterns, Merrill Lynch and Lehman brothers collapsed, I would not trust them to invest for me. Hell, they know less than I do. I buy low cost index mutual funds. That way I will never lose my shirt; yet I'll never be rich. Buffet recommends index funds for the small investor; so do many academics such as Burton Malkiel
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    Apr 10, 2009 12:38 PM GMT
    This is not 1929. Things are cheap. If you buy Dividend paying stocks you will be fine. GE. KO. WMT. MCD. ATO. SYY. ED.
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    Apr 10, 2009 12:49 PM GMT
    Buy buy buy! but buy mutual funds or ETF's (a stock that acts like a mutual find). Diversify and invest some money every month (called dollar cost averaging).

    two things to keep in mind: as you get older, you need more money in bonds and fixed securities like a CD at a bank.

    Why older people go broke in the stock market is because they keep all their money in stock.

    So

    1.) invest money every month until retirement
    2.) spead your risk by buying different securities (stocks, bonds, gold, land)
    3.) rebalance your portfolio every year or so, so that as you age you are putting more money into bonds (some say take the number 110, subtract your age, and that is the percent of your money that should be in stocks.

  • HndsmKansan

    Posts: 16311

    Apr 10, 2009 12:58 PM GMT
    pecfan saidBuy buy buy! but buy mutual funds or ETF's (a stock that acts like a mutual find). Diversify and invest some money every month (called dollar cost averaging).

    two things to keep in mind: as you get older, you need more money in bonds and fixed securities like a CD at a bank.

    Why older people go broke in the stock market is because they keep all their money in stock.

    So

    1.) invest money every month until retirement
    2.) spead your risk by buying different securities (stocks, bonds, gold, land)
    3.) rebalance your portfolio every year or so, so that as you age you are putting more money into bonds (some say take the number 110, subtract your age, and that is the percent of your money that should be in stocks.




    I hope your not licensed, no licensed investment representative would make a statement like that.. and if your not, I'd be real careful about making general statements like what you did.. .the reality is, it all depends on the needs, the timeframe and comfort levels of the client.
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    Apr 10, 2009 1:47 PM GMT
    Hey HndsmKansan, the poster asked is it a good time to buy and he is investing for the long term. So I think yes.... it is a good time to buy. No, I don't have a liscence. Just stating what I think based on what I have read about investing and what I am doing with my money. This is RJ, not CNBC, and even those guys don't know what they are talking about.


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    Apr 10, 2009 2:34 PM GMT
    I bought about 1500 Citigroup shares for 3 bucks, 2 weeks ago, hoping they do'nt go to zero. I dont know much about Citigroup, other than they used to 30 last year and 55 about 2 yrs ago. They're at 3.04 today, but I think it will go down when the earnings reports come out next week. Thats gambling and I know it.

    A bulk of my money is in 3 fidelity mutual funds...which have lost 18% since I invested last April, the DJIA lost about 50%.

    Luckiliy, I can wait for a few years- not sure I can wait for 25 though.
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    Apr 10, 2009 2:55 PM GMT
    Successful investing comes down to one primary factor: choosing the right mix of assets to own. What my associates and I do - with a lot of help from a team of professionals, is to drive overall return and risk - so asset allocation can make all the difference between meeting our goals or screwing up and falling short. My balanced growth portfolio:

    Asset Class Target Range

    Fixed Income 22 - 38%
    U.S. Large Cap 14 - 28%
    Non-U.S. Large Cap 10 - 20%
    Global Small & Mid Cap 7 - 14%
    Global Opportunities 8 - 18%
    Real Return 6 - 12%
    Hedge Funds 8 - 14%
    Strategic Cash 0 - 20%
  • styrgan

    Posts: 2017

    Apr 10, 2009 3:00 PM GMT
    jprichva said
    pecfan saidHey HndsmKansan, the poster asked is it a good time to buy and he is investing for the long term. So I think yes.... it is a good time to buy. No, I don't have a liscence. Just stating what I think based on what I have read about investing and what I am doing with my money. This is RJ, not CNBC, and even those guys don't know what they are talking about.

    For what it's worth, I spent many years as a floor trader on the exchange in New York, and I think anyone getting into this market is in for a deeply unpleasant time.

    Two and a half years ago, I got my commodity clients to dump their stocks (the ones who listened, anyway) because I told them that the Dow was going down to the 6500-7500 range. Some of them laughed, and now they're broke. But it isn't clairvoyance on my part. The earnings simply are not there to justify a higher market valuation. And they won't be for a long time.

    That said, it's your money. Have fun.


    I disagree with that assessment. There are many companies out there that still are very profitable, and are showing minimal impact from the recession. The market has dipped so low only because it's being driven by fear on the part of investors like you. Fear is a buying opportunity for the rest of us.

    Many technical indicators are saying that we've hit a bottom. Many non-financial stocks have not retested their lows from September or October. Some stocks were trading at their book value a few weeks back. I think there's concern that the markets remain volatile, and continue to dip back down to the 6500-7500 range, but if you are interested in investing long-term, stocks are a go.

    There's an aspect to this that is all about expectations. The only reason oil is rebounding is because people are investing money in it. There's still a million barrels extra being produced every day. Oil should be at $37. But it's not because speculation has alot more to do with valuation in a market like this than anything else. It doesn't matter how pristine a company's balance sheet is or what their earnings forecast is.
  • HndsmKansan

    Posts: 16311

    Apr 10, 2009 4:08 PM GMT
    pecfan saidHey HndsmKansan, the poster asked is it a good time to buy and he is investing for the long term. So I think yes.... it is a good time to buy. No, I don't have a liscence. This is RJ, not CNBC, and even those guys don't know what they are talking about.



    First of all, learn to spell the word "license" secondly, if you are going to hand out out advice, get one. Thirdly, the people on CNBC are way ahead of you...

    Most of the time, I am pretty "flexible" when it comes to others opinions, not this time. The idea of someone suggesting an "ETF" or even something as simple as a mutual fund (of which there is a huge variation of risk from one to another), options, UIT's, limited partnerships makes no sense whatsoever
    unless you know the party involved. It would make sense to say, "for those who want to save for the long term, understand investment risk and don't need their money for at least 5 years... now is a good time to
    investigate mutual funds and other investments, especially through
    dollar cost averaging, etc."
  • CAtoFL

    Posts: 834

    Apr 10, 2009 4:23 PM GMT
    I'm in the same boat as redheadguy and Krush with a slight twist ... I'm buying stocks of established companies that have a dividend yield of 5% or higher. That way, I'm not running around screaming 'the sky is falling!' and can relax while waiting out a possible recovery in early 2010 or 2011. Dividend yields can change, so it requires a little legwork to follow this strategy.

    I also agree with Strygan ... fear creates opportunities for investors that aren't afraid.
  • CAtoFL

    Posts: 834

    Apr 10, 2009 5:24 PM GMT
    jprichva said
    PSCalif said I also agree with Strygan ... fear creates opportunities for investors that aren't afraid.

    When I was on Wall Street, we used to salivate over guys like you.


    “Be fearful when others are greedy and greedy when others are fearful” - Warren Buffet.

    When you've built a Berkshire Hathaway, you be sure to get back to me.
  • styrgan

    Posts: 2017

    Apr 10, 2009 5:25 PM GMT
    jprichva said
    PSCalif said I also agree with Strygan ... fear creates opportunities for investors that aren't afraid.

    When I was on Wall Street, we used to salivate over guys like you.


    You used to salivate off UNEDUCATED investors. Most people who use a broker do not actually do real research on the company they're investing in. They don't check its debt ratios or its P/TBV. That's what they have you for.

    And these mutual funds you guys came up with as a way to manage risk? That was an awful idea too. You weighted them so heavily with financials that everyone's 401k lost 40% of its value. Great plan!!!!

    You can't trust anyone except yourself. Then, if you mess up, you can't blame somebody else.

    I have made few really poor decisions in this market, and perhaps only one or two that I really regret. I've done horribly timing GLD. I'm the only idiot losing money on commodities in this market. Go figure. Luckily, I know I'm not the only fool losing money on banks.

    C = trainwreck.


  • Posted by a hidden member.
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    Apr 10, 2009 5:45 PM GMT
    NEVER....put your money in real estate. It doesnt disappear like stocks and companies can....that's why they call it REAL estate. Even if he real estate market slumps, you still have the property to collect rent on until it reappreciates. And for retirement income, it is great because the rent go up as the cost of living goes up.
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    Apr 10, 2009 10:10 PM GMT
    jprichva saidThat's the problem with the government right now. It isn't 1929, it's actually 1930. And like you, they refuse to believe it.

    If you have to invest, buy some commodities. They never go to zero. Stocks can and do.


    My gut feeling is that we should listen to you, sir. As in the depression, it actually hit the lowest point in 1933, not immediately after the 1929 crash. I know many factors are different, but I also think the country was generally a lot stronger fundamentally than it is now. We are so incredibly in debt, and going much deeper still at an alarming rate. Our auto industries are teetering on bankruptcy. We will be soon encountering the second wave of real estate defaults. I think we're in for a few more years of downturn in this country, and not the year-end recovery that a few are predicting.
    Maybe I'm being over-cautious, but I'm feeling now isn't a good to invest in stocks at all. Then again, I'm no expert like many of you are.

    Wish I had something positive to say, but unfortunately, I can't think of anything at the moment.
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    Apr 11, 2009 8:00 AM GMT
    OK - you are going to get a lot of opinions on this site some good and most bad. First - listen to Handsome - he really knows what he's talking about, second - the real estate market is low VERY low and now is a good time to buy if you have the finances and a good advisor. Remember - research it first before you buy! Also remember that you have to be willing to loose your investment - so invest wisely!
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    Apr 11, 2009 9:54 AM GMT
    I'm thinking of buying fixed income bonds. You hold them for a certain amount of time, they pay a dividend twice yearly and you get your money back at the end of the term, if you hold it til then or you can sell them.

    http://www.fixedincomeinvestor.co.uk/x/default.html

    Property in London is not such a great bet, rents are falling because there is a glut of property and mortgage finance is expensive.

    Plus these are fairly liquid and in the UK you don't pay tax on dividends up to a certain point.

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    Apr 11, 2009 4:38 PM GMT
    Are there any REAL BROKERS on RJ???
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    Apr 11, 2009 4:57 PM GMT
    krush saidAre there any REAL BROKERS on RJ???


    I used to be licensed broker, but am no longer in the business.
  • mick85

    Posts: 137

    Apr 11, 2009 5:03 PM GMT
    Citigroup will agn taste its past glory in some yers...you have invested at the correct time and correct rates..might go a little down..but this stock will surely turn you billionaire ...a big one ...just 5-7 yrs frm now...enjoy...


    sundayswim saidI bought about 1500 Citigroup shares for 3 bucks, 2 weeks ago, hoping they do'nt go to zero. I dont know much about Citigroup, other than they used to 30 last year and 55 about 2 yrs ago. They're at 3.04 today, but I think it will go down when the earnings reports come out next week. Thats gambling and I know it.

    A bulk of my money is in 3 fidelity mutual funds...which have lost 18% since I invested last April, the DJIA lost about 50%.

    Luckiliy, I can wait for a few years- not sure I can wait for 25 though.
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    Apr 11, 2009 5:10 PM GMT
    krush saidThis is not 1929. Things are cheap. If you buy Dividend paying stocks you will be fine. GE. KO. WMT. MCD. ATO. SYY. ED.
    INTC
  • styrgan

    Posts: 2017

    Apr 11, 2009 5:24 PM GMT
    Even assuming our economy gets off life support by the end of the year, Citi and AIG will be burdened heavily by all the assistance they have taken from the government. I'm uncertain if firms that are so heavily indebted to the can ever make a real recovery. Their competitors - some of whom have been largely undisturbed by this recession - will have a giant advantage over them.

    I do think Citi will make a recovery - and is still a worthwhile investment. But this stock is not going anywhere near where it was in the 90's for a very long time. And anyone looking at its fundamentals can realize that.

    mick85 saidCitigroup will agn taste its past glory in some yers...you have invested at the correct time and correct rates..might go a little down..but this stock will surely turn you billionaire ...a big one ...just 5-7 yrs frm now...enjoy...


    sundayswim saidI bought about 1500 Citigroup shares for 3 bucks, 2 weeks ago, hoping they do'nt go to zero. I dont know much about Citigroup, other than they used to 30 last year and 55 about 2 yrs ago. They're at 3.04 today, but I think it will go down when the earnings reports come out next week. Thats gambling and I know it.

    A bulk of my money is in 3 fidelity mutual funds...which have lost 18% since I invested last April, the DJIA lost about 50%.

    Luckiliy, I can wait for a few years- not sure I can wait for 25 though.
  • mick85

    Posts: 137

    Apr 11, 2009 6:59 PM GMT
    just wait another 5-7 years ...who will realise where will citi be...Meanwhile a stock which is battered the most ...will probably give you more returns during the upmove..rather than the ones that were not that effected and not gone down much ...Citigroup ..one of the best bet ..
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    Apr 12, 2009 9:22 AM GMT
    should've bought that Horizon Beta Oil Bull stock prior to January. I knew it was gonna go up. made some money on an oil and gas company, however I lost some (under my personal account) on Nortel... i should've waited. I don't think they will go bankrupt but it was trading at 9 cents and boomed to 40 cents last week or so. I bought at 1.42 $ :-/

    pat ur weave ladies, pat pat.