Financial Questions?

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06-20-2018, 05:25 PM
Securitized

Financial Questions?

Any ladies need answers to questions regarding basic finance, investments, retirement planning, debt management, estate matters, etc.? I have direct experience particularly in the areas of investments and estate management.

Do you need answers to the questions above but aren't ready to spend big money yet on attorneys, CPAs, and snake oil salesmen financial advisors? Trust me, I don't want your money.

PM me your number for a free 1/2 hour consultation. If you then decide that you want to continue the service then we can discuss future arrangements... *wink wink*.

Keep in mind that we are shifting away from the Industrial Age and moving ever so deeply into the Information Age. INFORMATION is the NEW currency in this NEW economy.
06-20-2018, 05:26 PM
Agent220

Quote:

Originally Posted by Securitized

Any ladies need answers to questions regarding basic finance, investments, retirement planning, debt management, estate matters, etc.? I have direct experience particularly in the areas of investments and estate management.

Do you need answers to the questions above but aren't ready to spend big money yet on attorneys, CPAs, and snake oil salesmen financial advisors? Trust me, I don't want your money.

PM me your number for a free 1/2 hour consultation. If you then decide that you want to continue the service then we can discuss future arrangements... *wink wink*.

Keep in mind that we are shifting away from the Industrial Age and moving ever so deeply into the Information Age. INFORMATION is the NEW currency in this NEW economy.

That and Ideas
06-20-2018, 08:56 PM
Slitlikr

What's the word on the street?
06-20-2018, 09:10 PM
Securitized

Quote:

Originally Posted by Slitlikr

What's the word on the street?

It’s been very slow due to the rain

Last week was much better
06-20-2018, 10:09 PM
Slitlikr

Went over your head, I see.....
06-21-2018, 12:41 PM
Securitized

Quote:

Originally Posted by Slitlikr

Went over your head, I see.....

Did you mean Wall Street?
06-22-2018, 07:03 PM
Securitized

Quote:

Originally Posted by Slitlikr

What's the word on the street?

Only mindless chatter sounds through Wall Street and none of it should affect you. Here's why:

1. Dow Jones Industrial Average is composed of 30 companies. Hence, the daily ups and downs of the DJIA only reflect the performance of those specific 30 companies whereas your personal portfolio may not include a single one of these DJIA companies.

2. The S&P 500 index, which contains the largest 500 American corporations by market cap, is more reflective of the overall economy than the DJIA, but it should also be ignored along with the DJIA. The reason it's not important is because the weighting of each company is based on market cap and your portfolio is likely weighted completely different then the S&P 500 composite. So, if the S&P 500 goes down 1% then you shouldn't expect your portfolio to mimic the same negative performance. However, if your core position is an ETF that tracks the S&P 500 then your portfolio performance will resemble the S&P 500's daily vicissitudes.

3. The same reasoning in regards to company weighting for the S&P 500 also explains why the daily ups and downs in the NASDAQ can be ignored.

Forget Wall Street. Instead, an investor should be paying attention to what's going on in the Chicago Board Options Exchange and I'm speaking specifically about what the 10-Year U.S. Treasury yield is doing. This yield WILL have a direct impact on the cost of consumer loans, credit card interest rates, mortgage rates, consumer spending habits, stock prices (P/E ratios), savings interest rates, etc. Also, higher yields often forecast future inflation so this can give you a head's up that things like groceries, gasoline, houses, cars, and consumer goods will likely get more expensive.
06-22-2018, 09:44 PM
MsTaylorLeigh

Quote:

Originally Posted by Securitized

Only mindless chatter sounds through Wall Street and none of it should affect you. Here's why:

1. Dow Jones Industrial Average is composed of 30 companies. Hence, the daily ups and downs of the DJIA only reflect the performance of those specific 30 companies whereas your personal portfolio may not include a single one of these DJIA companies.

2. The S&P 500 index, which contains the largest 500 American corporations by market cap, is more reflective of the overall economy than the DJIA, but it should also be ignored along with the DJIA. The reason it's not important is because the weighting of each company is based on market cap and your portfolio is likely weighted completely different then the S&P 500 composite. So, if the S&P 500 goes down 1% then you shouldn't expect your portfolio to mimic the same negative performance. However, if your core position is an ETF that tracks the S&P 500 then your portfolio performance will resemble the S&P 500's daily vicissitudes.

3. The same reasoning in regards to company weighting for the S&P 500 also explains why the daily ups and downs in the NASDAQ can be ignored.

Forget Wall Street. Instead, an investor should be paying attention to what's going on in the Chicago Board Options Exchange and I'm speaking specifically about what the 10-Year U.S. Treasury yield is doing. This yield WILL have a direct impact on the cost of consumer loans, credit card interest rates, mortgage rates, consumer spending habits, stock prices (P/E ratios), savings interest rates, etc. Also, higher yields often forecast future inflation so this can give you a head's up that things like groceries, gasoline, houses, cars, and consumer goods will likely get more expensive.

I think that all makes sense except for the part about Wall Street not affecting us. Institutional investors make up about 70% of all stock trading volume despite only owning about 17% of all financial assets. That tells me that institutional money moves the market and the rest of us are just along for the ride.

That's why I like ETFs. I know I can't beat the market because I know that people who get paid millions usually can't so I'll just ride along knowing that I'm going to 'win' over time just by putting my money in.
06-22-2018, 10:06 PM
Slitlikr

Damn Miss Taylor!
Pretty and smart.
06-22-2018, 10:21 PM
MsTaylorLeigh

Quote:

Originally Posted by Slitlikr

Damn Miss Taylor!
Pretty and smart.

Thank you. Talking about finance is a lot more fun than actually working in finance :cheers:
06-22-2018, 10:56 PM
DocHoliday

Yo OP, this angle trying to get free pussy RARELY, RARELY works. The ladies see right through it. However, knock your lights out Bro.
06-22-2018, 11:09 PM
Securitized

Quote:

Originally Posted by MsTaylorLeigh

I think that all makes sense except for the part about Wall Street not affecting us. Institutional investors make up about 70% of all stock trading volume despite only owning about 17% of all financial assets. That tells me that institutional money moves the market and the rest of us are just along for the ride.

That's why I like ETFs. I know I can't beat the market because I know that people who get paid millions usually can't so I'll just ride along knowing that I'm going to 'win' over time just by putting my money in.

Institutional money moves the market in the short term but fundamentals (i.e. earnings) drive the market over the long term.

One of the great aspects of ETFs are the low management costs, especially when compared to active management funds such as mutual funds. The issue with ETFs is that the capital inflows push up the values of all the fund's underlying equities indiscriminately. This causes some equities to appreciate undeservedly and these will eventually have to correct to a lower valuation in the future, perhaps sharply.

I actually do beat the market frequently and one way I'm able to do it is by ignoring Wall Street's daily insanity. Warren Buffett, who many regard as the greatest stock investor of all time, works out of Omaha, Nebraska, thousands of miles from Wall Street. If anything, I think the distance helps him beat the Street.
06-22-2018, 11:13 PM
Securitized

Quote:

Originally Posted by DocHoliday

Yo OP, this angle trying to get free pussy RARELY, RARELY works. The ladies see right through it. However, knock your lights out Bro.

Don't you remember the first lesson in Economics 101? I think it was, "There's no such thing as free pussy".

Or maybe it was lunch...
07-31-2018, 08:34 AM
Gandalf4301

Quote:

Originally Posted by MsTaylorLeigh

I think that all makes sense except for the part about Wall Street not affecting us. Institutional investors make up about 70% of all stock trading volume despite only owning about 17% of all financial assets. That tells me that institutional money moves the market and the rest of us are just along for the ride.

That's why I like ETFs. I know I can't beat the market because I know that people who get paid millions usually can't so I'll just ride along knowing that I'm going to 'win' over time just by putting my money in.

Smart girl. But don't throw the baby out with the bath water. Some individual stocks in your portfolio is also a smart option. Trading around a position when you find a stock that has a pattern if moving 10% to 15% range, buy a few hundred shares when it approaches the bottom of its range, then sell 50% of your purchase as it approaches the top, then when it goes back toward the bottom again, as it will, rebuy and repeat. Can make your over all return very healthy over time. Also look for "best of breed stocks that pay a nice dividend (4% or so, with a history of raising the dividend, reinvest dividends in that stock, over time, compounding will really pay off.
08-01-2018, 11:53 AM
Joecango1

Quote:

Originally Posted by MsTaylorLeigh

I think that all makes sense except for the part about Wall Street not affecting us. Institutional investors make up about 70% of all stock trading volume despite only owning about 17% of all financial assets. That tells me that institutional money moves the market and the rest of us are just along for the ride.

That's why I like ETFs. I know I can't beat the market because I know that people who get paid millions usually can't so I'll just ride along knowing that I'm going to 'win' over time just by putting my money in.

I'm impressed, beauty and brains. That's hot!
08-01-2018, 05:23 PM
Reese McClain

Quote:

Originally Posted by Securitized

Any ladies need answers to questions regarding basic finance, investments, retirement planning, debt management, estate matters, etc.? I have direct experience particularly in the areas of investments and estate management.

Do you need answers to the questions above but aren't ready to spend big money yet on attorneys, CPAs, and snake oil salesmen financial advisors? Trust me, I don't want your money.

PM me your number for a free 1/2 hour consultation. If you then decide that you want to continue the service then we can discuss future arrangements... *wink wink*.

Keep in mind that we are shifting away from the Industrial Age and moving ever so deeply into the Information Age. INFORMATION is the NEW currency in this NEW economy.

No Toodlez...
08-04-2018, 11:15 PM
MsTaylorLeigh

Quote:

Originally Posted by Joecango1

I'm impressed, beauty and brains. That's hot!

Thank you :) I had actually forgotten all about this thread and completely missed your post.
08-13-2018, 12:15 PM
Securitized

Quote:

Originally Posted by Gandalf4301

Trading around a position when you find a stock that has a pattern if moving 10% to 15% range, buy a few hundred shares when it approaches the bottom of its range, then sell 50% of your purchase as it approaches the top, then when it goes back toward the bottom again, as it will, rebuy and repeat. Can make your over all return very healthy over time. Also look for "best of breed stocks that pay a nice dividend (4% or so, with a history of raising the dividend, reinvest dividends in that stock, over time, compounding will really pay off.

I like the above approach. A little spin on it would be to use the earnings multiple rather than the share price as a buy/sell target. With higher future earnings, many past stock prices might never be revisited. Sometimes a stock appears expensive but it is actually cheap when factoring in the current or future earnings.
08-13-2018, 12:21 PM
Securitized

Quote:

Originally Posted by AlphaAva

No Toodlez...

I'll be here if you change your mind. The first half hour is free so that means it's all upside and no downside.
08-13-2018, 01:00 PM
Lovinglifeinaustin

What active money managers don’t want you to know is that none of them outperform the market in the long run. Plus, those that perform the best charge high fees, so the gains normally accrue to the managers, not the investors.

Your best bet are index funds managed by Vanguard. They offer the lowest fees in the market, and portfolios that track most of the major indices.
08-13-2018, 10:32 PM
Securitized

Most money managers don't outperform the market, but some do, like myself. Your index fund recommendation is true for the overwhelming majority of people. However, there's a few people out there who can outperform the major indices as stock pickers. With the right temperament and fundamentals, it's actually quite easy to outperform the major indices. On another note, beware of the current ETF situation related to distorted values that I described in post #12 above.
08-14-2018, 11:36 AM
Guest 072519-1

Quote:

Originally Posted by Securitized

Don't you remember the first lesson in Economics 101? I think it was, "There's no such thing as free pussy".

Or maybe it was lunch...

Especially the SO pussy... or lunch!
08-15-2018, 12:01 AM
Agent220

I should of studied Finance in college instead of taking Engineering before making a switch majors my sophomore year.

I have 0 faith in the market and sooner or later if the way our government keeps spending we will be bound to an economic crash.
08-15-2018, 11:59 AM
Securitized

Quote:

Originally Posted by Agent220

I should of studied Finance in college instead of taking Engineering before making a switch majors my sophomore year.

I have 0 faith in the market and sooner or later if the way our government keeps spending we will be bound to an economic crash.

Engineering is actually a better major than Finance because engineering involves deeper problem solving.

Stocks on average grow about 10% a year, based on a typical 10-year period. With U.S. historical inflation at around 3%, that leaves a stock investor a 7% real return over the long term. Compare this return to a bank savings account.

Out of control government spending is likely to cause further deterioration in the purchasing power of the dollar. This means items such as certain commodities or high-demand products will be much more expensive in the future than today. With that conviction, one can choose to buy things that he or she believes are likely to go up in price in the future.

Financial chaos such as an economic crash will result in a transfer in wealth. Most fortunes are made during economic crashes and financial panics because investors can buy quality assets at prices far below their intrinsic value. After the panic settles, the undervalued assets appreciate to higher prices more in line with their appropriate values and this is when the fortunes are made. For instance, compare home prices and the S&P 500 between March 2009 and 2018.
08-15-2018, 08:50 PM
HarryBalzac

Quote:

Originally Posted by Securitized

Did you mean Wall Street?

Pretty sure he meant Bissy...
08-15-2018, 08:54 PM
HarryBalzac

Quote:

Originally Posted by AlphaAva

No Toodlez...

All this market clatter and nobody witty enough to make a joke about chasing Alpha...

Wait, what?
08-15-2018, 08:58 PM
HarryBalzac

Quote:

Originally Posted by Securitized

I like the above approach. A little spin on it would be to use the earnings multiple rather than the share price as a buy/sell target. With higher future earnings, many past stock prices might never be revisited. Sometimes a stock appears expensive but it is actually cheap when factoring in the current or future earnings.

That is why a Bollinger Band analysis can help you. Never rely on single factors when investing, money or time, or anything else...
08-16-2018, 07:02 AM
Lovinglifeinaustin

Quote:

Originally Posted by HarryBalzac

All this market clatter and nobody witty enough to make a joke about chasing Alpha...

Wait, what?

LOL! Chasing alpha, catching beta.

Anyone serious about investing should read these two books.

https://www.amazon.com/dp/B000FC12C8...ng=UTF8&btkr=1

https://www.amazon.com/Random-Walk-D.../dp/0393330338

And don’t trust anyone that tells you that they can consistently beat the market.
08-16-2018, 10:28 PM
HarryBalzac

Quote:

Originally Posted by Lovinglifeinaustin

LOL! Chasing alpha, catching beta.

My goal is to catch nothing from this site, including beta...
08-17-2018, 12:48 AM
Securitized

Alpha and beta, like technical analysis in its totality, is useless "magic" over the long term. It uses previous prices to try to predict future prices, which it does correctly about 50% of the time. Technical analysis is basically rubbish when used by itself but it provides a great distraction for the middle class who dream of becoming rich someday and it's wonderful for brokerage firms who collect all those commissions from frequent trading done by college educated white collar retail investors who are too smart for their own good. Smart people make some of the worst investors because they think they "should" already know how to invest just because they're so educated and intelligent. For instance, Sir Isaac Newton lost a fortune in the stock market.

If you flip a coin, calling heads as up and tails as down, and you plot the ups and downs on a chart, the chart will look like a typical stock chart. Fundamental analysis is the only real way to win out over the long term.

Warren Buffett and Peter Lynch didn't use technical analysis to make their fortunes. In fact, I can't think of a single legendary stock investor who used technical analysis as their primary approach.

Those books (Intelligent Investor and Random Walk...) are good but they are only a piece of the overall puzzle. Actually, it's an insult to Benjamin Graham to put Random Walk in the same category. I reject efficiency theory though, which is what Random Walk preaches. Basically, it says that there are no stocks priced incorrectly and that all stock prices take into account all knowable information. Intelligent Investor says that stocks should be purchased below their intrinsic value. Intelligent Investor and Random Walk essentially contradict each other because according to Random Walk, all stocks would be priced correctly.