Stock Market

[NordicJag]

I was kinda wondering if I should buy in right now, lol. People have told me they lost thousands over night. Obviously if this trend continues, there would be ramifications in the hobby world. I know a lot of you guys are investors.

It should only effect the hobby world for the ones that are speculators. The investors, the ones in it for the long haul, shouldn't be effected much. For the investors those losses were probably just coming out of some fairly large gains in the months before. For most investors their disposable income is not really effected.

[Lovinglifeinaustin]

I did study Warren Buffett's investment strategy with long term investing. The valuation of stocks is the part I had trouble with. I did some practice on paper, and half the stocks I picked did well and the other half didn't. So at 50/50 I might as well be flipping a coin, lol. I feel like I need to work on understanding valuation.

Instead of trying to value specific stocks, I highly recommend putting your money in a Vanguard index fund, one that tracks a large index like the Russell 3000 or Wilshire 5000 (for example... https://investor.vanguard.com/mutual.../profile/VTSAX). Fees are low, and you’re following the general market, not subject to the risks associated with any specific stock.

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It should only effect the hobby world for the ones that are speculators. The investors, the ones in it for the long haul, shouldn't be effected much. For the investors those losses were probably just coming out of some fairly large gains in the months before. For most investors their disposable income is not really effected.

[chloevankatie]

It should only effect the hobby world for the ones that are speculators. The investors, the ones in it for the long haul, shouldn't be effected much. For the investors those losses were probably just coming out of some fairly large gains in the months before. For most investors their disposable income is not really effected.

I hope not. I know a lot of you guys are retired and live off investments.

[Lovinglifeinaustin]

I hope not. I know a lot of you guys are retired and live off investments.

If retirees (or anyone else) are smart, they will have the cash they need in the next five years invested in money market or low duration bonds. But they can still safely invest in the stock market, as long as they don’t need to spend those funds in the next 5-10 years.

[Iron_jay]

Here's my advice... look at the FUNDAMENTALS of a company. What I personally think is happening in the market right now is solely based on wide spread panic. Nothing more.... our economy is doing ok. This is also an election year so your going to see alot of bullshit and fake news currently as well as things being blown out of proportion. So... with that being said I'm currently building a list of stocks I'm going to review that have had steady growth over the last 5 years and have only seemed to dip due to market wide selloffs due to FEAR and fear alone. Also going to study their charts as well and look for any patterns that have developed... trend lines ect. I think there's some good opportunities here but it all depends on how your looking to invest... day trades, swings, shorts ect. I'm looking to buy and hold for 1 year+. I'm also only going to apply X amount of my available funds to the stock market as a whole. X amount will also be applied to the buying and selling of land. If anyone here needs any help or has anything to teach also feel free to reach out. Let's NETWORK and make some money this year!!

[Hunteradventurer]

Diapers & baby wipe stocks because there is gonna be a baby boom in nine months

[bigstickdave6969]

I will stick with the ones that have a lot of cash they can just buy back more shares not to mention great businesses, AAPL, MSFT ,FB , GOOGL.

[Larry Dump]

I did study Warren Buffett's investment strategy with long term investing. The valuation of stocks is the part I had trouble with. I did some practice on paper, and half the stocks I picked did well and the other half didn't. So at 50/50 I might as well be flipping a coin, lol. I feel like I need to work on understanding valuation.

Yes. U r correct. U might just flip the coin to get the 50/50 chance. You can get a high chance by go with index or good MF. Meanwhile use DCA in this period. Never think of buying some stock today and sell in a short period to make a fortune. It will be like buying a house and sell it the following year, most of the time will lose money.

[Ben Rhimene]

I was kinda wondering if I should buy in right now, lol. People have told me they lost thousands over night.

Not yet. This is a market slump caused by 2 events...drop in demand for everything except toilet paper, sanitizer, and masks. That is the impact of coronavirus. That is short-lived and predictable (at a global level). Took China 2 months to get through before production ramped up again...we aren't as authoritarian so figure 3-4 months. This will be a 1-2 quarter recession.

Second is Russian v Saudi pissing match. Russia wants to crush Permian producers while Saudi flexes muscles to bring Russia to cooperate with OPEC. Both countries fucking over their economies cuz oil so low. Storage issues coming with more supply and decreasing demand for oil due to coronavirus lockdowns. They will both blink, but not for 1-3 months.

So market slumps on this perfect storm.

If you buy now you will get a good price. But you will also be holding onto stocks that won't move up for a few months. My suggestion is to wait for 1 or both of the above to stabilize, then buy. No sense watching stock languish for a few months when price will be similar in May.

As for losing thousands overnight, that is only if they sold their positions. Sure, my 401-k cratered, but it will bounce back and value returns. Be careful to not listen to whiney babies who are talking about paper losses only...the only losses individuals care about are realized losses when they sell a holding.

I invest hundreds of millions daily...just none of it my own. C'est la vie...

[chloevankatie]

Not yet. This is a market slump caused by 2 events...drop in demand for everything except toilet paper, sanitizer, and masks. That is the impact of coronavirus. That is short-lived and predictable (at a global level). Took China 2 months to get through before production ramped up again...we aren't as authoritarian so figure 3-4 months. This will be a 1-2 quarter recession.

Second is Russian v Saudi pissing match. Russia wants to crush Permian producers while Saudi flexes muscles to bring Russia to cooperate with OPEC. Both countries fucking over their economies cuz oil so low. Storage issues coming with more supply and decreasing demand for oil due to coronavirus lockdowns. They will both blink, but not for 1-3 months.

So market slumps on this perfect storm.

If you buy now you will get a good price. But you will also be holding onto stocks that won't move up for a few months. My suggestion is to wait for 1 or both of the above to stabilize, then buy. No sense watching stock languish for a few months when price will be similar in May.

As for losing thousands overnight, that is only if they sold their positions. Sure, my 401-k cratered, but it will bounce back and value returns. Be careful to not listen to whiney babies who are talking about paper losses only...the only losses individuals care about are realized losses when they sell a holding.

I invest hundreds of millions daily...just none of it my own. C'est la vie...

I told them not to sell. They wanted too and were strongly considering it.

I think you are right about waiting longer. I read a book a while back about market timing (yes, I know, buy and hold is the preferred strategy). It was actually a book on real estate, not stocks, but the advice was to try to wait to buy until right up until things start to turn around again, not at the beginning of a slump but at the end.

I actually don't think I am going to buy anything, I might just play and buy stocks on paper to practice and see how I do through this slump.

[chloevankatie]

Here's my advice... look at the FUNDAMENTALS of a company. What I personally think is happening in the market right now is solely based on wide spread panic. Nothing more.... our economy is doing ok. This is also an election year so your going to see alot of bullshit and fake news currently as well as things being blown out of proportion. So... with that being said I'm currently building a list of stocks I'm going to review that have had steady growth over the last 5 years and have only seemed to dip due to market wide selloffs due to FEAR and fear alone. Also going to study their charts as well and look for any patterns that have developed... trend lines ect. I think there's some good opportunities here but it all depends on how your looking to invest... day trades, swings, shorts ect. I'm looking to buy and hold for 1 year+. I'm also only going to apply X amount of my available funds to the stock market as a whole. X amount will also be applied to the buying and selling of land. If anyone here needs any help or has anything to teach also feel free to reach out. Let's NETWORK and make some money this year!!

This sounds like a good strategy. There are some companies that I felt were very strong prior to this. I am going to adopt your strategy and go back and review their performance over the past few years and see how they are doing now and play with buying them on paper.

[Ben Rhimene]

I actually don't think I am going to buy anything, I might just play and buy stocks on paper to practice and see how I do through this slump.

There are plenty of market simulation tools which will allow you to do that...great idea!

[chloevankatie]

There are plenty of market simulation tools which will allow you to do that...great idea!

What's a good tool you recommend?

I am gonna be bummed if I actually make a lot of money but only on paper, lol.

[Ben Rhimene]

What's a good tool you recommend?

I am gonna be bummed if I actually make a lot of money but only on paper, lol.

I recommend using the tool that comes with your broker's on-line platform. So whether you have your money in Schwab, Fidelity, etc they should have research and/or planning sections. The point is not that any one is better than the other...these companies make a fortune and so the tools are reliable. Sticking with the version where you keep your money is just easier...one log-in, familiar interface, etc. What will drive your results is YOUR appetite for risk...and that doesn't change regardless of the tool you use.

Fundamentals is what drives Warren Buffett's investment strategy. Look for stocks that have gotten creamed so far this year, and then ask why? Maybe they had a bad product launch, or lawsuit, or change in leadership? But if you can't find anything that is concerning, maybe they dropped due to widespread panic. If so, logic says the underlying value is still there and should return. A great example right now is restaurants. Are they selling 10% of what they did a month ago? Less? The only thing wrong with most of them is they are prohibited from serving normally. But that won't last and business will return. So if they have cash to pay short-term bills they should be fine once bans are lifted. I, for one, plan to binge a bit on food and providers once this is over...

[chloevankatie]

I recommend using the tool that comes with your broker's on-line platform. So whether you have your money in Schwab, Fidelity, etc they should have research and/or planning sections. The point is not that any one is better than the other...these companies make a fortune and so the tools are reliable. Sticking with the version where you keep your money is just easier...one log-in, familiar interface, etc. What will drive your results is YOUR appetite for risk...and that doesn't change regardless of the tool you use.

Fundamentals is what drives Warren Buffett's investment strategy. Look for stocks that have gotten creamed so far this year, and then ask why? Maybe they had a bad product launch, or lawsuit, or change in leadership? But if you can't find anything that is concerning, maybe they dropped due to widespread panic. If so, logic says the underlying value is still there and should return. A great example right now is restaurants. Are they selling 10% of what they did a month ago? Less? The only thing wrong with most of them is they are prohibited from serving normally. But that won't last and business will return. So if they have cash to pay short-term bills they should be fine once bans are lifted. I, for one, plan to binge a bit on food and providers once this is over...

Personally, there are quite a few things I would like to buy when we come around the bend on this mess. Food and pussy are definitely not on my list, lol.