Fear, panic, and uncertainty. The market will recover. Anyone investing in stocks must be willing and able to ride out the volatility, and stay for the long run. The market will reward you for it.
FWIW, I managed a $500 million portfolio for a national charity for 12 years, including the 2008 crash. There was panic aplenty back then, and those who acted on that panic and left the market not only bought high and sold low, but they missed the recovery.
James
Loving life in Austin
Best time to buy is when prices are low!
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.Originally Posted by donghead
Last edited by chloevankatie; 02-29-2020 at 10:54 AM.
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.
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.
James
Loving life in Austin
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!!
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.
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.
Exactly.
It's really not that hard at all.
You can even buy fake accounts with fake money while you're learning the ins & outs.
Just take the plunge & stay committed for the long haul!
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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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James
Loving life in Austin
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.
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