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I somehow feel confident that the regular posters here will stay within the general boundaries, and not let anything get too far out-of-hand, as can so often happen with political threads.
Hey... c'mon now... we're professional posters here... the cream of the crop.
TM
Asian markets are up, Euro is down a little bit in early Monday trading. I feel a surge coming on. Naturally I'll probably sleep through the first bit of the action on the US exchanges.
2013 LX 570 2016 LS 460
Probably the best we can hope for is that it doesn't do any harm !! I have little trust in the current legislature or the current administration.
2013 LX 570 2016 LS 460
I'll drink to that!!
Citi has a nice bump so far today though.
TM
TM
It makes sense to me to take advantage of this nasty opening this morning... so I have purchased a very small amount of stocks once again.
There are some bargains out there... take a look.
This is my approach for a while... to buy moderate and small quantities of stocks every time there is a major decline in the markets... continuing to build a bargain-priced portfolio that should produce nice gains in the future.
Of course, this approach is especially significant to those of us that believe the market will ultimately go higher in the future.
TM
Truer words were never spoken.
TM
I am convinced that this is a good time to buy Citigroup. As some of you know, I was out of it for a while, but I feel strongly that this is now a good time to buy C while it is under $4.00 / share.
I am not just blowing smoke here... I personally just bought $50K more of the stock... and I am now totally committed to this stock for the long term.
As a riskier move, I have been accumulating Sprint for a little while, and it is proving to be a good move already. I still believe there is a whole lot of upside, and the stock is down today after two days of huge gains... which means that today could be a good day to buy the stock.
TM
Any idea if the DOW is going to settle in around 10,8 or 11 and then go sideways for a while?
These 1,000 point swings are kind of fun, but maybe we could use a bit less excitement....
More significant, as I now look at the market, I see that there are obvious values... so regardless of what happens in the short-term, these prices are a lot better than they were, and because I was out of market, I can now use the cash to re-enter at a better cost basis than before.
Big market declines, if they happen again, are opportunities, IMO.
The problem with portfolios that "stayed the course" during the market decline, is that because the capital is already invested, there is usually less cash available to take advantage of dips, and the short-term goal becomes more of trying to get "even" as opposed to getting "ahead".
But, that said, these lower prices should be looked at carefully as possible buying opportunites.
TM
TThe old adage of sell in May,may be true this year, but I am just going to hold the bond investments I have , and buy more on reasonable dips.....I did buy PTA the other day at 14.50$ ...It has been hard to buy after Barrons had the interview with Billl Gross at the beginning of the year......Tony
I don't know about you folks, but I am really getting sick and tired of hearing about the European situation. It's about time the markets break away from that BS.
If I am wrong, I will not post here again (OK that's a lie
Here is the story:
High unemployment remains a stumbling block to a stronger recovery in the U.S.
The unemployment rate jumped to 9.9 percent last month.
A separate report said the nation's economy grew at an annual rate of 3 percent
in the first three months of the year, worse than an initial government
estimate of 3.2 percent growth. The revised figured was also worse than the
updated forecasts by economists that had predicted it first-quarter GDP rose
3.4 percent.
While slow, steady growth is seen as a positive coming out of the recession and
helped drive stocks higher early in the year, it still isn't strong enough to
make a big dent in unemployment. Growth would have to climb to around 5 percent
for a year to cut the unemployment rate by 1 percentage point.
Even if stocks surge out of the gate, early morning gains have not necessarily
meant the market will remain strong throughout the day.
Twice this week, stocks have rallied early in the day only to see those
advances erased in late-day selloffs. The Dow Jones industrial average was up
135 points Wednesday morning, but ended the day down about 69 points. It was
the Dow's eighth drop in the last 10 trading sessions.
The slide Wednesday afternoon was tied to the Financial Times report
questioning whether China would cut its holdings of euro-denominated bonds.
Stocks had been rallying for most of the day after two upbeat reports on the
U.S. economy. April durable goods orders and new home sales both rose more than
forecast, providing evidence that the volatility in markets and concerns about
a potential slowdown in Europe's economy have not affected a domestic recovery.
Bond prices fell Thursday as investors moved into riskier assets. The yield on
the benchmark 10-year Treasury note, which moves opposite its price, rose to
3.28 percent from 3.19 percent late Wednesday.
Overseas, Britain's FTSE 100 rose 2 percent, Germany's DAX index gained 2.4
percent, and France's CAC-40 jumped 1.8 percent. Japan's Nikkei stock average
rose 1.2 percent.
Both stocks ended down after a late-day sell-off, but Apple emerged ahead with a market value of about $222 billion, compared with Microsoft's $219 billion, according to Reuters data.
It seems that Apple is over priced and MS under valued. What do you all think?
My money goes to Apple. Just looking at the products says a lot... with more on the way. I also think it is a better company internally.
Or... you can always split your investment, such as 75% Apple and 25% Microsoft.
TM
I LOVE your optimism today. Nice way to start out the forum this morning.
I hope it all happens like you say... but I do think there is still a good possibility of late-session profit-taking... we'll see.
If there is another big dip, I would BUY without hesitation.
TM
I don't own any Apple product either. However, that has not stopped my from loading up on AAPL stock the past several months. They are more than a great company. They are one of a kind!
I agree. I've owned some Apple that I bought in 2004 and I'm slowly unloading it. They can't get too much bigger now that we are at this size. Their fast growth won't continue that much longer, and the current stock price is an anticipation of that growth. So my thought is that when everybody else thinks it is a great company and time to buy, it is time to sell.
Another generation of iPhone is about to be released and that will be yet another big plus for Apple.
Consider that another new product will emerge in the future, as always.
Steve Jobs is not the only genius at the company. That is baloney. And, he doesn't always make the best decisions... proven by his anti-Flash perspective.
Apple has some legal challenges ahead, further due to Steve's decisions. And, there are some other geniuses behind the scenes that will have the opportunity to emerge upon Job's ultimate departure... which I hope isn't too soon, of course.
Initially, Apple stock will probably decline when Steve is gone, but ultimately, it is entirely possible (and likely, IMO) that Apple will become a BETTER company after Steve is gone, and the stock will return to new highs. Those that believe Steve is a genius should consider that he would therefore have a genius plan in place that considers his inevitable departure.
TM
I realize that we are not yet completely out of danger, but the CNBC talkingheads looking for the Dow to dip to 8500-9000 are going to be dead wrong. I am now more convinced than ever that we will make new highs in the not too distant future. The market will be gradually focusing away from the European crisis.
2013 LX 570 2016 LS 460
Bravo Charlie, you pegged er today. Good thing. I was thinking I should sell out and go buy more Foreclosures. I think the real estate market is bumping the bottom of the barrel. I looked at a 2100 sq foot house this morning in ok condition on a 3rd acre. Bank is asking $289k. I think we are going to offer $250k cash and see if they bite. It will rent for $2000 easy. That is close to 9% return on investment after taxes. The money is sitting in Chase at 1/2%. The houses in the neighborhood are all in the $400k-$500k according to Zillow.com.
2013 LX 570 2016 LS 460
Me neither. Rather put some money in a REIT than deal with tenants or a service.
BUT... here's the rub. I have taken a bit of a risk here today by selling out towards the end of the day, and taking the profits.
So... I have put myself in a very tough position of having to wait until it retreats enough to get back in. The only way I will lose on this is if the market opens dramatically on the upside right out of the gate, and NEVER goes back down. If the opening isn't dramatic on the upside, then I can counteract today's decision and simply step right get back in and continue where I left off... or I can always stay out for a while and wait and see if there will be enough of a dip.
I don't mind admitting that this is a tough one. As Houdini said, it's torture. I also don't mind admitting that I kind of wish I hadn't done it, and frankly, I can't wait to get back in the market at the right time... maybe tomorrow, or next week... we'll see, and I'll let you know. So far, everything has been working out really great though.
TM
Is the rental market there that strong? Here, I can easily rent a house that would sell for 400K+ even in this market for under 2K, and condos/apts that would have sold for 250K+ during the crazy days are lucky to go over 1K anymore.
PS
Cash talks on these bank owned properties. No hassles getting someone qualified. Clean fast deal. My daughter told me that hundreds of condos in So CA have sold at auction for $50k and less. We advised a friend to walk away from her $325k mortgage on a condo that may not bring $100k. Plus the government has moved a bunch of welfare people into the complex really killing the value.
The way you have been timing the ups and downs on the market in recent weeks combined with the schitzo behavior of this market, I'm sure you will come out "smellin' like a rose" once again
Thanks...
Yes, consider that the Dow is only up 65 pts. for the week, and is down approx 7% for the month. So, yes, I am well ahead due to the timing ... which avoided the downturn, and then took advantage of the upswing.
Edit: I am re-rentering the market this morning while the market is down. I have changed my portfolio slightly as well, shedding some stocks and adding others.
TM
The massive Foxconn factory in the southern Chinese city of Shenzhen is known for assembling famous electronic goods like Apple's iPhone and iPad. But in recent months it has gained a darker image, as a place where distraught workers regularly throw themselves to their deaths. The latest fatality came on Tuesday morning, when a 19-year-old employee died in a fall in the company's Shenzhen compound, according to the state-run Xinhua news service. He was the ninth worker this year to have died in a fall from factory buildings on Foxconn's properties in Shenzhen; two have survived suicide attempts, according to state-media reports. Another teenager, who the company revealed this month died after jumping from a company building in Hebei province in January, brings the total employee death toll from falls to 10 this year.
The string of deaths has drawn attention to the labor practices of a highly successful Fortune 500 company that has 420,000 workers on its payroll in Shenzhen alone. Two dozen activists protested outside the company's Hong Kong offices on Tuesday, calling on Foxconn to improve working conditions and raise wages. The Taiwan-owned company, which is an arm of the Hon Hai Group, has defended the treatment of its workers. "A lot of things cannot be said at this point, but we are quietly doing our job," CEO Terry Gou told a business forum on Monday.
http://news.yahoo.com/s/time/20100526/wl_time/08599199162000
Are they working them 16 hours a day like Toyota was doing with their 3rd World workers?
This is an interesting and depressing story, but my guess is that it will have zero impact on Apple stock. I see that AAPL is up another 4-5 points this morning in early trade while the market in general has been down about 30-50 points (Dow).
Tag,
No one can keep up with you on getting in and out of the market. Not paying any commissions obviously gives you a huge advantage. As I stated on some previous post the past few weeks, I try to catch the BIG-TIME moves (monumental collapses or humongous rallies). Since I am of the strong opinion that the market will be a lot higher say 6 months to a year from now than where it is now, I try to add to my portfolio on significant dips such as we just had. On the opposite extreme, if I smell a monumental collapse like we had the second half of 2008 and the first quarter of 2009, I will sell everything and say "good-bye".
My recent market timing has proved to be awesome because the market itself has provided such huge swings for me to take advantage of. I would not try to time the more typical swings or dips.
As we move forward, you and I are going to buy on those dips. Let's keep each other informed so that we can be successful together... especially if we see a terrific buying opportunity.
TM
I'll rent your house if you buy me a smaller house, I promise I won't go on welfare :shades: Sure am glad I didn't buy a local condo at the height of the market when my co-workers were nagging me to do so. For once, I knew when not to enter a market.
There is money to be made in real estate investing. Just have to know your market and not get in over your head.
Btw, AAPL is probably the strongest stock on the board today.
EDIT: It looked promising as it rallied all the way to only about 20 lower. But the last 15 minutes of trading sucked for the bulls (Including yours truly) and the Dow closed about 120 lower.
No doubt money can be made in housing even now...maybe not in my area though. The disconnect between mortgages and rents has long amused me, especially in a depreciating market.
I assume you mean how cheap rent is compared to the cost of the property. No way you could buy houses in CA and rent them if you are paying a mortgage. Buying a 3 bedroom house that is ready to move into will be over $300k anywhere in So CA. With taxes and insurance you are at $2200 per month in expenses. You will be lucky to get $2000 in rent. So that is a negative cash flow. I think we agree that housing will not go up again like it did during the housing bubble. Unless you have cash sitting around that you would like to get income from, rentals are a losing proposition. I like first deeds of trust on solid pieces of real estate. That is not easy to find now either. Pretty bad when you cannot get 5% on investment safely. With half the Municipalities teetering on bankruptcy those bonds are shaky. So what do you invest in for income that is prudent?