Thanks - it's just that the political threads can overwhelm the topic now and then, and often they aren't related to the economy or finances at all. That's why we have the Forget Bushisms, Biden Gaffes, We have Obama blunders discussion.
Yes... you are right about that... your point is well made, and understandable.
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.
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.
I think it is too early to tell yet. From what I have read, Wall street did a lot of lobbying to keep certain things out of the legislation and now there are a lot of loopholes.
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.
I post this all respectfully, of course... and I will personally try to be more careful to filter my own posts... but I hope we can all continue to make those policial references that are related to the economy or finances, the markets, and therefore stocks and investing. I think the others here would agree with me here on this, and I hope you will consider it. Thanks Steve!
When I recently re-entered the market, I decided to take advantage of these much lower stock prices by purchasing a moderate amount of stocks, and I posted that the market is very likely to continue to decline.
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.
I saw this last evening as well Tag. I'm sure that Len will be interested in this news. This recall does not seem like it's a big deal but it sounds like they (Toyota) have learned their lesson from the acceleration fiasco.
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 $50K more of the stock... and I am now totally committed to this stock for the long term.
As a riskier move, I have been accumulating Sprint for a little while, and it is proving to be a good move already. I still believe there is a whole lot of upside, and the stock is down today after two days of huge gains... which means that today could be a good day to buy the stock.
I don't think we are totally out of the woods, but these swings should be less often and less severe than what we experienced, IMO. But, it's tough to know with any certainty. There are so many unpredictable events, and the global picture seems more relevant than ever before.
More significant, as I now look at the market, I see that there are obvious values... so regardless of what happens in the short-term, these prices are a lot better than they were, and because I was out of market, I can now use the cash to re-enter at a better cost basis than before.
Big market declines, if they happen again, are opportunities, IMO.
The problem with portfolios that "stayed the course" during the market decline, is that because the capital is already invested, there is usually less cash available to take advantage of dips, and the short-term goal becomes more of trying to get "even" as opposed to getting "ahead".
But, that said, these lower prices should be looked at carefully as possible buying opportunites.
That was some poor news on C.....I would think it to be under pressure , as each time it raises it`s `head` Morgan will blast away......I still like the prospects of their business, so it will probably be range bound ......Tag has the right formula to trade it....
TThe old adage of sell in May,may be true this year, but I am just going to hold the bond investments I have , and buy more on reasonable dips.....I did buy PTA the other day at 14.50$ ...It has been hard to buy after Barrons had the interview with Billl Gross at the beginning of the year......Tony
Robust quarterly economic growth in Asian countries is resulting in big stock gains overnight across the globe. The idea is that the U.S. and Asian economies will be able to withstand any European debt concerns. I will come out and say it right now. My enthusiasms this morning will not jinx the market. Tag will be raking it in and he will invite all of us (all expenses paid) to a gala party at his home this summer .
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.
Here is a story from the Associated Press this morning. Pay particular attention to the highlighted portion. I will go on record (in spite of a bit bearish unemployment number this morning) that the Dow will likely reach close to 300 higher at some point today. This will not be a repeat performance of some days recently when the market started out strong and then collapsed later in the session. This will be a GOOD DAY!
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.
Apple's shares rose as much 2.8 percent on Nasdaq on Wednesday, as Microsoft shares floundered, briefly pushing its market value above $229 billion, ahead of its longtime rival.
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?
The numbers are sufficient to buy either stock, but the bigger picture is the future. Apple and Microsoft are going in different directions, and Apple is in the better position, IMO... because they are in a terrific position to continue to do well in the mobile and handheld business, on a global level, while Microsoft is still trying to carve out a niche for itself. The desktop environment affords Apple more growth potential than Microsoft at this point, IMO. Microsoft has been smart enough to get a foot inside the automobile... Ford's SYNC, for example, is brilliant, and Microsoft plays a role in that.
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.
My only fear with Apple vs Microsoft is Steve Jobs. He seems to be the only genius left at Apple. Gates being the brains at MS has developed others that seem to be keeping the trend of controlling the operating system market. I don't think the iPad is that great of a device. The Netbooks flooding the market are more practical. Though I don't personally use any Apple product and am still disgusted with MS for their latest operating systems. I am trying to hang on to XP Pro though they do not make it easy.
Though I don't personally use any Apple product.......
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!
It seems that Apple is over priced and MS under valued. What do you all think?
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.
The iPad has its shortcomings, IMO, and needs improvement. It will, without any doubt, evolve into a better product over time. But, it is SELLING like crazy, and that is the point.
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.
Well, what do you know! "Old" Charlie nailed it today. The high was 290 higher and closed 284 higher. I was convinced the strong opening was not going to give way to another collapse later in the session today. In fact, the strong opening slowly got stronger as the day progressed. The market will also have a good day tomorrow.
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.
I am basing my Apple thinking on the total mess when the board forced Jobs out the last time. Hopefully it is an all new board with some smart ones sitting in there.
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.
I think I would opt for a good dividend stock, or some preferred stock. Wells Fargo preferred (WCO) I think, is paying about 8 %. I do not want to be a landlord !!
Nice call Charlie! I guess all my purchases recently were a good idea after all, especially that huge Citi purchase and the Sprint purchase, as well as many others that really soared, including oil companies and drilling-related companies that were waaaaay oversold.
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.
Yeah, I have to agree with some other sentiment here. Unless that place is a huge bargain, consider how much time that place might devour. I don't know if there's a bottom in the market yet either - I think for anything to rise again, we're going to need to see significant employment and real income gains, neither of which are for the near future. The markets seem to have turned a corner, but the overall economy not close. As well, there are a lot of foreclosures still working their way through the system, which will apply downward pressure. Any bottom might be a little ways off...and there might not be a "top" again as the "bottom" is pretty much where things should have been to begin with. And then of course the drama of being a landlord. But if the place is a screaming bargain...then of course go for it.
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.
Rents have held pretty well. Takes a bit longer to get a qualified renter with 1st and last plus deposit. I talked to my daughter after I posted. She does foreclosures for a big attorney firm. She said I should offer $200k if it has been in the MLS at $289k for two months. I am figuring $50k to get it all like new again. It is money that is supposed to be generating income for my wife. She is tired of the stock market ups and downs. It is her responsibility to invest wisely. She does not consider the stock market as such. The only thing paying decent are some bond funds. It will have to be a great deal for me to get involved with getting it back in shape. It is only 3 miles from our home so not such a big deal like the rental in Hawaii, that is finally closed after 8 months.
Yeah, to get someone with ~$5K to move into that house might not happen in a day. I guess if your wife wants it as a project and maybe something to do kind of as a hobby, it couldn't hurt...but that's a tidy sum, and I have to believe there are other investment vehicles if she doesn't want to put in the effort of dealing with a rental. I am sure you would try to get it as cheaply as possible...the money gained from it might be more in the rent than any future sale. How bad are property taxes there?
Property taxes under prop 13 are not so bad. We paid about $5300 last year on this place. Nothing like Illinois and some of the Eastern cities. Oregon has steep property tax as does TX. There are extenuating circumstances. My wife wants to sell our other house. Her Niece is living there. So she thinks if she buys a less expensive place for them until they get on their feet we can sell the other place. Just keeping our family off the welfare roles. She is fed up with investment brokers and financial advisers and the games they play with your money.
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.
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.
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 .
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.
Foxconn Suicides: iPhone and iPad Factory Under Scrutiny
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.
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).
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.
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".
Well, you are in luck... and so am I... because I really think that there are more "dips" ahead... dips that will give us buying opportunities.
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.
Yeah, I don't think it will impact stock a bit...investors don't care because the average consumer doesn't care - it won't impact sales. Just another overlooked cost of doing business with China.
If that place needs 50K of work, maybe you could offer even less. A suitcase full of money would light up some eyes.
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.
I have owned condos in CA, AK & HI. It is always a crap shoot. You are held captive to all the other tenants. I won't say never, but highly unlikely for me to ever buy another condo or mobile home in a park. Houses and land are much kinder to me as investments. The other good reason to sell the old house and buy another is capital gains. If we wait much longer to sell the one we will be liable for capital gains on about $300k. We can move back in until it sells to maintain it as primary residence for 2 of the last 5 years. So selling it and buying another is the best option. Or sending the niece back to Ohio where her husband would rather live.
There is money to be made in real estate investing. Just have to know your market and not get in over your head.
Hey, I like the market action today. They tried to shove it on its "rear end" on bad news about Spain and a couple other little things, but the market has bounced off the lows beautifully. As of this writing, the Dow was only down about 45 points after being down 160. If this thing somehow manages to close higher for the day and end the last two trading days of the month very strong, look out!
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.
My condo beef is shelling out a couple hundred dollars a month for HOAs, and then risking getting hit with some mysterious 25K assessment in a few years. Risky.
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.
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?
Comments
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?