Saul? Not my bag. Hows about some more Stonk talk?
Hehe.
While I fully admit that Saul likely is a great show. Just never watched the prequels, nor these.
However, I do always enjoy reading fellow Mgo Investors' thoughts and picks every so often.
So...any thoughts or picks? Are things gonna tank further, or is it buy time? Etc.
Cheers:)
Go Blue!
"Stonk" talk?
I prefer to discuss "Tasy".
"A day in the life of Tasy Stonk". It's a story that needs to be told.
Sounds like the name of the kid that married Jack Nicklaus' granddaughter --Todger Strunk
There will be no strunking of the tadger on this board. We do need to maintain a few standards.
Wait, what are we discussing again?
I've been waiting years to ask this question on the board, and this thread seems just bizarre enough as a rebound from Saul.
What ever happened to the Robinson family in "Lost in Space"? Did they ever make it home?
Asking for my 7-year old self.
You are an amateur. Professionals have armies of staff who do this all day long. Thus, you will always have less information than the person on the other side of the table. Asking for tips on a football board makes no sense.
Buying individual stonks is like playing the casino and people who do that tend to underperform the market by a considerable margin.
Save 20% of your income, buy low-fee index funds, and max out tax advantaged investment vehicles.
Asking for tips on a football board makes no sense.
I don't know about that. Some Michigan fans give pretty good tips.
Wall Street is not as smart as they think they are. Internet bubble, 2008, Enron. Just some examples.
Having said that if you aren't willing to put in significant time and effort into investing, then yeah, index funds are probably the way to go.
The average investor is not as smart as they think they are.
FTFY
In every example you cited I'll bet there were plenty of people on Wall Street with short positions that did fine. Plenty that lost money, too, but I'd guess that the average intelligence in a Greenwich, CT hedge fund is higher than that of the crew in Fraser's Pub on a Friday evening.
HOT TAKE:
The entire trading industry is essentially snake oil sales. On average, the wall street geniuses probably didn't fair better than the average investor. The efficient market hypothesis is either correct or mostly correct, and you do not have better than a coin flip's chance of outperforming the market on average.
Yes, and the armies of staff generally buy and sell away any advantages or disadvantages.
While your advice is good, what makes it good means that you can throw a dart a buy anything that's part of an index and your returns will likely be more volatile, but you probably won't underperform the market. That would mean the other side of the table outperforms the market and we know that not to be true.
So if you like some companies, go ahead and buy some individual stocks (don't allocated much of your overall portfolio but go for it).
And we're on a college football blog. We talk for scores of hours each year about teenagers playing a game. It's also a fun past-time to talk about stocks.
Probably some evidence that amateurs do a bad job of timing the market. Don't invest money you need in the short term and be fearful when others are greedy and greedy when others are fearful are generally good axioms.
I could not disagree with this more.
Gain knowledge/experience. Read financial statements. Do not momo invest. Invest in undervalued companies (PE) with strong financial statements, in a strong, growing sector. And most importantly, HAVE PATIENCE!!! The stock market can remain irrational for short periods - do not sell your undervalued investment on irrational 20-40% dips and take losses. The stock WILL move with fundamentals in the long run.
Also, just because the market goes down (correction/recession) does not mean you will go down with it. As equally important as finding undervalued, growing stocks with great fundamentals, is finding extremely overvalued stocks that even if they grow at current rates, it will take them 10-15 years to reach parity with being a good value at current price (high PE stock like ENPH that is a good company, but WAY overpriced). These stocks get hammered during corrections/recessions so you short them on the way down and make a killing.
Anyway, just my 3 cents.
Learn how to evaluate companies. Be patient, and buy only when you can get a good/fair price. Never panic, and never get out of the market. Index funds are okay if you don't know what you're doing, but I prefer to buy companies I like when the price is right. Also, when a great opportunity presents itself, like COVID, take full advantage.
What the fuck is a stonk?
Edit. Just looked it up. Is mid-40s old? Because stuff like this makes me feel really old.
mid 40's ? yeah, man, it sucks :) Kids these days.
Short for Stonkowski. Hall of Fame tight end.
For those that recall. Several weeks ago, the previous thread on stock picks/markets had the mispelling stonk instead of stock...Or so I thought, lol. I guess its a thing...
My attempt at humor was repeating this spelling, whilst bringing up a topic of interest during the dog days,.
My bad?
Stonks is a term often used in todays retailer traders. The Apes/Reddit devised the term Stonks and stonks only go up. Not sure if it was a misspell and just ran on Reddit, but now it’s a thing
It wasn't a mispell, it was a riff on a popular meme:
Mid 40s is indeed old, sorry buddy. Stonks is a gen Z meme.
walmart reported lowering earnings q2 and fy profit outlook, and the stock is down about 10% after hours.
they won't be the only ones affected by the failing economy. Hold onto your butt... tomorrow's gonna get ugly.
Wait til the JPowell meeting. Ugly earnings coming up plus the interest hike, spy won’t be this high for long.
I have the triple threat.
1 - Roth account I buy very small stonks in.
2 - Work 401k. Heavy S & P.
3 - Taxable account I keep income producing stocks in.
Down turns hurt when you see your investments go down. It is the time to buy more cheap. Time is your friend in the market.
I daytrade. Waiting for S&P to come down will be your best bet imo if you’re just looking to invest. I am buying back in at 350.
Max out your, Roth, ETF funds would be the way to go, 401K, and then select stocks. Find stocks with good divys. A lot of tickers have been beaten down.
bonus: I buy once the media and co. say we’re in recession. The media is typically behind and creates panic and fear. But yes, we’re not out of the woods yet.
Just buy what ever Nancy Pelosi and her husband are buying. They have the best returns. His latest pick is Nvidia per financial disclosure.
Sounds good in theory, but I got crushed on some long term calls of hers last year. Proceed with caution(or maybe spot buy only).
For fun you can read the paper about trading habits of congress
Alternatively, you can try inverse-Cramer !
Upvote for inverse-Cramer! He’s entertaining AF but his individual stock picks are usually terrible.
Years ago I was about to buy 2000 shares of LULU at a 2 handle. During Mad Money that evening someone asked about it and he hit the “don’t buy” sound effect. I canceled the order because he’s the professional right?
Later that week he said (and I quote) “It’s time to take another look at Sears.” A few years later he was shilling for JC Penney.
So whenever he starts his carnival barker act for a retail company I know where that company is headed. Macys has been a perennial fave of his although he has probably only ever seen the flagship store.
Can someone explain to me how much tax benefits outweigh investor fees? In teaching we're required to go through a broker to get the tax benefit for a 403b, but it's really easy to manage your own account by just buying vti with a 0.03% fee rate.
Teachers get so screwed by these plans with high fees. Here are some basics:
You'll be investing after tax dollars in vti, meaning you have to pay current tax on that portion of your salary that you want to invest. You will also be paying current tax on the 1.6% dividend yield from vti. If your marginal tax rate is 24% and state rate is 4%. You pay 28% of tax each year on what you invest and on the 1.6% that is distributed from the fund. Some of that dividend will be capital gain distributions which will give you a lower tax rate. When you take distributions in retirement you'll pay capital gains tax if the fair value is higher than your basis.
If you can put it in a Roth IRA, you won't pay tax on current distributions and there's no tax on distributions in retirement. This is obviously a better option but there are limits on how much you can invest each year.
In the 403b, you won't be taxed currently on the amount you put into the plan and you won't be taxed on current year investment income. You will be taxed when you take distributions (contributions plus investments income) in retirement. Your marginal tax rate could be lower in retirement.
Thank you, my primary hang up is how do I figure out the benefit of the taxes.
For example, say I pay 28% taxes up front and invest 150k over 30 years.
And then I compare that to not paying taxes up front and investing 150k over 30 years and then paying 28% tax rate upon withdrawal. Do I still come out ahead with the tax shelter benefits and is there a way to determine how much?
You have to plug the numbers in a spreadsheet with a bunch of assumptions. Here's an example of one:
Since I don't know what a stonk is, should I just assume its some inside joke that folks in finance use to to make fun of non-finance folks?
In any case, I will never pretend I'm smart enough to know what stocks, or stonks, or whatever the eff you call them, I should buy at any given time. Nor do I care enough to do my own research so I can do it myself. In no way does doing that sound enjoyable or a fun use of my time. If you do, that's great! Everyone's different, but to me, taking that up as a hobby honestly sounds boring as s--t.
We have a financial advisor at ML that handles a sizable chunk of our money. Not everything, some things we still keep separate like 401K and some non-managed accounts, but they still oversee a sizable chunk. I trust their team to know what to do with that money far better than I'd ever hope to.
I keep a very surface level awareness of how the market is doing, but that's about it, and I don't care to learn any further than that because its just not interesting to me. I can think of quite a few other things I'd rather do with my free time, because the current downturn in the market notwithstanding, I'm happy with the results we've received with someone else playing that game on our behalf.
There is a high when you nail it. After practice and commitment, then you can start nailing trades, becomes a high. Plus, putting in an order for a day trade to see it run 100%+ is amazing. Also, a means to an end for a typical 9-5 job.
I'm sure! I have no doubt that nailing a trade brings a lot of its own personal joy. But again, I just don't have the interest to learn how to do it on my own. Reading up on the companies, doing the market research, identifying trends, the idea of it is not remotely interesting to me. I'd rather go work out in the yard for 3-4 hours. I can see how it would be exciting to do for others, but I'm perfectly happy letting the experts do it for me.
Maybe I'm missing out to some degree, but the tradeoff of trying to force myself into doing and learning something I'm not interested in learning, to me, isn't worth it. If I'm going to engage in an activity/hobby that could potentially lose me a lot of money, I hope I can at least enjoy the activity while I'm doing it. That would certainly make me more invested in studying up and making sure I make the best possible choices.
I can live with missing out on those highs.
Given what i'm reading, i'd take cover through October and wait and see then. We will be bouncing or continuing a -40% year. By 2024, we will be soaring again.. rinse repeat
Technically Saul IS the prequel
i probably won't live much past my retirement (68-ish) so I enjoy what i have while i have it. if i get 10 years after that i'll call it a victory
i mean, i have meetings with my financial advisor every 3 months and max out our Roths and put $$$ into my 401k only up to the point where company match ends.
Other than that, if i have extra $$$ at the end of the year (or when my stock options vest) i just slap that into S&P 500 index here and there. If it's good enough for warren buffet to put 90% of his money into it's good enough for me.
Is this the place to hype Gamestop or AMC or... uh... Bed Bath and Beyond? Unfortunately, MGoBlog will probably have to wait awhile before issuing MGoCoin or creating MGoNFTs; at least until the next bull market.
NOT FINANCIAL ADVICE
Anyway, I thought this article headline was pretty hilarious, and says exactly what Reddit apes want to read: A New Bull Market Can’t Start Until Investors Give Up - WSJ
STILL NOT FINANCIAL ADVICE
This thread stonks