Investing for beginners

[/pine]

Anyone see CLX today ??

Cha Ching...!

Clorox Company (The) (CLX) Stock Price, Quote, History & News - Yahoo Finance

 

[BoylermanCT]

I have no intention of turning this into a political discussion. Moreover, focusing on political intrigues proofs my investment thesis that the legislative branch will not even see the economic problem coming until the problem and the pain that comes with it has already been manifested.

Too late on that one. Cats out of the bag...

 

[newbury]

Long ago I looked at the alternatives. I concluded: Vanguard is excellent with the lowest fees. Fidelity is excellent with slightly greater fees for the active investor. But this buys you 24/7 phone access and other customer-service benefits not present at Vanguard. I went with Fidelity because at the time their phone advice was helpful, top quality. No regrets. I suppose other firms now match this top quality. (but several of the firms I considered back then have disappeared!)

And a bit of luck: I have been getting nervous that the market was well into 'irrational exuberance' so we both took our Minimum Required Distributions early in the year.
<snip>
Anyhow back on topic - The last financial asset we hadn't moved into the Fidelity master account was wife's 457. After urging from the kids to simplify our affairs, a month ago she requested Fidelity to initiate closing that outside 457 and move the proceeds into a Fidelity IRA. (One of the many things full-service Fidelity can do for you!) Blind luck! The proceeds of 40 years 457 savings that sold at the recent market peak is presently sitting in a cash account at Fidelity. That had been about a third of our savings. Now with today's market it could be half. I'm afraid to look.

In light of what you've shared, all of which is excellent, the transferring of investment management to anybody qualified BEFORE you get vascular dementia, strokes, Alzheimer's, or too old to care is the salient point!

Strokes are difficult to predict. My lovely wife has had 2, one 10 years ago laid her up near death and forced her (and mine) unplanned early retirement. The other cases are usually slower.

The second best takeaway is assigning that money management to somebody nimble enough to have the wherewithal to react to bad news or market cycles in your interest rather than morbidly watching the ship sink.

My only contribution is to include some sort of check and balance as I have two friends who allowed their accountant management and then embezzlement happened and suddenly the song "Postcards from Paraguay" took on new meaning.

And a third point he didn't emphasize enough is good luck & timing. Back in 2008 I was on the road all the time, often with no internet connection. I had to go in for back surgery in late September and knew I'd be on drugs so I got all my retirement funds out of stocks. The market dropped 20%. By the time I returned to work all my friends thought I was a stock wizard.

USAA is giving members a couple of months free insurance. I don't think they have the money on hand for a refund.

Meanwhile, right or wrong, I dumped half my investment assets and fled to cash today after hearing that 2 million mortgage lates have happened in the last two weeks. It took over a year during the Great Recession for that to happen. An article in the LA times thinks up to 15 million mortgage defaults can take place and those guys are mere speculators in the financial news. Trouble is that after 120 days of forbearance, Frank-Dodd requires foreclosure proceedings to begin and non-performing assets do not help leveraged bank balance sheets. The Fed has already relaxed bank leverage requirements, but GovCo sponsored enterprises like Fannie and Freddy are literally still dealing with the fallout from the Great Recession.

In the context of a political situation where we can only do one thing at a time, and that thing for now is to try and oust our executive branch from office which means politicalizing every blessed thing the executive branch does, I have little confidence that Congress will bring timely legislature to bear before things really hit the fan. For those reasons, I'm going to sit on the sidelines hoping I don't see a train wreck in slow motion coming down upon the USA. Investment wise, with the mass media and one one-particular voting block fighting against flipping our economy back on, what I mean is that I suddenly believe there are economic pains coming that are unrelated to COVID19 that can still shock our markets down as we saw last month in March, 2020.

Meanwhile, my little real estate brokerage is fairly busy considering nobody is moving around. I had planned to expand my operation this year but my COVID19 hassle is that I cannot get new agents because all the license testing has been shut down since the first week of March.

If I'm wrong by pulling assets out of the market, all I miss out on is opportunity.

But your missing the falling knife.

If so many people weren't deep in consumer debt, this crisis wouldn't be that serious.

And look at them in the food lines, driving their new SUV's.
I wonder how the Russians and Saudi's are feeling now? When I came down to Mississippi in January I was paying about $2.30/gal for RUG. Now it's down to about $1.40.

 

[MinnesotaEric]

But your missing the falling knife.

Hopefully, I've got plenty of time to get stabbed.

Got another fully signed and executed purchase agreement today so RE continues to purr along.

 

[CalG]

I've got three silver dollars.

They are worth about $45 ...

If I find a willing buyer ;-)

 

[BoylermanCT]

I've got three silver dollars.

They are worth about $45 ...

If I find a willing buyer ;-)

What's special about them? I have several dozen in coffee cups in my dresser. Both Eisenhower's and Susan B Anthony's. I saw a value of $5 for the Eisenhowers. Figure once I am gone they might be worth something!

 

[fruitcakesa]

My wife found a large 1852 copper penny on an old disused trail in the woods near our home, hooboy we are flush now.

 

[/pine]

Anyone shorting travel, leisure and lodging issues ??

Bets Against the Stock Market Rise to Highest Level in Years - WSJ

 

[MinnesotaEric]

Bets Against the Stock Market Rise to Highest Level in Years - WSJ

I'm not shorting on principle but I don't mind messing with those that are shorting. With oil down below $15 a barrel in the early morning, I think I'll swoop in on the morning bell and purchase some 3x ETF like NRGU and sell it on the closing bell under the assumption, nah, this week's expiring oil futures contract will get bid up a bit unless people really are out of oil storage.

#talkingmybook so be careful following me.

Edit: in NRGU at $2.26 and $2.24 as my order got busted up. I saw an oil print at $10.88 in premarket, off 40.45% and thought that is blunderingly a nutty overshoot to the downside. The last time this happened people started buying empty oil tankers and filling them up with cheap oil. The same thing will happen. Currently the oil futures contract that will expire this week is trading at $11.53 and NRGU, the 3x long oil ETF is at $2.42 making this a tidy trade already.

 

[/pine]

I'm not shorting on principle but I don't mind messing with those that are shorting. With oil down below $15 a barrel in the early morning, I think I'll swoop in on the morning bell and purchase some 3x ETF like NRGU and sell it on the closing bell under the assumption, nah, this week's expiring oil futures contract will get bid up a bit unless people really are out of oil storage.

#talkingmybook so be careful following me.

Edit: in NRGU at $2.26 and $2.24 as my order got busted up. I saw an oil print at $10.88 in premarket, off 40.45% and thought that is blunderingly a nutty overshoot to the downside. The last time this happened people started buying empty oil tankers and filling them up with cheap oil. The same thing will happen. Currently the oil futures contract that will expire this week is trading at $11.53 and NRGU, the 3x long oil ETF is at $2.42 making this a tidy trade already.

buy low-sell high
sell high-buy low
really don't see the difference as long as the shares are there to borrow...

Most of the whiners and complainers of short selling don't even bother to use cash accounts...they trade out of street accounts which leave their shares available to loan...they are their own worst enemies...!

As for oil futures....I don't like competing with the IMF and the world bank..

 

[MinnesotaEric]

buy low-sell high
sell high-buy low
really don't see the difference as long as the shares are there to borrow...

Most of the whiners and complainers of short selling don't even bother to use cash accounts...they trade out of street accounts which leave their shares available to loan...they are their own worst enemies...!

As for oil futures....I don't like competing with the IMF and the world bank..

Speaking of, I looked at the major owner of USO finding out that it is the Treasury and Federal Reserve and opened up an actual investment position. I mean how long can oil remain at $5.00, oh until the end of tomorrow, then it will bounce to next month's contract which is currently trading.

Oopps I see they just did a giant reverse split on tomorrow's May contract.

 

[Racenut]

So everything I read says leveraged ETF's are dangerous for us mere mortals. So what's the best way for us mortals to take advantage of rock bottom oil in longer terms? Yes, I'm assuming that within a year or two it will be multiples higher than it is now. Buying barrels of oil and storing them seems inconvenient at best.

 

[California]

Buying barrels of oil and storing them seems inconvenient at best.

For the first time ever oil prices are ... negative! Negative $37.63 per barrel.

Slate - this means that anybody who is supposed to receive a shipment of American crude but doesnt want it will have to pay somebody else to take it.

Anybody here have contracts to buy April oil?

 

[Tomtint]

For the first time ever oil prices are ... negative! Negative $37.63 per barrel.

Slate - this means that anybody who is supposed to receive a shipment of American crude but doesnt want it will have to pay somebody else to take it.

Anybody here have contracts to buy April oil?

The irony here is that you can't actually buy it for -37.63....

 

[vaillandt6]

To begin with, I can advise you to watch instructional videos on YouTube on this topic. This is the most straightforward and most understandable way to understand where everything comes from and how it all works. I studied this way myself, and it took about a year before I started working on my investment portfolio with the Find Dividend Investment Ideas service. I didn't rush to take any action before figuring out all the nuances and how it all works. Of course, I am far from a financier by education, but even if I have figured out the topic in this way, then you will succeed too and you have nothing to fear

 

[California]

to begin with, I can advise you to watch educational videos on YouTube on this topic

Dunno that I would advise a beginner to start there. Most of the financial vids that I see listed on YT are wildly contradictory with one another, and to the slightly more experienced eye many, most, are pushing something not in the best interest of the naive beginner.

I suggest start with the fundamentals. Look up the concept of 'Boglehead' and go from there.

And recognize the fundamental difference between investing and speculation. Speculation in essence means betting your money that your personal judgement is better than the whole world of financial analysts and other speculators, who overall have unimaginable research and computing power that you don't have access to.

 

[Raul-02]

best way to start investing for beginners?

Buy Ben Graham's book. Practice Dollar Cost Averaging. Buy what you know. NEVER take advice from any one about what stocks to buy especially on TV. Buy solid good companies when you think they are a little cheaper, Add them any way even when they are not.
NEVER take advice on stock tips from any one.
Don't talk yourself into feeling as though you have to be a day trader.
Buy what you know. Did I mention not listening to stock tips?
ALWAYS have a few grand or more on hand for when the market goes to **** and you can clean up when there's blood in the water.

 

[Fuddy1952]

This post is two years old.
My advice though is time: earlier you start investing the better. So many factors like risk tolerance, living below your means, becoming debt free, etc. I would max out your IRA and a Roth IRA. Mutual funds have advantage of diversity, reinvesting dividends and capital gains grows faster.
Good advice not listening to stock tips. In 2008 an investment advisor on the news said consumer staples was a terrible investment. I immediately wire transfered bank to Fidelity Consumer Staples fund, one best choice I ever made. Why? No matter what In a downturn people are still buying food, detergent, etc. Her advice was causing people to sell.
Don't try timing the market, people saying "buy the dip". Best time to plant a tree is 30
years ago.
Here's an example of $5,000 in the S&P for 30 years adding $2,000/year ($38.48/week):

View attachment 731995

 

[California]

This post is two years old.
My advice though is time: earlier you start investing the better. So many factors like risk tolerance, living below your means, becoming debt free, etc. I would max out your IRA and a Roth IRA. Mutual funds have advantage of diversity, reinvesting dividends and capital gains grows faster.
Good advice not listening to stock tips. In 2008 an investment advisor on the news said consumer staples was a terrible investment. I immediately wire transfered bank to Fidelity Consumer Staples fund, one best choice I ever made. Why? No matter what In a downturn people are still buying food, detergent, etc. Her advice was causing people to sell.
Don't try timing the market, people saying "buy the dip". Best time to plant a tree is 30
years ago.
Here's an example of $5,000 in the S&P for 30 years adding $2,000/year ($38.48/week):

View attachment 731995

Fuddy, all good advice. It worked for me. From nothing, to retirement at 54. Now 30+ years later our savings balance is greater than the day I retired, and we've started pushing out money to our kids who despite great careers, are facing harsher times than we experienced.

Your attachment disappeared, 'not found'. Can you re-post it?

 

[Fuddy1952]

Sure...