Fidelity - Stocks by the slice?

[Oaktree]

If a stock has a low risk like one of the perennial standards like ATT there is not much risk but not much to gain either. For the lowest risk possible just buy a CD at the bank with 1% interest.

Lotsa luck finding a CD that pays even 1%...maybe some of the online banks, but local ones not so much.

The advantage to the blue chip stocks is that they pay a pretty solid dividend, often in the 3-4% range, maybe more. Their price may not go up much but you're still ahead, even more so if you have your dividends reinvested.

 

[Jstpssng]

Lotsa luck finding a CD that pays even 1%...maybe some of the online banks, but local ones not so much.

The advantage to the blue chip stocks is that they pay a pretty solid dividend, often in the 3-4% range, maybe more. Their price may not go up much but you're still ahead, even more so if you have your dividends reinvested.

My CU pays 1.11%, but only on 24 month or longer terms. I will occasionally buy one for a lesser time period if I"m saving for a purchase... it earns a little interest and keeps the money from disappearing to one of the day to day emergencies... like a new grapple or snowsled.

 

[BoylermanCT]

My online savings account pays 1% with no minimums, no fees, no restrictions. Capital One 360 which used to be ING Direct. Oh for the days when CD's paid 7-8%!

 

[Richard]

That's why I said you have better odds with stocks than you do at the casino. At the casino the odds are ALWAYS in the casino's favor. Not so with stocks.

The error of your logic is.... if you go to the casino and make a bad bet, you lose 100% and it's immediate. With stocks, if you make a bad bet, it MIGHT go bankrupt "immediately" but that is far from normal.... instead, it will grind down 10%, 20%, 80% and you typically still have some residual value there.

Also, in the stock market, YOU can "be the house" by selling covered calls and or covered puts. Now YOU make the rules.... what underlying asset are YOU going to deal with.....what strike price do YOU choose, what expiration date do YOU want.... the market gives you the value. YOU decide if you want to do it or not. If you do, and you are "wrong" you will end up with a cash asset either way.

Covered call and you're wrong? You end up selling the stock you wanted to sell at the price YOU picked AND you keep the option premium.
Covered call and you're "right" (not called), you keep your stock and you keep the premium

Covered put and you're wrong? You buy the stock you wanted to buy at the price you wanted to pay AND you keep the premium
Covered put and you're "right" (not assigned) you keep the premium free & clear.

 

[JasperFrank]

"Spiders and Diamonds....." he says, whispering in your ear.....

 

[Richard]

Stolen/copied from a wise one...


There are only 2 rules in life:
1. Don't tell everyone everything you know.

I agree!!

 

[tallyho8]

My online savings account pays 1% with no minimums, no fees, no restrictions. Capital One 360 which used to be ING Direct. Oh for the days when CD's paid 7-8%!

You better go back and check your rates because Capital One 360 savings accounts went down to .5% a while back and their checking accounts went down to .1%.

 

[BoylermanCT]

Just checked, still getting 1%.

 

[tallyho8]

Just checked, still getting 1%. View attachment 660679

I saw that advertising page also when I was checking into my account. But when I logged into my savings account and went to the details page, it showed that now they are only paying .5%.
I believe that they just did not update that advertisement.

 

[two_bit_score]

My online savings account pays 1% with no minimums, no fees, no restrictions. Capital One 360 which used to be ING Direct. Oh for the days when CD's paid 7-8%!

Heck I remember when Jumbo's (>$100k) paid 15-16% easy some would go higher on short term teasers in early 1980 - 81. Yes the Carter/Volker years were good for something.

"The Federal Reserve board led by Volcker raised the federal funds rate, which had averaged 11.2% in 1979, to a peak of 20% in June 1981. The prime rate rose to 21.5% in 1981 as well, which helped lead to the 1980–1982 recession, in which the national unemployment rate rose to over 10%."

NOT political just a historic FACT.

 

[two_bit_score]

I think that's a bogus analogy (though I've heard lots of people supposedly "in the know" who've used it).
Buying a distressed stock isn't necessarily buying it "on sale". You don't know if it's going to bounce back or not. Yes, if the market in general is down, and it's a good solid company then it could very well be a good buy. But you've gotta do your homework...that stock could be in the tank for a good reason too. It's not the same thing as a sweater, box of ammo, tool or other physical item.

Buyer beware!

Enron (ENR) anyone??? Anyone????

 

[jmc]

Just stumbled across this blog posting by a financial guy who is skeptical of the stock market and of stock marketers right now. He talks about fractional shares and who pioneered them. It's kinda entertaining.

Two Reasons to Worry - HumbleDollar

 

[riptides]

Just stumbled across this blog posting by a financial guy who is skeptical of the stock market and of stock marketers right now. He talks about fractional shares and who pioneered them. It's kinda entertaining.

Two Reasons to Worry - HumbleDollar

"investing requires a healthy balance between optimism and pessimism"

LOL. I factor in my greed. I have set monetary goals, over time. Once reached, I rethink and reinvest.

I don't go for day trading, I don't go for fire and forget.

I play old school rules. But alas, even those cannot beat an algorithm.