Getting tough to find any deals at the moment.
I may start saving into a bond fund and wait a bit. Any thoughts on this good or bad?
I may start saving into a bond fund and wait a bit. Any thoughts on this good or bad?
Stock Advice Thread
- Thread starter dgtatu01
- Start date
I keep my liquid cash in a money market.....but my portfolio and watch list is getting large enough that something is always red. There’s always a index, sector, or mut fund that is red to put money into. Then when something really goes on sale, I sell off and buy in.
What do you get on your money market?
I may have to lower my standards on my watchlist. That's when I seem to overpay, though.
I'm almost never liquid. My paycheck goes right into the market. Addicted.
Int rates likely go up, bond values go down, be patient, wait for big drops in good stocks in January, probably.
I did buy some LAZR and added to my SPCE position last week.
Looking at taking a flyer on OM this week. Like AI but pricey right now.
Looking at taking a flyer on OM this week. Like AI but pricey right now.
The rate is very low, but that doesn't matter much. You can sit for a year in pure cash and not make a dime off it.......then dump it into a really good stock that's on sale.......boom, it goes up 50%, 70%, 100% over the next yr or two. Even though you didn't earn any interest on the money during the first yr, you've earned 50-100% over the course of 2-3 yrs which is YUGE.
But, I'm with you......I really admire people who hold a large amount of liquid cash, but I'm not hardcore myself. It really fluctuates.
After hours activity is indicating that the market looks to have a down day today.
Also, as an aside, today is the first day when fund managers can start buying Tesla. It'll be interesting to see what they do over the next month or so. Right now, SeekingAlpha has Tesla down 4% to $667 "after hours."
Also, as an aside, today is the first day when fund managers can start buying Tesla. It'll be interesting to see what they do over the next month or so. Right now, SeekingAlpha has Tesla down 4% to $667 "after hours."
Wow! I hope young people don't get the idea that any of this is normal. The market's average return since the beginning is 7-8% per year. The appetite for risk taking can be both a blessing and a curse but sure, enjoy it while it's here!
Lol. You're right.
While that is an extreme example to illustrate that you don't have to worry if you're sitting on cash for longer periods, it's not too crazy of a concept. You don't have to take a ton of risk in order to make larger gains. Let's take Boeing for example. Here is a HUGE company with steady contracts. While it might take a while to rebound, the risk of the company collapsing and losing you money is fairly low. Their price tanked due to problems with their latest aircraft combined with the pandemic........but a very large portion of their business isn't even with the commercial airlines sector. If you jumped on this company a short while ago and rode out the storm you easily could be looking at upwards of 100% return. It might take you 5-7 yrs to get it......but even that would equate to 20%/year return. This is what Warren Buffett, Phil Town, etc all do. They sit on large sums of cash.......and pounce on really good quality businesses that have gone through some kind of "event." (in which "the event" doesn't completely change the business long term)
However, this kind of investing takes lots of patience and due diligence to be sure you're buying into a company that's will pay off in the long run. While I understand this kind of investing, I don't use it a lot because it takes time and education.
It is worth noting that you don't have to value invest in this way to beat the average market returns. Below are just a couple of mut funds that have done well for me over the decades.
1. FBMPX - Fund inception 1986. Has avg >13% annually over the life of the fund.
2. FSCSX - 1985 - Avg >16.82% over life of fund.
3. FDCPX - 1985 - >12%.
4. FSRPX - 1985 - >14.60%
5. FOCPX - 1984 - >14.60%
And this is over the life of the entire funds......well over 3 decades for most of them. Some of them yielded me >300-400% in total during the crazy recent decade long bull market.
Sure, you have to factor in fees, etc. But all have performed better than market average. And I'm sure there's even better ones out there.
I lucked into them. I changed jobs in the early 2000's......and my former employer automatically rolled over my 401k with them into a Rollover-IRA.....and Fidelity just evenly distributed my money into these funds. I haven't put any more money into that Rollover IRA since it occurred.....and so I can sit back and just use it as a petri-dish to watch it grow. The funds have done so well over the last 20 yrs that I don't trade within the account.......I just watch it grow.
I have a 401k with my current employer......and a Roth that I contribute and trade within. Then, I have my taxable portfolio.
All of my mutual funds are either Fidelity or Vanguard now because they're some of the cheapest. FCNTX has probably been my biggest winner but it's very concentrated in large cap tech, as are many others include S&P 500 index funds.
My ETF's are a bigger variety but mostly include iShares, SPDR and Vanguard. I've owned the VanEck Gold Miners fund in the past for example but mostly pick individual names now like FCX or GOLD.
My ETF's are a bigger variety but mostly include iShares, SPDR and Vanguard. I've owned the VanEck Gold Miners fund in the past for example but mostly pick individual names now like FCX or GOLD.
I'm interested to see what happens with the Ark Funds. The volatility is crazy, but then again so are the returns. I have a little position in each, but not knowing what is going to happen long term I'm hesitant to jump into the deep end.
Looking toward the Butterfly Network SPAC by Longview. Ultrasound imaging onto your phone/tablet/PC.
Also, Roblox.
Also, Roblox.
LGVW - I think this has a good future. It doesn't have quite the FOMO that some of these SPACs do, it certainly has some, but that is probably a good thing if you intend on holding it long.
I am thinking you will want to hold that THCB for a good while, even if there are some dips along the way toward DA and eventual merger. That it is already 18+ at this stage in the SPAC process is saying something. It has the potential to be big. Plus the FOMO of QS, RMG, and other battery plays is going to help. The big difference with Microvast is they are an existing global company with significant revenues and the best batteries out there that are being used ... QS might have an edge with their speculative battery technology, but Microvast is already in play and I believe is the biggest supplier to US DOD.
BTWN is another very good SPAC. The potential merger value is very good with PT Tokopedia in Indonesia. The chart says it all in terms of investor enthusiasm. The only question is will we get a DA that there is an agreement to move forward with the SPAC process. This could be a monster.
Whelp......we might be getting larger checks soon from the ole gub'ment......
As a word of caution - please keep in mind that these SPACs have occasion to drop big and correct and then go back up. If you are inclined, set your stop limit losses where you are comfortable.
One other thing to repeat from a previous post - don't fall in love with your stock. Don't be afraid to take gains. Don't be afraid to sell a lemon. None of us are going to time it perfectly, just don't make mistakes because you fell in love with a ticker symbol.
One other thing to repeat from a previous post - don't fall in love with your stock. Don't be afraid to take gains. Don't be afraid to sell a lemon. None of us are going to time it perfectly, just don't make mistakes because you fell in love with a ticker symbol.
Apple has announced they want to get into the EV business......by 2024. It's unclear if they are wanting to build a car from scratch themselves or partner with a manufacturer. Most analysts feel that a partnership with Tesla, Nio, Volkswagen, etc is the likely course of action.
Take a look at SENS a CGM system manufacturer ready to affect the diabetes treatment market (Think Descom only longer lasting Monitoring). Recent FDA approval of their product sold in the European market is primed to take off in the states.
Today it has gone from $.64 to $1.00+, biggest movement in the last 6 months for them due to this news. I got in at $.40 cents a while back.
Also, Medicare approved coverage and a few of the bigger private insurance companies have too. They are affiliated with Roche and now Ascensia in the Pharm world.
Good fortune on this one fellows.
Today it has gone from $.64 to $1.00+, biggest movement in the last 6 months for them due to this news. I got in at $.40 cents a while back.
Also, Medicare approved coverage and a few of the bigger private insurance companies have too. They are affiliated with Roche and now Ascensia in the Pharm world.
Good fortune on this one fellows.
Abbott has also moved into that space and has affected Dexcom. Glad to be playing with house money at this point.