Stock Market

[347Mike]

Because of two things. First you can't time the market, no one can over the long term. You'll do it a few times and you'll miss a few times. Those times you miss will destroy your return. The second reason is taxes. Short term capital gains will also destroy any return you make.

The way to get rich in the stock market is buy shares cheap and then put compounding on your side. Compounding meaning earnings (and indirectly dividend) growth rates and dividend reinvestment. Whatever a company doesn't payout from its profits is plowed right back into the business and shows up in retained earnings. Every quarter the book value of shares go up unless the company is a turd. Eventually the market recognizes that rise in book value in the share price.

Wall street will tell you none of this because they make money from trades not from you holding shares.

What is the percentage on short term gains?

[Broncojohnny]

Not dumping what I own as much as not trying to ride the wave. I can put my money in much profitable places than some company that is only going to yield 10% in 12 months. Why ride a stock or the market for that matter if its going to drop 20% when you can leave and catch it again without losing the 20%.

Because of two things. First you can't time the market, no one can over the long term. You'll do it a few times and you'll miss a few times. Those times you miss will destroy your return. The second reason is taxes. Short term capital gains will also destroy any return you make.

The way to get rich in the stock market is buy shares cheap and then put compounding on your side. Compounding meaning earnings (and indirectly dividend) growth rates and dividend reinvestment. Whatever a company doesn't payout from its profits is plowed right back into the business and shows up in retained earnings. Every quarter the book value of shares go up unless the company is a turd. Eventually the market recognizes that rise in book value in the share price.

Wall street will tell you none of this because they make money from trades not from you holding shares.

[Doug Hatton]

The last time the market tanked, I just doubled up on my contributions. I know this isn't a technical approach, but once the market recovers, which it will, the growth can be pretty exponential. I'm 20+ years away from retirement, so I'm not worrying too much about what my short term results are.

[347Mike]

I can see KBS selling because he is short term sensitive but I really don't get people who see a market drop like this and think they should dump what they own. Anything I own for a hold is something I bought at a sweet ass price based on what I think it is worth. And it is still a deal, nothing has changed. It isn't like some unemployment or the idiots in Washington just changed the value of a company by 6% in the last two weeks.

Not dumping what I own as much as not trying to ride the wave. I can put my money in much profitable places than some company that is only going to yield 10% in 12 months. Why ride a stock or the market for that matter if its going to drop 20% when you can leave and catch it again without losing the 20%.

[Forever_frost]

My stocks took a hit but I'm still up 30% over what I paid. Then again, I don't put a lot in it (only 50 bucks a month, it's a hobby) but today hurt.

[Broncojohnny]

I can see KBS selling because he is short term sensitive but I really don't get people who see a market drop like this and think they should dump what they own. Anything I own for a hold is something I bought at a sweet ass price based on what I think it is worth. And it is still a deal, nothing has changed. It isn't like some unemployment or the idiots in Washington just changed the value of a company by 6% in the last two weeks.

[KBScobravert]

I am not sure how dumping money into a house is going to leave you with more money but more power to you.

Oh I am well aware of that fact. But if I had sold last week vs this week the money I lost would have paid for the improvements. Yes I know right now only an idiot would invest money into a house other than necessary repairs. Call me an idiot but when I come home for good from working 5 straight years in Afg, I want things the way I want them. I have earned that. I am aware I may never see the same return when we sell in 20-30 years. It is like going to an amusement park though. The money you spend you can't back but return is enjoyment.

[Hobie]

Bring on the shit. I'll scoop up some blue chips that got beat to hell for no reason for bargain bin prices while everyone's hoarding AR lowers and silver.

That made me chuckle a bit.

[Shorty]

Bring on the shit. I'll scoop up some blue chips that got beat to hell for no reason for bargain bin prices while everyone's hoarding AR lowers and silver.

[SMKR]

Where does everyone see the market going in the next 6 months? The drop today I think is the biggest in the past 2 years? I had 4-5 stocks I have been shorting over the past few months that were goign to be a buy late this week/next week but with this huge dip I am not to sure now.

Not that my opinion holds much weight but I really thought once a deal was made there would have been a small rally. I guess the consumer spending outruled that.

down the shitter

[347Mike]

The home improvements are going to happen either way. They are easier and leave me more money for silver and cushion if the market is in okay shape.

I am not sure how dumping money into a house is going to leave you with more money but more power to you.

[Denny]

The home improvements are going to happen either way. They are easier and leave me more money for silver and cushion if the market is in okay shape.

Silver will climb, but not be the Cinderella story like last year.

[Denny]

There are way too many pulling and holding USD. Fuck around and we'll start seeing some deflationary signs (but no real deflation).

[KBScobravert]

If you are as concerned as you seem then the last thing I would be doing with cash is putting it into home improvements.

The home improvements are going to happen either way. They are easier and leave me more money for silver and cushion if the market is in okay shape.

[347Mike]

Just about everything is oversold by the charts. That is why the dollar index is looking better than expected. The technicals and fundamentals are shifting priorities.

I'm not going to chime in, as I'm not listened to anyway, but I'm holding what I have and changing my purchasing #1 and #2 for now until the ratio closes again.


Someone will pick up on that.

I agree, the technicals are showing oversold, however if we experience another hit like we did in 08 they will show oversold to the 10th power...

I will have my funds on standby for tomorrow and the rest of next week with quick stops in the event I see some sunlight peaking through.

I expect the market to do its typical bounce tomorrow or the day after then repeat itself a few times but I am more worried about over the next 6 months. I don't any thing more than a few days anyways. I am up 14% in 5 months so I am taking it slow so I don't jinx that.