The other kind of stock

[skulhedface]

Any traders on here? Not looking for or giving advice. Where do you think the market is headed/why? I'm thinking it might be time to give some of the defensive stocks a second look. They are pretty beat up and earnings in general haven't really impressed me.

Edit: Add all the usual disclaimer type stuff. Do your own DD/ free internet advice is generally worth almost half of what you pay for it.

 

[jd4320t]

I wish I knew what you're talking about but I'm completely dumb in that area. My 401k currently has a 20% rate of return so something must be going well.

 

[DoggyDaddy]

Don't have much to contribute to this thread, but I do wish I'd have had a few extra thousand bucks to get in on the Twitter IPO yesterday (and get right back out). Price nearly doubled in one day as I understand it?

 

[skulhedface]

Don't have much to contribute to this thread, but I do wish I'd have had a few extra thousand bucks to get in on the Twitter IPO yesterday (and get right back out). Price nearly doubled in one day as I understand it?

The little guys like me and you only got about 1%. The big boys that got in before the IPO aftermarket made a fortune though. I suspect anyone that shorts twitter at this level will be very happy in 4 to 6 weeks, but I don't short.

 

[CitiusFortius]

I'd stay away from twitter (considering twitter has never turned a profit, so what are you buying???) - other than that, I'm a mutual fund guy. Individual stocks are way too volatile for me.

 

[skulhedface]

I'd stay away from twitter (considering twitter has never turned a profit, so what are you buying???)

This was my thought about Tesla as well, didn't slow them down much. Pretty much all the internet IPOs recently took a dump after opening day. I suspect TWTR will as well. Could be a good strangle once the options are open on it. Could have a big swing either way I suppose.

 

[Goodcat]

Well it went from mid 20's to mid 40s. I bought 5 shares of twtr with some cash that was sitting in brokerage account. I only $400 invested in stocks so I'm not one for advice. Lol. However, for bigger investors, their new campaign is about educating folks who don't understand how it works...

 

[Doug]

The stock market, in general, is up right now, with frequent dips that PRAVDA* usually reports as "huge drops in value."

It is up because the Federal reserve is pumping money into the economy in an attempt to keep Obama's policies from causing another recession. It puts money into the economy by buying bonds. Increased demand for bonds, caused by the Fed buying them, drives up bond prices and makes stocks more attractive as an investment. This drives up stock prices and the market rises.

This causes a couple of things.

First, the companies sell a lot of stock. They become "cash rich" and have a lot of capital. Since they are reluctant to expand because the economy is shaky, they pay high dividends and this increases the demand for stocks. The growth feeds on itself. The economy is shaky because no one has any idea what healthcare costs and taxes are going to be over the next 3 to 10 years. That's why very few companies are expanding right now.

Second, the very rich make most of their money from their investments in stocks and bonds. As these markets increase, they make more and more money. This causes the gap between the wealthiest and the poor to increase. Obama's policies funnel money to the rich and he then claims the wealthiest Americans are getting rich on the backs of the poor. In fact, his policies contribute to this situation by forcing the value of the stock market up while creating the uncertainty that inhibits the growth of businesses which could create jobs and stimulate the economy. Thus, Obama's policies force the situation where the "rich get richer while the poor get poorer."

As long as the Federal Reserve continues to pump money into the economy, the market will trend upwards. When they stop the constant price supports for stocks, those investments will fall to their true market value. With a diversified portfolio, you can ride the wave as it rises and probably not get hurt too bad when the crunch comes.

If you're going to buy individual stocks, hoping to pick a winner, you'd better have a lot of knowledge about the market, the field the company is in, the competition they face, and how successful they are at managing their company. Otherwise, you'll do just as well buying lottery tickets.


*PRAVDA is the network news media (ABC, CBS, NBC, MSNBC, CNN, & PBS). They support the "progressive" viewpoint that capitalism is basically bad. That's why they report the market "inches up" with a 200 point gain and "plummets" with a 100 point drop. They also report changes as "dollar amount" or "percent change," depending on which supports their bias the best.

 

[JettaKnight]

I just made 2.5 gallons of chicken stock.

It's safely invested in my freezer.

 

[rockhopper46038]

I continue to invest in the market through both my and my wife's 401(k)s, some favorable treatment on company stock and some dollar cost averaging in my taxable accounts, but I'm very leery of dropping a large buy into the total market right now. There will always be good companies to invest in that show actual earnings and/or dividends, just as there will always be speculative buys (like Twitter) for your "gambling" money, but the Fed buying is really the only thing driving this market at the moment. You can't afford to not be in it, but if there were another reasonable game in town I'd love to take my capital gains out of the market and put them elsewhere. Long established dividend paying stocks (or low cost funds that invest in them) are my hidey-hole at the moment. They have both over-performed the market and returned real earnings this year - a good situation to have.

 

[snapping turtle]

2 yeArs ago I bought ruger and smith and Wesson stock. Right after they went public I bought dunkin donuts. I have messed and done well with netflix over time buying and selling. I do get scared every oct.

I lost oat money one some tech stocks over the years but have held some others that have done well enough to almost break even over time.

I have stop losses on everything at the moment so thAt I can buy back in if they drop a bunch and start over.