So I want to get into investing
riiiightever heard of this?
http://en.wikipedia.org/wiki/Mark-to-market_accounting
thats 1 of the reasons why the big banks (not regional) are profiting and creating this fake rally...
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I can say with some confidence that B of A will hit the 20-25 price mid to late next year. If that happens, to me, thats a good buy. B of A isn't going anywhere. So, even if PPS gets lower in the coming weeks, it will eventually rebound. So, as far as Im concerned, its a good buy at 15
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Well, if the PPS for google goes down to $50, why not just wait until then. I think $15 or so is a safe bet for B of A. I could be wrong, but I don't think you are going to lose your shirt for picking some up at that price.
You know what, you're absolutely correct. Big corps like Apple and Home Depot and Amazon are still growing.. but the big DIFFERENCE is that the DOLLAR is still plunging.
The dollar gains SOME, but other currencies are breaking record highs. Why? The dollar is slowly diminishing because of printing money (inflation)
Which means that dollar that used to get you a Cup at walmart might be a 1.50, or 2.00 now. While the Yen and other currencies wealth is growing, so instead of their 1 yen getting french fries, now it's possible to afford a whole meal.
This isn't analysis or **** talking, I'm saving this dudes money. There is a reason why Barbie, BofA, Apple, etc. are all investing over seas in markets over there. This is the reason why they are building over seas. Their currency is going to take them farther, and the US corps want a piece of it.
So yea, these companies will be growing their stocks here in the US in US dollars, but our jobs, and our economy will still be taking the hit. It's other countries whose purchasing power has grown and are still going up in record highs.
The dollar gains SOME, but other currencies are breaking record highs. Why? The dollar is slowly diminishing because of printing money (inflation)
Which means that dollar that used to get you a Cup at walmart might be a 1.50, or 2.00 now. While the Yen and other currencies wealth is growing, so instead of their 1 yen getting french fries, now it's possible to afford a whole meal.
This isn't analysis or **** talking, I'm saving this dudes money. There is a reason why Barbie, BofA, Apple, etc. are all investing over seas in markets over there. This is the reason why they are building over seas. Their currency is going to take them farther, and the US corps want a piece of it.
So yea, these companies will be growing their stocks here in the US in US dollars, but our jobs, and our economy will still be taking the hit. It's other countries whose purchasing power has grown and are still going up in record highs.
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this is to the OP before this takes off as a stock discussion thread. LONG POST ahead.
research - as i said before, and up2mtns emphasized, do your OWN research. don't go off other's "hot tips". know what you're getting in to and if it's appropriate for your level of risk. stocks are up over 20% for the year, so everyone looks pretty smart right now, but a lot of this may be attributed to people pushing up stocks because they were buying based on fear of not catching the next rally. motley fool (fool.com) has some easy to read getting started guides.
risk - over longer-periods the historical direction of the stock market has been up, but every piece of legitimate investment marketing you read will tell you that past performance cannot predict future returns.. over the last 10 years the return on the S&P 500 (500 of the largest us stocks) is actually slightly negative. your return can largely depend on when you invest, so don't invest more than you can afford to lose. that's why i recommend a longer investment horizon (3/5 years or LONGER) for stocks, but this is even true for bonds.
roth IRA - this is a GREAT choice and i wish i had started one when i was still in school. a roth IRA is simply a type of retirement account in which you can buy stocks/bonds/mutual funds, etc. among the best features of the roth IRA are that you put in post-tax money so your earnings are not taxed when you pull it out (under current laws). you can pull out the money you contribute at any time and after 5 tax years (research this) you can even pull out up to $10k of your earnings towards a first home purchase. see IRS publication 590 to read for yourself. don't be afraid of all that information, it's easy to understand if you just focus.
fees and expenses - are your enemy. this is especially true if you don't have a lot to invest. i'm not sure what you're starting with, but say you plug $1k in to a stock going through scottrade (cheap trades, crap for research). that will be $7 in, and $7 out, for $14 round trip. that means you need a 1.4% gain on your stock just to break-even after fees. tradeking offers some reasonable commissions ($4.95/trade) and good customer service, so you may want to check them out.
mutual funds - the fees and expenses apply here too. watch out for "load-ed" mutual funds. loads are sales charges placed either on the front-end when you buy a fund or on the back-end when you sell a fund. these charges are commonly as high as 5.75%. when you factor in the fact that a frighteningly large percentage of mutual funds don't even outperform the market, you'll see that "load-ed" mutual funds make even less sense. so how do you find a "good" mutual fund?
good long-term mutual funds are usually led by experienced managers that have good long-term performance and know how to navigate through both strong and weak markets. if you're looking for a good actively managed mutual fund, head over to morningstar.com and read up on their recommendations. they do excellent due diligence and are known as the experts on mutual fund investing. (my firm happens to be touted by mstar and i know the level of information they asked from us and how much time they spent interviewing just to get one article out, but unfortunately i can't really legally post who i work for). sometimes you can even buy recommended funds for "free" through the major discount broker's non-transaction fee programs. the mutual fund ends up paying the fees to be in the programs so it is kind of passed on to you through the expenses. the expenses are "built in" to the price of the fund so you never see them deducted, but 1.25% and below yearly expenses are fairly typical and reasonable. it actually costs a lot to run a mutual fund (hey, my *** gotta get paid somehow).
index ETFs - this is what i recommend to most of my friends if they want a low maintenance portfolio. even some of the best actively managed mutual funds were caught crying after the recent financial mess (google: miller legg mason streak). i've got some recommended asset allocation displays that i made for my defunct-finance blog if you shoot me your e-mail address. note the key is MAJOR INDEX etf's (S&P, Russell), not those crazy triple/double long/short bronze/pork belly trading ETFs. index ETFs offer reasonable fees (typically in the 0.6% range) and instant diversification, assuming you're picking broad index ETFs. they trade like stocks, so again, watch your commissions. etfguide.com is a fairly legitimate place to read up on ETFs, although it can be overkill. also check out ishares.com.
where i'm coming from: since i left school, i put away my engineering degree to go in to finance. my first job was doing research for an investment advisor that dealt strictly in portfolios of no-load mutual funds for high-net-worth individuals ($1M+). i currently crunch numbers for an investment advisor that runs a couple of it's own mutual funds, as well as a few fixed income, long/short, and short-only hedge funds for uhnw and institutions ($5M+), so i've got professional experience with funds, stocks, and bonds. all that's to say, know who is giving you advice. there are a lot of unscrupulous individuals in this industry and most are nothing but sleazebag salesmen trying to make a dime off of you.
if you've got any more questions feel free to PM me or i can shoot you my email address.
to the OT discussion: BofA was a good pick at under $5 when i bought it. right now if your time horizon is long-term it's probably still a good hold if you're parking it for the long-term, but even at $15 it's sketchy in this environment. credit card defaults are up and the next wave of foreclosures is coming. but, look at the revenues they picked up from the ML deal. i don't know about it going up that quick in the near term... but when this financial stuff finally sorts itself out BofA will be making good money. i won't try to guess when that is and i'll just appreciate that this mess has allowed some people to make BofA a 3-bagger within this year.
research - as i said before, and up2mtns emphasized, do your OWN research. don't go off other's "hot tips". know what you're getting in to and if it's appropriate for your level of risk. stocks are up over 20% for the year, so everyone looks pretty smart right now, but a lot of this may be attributed to people pushing up stocks because they were buying based on fear of not catching the next rally. motley fool (fool.com) has some easy to read getting started guides.
risk - over longer-periods the historical direction of the stock market has been up, but every piece of legitimate investment marketing you read will tell you that past performance cannot predict future returns.. over the last 10 years the return on the S&P 500 (500 of the largest us stocks) is actually slightly negative. your return can largely depend on when you invest, so don't invest more than you can afford to lose. that's why i recommend a longer investment horizon (3/5 years or LONGER) for stocks, but this is even true for bonds.
roth IRA - this is a GREAT choice and i wish i had started one when i was still in school. a roth IRA is simply a type of retirement account in which you can buy stocks/bonds/mutual funds, etc. among the best features of the roth IRA are that you put in post-tax money so your earnings are not taxed when you pull it out (under current laws). you can pull out the money you contribute at any time and after 5 tax years (research this) you can even pull out up to $10k of your earnings towards a first home purchase. see IRS publication 590 to read for yourself. don't be afraid of all that information, it's easy to understand if you just focus.
fees and expenses - are your enemy. this is especially true if you don't have a lot to invest. i'm not sure what you're starting with, but say you plug $1k in to a stock going through scottrade (cheap trades, crap for research). that will be $7 in, and $7 out, for $14 round trip. that means you need a 1.4% gain on your stock just to break-even after fees. tradeking offers some reasonable commissions ($4.95/trade) and good customer service, so you may want to check them out.
mutual funds - the fees and expenses apply here too. watch out for "load-ed" mutual funds. loads are sales charges placed either on the front-end when you buy a fund or on the back-end when you sell a fund. these charges are commonly as high as 5.75%. when you factor in the fact that a frighteningly large percentage of mutual funds don't even outperform the market, you'll see that "load-ed" mutual funds make even less sense. so how do you find a "good" mutual fund?
good long-term mutual funds are usually led by experienced managers that have good long-term performance and know how to navigate through both strong and weak markets. if you're looking for a good actively managed mutual fund, head over to morningstar.com and read up on their recommendations. they do excellent due diligence and are known as the experts on mutual fund investing. (my firm happens to be touted by mstar and i know the level of information they asked from us and how much time they spent interviewing just to get one article out, but unfortunately i can't really legally post who i work for). sometimes you can even buy recommended funds for "free" through the major discount broker's non-transaction fee programs. the mutual fund ends up paying the fees to be in the programs so it is kind of passed on to you through the expenses. the expenses are "built in" to the price of the fund so you never see them deducted, but 1.25% and below yearly expenses are fairly typical and reasonable. it actually costs a lot to run a mutual fund (hey, my *** gotta get paid somehow).
index ETFs - this is what i recommend to most of my friends if they want a low maintenance portfolio. even some of the best actively managed mutual funds were caught crying after the recent financial mess (google: miller legg mason streak). i've got some recommended asset allocation displays that i made for my defunct-finance blog if you shoot me your e-mail address. note the key is MAJOR INDEX etf's (S&P, Russell), not those crazy triple/double long/short bronze/pork belly trading ETFs. index ETFs offer reasonable fees (typically in the 0.6% range) and instant diversification, assuming you're picking broad index ETFs. they trade like stocks, so again, watch your commissions. etfguide.com is a fairly legitimate place to read up on ETFs, although it can be overkill. also check out ishares.com.
where i'm coming from: since i left school, i put away my engineering degree to go in to finance. my first job was doing research for an investment advisor that dealt strictly in portfolios of no-load mutual funds for high-net-worth individuals ($1M+). i currently crunch numbers for an investment advisor that runs a couple of it's own mutual funds, as well as a few fixed income, long/short, and short-only hedge funds for uhnw and institutions ($5M+), so i've got professional experience with funds, stocks, and bonds. all that's to say, know who is giving you advice. there are a lot of unscrupulous individuals in this industry and most are nothing but sleazebag salesmen trying to make a dime off of you.
if you've got any more questions feel free to PM me or i can shoot you my email address.
to the OT discussion: BofA was a good pick at under $5 when i bought it. right now if your time horizon is long-term it's probably still a good hold if you're parking it for the long-term, but even at $15 it's sketchy in this environment. credit card defaults are up and the next wave of foreclosures is coming. but, look at the revenues they picked up from the ML deal. i don't know about it going up that quick in the near term... but when this financial stuff finally sorts itself out BofA will be making good money. i won't try to guess when that is and i'll just appreciate that this mess has allowed some people to make BofA a 3-bagger within this year.
Sign up @ TD Ameritrade and get a Roth IRA, you can use it for stock trades. I'm rolling over about $5k from an existing retirement account in January. China and gold are seeing pretty good returns, I'm up about 30percent this year not counting contributions from work.
Good ol Gold =). The more the US economy tanks cuz it devaluates the dollar by printing money, the more gold will be worth.
Since 2000, gold has shot up 800%, still climbing, and even looking towards 2.5-3k per oz, now THAT is major $$.
Best thing is to split your investments. 20-25% in gold, 20% in american markets, the rest put it into a solid currency over seas seeing continue growth (which many are due to the printing of the dollar bill in excess).
You can make a lot more if you research foreign currencies and commodities. US stock market will plunge, and plunge within the next 10 yrs as the biggest hurt (worse than the depression) =p
Since 2000, gold has shot up 800%, still climbing, and even looking towards 2.5-3k per oz, now THAT is major $$.
Best thing is to split your investments. 20-25% in gold, 20% in american markets, the rest put it into a solid currency over seas seeing continue growth (which many are due to the printing of the dollar bill in excess).
You can make a lot more if you research foreign currencies and commodities. US stock market will plunge, and plunge within the next 10 yrs as the biggest hurt (worse than the depression) =p
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Good ol Gold =). The more the US economy tanks cuz it devaluates the dollar by printing money, the more gold will be worth.
Since 2000, gold has shot up 800%, still climbing, and even looking towards 2.5-3k per oz, now THAT is major $$.
Best thing is to split your investments. 20-25% in gold, 20% in american markets, the rest put it into a solid currency over seas seeing continue growth (which many are due to the printing of the dollar bill in excess).
You can make a lot more if you research foreign currencies and commodities. US stock market will plunge, and plunge within the next 10 yrs as the biggest hurt (worse than the depression) =p
Since 2000, gold has shot up 800%, still climbing, and even looking towards 2.5-3k per oz, now THAT is major $$.
Best thing is to split your investments. 20-25% in gold, 20% in american markets, the rest put it into a solid currency over seas seeing continue growth (which many are due to the printing of the dollar bill in excess).
You can make a lot more if you research foreign currencies and commodities. US stock market will plunge, and plunge within the next 10 yrs as the biggest hurt (worse than the depression) =p
who carries a bar of silver around with them.
I was at a breakfast joint last week and all these old timers were there talking. They're always there. Anyways they go off about investing, retirement, etc. One guy was talking stalks and this crusty bearded dude goes... I've got my retirement in my pocket... well part of it. Whips out a bar of Silver. I guess he's got loads of silver and gold in bars just waiting on the time. I was sitting there going... holy crap dude!!!
who carries a bar of silver around with them.
who carries a bar of silver around with them.
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i dont think gold prices will rise any further, atleast i hope because its ruining my job!
gold price going up because of investment demand is understandable but in terms of jewelry, its devastating so i dont think it'll rise any higher than $1100. it was fcking $450 in 2004. now its 1040, WTF!
at least you wont lose all the money if you buy gold, it'll always be worth something...unlike stock :P
gold price going up because of investment demand is understandable but in terms of jewelry, its devastating so i dont think it'll rise any higher than $1100. it was fcking $450 in 2004. now its 1040, WTF!
at least you wont lose all the money if you buy gold, it'll always be worth something...unlike stock :P
Well if you think about it. Gold is the offset to a bad economy. Inflation/bad economy/crap currency will always have gold as the back up and it'll always be safe.
In a good economy, sure gold isn't all that great, but when things go sour, it's a safe bet to have. Many people will hurt in the US, but you'll be fine as long as you had enough put into it =)
In a good economy, sure gold isn't all that great, but when things go sour, it's a safe bet to have. Many people will hurt in the US, but you'll be fine as long as you had enough put into it =)
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