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Posted: 4/25/2016 8:00:32 AM EDT
[#1]
Your thinking is backwards. Buy low, sell high. Of the market is down, you buy. If it's at a peak, you wait. Or as most would recommend, just buy a little all the time for the dollar cost averaging.
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Posted: 4/25/2016 8:46:20 AM EDT
[#2]
Quote HistoryQuoted:
Your thinking is backwards. Buy low, sell high. Of the market is down, you buy. If it's at a peak, you wait. Or as most would recommend, just buy a little all the time for the dollar cost averaging. V This. And at a minimum put in what your company matches. IIRC you're young. By the time you retire the market's ups and downs of today won't even be a blip on the radar. |
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Posted: 4/25/2016 9:14:37 AM EDT
[#3]
I increase my contributions by at least 2% every year.
My wife works for a financial planner, and she is blown away by all the clients who insist on selling every time the market takes a little dive, and then want back in when the numbers go up again. Basic economic principles escape some people. |
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Posted: 4/25/2016 9:39:35 AM EDT
[#4]
Unless you have a crystal ball, there is no value in market timing.
The only thing worth looking at as an average low information investor is earnings and what you have to pay for them. Once you break it down like that it becomes a pretty simple decision of whether the earnings are worth the price or not. Earnings yields right now are 4%-5% on average based on P/Es of 20-25. Do you have a better alternative for that money at the moment? |
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Posted: 4/25/2016 1:52:13 PM EDT
[#5]
Always contribute enough to make the company match. Otherwise you are turning down a 100% return right off the bat.
Spread the funds around into different funds not just in one target retirement fund. I look at mine about every 6 months and see what funds are performing the best that year. I don't really sell any of my funds, I just move the percentages around to the ones that are doing better than the others. Even then I'm spread out into 5-6 different funds at any given time. |
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Posted: 4/26/2016 4:17:25 AM EDT
[#6]
My contribution goes in with my paycheck.... every 2 weeks. Sometimes I'm buying high, sometimes low, but over time the highs/lows kinda even themselves out. Yes, 2008 hurt, alot, but I was also buying every 2 weeks during that period.
The important thing is that the contributions keep going in, and over time that 'egg' keeps growing... |
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Posted: 4/26/2016 7:17:27 AM EDT
[#7]
Just up the amount as much as you can handle, leave it there, and forget it. Make sure it's in something that matches the market and has a low fee associated with it.
Slow and steady through all of it will do better than most who micromanage it and worry about ups and downs. |
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Posted: 4/26/2016 12:45:13 PM EDT
[#8]
Quote HistoryQuoted:
Unless you have a crystal ball, there is no value in market timing. The only thing worth looking at as an average low information investor is earnings and what you have to pay for them. Once you break it down like that it becomes a pretty simple decision of whether the earnings are worth the price or not. Earnings yields right now are 4%-5% on average based on P/Es of 20-25. Do you have a better alternative for that money at the moment? Why don't some stocks list their P/E? |
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Posted: 4/26/2016 2:48:17 PM EDT
[#9]
Quote HistoryQuoted:
Why don't some stocks list their P/E? Quote HistoryQuoted:
Quoted:
Unless you have a crystal ball, there is no value in market timing. The only thing worth looking at as an average low information investor is earnings and what you have to pay for them. Once you break it down like that it becomes a pretty simple decision of whether the earnings are worth the price or not. Earnings yields right now are 4%-5% on average based on P/Es of 20-25. Do you have a better alternative for that money at the moment? Why don't some stocks list their P/E? What stocks are you looking at where P/E ratios aren't available? It's just "Share Price" divided by "Earnings Per Share". 99.9% of the time a site like Google Finance will do the work for you and list that ratio in the summary under the company's ticker symbol. |
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Posted: 4/26/2016 3:57:27 PM EDT
[#10]
Quote HistoryQuoted:
What stocks are you looking at where P/E ratios aren't available? It's just "Share Price" divided by "Earnings Per Share". 99.9% of the time a site like Google Finance will do the work for you and list that ratio in the summary under the company's ticker symbol. Quote HistoryQuoted:
Quoted:
Quoted:
Unless you have a crystal ball, there is no value in market timing. The only thing worth looking at as an average low information investor is earnings and what you have to pay for them. Once you break it down like that it becomes a pretty simple decision of whether the earnings are worth the price or not. Earnings yields right now are 4%-5% on average based on P/Es of 20-25. Do you have a better alternative for that money at the moment? Why don't some stocks list their P/E? What stocks are you looking at where P/E ratios aren't available? It's just "Share Price" divided by "Earnings Per Share". 99.9% of the time a site like Google Finance will do the work for you and list that ratio in the summary under the company's ticker symbol. Funny you should mention google finance. That's what I was using when I saw P/E wasn't listed on some stocks. Ill see if I can find one. |
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Posted: 4/26/2016 8:02:32 PM EDT
[#11]
The best time to invest is now. You only loose money if you sell for less than you bought it for. When stock prices tank, buy more because they're on sale.
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Posted: 4/26/2016 9:48:32 PM EDT
[#12]
Quote HistoryQuoted:
Why don't some stocks list their P/E? Quote HistoryQuoted:
Quoted:
Unless you have a crystal ball, there is no value in market timing. The only thing worth looking at as an average low information investor is earnings and what you have to pay for them. Once you break it down like that it becomes a pretty simple decision of whether the earnings are worth the price or not. Earnings yields right now are 4%-5% on average based on P/Es of 20-25. Do you have a better alternative for that money at the moment? Why don't some stocks list their P/E? Because the company had no earnings or lost money that particular quarter. |
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Posted: 4/26/2016 10:13:25 PM EDT
[#13]
Quote HistoryQuoted:
Because the company had no earnings or lost money that particular quarter. Quote HistoryQuoted:
Quoted:
Quoted:
Unless you have a crystal ball, there is no value in market timing. The only thing worth looking at as an average low information investor is earnings and what you have to pay for them. Once you break it down like that it becomes a pretty simple decision of whether the earnings are worth the price or not. Earnings yields right now are 4%-5% on average based on P/Es of 20-25. Do you have a better alternative for that money at the moment? Why don't some stocks list their P/E? Because the company had no earnings or lost money that particular quarter. Thanks. |
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Posted: 4/26/2016 10:49:47 PM EDT
[#14]
If you're investing based on earnings, beware of value traps:
What is a 'Value Trap'A value trap is a stock that appears to be cheap because the stock has been trading at low multiples of earnings, cash flow or book value for an extended time period. Stock traps attract investors who are looking for a bargain because these stocks are inexpensive. The trap springs when investors buy into the company at low prices and the stock never improves. Trading that occurs at low multiples of earnings, cash flow or book value for long periods of time might indicate that the company or the entire sector is in trouble, and that stock prices may not move higher. Read more: Value Trap Definition | Investopedia http://www.investopedia.com/terms/v/valuetrap.asp#ixzz46zVre6GO  |
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Posted: 4/27/2016 1:00:23 PM EDT
[#15]
Quote HistoryQuoted:
If you're investing based on earnings, beware of value traps: What is a 'Value Trap'A value trap is a stock that appears to be cheap because the stock has been trading at low multiples of earnings, cash flow or book value for an extended time period. Stock traps attract investors who are looking for a bargain because these stocks are inexpensive. The trap springs when investors buy into the company at low prices and the stock never improves. Trading that occurs at low multiples of earnings, cash flow or book value for long periods of time might indicate that the company or the entire sector is in trouble, and that stock prices may not move higher.Read more: Value Trap Definition | Investopedia http://www.investopedia.com/terms/v/valuetrap.asp#ixzz46zVre6GO  https://youtu.be/tLOB6ddZlSU
This is a very good point. I should clarify that when I'm talking about earnings in the context of this thread I'm talking about the big picture of what kind of value you are getting for your dollar in the broader market today. When looking at individual stocks, you absolutely need to be able to interpret earnings data in context. This is not easy to do without significant additional knowledge and research which is more the reason that average investors should be in funds of some type rather than individual stocks. |
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Posted: 4/27/2016 7:23:45 PM EDT
[#16]
There are times you can time the market. For example XOM and other major oil companies were trading for multi year lows recently and people were predicting the end of oil. That was like a big neon sign screaming buy.
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Posted: 4/27/2016 7:56:24 PM EDT
[#17]
I have lowered my contributions. Future Economy is very questionable thanks to democrats. I am placing that extra money into hard assets.
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Posted: 4/27/2016 10:57:43 PM EDT
[#18]
Quote HistoryQuoted:
There are times you can time the market. For example XOM and other major oil companies were trading for multi year lows recently and people were predicting the end of oil. That was like a big neon sign screaming buy. Yep, but I got in way too early. I didn't see oil being down this long. 
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Posted: 4/27/2016 11:29:19 PM EDT
[#19]
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Your thinking is backwards. Buy low, sell high. Of the market is down, you buy. If it's at a peak, you wait. V This. Think of it as an "election year discount". |
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Posted: 4/28/2016 1:30:50 PM EDT
[#20]
Quote HistoryQuoted:
This. Think of it as an "election year discount". Quote HistoryQuoted:
Quoted:
Your thinking is backwards. Buy low, sell high. Of the market is down, you buy. If it's at a peak, you wait. V This. Think of it as an "election year discount". |
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Posted: 5/1/2016 4:56:03 PM EDT
[#21]
Quote HistoryQuoted:
Unless you have a crystal ball, there is no value in market timing. The only thing worth looking at as an average low information investor is earnings and what you have to pay for them. Once you break it down like that it becomes a pretty simple decision of whether the earnings are worth the price or not. Earnings yields right now are 4%-5% on average based on P/Es of 20-25. Do you have a better alternative for that money at the moment? Not true. Basic technical analysis gives you good ideas of entry and exit points. No one is perfect, but you can determine trends and general movements. To answer question OP, the losses people had in 2008 weren't a result of the election year, but the general financial meltdown. And as for current year, the market is pretty strong right now. There are people predicting a recession/contraction period soon, so look up appropriate literature on that if you want. However, continual buying will give you a lower average cost, so that's a totally viable strat. And like woodsie said... 4% RoI is good stuff, way better than any interest rate you'll get from cash. |
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Posted: 5/1/2016 5:43:23 PM EDT
[#22]
We're in the midst of a paradigm change and a financial education is highly recommended and it's not the sh*t taught in universities. Might I suggest you read Nomi Prins' It Takes a Pillage or Karl Denninger's Leverage or Peter Schiff's The Real Crash? I expect to see bail-ins within a year and replacement of 401ks with US Treasuries.
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Posted: 5/1/2016 6:22:51 PM EDT
[#23]
Quote HistoryQuoted: We're in the midst of a paradigm change and a financial education is highly recommended and it's not the sh*t taught in universities. Might I suggest you read Nomi Prins' It Takes a Pillage or Karl Denninger's Leverage or Peter Schiff's The Real Crash? I expect to see bail-ins within a year and replacement of 401ks with US Treasuries. I could see that happening in a country that has debt not in their own currency. I think Ireland confiscated retirement accounts because they owed debts in Euros they couldn't pay, but why would the US Government even bother when it can print money to pay debts? I know that causes it's own problems like inflation, but I just don't see them confiscating 401ks for funds. They'll do something like a QE before that. |
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Posted: 5/4/2016 10:40:38 AM EDT
[#24]
Quote HistoryQuoted:
Always contribute enough to make the company match. Otherwise you are turning down a 100% return right off the bat. Spread the funds around into different funds not just in one target retirement fund. I look at mine about every 6 months and see what funds are performing the best that year. I don't really sell any of my funds, I just move the percentages around to the ones that are doing better than the others. Even then I'm spread out into 5-6 different funds at any given time. FWIW, by doing that, you are in effect, buying high and selling low. Set a target allocation and re-balance based on that ever y ear or so. |
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Posted: 5/13/2016 8:38:51 PM EDT
[#25]
Quote HistoryQuoted:
We're in the midst of a paradigm change and a financial education is highly recommended and it's not the sh*t taught in universities. Might I suggest you read Nomi Prins' It Takes a Pillage or Karl Denninger's Leverage or Peter Schiff's The Real Crash? I expect to see bail-ins within a year and replacement of 401ks with US Treasuries.
i think you are almost up to a decade of predicting this. ar-jedi |
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Posted: 5/15/2016 11:27:29 PM EDT
[#26]
Looks like I need to speak to my HR person tomorrow
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