[2020] A little stock market sense

[Ironwood]

There is little meaningful technical support until 20,000. Peter Schiff says 'from a combined market cap of $3 trillion, cryptos are down to $1 trillion, and the loss of that last trillion will be the most painful'!

 

[pedro47]

These Are The Top 8 Stocks To Own In A Bear
Market

These Are The Top 8 Stocks To Own In A Bear Market

The dreaded S&P 500 bear is nearly here. But don't think you need to hibernate.

www.investors.com

Richard

very interesting list of stocks to own

 

[pedro47]

Should have bought energy stocks


WSJ
5/20/2022

"energy stocks like Exxon Mobil Corp., Chevron Corp. and ConocoPhillips have climbed more than 40% this year"



View attachment 55490

Dominion Resources have never loss one penney in a recission.

 

[Superchief]

Since our members of congress are allowed to use their insider information to buy/sell stock, I wish there was a way for us to track their trading activity. A lot of them have gotten rich that way over the years. I find it maddening that I can't buy or sell stock if I know my company is getting to launch a new product, but they can do it when they know a bill will be passed that will benefit/hurt a company or industry.

This bear market will be challenging because so many industries that typically do well are being impacted by supply and transportation issues, as well as an uncertain regulatory environment. I thought railroads would benefit, but they are also suffering from employee shortages and bad management decisions by recent management changes.

 

[easyrider]

Cryptos getting hammered again.

Bitcoin below 24K.

I read crypto trading was halted today at Binance for three hours. I wonder where they end up by Friday.

Bill

 

[Brett]

Since our members of congress are allowed to use their insider information to buy/sell stock, I wish there was a way for us to track their trading activity. A lot of them have gotten rich that way over the years. I find it maddening that I can't buy or sell stock if I know my company is getting to launch a new product, but they can do it when they know a bill will be passed that will benefit/hurt a company or industry.

This bear market will be challenging because so many industries that typically do well are being impacted by supply and transportation issues, as well as an uncertain regulatory environment. I thought railroads would benefit, but they are also suffering from employee shortages and bad management decisions by recent management changes.

actually congress, senators and government employees are prohibited to trade on inside information - but some have advantages

https://www.congressionalinstitute.org/2018/08/16/can-members-of-congress-engage-in-insider-trading/

 

[Brett]

bears running down the "street"

 

[Superchief]

actually congress, senators and government employees are prohibited to trade on inside information - but some have advantages

https://www.congressionalinstitute.org/2018/08/16/can-members-of-congress-engage-in-insider-trading/

Evidently, they are able to work around these restrictions. Politicians' families from both parties have greatly benefited from having access to information not available to the general public. They not only can learn about upcoming legislation, but they can influence it. Evidently the previous legislation left some loopholes and a more strict bill is currently in the House waiting for approval. Many in congress get very wealthy from their investments while in office. This example is regarding Nancy Pelosi's husband, but there are also several Republicans who have done similar things. As long as they are still able to invest large sums in the market, monitoring their activity should help us make better informed investments.

Nancy Pelosi’s husband, Paul, buys Tesla stock worth $2.2M

On March 17, Paul Pelosi, a venture capitalist, purchased 2,500 shares of Tesla stock by exercising 25 call options at a $500 strike price

nypost.com

Fact check: Nancy Pelosi's husband's investments unrelated to Joe Biden's executive order

The claim that Nancy Pelosi invested $1 million in Tesla based on insider information is unsupported.

www.usatoday.com

 

[Brett]

Evidently, they are able to work around these restrictions. Politicians' families from both parties have greatly benefited from having access to information not available to the general public. They not only can learn about upcoming legislation, but they can influence it. Evidently the previous legislation left some loopholes and a more strict bill is currently in the House waiting for approval. Many in congress get very wealthy from their investments while in office. This example is regarding Nancy Pelosi's husband, but there are also several Republicans who have done similar things. As long as they are still able to invest large sums in the market, monitoring their activity should help us make better informed investments.

Nancy Pelosi’s husband, Paul, buys Tesla stock worth $2.2M

On March 17, Paul Pelosi, a venture capitalist, purchased 2,500 shares of Tesla stock by exercising 25 call options at a $500 strike price

nypost.com

Fact check: Nancy Pelosi's husband's investments unrelated to Joe Biden's executive order

The claim that Nancy Pelosi invested $1 million in Tesla based on insider information is unsupported.

www.usatoday.com

Elon Musk didn't give Nancy Pelosi secret company inside information! And that Tesla stock bought in March, 2022 is now worth $ ______

Congress, senators, presidents, you, me, and Martha Stewart are all subject to same insider trading laws. The difference is members of congress, senators, etc. have to report all their stock purchases and sales. and their spouse's stock purchases and sales. it's "monitoring". You and I only report stock sales to the IRS once a year.
Of course, many people think congress and senators and presidents and supreme court justices (and their relatives) shouldn't own any stocks.


https://www.congressionalinstitute.org/2018/08/16/can-members-of-congress-engage-in-insider-trading/

 

[Rolltydr]

Elon Musk didn't give Nancy Pelosi secret company inside information! And that Tesla stock bought in March, 2022 is now worth $ ______

Congress, senators, presidents, you, me, and Martha Stewart are all subject to same insider trading laws. The difference is members of congress, senators, etc. have to report all their stock purchases and sales. and their spouse's stock purchases and sales. it's "monitoring". You and I only report stock sales to the IRS once a year.
Of course, many people think congress and senators and presidents and supreme court justices (and their relatives) shouldn't own any stocks.


https://www.congressionalinstitute.org/2018/08/16/can-members-of-congress-engage-in-insider-trading/

Again, I love facts! Thank you, Brett.

 

[PigsDad]

This is one of my favorite ongoing threads here on TUG, so a respectful request: let's try to keep any hint of politics out of the discussions, so this thread does not get locked. Some of the last few posts are borderline.

Kurt

 

[Superchief]

The difference is members of congress, senators, etc. have to report all their stock purchases and sales. and their spouse's stock purchases and sales. it's "monitoring". You and I only report stock sales to the IRS once a year.



https://www.congressionalinstitute.org/2018/08/16/can-members-of-congress-engage-in-insider-trading/

Is this information available to the public similar to insider trading? It could be helpful when making investment decisions. If you can't beat them, join them.

 

[MULTIZ321]

Got an IRA? Here's How to Use the Bear Market to Your Advantage

Got an IRA? Here's How to Use the Bear Market to Your Advantage

You're effectively slashing your tax obligation.

money.com

Richard

 

[CalGalTraveler]

Anyone dollar cost averaging into the market on this dip? I just picked up some solid performers. Small amount so low risk. Will continue to dollar cost average if dips lower.

Also any ideas where to invest excess cash especially in brokerage IRAs? I am not seeing savings rates increase significantly with inflation yet.

 

[PigsDad]

Anyone dollar cost averaging into the market on this dip?

Yep, I just did some additional purchases yesterday.

Kurt

 

[PigsDad]

I found this interview with Bill Gates interesting. He is not a fan of crypto or NFTs. I tend to agree with his comments here:

https://www.cnbc.com/2022/06/15/bill-gates-says-crypto-and-nfts-are-based-on-greater-fool-theory.html

Kurt

 

[CalGalTraveler]

I completely missed the crypto and NFT craze and never put any money there. In hindsight that's a good thing.

Still holding investments in Internet and Tech. Those will come back.

 

[DrQ]

Yep, I just did some additional purchases yesterday.

Kurt

I think that's called, "Trying to catch a falling knife"

I'm going to wait until the market bottoms out.

 

[bluehende]

Anyone dollar cost averaging into the market on this dip? I just picked up some solid performers. Small amount so low risk. Will continue to dollar cost average if dips lower.

Also any ideas where to invest excess cash especially in brokerage IRAs? I am not seeing savings rates increase significantly with inflation yet.

Yes.

I bought a little qqq when they were down 10%. I doubled the buy at 20% down. I doubled again around the last bottom. My goal is to become overinvested again if it is down 50%. I will start buying a little of the russell 2k etf the next time I buy also. I am a little underinvested right now. In my 401k I have done the same thing with their mutual funds being a little more conservative.

 

[CalGalTraveler]

Problem is that you never know when it is at the bottom until it is too late - and then it is like chasing a runaway train! I still work so don't have time to track the market all the time. I like @bluehende approach. Good hedge.

 

[Ralph Sir Edward]

I think that's called, "Trying to catch a falling knife"

I'm going to wait until the market bottoms out.

Under the W. . .

 

[PigsDad]

I think that's called, "Trying to catch a falling knife"

I'm going to wait until the market bottoms out.

And how do you know when the bottom is?

Kurt

 

[bluehende]

Problem is that you never know when it is at the bottom until it is too late - and then it is like chasing a runaway train! I still work so don't have time to track the market all the time. I like @bluehende approach. Good hedge.

Like any system it has it's drawbacks. When markets are hitting lows you look like a genius, when they are hitting highs you look foolish. I thought I was a genius until I started feathering out in DEC 2016. That money being out of the market cost me about 20% at the highs with a blended rate. Now it looks smart again. I also do not get completely out or as of 2016 completely in. Rule of thumb for me is about 50% in stocks. I actually believe 60%. I never go below that although with the decline in value I am now close to that even with considerable buying. I am still rooting for more losses so I can get more in. I will put pretty big buys in at 35% down and 40% down. In my mind there is no way that we not hit new highs sometime in the next decade(normal is 3 to 5 yrs) which gives a good return. If you are young I would ignore any fluctuation and ride it. Even this painful one. Take it from someone who was in a big hole during 2009 2008 bear market while fully invested.

 

[DrQ]

And how do you know when the bottom is?

Kurt

With inflation predicted to be with us into 2023 and with possible stagflation, I see the waters as pretty choppy still. The market is expecting a 75 basis point increase and will probably rally on that news, but I don't really see anything encouraging.

My FA is looking for bargains in certain sectors, but for the most part, we're standing pat.

I'm still maxing out my 401k deductions just because I can't adjust those quickly. If I could, I would have suspended them and back loaded them when the market was low, but it takes 2-4 weeks to make adjustments, so I will just have to settle for $ cost averaging into conservative choices and then rebalance later.

 

[ScoopKona]

And how do you know when the bottom is?

Simple. See what the average American is doing. And do the opposite.

Are they buying stock? Buying houses using interest-only, stated-income loans? Sell.

Are they running from the markets? Buy.

Are they dropping off their record collection at Goodwill because "records are worthless?" Buy.

Are they buying every scrap of vinyl available because "records are hot again?" Sell their old records back to them.

Are they snapping up crypto and gold? Stay away.

Are they dumping crypto and gold? Stay far away.

Are they buying fake art? Buy real art.

Buying up comic books, basketball shoes and sports memorabilia as investment vehicles? Breathe a sigh of relief and rid yourself of that non-performing, easily-ruined crap.



Most investment is driven by FOMO. By the time FOMO affects the average investor, the market has already adjusted past them. Any time I see any FOMO going on, I do the opposite of what they're doing. It's worked out fairly well for me.