OP
OP
Most people wont beat the S&P and that is as safe as it gets. You don't have to know how to do any thing really and you will get a nice return long term.
Stock Investments
- Thread starter Brute 23
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hurleyjd
Well-known member
Mutual Funds are just as volatile as individual stocks why because the Mutual Funds are made up of stock.
Caustic Burno
Well-known member
Not if is a balanced fund.
Most are a blend of stock's, and bonds depending on your risk tolerance.
hurleyjd
Well-known member
Do you have one in mind that has held up in a downturn.
faster horses
Well-known member
Not always. Our daughter was invested in mutual funds. They were sold (not by her) and it cost her a lot of money in income taxes. Someone else manages them, not you.
Mutual funds come with fees that can range from next to nothing in the case of index funds to over 1% or higher for actively managed funds. You're paying someone to lose money for you. Another reason is to get the mix you want. I have 30% of my 401K in the S&P index but that is over-weighted in a few companies like Apple and Microsoft. Another reason is you may have some individual stock you really like but it's not a significant holding for any mutual fund.
simme
Old Dumb Guy
I use the Fidelity Total Market Index Fund FSKAX. It is an index of the total market, so a little more broad than the S&P 500. As of March 31, 2022, 1 year return of 11.67%, 3 year return of 18.12%, 5 year return of 15.32, and 10 year return of 14.21. Life of fund (1997) annual return is 8.74%.
Index funds are as volatile as the index they follow, total market in this case. But not as volatile or risky as individual stocks. Index funds spread the risk out. More risk has possibilities of bigger returns or bigger losses depending on how smart or how lucky you are. Striving for maximizing your return carries the risk to minimize your return. Individual stocks may have a return of over 100% some years, but maybe -80% some years.
Actively managed mutual funds with a high turnover will probably generate a higher tax bill each year. Actively managed means that there is a manager that is buying and selling regularly trying beat the market and other managers in order to increase his reputation and compensation. That means higher fees, more capital gains (or losses) to deal with each year (taxes) and the possibility that the manager may make bad decisions (losses). Index funds are not actively managed, just managed to reflect the index that they represent. Lower fees and less taxes until you sell. That Fidelity total market fund has an expense ratio of 0.015% per year (actively managed funds may be 0.5 to 2% or more). Turnover is 3%. Actively managed funds may be 50% or much higher.
Caustic Burno
Well-known member
This one has performed well for me.
The Income Fund of America - A | American Funds
The Income Fund of America (Class A | Fund 6 | AMECX) seeks to provide current income while secondarily striving for capital growth.
www.capitalgroup.com
bird dog
Well-known member
Another one Hurley is the Schwab Dividend ETF SCHD. It compares a little better than Burnos fund and has cheaper expenses.
hurleyjd
Well-known member
Two reasons we may be living in a time that the market and the economy will not rebound as quick as ever one wants it to. I lived through the high interest created by Volker the interest rate ran up to 18% on the farm note. I will be in better shape as there is no notes to pay off. Property taxes may become a burden though
finance.yahoo.com
finance.yahoo.com
Saudi Arabia warns that the world is running out of energy capacity: 'I have never seen these things'
"The world is running out of energy capacity at all levels," said Saudi Oil Minister Prince Abdulaziz bin Salman.
The stock market is freaking out because of the end of free money. It all has to do with something called ‘the Fed put’
There’s a regime change coming. It likely means the central bank will no longer ride to the rescue of floundering stocks. Investors beware.
Son of Butch
Well-known member
My FREE S&P 500 prediction --- (You get what you pay for)
3838 is key
S&P 500 closed yesterday at 3930 and another 92 pt drop and it will close below 3838
IF it drops below 3838 I predict it will chop lower all summer, with recovery starting after Labor Day around 3333 and chop higher until the end of the year and 2022 will end up as a losing year for the S&P 500 at around 4022
It started the year at 4759 a drop to finish at 4022 = a -15.4% loss for the year
that's my worthless guess.... but remember it's FREE
15.4% loss combined with 7.1% inflation = 22.5% loss of purchasing power in 1 yr
BUT I'm an optimist and don't see the world monetary system collapsing for another 39 years and 11 months... but at some point the house of cards will fall
3838 is key
S&P 500 closed yesterday at 3930 and another 92 pt drop and it will close below 3838
IF it drops below 3838 I predict it will chop lower all summer, with recovery starting after Labor Day around 3333 and chop higher until the end of the year and 2022 will end up as a losing year for the S&P 500 at around 4022
It started the year at 4759 a drop to finish at 4022 = a -15.4% loss for the year
that's my worthless guess.... but remember it's FREE
15.4% loss combined with 7.1% inflation = 22.5% loss of purchasing power in 1 yr
BUT I'm an optimist and don't see the world monetary system collapsing for another 39 years and 11 months... but at some point the house of cards will fall
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Sorry, I haven't been on for a bit, cow stuff.
GS Partners https://gspartners.global/register?sponsor=Bonnie801
Anyway, this is the safest crypto program that I've found. You can join for free, buy g999 and the certificates, but you get 10% off any purchases if you are a member. Membership is $33 a month but you get $37.back in value. The contracts range in price and value, with the lowest being I think $99. all the way up to $500000. Payouts on the contracts start 120days from the day you fill them, and you get paid every 2weeks up to 3 months depending on the contract.
This is a real company, partnered with BDSwiss, one of the largest trading platforms in the world. GS Partners has built their own blockchain, metavirse and they have their own bank. BD Swiss does trillions of trades a day and are now doing it all on this blockchain. They are also listed on the London stock market. This is not a fly by night, here today gone tomorrow scam.
Right now you can still get the g999 for 2 for a penny, but I don't think that will last long.
Anyway, if you want to take a look great, if not, no skin of my backside. It's free to join and look around.
faster horses
Well-known member
I just asked our broker about this. He said he's been buying it for clients for a long time. He has never mentioned it to us, so thank you for your post.This one has performed well for me.
The Income Fund of America - A | American Funds
The Income Fund of America (Class A | Fund 6 | AMECX) seeks to provide current income while secondarily striving for capital growth.
SCHD is a good one. So far so good since 2017. Found that jewel and held it. Seems to be holding up better in this downturn than I thought. Good solid investment if your not looking for flashy.
Also ETFs do better in taxable accounts/environments than Mutual Funds. I don't like year-end surprises, but you should make sure they are really liquid (trade large amount of shares daily) and always set limit orders when purchasing. A sample of good websites for etf learning are etf.com and of course Morningstar.com.
Son of Butch
Well-known member
S&P 500 got hammered today down 165 (over 4%) to close at 3923 but still 85 pts above my key of 3838 as long as it doesn't close below 3838 there is hope it can fight its way back to breakeven this year.
IF it closes below 3838 then all hope is lost and woe is me, mass hysteria, human sacrifice, cats and dogs living together.
IF it closes below 3838 then all hope is lost and woe is me, mass hysteria, human sacrifice, cats and dogs living together.
Son of Butch
Well-known member
S&P 500 record high 4796 Jan 3rd (Super new moon Jan 2)My FREE S&P 500 prediction --- (You get what you pay for)
3838 is key
S&P 500 closed yesterday at 3930 and another 92 pt drop and it will close below 3838
IF it drops below 3838 I predict it will chop lower all summer, with recovery starting after Labor Day around 3333 and chop higher until the end of the year and 2022 will end up as a losing year for the S&P 500 at around 4022
It started the year at 4759 a drop to finish at 4022 = a -15.4% loss for the year
that's my worthless guess.... but remember it's FREE
15.4% loss combined with 7.1% inflation = 22.5% loss of purchasing power in 1 yr
BUT I'm an optimist and don't see the world monetary system collapsing for another 39 years and 11 months... but at some point the house of cards will fall
It closed below 3838 June 13 at 3749 (Super full moon June 14)
dead cat bounce rally to close at 3911 on June 24
July 1 close 3825
The last Super full moon of the year will be July 13
The next Super new moon Dec. 23 2022
p.s.
Historically the stock market's best year occurs in the 1st year of a Presidency and the worst performing quarter of a Presidency is the 3rd quarter of the 2nd year.
July 1 - Sept 30 2022 is the 3rd quarter in year 2 of President Biden.
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Nice insights..enjoyed it.
I did my charting and math few weeks ago.... and found the exact calculations from the DOW peak...36,276 until it's max drop 14,972...will be a 58.73% drop. The method I used was looking at ALL recessions/corrections mapped out to it's "stability point" area (which is similar on all recessions) during the recession before the rise upward to FIND the exact fall point this time today-which was shown to be DOW 14,972 just under 15k, it might drop farther than that (i expect) but it'll quickly stable out at 15k DOW. Now, it's a fact that normal corrections usually fall in the 20 to 35% range....but what everyone fails to see is we're long over due and markets have been synthetically propped up FOR YEARS so this one's going to be a harsh one...like the 1966 to 1981 era...super long duration 2 to 3 years down and then 10 year rise back to Dow 37k...it sucks and hurts a 59% drop in the stock markets...BUT it's NOT going to be as bad as a 80 to 90% correction some financial analysts predict. The good new is... in 16 to 28 months this puppy will bottom and then you'll want to pump-add money in for the next 10 years...as all will be good on the rise up. The smartest move for all millenniums would be to at least pull 50% of their assets to safe preservation funds for the next two years...i think they should do 100%...but even 50% will protect them over these next two years.
Son of Butch
Well-known member
TexasRancher I fear you might be right and hope you're wrong. lol
At the very least, I see the market giving no reason to be in during the next 90 days.
The market bottom is not in yet and when it does turn around there will be plenty of time to slowly buy back in using dollar cost averaging.
At the very least, I see the market giving no reason to be in during the next 90 days.
The market bottom is not in yet and when it does turn around there will be plenty of time to slowly buy back in using dollar cost averaging.
Son of Butch
Well-known member
I was searching to find realistic long term expectations and found 7 index funds all created by Vanguard 22 years ago on November 13 2000 and was surprised to see S&P 500 has not been the best of the group for average return per year.
1. Small Cap Index Fund 8.57% per year
2. Extended Market Mid Cap Index 7.57%
3. Total Stock Market Index 7.2%
4. Large Cap Growth Index 7.09%
5. 500 Index Fund 6.9%
6. Large Cap Value 6.87%
7. Balanced Index* 6.24%
*Balanced Index is a Fund consisting of 60% stocks 40% bonds
The order would be different if used 1 yr, 3 yr, 5 yr or 10 yr return
Total Bond Index Fund 3.42% since inception Nov 12, 2001
1. Small Cap Index Fund 8.57% per year
2. Extended Market Mid Cap Index 7.57%
3. Total Stock Market Index 7.2%
4. Large Cap Growth Index 7.09%
5. 500 Index Fund 6.9%
6. Large Cap Value 6.87%
7. Balanced Index* 6.24%
*Balanced Index is a Fund consisting of 60% stocks 40% bonds
The order would be different if used 1 yr, 3 yr, 5 yr or 10 yr return
Total Bond Index Fund 3.42% since inception Nov 12, 2001
