Stock Market

[Jogeephus]

I sold some today because I needed a little extra cash to pay the college tuition for two of my children. I hated to see the money go but I think where it went is a far better investment than where it was.

 

[HDRider]

:lol2: 'the pros' are the ones who will be buying up all those stocks for pennies on the dollar while 'everyone' else is selling. The stock market is nothing more than reactions to information..often times overreaction to misinformation or speculation. Takes nerve to hang in; again, just like cattle. Money will be made, just like in '08. Some folks will see the opportunities, and some folks will be running scared.

I think you're seeing some serious corrections being made as all that gov't money that has been propping it up the last years is being pulled out. It may go back up some but it hasn't hit bottom yet.

I have a question.

I have heard what you are saying, many times. Don't argue the gov has "printed" a lot of money via their multiple QEs.

Where does the money go when that money leaves the stock market?

I know the obvious answers, like to bonds, to buy a car, or in the bank, or under the mattress or to pay tuition. All those things would stimulate the economy, right? Why aren't we see said stimulus?

People are not raking these less valuable dollars in a pile in their yards to burn like leaves. Where does it go?

 

[True Grit Farms]

The dollars might of never been there in the first place?

 

[1982vett]

I sold some today because I needed a little extra cash to pay the college tuition for two of my children. I hated to see the money go but I think where it went is a far better investment than where it was.

I made a sideways move today. Sold in a taxable account to fund my IRA. Hopefully we will get a nice oversold bounce soon to have an opportunity to fund living expenses. My cash flow isn't like it was a few years ago. After saving for years and years, breaking in to those savings is something I am not liking at all.

 

[Caustic Burno]

I sold some today because I needed a little extra cash to pay the college tuition for two of my children. I hated to see the money go but I think where it went is a far better investment than where it was.

I made a sideways move today. Sold in a taxable account to fund my IRA. Hopefully we will get a nice oversold bounce soon to have an opportunity to fund living expenses. My cash flow isn't like it was a few years ago. After saving for years and years, breaking in to those savings is something I am not liking at all.

Best move I made several years ago was locking in some bonds at 6.25%.
They can call them next year and I am looking for that to happen.

 

[John SD]

I sold some today because I needed a little extra cash to pay the college tuition for two of my children. I hated to see the money go but I think where it went is a far better investment than where it was.

Sometimes a guys gotta what he has to. A few years back I came up short paying my health insurance which was on an annual basis at the time. I sold some shares of a mutual fund. Just about got it back to where it was now.

 

[greybeard]

I've read that if you own anything now is the time to sell before the bottom really drops out.

Seems to me, that this would be a decent time to buy, while prices have dropped.

Falling knife syndrome--ever tried to catch one?
You buy at bottom, or right after it starts back up but not while it's dropping.
Bottom IMO, is not in yet.

 

[Ryder]

Greybeard has made a very sensible post.
Novices would be well advised to take heed.
Nobody knows how far down is, or far how long. To think it will always be like last time falls into the category of "normalcy bias".
Remember 1929. It did come back but how many years did it take? How many people suffered financial ruin?

 

[Caustic Burno]

Greybeard has made a very sensible post.
Novices would be well advised to take heed.
Nobody knows how far down is, or far how long. To think it will always be like last time falls into the category of "normalcy bias".
Remember 1929. It did come back but how many years did it take? How many people suffered financial ruin?

This gets back to never invest more than your willing to loose in the stock market.

I posted earlier about the call date on some bonds that is this year I keep forgetting this is 2016.

 

[TexasBred]

I have heard what you are saying, many times. Don't argue the gov has "printed" a lot of money via their multiple QEs.

Where does the money go when that money leaves the stock market?

I know the obvious answers, like to bonds, to buy a car, or in the bank, or under the mattress or to pay tuition. All those things would stimulate the economy, right? Why aren't we see said stimulus?

People are not raking these less valuable dollars in a pile in their yards to burn like leaves. Where does it go?

Just back into "cash" like an individual would handle it. They've made money.

For every person that thinks it's time to buy a thousand shares of some stock there has to be another that thinks it's time to sell that same amount. Just like corn, cows or anything else. Probably had some short selling going on too. So many of these transactions happen so quickly that many only hold their position a matter of a few minutes. At the end of hte day they may have made a huge amount of money and never had to fund one penny of it. Just sold their position, took the profit and went home to bed to do it again the next trading day. Same with treasuries, bonds etc. Huge amount of simple binding paper transactions.

 

[bball]

Greybeard has made a very sensible post.
Novices would be well advised to take heed.
Nobody knows how far down is, or far how long. To think it will always be like last time falls into the category of "normalcy bias".
Remember 1929. It did come back but how many years did it take? How many people suffered financial ruin?

This gets back to never invest more than your willing to loose in the stock market.

I posted earlier about the call date on some bonds that is this year I keep forgetting this is 2016.

And there you have it! Or any other potential investment opportunity for that matter. The key is diversity, flexibility, and balance. Great point CB, seems like overstating the obvious, but clearly, it needed to be said.
Greybeard touches on another great point that many folks may have experienced in the cattle world this past year. It's all a finely balanced juggling act.

 

[Askme42]

Well, thanks to OPEC :clap: , it's taken a big, HUGE, dump this week. I'm trying to plan ahead and save for my son's college fund, and it looks like he'll be able to afford to go to free Preschool now :dunce: . I've read that if you own anything now is the time to sell before the bottom really drops out. I hope we have an economy left after this because from everything I've read it's going to be pretty severe.

This is the mentality that keeps everything on the downslide. While 'the masses' pull out, those in it for the long haul will make money.....eventually. Like most things, have to ride out the good times and bad. It is nerve-wracking to pull up your investments and see losses, but no different then cattle really. It all moves around.

This is when I prefer to buy.


Oil is a pretty good buy right now and if it continues to slide I'll continue to buy the Exxon BP and kinder Morgan's of the world.

 

[Askme42]

I've read that if you own anything now is the time to sell before the bottom really drops out.

Seems to me, that this would be a decent time to buy, while prices have dropped.

Falling knife syndrome--ever tried to catch one?
You buy at bottom, or right after it starts back up but not while it's dropping.
Bottom IMO, is not in yet.

But you can never time the bottom. Most wait way too long after it starts back up before they buy in.


The way I prefer to do it is buy all the way down. It's much easier than trying to time the bottom.

 

[Caustic Burno]

Well, thanks to OPEC :clap: , it's taken a big, HUGE, dump this week. I'm trying to plan ahead and save for my son's college fund, and it looks like he'll be able to afford to go to free Preschool now :dunce: . I've read that if you own anything now is the time to sell before the bottom really drops out. I hope we have an economy left after this because from everything I've read it's going to be pretty severe.

This is the mentality that keeps everything on the downslide. While 'the masses' pull out, those in it for the long haul will make money.....eventually. Like most things, have to ride out the good times and bad. It is nerve-wracking to pull up your investments and see losses, but no different then cattle really. It all moves around.

This is when I prefer to buy.


Oil is a pretty good buy right now and if it continues to slide I'll continue to buy the Exxon BP and kinder Morgan's of the world.

I agree with Exxon and Marathon .

 

[John SD]

I'm using quite a bit of diesel lately moving snow. The fuel I'm using now is a couple years old. If my bulk tank goes empty, I might get it filled with #1 red fuel, and give it a good dose of Power Service Diesel Kleen treatment for a fuel stabilizer :idea:

I've also been buying Exxon/Mobil and Conoco/Phillips. Also my "local" electric and nat gas utilities Black Hills Corp and MDU.

 

[Askme42]

I'm using quite a bit of diesel lately moving snow. The fuel I'm using now is a couple years old. If my bulk tank goes empty, I might get it filled with #1 red fuel, and give it a good dose of Power Service Diesel Kleen treatment for a fuel stabilizer :idea:

I've also been buying Exxon/Mobil and Conoco/Phillips. Also my "local" electric and nat gas utilities Black Hills Corp and MDU.

Would love to have a large tank to stockpile fuel right now.

 

[John SD]

I'm using quite a bit of diesel lately moving snow. The fuel I'm using now is a couple years old. If my bulk tank goes empty, I might get it filled with #1 red fuel, and give it a good dose of Power Service Diesel Kleen treatment for a fuel stabilizer :idea:

I've also been buying Exxon/Mobil and Conoco/Phillips. Also my "local" electric and nat gas utilities Black Hills Corp and MDU.

Would love to have a large tank to stockpile fuel right now.

My tank is not large. Only 300 gallons but it takes me a long time to use it because with no livestock to feed I only move snow with it anymore. My gasoline tank is 350 gallons. I got it filled a year ago, and still has some in it. Although I treated the gas with a gallon of Sea Foam per 100 gallons gas, it still smells stale :yuck:

I do think diesel keeps better, but not like it used to when the sulphur worked to keep the algae out. Never have had an algae problem, but i certainly don't want one either :???:

Local co-op manager on radio this morning with his regular sales pitch for something they sell. Today he talked about how fuel prices are low right now, and they are offering new 500 and 1000 gallon tanks/pumps for those producers wanting to add fuel storage capacity. One of the perks is you can pay for it over 3 years with no interest.

 

[Son of Butch]

I have a question.
I have heard what you are saying, many times. Don't argue the gov has "printed" a lot of money via their multiple QEs.
Why aren't we see said stimulus?
People are not raking these less valuable dollars in a pile in their yards to burn like leaves. Where does it go?

1. Government doesn't print money. In 1913 Woodrow Wilson signed treasury printing duties over to The Federal Reserve.
It's Not Federal and there is No Reserve. (It is privately owned by a group of world banks)

2. We have seen a stimulus in that it kicked the can down the road while increasing government debt to over 16 trillion.
I don't know that I will live to see it...but one day the house of cards has to tumble and it will be a crash like no other.

3. I can't give a % because I have not researched it, but a huge chunk of dollars have been exported to China's economy
due to their government policy of financially enslaving their own people/work force and creating import export trade
imbalances by devaluing their currency. which perhaps is the most effective embargo by not allowing their citizens
to afford western goods, only to produce them but can't afford to buy them.

US stock market is down 8.47% year to date. Deutsche Bank analyst says stock market over reaction and predicts next
market move will be up 5% which would mean it will be more of a choppy ride down rather than straight descent.
Market would need to move up 9.25% just to bring us back to even for the year.

Only chance stock market has for finishing up for the year is for Arizona Cardinals to win the Super Bowl.
Stock market has always posted a gain in the year an old NFL team (NFL team prior to AFL/NFL merger) wins the Super Bowl.
Pittsburgh Steelers were an old NFL team, but Manning screwed the market's chances by beating them this weekend. :nod:

 

[D2Cat]

Well, if "Manning screwed the market's chances" I'm going to quit eating Papa John's pizza!! Will that help?

 

[TexasBred]

But you can never time the bottom. Most wait way too long after it starts back up before they buy in.


The way I prefer to do it is buy all the way down. It's much easier than trying to time the bottom.

Never wait for it to hit rock bottom. Just find a point you can live with and buy in. As for staying in and eventually getting your money back that is usually true as well with the key word being "eventually". Compare that to getting out, investing in something less volatile with a lower return. You'll still be making money instead of losing and probably end up with more than they guy that stayed in much longer than he should.

CB how much of a premium did you have to pay for that bond to get that 9% return in a 1% bond market??