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Anybody know anything about stocks....if the stock market goes really down, is it smart for me to buy stock....and what would you recommend me buying?
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Hard to tell what the market will do, but the smart thing in investing right now seems to be to buy a solid company with a good dividend. Investing for big gains can also produce big losses. -
My stocks are all in companies traded on exchanges where prices are in a different currency than dollars, although I am getting concerned about the ones in euros, too, these days.Comment
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There is no pat answer as it depends on what stocks you buy. The general rule is to buy on bad news and sell on good or in other words buy low and sell high. However, most people do just the opposite.
I believe the market will probably take a big drop tomorrow because of the S&P US downgrade and China's reaction.
Before you go out and buy stocks, you have to do your homework by doing a lot of research. There are many factors to consider such a P/E now and going forward, capitlization, sector, etc., etc.
I would be buying stable, well capitalized companies that pay high dividends. Verizon is one of these which is a recommended buy. I own Verizon.JohnComment
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45,000 Verizon workers go on strike - MarketWatchOriginally posted by JWC
I agree with everything you've said...except verizon...things are currently getting tricky with them...i expect a 3-5% drop within the next monthComment
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I don't know much about stock. I just see that there may be an opportunity for me to make money if I buy now and the stock goes up.
Is it even good to buy after a crash in the stock market. Seems like if it crashes, it can only go up.Comment
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Stocks in the right currencies can help you make money, too. The Swiss franc, for example has gained over 30% on the US dollar since November, and even having a pile of them sitting in a safe deposit box is a good investment.
A QE3, which many are predicting, could send the USD into a further tailspin.Comment
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My advice is to learn as much as you can before buying any stocks. If you buy the right stocks, you can make money but you can also lose by making poor choices. In your case, it would probably be better to consider mutual funds but again you have to do your homework. There is a ton of information on the Internet.Originally posted by cyseitzJohnComment
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I am not too worried about the strike nor the near term performance. I am more interested in generating income.Originally posted by Ridewithme38
Actually I am considering selling my Verizon and switching to AT&T. I have made a lot of money on Verizon ( 43% in the last 6 months ) but the forward going numbers favor AT&T. Also AT&T has a higher dividend now because it hasn't gone up as much and it also has a better O-metrix.
Here is a list of good high dividend stocks.
12 High-Dividend, Low-Beta Stocks to Consider During a Down Market - Seeking AlphaJohnComment
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Wait until you see the calm come back to the market. usually it is not good to catch a falling knife.
Usually you can look at the volumn and the up and down range of the market.
You don't have to catch at the lowest point.
Good luck.
Jya-NingJya-NingComment
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I am a trader, not an investor (or as we call it 'buy and hope' owner of stocks). I trade more options that stocks, but I do trade both.
With the market volatility of the past couple weeks, I would not be entering anything unless you have a lot better idea of what you expect and what will happen if it goes against you. What can you afford to risk?DonComment
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My take: there are two ways you can go about this.
You can try to be smart, study the market, understand when good opportunities come up, and take advantage of them.
Or, you can try to be as dumb as possible, and do all those boring things that you often hear about: make regular purchases across a broadly diversified set of investments, with an allocation mix appropriate to your life stage and risk tolerance, preferably into something that is passively managed (i.e. has low costs), with periodic rebalancing.
My take: I don't have time to be as smart as people who do this for a living, or even as a "major hobby". So, I will not beat them, and instead am likely to be badly beaten. So, I try very hard not to ask "is this a good time" questions, and just keep doing what I'm doing.
In short, I am presumably what Don calls a "buy and hope" investor. Could I do better? Probably, if I devoted enough time to it or got a little lucky. But, I don't have enough time, and I don't want to depend on luck.Comment
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Remember this: No matter what the price of a stock, it can always go down another 50% (or 80%, or 90%, or ...).Originally posted by cyseitz
KurtComment
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Don't jump in without doing your homework. Spend lots of time reading books like Jeremy Siegel's, "The Future for Investors," and Lowell Miller's, "The Single Best Investment," and spend time on websites like Investopedia.com.
Good luck!
CarlComment
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One trading week has passed since you asked your question. Since then, there were 4 days of over 400 points of the Dow moving up or down with some days having 600 or 700 point swings.Originally posted by cyseitz View Post
Has this week in the market given you any better feeling if you really want to trade stocks?
If you do want to get into it as a buy and hold person, find good stocks.
If you want to be a little more active and see when to buy or sell, you need to learn to read a chart. Advanced technical chart reading will show you support and resistance points which may help figure out if you want to be in or out.
And of course, you could trade options (which is what I do for about 60-70% of my portfolio). They can be more risky, and they do require more education, but will work better in up, down or sideways markets where stocks really only work in an up market.DonComment
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