[ATrain]

Ok, so I'm turning to the board for investing advice. My tax refund (with the $8,000 homebuyer tax credit rebate) is finally looking like its going to leave the IRS offices and hit my bank account soon, and a lot of that I want to invest (lets face it, stocks are down, now's the time to buy). What are your opinions on buying BP stock? I'm tempted to buy it, its down 50% since April, it can pay $20 billion this quarter and still turn a profit (and that was BEFORE suspending dividends). However, with Comrade Barry occupying 1600 Pennsylvania Ave, I'm sort of worried he may try to drive them into bankruptcy, plus there won't be any dividend payments until 2011 at the earliest (dividend rate was $3.36/share annually, or .84 a quarter-no guarantee it'll return to that anytime soon). So, if a bunch of money suddenly landed in your bank account, would you or wouldn't you buy 100 shares of BP?

Other stocks being considered: Dr. Pepper Snapple Group (DPS), AT&T (T), and BB&T (BBT).

I'm not looking to be an active day trader or invest for the short term, most of the stocks I bought last year and I'm going to buy I plan on hanging onto for a while (and this is why dividends play an important role).

[LUminary]

I bet the business block of shows beginning at 10 a.m. on Fox News tomorrow (Bulls and Bears, Cashin' In, etc.) will offer some opinions on BP. It's an interesting question. I'm personally not a major risk taker, and I like those dividends (which BP isn't paying now). I do have some T. Nice dividend, and most analyst rankings I've seen say buy, but the price sure hasn't gone anywhere in a long while. Enjoy your refund!

[Hold My Own]

Mutual's with a good 10 yr avg

[flamesbball84]

index fund

[Sly Fox]

I couldn't touch the original topic with a 10-foot pole. But let the record show BP is not a client right now or at any period of this crisis.

[PAmedic]

Mutual's with a good 10 yr avg

^^^ this

...OR...

you're young and can handle risk. Find an agressive growth fund and put a good amount in it.

I'd recommend a professional tho- we're really just a bunch of idiots.

[Hold My Own]

My business partner got tired of losing tons of money with his "Financial expert" and pulled out all of his investments to do on his own. He simply studied the Mutuals found 5 or 6 in different sectors with a good 10 yr avg and has made more money in a few months then he did when the market was good years ago (let alone NOT losing like he was).

[ATrain]

My business partner got tired of losing tons of money with his "Financial expert" and pulled out all of his investments to do on his own. He simply studied the Mutuals found 5 or 6 in different sectors with a good 10 yr avg and has made more money in a few months then he did when the market was good years ago (let alone NOT losing like he was).

Believe it or not, I do better when I'm left on my own and have very little idea as to what I'm doing which is why I don't seek professional advice very often. I have bought into some low initial investment mutual funds, plus already hold General Electric (GE) and Pepsi (PEP). Bought those last May and even with the downturn this year am still up over 25% (was 40%, should've sold but I was thinking things were just going to keep getting higher. Pepsi did increase their dividend though).

I will take a closer look at mutual funds though. Already I'm participating in the state's optional retirement cash match program and that money is being invested more in mutual funds than anything else.

May also get involved in some short term bonds with any leftover money I have that I can't really do anything with (other than spend it, which would be counterproductive).

[olldflame]

I know a promising IT startup that is looking for partners with only a $25 buy-in.

[tmilgp]

Hey, I just have a humble suggestion to add for someone seeking a diversified basket right now. I'm going to be a senior at LU this Fall (Finance major). I have some shares of an ETF (Exchange Traded Fund [like a mutual fund that can be bought/sold instantly]) that is made up of stable Chinese companies. There are a few like it, the one I have has the ticker symbol GXC. China just un-pegged their currency from the US dollar, and is expected to appreciate within the next few years, meaning that any return on Chinese stock will be multiplied by the Chinese currency's appreciation. Oh, and it pays a dividend as well.

[matshark]

anything in a BRIC fund (Brazil, Russia, India, China) and you cant go wrong with precious metals... (silver, gold and lead) honestly, id stay away from the dollar if at all possible, esp with this moron in the WH who's killing our currency (accidentally or otherwise)

[4everfsu]

If I was ever going to invest in stocks, two would be IBM and Coke Cola, those would be my long term stocks.

[ATrain]

If I was ever going to invest in stocks, two would be IBM and Coke Cola, those would be my long term stocks.

I considered Coke, but Pepsi had a larger dividend and has done better price wise.
IBM was just too expensive at the time.

[4everfsu]

I think Coke would have a better name world wide then Pepsi

[From the class of 09]

My business partner got tired of losing tons of money with his "Financial expert" and pulled out all of his investments to do on his own. He simply studied the Mutuals found 5 or 6 in different sectors with a good 10 yr avg and has made more money in a few months then he did when the market was good years ago (let alone NOT losing like he was).

I just want you to realize that this statement is very misleading. As I’m sure you’re well aware the stock market returns vary in any given time period so to just compare return numbers in two different periods of time is a very poor comparison. Also you most likely don’t know what your friend was investing in with his financial expert or when he was on his own. There are many markets out there you talk about total returns which are fine but if you friend told his expert he couldn’t invest in emerging markets or that he could only but half the money in equity funds, this would limit his total return potential. Also it’s important to know what you’re buying in mutual funds. If all you’re looking at is total return; are the funds buying alternative investments, are they hedging there riskier positions, do they utilize leverage to optimize there returns? All things you at least want to be aware of.

I’m not trying to defend whoever this expert was (we all know there are plenty of “experts” in every field who are glamorized crooks). But there are legitimate reasons to have a qualified professional handle your investments. As a starting point I would ask, what is your goal? This is an import questions not just for this 8k but in general. If this money is just to have fun with that’s fine (realize your saying that if you loose it all you would be ok) but just make sure you’re not doing the same thing with your retirement, emergency fund, and kid’s college accounts.

To answer the boards original question, as I referred to earlier… if you are just trying to have fun with this money that’s great go after some riskier positions, just be aware of how this fits into your life long financial goals.

[olldflame]

My business partner got tired of losing tons of money with his "Financial expert" and pulled out all of his investments to do on his own. He simply studied the Mutuals found 5 or 6 in different sectors with a good 10 yr avg and has made more money in a few months then he did when the market was good years ago (let alone NOT losing like he was).

I just want you to realize that this statement is very misleading. As I’m sure you’re well aware the stock market returns vary in any given time period so to just compare return numbers in two different periods of time is a very poor comparison. Also you most likely don’t know what your friend was investing in with his financial expert or when he was on his own. There are many markets out there you talk about total returns which are fine but if you friend told his expert he couldn’t invest in emerging markets or that he could only but half the money in equity funds, this would limit his total return potential. Also it’s important to know what you’re buying in mutual funds. If all you’re looking at is total return; are the funds buying alternative investments, are they hedging there riskier positions, do they utilize leverage to optimize there returns? All things you at least want to be aware of.

I’m not trying to defend whoever this expert was (we all know there are plenty of “experts” in every field who are glamorized crooks). But there are legitimate reasons to have a qualified professional handle your investments. As a starting point I would ask, what is your goal? This is an import questions not just for this 8k but in general. If this money is just to have fun with that’s fine (realize your saying that if you loose it all you would be ok) but just make sure you’re not doing the same thing with your retirement, emergency fund, and kid’s college accounts.

To answer the boards original question, as I referred to earlier… if you are just trying to have fun with this money that’s great go after some riskier positions, just be aware of how this fits into your life long financial goals.

Somehow, I doubt that will be a factor.

[ATrain]

My business partner got tired of losing tons of money with his "Financial expert" and pulled out all of his investments to do on his own. He simply studied the Mutuals found 5 or 6 in different sectors with a good 10 yr avg and has made more money in a few months then he did when the market was good years ago (let alone NOT losing like he was).

I just want you to realize that this statement is very misleading. As I’m sure you’re well aware the stock market returns vary in any given time period so to just compare return numbers in two different periods of time is a very poor comparison. Also you most likely don’t know what your friend was investing in with his financial expert or when he was on his own. There are many markets out there you talk about total returns which are fine but if you friend told his expert he couldn’t invest in emerging markets or that he could only but half the money in equity funds, this would limit his total return potential. Also it’s important to know what you’re buying in mutual funds. If all you’re looking at is total return; are the funds buying alternative investments, are they hedging there riskier positions, do they utilize leverage to optimize there returns? All things you at least want to be aware of.

I’m not trying to defend whoever this expert was (we all know there are plenty of “experts” in every field who are glamorized crooks). But there are legitimate reasons to have a qualified professional handle your investments. As a starting point I would ask, what is your goal? This is an import questions not just for this 8k but in general. If this money is just to have fun with that’s fine (realize your saying that if you loose it all you would be ok) but just make sure you’re not doing the same thing with your retirement, emergency fund, and kid’s college accounts.

To answer the boards original question, as I referred to earlier… if you are just trying to have fun with this money that’s great go after some riskier positions, just be aware of how this fits into your life long financial goals.

Somehow, I doubt that will be a factor.

Guy I'm seeing now wants to adopt, and I'm cool with that, so it could fit in very easily.

[olldflame]

How predictable.

[ATrain]

How predictable.

You're the one that brought it up, not me.

[NotAJerry]

Couldn't find a more current thread for investing/stocks, so I'm bumping this one. If a mod knows of one more recent/appropriate, feel free to move this.

Robert Wiedemer, who nailed the housing bubble and following recession, is now predicting a potential 90% market correction once the recently printed money finally gets through the Federal Reserve and into the economy. Billionaires like Warren Buffett, John Paulson, and George Soros are selling off their American based stocks at a rapid pace.

Here's a link to the article: http://www.moneynews.com/MKTNews/billio ... ce=taboola

Here's a link to the interview referenced in the article: http://w3.newsmax.com/a/aftershockb/video47.cfm

[jbock13]

I think the question right now lies with when the fed will, if ever, recognize the failure of their policies. Knowing their ideology, i assume it will not be any time soon.

With the market around 15,000, I've pulled back my investments because I believe a contraction is likely. I don't think it will be severe because we are delaying the inevitable collapse that will occur years down the road.

[Yacht Rock]

You know, I don't know much about stocks...but I do know it's always a good idea to bet on black.

[youtube]

[/youtube]

[From the class of 09]

Whenever the market (DJ S&P) are at an all time highs it's normal to start to be a little nervous. A correction (10% bear) wouldn't be a surprise to anyone. That said a 90% bear market is laughable, you would have to discount stocks back to the early 1980's to find prices at that level.

There are lots of smart people in the investment world however no one gets it right everytime. Even Bill Gross (probably the best fixed income manager ever) was famously wrong in 2011 when he sold his entire US Treasury position. Also, when looking at all of Buffett's current holdings as a whole he may even be a little overexposed to the US economy http://www.cnbc.com/id/22130601/Berkshi ... io_Tracker

That said if we don't go bear in the 2nd quarter I think we'll finish the year up from where we currently are, but again that's just my opinion.

[AZjonz]

A confirmed Hindenburg Omen sighting in the markets today. The last time this happened with all-time highs was 2007. The difference this time, and it is a BIG difference, is this market has Benny and the Inkjets running QE by the month. Should be interesting to see if a monster sell-off comes in the next 40 days. I'm looking for a correction.

From Investopedia:

The Hindenburg omen was developed to predict the potential for a financial market crash. It is created by monitoring the number of securities that form new 52-week highs relative to the number of securities that form new 52-week lows - the number of securities must be abnormally large. This criteria is deemed to be met when both numbers are greater than 2.2% of the total number of issues that trade on the NYSE (for that specific day).

Traders use an abnormally high number of 52-week highs/lows because it suggests that market participants are starting to become unsure of the market's future direction and therefore could be due for a major correction. Proponents of this indicator argue that it has been very accurate in predicting sharp sell-offs in the past and that there are few indicators that can predict a market crash as accurately.
http://www.investopedia.com/terms/h/hindenburgomen.asp

[jbock13]

I've cut the money I'm putting in simply because the level it's at right now is unsustainable. I'm still putting a little bit in, but fortunately I'm young so if I guess wrong either way I'll still alright.