Stocks - The Best Buys 2

[Cecil Terwilliger]

It’ll be fine. Even if you retire tomorrow, you’re still gonna live another 20 years or so. The market will be back before your first CPP check arrives.

[afc wimbledon]

Originally Posted by Calgary14

In 2008 the dow jones industrial average dropped 50% from 14K to 7K. This market correction we are down from 28K to 21K, or 25% (so far). This one seems much more dramatic and fast, and probably is, but overall in the long term it will smooth out

The major difference I suspect will be the time it takes to 'fix', in 2008 it was a measurable relatively easy problem, shovel a ton of money at it and problem solved, markets rebound and all the underlying debt problems that are kicking us, once again, in the nads go away until now.

I suspect this will not work for this just due to the impossibility of knowing what the economic effect of the virus is going to be, my guess is this bottoms out and stays flat until the virus is no longer a factor in the economy, whether it then rebounds or we crawl along slowly is any ones guess.

[bluejays]

Originally Posted by afc wimbledon

The major difference I suspect will be the time it takes to 'fix', in 2008 it was a measurable relatively easy problem, shovel a ton of money at it and problem solved, markets rebound and all the underlying debt problems that are kicking us, once again, in the nads go away until now.

I suspect this will not work for this just due to the impossibility of knowing what the economic effect of the virus is going to be, my guess is this bottoms out and stays flat until the virus is no longer a factor in the economy, whether it then rebounds or we crawl along slowly is any ones guess.

Exactly. Employers are going to feel the pinch very quickly. So either the employer fits the bill if they can, or the government will have to support people. It's a pretty wild situation to be in. I suspect the market tomorrow will be terrible as nobody wants to hold stocks over the weekend not knowing what else will be announced. Tough situation for everyone.

[DoubleK]

Originally Posted by Slava

Futures can be volatile and the pyjama traders get a lot wrong. That's not to say it won't happen tomorrow, but we'll see. Sometimes there are significant differences by the time the market opens in the morning.

Totally agree on the volatility, yesterday being a prime example. Was showing down by about 4% when I went to bed and we all know what happened.

Directionally though, futures have been pretty accurate the past couple weeks.

[afc wimbledon]

asia looking bad again

[DoubleK]

US futures look positive.

[wwkayaker]

Trump is going to hold a news conference this afternoon so watch out below.

[manwiches]

Got in on a bit of Disney and Boeing. Will buy over the next couple weeks to average the costs in, but I think both will be a good investment now. Disney will always have that allure and is too diverse. I figure Boeing will bounce back eventually, as everybody needs planes, and this is a quite the dip.

Also took advantage of the low XSP price too, and will continue to buy to average it out.

Of course, I'm all in for the long haul, so I'm not too concerned over the daily or even weekly highs and lows.

[monkey brewery]

In early 2016 I bought *a ton* of WMT in my RSP and have just sat on it since. As they say: even a blind chicken gets a piece of corn once in a while.

If I had any mental fortitude at all I'd sell it and load up on some of these juicy energy company deals, DCA some others.

No idea what to think about Inter Pipeline, so I just try not to think about that one lol.

[IliketoPuck]

Originally Posted by MoneyGuy

I’m considering DCA’g into the market with cash I’m sitting on.

XOM. 8% yield.

[Muta]

Just a quick question for this knowledgeable group - are there any good books / resources that I can read to start getting into the world of stocks and trading? I'd like start doing this on my own and would really like to become well-versed in this stuff.

[manwiches]

Any suggestions on Pharma companies to look at, with the vaccine being developed now? Or too soon to predict? I reupped on PFE as they're a bit low now, but not sure where else to diversify that section of my portfolio to.

@Muta - I literally just went to the library and got a bunch of books recommended as a starter guide. This is what I read
- The Intelligent Investor
- How to Make Money in Stocks
- A beginners Guide to the Stock Market
- Stock Investing for Dummies.

After reading through those, I just read lots of google articles and reads. Some good, some bad. Read lots of investing forums, to get a pulse on things too. All in that time, I also downloaded a virtual trader (Forgot the name), and invested my fake money in stocks i thought would do well based on my research. I learned a lot from that.

In all honesty, I did the reading/research and virtual trading for almost a year and a half before I become comfortable enough to wade into the real world on my own. I buy stocks based on long term value, and don't prospect. I hit some really big ones prospecting, but also lost almost as much prospecting too.

I'm also not the most verse or knowledgeable on the subject, so I will defer to others for better advice (i.e. shorting, etc), but this is what I'm comfortable with at this time, as I don't have the time to monitor my stocks consistently.

[Bill Bumface]

Originally Posted by MoneyGuy

I’m considering DCA’g into the market with cash I’m sitting on.

I set myself a 12 month schedule and started yesterday.

Any advice from a MoneyGuy of how you plan to do it?

[Mickey76]

I was in the industry in 2008 and that was much more scary (to me anyways) and the solutions were far from easy. I remember when Lehman failed I thought everything was over (my trades cleared through Goldman and although they were better the view of those of us in the ground was that everyone might go broke.)The idea of the Fed actually letting them all fail actually seemed like a possibility in the moment at least. This is bad but ultimately a lot of are going to get sick and almost all of us will get better. I am worried about the next 60/90 days but would only see this pullback as a buying opportunity.

[wwkayaker]

A couple of books I found valuable:

Margin of Safety by Seth Klarman
The Dhandho Investor by Mohnish Pabrai
Berkshire Hathaways annual reports...all of them

[HockeyIlliterate]

Nevermind.

[Slava]

Wow, a hilarious and terrible presser by Trump and the market rips higher after that. Such a confusing time!

[OMG!WTF!]

Tiny show of competence plus a whole lot of short covering.

[afc wimbledon]

Originally Posted by Mickey76

I was in the industry in 2008 and that was much more scary (to me anyways) and the solutions were far from easy. I remember when Lehman failed I thought everything was over (my trades cleared through Goldman and although they were better the view of those of us in the ground was that everyone might go broke.)The idea of the Fed actually letting them all fail actually seemed like a possibility in the moment at least. This is bad but ultimately a lot of are going to get sick and almost all of us will get better. I am worried about the next 60/90 days but would only see this pullback as a buying opportunity.

The trouble is regardless of the cause all the same weakness is still in the market, they just papered over it 2008 with QE, I see this as just the extension of 2008 only without the relatively simple bail out cure

[GranteedEV]

Originally Posted by manwiches

Any suggestions on Pharma companies to look at, with the vaccine being developed now? Or too soon to predict?

Moderna, Gilead, and Johnson & Johnson are what I was thinking. There's also Inovio but it seems more sketchy despite the Bill Gates backing.