Well there was one democratic president that had a strong stock market and dollar. He liked cigars and secretaries
Did you wish you got in the housing market in 2006? You know, when the market was at record highs and everyone said to "jump in". Basically, you need to be contrarian. When people are buying you should be selling. When people are selling, you should be buying. Advice: you should buy right now. but watch bernanke and the FED like all investors are doing and completely liquidate when there is a hint of QE ending or interest rates rising. You'll have a very short window...don't stay long. after that put your money in precious metals because we'll have a currency crisis.
I get the whole zig when other people zag thing now. Finally. Huh? Everybody is buying right now. Doesn't that directly contradict your first point? I've heard from conservatives about how we're just....about...due...for.... a....currency.....crisis for, literally about 20 years. *shrug* Truth is I wish I'd put my money in gold about 3 years ago. Not because of any currency crisis. Gold has just done really well. Again, though, it seems like the market has really, really valued gold lately. Meaning I probably shouldn't (by your own advice. Again, read your first point).
Well, you'll have a short window of government insured investing. The market will be solid as long as QE is happening, but it can't happen infinitely...so like I said, when that stops you should get out because most of the major investors will. Also, once interest rates go up, the same thing will happen. FED has said the rates will stay near zero until 2015. I mean there's a specific two conditions until when we're going to be fucked, its pretty obvious if you realize it, its as clear as the problems in the housing crisis. Gold actually has been lately a "good buy", like I said its just a matter of timing right now...once the FED stops sucking on the teet, the big investors are going to be doing exactly what I am saying, namely pulling out. The high stock market isn't indicative of a healthy economy with sound fundamentals, but rather the wealthy knowing that the government will basically spend $85 billion+ per month to keep the market in positive territory.
Just an update. The American airline stock is at $2.95. I bought in at $2.70. In one day; I made $0.25 per share profit. $250 gain on 1,000 shares.
I actually disagree with this strategy. It is impossible to time the market, so you never know when a 5% decline and sell-off is going to turn into a 30% drop. The large hedge funds are going to drive the market, so if they are selling, you should be selling. If they are buying, you should be buying. That is different from listening to your friends and their fear or greed. They aren't moving the market like the large funds are. The trend is your friend. Buy high, sell higher. This approach can only work if you're willing to monitor and be active. If you just want to buy and hold, don't listen to what I'm saying.
I just bought some XIV @ 21.2. I'm not sure if I have the balls to sit through some of the volatility of this thing, but we'll see.
I'm trying to get better at bi-directional trading. I'm only going with a really small position on this one for now.
Well I tried doing a quick move with a stock called "frontline" FRO and bought in at $9.20 a share. By the time I gave up and sold my loss; I sold it for $2.95. I think it's now $2.00. I had 2,000 shares and lost nearly 16k in less than a year. Uggg
My worst trade ever was buying Bank of America. I bought in 2008 when it was "so low it couldn't possibly go lower" after it had dropped from about $50 to $30. It then proceeded to drop from about $30 to $3. This is why I don't believe in the "buy when others are selling" strategy. Stocks can and will go lower than you think.
I totally agree! Stocks aren't as "for sure" as people think. Take my other investment "Teva". It's so under valued its pathetic. The p/e is way off the charts. That is a strong stock; but doesn't have much interest with hedge funds. It's definitely a $55 stock, but the market says its $38 right now. Every dip; I'm buying the shit out of it. I hold around 7,500 shares. It helps that it pays about $1.50 per share per year in dividends to help the under value.