A Word from the Wise
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IF lots of people are selling, then lots of people will be buying ...at literally "fire sale" bargain prices! With the exception of a handful of firms that may have suffered direct losses of unknown recoverability from the attacks, all companies are worth whatever they were worth Tuesday morning, and their stock is still as over- or undervalued as it was then. Anybody who dumps is dumb but I'm not the least bit worried about it if they do.
Against prevailing advice last year, I got entirely out of equities and put all our retirement money into bonds. I pretty much kept the inflated value of the dot com boom safe while my friends and relatives who stayed in, like, s+p index funds, have lost 30 per cent and those stocks are still on average overvalued about double compared to the average valuation of the past century.
Please do not confuse good financial planning with patriotism. This is honestly still a great time to try to save anything you may have left.
I am a real refugee to these shores. Coming here let me escape from those who killed all the rest of my family. I love this nation. It's the sanctuary for the rest of the world, and it's hope.
Please do not confuse good financial planning with patriotism. This is honestly still a great time to try to save anything you may have left.
I am a real refugee to these shores. Coming here let me escape from those who killed all the rest of my family. I love this nation. It's the sanctuary for the rest of the world, and it's hope.
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I agree with the kid on this one, Jackbird you can keep your money in bonds if you like but the US Free Market system quatified by the S&P 500 will win the race with fixed return bonds in the long run. I am staying the course of always buying stock because we have the greatest country in the world. You can call it Patriotism if you like but in this case Patriotism and good long term finiancial planning are compatible. The market will be back and those who choose not to be bold will be left with a 3% return. see http://finance.yahoo.com/q?s=^SPC&d=c&k=c1&a=v&p=s&t=my&l=on&z=m&q=l
for evidence.
for evidence.
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2,752 Posts
Re: A Word from the Wise Buy Buy
I agree with the kid on this one, Jackbird you can keep your money in bonds if you like but the US Free Market system quatified by the S&P 500 will win the race with fixed return bonds in the long run. I am staying the course of always buying stock because we have the greatest country in the world. You can call it Patriotism if you like but in this case Patriotism and good long term finiancial planning are compatible. The market will be back and those who choose not to be bold will be left with a 3% return. see http://finance.yahoo.com/q?s=^SPC&d=c&k=c1&a=v&p=s&t=my&l=on&z=m&q=l
for evidence.
I agree with the kid on this one, Jackbird you can keep your money in bonds if you like but the US Free Market system quatified by the S&P 500 will win the race with fixed return bonds in the long run. I am staying the course of always buying stock because we have the greatest country in the world. You can call it Patriotism if you like but in this case Patriotism and good long term finiancial planning are compatible. The market will be back and those who choose not to be bold will be left with a 3% return. see http://finance.yahoo.com/q?s=^SPC&d=c&k=c1&a=v&p=s&t=my&l=on&z=m&q=l
for evidence.
Buy Buy, Money!
I look to get back into equities when valuations approach historical levels of price-earnings ratios.
They're still about double. The Japanese stock market shows us that stock prices can steadily deflate for twelve straight years.
If you can pump up the value of your shares with a little patriotism, I don't see much harm in that. Just understand that some of us love our country, but see no patriotism in loosing money. I thought bonds were a better deal last year. I was way right, and I'm still right. Good luck to you personally though. Us bikers are all a great bunch of folks and I know you are too.
I look to get back into equities when valuations approach historical levels of price-earnings ratios.
They're still about double. The Japanese stock market shows us that stock prices can steadily deflate for twelve straight years.
If you can pump up the value of your shares with a little patriotism, I don't see much harm in that. Just understand that some of us love our country, but see no patriotism in loosing money. I thought bonds were a better deal last year. I was way right, and I'm still right. Good luck to you personally though. Us bikers are all a great bunch of folks and I know you are too.
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Re: Buy Buy, Money!
"Just understand that some of us love our country, but see no patriotism in loosing [sic] money."
Wow, you're a regular Nathan Hale.
"Just understand that some of us love our country, but see no patriotism in loosing [sic] money."
Wow, you're a regular Nathan Hale.
Sorry. I don't take financial advice from yahoos
There have been people trying to say the great global economic decline is over since the dot com boom ended. They have money to make by convincing people that is really the case.
This pocketbook patriotism pitch is pure poop. If you think you're going to help your country by losing half your nut, go ahead and stay in the market for the coming year.
There have been people trying to say the great global economic decline is over since the dot com boom ended. They have money to make by convincing people that is really the case.
This pocketbook patriotism pitch is pure poop. If you think you're going to help your country by losing half your nut, go ahead and stay in the market for the coming year.
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2,752 Posts
Re: look at the chart you yahoo 
be an EAGLE not a crow.
my html reference was a long term chart of the S&P 500. The chart suggests you jackbird are being a little short sided, have you been spooked. If you cut and paste the html into your browser up comes a chart which shows the long term trend of the S&P 500 (notice the chart is log scale i.e. geometric for you non engineers). Compare that with a chart of Tbills or Bonds or any fixed rate investment. Most of the charts aren't even log scale. As var as overvalued stocks there are alot of stocks in the S&P who P/E ratios below 20. Boeing is an example. I agree with you about NASDAQ and the dot coms being overvalued. However, the bulk of the economy is not these companies. So Jackbird become an EAGLE i.e the only bird not afraid of a storm. Come join the rest us eagles BUY BUY
be an EAGLE not a crow.my html reference was a long term chart of the S&P 500. The chart suggests you jackbird are being a little short sided, have you been spooked. If you cut and paste the html into your browser up comes a chart which shows the long term trend of the S&P 500 (notice the chart is log scale i.e. geometric for you non engineers). Compare that with a chart of Tbills or Bonds or any fixed rate investment. Most of the charts aren't even log scale. As var as overvalued stocks there are alot of stocks in the S&P who P/E ratios below 20. Boeing is an example. I agree with you about NASDAQ and the dot coms being overvalued. However, the bulk of the economy is not these companies. So Jackbird become an EAGLE i.e the only bird not afraid of a storm. Come join the rest us eagles BUY BUY
Re: look at the chart you yahoo be an EAGLE not a crow.
Actually I found a federally insured bond fund that pays 3 per cent and keeps me liquid. Like Warren Buffet, I have my eye out for bargains. Anything to do with airliners is off my list though. If I were serious about trying to profit from this situation I would be selling short like so many others seem to be doing. I am not out to profit from tragedy but continue to follow goals tailored to my situation. "Cherry Picking" might be a good name for my equity strategy these days.
No Risk, No Profit, unless you understand hedging better than I do. Looks like markets around the world sank around 5% so far today. This is one of those times I hate to be so right.
I have flown a lot through storms, and can say better than most, that eagles actually avoid storms.
That's sort of what I advise to fellow fiscal flyers.
If you don't see that there's a great black cloud dead ahead... ... ...Good Luck.
be an EAGLE not a crow.Actually I found a federally insured bond fund that pays 3 per cent and keeps me liquid. Like Warren Buffet, I have my eye out for bargains. Anything to do with airliners is off my list though. If I were serious about trying to profit from this situation I would be selling short like so many others seem to be doing. I am not out to profit from tragedy but continue to follow goals tailored to my situation. "Cherry Picking" might be a good name for my equity strategy these days.
No Risk, No Profit, unless you understand hedging better than I do. Looks like markets around the world sank around 5% so far today. This is one of those times I hate to be so right.
I have flown a lot through storms, and can say better than most, that eagles actually avoid storms.
That's sort of what I advise to fellow fiscal flyers.
If you don't see that there's a great black cloud dead ahead... ... ...Good Luck.
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1,538 Posts
Lets save these posts, for 18months and then look back and see who is laughing. (I'm guessing that it won't be Jackbird... he won't be broke, but he will have missed a hell of a ride.)
Dang! Forgot to lead last post with funny Subject.
I know about long term trends, but I have a different approach to investing than is usually advised although it's done by the smart money, and that is to try to keep gains made in up market cycles by keeping them safe and intact through the downturns, and then reinvesting when the market seems to have bottomed out. Where the bottom is, is now the hot question all around the world. History does provide a guide. Price / Earnings is an excellent yardstick. Depending which measure is used, average P/E of the s+p 500 is around 30. Average over past century ~=14.
I know about long term trends, but I have a different approach to investing than is usually advised although it's done by the smart money, and that is to try to keep gains made in up market cycles by keeping them safe and intact through the downturns, and then reinvesting when the market seems to have bottomed out. Where the bottom is, is now the hot question all around the world. History does provide a guide. Price / Earnings is an excellent yardstick. Depending which measure is used, average P/E of the s+p 500 is around 30. Average over past century ~=14.
Love a nice up and down ride ... on my bike
There will be great investment opportunity in motorcycle stocks immediately following the long-predicted Japanese financial disaster, which the terror incident may actually precipitate.
18 months from now I could open Jack's Investment College and Font of Free Advice but now I'm just another opinion.
There will be great investment opportunity in motorcycle stocks immediately following the long-predicted Japanese financial disaster, which the terror incident may actually precipitate.
18 months from now I could open Jack's Investment College and Font of Free Advice but now I'm just another opinion.
More Free Advice. Worth at least twice its cost.
...current average p/e divided by historic average p/e is very likely to equal current overvaluation, or where the real bottom is likely to be, which is lower even than that.
Put into numbers: 30/14=~2.148. That means the average share price of issues in the s+p could well drop to the average over the last century which is 46 per cent of where they are now.
I hope to still be alive when the market turns up again. A factor against it is America's current accounts deficit. Most of the off-the-books part of the global economy has helped keep the dollar strong and relative valuations high, at least so far.
May you all live long prosperous lives with lots of great riding and no bad falls.
...current average p/e divided by historic average p/e is very likely to equal current overvaluation, or where the real bottom is likely to be, which is lower even than that.
Put into numbers: 30/14=~2.148. That means the average share price of issues in the s+p could well drop to the average over the last century which is 46 per cent of where they are now.
I hope to still be alive when the market turns up again. A factor against it is America's current accounts deficit. Most of the off-the-books part of the global economy has helped keep the dollar strong and relative valuations high, at least so far.
May you all live long prosperous lives with lots of great riding and no bad falls.
Fascinating!
Very interesting posts I must say. I find it so because I'm only 22 years old and just recently, got involved in my firms 401k plan. My father has big dollars and is heavily engrossed in the market. When I showed him my plan he said it was a good idea for me since I'm so young, but he wouldn't offer any real advice for me. He's always been a learn from your own actions/mistakes type of guy. I've basicaly invested in highly volitive funds. Don't ask which ones, because I've got no idea really. I get statements every quarter that area more or less Greek to me. However, I'm taking more interest recently. Not because of last weeks tradgedy, but even before that. I want to know what my money is doing for me and how I can be more involved.
On a lighter note, my heart truly does go out to all the families who lost loved ones and friends. My Uncle Joseph, I found out was supposed to have a meeting with some financial people last Tuesday afternoon. He's fine, he wasn't there when tradgedy struck, he was on the train from New Haven, CT. But, it makes you stop and think. God bless.
Very interesting posts I must say. I find it so because I'm only 22 years old and just recently, got involved in my firms 401k plan. My father has big dollars and is heavily engrossed in the market. When I showed him my plan he said it was a good idea for me since I'm so young, but he wouldn't offer any real advice for me. He's always been a learn from your own actions/mistakes type of guy. I've basicaly invested in highly volitive funds. Don't ask which ones, because I've got no idea really. I get statements every quarter that area more or less Greek to me. However, I'm taking more interest recently. Not because of last weeks tradgedy, but even before that. I want to know what my money is doing for me and how I can be more involved.
On a lighter note, my heart truly does go out to all the families who lost loved ones and friends. My Uncle Joseph, I found out was supposed to have a meeting with some financial people last Tuesday afternoon. He's fine, he wasn't there when tradgedy struck, he was on the train from New Haven, CT. But, it makes you stop and think. God bless.
Next Day: Defense Industry Stocks Rise, all else falls
To me that's profiteering, which I'm fortunate enough not to have to do.
I worry about all motorcycle companies, especially the Japanese ones. I love both my Harley and my Honda Super Blackbird but I would be less thrilled about a Honda-Davidson. Hope they all avoid troubles like those in the car biz.
To me that's profiteering, which I'm fortunate enough not to have to do.
I worry about all motorcycle companies, especially the Japanese ones. I love both my Harley and my Honda Super Blackbird but I would be less thrilled about a Honda-Davidson. Hope they all avoid troubles like those in the car biz.
minime, i think the phrase is 'a word TO the wise'.
while i'm always glad to read someone's opinion, it
seems a little inconsistent to describe mr. sands as
'a punk kid' and 'wise' in the same piece. it might
not be out of line to describe him as 'wise' when it
comes to brake pads or tire choices, but when it
comes to investment advice? i don't think so.
don't get me wrong, i'm sure he's a great guy and i
believe you when you say he's got a big heart, but
let me suggest that MO leave the investment strategies
to those guys with the funny little charts and the
inside information. stick to what you do best, like
kissing the butt of big business which------wait a
minute here------on second thought mr. sands'
article fits right in with the rest of your program.
good job!!!
while i'm always glad to read someone's opinion, it
seems a little inconsistent to describe mr. sands as
'a punk kid' and 'wise' in the same piece. it might
not be out of line to describe him as 'wise' when it
comes to brake pads or tire choices, but when it
comes to investment advice? i don't think so.
don't get me wrong, i'm sure he's a great guy and i
believe you when you say he's got a big heart, but
let me suggest that MO leave the investment strategies
to those guys with the funny little charts and the
inside information. stick to what you do best, like
kissing the butt of big business which------wait a
minute here------on second thought mr. sands'
article fits right in with the rest of your program.
good job!!!
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