FLU,
I could discuss this with you for a long time.
(My opinions are not necessarily those of anyone else)
The mentality of “the market” continues to amaze me.
It’s not a STOCK MARKET, it’s a market of stocks.
Who cares what the DOW is doing, unless that is all you are invested in. It’s a basket of 30 stocks. THIRTY.
I see comments that refer to “THE MARKET” as nothing more than ignorant or foolish, possibly both.
Unless you daytrade, who cares about daily moves.
The larger and well known a company is, the more potential there is for manipulation and worrying about short squeezes etc.
One of the greatest stock market investors is BUFFET.
He recognizes VALUE and businesses that he understands.
He didn’t lose any fortune in the dot com boom, cuz he never bought into the myth, that many “average Joes/Janes” bought into and lost their azz.
There are trillions of dollars “invested” by people that know less about stocks than they do about their mortgage. It’s what they believe is the right thing to do, based on popularity and salespeople.
Everybody CAN’T make money in any market forever. The greater fool theory can only go on so long before it busts.
It’s a legalized pyramid scheme that many people profit from, but it’s not security in my opinion any more than the equity in a house.
Most people may have heard of P/E but cannot explain it. They don’t know what market cap, P/S ratio, enterprise value, PEG ratio, ROE or many other stats that are available FREE.
The fact is that average people that truly know very little CAN make vast amounts of money. It’s called LUCK.
People who bought houses in San Diego before 2003 got lucky. They didn’t KNOW they would double.
Many people gladly sold into that bubble, with huge gains and little remorse. There always has to be a seller for someone else to buy anything.
Happens in stocks, it happens in houses. It’s different when you can explain WHY you are invested or why you are not.
Most people are invested for the long run. You hear all the time that it’s not timing, it’s time in the market. BLAH BLAH BLAH, selling you on what the average returns have been over the past 75 years. BLAH blah BLAH.
Following the herd will reward you when times are good and punish you when times are bad.
Nobody is right 100% of the time. Figure out what works for you.
Quick examples today:
GTF is up 122% RTWI is up 47%
HAR is down 19% TMTA is down 15%
If you own any of the above 4 stocks, do you care what
“the market” is doing today ?
The headlines are beyond idiotic. REAL money is made buying when things are out of favor, at or near bottoms, and selling at a profit. You can make 100%-500% when patient.
Most people jump on a moving train right before it stops moving, chasing gains and performance, hoping for a 10% or 20% gain. Buying yesterdays news about the last quarter that ended several months ago, is simply not logical, but that’s how it works.
When you understand that it’s idiotic, but that’s how it is, you can possibly profit from it.
