December 21, 2018 at 12:14 PM #22646
Bought some Ford today, hasn’t been this low since 2009. What stocks are you buying today?December 21, 2018 at 1:48 PM #811361gzzParticipant
S&P 500 down 17% since Oct 3!
As I noted yesterday, I gradually exited the stock market completely the last 18 months, doing my final ETF sales a week ago. (Well timed!).
The last time I did major buying of stocks, prices were a lot lower than today. I don’t plan to buy again unless prices go down another 10%, at which point I’d but half into ETFs and half into megacaps like AAPL and GOOG.
5-10 years ago, I’d look at particular stocks and they’d seem clearly under or overvalued so I’d buy or short them. Today, most stocks seem to be pretty close to fair value, or perhaps slightly undervalued on the whole.
The problem with F is (1) GM used bankruptcy to dump a lot of bond and pension liabilities and jettison low-volume legacy low-volume dealers. F avoiding bankruptcy, so still has these issues; (2) people are gradually driving less while cars are becoming more reliable and longer lasting.December 21, 2018 at 5:08 PM #811363
I don’t really plan to hold Ford long term just long enough to earn some dividends and hopefully sell higher than my average buy in.December 21, 2018 at 5:53 PM #811364henrysdParticipant
[quote=moneymaker]Bought some Ford today, hasn’t been this low since 2009. What stocks are you buying today?[/quote]
You seem to have a strong urge to trade stock.
Not buying stocks today. There are a few things on my radar gun, junk bond is on my list. Junk bonds are not tax friendly, but the tax cut reduced my tax bracket, so owning high yield taxable bond is no longer a problem for me. I may have to wait half to one year to get good opportunity to enter.
You seem to like Ford’s high dividend yield. But the company is quite high in debt and its bond rating was cut this year to one notch above junk. If the company runs into some trouble, its bond rating will be further reduced, thus make them harder to raise capital due to higher interest rate. What they will do next, cut dividend, then share holders get mad, a big bout of selling follows. This is exactly what has happened to GE.December 22, 2018 at 1:58 PM #811376
With no apparent reason for the downturn I’m looking at this as a buying opportunity, if I’m wrong then I will hold long term for the lower capital gains tax. Short list currently consists of Apple,Qualcomm, and Ford.December 22, 2018 at 7:21 PM #811378AnonymousGuest
No apparent reason? Are you that clueless?
Haven’t you ever wondered what is the reason the market is up nearly 400% the last 10 years? Maybe the reason it is tanking now is because the inverse of whatever caused the 400% run-up is now occurring. Just some food for thought.December 26, 2018 at 12:39 PM #811438gzzParticipant
Stocks rebounding but rates still around 8-month lows!
If they had fallen today I was going to buy AAPL. Adjusting for their cash horde their PE is about 8! Still cheap after today’s 5% gain, but I think there will likely be a better entry point in the next month or two.
They do have a problem with phones not getting better anymore and upgrade cycles going from about 2 years to 3 or 4 years. I think they made a mistake not getting into premium TV sets a few years ago. Now TVs are getting cheap and are no longer the opportunity of 5-10 years ago.
Nonetheless, iphone/ipad/macbook will still be a cash cow if a declining one, and there could be some upside if they enter new markets.
- You must be logged in to reply to this topic.