Investors....come in please!

[pitzel]

Longer-term, the 40+ year bull market in long-term bonds probably is closer to being over, than beginning.

So ideally you'd want to buy assets that did not perform too well with falling long-term interest rates.

The precious metals mining sector, as represented by the XAU index started 100 in approximately 1977. Today it is approximately 110. So 43 years of no gains.

So that might be something worth looking at if you're a true contrarian investor.

 

[Imp4]

Originally Posted by pitzel
Longer-term, the 40+ year bull market in long-term bonds probably is closer to being over, than beginning.

So ideally you'd want to buy assets that did not perform too well with falling long-term interest rates.

The precious metals mining sector, as represented by the XAU index started 100 in approximately 1977. Today it is approximately 110. So 43 years of no gains.

So that might be something worth looking at if you're a true contrarian investor.

Did you just recommend that someone invest in an asset that has appreciated only 10% total over 40 years?
Let's sure hope that past performance is no indication of future results...

 

[Kansas_Ron]

You might look at a S & P 500 index fund. Schwab, Vanguard, Fidelity

 

[pitzel]

Originally Posted by Imp4

Did you just recommend that someone invest in an asset that has appreciated only 10% total over 40 years?
Let's sure hope that past performance is no indication of future results...

I don't give investment recommendations, but you aren't going to achieve above-average returns by buying/owning the same stuff that everyone else does. If you want to resemble "everyone else", just go buy an broad S&P500 index fund or whatever.

 

[KevinP]

I'd start by investing $17.10 tonight on Amazon for Bogel on Mutual Funds.

https://www.amazon.com/Bogle-Mutual-Funds-Perspectives-Intelligent/dp/111908833X

Put the rest of your money into a bank account until such time as you have finished reading it.

 

[99Saturn]

Originally Posted by Kansas_Ron
You might look at a S & P 500 index fund. Schwab, Vanguard, Fidelity

+1, VOO, IVV to name a few to look at. and VTI, SPTM for total market funds.

Plus head over to bogleheads, no reason you need to rush into a buy in the next day or two.

 

[csandste]

Originally Posted by Imp4
If you're planning to buy individual stocks or actively managed mutual funds, chances are you'll do a terrible job versus widely accepted benchmarks.

go ask on //bogleheads.org, they're set up to reasonably answer your questions.

Yep, I can't beat the market and you probably can't either. Plain Jane index funds and ETF's for me. Dollar cost average and have a long horizon.

 

[Wolf359]

Originally Posted by pitzel
Originally Posted by Imp4

Did you just recommend that someone invest in an asset that has appreciated only 10% total over 40 years?
Let's sure hope that past performance is no indication of future results...

I don't give investment recommendations, but you aren't going to achieve above-average returns by buying/owning the same stuff that everyone else does. If you want to resemble "everyone else", just go buy an broad S&P500 index fund or whatever.


Considering the S&P 500 have gone up on average 13.5% for the last 10 years, I've been pretty happy with average returns. The problem with chasing higher returns with individual stocks is that sometimes you can do it, but over the long term, probably not. I used to have shares of Berkshire Hathaway (B shares, not A, but I did got to the meeting once and sat next to a guy who had 11 A shares), but even they have under performed the S&P 500 over the last 10 years. I'm in the if you can't beat them, join them crowd.

 

[Lou_Boyle]

"Them that say don't know, them that know don't say." Old stock market axiom.

 

[pitzel]

Originally Posted by Lou_Boyle
"Them that say don't know, them that know don't say." Old stock market axiom.


"if its too brainless, maybe its done routinely by people without brains".

Yes, I just made that up, its not a quote from a real notable person.....but that's basically my concern with broad market index investing these days. Its just too darn easy.

 

[Revving2Redline]

Its a car forum so it should be "what shocks to buy"

 

[ecotourist]

"Buy stocks that go up, if they don't go up don't buy them." ref Will Rogers

You're just over 10 years away from retirement. If you're bent on investing now, after setting aside 3 months living costs in cash as an emergency fund (T-bills would do), I'd suggest you buy a combination of low cost broad market stock ETFs and bond ETFs. The relative proportions of stock ETFs and Bond ETFs depends on how aggressive an investor you are. Another way of phrasing that question is to ask how prepared you are to lose as much as 50% on your stocks over a few days to weeks? That has happened several times and will happen again - we just don't know when. When the market crashes, can you stomach the losses and hold on, knowing that it will eventually recover? Even better, when the market crashes do you shout "Wahoo, everything is on sale, and pile into the market".

If all this talk of the potential for heavy losses is making you uncomfortable, you should go light on the equity side.

I'm retired but live comfortably on our pensions so I don't worry too much about the markets going up and markets going down - they will do that, but over the next 20 years they'll be up. Over the next 10 years I'm not so sure.

I've held a minimum of 50% in equities for the past 40 years and have the scars and gains to show for it. That's crazy aggressive for a retired guy, but as I say we live comfortably (very well actually) on our pensions alone, so while I don't like big losses, I'm mentally prepared for them, and they won't effect our standard of living.

 

[Lubener]

Originally Posted by daves66nova
What stocks are good to buy today or tomorrow, the 25th? I have about 8k

Consult with a fee only advisor. I wouldn't listen to anyone who isn't qualified to give financial advice on stock purchases. You likely will get bad advice on a forum from arm chair quarterbacks..

 

[Triple_Se7en]

Originally Posted by Kansas_Ron
You might look at a S & P 500 index fund.


Yep ^^^^^^^^^^^^^^^^^

 

[bachman]

The irony of that question on car forums is many of us invested in cars or transportation that we need from a basis of "what will cost us the least to drive" (to an extent anyways). If we were mega-successful investors in the arena of automotive, we'd all be collectors of wise profit-generating car deals. Not only do many buyers purchase and drive things that almost immediately depreciate, the up-market causes much biz for custom wheels, costly suspension and performance or exhaust mods that further shed the wallet.
I've heard I can do worse if I'll just go get a boat.

I have a friend / co-worker who is pretty on top of things and from his experience, I went with his advisor via Edward Jones. There were some 'company' things with changes here and the co-worker is just a few years ahead of me retiring 2 years ago. He's very happy and comfortable.
You'll do good to meet with some professional in that regard IMO and you can set your risk versus reward where you are most comfortable at and change it any time per situation, windfall $$ or whatever. They should want to get to know you and or your goals etc.... After an initial meeting or a couple, it's just a tune-up or check in thing once or twice a year unless something big is happening or you want to make changes.
You are at a good age to get proactive on this stuff and Not put it off.

 

[Pablo]

Buy QYLD and set the monthly payout to reinvest in same. Then ignore more or less (check every few years)

 

[Mr Nice]

I was able to boost my portfolio with some leveraged ETFs the past 5 years.

S&P 500 should always be a core holding.

 

[Mr Nice]

Originally Posted by daves66nova
Originally Posted by 99Saturn
How long will you planning on holding onto the investment?
Im 51 on Feb 26. I retire at 64. i'm not savvvy on investing. This 401 is from work. It's Vanguard 401


Do you have a Roth IRA ?

If not, I'd use that money to open one ASAP.

 

[Mainia]

Zbra

 

[Amkeer]

Individual stocks I would be careful right now as the market is overvalued. When the time comes I would break it into portions 15% trades at time and focus on QQQ. Could the market retain overvalued for sometime? Yes. Having no position in the market is holding a position. Be patient.