Investors....come in please!

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WMT new all time high, its fun to watch but this market rally based on absolutely nothing and I mean nothing. I dont believe this whole rally thing.
*L* Yet except WMT there is no denying their robust sales, gosh I love this company at his time.

I think some months down the road there is a chance that nothing but ashes of what was a great world economy will be left, ashes like 1929/30 so bad that people today dont know what bad is and that is what concerns me, even I dont know what bad is. I think the danger is, bad isnt on anyone radar, just like the virus wasn't.
But bad is not a market that tanks 30% and rebounds in a few months.

To me, bad is a market that tanks 50 to 70% and takes years to rebound.
I hope my feelings are wrong *L* but I dont for a second all of a sudden think life will be back to normal in a matter of months. Hope I am wrong, heck, Im no expert and honestly do not follow the market that close.

With all the above said, in case others have not read my posts, I continue to be fully invested, heck I even increased one of my 401k contributions...
I still have my toys, bike, boat, still work on and maintain my home, and still looking to buy a new to us 2017 ish SUV to replace the Durango.

More or less I am not changing my lifestyle even though everyone I know has taken pay cuts and or furloughed, including my wife who was told yesterday a 20% pay cut until things improve, my son furloughed till May 1st, my daughter a 10% pay cut, me still very secure and always will be but I do have an investment property that is under a little stress, and the tenants always managed for decades to weather economic changes but in this case its a bit different.
 
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I would watch WMT closely here on out. They have enjoyed a brisk business but they are now implementing crowd controls at all their stores. Limited numbers of shoppers will be allowed at any one time. For some stores, non essential areas like garden and electronics will be closed off. In addition, most if not all the 24 hour stores are closing at night.

It will depend on how long this lasts. A month or two will be a blip. These measures will certainly affect their sales numbers.

The other factor to watch is the online shopping aspect. I'm not sure that will fill in completely for the loss of traffic but sales have jumped with online shoppers.
 
Originally Posted by alarmguy
WMT new all time high, its fun to watch but this market rally based on absolutely nothing and I mean nothing. I dont believe this whole rally thing.
*L* Yet except WMT there is no denying their robust sales, gosh I love this company at his time.

I think some months down the road there is a chance that nothing but ashes of what was a great world economy will be left, ashes like 1929/30 so bad that people today dont know what bad is and that is what concerns me, even I dont know what bad is. I think the danger is, bad isnt on anyone radar, just like the virus wasn't.
But bad is not a market that tanks 30% and rebounds in a few months.

To me, bad is a market that tanks 50 to 70% and takes years to rebound.
I hope my feelings are wrong *L* but I dont for a second all of a sudden think life will be back to normal in a matter of months. Hope I am wrong, heck, Im no expert and honestly do not follow the market that close.

With all the above said, in case others have not read my posts, I continue to be fully invested, heck I even increased one of my 401k contributions...
I still have my toys, bike, boat, still work on and maintain my home, and still looking to buy a new to us 2017 ish SUV to replace the Durango.

More or less I am not changing my lifestyle even though everyone I know has taken pay cuts and or furloughed, including my wife who was told yesterday a 20% pay cut until things improve, my son furloughed till May 1st, my daughter a 10% pay cut, me still very secure and always will be but I do have an investment property that is under a little stress, and the tenants always managed for decades to weather economic changes but in this case its a bit different.




BAD,BAD,BAD
 
One thing we can agree on. We have simply not done this before. This was a choice......i mean purposeful and necessary yes.....but it was a choice to bring the economy to an essential halt. I personally was somewhat ready but did not expect all the HY stuff to fall out of the trees and bore toward the center of a black hole. In some ways this is a good thing to bring the risky stuff to earth but all the Fed buying and such is more dangerous IMHO. We shall see.


I am clawing my way back. Not perfectly by any means but sufficient. I traded security and added risk but now participate nearly fully sometimes greater than the averages on the bullish days.

Mainly during all this I have been watching and jumping on some exquisite opportunities - I think - and who knows I could be wrong - there have been some very rare lifetime buying opportunities.
 
Originally Posted by Mr Nice
WMT and AMZN are good buys.

They seem incredibly over valued right now. Why not buy distressed stocks on sale still? Only been trading since march 18th so maybe i dont know much, but up almost 70% now.

When this blows over i see a selloff in WMT for sure and likely a decline in amazon, though not as sharp.
 
Originally Posted by Pablo
One thing we can agree on. We have simply not done this before. This was a choice......i mean purposeful and necessary yes.....but it was a choice to bring the economy to an essential halt..


Correct. Nuveen had a brief commentary about this bear market, being of exogenous factors, and not structural in nature.
 
Originally Posted by PimTac
I would watch WMT closely here on out. They have enjoyed a brisk business but they are now implementing crowd controls at all their stores. Limited numbers of shoppers will be allowed at any one time. For some stores, non essential areas like garden and electronics will be closed off. In addition, most if not all the 24 hour stores are closing at night.

It will depend on how long this lasts. A month or two will be a blip. These measures will certainly affect their sales numbers.

The other factor to watch is the online shopping aspect. I'm not sure that will fill in completely for the loss of traffic but sales have jumped with online shoppers.


Im in WMT for the long haul. Its an investment which I went into big time in March 2019, way before the virus. I also felt it was sane with the P/E ratio at the time.
I believe in the management and where the company is heading, this has nothing to do with short term same store sales.
So far its been the right call, how could anyone ask for more? I am up on any given week 20% for the last year. (even though now I am picking up little bits at higher prices and really bad days)

Im impressed with their efforts to chip away at Amazon, their return policies and delivery pick up options are superior, actually amazing, something Amazon cant come close too.
I use the word "chip away" dont get me into a debate on Amazon vs Walmart *LOL* they are two completely different retailers. What I am saying is I can see Walmart grabbing a little more of the PIE from Amazon, just a little. If anything I would look to invest in Amazon for its cloud services, which is their meat and potatoes, not retailing.

Throw in Walmarts Physical locations and they have something going for them.
I think their family medicine pilot program in Texas is a slam dunk to bring lost cost Family Medicine and dental services across the USA.

These are just a few things. Again, no one is going to get rich quick on WMT but for me, its a darn solid company that pays a dividend every year and my personal belief is shows promise in its stock to greatly increase in value at almost no risk.
More or less a "Staple" in American life and will be curious how the family Medicine Locations work out. So far so good.

Anyway, wha the heck, my ideas are just as good or bad as anyone else, but for me, nothing could be better and every and any big dip in share price I try to buy a little more. Im pretty much fully invested in it, except for a smaller portion of WFC which was a mistake but, even that, I would buy more of right now. Then again, I like anyone else, what do I know ... ??? :eek:)

(its kind of cool to be able to talk stocks in a civil manner and hope others keep it this way)
 
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Originally Posted by dareo
Originally Posted by Mr Nice
WMT and AMZN are good buys.

They seem incredibly over valued right now. Why not buy distressed stocks on sale still? Only been trading since march 18th so maybe i dont know much, but up almost 70% now.

When this blows over i see a selloff in WMT for sure and likely a decline in amazon, though not as sharp.


Wealth is not measured in a time frame of 2 weeks.
Wealth is measured when you retire, stop trading, turn your unrealized gains into realized gains.

Being up 70% means nothing in trading stocks short term. I know it feels great and some people do it, high risk, high reward but not for me, not for everyone, been there, done that.
Most major wealth with fewest amount of investors being homeless are made by solid good investments in proven companies. As far as what works for me but not discounting what works for others.
Many millionaires with 401k's that simply had the money go into Stock Index funds over the last couple decades with no other thought.

I still dont believe this whole "rally" thing, the world is in trouble. But again, what do I know?
 
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Originally Posted by alarmguy
Originally Posted by PimTac
I would watch WMT closely here on out. They have enjoyed a brisk business but they are now implementing crowd controls at all their stores. Limited numbers of shoppers will be allowed at any one time. For some stores, non essential areas like garden and electronics will be closed off. In addition, most if not all the 24 hour stores are closing at night.

It will depend on how long this lasts. A month or two will be a blip. These measures will certainly affect their sales numbers.

The other factor to watch is the online shopping aspect. I'm not sure that will fill in completely for the loss of traffic but sales have jumped with online shoppers.


Im in WMT for the long haul. Its an investment which I went into big time in March 2019, way before the virus. I also felt it was sane with the P/E ratio at the time.
I believe in the management and where the company is heading, this has nothing to do with short term same store sales.
So far its been the right call, how could anyone ask for more? I am up on any given week 20% for the last year. (even though now I am picking up little bits at higher prices and really bad days)

Im impressed with their efforts to chip away at Amazon, their return policies and delivery pick up options are superior, actually amazing, something Amazon cant come close too.
I use the word "chip away" dont get me into a debate on Amazon vs Walmart *LOL* they are two completely different retailers. What I am saying is I can see Walmart grabbing a little more of the PIE from Amazon, just a little. If anything I would look to invest in Amazon for its cloud services, which is their meat and potatoes, not retailing.

Throw in Walmarts Physical locations and they have something going for them.
I think their family medicine pilot program in Texas is a slam dunk to bring lost cost Family Medicine and dental services across the USA.

These are just a few things. Again, no one is going to get rich quick on WMT but for me, its a darn solid company that pays a dividend every year and my personal belief is shows promise in its stock to greatly increase in value at almost no risk.
More or less a "Staple" in American life and will be curious how the family Medicine Locations work out. So far so good.

Anyway, wha the heck, my ideas are just as good or bad as anyone else, but for me, nothing could be better and every and any big dip in share price I try to buy a little more. Im pretty much fully invested in it, except for a smaller portion of WFC which was a mistake but, even that, I would buy more of right now. Then again, I like anyone else, what do I know ... ??? :eek:)

(its kind of cool to be able to talk stocks in a civil manner and hope others keep it this way)








I agree that WMT is a good company and a good stock. There might be a slight pullback here due to less shoppers. My sense is that it will have far less impact on Walmart than it will on other retailers.

When you say you are fully invested in WMT, does that mean all your money is in their stock? As good as they are that's not a prudent way to invest. I'm not trying to jab you here but I know people who were all in on Apple or GE or United Airlines, mainly because of company stock plans since they worked for them. I know a pilot who lost a ton of his retirement in UAL.

Be careful.
 
To be fair, the people who were in UAL were prohibited from selling their stock under the terms of the ESOP.

I always thought it a terrible idea to have both your paycheck and your portfolio dependent on the same company.

As far as company risk in a portfolio, I adhere to the 4% rule on that. No one stock exceeds 4% of portfolio value.

AMZN has done so well for us (bought at 252) that it is now 5% of portfolio value, but I expect that will dampen out over time as other stocks, and funds, recently beat down, recover.
 
Originally Posted by PimTac
Originally Posted by alarmguy
PimTac said:
I would watch WMT cl..

(its kind of cool to be able to talk stocks in a civil manner and hope others keep it this way)






I agree that WMT is a good company and a good stock. There might be a slight pullback here due to less shoppers. My sense is that it will have far less impact on Walmart than it will on other retailers.

When you say you are fully invested in WMT, does that mean all your money is in their stock? As good as they are that's not a prudent way to invest. I'm not trying to jab you here but I know people who were all in on Apple or GE or United Airlines, mainly because of company stock plans since they worked for them. I know a pilot who lost a ton of his retirement in UAL.

Be careful.


Discussion, its all good.
Yes, I am fully invested in the sense WMT is a large majority of one of two IRAs that I have. Second IRA is made up of WFC and Index Funds. Actually I have WFC in both IRAs. I just recently added it to the second.

With all the above said I can afford to lose anything I have invested in those IRAs though of course I would not be happy at all, I can afford it, because I have a holding in real property/real estate that is tucked away for retirement and has performed nicely as far as income over the past few decades.

I guess when you think about it, I am well diversified.
 
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Originally Posted by Astro14
To be fair, the people who were in UAL were prohibited from selling their stock under the terms of the ESOP.

I always thought it a terrible idea to have both your paycheck and your portfolio dependent on the same company.

As far as company risk in a portfolio, I adhere to the 4% rule on that. No one stock exceeds 4% of portfolio value.

AMZN has done so well for us (bought at 252) that it is now 5% of portfolio value, but I expect that will dampen out over time as other stocks, and funds, recently beat down, recover.




I totally agree. The 4% rule is a good one to go by.

While I didn't know the specifics on the UAL ESOP, it's true that those plans can tie one into a situation they shouldn't be in. That's easy for me to say not having ever been exposed to such a plan. Along with the overexposure to a single stock I've heard that company politics can play a part as well. In this particular person's case, UAL was a strong company with a strong future and he had been with them for many years. Then September 11, 2001 came and it all changed.

I know several people currently in the commercial aviation sector and I worry about them. One is about 5-7 years away from retiring. A lot of people are affected in this current situation.
 
Schwab used to harp on me about 1 stock no more than 4%.
I let them work with about half of my portfolio, but they have to keep their hands off my LRCX.

This is not meant as advice...
 
Back when GE was $30 a share, a coworker I knew put 100% of his 401K into GE stock because the CEO had purchased stock before leaving the company.

Coworker told me that the GE CEO "knows something" that GE employees don't know. I told him CEO has stock options and can buy GE at a discount, then dump all of it 2 days later for an easy 15-20% profit.

GE tanks shortly after that and the guy lost a substantial amount of money in 401K. Now he is left with so much crap GE stock and will take a long time to recover. He is still buying 100% GE stock in his 401K.

Very DUMB. I told him to stay diversified back when it was $30 a share. He wants to believes GE will be $50-60 a share in the future.....
smirk.gif
 
Originally Posted by Mr Nice
Back when GE was $30 a share, a coworker I knew put 100% of his 401K into GE stock because the CEO had purchased stock before leaving the company.

Coworker told me that the GE CEO "knows something" that GE employees don't know. I told him CEO has stock options and can buy GE at a discount, then dump all of it 2 days later for an easy 15-20% profit.

GE tanks shortly after that and the guy lost a substantial amount of money in 401K. Now he is left with so much crap GE stock and will take a long time to recover. He is still buying 100% GE stock in his 401K.

Very DUMB. I told him to stay diversified back when it was $30 a share. He wants to believes GE will be $50-60 a share in the future.....
smirk.gif




That's a sad story, at least you tried to set him straight
 
Was an incredible day today for my short term buy distressed stocks strategy. Find the value, buy it, sell after making 10-20%, find the next value.
 
As long as they release news every Thursday of more $$$$ injected into the economy.....

20+ million unemployed folks in the USA will NOT hurt the markets.
 
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