Is the stock market slide over?

mathjak107

Senior Member
We likely will have more drops as markets are jittery..but it looks like markets closed the books on 2020 ....the prices today seem to be the price for a ticket for 2021 and beyond .....those who wait for this to blow over will be paying even more to get a seat
 

rgp

Well-known Member
Location
Milford,OH
If you are in the market ,do you feel secure in the market ?

I am down to just one market investment, a nice one/old company. I have two 'other' types of investments . I am seriously thinking of going to just cash. I'm 71 yrs old, if we have a moderate to major dip in the market ? I'm too old to recover the dip, and 'return' to where i am. And lets face it, the market effects all other investments.
 

mathjak107

Senior Member
If you are in the market ,do you feel secure in the market ?

I am down to just one market investment, a nice one/old company. I have two 'other' types of investments . I am seriously thinking of going to just cash. I'm 71 yrs old, if we have a moderate to major dip in the market ? I'm too old to recover the dip, and 'return' to where i am. And lets face it, the market effects all other investments.
i use an all weather portfolio and i am very comfortable with it . it makes money up or down .
 

Aunt Bea

SF VIP
Location
Near Mount Pilot
I'm strictly a mutual fund investor and I plan to die with money in the market.

At the end of June, I was down 1.8% so far this year.

Last year I was up 15.8% for the year.

In my case, it all seems to balance out and the trend is always up over time.

I plan to stay with my current allocation.

I try to plan ahead and make sure that I have enough cash on hand to ride out the rough spots.

We all need to do what's best for our own situation but IMO being invested doesn't have to be an all or nothing proposition.

Good luck!
 

OneEyedDiva

Well-known Member
Location
Nrw Jersey
I'm strictly a mutual fund investor and I plan to die with money in the market.

At the end of June, I was down 1.8% so far this year.

Last year I was up 15.8% for the year.

In my case, it all seems to balance out and the trend is always up over time.

I plan to stay with my current allocation.

I try to plan ahead and make sure that I have enough cash on hand to ride out the rough spots.

We all need to do what's best for our own situation but IMO being invested doesn't have to be an all or nothing proposition.

Good luck!
Aunt Bea...I ditto everything you replied except I do have two ETFs and small amounts of Apple & Facebook. Last year my portfolio was up 22.8% and it's still up double digits as of this past Friday.
 

Pecos

Senior Member
Location
South Carolina
The wife and I have about 33% of our investments in cash, 6% in individual stocks, and the rest in large balanced funds that hold about 35% bonds.

We don't envision making any changes, but since we are not spending much these days, our MRD withdrawals are getting routed into CD's or I-Bonds. We will need that money later and we want it to be there.

Right now, the single investment with the highest rate of return is the whole life insurance policies that I bought back in the early 70's and 80's. My guess is that the insurance company (Navy Mutual Aid) believed that higher levels of inflation would always exist and never envisioned that an annual return of 5% would a high return. Those paid up legacy policies turned out to be a good deal.
 

mathjak107

Senior Member
The wife and I have about 33% of our investments in cash, 6% in individual stocks, and the rest in large balanced funds that hold about 35% bonds.

We don't envision making any changes, but since we are not spending much these days, our MRD withdrawals are getting routed into CD's or I-Bonds. We will need that money later and we want it to be there.

Right now, the single investment with the highest rate of return is the whole life insurance policies that I bought back in the early 70's and 80's. My guess is that the insurance company (Navy Mutual Aid) believed that higher levels of inflation would always exist and never envisioned that an annual return of 5% would a high return. Those paid up legacy policies turned out to be a good deal.
You likely were not aware that you can over fund that policy ....there can be no fees or commissions taken on over funded money .....that money will get that 5% , then you can draw out that extra over funded money as a loan , never pay it back and get that 5% in effect tax free ....one caveat though ...

there is a limit to how much extra you can over fund the policy before the irs says it is not life insurance but a modified endowment policy ...but each year they give you the mec limits and you just go 1 dollar under the limit
 

Pecos

Senior Member
Location
South Carolina
You likely were not aware that you can over fund that policy ....there can be no fees or commissions taken on over funded money .....that money will get that 5% , then you can draw out that extra over funded money as a loan , never pay it back and get that 5% in effect tax free ....one caveat though ...

there is a limit to how much extra you can over fund the policy before the irs says it is not life insurance but a modified endowment policy ...but each year they give you the mec limits and you just go 1 dollar under the limit
Thanks, once again you have posted some good insight.
 

rgp

Well-known Member
Location
Milford,OH
Anyone else holding P&G stock ? I keep wondering if it is going to split ? The last time it did {2004} it was around $97.00 p/share ....... now it is up to $125.00 +/-. A split would be nice @ this point .

And of course the same old question remains ......... should I hold or should I sell ? I'd hate to hold .... then watch it plummet in value . Hence the Wall-Street gamble....;)
 

mathjak107

Senior Member
Anyone else holding P&G stock ? I keep wondering if it is going to split ? The last time it did {2004} it was around $97.00 p/share ....... now it is up to $125.00 +/-. A split would be nice @ this point .

And of course the same old question remains ......... should I hold or should I sell ? I'd hate to hold .... then watch it plummet in value . Hence the Wall-Street gamble....;)
why would a split be nice ? today with 90% of every days trading high speed machine selling the belief that more small investors would buy a cheaper stock became pretty much irrelevant
 

Aunt Bea

SF VIP
Location
Near Mount Pilot
Anyone else holding P&G stock ? I keep wondering if it is going to split ? The last time it did {2004} it was around $97.00 p/share ....... now it is up to $125.00 +/-. A split would be nice @ this point .

And of course the same old question remains ......... should I hold or should I sell ? I'd hate to hold .... then watch it plummet in value . Hence the Wall-Street gamble....;)
If it's a major holding I would look at selling all or part of it and spreading the risk over several stocks or a stock index fund/ETF.

Good luck!
 

rgp

Well-known Member
Location
Milford,OH
why would a split be nice ? today with 90% of every days trading high speed machine selling the belief that more small investors would buy a cheaper stock became pretty much irrelevant
Well, in the ones past that I experienced....the price/value drop was about what was expected, but the rise back in price/value was [as I recall] pretty quick . As other investors scrambled to buy at the post split, lower price p/share. More money in my pocket overall .
 

mathjak107

Senior Member
Well, in the ones past that I experienced....the price/value drop was about what was expected, but the rise back in price/value was [as I recall] pretty quick . As other investors scrambled to buy at the post split, lower price p/share. More money in my pocket overall .
Stock splits have just about disappeared.....

the reason is relatively few small investors buy individual stocks anymore and havent for years...etfs are getting most small investor money with mutual funds second .

.going back to 2016 there were just 6 splits and they produced no benefit
 

oldmontana

Member
Location
Montana
Original Poster
Stock splits have just about disappeared.....

the reason is relatively few small investors buy individual stocks anymore and havent for years...etfs are getting most small investor money with mutual funds second .

.going back to 2016 there were just 6 splits and they produced no benefit


FYI ..
When a stock splits, it can also result in a share price increase following a decrease immediately after the split. Since many small investors think the stock is now more affordable and buy the stock, they end up boosting demand and drive up prices.Apr 15, 2020

I think it depends on the price of the stock.
 

Don M.

Well-known Member
Location
central Missouri
The stock market was brutal today, but in view of the recent unexplainable gains I suppose a big fall should be expected.
For Sure! Given the uncertainty with the Corona Virus, the turmoil in the cities, the high unemployment, And the upcoming election, I'm surprised that the markets have largely recovered from their March/April lows. I fully expect a big dip in the coming weeks. This market is looking more and more like the collapse in 2008.
 

WhatInThe

Well-known Member
I think the markets have a lot of new if not more thvestors with different trading patterns. Too many stocks skyrocketed pump and dump style a month into the lockdowns. And theire will be profit taking. A set of hills on this roller coaster.
 

garyt1957

Member
Anyone else holding P&G stock ? I keep wondering if it is going to split ? The last time it did {2004} it was around $97.00 p/share ....... now it is up to $125.00 +/-. A split would be nice @ this point .

And of course the same old question remains ......... should I hold or should I sell ? I'd hate to hold .... then watch it plummet in value . Hence the Wall-Street gamble....;)
Why would a split be nice?
 

garyt1957

Member
why would a split be nice ? today with 90% of every days trading high speed machine selling the belief that more small investors would buy a cheaper stock became pretty much irrelevant
Exactly. Individual investors are a blip on the market. And if you can buy 10 shares at $100 you can buy one share at $1000. Makes no difference.
 

Phoenix

Senior Member
Location
U S
October is always the time of reckoning for the stock market. If things are going to crash they usually do it then. Be careful for the rest of this month and for the month of October. Plus things are iffy because of the impending elections. That affects things.
 

tbeltrans

Member
When hearing or reading people discuss what the market will do in the future, how long a particular trend will last, etc., it reminds me of people betting in Las Vegas. My wife and I went to Las Vegas a number of times back in the 1980s when she was a programmer for a travel agency owned by one of the airlines so that she got the same travel deals as airline employees. We were able to fly to Las Vegas for $20 round trip. Neither of us is interested in gambling, but the fact that Las Vegas is a 24/7 town, we could go see interesting sites such as Bryce Canyon, the Grand Canyon, etc., and come back at all hours to find restaurants open.

In the hotel room (we stayed at a round building at the end of the downtown street with casinos), there was a TV channel that discussed how to gamble. I watched a bit of it and it always sounded very much like trying to predict the stock market.

One thing that I have always found disturbing about the stock market is that the word "fear" is ALWAYS used in the media. It doesn't matter if the market is doing well or not, investors always seem to fear something going wrong - a good trend ending, a bad trend not ending, etc.

I can honestly say that I have no idea what the market is going to do, but I can certainly guess if I studied trends and that sort of thing.

We decided to insulate ourselves as much as possible from the stock market when we set up our retirement. The tension is between being "safe" but possibly running short in the face of a future inflation, and losing serious money when it is most needed because the stock market is down when you need to cash in. We have done our best to balance that. As for financial advice, that is so individual that what seems right for us may not be the right thing for anybody else.

Edit: An interesting thing that I saw as my co-workers and I approached retirement age is that those who talked the talk as if they were "in the know", seemed the least financially ready to retire, and many are still working today. I never claimed special knowledge except to always spend less than I earn and never go into debt. I retired several years early.

Tony
 

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