stock market was up today...

#13,951
#13,951
Jax_Vol said:
Suggest putting at least 50% in PLSAX. If you're life expectancy is still 20+ year, the market is going to go up.

The remainder you mix depending on your risk tolerance.

Large Cap Growth probably for 20-25%

Midcap for 10-15%

Principal Cap App probably 10%

All you really need are 4-5 funds. Then, just forget about them as best possible. Check them 3 times a year, Easter, Labor Day, Christmas.
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PLSAX actually looks pretty dang good man. Wish i had put my 401k mostly into this instead of the moneymarket fund. Couple questions for the group:

How bad of a beating do yall think the market will take next year with a major correction looming according to the articles i have read anyway?

If i were to put half my $ in this fund..what would be a safe place to put the other half? Gold? Or maybe Bonds? I dont know a good product to specify for either of those honestly...maybe yall have some suggestions.
 
#13,953
#13,953
Jax_Vol said:
Before jumping into an individual stock, I suggest trying a more aggressive mutual fund. That provides more of the ups and downs to see what your stomach can tolerate.

If you wish to say, which brokage firm do you use?
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I'll take the counter argument to this: The bad thing about mutual funds (And I would go with a market ETF rather than a mutual since they are more 'liquid'), is that they are easy to set and forget. That is both good and bad, but if you are using this particular purchase to 'learn' about the market, I think funds can do a disservice in that you don't watch them as much because a big basket of stocks is too hard to follow. (A lot of funds have 1-2% of their holdings as their largest position). I would recommend looking at something maybe in the Dow 30 for a start. Look at something Warren Buffet owns. Yeah they won't be sexy, and are not going to run up 80% in a year, but they also won't drop like a stone either, and most of the stocks WB owns pay dividends.

If @marcusluvsvols uses something like Interactive Brokers, he can buy and sell from his couch and they have incredible low fees. Something like TD Ameritrade probably has more support though and they also have more learning resources.
 
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#13,954
#13,954
marcusluvsvols said:
PLSAX actually looks pretty dang good man. Wish i had put my 401k mostly into this instead of the moneymarket fund. Couple questions for the group:

How bad of a beating do yall think the market will take next year with a major correction looming according to the articles i have read anyway?

If i were to put half my $ in this fund..what would be a safe place to put the other half? Gold? Or maybe Bonds? I dont know a good product to specify for either of those honestly...maybe yall have some suggestions.
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Gold is a waste of time. Young people are not interested in it and I personally think long term it is going to die as the 'go-to' investment when times get tough. (jmho, dyodd though)

Bonds are getting better but you are too young to get bound up with them for a long time. Just for reference though I am attaching a screenshot of the most recent Treasury Bill auction though to show that if one wants to park cash in something besides a crappy money market, getting 5% right now is doable pretty easily. I have been buying/laddering 4 and 8 week T-Bills with my laying around cash rather than getting a lousy rate from the credit union. If you are interested, treasurydirect.gov

As far as next year's returns is anyone's guess. I think the fed is afraid to raise rates too much and that might give the economy enough time to consolidate and recover from the Biden black eye. I think caution is warranted absolutely. I have been a very active options trader for the last few years, and I have scaled waaaaaaaaay back because of Puddinhead's economy. Under Trump, the options market was a money printing machine.

Just my $.02Screenshot (536).jpg
 
#13,955
#13,955
SpaceCoastVol said:
Just for reference though I am attaching a screenshot of the most recent Treasury Bill auction though to show that if one wants to park cash in something besides a crappy money market, getting 5% right now is doable pretty easily.
Click to expand...
Fidelity's money market is currently 4.74%, and I'm sure it is similar elsewhere.
 
#13,956
#13,956
SpaceCoastVol said:
I'll take the counter argument to this: The bad thing about mutual funds (And I would go with a market ETF rather than a mutual since they are more 'liquid'), is that they are easy to set and forget. That is both good and bad, but if you are using this particular purchase to 'learn' about the market, I think funds can do a disservice in that you don't watch them as much because a big basket of stocks is too hard to follow. (A lot of funds have 1-2% of their holdings as their largest position). I would recommend looking at something maybe in the Dow 30 for a start. Look at something Warren Buffet owns. Yeah they won't be sexy, and are not going to run up 80% in a year, but they also won't drop like a stone either, and most of the stocks WB owns pay dividends.

If @marcusluvsvols uses something like Interactive Brokers, he can buy and sell from his couch and they have incredible low fees. Something like TD Ameritrade probably has more support though and they also have more learning resources.
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You are right.

I may have misread Marcus message, but didn't get the impression he is wanting to learn the market.

If someone has low-mid wall street savvy, then a low cost index fund invested in FAANG plus Microsoft is a solid selection. But, you are correct in stating that isn't the best way to gain deep knowledge of trading.
 
#13,957
#13,957
DJIA is a good idea and it can be owned via the DIA ETF. The “I” does stand for “Industrials” after all and the trend is going to be America First for an extended period of time. Granted, there are several service and financial names now in the DJIA (CRM, AXP, GS, JPM, TRV, UNH, V) - but even those names support the manufacturing base. The 30 components really don’t have any horrible stocks (DIS?) and the worst are rotated out periodically. There is diversification missing in company size though. They are all large companies which can limit their growth. But they can also generate a lot of cash to pay out as dividends and to repurchase shares when they become unreasonably oversold.

The SPY and QQQ funds have about 500 and 100 components so that means the funds will also own several mediocre stocks. And just a handful of stocks can distort the results (AAPL, MSFT, AMZN, NVDA, GOOGL, TSLA, META - The Magnificent 7) but those are the names to own for the next couple of decades.

Schwab is a good place to have self directed accounts. They have the resources to provide unlimited, free advice. AmeriTrade will soon be fully integrated with Schwab. Interactive Brokers caters to more of an experienced clientele.

If it is too intimidating it might be worth paying 1% to a local Edward Jones, Raymond James, or Ameriprise office for an advisor. They’ll evaluate your risk tolerance and setup an appropriate portfolio. But most likely they’ll simply put the customer into S&P 500 based mutual funds with a percentage in growth, fixed income, bond, and value funds. The fee gets you somebody to talk you off of the ledge when investments have the pullbacks that will always regularly come around. Equity markets are not the place to be if panic selling ensues with every poorly performing couple of months. Selling low is not how it works.
 
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#13,959
#13,959
SpaceCoastVol said:
Gold is a waste of time. Young people are not interested in it and I personally think long term it is going to die as the 'go-to' investment when times get tough. (jmho, dyodd though)

Bonds are getting better but you are too young to get bound up with them for a long time. Just for reference though I am attaching a screenshot of the most recent Treasury Bill auction though to show that if one wants to park cash in something besides a crappy money market, getting 5% right now is doable pretty easily. I have been buying/laddering 4 and 8 week T-Bills with my laying around cash rather than getting a lousy rate from the credit union. If you are interested, treasurydirect.gov

As far as next year's returns is anyone's guess. I think the fed is afraid to raise rates too much and that might give the economy enough time to consolidate and recover from the Biden black eye. I think caution is warranted absolutely. I have been a very active options trader for the last few years, and I have scaled waaaaaaaaay back because of Puddinhead's economy. Under Trump, the options market was a money printing machine.

Just my $.02View attachment 563442
Click to expand...

Gold will have some support as a handful of countries peg their currencies to it and are buyers. But long term, like undeveloped land, it will underperform since it does not generate any revenue.
 
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#13,962
#13,962
Vol737 said:
Well, that'll just about do it for the VZ discussion. We'll see where this lead cable issue goes, but I would expect it to weigh on the sector for a while.

Verizon Communications Inc. (VZ) Stock Price, News, Quote & History - Yahoo Finance

AT&T, Verizon stocks plunge as concerns mount over lead cables
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I’ll bet that China has supplied a lot of that wire. Our government and civil lawyers will go after the Verizons and AT&Ts and Frontier Communications, but will anybody make China cough up for any damages? And if they did would China ever pay a dime?
 
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#13,963
#13,963
Thunder Good-Oil said:
I’ll bet that China has supplied a lot of that wire. Our government and civil lawyers will go after the Verizons and AT&Ts and Frontier Communications, but will anybody make China cough up for any damages? And if they did would China ever pay a dime?
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Nope, Nada and Zilch.
 
#13,966
#13,966
Thunder Good-Oil said:
I’ll bet that China has supplied a lot of that wire. Our government and civil lawyers will go after the Verizons and AT&Ts and Frontier Communications, but will anybody make China cough up for any damages? And if they did would China ever pay a dime?
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Go after China, the nation? Or the manufacturers who sold it?
 
#13,969
#13,969
#13,972
#13,972
#13,973
#13,973
BigOrangeMojo said:
You know Secure 2.0 was approved by Senate 68-29, right?

And Roth is rarely a bad idea. A person who is 50 and makes 9% annually on their $7K catchup contribution will have $28K when if they retire at 66. That's $28K that will never be subject to tax....

But yeah, gripe on...
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Except on the front end now. From a “keep it simple” standpoint, I would like to keep my catch up contributions as is, tax deferred and pay that tax later as I will likely be taking less income when I retire. Congress was just looking to take a bump up in tax revenue now. Now, It does create a huge expense and some scrambling for companies to set up the Roth options/vehicles for employees to contribute the catch up contributions. Not really wrapped around the axle over it as there are advantages to both. I just see it as a first salvo toward collecting tax on the front end of every investment vehicle for workers, potentially. We have both Roth 401k and traditional available to participate in at work. Some have ceased traditional and gone with Roth. Advantage to one or the other may depend on RMDs going forward if they increase that number significantly on the traditional 401k.
 
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#13,974
#13,974
Vol737 said:
Except on the front end now. From a “keep it simple” standpoint, I would like to keep my catch up contributions as is, tax deferred and pay that tax later as I will likely be taking less income when I retire. Congress was just looking to take a bump up in tax revenue now. Now, It does create a huge expense and some scrambling for companies to set up the Roth options/vehicles for employees to contribute the catch up contributions. Not really wrapped around the axle over it as there are advantages to both. I just see it as a first salvo toward collecting tax on the front end of every investment vehicle for workers, potentially.
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I agree there are some administrative issues but this clearly isn't a D attempt to screw over taxpayers, which is what was implied. There are new provisions to increase catchup amounts as well as converting unused 529 plans to Roth IRAs. These are taxpayer friendly provisions, for sure.

Lots of advantages other than permanent tax referral for Roths. I agree if you are 64 and you are in highest bracket in NYC, a traditional 401k may be better but in most circumstances, the 50 year old making $150K in TN will benefit more from Roth.....
 
#13,975
#13,975
Just want to say thanks guys. Appreciate yall using a few mins of your free time to help me figure this stuff out over the last decade. Flying blind with my lifelong savings (albeit modest) is both stressful and stupid. I read about these things but i cannot trust nearly anything I read . Honestly i put more stock in what yall say than what "experts" are trying to push online.
 
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