Re: Whither the markets?
We would need better Sales skills than that to entice Southie into investing in Pakistani market!
lol i dont think southie will ever invest, let alone pakistani market. All he's been doing is being negative rather than balanced. You need to spend millions to get millions, even in businesses. So dil bara hona chahiye, risk toh hoga.. :p
Re: Whither the markets?
lol i dont think southie will ever invest, let alone pakistani market. All he's been doing is being negative rather than balanced. ,.....
He is just being risk averse. Like investors should.
Re: Whither the markets?
^ and long-term too. Risk taking is for short-term investors.
Re: Whither the markets?
lol i dont think southie will ever invest, let alone pakistani market. All he's been doing is being negative rather than balanced. You need to spend millions to get millions, even in businesses. So dil bara hona chahiye, risk toh hoga.. :p
Warren Buffett has two rules for investors
Don't lose capital
Don't forget rule 1
You have made some outlandish statements. But this takes the cake. As a financial advisor that you claim to be, this is beyond ridiculous.
This post is neither balanced not negative. Just matter of fact.
Re: Whither the markets?
You guys should post a beginner's guide to anyone wanting to try all this out
Re: Whither the markets?
^ The only thing one shoukd know is know what one does not know.
Having an asset allocation in place is the first step.
Periodic rebalancing is the second step.
Using low cost index funds would work for most people. The fujds, after fees, beat around 80 pct of active fund managers.
We have some very knowledgeable people here - kakaballi queer sehshrish mr. Slims, player, OYMWA and others
Re: Whither the markets?
^ and long-term too. Risk taking is for short-term investors.
Even as a long term investor overpaying for assets can be risky.
Japan 1980s
Nasdaq 2000
2007 Financials (this one also had to do with not knowing what is in the financial statement)
Re: Whither the markets?
Warren Buffett is thrown around a lot. He did not make money ‘trading stock’. He made money backing and buying controlling interest in start-ups and smaller companies with potential . Now his money attracts more money.
Here’s a snippet from last three years:
2013: Warren Buffett ready for a stock market crash with a record $49bn in cash « ArabianMoney
2014: WARNING: Stocks Will Collapse by 50% in 2014
2015: Warning: Stocks Will Collapse by 50% in 2015
Re: Whither the markets?
Indeed he did that.
But let us not forget he has and or had huge positions in KO, PG, WFC and other big boys. In other words his stock picks didn’t too badly either.
His overall approach is essentially same as Benjamin Graham. Except he eased up on the price to book value metric.
Bottom line - he preaches not overpaying for a security. And being on top of financial statements. (In addition to ensuring company will be around for a while.
By don’t lose capital he means make sure u don’t overpay.
I would not use “trading” stocks - rather buying good stocks at good price. And holding on for long term.
Re: Whither the markets?
Wow. Thanks for taking so much time to respond. I will try to keep in mind whatever I understood. :)
You are welcome.
By the way, TS, when thread opened mkt was 1840 Feb 2014 close. Now 2055. So 11.6 pct plus 2 pct yield in 1 yr 20 days. Not bad. Around 12.6 pct annual gain.
Rebalancing was done here starting circa 1915 thru 2110..at an average of say 2010. That is abt 2.2 pct Below current levels. Not bad.
Re: Whither the markets?
After 3 weeks of losses the US Market roared back today, much like a Misbah counter attack. The Snp500 closed at 2081, about 1.7 pct Below the all time high of 2015 appprox.
Took the opportunity to lighten up a bit. Rebalancing never hurt nobody.
Re: Whither the markets?
Typo. All time high of 2115. Thank you #AlertReader](http://www.paklinks.com/gs/usertag.php?do=list&action=hash&hash=AlertReader)
Re: Whither the markets?
On Wednesday Mkt closed 2100. Did same..sold a bit.
On Friday Mkt closed 2108. Did same.
Stocks I think now at 58 pct. Cash 42 pct.
Re: Whither the markets?
Done with rebalancing.
Unless mkt knocks on door with opportunity
Re: Whither the markets?
At the close last Thursday the market had dropped 3 pct in 4 days. The biotechs especially took a hit. Promptly our favorite market seer Mr. Cramer warned us about biotechs. The next day market went up a bit. And explode up today.
By the way Mr. Cramer was Gung ho abt the mkt when it topped off recently at 2010 and the higher top earlier at 2017. On Thursday mkt closed at 2057.
Today it is back to 2086.
Will make no moves. If snp500 hits 2200 will take some off. That is rebalance.
Re: Whither the markets?
Today market down after explosive move up yesterday. Cramerica brought in his tech analysis who did Fibrin accident mumbo jumbo. And asked folks to get out of market. The pundit states - today the market Is 2 pct lower than her target range of 2117 to 2141.
Well mkt closed 2067. So 2.5 pct lower than 2117. And 3.6 pct lower than 2141.
Can someone help with the Math.
Re: Whither the markets?
Stock pickers market I think the emphasis will be value stocks as against growth stocks, had an amazing year last year with stock picking, Had purchased Fb at 18, sold early at 24, kicking myself, Best Buy at 12 sold at 15, Brp at 7 sold at 14, My biggest pick is apple but it is a 2 yr play, it trades at 7 times enterprise value if you back out the 150B in cash, I think politically US govt will limit samsungs growth and apple will venture into search, they will go after user experience and try to challenge Goog, banking sector should double in 3 yrs, I think s&p pe ratios are very reasonable right now and room to run. Since the economy is not running at full capacity there is a lot of room to run, Dow could hit the big 20 this year.
Spot on. Great call, hottie.
Re: Whither the markets?
Mkt closed 2008 - 0.45 pct off high. While the anticipated drop has not happened - if you discount the drop to 1824 circa Oct 2014 -,mkt has also not gone anywhere in a hurry. Returns for last 4 to 5 months have been flatter than ...
Re: Whither the markets?
The market is within 0.15 0ct of all time highs.
Will the number of views in this thread break through the resistance level - which is Nasdaq all time high of 5075.
Tike will tell.
Re: Whither the markets?
When thread opened, market was at 1870. Now 2090. Move of 220 points. Or 11.6 pct in 1.33 years. Plus div ykd of 2 pct per year or 2.66 pct total. Total return 14.26 pct in 1.33 years. Or about 10 pct per year.
The rebalancing strategy proposed would have worked out just fine. Had one simpky rebalncing as mkt climbed, one would have been fine.
Clearly my DECREASING the mkt allocation from 75 to 60 hasn't worked well YET. And may never if mkt trundle along for next few years. But no regrets raising some cash at high levels - not bubbilicious compared to 2000 though.