Well, you were partial right. The Greece drama knocked the market off its perch. For a very short time. It dropped to 2050. And bounced back up to 2108 Tuesday.
As has been the practice, I took some more off the table and moved to cash.
Job is not to predict where mkt will go as much as know what the valuation is, and take what the market gives you.
Hi guys, this is an interesting thread indeed my question is to guys who have had actual exp trading, Lets say a person invest in share for the long term , and if dividend % return is same as interest from bank - in his scenario which investment will yield a greater return in long tem (I tried calculating this in excel roughly no diff , actually interest from bank yields a little more…
I don’t trade, but invest for the long term. But your question does appear to be dire TedI’m towards long term investors. So here is my 2 cents.
When u say dig pct return is same as bank interest how can one be greater. I think you mean dividend yield.
If yield when purchased same as bank interest rate, u still need to state div growth rate. Some companies may slash dividends. Incomplete information provided.
Also not good to compare div yield with bank rate as the ONLY criterion. Bank deposits protected by fdic in us up to 200K. Stocks can go to 0. Or can go up. Div yld can be cut. Or increase steadily.
I didn’t know banks offer compound interest. The CDS I think are simple interest. I could be wrong.
Ok now I understand ur question. You brought up div reinvestment. So now you are not just talking dividends bu TOTAL return. That includes div appreciation reinvestment and capital gains.
There is no way to answer that. Depends on the stock valuation and fundamentals.
There is no way for me to say which direction market takes for next year. It is still up 2.9 times since 2009 lows. I wouldn’t call it a screaming buy.
I would stick to a rock solid asset allocation plan. And rebalance periodically.
Even if I rebalance now, I still need to continue rebalancing periodically.
Your assignment for this quarter is to read the “Whither the Markets” thread in its entirety. You will note that I have been rebalancing at various times.
Do you think crude has bottomed out? Am dipping my toes in Big Oil.