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sophia
Wednesday, January 23rd, 2008, 07:29 PM
Anyone want to make a lighthearted (and alas fantasy) wager as to when the best time to buy on the stock markets will be?
Honestly, Eastenders VS Markets, can anyone understand why someone would find the former more indrawing? I end up watching the FTSE like a soap because "ooh what will happen next". Real soaps are much less intriguing.

Jäger
Wednesday, January 23rd, 2008, 09:09 PM
I think the market will go down untill the middle of this year, the FED will either try to inlfate or deflate (I think deflation), how far this will go, only the plutogarchs know.

olen
Wednesday, January 23rd, 2008, 10:24 PM
When the Dow and S&P go to zero would be a good time to buy. :D

SwordOfTheVistula
Thursday, January 24th, 2008, 08:45 AM
They will probably be stagnant or trend downwards through the rest of the year, and next year rebound

Dr. Solar Wolff
Friday, January 25th, 2008, 06:10 AM
A friend's brother publishes something called a market timer. He advises people when to buy and when to sell. I don't pay a bit of attention. A guy once said that the best method to buy and sell is never to try to hit the high and low points. His reasoning was that most times, you will fail and regret your move. Rather than this, he said, plan to buy when the market is just starting an upward trend instead of timing the low point. Also, he said to sell after the peak, just on the downside. Using his method you will never really maximize gains but you should make money, be right on the trend curve, and not regret your moves.

Neophyte
Friday, January 25th, 2008, 06:31 AM
The classic question/statement: "But where are the customers' yachts?" ;)

Selling financial advice is often far more profitable than following it.

Phlegethon
Friday, January 25th, 2008, 06:59 AM
The Fed is pushing measures leading to a potential hyperinflation, which will in consequence spread throughout those countries having invested there. I assume it's still a good time to invest in gold.

sophia
Friday, January 25th, 2008, 07:29 AM
I've never actually yet bought things on the stock market, I just like watching it because I find it interesting.
Of course I would agree that actually trying to hit a low point won't work. I think the best thing to do is previously research (a) company(ies) you want to invest in anyway, not speculate on, but just invest in because you rate that or those companies but then wait until the stocks of that company are very cheap (which still has the element of gambling because "can it go cheaper?") but just be realistic about what value you think it has compared to the selling price and if you buy at any point when its selling price is below its value then no matter how much of a stupid "if I got this tomorrow I could have got twice as much" mistake you made you are still doing better than you would have if you'd done nothing.

But again, I don't know because I've never done it, I just find it interesting.

The Horned God
Friday, January 25th, 2008, 07:42 AM
Don't buy individual stocks, it's too risky.Instead save up your ten grand (or whatever it is) and buy into a mutual fund.

As the Oasis song says; "Nobody knows, yeah, nobody knooows, the way it's gonna be." ;)

sophia
Friday, January 25th, 2008, 07:46 AM
Don't buy individual stocks, it's too risky.Instead save up your ten grand (or whatever it is) and buy into a mutual fund.

As the Oasis song says; "Nobody knows, yeah, nobody knooows, the way it's gonna be." ;)

It will take me a while to save up 10 grand.
What if you know the company well though, is it still bad to buy individual stocks then?

The Horned God
Friday, January 25th, 2008, 08:23 AM
It will take me a while to save up 10 grand.
What if you know the company well though, is it still bad to buy individual stocks then?

I'm not an expert so caveat emptor . But an expert will tell you that it's probably not a good idea if that company represents more than at most 1% of your total portfolio and that's assuming the rest of your portfolio is highly diversified across at least a few hundred companies in multiple market sectors.

You can be sure that even the managing director of Coca Cola hasn't more than a few percent at most of his money in Coca Cola shares. For one thing if he needs to take his money out and coca cola is having a bad year or a bad few years, what's he going to do then? Take his money out at a low point? No thanks. He'll be well diversified and able to choose shares from a part of his portfolio where he won't lose by selling them.

If you are a with a mutual fund you can't do this exactly, but the fund managers will be able to advise you what to do depending on your situation.

Now imagine you were investing on your own say 10 or 15 years ago, and you put most or all of your money in say, Enron, just before it went bankrupt? Or you'd invested in Barings Bank before the Nick Leeson scandal or in Northern Rock last year!?

If one of those companies I mentioned had represented only 10% of your portfolio then the rest of your investments might not make up the difference in what you would have had if you'd just kept your money safe in the bank.

SwordOfTheVistula
Friday, January 25th, 2008, 08:36 AM
What if you know the company well though, is it still bad to buy individual stocks then?

Not at all


Don't buy individual stocks, it's too risky.Instead save up your ten grand (or whatever it is) and buy into a mutual fund.

Absolutely wrong. The fees the mutual fund collects more than negates any advantage to investing with them.


The best way is to invest is on your own in a variety of individual stocks you select.

The Horned God
Friday, January 25th, 2008, 08:47 AM
Absolutely wrong. The fees the mutual fund collects more than negates any advantage to investing with them.

Well then a lot of people are wasting their money! The fact is a mutual fund will beat keeping your money in a bank and is a safe investment for the long term.



The best way is to invest is on your own in a variety of individual stocks you select.

Individual stocks are higher-risk higher-return than a mutual fund, which is fine as long as you don't forget about the "higher-risk" part. If one of your companies goes bust or is mismanaged... well hard luck. It's not recommended for the small investor or the beginning investor.
Some people also say Investing in individual stocks is more exciting than investing in mutual funds;They're the people who like ulcers. ;)

SwordOfTheVistula
Friday, January 25th, 2008, 09:09 AM
Some people also say Investing in individual stocks is more exciting than investing in mutual funds;They're the people who like ulcers. ;)

The solution is to invest in multiple stocks on your own accord.

Jäger
Friday, January 25th, 2008, 10:37 AM
The solution is to invest in multiple stocks on your own accord.
Or try indexed funds (ETFs), they have almost no fees. And the ones from India and China sky rocketed last year, ya, good that we support other countries/companies by destroying ours as long as we can make a buck out of it :)

The Horned God
Friday, January 25th, 2008, 10:38 AM
The solution is to invest in multiple stocks on your own accord.

If by multiple, you mean at least 200 well established companies (GE, Coca Cola etc) spread across several sectors, and staying away from the volatile sectors like Information technology or alternative energy, and be prepared to hold them long term, that might work.

Most people can't afford to invest the necessary amount of money or time it would take to develop a well-diversified (read secure) portfolio, outside of investing in a mutual fund.

If you don't mind a few sleepless nights thinking about market fluctuations or the price of sugar cane, then good luck to you, you might be better off financially for it, then again you might not. Personally, I have enough other things to worry about.

sophia
Sunday, January 27th, 2008, 06:36 PM
Maybe from a purely financial POV, but for me personally I would want to have more control in what I invest in to avoid moral and other similar hazards.

Mazorquero
Sunday, January 27th, 2008, 07:00 PM
If you want an advice, I'd buy some actions from oil industries, like Shell, and then let Bush make the fuel prices go up;)