Invest in Stock Market During Market Drop - Tips & Advice

[wolram]

My tip is pheasants, the rich guys love them, but i think may be you are to late.

 

[Andre]

My tip is pheasants, the rich guys love them, but i think may be you are to late.

The best thing to do, is buying next week financial news.

 

[bassplayer142]

Invest in alcohol. The more the market drops the more turn to the bottle.

 

[Zantra]

If you're rich, you have people that manage your money for you. I know people who invest and they're certainly not illiterate in what they're doing.

There are exceptions to every rule. I'm sure Bob down the street manages his $10K portfolio quite well, but I think perception counts, and someone who trades large sums of money as a means of making a living versus Bob using his vacation money to do some options trades is a no brainer. I'll take the guy with more to loose. And maybe his accoutant makes the trades, but that doesn't know he doesn't know where his money is invested. Also, wealthy people live off of their investments, so they tend to take their investments more seriously, so they consult experts in the finacial industry who may be unavailable to someone doesn't invest large sums of money. Of course this a generalization, and there are always exceptions, but it deos tend to be true..

If it's Bob or Warren Buffet, I'll take Mr. Buffet, thanks

 

[tribdog]

I'm thinking about dealing drugs. Pretty good return on investment.

 

[BobG]

I'm thinking about dealing drugs. Pretty good return on investment.

Plus they have a pretty good state run retirement plan. Not luxurious, but it's free room and board.

 

[Moonbear]

Who do they interview on the financial news programs, Rich people or poor people ?

How long have those rich people on the financial news programs been telling people that bonds are the "safe" investment, and put more of your funds into bonds if you're approaching retirement age and need to keep your investment more stable...lower returns, but lower risk? Do you think the people who had half their retirement money in those "low risk" Lehman bonds believe that advice was all that good now?

If I were rich and greedy, I'd be telling people to invest in whatever I was investing in...raise the prices of my stocks, then I'd sell, buy something else, and do it all over again. It doesn't make it a good investment, it just means you can make a lot of money tricking other people into making bad investments and then bailing out before everyone else figures out how bad it is. And guess what, that's exactly what the rich Wall Street sleeze resting comfortably in their golden parachutes were doing!

 

[BobG]

Does anyone else think e-trade is running their commercials with that baby a little past their expiration date?



Recent events seem to give a whole new reason for that kid to puke after buying stock on-line.

 

[Astronuc]

GEN ELECTRIC CO(NYSE: GE) Closed at $21.00 (after hours 20.85 -0.65 (-3.02%))

However if they make target and pay dividends, GE is attractive.

P/E (ttm): 9.77
EPS (ttm): 2.15
Annual Div & Yield: 1.24 (5.80%)


Watch this one. If GE Capital recovers quickly, they will grow with the economy.

 

[BobG]

Investing in necessity goods is safe but I don't think that will bring any big profits or will it?

If you want big profits, you have to take big risks ... in which case the auto companies are good buys. They can't go any lower ... unless they declare bankruptcy.

GM was at $43.20 on Oct 12, 2007. They're at $4.89 this week.
Ford was at $26.40 on Nov 18, 2005. They're at $2.17 this week.

If you were an employee at one of those companies and took advantage of their company savings plan (similar to a 401k, except you get GM stock or Ford stock instead of diversified investments), you'd be drunk right now.

You should have gone for it. GM was up 30% and Ford up 22% in just one day. If you were an employee at one of those companies and took advantage of their company savings plan, you'd be drunk right now.

 

[rootX]

You should have gone for it. GM was up 30% and Ford up 22% in just one day. If you were an employee at one of those companies and took advantage of their company savings plan, you'd be drunk right now.

Wow, I missed such a good opportunity! I should have bought some Asian American European shares last week
http://news.bbc.co.uk/2/hi/business/7666608.stm
http://news.bbc.co.uk/2/hi/south_asia/7666618.stm

I have lost one about Asian markets.

 

[Astronuc]

Railroads have been a good stock investment since 98 if you know what your doing.

NEW YORK (AP) --
Shares of some top railroads companies are down at 10 a.m.:
Burlington Northern (BNI) fell $3.47 or 4.2%, to $78.38.
CSX (CSX) fell $3.47 or 7.2%, to $44.67.
Canadian National (CNI) fell $2.28 or 5.4%, to $39.92.
Canadian Pacific (CP) fell $3.99 or 9.0%, to $40.28.
Kansas City Southern (KSU) fell $2.68 or 8.0%, to $30.75.
Norfolk Southern (NSC) fell $2.61 or 4.7%, to $52.72.
Union Pacific (UP) fell $4.08 or 6.5%, to $58.88.

Railroads move a lot of freight, particular grain, coal and intermodal, and they are generally provide a good indicator of several other market sectors. CSX and NSC shares almost doubled with the dot.com and tech bubbles burst.

Also GE is a good buy now:
P/E (ttm): 9.88 (most companies are more like 20+)
EPS (ttm): 2.036
Div & Yield: 1.24 (5.90%) good yield compared to most other stocks.

and Wells Fargo (WFC) didn't do as badly as expected.
http://biz.yahoo.com/rb/081015/business_us_wellsfargo.html

NEW YORK (Reuters) - Wells Fargo & Co (NYSE:WFC - News), whose planned purchase of Wachovia Corp (NYSE:WB - News) will create the largest U.S. retail branch banking network, said on Wednesday third-quarter profit fell 25 percent, hurt by higher credit losses and investment write-downs.

Net income dropped to $1.64 billion, or 49 cents per share, from $2.17 billion, or 64 cents, a year earlier, the fourth straight quarterly decline. Revenue rose 5 percent to $10.38 billion, while expenses fell 3 percent.
. . . .
San Francisco-based Wells Fargo was able to wrest Wachovia from the arms of Citigroup Inc with a $15.1 billion all-stock takeover, largely because it never dove deeply into the risky mortgages and exotic debt that strangled Wachovia and rivals such as Washington Mutual Inc, Countrywide Financial Corp and IndyMac Bancorp Inc. . . . .

But one must do the research before investing. Look at balance sheets and fundamentals, e.g. sector, market share, long term strategy of management.

 

[rootX]

http://money.cnn.com/2008/10/17/news/economy/buffett_op_ed/index.htm?postversion=2008101709

Buffett: I'm buying stocks

 

[Danger]

I haven't had a chance to read this thread, but I'll mention that the advisor on Canada AM said that you can't go wrong with established food manufacturers such as Kellogs, General Foods, etc..
Personally, I'd rather have a good GIC or Canada Savings Bond. (Right now, though, I'd settle for having more than a couple of hundred bucks in my savings account.)

 

[kronon]

I heard that the market value of the dinky toy-car manufacturer Mattel is now greater than that of General Motors.

And buying bankruptcy protection is cheaper on McDonalds than the US govt.

Some strange dislocations out there.

 

[russ_watters]

Well, the value of a company is based largely on their assets, their ability to make money, and their debt. A company like GM might have a lot of assets, but their ability to make money is not very good right now and their debt is sky high. That equates to low stock value.

 

[Moonbear]

I just think that if you're riding on the stock market right now, you better take some anti-nausea medication...it's one BUMPY roller coaster!

My boyfriend has been in Japan for the past week, and that's the big question everyone there is asking, how is the economy in the US? He said he draws a series of up and down arrows and says, "Today, Tomorrow, the next day, etc." then tells them, "If you want to know how it'll look next week, turn the drawing over." (I don't know if he really did this or was exaggerating his story for humor value, but I thought it was a pretty good summary.)

 

[misgfool]

Only question here is that, what is the direction of the real economy. Stock prices are low at the moment. But in a few years scope buying any relatively large company with P/E < 10 is a good guess.

 

[OmCheeto]

I heard that the market value of the dinky toy-car manufacturer Mattel is now greater than that of General Motors.

And buying bankruptcy protection is cheaper on McDonalds than the US govt.

Some strange dislocations out there.

Hard to believe. But it's true.

10/31/2008
Mattel: Mkt Cap: $5.38 billion, up 7.9%
GM: Mkt Cap: $3.28 billion, down 4.6%

Maybe Mattel should buy GM.

After all, they've been stealing detroits design ideas for years. They might as well own them.

 

[Vanadium 50]

I'm going to take a contrary position here.

First, you have to decide if you are gambling or investing. The strategies are different. Nothing wrong with gambling - the problem is when you are gambling and think you are investing.

Second, your question should not be "which stocks do I buy?" It should be "how much do I have to invest every month, and what fraction of that should be in stocks". If you can't afford to invest every month, I suspect that the right investment is a savings account. If you need the money soon (some say 5 years, I would say 10), I would not put it in stocks.

Third, it doesn't matter if you buy stock when it's moving up or down. All that matters is the price when you buy it and the price where you sell it. Good thing too - analysts make good money trying to figure out the top and the bottom of the market, and frankly, they aren't very successful. Amateurs like you and me would be expected to do worse than professionals.

Finally, I am a big fan of index funds. They have lower fees than managed funds, and you're automatically diversified and have less volatility than individual stocks. The central limit theorem is a beautiful thing.

 

[Evo]

Cronxeh, please refrain from posting actual companies to invest in.

 

[cronxeh]

Well that is odd. I thought we were talking stock picks. What do stocks have to do with companies? Besides the ETFs I posted are not company stocks they are a basket of company stocks. Anyway seems pointless