Jump to content

The market closed at a record high today


maddmaxx

Recommended Posts

5 minutes ago, smudge said:

My 401k has made amazing gains this year. Gonna keep a close eye on it so I don't lose a bunch.

Normally, funds have professional managers that take precautions against wild fluctuations in value of the portfolio. The cost of this type of security is reduced returns relative to a more speculative approach to making money. 

Link to comment
Share on other sites

I made my first mutual fund investment in many years yesterday. I have a lot of mutual funds in my retirement accounts, but my non retirement savings have been modest, but now I had some cash hanging around so I did it. 
 

Probably not the smartest timing, buying when stocks aren’t on sale, but my decisions tend to be based on my needs rather than market conditions.  
 

Two hunches I have (not studied, don’t ask for links). 
1) Large Corporations will do well in general in the global reset economy. (Some sectors will suffer - like travel and leisure in the Covid environment.)
2) Some of the stock market performance reflects a general weakening of the value of the dollar. 

Link to comment
Share on other sites

I didn't use to monitor portfolio daily ....now I do.  And in a way, I don't quite like this habit in myself. Partially because things are more heavily weighted in equities. 

2 hours ago, BuffJim said:

I made my first mutual fund investment in many years yesterday. I have a lot of mutual funds in my retirement accounts, but my non retirement savings have been modest, but now I had some cash hanging around so I did it. 
 

Probably not the smartest timing, buying when stocks aren’t on sale, but my decisions tend to be based on my needs rather than market conditions.  
 

Two hunches I have (not studied, don’t ask for links). 
1) Large Corporations will do well in general in the global reset economy. (Some sectors will suffer - like travel and leisure in the Covid environment.)
2) Some of the stock market performance reflects a general weakening of the value of the dollar. 

Canadian banks are sayin' in total Canadians are saving alot of cash...yea, well govn't bonds, fixed instruments have such lousy interest rates for past year.  And only Canadians who haven't lost their jobs due to covid restrictions impact.

On our side, the Canadian dollar is abit higher....the Bank of CAnada prefers to keep it weak, for the attraction of our exports in commodities, manufacturing...  CAnadian dollar has been weaker for a long time against the U.S. dollar and euro. 

Link to comment
Share on other sites

2 hours ago, bikeman564™ said:

Same, my return was 22 or 3% percent last year.  I'm rich...on paper.

Yep - it is dangling out there beyond my reach until I hit an age I can start making withdrawals (and I hope to delay that as long as possible).  Sadly, it's just enough time for two ill-timed crashes/big declines.  Seems every 10 yrs or so, so we're solidly in the window for the next one, and then another 10 from that shows me I have two icebergs on the horizon at least.

Link to comment
Share on other sites

15 minutes ago, Razors Edge said:

Yep - it is dangling out there beyond my reach until I hit an age I can start making withdrawals (and I hope to delay that as long as possible).  Sadly, it's just enough time for two ill-timed crashes/big declines.  Seems every 10 yrs or so, so we're solidly in the window for the next one, and then another 10 from that shows me I have two icebergs on the horizon at least.

Unfortunately you cannot delay an age.

Link to comment
Share on other sites

My retirement money is invested fairly conservatively because I hope I'm getting close to retirement.  This does dampen the upside in good times, but it should give me enough cushion that I don't need to sell during the middle of the "icebergs".   So far in history, the market has always rebounded from major crashes, although it may take some years. So as long as you don't have to sell during the down turn, the crashes should be survivable.  Of course you can't be too conservative because even low inflation causes a big impact over the course of a retirement.

  • Heart 1
Link to comment
Share on other sites

1 hour ago, Kirby said:

My retirement money is invested fairly conservatively because I hope I'm getting close to retirement.  This does dampen the upside in good times, but it should give me enough cushion that I don't need to sell during the middle of the "icebergs".   So far in history, the market has always rebounded from major crashes, although it may take some years. So as long as you don't have to sell during the down turn, the crashes should be survivable.  Of course you can't be too conservative because even low inflation causes a big impact over the course of a retirement.

Me too.  I keep about 2/3 of my liquid assets in stocks because my pension takes the place of what would be most of my bond portfolio - I basically keep enough in bonds and CD's to cover emergencies and expected expenses.

Almost all of my stocks are "Dividend Aristocrats" and other much-safer-than-average stocks that have long histories of stable growth and durable competitive advantages. Since the beginning of 2013, my stocks have averaged a 13.3% annual gain compared to 14.7 for the S&P 500 - both including dividends.  But I'm very happy with that, especially since the avg. P/E of my stocks was 20.0 at the beginning of 2014 compared to 18.0 for the S&P 500 and today my avg. P/E is 23.6 compared to 38.8 for the S&P 500.  Growth stocks, especially glamor stocks, are undergoing "irrational exuberance" and there's a tremendous risk of them not doing well at some point in the future.  My mostly value stocks are NOT in a bubble!

including General Mills  (hasn't lowered it's dividend since the 1800's - EIGHTeen hundreds!) and raised it 13 of the last 15 years, Emerson Electric (raised dividend 63 straight years), Abbott Labs and AbbVie (split in 2013, raised dividends for 48 straight years), AT&T (raised dividends 36 of last 37 years), Southwest Airlines (only private airline to show a profit 40 straight years until pandemic, turned down a $2.9 billion loan offer from Federal Government late last year, didn't need it), and some sector gorillas like Home Depot, CVS, and Amazon.

Link to comment
Share on other sites

Hmm.. when the crash occurred in March, I wondered what was going on because it was the first time I really paid attention to the market.  So things for me fell 19%.  Then back up to 49+% recovery... which means more accurately, 30+% rise.    Very true about the tech, and....renewables/alternative power, just more emotional insanity.  

In the province where I work/live, it is so real about the oil and gas  falling which for us, started several years locally before covid.  Now with Biden cancelling XKeystone pipeline some people up here are upset.  They should have known better not to promise jobs, etc.    Empty commerical/office leases for downtown are now 28% and they are projecting 30+%.  In previous decades, there have been equally serious dives, but the oil and gas economy roared back.  However, now in 21st century that's different...with just nearly little to drill and other technologies are very /more expensive extract.  We sucked up most the traditional drill oil dry in Alberta. 

So in my area, some homes have fallen by $75,000+ in market value...across the board.  

Then in Vancouver...life chugs along, maybe not as fast due to covid restrictions, but not as broken.  Port of VAncouver receives a ton of freighter ships with containers and they are lined up....Rail companies are fine.  Port of Vancouer is expanding, by building more ship berths, etc.

Prior to major dips in past, I didn't pay attention much because I was more conservatively invested (which doesn't make sense because I was younger with more time to be aggressive and wait out for stock cycles).  

 

 

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...