posted
Seriously thinking about doing down to BOA and starting up a roth IRA...... I wish I could afford to do that and bump up my 401k.
This is a good lesson for me though....
The next time the DOW gets within 5% of a peak I am gonna start cutting my discretionary spending and start putting the excess into an account so when the bear market comes back around I'll be able to capitalize even more.
Its such a toss up though....
There are so many houses in atlanta going for less than $40k....... but rents aint dropping. If I can get qualified with 15% down and then rent it out...... it would almost be like getting free property.
Damn capitalism
-------------------- 92 caprice wagon "think for a minute about how stupid the average person is.... and remember that half are dumber than that" Posts: 4216 | From: ga | Registered: Oct 2001
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try going out to a bunch that are up for 40k, and offer 25-30k. the agent HAS to show them your offer, now matter how low (even if you offer a pair of skittles). They'll probably laugh or say FU... BUT if you offer it enough, you're bound to get someone to accept. it doesn't take much time either. Don't worry about sitting down calculating and calculating... just do this and let them think.
and thats a good point about rent. getting the loan would be the only iffy part, since they're being so stingy because the huge recession. except for that sounds like a plan.
I don't recommend investing in markets now. The best (basically no risk, but huge returns) thing to do is invest in real property, like you mentioned.
quote:Originally posted by Iconoclast: I don't recommend investing in markets now.
Why not? As undervalued as everything is, you can get some great stocks for next to nothing and make a killing when the market comes back up.
I remember reading that even through the Great Depression and the Black Tuesdays the stock market still averages a 12% ROI. You can't get that at any bank in a savings account.
-------------------- '06 Milan Head: Stock/Sansa e260R (looking for connection) Front: Stock Rear: Stock Sub: None Amp: None
posted
Look, the Dow isnt dropping much further than this.
Right now is a great time to buy some good performers, sit on them, and when it bounces back to 11-12k youve just made a huge return.
The same goes with property, yes you can buy cheap and cant sell for ****, but when that market bounces back woohoo!
-------------------- 15" Fi SSD *copper coil* Hifonics BXI1206D @ 1ohm 3.75ft^3 box (thanks AZ_SS) with 33 OR 46 hz tune Optima 34 Red Top Big 3
142.5 Db's Outlaw 3rd place first ever competition. Player started skippin 5 seconds in... who knows if its louder. Well see next time :/ Posts: 481 | From: Az | Registered: Oct 2006
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posted
dropped 200 more points so far today..... so much for your "Look, the Dow isnt dropping much further than this." statement.
Posts: 8924 | From: over yonder | Registered: May 2001
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posted
^^^ x2 (as of this post, it was down ~350 points, or about 4%)
unless someone has divine knowledge that the stocks won't go any lower, its not a very good idea to invest in stocks.
stocks can turn worthless very quick. Tangible stuff, such as property that you own alone... that ish just can't disappear. Even if the market completely crashes... you got a hell of a deal on some property (especially considering you got it while money was worth something- you got land and stuck someone with worthless cash), and you still own it.
posted
I tend to agree with notloud enough and Bob.......
True you dont know for certain how low its going to go........
But I bet I can paint a picture of whats happening right now better than most.......
Imagine this scenario......
Millions of financially illiterate people around the world have seen their 401ks and Ira loose 30% of their value in a couple of weeks...... They have been contributing to this damn thing for 20+ years and now their entire retirement appears to be at risk. They dont know how the stock market works which makes them even more scared.
They are scared sh1tless and skeptical of the markets...... they are also ignorant to the fact that Notloudenuf brought up...... which BTW is absolutely true. That over ANY 20 year average the stock market has never once not returned atleast 12% returns. Great depression, black monday...... doesnt matter.
So what these people are doing....... And believe me I know alot of people personally that are doing this.......
They are taking money out of any kind of stocks and sticking them into savings accounts..... Some people are even converting large amounts into cash and then putting the money in a safe.
What this is doing is taking ALOT of captial from businesses and also price out of the value of markets world wide........ which in turn is making the markets undervalued....... which in turn scares even financially ignorant people off.
What I'm gonna do is take about $3k of the almost $10k I got saved up in my "cushion fund" and I am gonna go spread it out over a couple of different indexes...... probably even a couple of foreign indexes cause they are getting the worst of it right now. Then I'll start putting in as much as I can afford per month into the markets until I have enough to cash out and actually finance/buy an asset that can actually create income.
Cause the truth is........ If the markets go anyfurther. Money is going to become worthless anyways and society is going to implode on itself and go back to a barter system and the guns I own are going to be the most valuable assets I have (nothing like a tool that can get you anything )....... nothing quite like having all your bases covered huh??
But I also have to admit that I am very bullish 90% of the time. So maybe my veiw is once again a little slanted.
-------------------- 92 caprice wagon "think for a minute about how stupid the average person is.... and remember that half are dumber than that" Posts: 4216 | From: ga | Registered: Oct 2001
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posted
you said money may be worthless anyway in a worst-case scenario... what I'm saying is, in that same scenario, stocks would be worthless as well. but land wouldn't be
but yeah, if you are like most people and don't have enough cash to buy land outright, or make a good downpayment, then there are some stocks that have definately gone down because of fear, instead of performance. and, while they will go down before they go back up, they aren't likely to collapse, and will all but certainyl go back up. perhaps within a year or two. and if thats the case, you could get a nice 30%+ percent return over the next 2 years or less.
you are being ignorant because you were wrong about the economy. You were wrong because you said... this "shouldn't happen" just like you may make a poor decision now because things "should" do this or that. What makes that ignorant is that you are willingly ignoring the fact that it doesn't have to make sense. You have to judge based on those stupid people you talk about, not about what smart people "should" do.
you're thinking about bringing real money into this... just think about it first.
although, personally, I think it will stop somewhere in the 7k range, despite how fast its declining. Stocks are being sold so much that the stock values are in some cases approaching the capital asset value... theoretically (well, logically), it can never reach that point. although, that still assumes people aren't too dumb to figure that out.
I think the market will go back up and recover... BUT I'm worried at how fast it will recover. it may go up so fast that within a couple weeks or months, it overheats and causes a true depression, which would make this recession look like nothing.
posted
The maket is crazy. If I had the exact same stocks last month as these month I would have about 7 million in one of my small accounts. However its only worth 57K s of today.
-------------------- My 45's want fit in that slot! Posts: 1147 | From: Rowlett, TX, USA | Registered: Jun 2000
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If you ain't down with the Iggster and his sounds, I got 2 words for ya: Bass Race Posts: 5951 | From: If you have to ask, youll never know | Registered: Feb 2005
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quote:Originally posted by Iconoclast: you said money may be worthless anyway in a worst-case scenario... what I'm saying is, in that same scenario, stocks would be worthless as well. but land wouldn't be
I was joking about the money becoming worthless part.....
Thats not going to happen..... Technically money is already worthless...... Peoples perception of value is the only thing that makes it worth something.
As long as the government demands money to pay taxes for the property you own and can forcefully take it away from you when not paid........ Money is going to be worth A LOT.
quote:Originally posted by Iconoclast:
but yeah, if you are like most people and don't have enough cash to buy land outright, or make a good downpayment, then there are some stocks that have definately gone down because of fear, instead of performance. and, while they will go down before they go back up, they aren't likely to collapse, and will all but certainyl go back up. perhaps within a year or two. and if thats the case, you could get a nice 30%+ percent return over the next 2 years or less.
A value investor wouldn't hold stock for less than 2 years anyway...... 2 years is the minimum.
Thats why everyone is getting scared. They are looking at what should be a long term investment with a short term window.
30% in 2 years would be great.... but more than doubling their investment over a 10 year span should be their goal.
-------------------- 92 caprice wagon "think for a minute about how stupid the average person is.... and remember that half are dumber than that" Posts: 4216 | From: ga | Registered: Oct 2001
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quote:Originally posted by Iconoclast: and this needs to be said...
you are being ignorant because you were wrong about the economy. You were wrong because you said... this "shouldn't happen" just like you may make a poor decision now because things "should" do this or that. What makes that ignorant is that you are willingly ignoring the fact that it doesn't have to make sense. You have to judge based on those stupid people you talk about, not about what smart people "should" do.
Your taking what I mean out of context..... I'm talking about the social engineering caused by our own government that has caused this whole thing to happen.
When I say that this shouldn't have happened.... I mean that the government shouldn't have removed or changed or added policies that encouraged or forced banks to loan money to people for the sole purpose of putting more minorities and low income people into houses they couldn't actually afford.
I'm talking about the commercial banks and investment banks melting together thanks to Socialist democrats (Clinton and Carter) and abuses of the fair housing act in conjuntion with The community reinvestment act that have caused this whole damn problem.
The free market can't be fully understood or explained..... but the government fuking with it is unnessecary and causes great harm to the system......... Our current situation is a direct result of that. Do you think banks would have loaned their own money to people that they knew werent going to pay them back????? Do you think they would have done it all on their own without being forced too?
quote:Originally posted by Iconoclast: you're thinking about bringing real money into this... just think about it first.
although, personally, I think it will stop somewhere in the 7k range, despite how fast its declining. Stocks are being sold so much that the stock values are in some cases approaching the capital asset value... theoretically (well, logically), it can never reach that point. although, that still assumes people aren't too dumb to figure that out.
The point of investing is to grow your money and increase its value...... but a value investors 1st goal is to not lose value...... If you invest in something that has little to no downside potential that means it only has upside potential.
The closer the price of stock gets to a companies capital assets value the closer you are getting to the floor....... & the closer you are getting to a guarantee that the price can't go any lower........ As long as the business still can create cash flow and as long as the business is needed then the business has no where to go but up. Making killer returns is great....... but I would rather my stock hold value or gain value by buying at the correct time rather than buying at a random price and speculating that the price is going to go up out of tandem with the intrinsic value of the company.
-------------------- 92 caprice wagon "think for a minute about how stupid the average person is.... and remember that half are dumber than that" Posts: 4216 | From: ga | Registered: Oct 2001
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posted
Has anyone heard anything new about the proposed GM / Chrysler merger? If it comes to fruition, that might be a stock to purchase while GM stock is still below $6.00 a share.
I remember when the tech bubble burst. M$ and HP were both dirt cheap, Apple was almost pennies on the dollar. People who could invest did, knowing that big firms like that were not going anywhere and they made a killing.
I'm not sure if I have the guts to invest in anything at the moment. We're getting 3% on our savings account and 4.5% on our CD through ING Direct. Pretty good by Savings / Checking standards, but as was mentioned above, not 10% or higher. Just not sure if I'm willing to put money that could go towards saving for a new house and my son's college for stocks --- as tempting as it is to see a huge-ass ROI.
If you've got the means & the guts, then it may be the ideal time for you to do so. If you do, good luck
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