Absolutely. I’m 55 years old so I have to put money into drug stocks, bank stock, consumer staples and all that crap. If you’re under 30, it’s okay to swing for the fences and Tesla is a hanging curve ball.
Transportation is getting electrified and Tesla is 5-10 years ahead of all competition.
Autonomous driving is inevitable and, again, Tesla is ahead of the competition. Not sure by how much though. Probably a lot.
Tesla is in a position where they can raise whatever cash they need. They’re not going bankrupt before they become fully profitable. No company is a sure thing but Tesla is the closest thing to a sure thing we may ever see in our lifetimes.
LOL Never run smack on Warren. Just prior to the 2000 tech wreck I heard some fund manager on the radio being interviewed. Referring to his fund, he said something like “I’m driving a Lamborgini while Buffett’s driving a Ford Escort”. That guy was out of a job a few months later and Warren is still Warren.
How sure are you the recovery we’ve enjoyed is not just a suckers rally? There’s going to be a lot of bad news and dire economic consequences over the next few months. I think the chances are high the previous lows will be tested again,
Do you think it will last long or even long enough to really rise? What are the chances that a few weeks after the opening of the economy there is a second wave? There is no vaccine and due to the the lock downs a lot of people that have not been exposed.
@IronOne, I wish I shared your enthusiasm, but the fundamentals are bleak. Take look at the CBO’s projections…
Highlights:
The federal budget deficit is projected to be $3.7 trillion.
Federal debt held by the public is projected to be 101 percent of GDP by the end of the fiscal year.
the unemployment rate is projected to decline to 9.5 percent by the end of 2021
It’s hard to see demand picking up with unemployment so high for so long. In fact, just about everyone is expecting a period of deflation (essentially, the opposite of increasing demand) despite the Fed’s aggressive monetary and all the fiscal stimulus.
The Fed is buying billions of dollars in financial assets every day, so the stock market may very well remain elevated and disconnected from economic reality for quite a while. The real risk is creating an environment where companies that would otherwise fail are able to limp along because of government assistance - so much for free market capitalism. That’s not a recipe for strong returns. We could very well have another “lost decade” on our hands.
So I’ve read this entire thread, and realize I have no idea what’s what in the stock world. I knew this before I started reading but I can conclude I know less the more that I know.
On_edge - are you Elon? You’ve pretty much sold me on buying TSLA haha.
I’m 31 and I’m looking to put some money into the market that I wouldn’t touch until I retire or until I thought that I needed to take it out for whatever reason.
Currently I’m saving up to purchase a house (renting right now) so I need cash available for the right house if it becomes available, leaving say 10-20k of cash I can put into the market.
I’ve done the “research” on ETFs and thinking that this is the best bet for that, but with everything going on and with all that’s been said in this thread, I may try my luck with some short-mid term stocks.
Thanks for the info and dialogue everyone. Keep it coming
For the vast majority of people, it’s best to keep it simple. Invest 90% in the total US stock market and 10% in medium duration US treasuries. Add money on a regular basis, and re-balance quarterly. If you want less volatility (at the cost of lower overall returns), you can change the asset allocation to 80/20 or 70/30.
Vangaurd’s ETFs are great. Their total US stock market ETF is VTI and their intermediate term treasury ETF is VGIT.
Who knows on what happens with Covid-19. What I do know is people are getting really sick (ha!) of being held up in their homes and restrictions are easing.
If we open with proper measures in place, I think you’ll see an increase in cases but not enough to send us back home. I think there’s more immunity out there than we realize. Just my opinion.
I’m kicking myself for buying quite a bit sub 450 and selling when it hit 550.
I was going to guess you worked for an MDU, but not sure if they are S&P500.
There are a lot of conventional wisdom advice in here and that’s cool… but, I already have monthly allowances going to well balanced funds. I’m more interested in swinging for the fence on things right now. A couple of my picks that have made me quite a bit in the last 1 month are:
Domo - This has had a 70% swing this month
LH - This was so oversold. It’s also up 60% in last 60 days.
I sadly violated one of my rules and got attached to an oil stock and sold my LH too early to buy more.
Interesting to read how bullish most people on this thread are. I think stocks were probably 20% over-valued in Feb, but given the disastrous earnings outlook for this year at least, they look to me to be even more over-valued now. Of course it is possible that earnings will fully recover by year-end (although I very strongly doubt that) but even then valuations seem onerous.
If there’s no vaccine for another year or so, and some of the damage is long-lasting, then stocks seem way over-priced to me.
I’m also interested to see all the Tesla bulls! I’m a big fan of Elon Musk, but I’d bet on, for example Mercedes (6 times F1 world champions with a hybrid engine) or any of the other big manufacturers learning how to build electric powerplants to a high standard as quickly as Tesla learn to manufacture at global scale,which would make it frankly weird that Tesla has a higher market cap than Daimler or BMW.
I guess I’m on the fence overall - I’m not selling out, but I’m not planning to put any new money into the market for the next six months at least.
VGHAX is better, Vanguard always does better in the Admiral fund version, usually by more than a little. The ETF’s are flexible but come at a cost profit wise. Fidelity is a much better interface and much better at providing information up front, IMO.
AT&T? Nope. Weyerhauser is a better idea right now. This is a bounce. We are choppy through earnuings, up a little over the summer, and crash again when flu season hits. Unless the food chain problems cause the crash earlier. Cash is king short term, we aren’t in the basement yet.
It’s not a light the world on fire stock but it’s 25%+ devalued long right now and has 5G and HBO Max on the horizon. I like what HBO Max will bring. 7% dividend!? I’m not worried about their debt either.
My gamble is Tanger. It’s so cheap I can’t resist (I got in at $5) and I belive the dividends are going to persist virus or no virus. Realty Income Corp also is a solid dividend at low price right now. I think of them as solid production with a safety net until we see what flu season brings, at which point I think we see the real bottom.
And I have a personal grudge agains Wells-Fargo. I hate them with a burning passion and so do a lot of other people, so i think they’re a bad bet. Canadian banks with a US footprint are safer anyway. RBC, maybe TD, BMO.
My response was directed towards @Rico_Suave, though I think I replied to the main thread rather than his post in particular by mistake. A healthcare mutual fund really isn’t comparable to something that tracks the broad market, and someone with $10-20k to invest probably can’t afford Admiral shares. The whole point of my response was to keep things simple. A lot of people get hung up on the details and don’t act.
