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Is this the right market ?

By leo9   Follow   Mon, 28 Nov 2011, 8:49pm   1,222 views   11 comments
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I been observing for past few years there is strong negative sentiment towards stock market. There
are lots of negative news in past few months - euro crisis, housing market, un-employment, debt, etc.
None of them is good for stock market but the market is very volatile lately. I want to invest some money but not sure if its a good time. I am thinking about buying a house vs. investing in stock market. Can't make up my mind. I don't believe house prices will increase dramatically for next few years, so I can wait but given the market condition, stock isn't very appealing either. Any thoughts or better ideas for investments?

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1. Remington Follow Befriend 22 threads 47 comments Pacifica, CA

   1   2:59pm Thu 1 Dec 2011   Share   Quote   Permalink   Like   Dislike (2)   Volatility is good. The market isnt weak/volatile, its "on sale". I'd look into putting some money into an index fund to start. Read up: http://www.forbes.com/2009/02/23/graham-buffett-value-personal-finance_benjamin_graham.html

2. FortWayne Follow Befriend (13) 102 threads 3,762 comments

   2   8:47pm Thu 1 Dec 2011   Share   Quote   Permalink   Like   Dislike (1)   A lot of money is made in volatility, just buy low and sell high if you gamble. Or simply buy established companies and hold forever. Don't try to beat insider traders, they have a lot more info than you do. They rip the big bucks.

3. corntrollio Follow Befriend (5) 27 threads 2,073 comments

   3   11:39am Fri 2 Dec 2011   Share   Quote   Permalink   Like   Dislike (1)   Remington says Volatility is good. Since when is volatility good? If you are a long-term investor, volatility sucks. Remington says http://www.forbes.com/2009/02/23/graham-buffett-value-personal-finance_benjamin_graham.html If you read your own link, you'd see that it talks about advice on how to mitigate the negative effects of volatility. i.e. volatility is bad, but don't be afraid because you can do these things to help mitigate it.

4. edvard2 Follow Befriend 34 threads 2,098 comments

   4   11:54am Fri 2 Dec 2011   Share   Quote   Permalink   Like   Dislike (1)   All I can say is that in 2009 the DOW was down to around 6,000. Now its up past 12,000. I think that just about sums it up...

5. michaelsch Follow Befriend 21 threads 581 comments South Pasadena, CA

   5   12:56pm Fri 2 Dec 2011   Share   Quote   Permalink   Like   Dislike (1)   It looks like the dead cat bounce is done. A good time for exit.

6. Vicente Follow Befriend (8) 203 threads 4,403 comments Davis, CA

   6   1:15pm Fri 2 Dec 2011   Share   Quote   Permalink   Like (2)   Dislike (1)   I don't believe in a big stomach-churning DUMP any more. The Powers That Be, which means all the MONEYCHANGERS, have decided it's bad PR. They already got bailed out once, and having another crash right now would look really bad for them. I mean so bad that finally someone would decide to enact REAL financial regulation and break up all the Too Big To Fail institutions. So they won't allow that. If it means they have to rig the market, that's what they will do. Pump fake numbers into the displays and computers all day long? Sure they can do that. And they will not be lone pathetic goobers like Mortimer: Get those brokers back in here! Turn those machines back on!

7. clambo Follow Befriend (5) 1,070 comments Santa Cruz, CA

   7   5:52pm Fri 2 Dec 2011   Share   Quote   Permalink   Like   Dislike (1)   You didn't provide enough information. English also appears to be your second language. That's not a crime, just my observation. Stocks will perform over time better than houses in California, as they almost always have. If you are thinking of buying your first house and can use the mortgage interest deduction, then this can affect the numbers of buying, depending on your income. If you are thinking of buying a second house "as an investment" I would not if I were in your shoes. Since we don't know 1. whether you have a house already 2. your age 3. other assets, it's hard to give you an answer. In general, when interest rates are LOW, stocks is a great place to put money. When interest rates are HIGH, it's not a bad idea to have bonds too. If you are younger and not rich, then stocks are better to accumulate capital. If you are older and already rich, then bonds are better to provide income so you can spend your money. What is the best way to invest money each year? No one knows but there are guys who claim to know and they'll charge you 1% or more of your financial net worth to try to predict the future for you. If I found a suitcase of cash on the sidewalk today, I would heavily invest in stock mutual funds. Renting is always possible if you have money. If you have a giant expensive house that is underwater and you owe property taxes to support the welfare state and firemen pensions, this may affect your sleep. Actual cash in US dollars is kind of a bad deal, so go online to open a swiss franc bank account at least to preserve your buying power if you want to invest in nothing at all.

8. mdovell Follow Befriend (4) 28 threads 776 comments

   8   6:39pm Fri 2 Dec 2011   Share   Quote   Permalink   Like   Dislike (1)   corntrollio says Since when is volatility good? If you are a long-term investor, volatility sucks. If you play options and create a straddle you make money as long as it goes significantly up or down..granted that isn't something to do lightly I wouldn't suggest playing the options marking or trying to "beat" anyone but sometimes the tea leaves are there. If you invest in a company and you notice that there's huge volume in puts it might be a safe bet to say that someone knows something about to happen..same if there's call volume. Insider trade is legal as long as it isn't excessive...Bill Gates cannot simply dump all of his shares in microsoft if there's a bad quarter but small amounts can be ok. Triple witching (3rd friday of the month) is when puts, calls, futures(I think) end. Volume is nearly assured to be somewhat higher than normal. There's also more apt to be more volume during closing of segments. So end of week, month, quarter, half and of course year can bring higher volume as well. There are still significant percentages of investors that have little information of what they are buying. Do they really know what a P/E ratio is? Do they know their dividend yields? Can they name anyone on the board of directors? etc

9. leo9 Follow Befriend 11 threads 38 comments

   9   10:49pm Fri 2 Dec 2011   Share   Quote   Permalink   Like   Dislike (1)   Thanks Clambo for very good advice. The is our first house. We are relatively young 31 year. I have cash but after putting lot of money for downpayment, I may not have enough to invest in stock market. Prices are crazy in bay area for houses.

10. Nomograph Follow Befriend (1) 104 threads 2,851 comments

    10   7:32am Sat 3 Dec 2011   Share   Quote   Permalink   Like (1)   Dislike (1)   clambo says Stocks will perform over time better than houses in California, as they almost always have. You can't live in a stock portfolio. In terms of providing shelter, houses will always outperform stocks.

11. clambo Follow Befriend (5) 1,070 comments Santa Cruz, CA

    11   9:09am Sat 3 Dec 2011   Share   Quote   Permalink   Like   Dislike (1)   Nomo, his question was about stock market v. "investing" in property. My grandmother might disagree. As far as I can determine, she rented very nice places her entire life, and she died with a bunch of cash left over.