Market in the toilet who’s buying?

Spartan65

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I made the mistake of looking st my 401K today.
- 17.41% year to date.
- 5.22% 1 year.

I miss the +40% times.

:(

I am almost tempted to stop the contributions for 2 or 3 paychecks ... but I will keep them flowing.

What does NES think?
But no mean tweets!!

I was down 15% for the year on Thursday it really didn’t feel good seeing every dollar I’ve put in this year essentially lost. But for us young guys buying the dip is a good thing. It just hurts.
 
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IBonds are great - I have been purchasing them for a few years. They fill a role for a long term emergency fund if needed or will help gap any shortfalls before taking SS

Couple of things to note: there is a 1 year lockup of your $ before you can sell them and you lose the last three months of interest if you redeem them in less than 5 years

Couple of good resources that I send to people who want to learn more:
A much longer set of posts but a good place to ask questions if you have them:
 

Broccoli Iglesias

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IBonds are great - I have been purchasing them for a few years. They fill a role for a long term emergency fund if needed or will help gap any shortfalls before taking SS

Couple of things to note: there is a 1 year lockup of your $ before you can sell them and you lose the last three months of interest if you redeem them in less than 5 years

Couple of good resources that I send to people who want to learn more:
A much longer set of posts but a good place to ask questions if you have them:
This part confuses me:

  1. They offer a put option. If future I Bonds offer a more attractive fixed rate, it may make economic sense to redeem the older lower-yielding I Bonds, pay the taxes due on the interest earned, and then buy the newer I Bonds with the higher fixed rate. (Remember, however, if you redeem I Bonds within the five years of purchase, you will forfeit the last three months of interest.)

I thought interest adjusts automatically. Is that saying the 9% will continue to pay 9% for 30 years? ... even if interests drop down to 1% or go up to 12%?
 
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This part confuses me:



I thought interest adjusts automatically. Is that saying the 9% will continue to pay 9% for 30 years? ... even if interests drop down to 1% or go up to 12%?

No, I think it is a strategy to simply sell older ibonds and buy into newer ibonds if the newer ibonds have higher interest rates (the wording there is an interesting choice as its not really a 'put' as classically defined). But that strategy would only work if you only want to keep 10K or lower in ibonds in total over time as the max you can buy in a any given year is $10K per person. Seems like a strategy most wouldn't use unless you are just doing interest rate arbitrage on a small fixed amount

iBonds have six months of fixed interest from the 1st day of the month you purchase them at the then current rate and then will adjust after that six months to whatever rate is current at that time

I just plan on accumulating iBonds each year if I can
 
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I believe in gold and silver. Just increased our position in AAAU. Looking to buy more physical but as we are roaming I am a little concerned about getting shipment. Maybe I will find some "local" sources. We will be going to family next month so we could have shipments sent there.
 

Broccoli Iglesias

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No, I think it is a strategy to simply sell older ibonds and buy into newer ibonds if the newer ibonds have higher interest rates (the wording there is an interesting choice as its not really a 'put' as classically defined). But that strategy would only work if you only want to keep 10K or lower in ibonds in total over time as the max you can buy in a any given year is $10K per person. Seems like a strategy most wouldn't use unless you are just doing interest rate arbitrage on a small fixed amount

iBonds have six months of fixed interest from the 1st day of the month you purchase them at the then current rate and then will adjust after that six months to whatever rate is current at that time

I just plan on accumulating iBonds each year if I can
Exactly, if the bonds adjust, then why would you ever need to sell some to buy others at a higher interest rate?

Might as well keep the existing bonds, then decided if you buy or sell when the interest rate changes.

I am not sure if I am missing something or someone is trying to overcomplicate a very easy thing.
 

Varmint

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This part confuses me:

I thought interest adjusts automatically. Is that saying the 9% will continue to pay 9% for 30 years? ... even if interests drop down to 1% or go up to 12%?

The fixed rate stays the same but that’s like 0% right now. If the fixed rate goes up it makes sense to sell those with lower fixed rates and buy new ones.

The 9% is variable and will track the CPI.
 
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I'm not even remotely ready to try options. I'd probably go broke. So I have to just ride this out. Between my parents failing, the shitty spring weather, inflation, and the market I'm not in a good mood!
You should look into selling options, not buying options. If you are willing to risk being long stocks, selling covered calls against shares you own actually reduces the risk of owning those shares. Theoretically, selling calls and receiving premiums can eventually bring your cost basis (risk) down to zero.
For new option traders, I would suggest only selling options (covered calls/cash-secured puts) in a cash account. No margin risk , etc.
Education is your friend.
 

andrew1220

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I made the mistake of looking st my 401K today.
- 17.41% year to date.
- 5.22% 1 year.

I miss the +40% times.

:(

I am almost tempted to stop the contributions for 2 or 3 paychecks ... but I will keep them flowing.

What does NES think?
I made the same mistake too. Well it’s a 457b plan - the .gov equivalent to a 401k. I lost like $8k in the last few weeks. I don’t have much in it right now as I rolled over my previous employers 401k into it. I only contribute $300 a month. But it still hurts lol. I’m wondering if I should stop contributing as well.
 

Broccoli Iglesias

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I made the same mistake too. Well it’s a 457b plan - the .gov equivalent to a 401k. I lost like $8k in the last few weeks. I don’t have much in it right now as I rolled over my previous employers 401k into. I only contribute $300 a month. But it still hurts lol. I’m wondering if I should stop contributing as well.
When I thought about stopping, I though about stopping for maybe 1 or 2 months, but not touching the funds, then restart contributions once markets start to look a little better.

Not rolling it into something else then roll it back into stocks when everything is high again, a mistake way too many people make. They essentially always buy high and sell low.
 

andrew1220

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When I thought about stopping, I though about stopping for maybe 1 or 2 months, but not touching the funds, then restart contributions once markets start to look a little better.
Yeah that’s what I was thinking of doing. Because I feel like I’m just pissing away $300 per month at this point. Then once the market changes for the good, continue with my Roth contributions.
Granted I won’t be retiring until ~30 years from now so I dunno if it matters? I’m losing money now but at some point things will change (🤞🏻) and the value of my 457b will go up closer to retirement?

I’m not a skilled financial guru to know what’s best lol. Just trying to have extra money on top of my pension come retirement.
 

Broccoli Iglesias

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Yeah that’s what I was thinking of doing. Because I feel like I’m just pissing away $300 per month at this point. Then once the market changes for the good, continue with my Roth contributions.
Granted I won’t be retiring until ~30 years from now so I dunno if it matters? I’m losing money now but at some point things will change (🤞🏻) and the value of my 457b will go up closer to retirement?

I’m not a skilled financial guru to know what’s best lol. Just trying to have extra money on top of my pension come retirement.
I hear you, it is tough.

I wish 401K reporting was better, it seriously blows.

I am keeping my contributions for now.
 

Ron Jablonski

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You two are young. Don't stop your contributions now when you're buying low!



View attachment 616296
Exactly, just look at it like when the price of everything drops it just means things are on sale. I'm also young and not a financial wizard but I do understand the concept of dollar cost averaging.
 

mav

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Exactly, just look at it like when the price of everything drops it just means things are on sale. I'm also young and not a financial wizard but I do understand the concept of dollar cost averaging.
What’s your number of shares owned * your average cost per share * 0? lol. Yes, some of these companies are going to 0…

I’m just going to leave this right here:

View: https://m.youtube.com/watch?v=-DT7bX-B1Mg
 

Varmint

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Broccoli Iglesias

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What’s your number of shares owned * your average cost per share * 0? lol. Yes, some of these companies are going to 0…

I’m just going to leave this right here:

View: https://m.youtube.com/watch?v=-DT7bX-B1Mg

Meh, depends, some are, but the good ones aren't.

Netflix is not going to $0.
PLTR is not going to $0.
PayPal is not going to $0.
Cisco, IBM, Microsoft, APPL, DOCU ... they are nto going to $0.

All these were affected, it could take 3, 4, 5 years to get to where they were, but they can get there and are not going to $0.

Edit:
Most of these companies are on sale now. 5 to 7 years from now you will be thinking "f*ck, if I put $$ in company XYZ I would have a downlayment for a new house".
 

paul73

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Broccoli Iglesias

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i adore the past tense custom charts that are compiled by 'what would have happened' if you would buy an every stock as its low and sold it as it peaks.
looks truly awesome.

next.
I didn't read the entire thread. But I dont think they are buying when it is low, looks like they sre buying when it is mentioned.

Pure gambling based on the company being in the news. If it is in SP, it is because something relevant happened.
 
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I didn't read the entire thread. But I dont think they are buying when it is low, looks like they sre buying when it is mentioned.

Pure gambling based on the company being in the news. If it is in SP, it is because something relevant happened.
They buy when its mentioned and sell when the next one is mentioned. They also did an Inverse Jim Cramer index which is beating the S&P by 30% lol.


View: https://www.reddit.com/r/wallstreetbets/comments/uiipwu/this_is_actually_beating_the_sp_by_over_30_for/
 
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