The Stock Market thread: BUY! BUY! BUY! Sell, sell, sell...

[FlagDUDE08]

Re: The Stock Market thread: BUY! BUY! BUY! Sell, sell, sell...

You're one of the lucky ones. Congratulations. Obviously that means no one else has any hardships.

Chance favours the prepared mind. If you don't want to end up in that situation, don't spend six figures to be an English major. Not saying that was your exact choice, but you get the idea.

 

[dxmnkd316]

Re: The Stock Market thread: BUY! BUY! BUY! Sell, sell, sell...

Chance favours the prepared mind. If you don't want to end up in that situation, don't spend six figures to be an English major. Not saying that was your exact choice, but you get the idea.

I got a degree in chemical engineering from Minnesota. Most of us will be just fine (unless you're from out of state, then you're going to have about $150k in loans).

Either way, college loans are a massive financial hardship especially if you don't get a job immediately out of college.

 

[FlagDUDE08]

Re: The Stock Market thread: BUY! BUY! BUY! Sell, sell, sell...

I got a degree in chemical engineering from Minnesota. Most of us will be just fine (unless you're from out of state, then you're going to have about $150k in loans).

Either way, college loans are a massive financial hardship especially if you don't get a job immediately out of college.

And considering there is a contract signed by the student prior to receiving the money, they are well aware of the risks. This is why so many people push the notion of a "five-year plan". Always remain a few steps ahead of the game, and you will do very well. The same is exactly true in the market. Have a plan, and include some contingency room in case a variable like the 2008 crash gets thrown in.

 

[Almington]

Re: The Stock Market thread: BUY! BUY! BUY! Sell, sell, sell...

The parents have also been smart enough to start saving at a very young age and they will retire very, very comfortably. They were also smart enough to teach their children to save money as well. Right now I'm saving somewhere between 20 and 25 percent for retirement. Plus another 20% in liquid savings.

Your parents' personal experience does not apply to ALL parents everywhere. If a parents' retirement savings are not in good shape, they should not be paying for college. In that case the student will need loans and need to work to get through college. Provided that your total loans are only about 1/2 to 2/3 of your expected annual starting salary than provided that you have a plan to pay them off upon graduation it shouldn't be a major financial hardship.

 

[DrDemento]

Re: The Stock Market thread: BUY! BUY! BUY! Sell, sell, sell...

Loans destroy your financial life after college? So that's why since I'm completely debt free after four years removed from college, my life is over?

As for joecct, it's not so much federal loan subsidy as it is the feds themselves are the ones loaning out the money.

FD-You were indeed fortunate. It took me 10 years to pay off all my school loans. But only because Medical School cost me an arm and a leg and perhaps a few organs. College costs were high (RPI is not exactly a cheap school to attend) and my parents had nothing. But the school was very good to me in providing scholarship and loan money. I paid everything back on time and was very appreciative of the opportunity. In those days going to medical school was a wise financial choice for me-I am not sure that would be the case today.

 

[Almington]

Re: The Stock Market thread: BUY! BUY! BUY! Sell, sell, sell...

The parents have also been smart enough to start saving at a very young age and they will retire very, very comfortably. They were also smart enough to teach their children to save money as well. Right now I'm saving somewhere between 20 and 25 percent for retirement. Plus another 20% in liquid savings.

It's easier to save upwards of 40% of your income when you are young and single and making ~3x what the typical worker makes. It becomes much more difficult to do that once you add 2 kids to the mix and your household salary is near the national average.

 

[dxmnkd316]

Re: The Stock Market thread: BUY! BUY! BUY! Sell, sell, sell...

It's easier to save upwards of 40% of your income when you are young and single and making ~3x what the typical worker makes. It becomes much more difficult to do that once you add 2 kids to the mix and your household salary is near the national average.

Well duh. That's why I said "young age".

 

[DrDemento]

Re: The Stock Market thread: BUY! BUY! BUY! Sell, sell, sell...

It's easier to save upwards of 40% of your income when you are young and single and making ~3x what the typical worker makes. It becomes much more difficult to do that once you add 2 kids to the mix and your household salary is near the national average.

Exactly-this is a great reason for people to plan the type of life they want relatively early. And to fully understand the consequences of their decisions in choosing a field of endeavor and whether or not to have children and how many. It is getting more complicated all the time.

 

[Almington]

Re: The Stock Market thread: BUY! BUY! BUY! Sell, sell, sell...

Well duh. That's why I said "young age".

Except that totally ignores your relatively high income levels which is just as (if not more) important than having your age.

The person who is making $80k can save $30k, pay ~14k in assorted taxes and still have $36k after taxes to live on which works out to $3k/month, which is more than enough for a single person to live a very comfortable life.

The person who makes $40k, pays $5k in taxes and saves $5k per year has $30k after taxes to live on. While $30k after taxes isn't nothing, it is 15% less than the person with $36k and they are saving only 1/6th of what the other person is saving.

Income Matters when it comes to saving far more than age. Age and lifestyle will impact your spending, but you can only cut spending so far. It's nearly impossible to save $30k per year if you only make $40k or $45k, but is is very possible if you make $75k or $80k.

 

[FlagDUDE08]

Re: The Stock Market thread: BUY! BUY! BUY! Sell, sell, sell...

FD-You were indeed fortunate. It took me 10 years to pay off all my school loans. But only because Medical School cost me an arm and a leg and perhaps a few organs. College costs were high (RPI is not exactly a cheap school to attend) and my parents had nothing. But the school was very good to me in providing scholarship and loan money. I paid everything back on time and was very appreciative of the opportunity. In those days going to medical school was a wise financial choice for me-I am not sure that would be the case today.

Sure, there was some fortune involved, but there was also a lot of planning. You don't know how many people I grew up around thought I should have been a music major (in fact, some still think I was ). Not only was it not something I wanted to do forever, but I knew there wasn't very much opportunity. This is why I turned to engineering. Sure, I received plenty of funding from not only scholarships, need-based aid, and government funded loans, but their investment paid off as not only are the loans fully paid, but they've actually made money on me in the form of tax revenue. That's the whole reason that people invest in things, it's to get a return in the end. If I want heavy returns, I'd certainly let Lieutenant Dan get me invested in "some kind of fruit company".

 

[FlagDUDE08]

Re: The Stock Market thread: BUY! BUY! BUY! Sell, sell, sell...

With the third quarter over for most companies, who will be the winners and who will be the losers?

 

[DrDemento]

Re: The Stock Market thread: BUY! BUY! BUY! Sell, sell, sell...

Sure, there was some fortune involved, but there was also a lot of planning. You don't know how many people I grew up around thought I should have been a music major (in fact, some still think I was ). Not only was it not something I wanted to do forever, but I knew there wasn't very much opportunity. This is why I turned to engineering. Sure, I received plenty of funding from not only scholarships, need-based aid, and government funded loans, but their investment paid off as not only are the loans fully paid, but they've actually made money on me in the form of tax revenue. That's the whole reason that people invest in things, it's to get a return in the end. If I want heavy returns, I'd certainly let Lieutenant Dan get me invested in "some kind of fruit company".

I fully understand. My story is similar in that i did not always go with my first choices-or what I hoped to do-I planned and chose based on what would be best for me to do. Planning is the key and cannot be overemphasized. I just wish more people understood and felt this way.

 

[FlagDUDE08]

Re: The Stock Market thread: BUY! BUY! BUY! Sell, sell, sell...

I fully understand. My story is similar in that i did not always go with my first choices-or what I hoped to do-I planned and chose based on what would be best for me to do. Planning is the key and cannot be overemphasized. I just wish more people understood and felt this way.

Sadly, most people put too much emotion into their decisions, and they also do not give themselves a "Plan B". Of course, you can't be too cautious, either. You can't be afraid to fail. There are plenty of people with potential, but don't want to take the risk.

 

[dxmnkd316]

Re: The Stock Market thread: BUY! BUY! BUY! Sell, sell, sell...

Lulz @ Zynga shareholders. I called this one before Facebook went public. An e-mail to my dad on 12/15/2011:

http://latimesblogs.latimes.com/entertainmentnewsbuzz/2011/12/zynga-stock-price.html

Remember how we were talking about Groupon and the other dot coms with recent IPOs? Here's another. I can't help but think we're loading the gun for another dot com bubble.

I also posted this on Facebook the same day:

Let's think about this for a second. What, precisely, warrants a market cap of $9 billion for an online social networking games developer? What do they own that makes them worth $9 billion?

I was right about the market cap (now at $1.7 billion after the massacre that's going on right now). I was wrong about the bubble though. The market saw something they didn't like about these companies and they have paid the price big time.

What I was referring to when I said, "remember how we were talking about Groupon and the other dot coms with recent IPOS" was a conversation I had with my dad a week or two earlier saying that these companies had no chance to maintain that kind of market cap. Groupon and Zynga had nothing to bank on. Groupon was in a market that was being flooded by new competitors and I figured it would savage their stock price in the short term. And Zynga... Jeebus. They never had a chance to begin with. Once people got tired of Farmville, the same way Mafia Wars and the other annoying games died, the company would die a fast and painful death.

 

[FlagDUDE08]

Re: The Stock Market thread: BUY! BUY! BUY! Sell, sell, sell...

I think this is officially my favourite Dragons' Den contestant, a 14-year-old mini-hedge-fund manager:

<iframe width="560" height="315" src="http://www.youtube.com/embed/XcB0L6ANMkQ" frameborder="0" allowfullscreen></iframe>

 

[FlagDUDE08]

Re: The Stock Market thread: BUY! BUY! BUY! Sell, sell, sell...

Holy wow, Eli Lilly (LLY) is a winner! Looks like they made some progress with slowing Alzheimer's. I do own a stake in this.

 

[FlagDUDE08]

Re: The Stock Market thread: BUY! BUY! BUY! Sell, sell, sell...

Lulz @ Zynga shareholders. I called this one before Facebook went public. An e-mail to my dad on 12/15/2011:



I also posted this on Facebook the same day:



I was right about the market cap (now at $1.7 billion after the massacre that's going on right now). I was wrong about the bubble though. The market saw something they didn't like about these companies and they have paid the price big time.

What I was referring to when I said, "remember how we were talking about Groupon and the other dot coms with recent IPOS" was a conversation I had with my dad a week or two earlier saying that these companies had no chance to maintain that kind of market cap. Groupon and Zynga had nothing to bank on. Groupon was in a market that was being flooded by new competitors and I figured it would savage their stock price in the short term. And Zynga... Jeebus. They never had a chance to begin with. Once people got tired of Farmville, the same way Mafia Wars and the other annoying games died, the company would die a fast and painful death.

I wouldn't call this a dot com bubble so much as I would a cold dose of reality. Why the heck were they going public, anyway?

 

[DrDemento]

Re: The Stock Market thread: BUY! BUY! BUY! Sell, sell, sell...

Holy wow, Eli Lilly (LLY) is a winner! Looks like they made some progress with slowing Alzheimer's. I do own a stake in this.

I have always felt that drug stocks should be part of any well diversified portfolio. LLY, BMY, etc all make sense at times. Some have better dividend yield than others and some have better upside movement. But they are realtively safe long term investments.

 

[FlagDUDE08]

Re: The Stock Market thread: BUY! BUY! BUY! Sell, sell, sell...

I have always felt that drug stocks should be part of any well diversified portfolio. LLY, BMY, etc all make sense at times. Some have better dividend yield than others and some have better upside movement. But they are realtively safe long term investments.

I still think health care is a bubble, especially with PPACA. Sure, there will be some companies that will survive, but government cost will push many out. It's just a question of when the hot potato explodes.

 

[Almington]

Re: The Stock Market thread: BUY! BUY! BUY! Sell, sell, sell...

I have always felt that drug stocks should be part of any well diversified portfolio. LLY, BMY, etc all make sense at times. Some have better dividend yield than others and some have better upside movement. But they are realtively safe long term investments.

I think that the key to any pharma stocks is understanding how patent expirations in their product line will impact the companies cash flows going forward. You can't predict how drug development will go (the companies can't even do that), you can estimate the impact of losing exclusivity of major earning drugs will have on the company.