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Stock Market Gurus


    FREDMAYCOIN Mar 27, 2020

    Hypothetically speaking, you have an extra 100k and would like to take advantage of the market, what would you buy with the money. The 100k is just extra cash sitting around doing nothing?
  2. Dsloan

    Dsloan Mar 27, 2020

    Depends what type of risk you want to take on and what your goals/timeline are. If you wait until we hit rock bottom (good luck on timing that exactly right), it would stand to reason that even something very basic like an index fund or well-managed, low-risk mutual fund would see plenty of growth in the next 5 years. But that's assuming we see a relatively normal recovery from this like has occurred after previous recessions.

    I don't have a ton of money to play with, but I'm glad I waited to fund my Roth IRA instead of doing it earlier this year. That said, it creeps me out a bit to be excited about investment growth when so many people are worried about how they're going to make it through the next few weeks. :(
  3. gbesq

    gbesq Mar 27, 2020

    Small cap value fund. And then wait.
    FREDMAYCOIN and Hawgs like this.
  4. CaptainWinsor

    CaptainWinsor Mar 27, 2020

    Disney stock and options
    FREDMAYCOIN likes this.
  5. Observer

    Observer Mar 27, 2020

    It's very important to remember that cash is a position, too. Most of the true gurus have a significant cash position. Some are even 100% cash. Don't feel you have to buy anything.

    One thing that might be considered in the US markets is closed-end municipal bond funds. The two I hold are paying about 4.5% and the federal government has stated that they will bail them out if necessary. Municipal bonds have the advantage of being able to raise prices without losing customers since few people will take their business elsewhere (I've seen my property taxes double in the last ten years and my neighbors are all still here). They are also exempt from federal taxes so they may have the effect of a much higher yield depending on your tax situation.

    This is an example, not a recommendation. The only recommendation I make is to never invest in something you don't understand.
    Edited Mar 27, 2020
  6. BlackTalon

    BlackTalon Mar 27, 2020

    @FREDMAYCOIN , I'll assume you are talking about the US market (if not, please ignore the rest of this post)

    I threw money in when the Dow dropped to ~23.5k -- mainly in a couple blue-chips and an S&P 500 fund. I have more sitting on the sideline for when/ if the Dow drops back below 18k and stays there for a week or two. The holdings in my wife's retirement account were converted to cash when the drop started, and will go into an S&P fund when the Dow is at around 20k, which I am fairly certain will happen as more and more people realize how widespread the virus impact is in the US.

    I realize using the Dow as an indicator is misleading (we're really watching the broader market), but that is the most visible 'indicator' for many. Retirement is 12-15 years away, so we have the luxury of time for a nice recovery.
    keywerd and FREDMAYCOIN like this.
  7. Evitzee

    Evitzee Mar 27, 2020

    Many great stocks on discount right now, even after the runup this week. Disney, Microsoft, Apple, McDonalds and others will all be solid picks looking back a year or two from now. I've got cash ready to go, just waiting to see if we have found a bottom yet, or if the recovery this week is a head fake. Until we have turned the corner on the virus and get some idea when the economy will be back open for business there is no rush to enter the market. But make no mistake, opportunities abound.

    Even buying a pure S&P500 Index Fund will be rewarding in the long term.
  8. dscoogs

    dscoogs Mar 27, 2020

    Interesting question. I am neither a stock market guru nor a consistent good stock picker. I do believe in long term overall economic growth in the world that S&P 500 companies can benefit from, and investment portfolio diversification to reduce risk/volatility. Assuming (1) some risk tolerance and (2) adequate emergency cash, if I need the money in:

    1) 1-3 years, I would just get a CD;
    2) 10 years, I would buy a 60% stock / 40% bond index fund such as Vanguard Balanced Index;
    3) 20+ years, I would buy a S&P 500 index fund,

    For 2) and 3), I would dollar cost average 10% or 10k a month for the next 10 months.
  9. Larry S

    Larry S Color Commentator for the Hyperbole. Mar 27, 2020

    I have deferred bonus money coming to me next month. At first it was going into the market, following our current relatively conservative strategy now my advisor says stay in cash till this settles out. I’ve grazed a bit on some Blue Chips with some mad money, but hit the brakes. I’m sitting this storm out. Advice above from @dscoogs is good.
    watch3s and FREDMAYCOIN like this.
  10. wagudc

    wagudc Mar 27, 2020

    I agree 100%
    FREDMAYCOIN likes this.
  11. rcs914

    rcs914 Mar 28, 2020

    I had my finger on 450 shares of Disney the other night at $89 ask - and I didn't do it. It was up massively over the next few days, but down about half the gains again today. Lots of volatility, but overall I think it would have been a good buy. Hindsight will see.
    FREDMAYCOIN, Walrus and CaptainWinsor like this.
  12. Foo2rama

    Foo2rama Keeps his worms in a ball instead of a can. Mar 28, 2020

    Buy up short Tesla positions.


    Apple pending what they do this year as a new product, as they need one. Or in the absence of that data on their streaming service.

    take a hard look at AMD and their play in the Chinese markets, and debate between them and nvidia as they are both designing chips for that market only right now.
    FREDMAYCOIN, Larry S and Spacefruit like this.
  13. CaptainWinsor

    CaptainWinsor Mar 28, 2020

    I think there’s going be more opportunity to get in.
    Disney is a money making machine. Instead of buying 450, maybe start with 100. If it goes down you can buy more to average out the cost or sell options against your position
  14. MaiLollo

    MaiLollo Mar 28, 2020

    Shorting is not an easy thing to do and extremely risky for someone who isn’t extremely well versed in trading, I would strongly recommend not to to be fair, especially on a stock which has crazy volatility such as Tesla
  15. lindo

    lindo Mar 28, 2020

    Do I perceive a set of broad assumptions here that things will return to pre COVID-19 conditions in due course (however long that may be)?

    Can I suggest that the huge size of the world population and its wide spread of large medium to high density cities is an invitation to more than one viral pandemic in the next decade. Let's suppose that another one comes along in a couple of years or so that is even more contagious, and perhaps more deadly than COVID-19. What investments would you want to have in that much more precarious environment?

    I am not a doomsday nut. I just think the huge impact of COVID-19 on economies and the way governments have reacted are great big indicators of how fragile the things we have taken for granted are.

    I will be thinking very hard about investing in stocks that are likely to be more resilient in adverse conditions. I will also be asking whether short selling should continue to be allowed in this new world order.
    George.A, queriver, Davidt and 3 others like this.
  16. Cad290

    Cad290 Mar 28, 2020

    Dollar cost average buying low cost index funds over a 1-3 year period is the best advice I have. And if you are looking for something a little different, and are interested in the crypto space, there are DeFi companies that pay 8% interest on cash deposits, like Blockfi.
    FREDMAYCOIN likes this.
  17. Cozmopak

    Cozmopak Mar 28, 2020

    I only buy low cost total market index funds. Never individual stocks. So far that has been a very lucrative strategy for me.
  18. Omegafanman

    Omegafanman Mar 28, 2020

    I have avoided checking on anything … been too busy anyway. I plan to have a look tomorrow / see what the damage is. I think there will be a time to jump back in and maybe it would be wise to drip feed some in now. But they do say never try to catch a falling knife and this one looks to be spinning fast. I did make several pension payments this month but mainly for tax relief - hard to time that / hopefully they all went in on a low.
    queriver and FREDMAYCOIN like this.
  19. Arno (NL)

    Arno (NL) Mar 28, 2020

    One cannot time a bottom. “Because the recovery started today means yesterday was the bottom” is a saying in this field.
    If you ask me we will be seeing more downside the coming period. As one said above “cash is also a potion” (with a negative return in a lot of parts of the world). I am in cash and waiting. Just waiting.
    Edited Mar 29, 2020
  20. STANDY

    STANDY schizophrenic pizza orderer and watch collector Mar 28, 2020

    I dread to see what the market will look like in 2 months.
    I would be sitting for a bit

    The fan has only just been turned on :whistling:
    Taddyangle, Transitus, goggs and 8 others like this.