if you own stocks
- Thread starter CHAPO GUZMAN
- Start date
Buying single stocks is a good way to lose money fast. They are at $95 right now and were trading at almost $200 in January. You have to think with this "crisis" going on and if a recession hits unemployment goes up and less people buy high end apple products= stock going even lower.
Mutual funds are they way to go because you invest in many companies, lets say u got apple, dell, toyota, exxon, honda (only as an example). In the long term most likely they will still be around and in better financial shape once this "crisis" is over...... Do some reserch, don't invest money in any thing you don't really understand...
Mutual funds are they way to go because you invest in many companies, lets say u got apple, dell, toyota, exxon, honda (only as an example). In the long term most likely they will still be around and in better financial shape once this "crisis" is over...... Do some reserch, don't invest money in any thing you don't really understand...
Well if you plan on day trading the stock it might make sense to worry about the commisions, but if you are going to buy and hold it like a mutual fund, $14 dollars over the course of your investment is not very noteworthy.
In addition, Mutual Funds usually have expenses at about 10 times ETFs (aprox 1% MF, 0.1% ETF)
and
Advantages of ETFs
Low Ownership Costs - Because of their efficient structure that tracks an index rather than pay investment managers to create a portfolio, the recurring expenses for most ETFs are very low.
Tax Advantages - While this isn’t really a concern if you’re investing in a tax-deferred account, ETFs are generally very tax friendly. In many cases, you are in control of when you pay capital gains tax because you pay it when you sell your shares. You aren’t at the mercy of wondering whether your mutual fund is going to declare a capital gains distribution or not. Many ETFs have never issued a capital gain distribution, and even the ones that do generally minimize the impact significantly.
Liquidity - As I mentioned above, ETFs trade throughout the day just like a stock. This means you can buy and sell multiple times a day if you want, or buy and sell with virtually immediate results. You can also place market, limit, and even stop-loss orders through your broker for ETFs.
No Minimum Investment - With an ETF, you are only limited by the amount of money you have and the price per share. Many mutual funds require thousands of dollars as a minimum before you can even invest in a fund, so ETFs have a much lower barrier to entry.
Options - Since ETFs trade like stocks, many popular ETFs also have corresponding options. For more sophosticated investors, this means you can buy puts and calls, create spreads, or other creative techniques to hedge your investment.
Things to think about.....
In addition, Mutual Funds usually have expenses at about 10 times ETFs (aprox 1% MF, 0.1% ETF)
and
Advantages of ETFs
Low Ownership Costs - Because of their efficient structure that tracks an index rather than pay investment managers to create a portfolio, the recurring expenses for most ETFs are very low.
Tax Advantages - While this isn’t really a concern if you’re investing in a tax-deferred account, ETFs are generally very tax friendly. In many cases, you are in control of when you pay capital gains tax because you pay it when you sell your shares. You aren’t at the mercy of wondering whether your mutual fund is going to declare a capital gains distribution or not. Many ETFs have never issued a capital gain distribution, and even the ones that do generally minimize the impact significantly.
Liquidity - As I mentioned above, ETFs trade throughout the day just like a stock. This means you can buy and sell multiple times a day if you want, or buy and sell with virtually immediate results. You can also place market, limit, and even stop-loss orders through your broker for ETFs.
No Minimum Investment - With an ETF, you are only limited by the amount of money you have and the price per share. Many mutual funds require thousands of dollars as a minimum before you can even invest in a fund, so ETFs have a much lower barrier to entry.
Options - Since ETFs trade like stocks, many popular ETFs also have corresponding options. For more sophosticated investors, this means you can buy puts and calls, create spreads, or other creative techniques to hedge your investment.
Things to think about.....
Apple MIGHT be good if you are willing to sit on them for a while. Apple kinda got hit 2 fold because it was reported that Steve Jobs had a heart attack, and around the same time the stock market took a shit. If you DO buy stocks, I'd suggest copping at LEAST 25 shares. Well, that's how I do it anyway.
well yes, depends who you ask though.
Please spare me text-book definitions about our gross domestic product.
But hey, maybe we never hit a recession. You can be the wise-guy to go against Warren Buffett though. Just make sure you do your homework when you debate him on it.
http://www.usatoday.com/money/companies/management/2008-03-03-buffett_N.htm
Just curious Hustle, what is your educational/professional background? I assume from the way you talk you must have been trained/educated in financial markets and on debt/equity. Let me know so I can validate your opinion.
Please spare me text-book definitions about our gross domestic product.
But hey, maybe we never hit a recession. You can be the wise-guy to go against Warren Buffett though. Just make sure you do your homework when you debate him on it.
http://www.usatoday.com/money/companies/management/2008-03-03-buffett_N.htm
Just curious Hustle, what is your educational/professional background? I assume from the way you talk you must have been trained/educated in financial markets and on debt/equity. Let me know so I can validate your opinion.
make trades at your own risk. the market is unpredictable as shit, and no one can really say how it is gonna go.
with that said, I think B of A is really a good investment right now if you can afford to keep your funds wrapped up in the stock for a while. it may take a year or two, but eventually it will get back to its historic trading price of 55, and then some. I mean Christ, they added Merrill Lynch to their umbrella. So now you have one of the country's largest normal deposit based banks, also with the capabilities of handling investment banking activity and other larger wealth management operations. If you think B of A is gonna be anywhere near 23 bucks in 5 years, you are a moron.
Like I said, great time to invest in stocks. Just do your homework. And like gambling, never put money out there you cant afford to lose.
At the same time its still a risk.
A shit ton of people were all saying there is no way WAMU is gonna be $3 a share in 5 years and then poof, its gets robbed by the FED.
In a worst case type scenario, its possible that the bank could be nationalized.
Although at this point I do agree that it is a good long term buy.
