The Market, if you care. Just my opinion.

[Jmax]

Got some folks telling me the market is crashing and this is the beginning of a big fall. emoDoh Really? Seriously? You must be kidding. Let me tell you the way it normally works. Usually towards the end of the year people sell off stocks that are down to declare loses for tax purposes. This past year because the market was so high that did not happen like it usually does and the people kept their investments. Now the year has turned and the market ended close to 35% up, an all time high. Now that the year turned people who were thinking about selling started, then the China market had a big poor results yesterday and today the new market money had a hit. That has caused a 3% down turn this week. Many including me thought we were due a correction. I think this is a correction. Looking at the fact we were up over 35% last year that little 3% drop this week, that is not much. I really think more of a drop is coming next week.

Don't panic, it is the correction many of us have been talking about. Selling off to take gains are going to happen. If you were going to sell something now might be a time to declare some gains. However don't do that just because the Market took a hit this week. Bad reports are going to come in. The Market was due. Now the good side is there is a huge amount of cash out there where some have been waiting to invest. You don't invest when the Market is at an all time high. Gains will be harder to come by if you do. However now that we are seeing a turn down the buyers will be watching for it to slow or turn around then the jump up is due. Wait a couple more days and lets see where the market goes. I think it will still fall lower but be ready to buy if your waiting.

The Market is now in the "Red" for 2014 but considering the year last year that should not come as any big surprise. Hard to compete with a year of an all time high in the Market.

This is just my own opinion. If you do not invest in some kind of retirement plan or a 401k program for your own good I would strongly suggest doing so. emoGeezer Jmax

 

[beetlespin]

I'm looking for 5-10 percent pullback. I still think the market went up for no reason other than QE last year.

 

[jimwarden]

What Jmax said. Market was WAY overdue for a correction. Keep in mind it's not all about the Dow these days as the S&P and the Nasdaq have been on a historic rise lately and they both only took a 1.5% hit. This happens and it will happen again. 1987, 1992, 2007. Invest for the long term. Live below your means and invest the rest. Let your money work for you as hard as you've had to work for your money. Read any of Venita VanCaspel's Money Dynamics books available on Amazon for a penny plus shipping. She explains investing as well as anyone. Ok, back to thinking about football and fishing.

 

[Davo]

I agree with Lance, once the Fed stops QE the market will drop some. That kind of input is not sustainable and pretty ridiculous.

 

[Liveliner]

The Market is a game for the Big Money Players. Any one else investing is just tagging along for a bumpy ride.

 

[Jmax]

Liveliner - 1/25/2014 8:48 PM

The Market is a game for the Big Money Players. Any one else investing is just tagging along for a bumpy ride.

Your half right in my book. Us little guys can invest for the long haul. Declare Capital gains and put money today in tax sheltered IRAs and 401ks that we can one day use when we are in our older years or when we are in an emergency. Or even when we have a great year and decide to buy a new boat. Day to day buying and selling of stocks I would agree completely with your statement. Unless you are a big money player you cannot afford to buy and sell stock often. You can however get into some kind of investment group where they do it for you. Be very careful on who you choose and check them out well. All you have to do is watch the show "American Greed" and you can see people who have made the wrong choices who lost their life savings.

I like to choose the old time traditional investment people. I use the American Funds group who invest for me, Raymond James, Edward Jones and Mass Mutual. Within each group you can spread your investments and by spreading you take less risk that one stock heavily invested is going to hit you hard if it were to take a poor turn in the market. Within the different investment groups I do like the Mutual Funds groups of American, Hartford and Lord Abbott. Edward Jones a couple years ago started a group within their company called the Advisory Group. I have been very pleased with the results I have seen through them. You invest your money into their group, answer a bunch of questions of how you would like them to invest on your behalf and they buy and sell for you as they see the market performing.

This is how the "Little Guy" can invest into the market and do well, like you said above, "Tag Along". Their is always the chance a bad year will come along and you not do well over that year but in the long run it will usually work done correctly. These are just some suggestions I have found over the past 35 years that has worked for me. emoThumbsup Jmax

 

[foodsaver]

do you feel like the returns for american funds offset the 5-6% load?

 

[Jmax]

foodsaver - 1/27/2014 11:09 AM

do you feel like the returns for american funds offset the 5-6% load?

Yes, in the long run it is. However they do discount the load based on how much you buy. If you invest 25K it starts the discounted purchases. I think it discounts it all the way down to zero but you have to buy a large purchase to get zero. Even if you only buy a couple grand you still over time are better off in my opinion. Keep in mind that it is a one time charge and it is up front. Unlike many stocks once you pay that up front load you do not have to pay anything to sell it. So on the back end you pay nothing. Also look at the 15 year annual results. It is a good one way to compare. If an American Funds stock averages 8 to 9 percent annually compared to the S&P doing 5 percent it only takes a couple years to make that up. Most funds like American Funds are set up to buy and hold for a long haul. They are usually Class A stock funds. You can buy American Funds Class C where you do not pay a load up front but then you have to pay higher fees to manage that fund on a yearly bases.

I have one of my brokers I use right here in Chattanooga. His name is Stan Russell and he is with Edward Jones. He is a good one and has been in the business for I believe 15 years. I shopped around some before settling on him and now I have him on speed dial. emoBigsmile We talk a couple times a month at least. Give him a call Craig, I am sure he will be glad to answer any questions you may have and that doesn't cost a thing to ask. emoThumbsup His office number is 423-894-0058.Jmax