Well at this point, just hold. If they were solid companies, they’ll survive and should rebound eventually.
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SVTP stock pick thread.
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Well at this point, just hold. If they were solid companies, they’ll survive and should rebound eventually.
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The eventually might be longer than I can wait
I’m not arguing, but curious…you are thinking the housing market will go up?
i’ve been using DRV to essentially short this situation.
edit: buddy who is VP at a local bank says they are bracing for possible 9-10% rates soon. Even he says who knows, but i thought this was interesting and it definitely played into my purchase
My realtor friend and the lender said the same RE rates.
I’m sure many people will hold as there wasn’t a huge swath of subprime loans.
But people do have to be able to move for work, retirement, family, and all sorts of reasons.
They will have to severely reduce their price from current levels. People are still pricing their homes like it’s 3%. Many very nice homes 60+ days on the market.
What is this DRV you are talking about?
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it’s an inverse real estate ETF. Doubled since mid august. I buy shares instead of options, but many times I’m not in the trade for long. This is a lot less risky, for me, than buying puts for how much screen time i have during market hours.
I‘ve used SQQQ lately also, it’s nice to have a green day while the market is goes to shit.
That said, I’d never buy and hold this stuff unless the chart was giving me the go ahead on the 4hr/1D frames.
I have no idea about the housing market, other than it is and always will be a regional thing. I was fortunate I sold last May because the Vegas market has become stagnant. It was already slowing when I sold. I had actually wanted to sell last year. Anyway, like MG0h3 said above, prices need to and will come down as interest rates rise. I imagine it's always been that way.
My point was more directed towards addressing one of the reasons why stocks may flounder along for a while and/or drop even more. I was really just pondering about why that could be one of the reasons, along with inflation, rising interest rates, and fear. I mean let's face it: The markets were vastly overvalued for a while. They were due for either stagnation or a fall.
Rising interest rates are actually a good thing for entities whose investments are strictly cash equivalents, such as Social Security. SS has been bitching for years about how they are running out of money, and how the low interest rates, along with other parasitical people, were draining their coffers. The higher rates will definitely give them more cash.
Ah ok I read it wrong the first time. Thought you were saying folks would pay cash for houses and they'd go up again. When you just meant that particular cash wouldn't be tied up in the stock market. I do see how that could add up, and them also being skittish after this current downturn.
Do you mean pensions just in England or the U.S. as well?
I stopped playing the market
I used to be huge in this thread, and crypto
Now I let my crypto hold, and I’m done trading.
In 2020 it was every week a LOT of us were able to play. Take risks. There actually was reward.
Now? Nope. Just no.
Ouch. Sorry to hear. I'm guessing you had individual stocks and/or sector funds.
Good time to load on solid dividend payers. Companies that have been around 50/60 yrs aren’t likely to go away, so safe buy.
Not hard to find 12-13%. I’ve loaded about 100k into a few and will keep going a bit more.
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Which ones are you in?
BHP
MO
RIO
Only reason the dividend percentage is so high is due to the reduced share price.
They all popped up on some motley fool dividend aristocrat list that I googled.
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My IRA was down another $1,252 again today. It's been down every day for weeks now. The last time there was a rare "up" day, my broker sold my Eli Lily and JM Smuckers stock.... all of it. Made a 25% ROI and put over $21,000 back into my cash reserves. If my account value goes down another $107,000, I will be back where I started 12 years ago.
"Build Back Better" my ass.
"Build Back Better" my ass.
I was schooled years ago that if one cannot tolerate 50% drops in the markets your money should be elsewhere.My IRA was down another $1,252 again today. It's been down every day for weeks now. The last time there was a rare "up" day, my broker sold my Eli Lily and JM Smuckers stock.... all of it. Made a 25% ROI and put over $21,000 back into my cash reserves. If my account value goes down another $107,000, I will be back where I started 12 years ago.
"Build Back Better" my ass.
The timing of the drops matter, especially if you were counting on harvesting capital gains.
There's never an ideal time for a big drop unless you're out of the market. But if people were preparing to start tapping gains for retirement sustenance and it was too big a dent they should take a long look at their allocations. I'm still an advocate of moving money out of equities as you near retirement.
For the younger ones, a big drop is a wake up call to those who thought they would always get double digit returns from the markets every year.
I'm a firm believer in moving more and more into dividend paying stocks as I got older. Screw touching the principle, I want to live off of the income provided by the principle in an extremely diversified portfolio. The rotation this last year has been crazy, but I am only down 5% for my liquid portfolio.
The froth over on SA ahead of the CPI is insane.
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