well this morning i bought my first set of stocks since 1997 or so  then got wiped out in the dot com bubble LOL

I am up 142.00 dollars for the day..  when i look at all these companies trading at 52 weeks lows and 1.3 of highs

I got to think there is some room to run here over the next few years.. and diversify out of real estate..

And i am talking small money by the way  LOL..

I think there is certainly lots of opportunity in the market. Invest in companies with good balance sheets and companies that you know won't need a bail out and will be here in the in the future. Don't buy on margin and only invest with money you don't need for 10yrs. Scale into things.  I see lots of lots companies way oversold. Doesn't mean a bottom but when you scale into things you have ammo to play with. No one knows the bottom but you really don't need to predict that to make money. 

Agree...I’m buying some as well. You have blue chip companies like CAT, 3M, JPMorgan paying 4% Dividends or greater.  It might Not be the bottom, but trying to buy the bottom is fools game and we are definitely closer to the bottom than a top.  Good luck 

Originally posted by @Frank Wong :

I think there is certainly lots of opportunity in the market. Invest in companies with good balance sheets and companies that you know won't need a bail out and will be here in the in the future. Don't buy on margin and only invest with money you don't need for 10yrs. Scale into things.  I see lots of lots companies way oversold. Doesn't mean a bottom but when you scale into things you have ammo to play with. No one knows the bottom but you really don't need to predict that to make money. 

Ok I know a little about real estate but not much if anything about stocks..  why companies with no bail out.

Boeing  and the airlines..  ? At least the big 3 or 4.. 

like to know your thoughts on the matter..  

 

Originally posted by @Randy Bloch :

Agree...I’m buying some as well. You have blue chip companies like CAT, 3M, JPMorgan paying 4% Dividends or greater.  It might Not be the bottom, but trying to buy the bottom is fools game and we are definitely closer to the bottom than a top.  Good luck 

ya I was looking at CAT as well..  how about Weyerhouser 52 week low.. Millions upon Millions of acres of timber ground. ?

 

@Jay Hinrichs

Companies that need a bail out have a major cash issue major corp debt issue.  Could go to zero. Risk is extremely high. I asked a good friend of mine who runs a Hedge Fund and I asked him about BA he told me it can go to zero. Doesn't mean the company goes away which won't happen but can mean stock gets killed. AIG comes to my mind.  I am not a stock expert but I listen to ppl who know this space.  Im a real estate guy =). 

I'm down almost 40% for the year. Was up 30% for last year. I'm still maxing out 401k, but holding back cash in my brokerage account. Not pulling any out, but not putting as much in.....yet. The markets are not at the bottom yet. I'm looking at the DOW to hit 14,000, and then I'm pumping up that account with whatever "extra" cash I have. Of course, the reserves for the rental properties are stable and still staying put. In my very uneducated and personal opinion, it's going to take 4-5 years to get the DOW back to what it was 45 days ago. 

I think in the short term (within 60 days) we are likely to see an S&P level of 1900, and I think we will see a bottom of around 1500.

However, I also believe you cant time, or even predict this stuff even though I just made a prediction.  Understanding I am not Nostradamus, Ive already started purchasing, and will continue to dollar cost average down for up to a year if we keep going lower.

Im spreading out my purchases among safe dividend stocks I already have positions in where the yield is very attractive like KO, AFL, CL, then making some smaller riskier purchases where there is high upside (but also the possibility of the companies going bankrupt) like Reology, Royal Carribean.

Originally posted by @Jay Hinrichs :

Originally posted by @Frank Wong:

I think there is certainly lots of opportunity in the market. Invest in companies with good balance sheets and companies that you know won't need a bail out and will be here in the in the future. Don't buy on margin and only invest with money you don't need for 10yrs. Scale into things.  I see lots of lots companies way oversold. Doesn't mean a bottom but when you scale into things you have ammo to play with. No one knows the bottom but you really don't need to predict that to make money. 

Ok I know a little about real estate but not much if anything about stocks..  why companies with no bail out.

Boeing  and the airlines..  ? At least the big 3 or 4.. 

like to know your thoughts on the matter..  

 

Bailout will not always save the shareholders. When GM received their bailout money, it was accompanied by bankruptcy restructuring...the pref holders and bond holders got pennies on the dollar. What do you think will happen to equity holders who are further down the waterfall? Not hardly a drop...  Of course, this was an extraordinary time and the President came in and decided to rewrite bankruptcy law (help the union and screw the equity holders as well as the bondholders who thought they were buying a secured loan).

With that said, this is an extraordinary time and opportunity to make some serious money in the stock market. I got my start in real estate over ten years ago due to the simple fact that I made so much in stocks, I was able to afford the downpayment on several properties...some purchased with all cash, because I was sitting on so much in stock market gains right after the great recession. It's a good time to have a lot of dry powder.

Originally posted by @Russell Brazil :

I think in the short term (within 60 days) we are likely to see an S&P level of 1900, and I think we will see a bottom of around 1500.

However, I also believe you cant time, or even predict this stuff even though I just made a prediction.  Understanding I am not Nostradamus, Ive already started purchasing, and will continue to dollar cost average down for up to a year if we keep going lower.

Im spreading out my purchases among safe dividend stocks I already have positions in where the yield is very attractive like KO, AFL, CL, then making some smaller riskier purchases where there is high upside (but also the possibility of the companies going bankrupt) like Reology, Royal Carribean.

I bought a few of the Vegas Casino's same thought as the cruise.. but I cant see these building getting mothballed LOL

 

There is no compelling story for stocks.....yet. All the stock market gains from 2012 has been driven by stock buybacks, not earnings, productivity gains. Bailout packages currently include no buybacks for 2 years (republicans) or end buybacks altogether (dems). That means stocks go nowhere in short term.

There have been plenty of zero gain decades in market history and this would be a prime place for one of those to begin.

Individuals with ACTUAL earnings and dividends, yes,Especially if buy and hold for the dividends and price paid is not a hugh factor in a ten year hold, otherwise total market etf's, passive vehicles etc NO! 

I wouldn't be surprised if it's still got a bit further down to drop. But eventually, you're right, I suspect it will come back fairly strong. While we were due for a recession anyway, this type of dip is too much to be any sort of new normal. 

Stock markets awesome if you know what your doing and more important versed in what your investing in.  Its no different from real estate investing but you can stay home and your investment is 100% liquid unlike Real Estate. Many dividend payers of good companies right now are paying 10-20% and more which is far better then any RE returns. As in any portfolio diversity is best. You don't want to be saturated in any one sector or investment.

Go big, stocks are at a major discount now just like real estate @ the last crash

Hi, what companies you recomend to invest right now, and what platform you use?( i know there is always risk) Thanks for any advice.

@Frank Wong Hey Frank- not all companies lining up for a bailout are in a cash crunch. A lot of them are seeing other industries get virtually “no strings attached” piles of cash and are thinking “I want a slice of that $2 trillion piece of pie”. Just FYI

Originally posted by @Will G. :

There is no compelling story for stocks.....yet. All the stock market gains from 2012 has been driven by stock buybacks, not earnings, productivity gains. Bailout packages currently include no buybacks for 2 years (republicans) or end buybacks altogether (dems). That means stocks go nowhere in short term.

There have been plenty of zero gain decades in market history and this would be a prime place for one of those to begin.

Individuals with ACTUAL earnings and dividends, yes,Especially if buy and hold for the dividends and price paid is not a hugh factor in a ten year hold, otherwise total market etf's, passive vehicles etc NO! 

If you believe what you wrote above I would advise not investing in the stock market as you dont understand it.  Companies do not have endless cash to buyback shares, they need to have earning to create cash and there has been plenty of productivity over the past 8yrs.  Now I am not huge fan of buyback either, but they are not as evil as everyone makes them out to be...they decrease the share count which means me as shareholder I own more of the company.  Companies can invest in their business (factories, RD, Marketing) pay dividends or do buybacks....most do some of all three.

 

now watch Jay become a day-trader (since Vegas got shut-down) lol "little money" probably means 25 large haha

p.s futures almost 3% green (for a change) right now. 

@Jay Hinrichs Retail REIT's such as reality income and Federal Reality are trading at bargain prices. I bought into Tangers Factory Outlets on Friday and hedge them with put options.

I'm still relatively new at RE...so can't give advice there... but I spend a lot of time in the stock market (many hours per day writing about stocks/options/gold etc.)

Right now is NOT a good buying time for stocks for small-time investors. This is a good trading environment because of the high volatility. (options especially)

Currently, we just hit the highest volatility EVER RECORDED...even higher than in 2008. Volatility records the expected movement of stocks. The higher it is, the wider the range. Right now, we're still above 60 on the volatility meter. And today, we saw something major...

Volatility went down...and stocks ended 3% down. That hasn't happened in over 10 years. Usually, volatility has gone down when stocks went up (because we were in a bullish market). 

Right now, you're "catching a falling knife" as they say. 

Everyone right now says "oh, stocks are cheap, buy now." And some are cheap. 

Here's the issue...take Delta Airlines. They're in the hole...down over 70% in over a month. Sounds like a good buy? Well, airlines are highly leveraged industries...even if they do get bailed out...they could still go through bankruptcy (again). If you look at the last time they went bankrupt...their stock went from $20 down to $5 (a 75% drop). 

Well...they recovered...but they never hit that $20 price point again until 2013. (4 years later from the drop)

And that came with some heavy stock buybacks which propped their stock price up. (Congress won't let that happen again). 

As RE investors, we want a return on our money every year. Well, if history happens again...with some of these industries that need recovery...you could be sitting on dead money for a few years waiting for a return. 

***
During a bear market, there's an initial 'shock' drop. Then a rapid advancement back. 

Then...there's another drop that goes even deeper. It happened in 2018 (a correction), 2008, 2000...

We are still in the shock drop. We'll see a 10%+ rebound soon. Another drop will follow that's deeper. It's at that last drop you want to buy the companies that will bounce back fast. 

Yes, buy the companies in travel and entertainment (like Las Vegas), of course bank stocks, at that time too...invest in the ones that have the solid foundation to continue again. Last time airlines crashed, there was a lot of consolidation. Same with banks. 

Watch and wait for that to play out. 

We all want to 'get in at the bottom'...the stock market isn't going to pop 100% in a day. 

You'll get a sense when the bottom is in once the shock is gone...and you start seeing positive economic signs. You'd rather be 3 months late from the bottom than 12 months early.

Also, you'll want to wait until the VIX is below 35 because then you know the markets have calmed. (You can go to CNBC.com and it's on the very top to see it)

@Joe Cassandra   well you just blew me out of the water  LOL.  i did not buy Delta though.

I will tinker around and then see how it goes.  But i have to think there is going to be some folks make a lot of money in this major pull back.. UNLESS of course you think the market will basically never get back above 20k or so. ?

@Jay Hinrichs

Ive been buying! A lot of undervalued stocks that will only go up from here.

Very interesting watching certain REIT's tank and seeing the airline stocks in absolute red.

"We study Billionares" T288 podcast, listed to it yesterday. For a market idiot like myself they give a good breakdown. One of the hosts said he switched all of his holdings to cash and bitcoin lol

Originally posted by @Jay Hinrichs :

@Joe Cassandra  well you just blew me out of the water  LOL.  i did not buy Delta though.

I will tinker around and then see how it goes.  But i have to think there is going to be some folks make a lot of money in this major pull back.. UNLESS of course you think the market will basically never get back above 20k or so. ?

:)

Can't help too many on here with RE yet with only a few deals under my belt...but I can talk the stock market. Have traded part-time on the side a couple years. Done okay-to-average. Trading takes more time than you think. 

It's okay to nibble, so I shouldn't say "DON'T"...and sounds like that's what you're doing , Jay. Just don't want anyone here to think they should push their chips all in (as I've read that on a ton of FB forums). Stocks will drop again. 

They'll get above 20k again once we're coming out of the bear market and recession. 

If that's in 2021. Great!

 

@Joe Cassandra

You said it best...massive volatility. TVIX was $38 bucks about 10 days ago. It hit $1000 about 10 days later late last week. It was the payday of paydays of 2500% gain. As they say on Gas Monkey Garage "Get you some of that"