Doesn’t an s&p 500 index fund take the rebalancing out of it? Also, believe the average rate of inflation over the past decade is less than 2.
1 Like
Sure a fund would then you have to take into account their fees. I’m not saying it isn’t possible and over the last 10 years it’s even more possible. But going from a historic perspective it’s not just a guaranteed given. Timing is important too. If you started in 2004 then lost half in 2008 it took much more time then someone that started in 2010 to realize those gains.
And yes cpi is 2% CPI doesn’t include food and energy and it’s overweight towards urban cost of living.
Most urban families don’t have 2-3 children to feed and a commute to work so you can see just from that example CPI falls short for a large number of families and what they truly see in lost purchasing power each year.
1 Like
Alright so I sold NFLX. I told myself that if we got one more good bump in tech that I’d take my profits and rotate.
Now that I’ve sold, NFLX is now going to 
for the rest of the week. All NFLX holders can thank me
6 Likes
Watch it keep going into tomorrow 
I was nervous about earnings and sold most of it prior to (
) but as soon as I saw the bump, I knew it was time to get out.
1 Like
Pretty sure NFLX always tanked after earnings so it is cool to see a reversal, i think the bar was set pretty low this time so it wasn’t too hard to beat.
1 Like
Nflx and most tech will keep going to the moon regardless of rationality, until it doesn’t anymore. At the end of the day you can’t be upset for locking in profits. If you believe in their business model there will be down days to get back in. Nflx is historically a roller coaster so best to set it and forget it if you have a long time investment horizon on it.
None of these stocks make any sense to value investors. But they are cash registers for now, especially with Hollywood taking a dump.
Are there any stocks out there that still make sense to value investors?
Feels like value investing is a dying breed in ”print-to-infonity-and-beyond” world
4 Likes
There’s still a good amount of dividend paying stocks out there I like. I liked them a lot more 6 months ago though. Adjust your p/e for inflation and possibly some companies still make sense.
Most aren’t us based however.
2 Likes
6 months ago was a once in 10 years fire sale the way I see it😂
3 Likes
VXX, the bubble has to burst sometime.
Depends on your definition and preference. I’m thinking “established/stable/dividend-paying”, and not at their highs (some closer than others). Some random things you could look at:
Staples: Coca-Cola, Pepsi, Kimberly-Clark, Nestle, mcDonalds, Diageo, Dunkin, Starbucks.
Health: Pfizer, Medtronic, J&J. Pick your insurance company.
Retail: Walmart, Costco (Amazon doesn’t pay dividend and is as much tech as retain)
Also tech-ish staples: ATT, Verizon, MC, Visa (payment tech though is it’s own obstacle course). Utility companies.
I’m sure other sites do a better job of helping you decide what to put on the dart board, and then the obvious stock picking places can help choose specifically.
2 Likes
2 Likes
You basically just named 50-60% of my non speculative retirement account allocation! I’m all on the dividends in my old age of 38. I don’t have the risk appetite anymore, besides my krypton
5 Likes
I own several of the names I mentioned, but yeah when Slava said value stocks I wanted to give pointers. Slow and steady cashflow
I obviously have tech, and Microsoft (which is older and pays dividend) is not Amazon when it comes to long term investment.
And I have much more risk in my after-tax than retirement accounts. But funny enough I take different risk in retirement: I do own Boeing there, not in my after-tax (Boeing I think will be fine in long run, not trying to time the in/out).
2 Likes
Hehe, me being 41, you are to some degree the other part of me being in the book rich dad, poor dad😂 I’m still learning all about all that. Ugh😁
2 Likes
At least with that… You might wait a fairly long time given incoming administration wish to inflate and plan to do another round of stimulus.
All of would go into stock market. At least that was the scenario post 2008 with all those QE… They just call them now differently.
I agree it might be awhile and this is only a side play. Others have covered the more obvious picks.
1 Like
It will, it always does. Signs of a bubble are showing up everywhere. For anyone to believe this is a natural market environment is completely foolish. The music always stops and when it does its never pretty. Stocks are literally up multiple 100s of percent and even thousands of percent from march 2020 lows, how anyone can possibly believe this trend can go on and on and on and on is not thinking wisely. There is a time to take money off the table and the time is approaching very soon. Greed is insane as people are buying anything and everything. New investors are joining in by the thousands each day. I know about 20+ people who never knew what a stock was prior to 2020 trading now in Robinhood accounts. To me this isn’t normal, for others they believe this to be a natural stock market environment. I would bet about 80% of this forum right here are all new investors from the last year or 2. Once this bubble bursts many will walk away with nothing. Dont be an idiot. Take profits and keep plenty of cash ready to deploy when the markets fall by at least a third. Its going to happen as it always does.
2 Likes
I’ll be all over the vix that first 5-8% down when I wake up and see the blood. Until then I’m riding the trends as usual. That whole solvent longer then rational cliche is so true.
3 Likes