/biz/ - Business & Finance

If there is one thing I've learned from the chart game it's that buying and holding is pretty much always successful over time anyway, so it doesn't really matter as long as you don't pussy out and sell when you're making a loss. 100% cash is pretty stupid when you could be making intelligent buys to combat inflation, at the very least.

>100% cash
>missing out on gains
>not understanding how to ride out a correction
Stay pleb.

A strong cash position is only for those who really know what they're doing. You are not one of those people.

>>464521

>missing out on gains

lel. You mean I'm missing out on the losses about to head your way very soon.

>ride out the correction

O gawd, take a look at japan. That is what is coming mate.

>>464517

>you could be making intelligent buys to combat inflation

Implying I own worthless USD. Try using a currency that isn't being flooded with QE money.

>>464528
>Japan. That is what's coming

lol k m8

>>464528
>>464531
Either troll or retard.

>>464533
>>464535

>>464538
So troll. Got it. Into the trash it goes.

>>464514
Hey man, I'm making 3-8% a year on average. I'm doubling my money every fifteen years. Back off.

>>464514
some stocks don't give a fuck.

>>464538
I like to do them in ascending order. By the time you get to refutation they are going to be mad as hell.

>>464563
which security is that? .... out of interest

>>464514
>tfw 100% cash
No one on /biz/ is impressed with your roll of 20's.

>>464554
You guys really do sound like stupid plebs if you don't like index funds.

Fuck, look at some statistics.

>>464514
You've missed out on a huge bull market for the past 5 years. Congrats.

>>464585
Some of us were too young/poor to invest at the beginning of this bull market.

I am just getting started. My only positions are 5k in cash, 2k in American Apparel, a highly speculative 1k in Phorm, and ~15k in my IRA.

I'm slowly adding funds to my brokerage account for if/when it happens. I'm rooting for a crash, but I also remember the downturn my parents business (my employer) took during the last one. We are doing incredible now and any down turn in the steel/freight industry would be disheartening.

>>464592
>I want the economy to crash so I can maybe double my $5000
>lol my parents' business would suffer tho lol at least I've got another $5k

Are you 13?

>>464585

5 Years ago you would have had no information about QE infinity.

So what he missed out on was taking a massive risk, which this time has resulted in a massive reward.

Of course, that assumes that he could exit the market at the right time to realise that reward, right now it is just paper. Exiting before the bust requires a certain degree of risk aversion, which anyone who took the punt 5 years ago probably doesn't have.

There is probably no person with the right mindset to enter when things look bleakest, exit when things look rosy, and be right about it every time.

>>464618
You had 4.5 years to get in. Its not a single entry point but MANY MANY screaming buys.

Also unless you are a fund with over a bil in assets or you're playing with penny dreadfuls, there's always PLENTY of time and liquidity to get out when shit hits the fan.

OP's chart is wrong.

>>464574
I like index funds, but an active investor can "beat the market" if he applies himself.

Take a hypothetical portfolio that comprises of an index and remove the 5 worst performing, debt laden shit companies. Good chance that new portfolio will beat the index.

>>464734
>there's always PLENTY of time and liquidity to get out when shit hits the fan.

2008 was a once-in-a-lifetime (there's a life-altering bet for you - was it a once-in-a-lifetime fuckup, or will we see shit like this more often?) clusterfuck.

The problem with your presumption is that one knows when the shit hit the fan. The Fed didn't even know how bad things were until it was nearly too late. Would it be contained at Bear Stearns? Would it spread? How bad was the run on Wachovia? (I saw people lined up at ATMs, it was fucking insane.) Would the globally-coordinated rate cut fix it? (no) Would the $700B fix it (yes, but it didn't get passed on what should have been a rubberstamp vote from Congress because they're fucking assholes, so the markets dropped a few thousand more points to some fucking Congressfucks could get some more fucking pork for their districts, can you tell I'm still bitter, six years later, after having bet the wrong way on that vote? :)

My point isn't to rant about /pol - it's that every buying opportunity turned into another market rout. Until the last one sometime in 2009, didn't. QE, when it finally started, looked like "just another doomed-to-fail buying poortunity" too. (QE2/3 were far enough into the recovery that they were one-way bets to the upside, but QE1 was much less agreed upon as a one-way bet while it was being debated.)

Calling tops and bottoms is hard. Yes, Based Ben Bernanke saved us, but even he was operating beyond the limits of any "normal" economic fundamentals.

>>464770
>Yes, Based Ben Bernanke saved us

still room to the upside

>>464563
>buying a penny stock
>Look guys it went up

You're an idiot.

>current rally is defying trends of previous two rallies
>this one is the same

I'm just saying

>>464734
>there's always PLENTY of time and liquidity to get out when shit hits the fan.

So you're counting on someone else being stupid and buying as you're smart and selling.

The psychology of the moment tends more to be "It's down a little. I'll sell when it bounces."

>>464770
>Would the $700B fix it (yes, but it didn't get passed on what should have been a rubberstamp vote from Congress because they're fucking assholes, so the markets dropped a few thousand more points

If the $700 B fixed it, why did the Fed have to drop rates to 0% and then QE1-3? And that $700 B is on top of multiple smaller bailouts to GM and others.

Also, - government picking winners and losers - my God, you fascists are fucking stupid.

>>464517
Tru

>>464929
>The psychology of the moment tends more to be "It's down a little. I'll sell when it bounces."

Nah, the current market psychology is "Buy the Fucking Dip"

>>464748
Well when you can research every single company on the index, constantly re-balance, avoid the fucking thousands in trading fees, I'll put my money in your fund m8

>>464734
a very good piece of advice I received about the market is "knowing when to buy is easy, knowing when to sell is difficult"

and what was meant by this is that, just because you figured out it's a good time to sell, everyone and their mother's now knows it's not a good time to buy. so you're stuck.