Should I get out of the Stock Market?

I still have and play the sax. Wish I still had the JNJ stock though.
the silver, meh ...

 

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Absolutely not.

 

Excellent question, Adam, but not an easy one to answer. There are quite a few variables to consider. I guess my first questions to you are...

Why are you asking this question? What are your goals (college, first home, etc.)? Why aren't your investments in a tax advantaged account?

Is risk management your concern? Are you worried that the stock market is overpriced...or a currency crisis is imminent?

What advice do you get from your Mother/Father?

Btw, you've received a lot of good advice on this thread already.

"Park your money in a low cost S&P 500 Index fund and forget about it."

However, I suspect you're looking for a more nuanced response.

 

So it sounds like nice saxophones are better investments than silver! Haha

 

Whether or not one should sell stocks is really just a question of what stock it is. The market is up as a whole but that means nothing with individual companies. Are we talking shares of aAmazon/Apple/Google type company or shares of a RadioShack type. Being in stocks over pms is the right place to be. At your age I’d probably buy something like google or Amazon and you’ll probably be very happy in a few decades

 

I say stick to the market. You got a great thing going there. Maybe look at the companies you are in and switch around if you have to. When you get a little extra cash buy some coins every once in awhile, numis or bullion. Either one is cool.

 

Stay in stocks by all means! I'm pretty impressed that you have a nice start in building a stock portfolio at your age.

If I were you I would do some research and select 3-4 large cap stocks that pay dividends and have a good history of increasing them over time. You can buy company stock direct with a minimal transaction fee through Computershare (www.computershare.com). Stocks are listed both by name and stock trading symbol. Downloadable sign-up forms to start an account are also available. Since you are a minor, one or both of your parents will have to be on the account with you.

I'll give you an example of the power of reinvested dividends. In 1990 and 1991 my wife & I bought $18,000 in Exxon stock through Computershare and reinvested the dividends until 2006 when we switched to getting quarterly dividend checks. At current market value our Exxon shares are now worth about $125,000 and generate about $400 per month income for us.

Good luck!

 

Jeff Gundlach, top-notch bond manager and excellent commentator on financial markets, will be on CNBC in the Noon Hour today.

Will also be available on CNBC.com later today.

 

Adam whatever you do just don't fall for the nonstop silver hype. It will never do anything. There is probably 300 billion ounces of silver for sale and they make pretty much another billion a year. The hypers love to say - hey silver has been around for 5000 years. Yep they have been mining this garbage for 5000 years and it's all for sale right now. Don't fall for the most hyped, most losingest "investment" ever known to man and you will be ok.

 

And, Adam (if you're still here), when someone jumps into your thread with strident and oddly specific warning about what not to invest in, be sure to check their posting history. Also, if you do ever buy any silver, make sure you don't buy it from someone who will take your money and refuse to deliver. Right, @goldcollector? Or have you finally sent @Garlicus the silver he paid you for years ago?

 

"I only have about 2.5k in stocks. Should I sell them and buy PMs"

The correct answer is "It Depends"
If you own quality stocks eg, Apple, Microsoft, Alphabet, etc. then this market is a great buying opportunity. If you own low value stocks w/o a strong financial foundation then you should have bailed a two or three weeks ago. Of course, resort, airline, hotel, etc have taken a severe hit and will take a while to recover. The bad news is we don't know the severity or duration of the coronavirus. The good news - this is a "technical" drop in the market it is not due to a general flaw in the market. Always remember most advice, mine included, is worth what you pay for it.

 

Great long term buying opportunity there as well long term

 

No....quite frankly, you should be concentrating on bulking up your overall investment portfolios. Don't worry about shifting $2,500.

Save up !!

 

I wonder what the OP has done in the 2+ years since starting this thread?

 

When you reach the chronological age ( usually 60s or 70s)where you check the real newspaper to see if any of your friends or others your age took the final flight, you will be happy if you have a consistent income. It may come from work retirement plans, good long term investments, special skills such as artist, composer, etc. or inheritance.It is always nice to have a steady income whether you are working or retired. Best of luck. Jim

 

Strong companies with essential product have a great hit at stock market but you need to think not short time bur at at leat 5 years term. After the coronavirus and perhaps financial crisis stocks of these companies will recover so don’t buy.

Sell only stock of those with Not a strong business basis. With the money wait the stocks of good ones to fall and buy it. Crisis = opportunities. Many people become rich during crisis or war not when all is fine but you need cash. After it is up to you to decide.

Buying gold is not a good strategy as it is too high now and after end of crisis will fall, gold is Interesting only in portofoli9 management.

Buying expensive coins even at cheaper prices not at all a good idea. You loose always money in a hobby as a hobby like numismatic is a pleasure not an investment. The name dropping of some great collectors that have made a lot of monney is just marketing of exception and you don’t know the reality of what is behind great auctions results. I was in art market younger and I know how most of it is just a joke, many fake results.

Carryon the hobby with a very small budget and negotiate discounts very hard like professional will do if one day you want to sell your collection. Lower your way of life and accumulate all cash you can to take opportunities to buy good stocks at the lowest possible price per stock. Of course you need to know what you do.

 

Keep the stocks, but do keep an eye on them. Coins are not a great investment at all, especially now. I have many “blue chip coins” in my collection, and many of them have not done well in recent years. My “return” has been in the joy of owning them, not financial.

Why keep an eye on your stocks? Because a good stock today, even one that has been highly respected for many years, can go bad on you. My first stock was General Motors. Back in 1965 it sold for over $100 a share when $100 a week was a decent job. “So goes General Motors, so goes the nation” was the catch phrase. Thank goodness that was not true.

As we all know, “the old General Motors” went bankrupt. The stock and bond holders got nothing. When my mom was in a rest home, and I was taking care of her financial affairs, I sold my late father’s considerable GM holdings. She was angry with me, but it needed to be done. She assumed that GM would always be good. It wasn’t.

 

OP, I know this is an old post, but having an appreciating asset at such a young age is one of the best ways to build wealth. It does not need to be stocks, but land, rentals, etc work as well.

Precious metal is a way to hedge your main investments. As such, are not a great way to invest, especially now. I buy all of my PM when they are ignored and lower in price. Right now gold is getting a bump due to turbulence. The last gold I bought was 4 months ago, and even that was a coin I kind of wanted, (ultra high relief St Gaudens I got at melt).

Right now, sit tight on equities. Sell into strength later. People always want to sell after it has fallen, and are loathe to sell when it's going up, but that is the opposite of what you should do really. I posted here numerous times the last 2-3 years I was buying because it was a dead market, and that is when you both get lower PM price as well as lower premiums.

 

I believe the simple general answer at your age is you're more secure investing in stocks. The reason is knowledge/liquidity. In the past I invested in stocks, and studied P.M., but a half century ago the stock market was far more predictable, and uncontrolled, where trends allowed a repetitive gain. P.M. coins were sold through predictable venues.

The stock market is now a very volatile, but relatively easy medium for liquidation. P.M. products are less volatile, with minimal sources for secure liquidation.

I can generally predict if you purchase as others recommend, bullion products, you will lose a portion of your investment. The P.M. coin market now favors the intelligent established Seller who has a means for buying low, and selling high.

Buyers today generally haven't the same resources in the P.M. coin market, as in the stock market, having very limited outlets to control sales for equity retention.

JMHO

 

This answer may sound like I am deferring to your age, but that is not my intention, I give same answer to your age on up. Let it basically ride, watch it , but do not let it change you and get ALL of the EDUCATION you can with the great effort and drive going there. The majority of a " regular" person's wealth comes after becoming employed. Try to get the education with the least amount of borrowing and pick a field you love and can progress. Then you can start planning for your retirement, although if you picked correctly, you may never do that fully. Coins will always be there, Life opportunities may not.

Jim