As of today officially out of the stock market, buying BTC and PM,S

Is today a day for buying, selling, or holding?

 

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Everyday can be a winner…LOL but over
the last year have averaged $3,400 a month so not to bad

 

Let us know when you're willing to make a firm statement on what you're doing, as opposed to presenting calls that were right in hindsight.

 

I don’t tell what people to do as I might
get shot…LOL , only posting my results

 

Sounds like the casino gambler that always tells you about their winnings, never their losses.

 

All I can say is the proof is in the pudding
this isn’t Rocket science, and it’s not
that hard, if I can do it anybody can

 

I know, I didn't have a back up argument for that one, on forums they are only retort's right?
@-jeffB
Looking back at my statement. There are many young investors today that can back up that kind of money, I believe that the initial investors get paid in that amount of time, but not every investor.
We are sitting on many a rich petroleum reserve. There is zero reason that you should make your people suffer/even in the slightest. That oil/and gas is ours.
Everything today is made from one natural resource or another. Even our food and nearly every farm needs the help. Not to be an alarmist, but there is a lot of under cover loving going on.

 

I believe that longer-term small cap value and emerging market value represents great value. Emerging market bond funds, too.

Accumulating a wish list of mutual funds that specialize in those sectors.

A firm I track believes those are the only asset classes that present decent/positive returns going forward.

 

Facebook/Meta continues to crack.....

 

Microsoft and Google tanked today. Probably could be Apple's and Amazon's turns tomorrow. Obviously, tech has had it as a leadership group. Where's the new leadership going to come from?

 

MSFT had a pretty crappy day too.

 

Big shots tank harder.

 

You prefer mutual funds or ETFs?

 

Both....most ETFs mimic indices but in the bond arena that's not a bad thing to have if you want broad exposire (i.e., AGG).

However, if you want to avoid heavily-represented segments, that's a case for active management and traditional mutual funds over ETFs.

 

The market has been spotty, more on the down side then anything else, really looking for a big change this week if we get it, theres going to be a big turn around
if not will continue to go down this broken road

 

The bond market is giving you the buys of a lifetime.

Literally like shooting fish in a barrel.....like buying stocks on October 20th and October 21st, 1987....you can't buy anything bad/wrong (except maybe CCC or BB- rated debt).

 

Hey GF'69, how about a brief lesson on bonds? I'm very well versed on the equities market, but the bond market is somewhat foreign territory for me. Any tips, tricks and suggestions?

 

Bonds are ruled by math. The most important rule is that bonds and interest rates are INVERSELY related...when yields go UP, bond prices go DOWN...when yields go DOWN, bond prices go UP.

Yields have gone up across the curve (time spectrum) this year so prices are down a ton.

Bonds have 2 risks: duration and credit. Duration is basically maturity....if you invest in a 3-month T-Bill, CD, or money market fund (MMF) you don't lose money because it re-prices in a few months. If you invest in a 10-year bond like last year at 2.5% and the yield today is 4.15%, you're down a ton.

If you HOLD TO MATURITY, then you get your money back. But if you have to sell or if you view your statement, you're down or up whatever the price has moved. So asuming no default, if you don't sell, you get your initial investment (face value) back at maturity.

CREDIT RISK is the risk of default. This results in loss of principal. Investment grade bonds rarely default; high-yield or junk bonds often do.

Bond funds are good ways to DIVERSIFY credit risk and capture high yields on various investment without betting the farm on 1 maturity or 1 credit.

 

What is interesting is that if you punch up a 5 year or longer chart of any bond fund....you see the 2 big drops in 2020 (Covid) and 2022 (rising interest rates, duration).

These are 2 separate issues....2020 was a CREDIT issue (recession/GDP collapse) and 2022 was a RATE issue (interest rates up). Ironically, they each produced the same big percentage drops in many bond funds even though for totally different reasons (and now that rates have continued to go up, the 2022 decline is eclipsing the 2020 one).

I always tell prospective investors to know the nature of the bond fund they invest in....the simple quick way is to see how it performed during 2022...2020....and 2008-09 (need to go back further to see this but still possible).

 

Please correct me if I'm wrong. You mention about yields going up and prices going down and vice versa. My understanding is that yields are a product of rates? So if rates go up, prices go down. And if rates come down prices will go up. Talking about yields is something we don't actually see mentioned by the Fed. They talk about raising rates, not yields.

So buying bonds now seems good for prices. However, if rates keep climbing, as expected, the prices will come down more. Potential losses if you need to sell sooner rather than later. Does that sound right?

Do you have a few bond funds you like, just to get me looking in a certain direction? I'm so lost knowing what to even look at. I'll definitely do my due diligence, but a starting point would be helpful. I've invested in equities and equity funds for so many decades this is a bit new to me.