questionable buying philosophy
- Thread starter Smiling JOe
- Start date
-
Trouble logging in? Send us a message with your username and/or email address for help.
This philosophy is used for stocks which have good fundamentals (i.e., will support continued growth) but are believed to be currently overpriced.
The pundits are expecting folks who've gotten in early in the stock's run-up will take some profits off the table by selling off shares--and, if enough do, the price should come down to a level where they will be "fairly" priced (in line with fundamentals) or "value" priced (below fundamentals). At these levels, the stock is essentially "on sale" and investors who buy in at this lower level can reasonably expect returns on their investments while those who've bought in while the stock was "overpriced" are still trying to recoup their losses.
<p.s. "Round Lot" is 100 shares of stock....not a circular piece of real estate. Altria 'was' Philip Morris....not the name of a new subdivision.>
Oh looky-looky, the stock market has crashed again. Do we have a melt down in the RE market Shelly? All it takes is a little bad news or a crooked CEO geting caught "cooking the books", and things just go "tumble-tumble". I think I will sit back in my beach chair and open a cool one, watch the stocks tumble further while the Florida RE market starts heating up. :clap_1:
Seems to be the news of the day on my Real Estate hotline.
Now don't clap too loudly, as I lost a lot of money today..
I love our real estate market and since I have an invested interest and will be selling a beach parcel in the future, I obviously want it to do well to!BTW I bought more stock today after the slide........
This afternoon was a good time to nibble on some Altria, Johnson and Johnson, Bank of America, General Mills, Procter and Gamble and a lot of other great blue chips. These companies don't "cook the books" or have crooked CEO's. I suspect you will have ample opportunity to pick up some stellar buys in the next two weeks but don't procrastinate. You get 3 or 4 good opportunities a year to buy stocks......this is the first opportunity !! This was a long overdue correction and the China and Greenspan news was just the excuse. Fundamentals are still good and the sub prime mess will be contained. No one knows when the correction will be finished running its course but if you are a long term investor now is the time to start nibbling. The momentum guys get killled on these sell offs because they happen so quickly and ferociously they are like deer in the headlights and they are stuck holding stock they bought "at the highs".
TooFarTampa
SoWal Insider
OK, I don't follow these things as closely as I probably should. I know you do so I will ask:
We are about to start a 529 for our baby daughter. It's not a huge sum but obviously I'd like to buy low. When to pull the trigger? Tomorrow? Wait a day or two? A week?
With my oldest son we were getting ready to start a 529 with the profits we took from the sale of our home, but it was hard to feel comfortable because the Dow was dropping every day. It was mid 2002 and we waited till the market rode all the way down, and bought after the first bounce. How far might we have to ride this one?
I've been expecting the economy to start cleansing itself sooner or later.
No worries....just illustrates the point that diversification is the way to go. No one should be "all in" whether it comes to dot-coms or dot-condos.
As for waiting for FL RE to start heating up...you'll be glad you bought a chair.
.
Last edited:
I don't know a heck of a lot about the mechanics or tax advantages of 529's because I don't have kids or grandkids, but I do know that if you are buying with a 15 or 20 year horizon, NOW is the time to invest that money and add to it as often and as comfortably as you can. Since these investments are for the benefit of young children, I would contact Vanguard or one of the big Mutual Fund families and put the money in a mix of large cap, mid cap, and small cap growth funds. There are many resources on the web where you can research what you need. Many big mutual fund complexes will let you start with less than $1000. So start now and contribute regularly. You will be very happy, and so will your kids !!!
You have an incredible quick sense of humor.
I do not know about "FL RE heating" up but 30A area is doing great. I personally have been very busy. I have talked to several agents who are swamped. One agent I know of is having his best month ever! I do not know where you get your info but it definitely is not from the local streets.
The stuff going under contract is priced to sell and buyers are standing by grabbing it as fast as the price gets right.