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Are you starting to invest in stocks again? nm(6 posts)

Are you starting to invest in stocks again? nmBruno S
Jan 23, 2004 4:26 PM
Never quit. Not that you necessarily want to follow my advice...Cory
Jan 23, 2004 8:48 PM
Except for a couple of really obvious dogs, I pretty much let everything sit where it was, and it's pretty much recovered. I don't pay enough attention that I was sure I'd make things better by fooling with it, and selling for a lot less than I paid wasn't very appealing. I have diversified more in the last year or two, but I have a couple of relatives working in Sili Valley, and watching them during the boom made me nervous enough that I didn't have a huge portion of my money in high-tech anyway. That bubble just looked awfully thin. Of course, one of them timed it just right and is retired on Maui at age 47 now....
Ain't timing great when it works for you?dr hoo
Jan 24, 2004 5:15 AM
I have a friend who sold a brokerage in California in 1999. Wacko guy, but he had a spotless record with the SEC, and since it was 1999, he got HUGE money.

Like you, I never stopped. I don't pay all that much attention to most of the market investments, given that I have a 30 year time frame. My mutal funds (monthly pretax dollar contributions) are doing well lately. I doubled my contributions to it after I thought the tech bubble had mostly finished bursting, which was September 1 of 2001. How is THAT for timing?

I am only holding 2 individual stocks now (and that is my VERY high risk capital). One is a beat down telecom, the other is a beat down pharma.

I am mildly biased towards a positive market for the next 6 months. But I also have some pretty tight stop-loss orders in place to protect my recent gains. Then again, I was neutral 6 months ago, so what do I know?
re: Are you starting to invest in stocks again? nmSoldier-of-Rome
Jan 25, 2004 6:15 PM
I did some analyses on hi-tech, biotech and pharmaceuticals and bought everything I could that had a $4 or less pps. Almost everything I bought has doubled.
Maybe its time to sellmoneyman
Jan 26, 2004 9:50 AM
When the subject of stock selection comes up on a bike board, it may be time to sell.

Individual investors have a horrible sense of timing. In a study done by Frank Russell company (the index people), from 1998 to 2000, after returns on the Russell 1000 Growth index averaged about 30%, people poured money into growth stocks - buying high. After the markets turned down in 2000 and 2001 and averaged about -30%, people yanked their money out of the market - selling low. The truly disturbing thing is what people did with the money they had left - they bought bonds. Bond values go up as interest rates go down, so these same people were buying into a bond market at all time highs. They did this because trailing returns on bonds had been very good as interest rates fell in those years, and they were chasing returns like they had done in the equity markets previously, buying high again. That's a pretty simplistic explanation, but you get the drift.

There is a lot to be said for NOT following the crowd.

At least, convert to ST or cash right now. OpportunitiesSpunout
Jan 26, 2004 10:02 AM
are slim as the market is pretty well fully valued. Correct, when people were selling houses and Porsches, I was buying. Then again, I'm always buying.

But, allocation is the key.