Brokerage investors,step forward please and help!!
- Thread starter Hillbilly
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StoneHeartFarm
Veteran Member
Hillbilly,
Dont know much about fdegx. I've got mine in Franklin funds. They also are heavy in the tech sector. Biting the bullet big time right now. The only thing I know is that it has been drummed into my brain that something like 90% of all 5 year periods and 100% of all 10 year periods the stock market has made money. This is since the inception of the market.
My gut is telling me this is buy time. Everything is on sale and probably won't be this cheap ever again. People have sold off lots of stock to try and shield their investments, when they figure it's safe to stick their heads out, they'll go back into buy mode. It may be a dumb move, but I'm gonna sink some more into the tech sector. Lots of computer chips in cruise missles, tanks, planes, ships. Odds are we'll be using all that stuff real soon. I guess it all depends in how much faith you have in your fund manager and whether you're in for the long haul.
I understand the State of Michigan lost about a billion dollars from their pension fund when the market opened after the bombing. The next day they went on a buying spree.
SHF
Dont know much about fdegx. I've got mine in Franklin funds. They also are heavy in the tech sector. Biting the bullet big time right now. The only thing I know is that it has been drummed into my brain that something like 90% of all 5 year periods and 100% of all 10 year periods the stock market has made money. This is since the inception of the market.
My gut is telling me this is buy time. Everything is on sale and probably won't be this cheap ever again. People have sold off lots of stock to try and shield their investments, when they figure it's safe to stick their heads out, they'll go back into buy mode. It may be a dumb move, but I'm gonna sink some more into the tech sector. Lots of computer chips in cruise missles, tanks, planes, ships. Odds are we'll be using all that stuff real soon. I guess it all depends in how much faith you have in your fund manager and whether you're in for the long haul.
I understand the State of Michigan lost about a billion dollars from their pension fund when the market opened after the bombing. The next day they went on a buying spree.
SHF
DocHeb
Veteran Member
I'm not sure you want to get Brokerage Investor's advice. From what I've read, they're the main group that sold last week, causing the drop. For the most part, individual investors held on. Brokerage Investors have a vested interest in getting you to buy and sell frequently ("churning") because they make money on both transactions. They also have no long-term outlook since they have to show a good return each quarterly report, leading to frantic buying and selling trying to reach a good % return. I've heard that the majority of brokers don't even beat the index funds, such as Vanguard's S&P 500 index fund. I would echo the recommendation to read Peter Lynch's books "One up on Wall Street" and "Beating the Street". They have been out for a few years, but give timeless information.
cowboydoc
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Doc Heb,
You are exactly right. It is primarily these guys that fuel alot of the ups and downs. My grandmother was a financial broker. She loved the job but what she hated the worst was seeing people taken advantage of from buying and selling. The other brokers were constantly trying to get clients to shift from one stock to another or from this bond to that. When there were problems they were more than willing to sell everything you had. There bottom dollar like you said was not how well they invested for you but how many times you reinvested. She said alot of guys would purposely put people in something they knew they would take out later just to get the commissions. Now certainly I'm not saying they are all like, my grandmother never did this, this but you bring up a very good point on investing. They hate the guy that invests and leaves it there to grow.
You are exactly right. It is primarily these guys that fuel alot of the ups and downs. My grandmother was a financial broker. She loved the job but what she hated the worst was seeing people taken advantage of from buying and selling. The other brokers were constantly trying to get clients to shift from one stock to another or from this bond to that. When there were problems they were more than willing to sell everything you had. There bottom dollar like you said was not how well they invested for you but how many times you reinvested. She said alot of guys would purposely put people in something they knew they would take out later just to get the commissions. Now certainly I'm not saying they are all like, my grandmother never did this, this but you bring up a very good point on investing. They hate the guy that invests and leaves it there to grow.
PaulT
Gold Member
Don't hold too
much stock in your own company. It's always tempting to do this because it's the company you know most
about ...
But, if you get fired or the company lays you off during a slump in the market then you will have been hit
twice.
When I worked on Wall Street, one of the bond traders I knew referred to this as the "texas Hedge" (No offense Bird, or any other Texans)
PaulT
much stock in your own company. It's always tempting to do this because it's the company you know most
about ...
But, if you get fired or the company lays you off during a slump in the market then you will have been hit
twice.
When I worked on Wall Street, one of the bond traders I knew referred to this as the "texas Hedge" (No offense Bird, or any other Texans)
PaulT