(07-31-2019, 10:15 PM)mikesez Wrote: [ -> ] (07-31-2019, 03:40 PM)Predator Wrote: [ -> ]When you open an advised account you are required to sign and return a Client Management Agreement that discloses fees and commissions. We can not make any investments in the account until the signed form is returned.
So what changed about that under the rule that Obama enforced on 2016?
Nothing. That requirement has been around for decades.
(07-31-2019, 10:22 PM)mikesez Wrote: [ -> ] (07-31-2019, 05:05 PM)Predator Wrote: [ -> ](like our engineering friend that doesn't understand what a mutual fund is)
I know exactly what a mutual fund is.
A broker creates a fund, invites you to invest in it, and he puts your money into a mixture of stocks and bonds that he chooses.
You might know that guy personally, but more often, you do not.
Or, you may be advised, personally, by another person who works for the broker or accepts a commission from that broker to invest in that fund. Such advice may or may not be in your best interest. Hence the problem.
LOL. Your mind is probably blown away by what an ETF is.
Here's a little hint. A mutual fund is not really what you think that it is.
(08-01-2019, 06:17 PM)Predator Wrote: [ -> ] (07-31-2019, 10:22 PM)mikesez Wrote: [ -> ]I know exactly what a mutual fund is.
A broker creates a fund, invites you to invest in it, and he puts your money into a mixture of stocks and bonds that he chooses.
You might know that guy personally, but more often, you do not.
Or, you may be advised, personally, by another person who works for the broker or accepts a commission from that broker to invest in that fund. Such advice may or may not be in your best interest. Hence the problem.
Lol!
Which part is wrong? Tell me your definition.
(08-01-2019, 06:52 PM)jagibelieve Wrote: [ -> ] (07-31-2019, 10:22 PM)mikesez Wrote: [ -> ]I know exactly what a mutual fund is.
A broker creates a fund, invites you to invest in it, and he puts your money into a mixture of stocks and bonds that he chooses.
You might know that guy personally, but more often, you do not.
Or, you may be advised, personally, by another person who works for the broker or accepts a commission from that broker to invest in that fund. Such advice may or may not be in your best interest. Hence the problem.
LOL. Your mind is probably blown away by what an ETF is.
Here's a little hint. A mutual fund is not really what you think that it is.
Not really. an ETF is a type of mutual fund that does not need to be professionally managed because its asset allocations are set by a stock exchange. An ETF can track the Dow, or the s&P 500, or the Russell 1000 etc. Most mutual funds have managers choosing when to buy and what to buy on their own. But an ETF is tied to an allocation that was originally designed merely to track the overall market.
(08-01-2019, 06:43 PM)Predator Wrote: [ -> ] (07-31-2019, 10:15 PM)mikesez Wrote: [ -> ]So what changed about that under the rule that Obama enforced on 2016?
Nothing. That requirement has been around for decades.
So why did anybody sue?
Why did it cause your company to change some of its practices?
Why does Trump tower eliminating this rule as one of his achievements?
(08-02-2019, 07:42 AM)jagibelieve Wrote: [ -> ]mikesez Wrote:Not really. an ETF is a type of mutual fund that does not need to be professionally managed because its asset allocations are set by a stock exchange. An ETF can track the Dow, or the s&P 500, or the Russell 1000 etc. Most mutual funds have managers choosing when to buy and what to buy on their own. But an ETF is tied to an allocation that was originally designed merely to track the overall market.
Try again.
Nah. Tell me what I'm missing, then tell me why what I'm missing matters to someone with $1 million or less in assets who only moves his assets once or twice a year...
(08-02-2019, 08:32 AM)mikesez Wrote: [ -> ] (08-02-2019, 07:42 AM)jagibelieve Wrote: [ -> ]Try again.
Nah. Tell me what I'm missing, then tell me why what I'm missing matters to someone with $1 million or less in assets who only moves his assets once or twice a year...
An ETF is a group of stocks much like a mutual fund that is traded like a stock. The asset allocation isn't set by a "stock exchange". Most if not all are professionally managed. Also, while there are some ETFs designed to track a particular index (NYSE, NASDAQ, etc.) there are numerous others with different goals.
A good example is
ITA, an ETF that I bought when President Trump was elected that is made up of companies in the Aerospace and Defense Industry. It is professionally managed and has nothing to do with "tracking the overall market". It has done very well for me though lately it has struggled with the problems that Boeing has been going through lately (Boeing makes up roughly 20% of the holdings). Even with the recent struggles, between the price that I bought it at and the price that it trades for now as well as the dividends that it has paid I have make close to 1 year's salary on just that one investment.
Another ETA that I have held for a long time is
DVY. Again it is professionally managed and is made up of stocks that tend to pay good dividends. This one is different in that the price usually stays relatively flat (though it has grown some since I initially purchased it). Once again it has nothing to do with tracking a market index.
The biggest difference between a mutual fund and an ETF is the way that they are traded. I could pull the trigger right now and either buy or sell an ETF and it would be effective immediately. Most mutual funds are bought and sold at the price they are at at the market close rather than when you issue the buy/sell order. Also, there are usually fees and rules as far as buying or selling mutual funds as far as how long you have to hold it. Not so much with an ETF.
A REIT is probably beyond you as well.
As far as why it would matter to anyone regardless of the amount of assets they have invested, I guess it really doesn't... except for those like me who choose to manage their own money. While you only move money once or twice a year I move money on more-or-less a monthly basis depending on what I'm doing. I personally invest primarily in ETFs, REITs and bonds with a few individual stocks every now and then. It's certainly not for everyone and requires some time and effort. It doesn't matter if you are investing $1000.00 or several hundred thousands or even millions of dollars.
Finally, I am by no means a professional. If I am wrong or off in my description I welcome a professional like Predator to correct me.
Pretty spot on.
I just want to clarify though. All funds are professionally managed. The difference is "active" management vs "passive" management.
"Active" management is what you are describing with your ETFs where the fund manager implementing a particular investment strategy and will make changes to the assets in the fund to try and maximize the return.
"Passive" management is how index funds are managed. There is no investment strategy being implemented so all the manager needs to do is make sure the assets in the fund match the index it is tracking.
Due to the fact that"passive" funds are much easier to manage, their internal expenses, or management fee, will be much lower than an "active" fund.
Brace Yourself !!! I'm done for a while as I moved our $$$ to a MIP II WF Stable Fund Account that guarantees 2% return, regardless of the stock market. Need to ride out the US-China trade war as well as the No Deal Brexit which looks inevitable.
(08-05-2019, 09:26 AM)HURRICANE!!! Wrote: [ -> ]Brace Yourself !!! I'm done for a while as I moved our $$$ to a MIP II WF Stable Fund Account that guarantees 2% return, regardless of the stock market. Need to ride out the US-China trade war as well as the No Deal Brexit which looks inevitable.
I wouldn't panic just yet, but being cautious isn't a bad thing. I lost a good deal of profits today but I am still "in the green". I have some stop-loss orders in place should the market fall anymore.
(08-05-2019, 05:03 PM)jagibelieve Wrote: [ -> ] (08-05-2019, 09:26 AM)HURRICANE!!! Wrote: [ -> ]Brace Yourself !!! I'm done for a while as I moved our $$$ to a MIP II WF Stable Fund Account that guarantees 2% return, regardless of the stock market. Need to ride out the US-China trade war as well as the No Deal Brexit which looks inevitable.
I wouldn't panic just yet, but being cautious isn't a bad thing. I lost a good deal of profits today but I am still "in the green". I have some stop-loss orders in place should the market fall anymore.
Hope your stop-loss orders are working properly -- down 400+ right now. I ended up moving to a 2010 plan which is only 50% bonds so I'm still incurring some market risk --- seemed like a good idea at that time i was making the change. The cool thing is that if we minimize losses throughout the instability of China trade war and No Deal Brexit, we can go aggressive during the upturn as you know Trump will do everything possible to have the market in an upturn during the 2020 election year. Word has it that China may try to ride this out until our election.
(08-07-2019, 10:14 AM)HURRICANE!!! Wrote: [ -> ] (08-05-2019, 05:03 PM)jagibelieve Wrote: [ -> ]I wouldn't panic just yet, but being cautious isn't a bad thing. I lost a good deal of profits today but I am still "in the green". I have some stop-loss orders in place should the market fall anymore.
Hope your stop-loss orders are working properly -- down 400+ right now. I ended up moving to a 2010 plan which is only 50% bonds so I'm still incurring some market risk --- seemed like a good idea at that time i was making the change. The cool thing is that if we minimize losses throughout the instability of China trade war and No Deal Brexit, we can go aggressive during the upturn as you know Trump will do everything possible to have the market in an upturn during the 2020 election year. Word has it that China may try to ride this out until our election.
If you are younger and actively contributing to your investment account whether it be employer based 401(k) or other investment vehicle, you shouldn't even remotely panic. Routinely purchasing stock every 2 weeks is going to average out your cost basis over time anyway.
However, if you are retired, you are screwed.
J/K, but trying to time the market seldom works.
(08-07-2019, 10:19 AM)StroudCrowd1 Wrote: [ -> ] (08-07-2019, 10:14 AM)HURRICANE!!! Wrote: [ -> ]Hope your stop-loss orders are working properly -- down 400+ right now. I ended up moving to a 2010 plan which is only 50% bonds so I'm still incurring some market risk --- seemed like a good idea at that time i was making the change. The cool thing is that if we minimize losses throughout the instability of China trade war and No Deal Brexit, we can go aggressive during the upturn as you know Trump will do everything possible to have the market in an upturn during the 2020 election year. Word has it that China may try to ride this out until our election.
If you are younger and actively contributing to your investment account whether it be employer based 401(k) or other investment vehicle, you shouldn't even remotely panic. Routinely purchasing stock every 2 weeks is going to average out your cost basis over time anyway.
However, if you are retired, you are screwed.
J/K, but trying to time the market seldom works.
I agree with the don't panic philosophy but totally disagree with letting $$ disappear by leaving it in an aggressive 2040 account or whatever your scheduled retirement may be. During a downward turn, cut your losses by moving it into a MIP II bond or 2010 account and then when the Dow bottoms out then move it back into an aggressive account to reap the benefits of the upturn. It's petty much like having Apple stock at $200 --- if it's dropping, go bond and get a 2% profit, then buy Apple back at $170 and you get to profit again as it gets back up to $200. I regret not using that 401k plan in 2007. My idiot generation was taught to let everything sit. We were also told too much transition from company to company was a bad thing --- gotta earn that pension boy. Glad I didn't listen to that one at least.
(08-07-2019, 10:14 AM)HURRICANE!!! Wrote: [ -> ] (08-05-2019, 05:03 PM)jagibelieve Wrote: [ -> ]I wouldn't panic just yet, but being cautious isn't a bad thing. I lost a good deal of profits today but I am still "in the green". I have some stop-loss orders in place should the market fall anymore.
Hope your stop-loss orders are working properly -- down 400+ right now. I ended up moving to a 2010 plan which is only 50% bonds so I'm still incurring some market risk --- seemed like a good idea at that time i was making the change. The cool thing is that if we minimize losses throughout the instability of China trade war and No Deal Brexit, we can go aggressive during the upturn as you know Trump will do everything possible to have the market in an upturn during the 2020 election year. Word has it that China may try to ride this out until our election.
My stop losses kicked in early this morning. I took a loss of some of my gains, but still outperforming the S&P 500 for the year. I am earning some capital gains on my bonds though. The 10 year treasury yield took a crazy ride today dipping down to around 1.57 from 1.62 at the market open. Since then as of right now it's back up to 1.68%. Expect another rate cut soon, most likely in September. I suspect by early next week there will be some bargains to be had on certain stocks/sectors.
China probably does want to hold on until after our election, the question is can they? European treasuries are yielding negative interest rates so there is a big flow of money coming in to the bond market right now. I guess it could potentially be good news for people taking out a mortgage since the interest rate on a 30 year fixed is probably going to be down to nearly 3.5%.
(08-07-2019, 10:19 AM)StroudCrowd1 Wrote: [ -> ] (08-07-2019, 10:14 AM)HURRICANE!!! Wrote: [ -> ]Hope your stop-loss orders are working properly -- down 400+ right now. I ended up moving to a 2010 plan which is only 50% bonds so I'm still incurring some market risk --- seemed like a good idea at that time i was making the change. The cool thing is that if we minimize losses throughout the instability of China trade war and No Deal Brexit, we can go aggressive during the upturn as you know Trump will do everything possible to have the market in an upturn during the 2020 election year. Word has it that China may try to ride this out until our election.
If you are younger and actively contributing to your investment account whether it be employer based 401(k) or other investment vehicle, you shouldn't even remotely panic. Routinely purchasing stock every 2 weeks is going to average out your cost basis over time anyway.
However, if you are retired, you are screwed.
J/K, but trying to time the market seldom works.
Yes and no. If you're invested in a 401(k) or something like that then you will be fine over the long term. An investor like me who manages their own money follows the stock market and make moves based on indicators. It's not really "timing" the market. As an example, I don't buy stock "every two weeks" just to buy stock. I take a look at market conditions, prices, trends etc. and buy on the dips and hold until there is a downward indicator. As an example, the tech sector has pretty much been on fire up until a few days ago. Over the last few days the sector as a whole has taken a beating. Once some of this trade war stuff settles down a bit buying in while it's low can yield a pretty good gain. Take a look at the YTD chart for
XLK as an example. Buying the dip could be risky since much of the tech sector is tied in with global markets and more specifically China. However, buying the dip at the right time could yield good results.
Me personally, I'm not going to buy anything at the moment until the market stabilizes a bit more. I'm still invested in some sectors that tend to be "safer" especially during a downturn.
(08-07-2019, 02:26 PM)jagibelieve Wrote: [ -> ] (08-07-2019, 10:14 AM)HURRICANE!!! Wrote: [ -> ]Hope your stop-loss orders are working properly -- down 400+ right now. I ended up moving to a 2010 plan which is only 50% bonds so I'm still incurring some market risk --- seemed like a good idea at that time i was making the change. The cool thing is that if we minimize losses throughout the instability of China trade war and No Deal Brexit, we can go aggressive during the upturn as you know Trump will do everything possible to have the market in an upturn during the 2020 election year. Word has it that China may try to ride this out until our election.
My stop losses kicked in early this morning. I took a loss of some of my gains, but still outperforming the S&P 500 for the year. I am earning some capital gains on my bonds though. The 10 year treasury yield took a crazy ride today dipping down to around 1.57 from 1.62 at the market open. Since then as of right now it's back up to 1.68%. Expect another rate cut soon, most likely in September. I suspect by early next week there will be some bargains to be had on certain stocks/sectors.
China probably does want to hold on until after our election, the question is can they? European treasuries are yielding negative interest rates so there is a big flow of money coming in to the bond market right now. I guess it could potentially be good news for people taking out a mortgage since the interest rate on a 30 year fixed is probably going to be down to nearly 3.5%.
I'm only up 9.25% YTD now dadgummit.
(08-07-2019, 09:59 PM)flsprtsgod Wrote: [ -> ] (08-07-2019, 02:26 PM)jagibelieve Wrote: [ -> ]My stop losses kicked in early this morning. I took a loss of some of my gains, but still outperforming the S&P 500 for the year. I am earning some capital gains on my bonds though. The 10 year treasury yield took a crazy ride today dipping down to around 1.57 from 1.62 at the market open. Since then as of right now it's back up to 1.68%. Expect another rate cut soon, most likely in September. I suspect by early next week there will be some bargains to be had on certain stocks/sectors.
China probably does want to hold on until after our election, the question is can they? European treasuries are yielding negative interest rates so there is a big flow of money coming in to the bond market right now. I guess it could potentially be good news for people taking out a mortgage since the interest rate on a 30 year fixed is probably going to be down to nearly 3.5%.
I'm only up 9.25% YTD now dadgummit.
10.21% YTD but only 3.18% since Aug 2018
The high spike in 2019 was due to the downfall on December 26 2018.
Today's looking great !!!
(08-08-2019, 01:21 PM)HURRICANE!!! Wrote: [ -> ] (08-07-2019, 09:59 PM)flsprtsgod Wrote: [ -> ]I'm only up 9.25% YTD now dadgummit.
10.21% YTD but only 3.18% since Aug 2018
The high spike in 2019 was due to the downfall on December 26 2018.
Today's looking great !!!
Cash out all of your accounts and buy some rental property that gives you a constant 10% ROI. Your day to day life will be less stressful and even give you something tangible to pass down to your kids.
(08-08-2019, 01:53 PM)StroudCrowd1 Wrote: [ -> ] (08-08-2019, 01:21 PM)HURRICANE!!! Wrote: [ -> ]10.21% YTD but only 3.18% since Aug 2018
The high spike in 2019 was due to the downfall on December 26 2018.
Today's looking great !!!
Cash out all of your accounts and buy some rental property that gives you a constant 10% ROI. Your day to day life will be less stressful and even give you something tangible to pass down to your kids.
"They don't make more land" - farmers
Pretty sure he has some rentals already.