Many of the main Dow and SP components are oil based companies, such as XOM and CVX. Those are blue chippers that are also coming from the dividend paying sector. Honestly if it were me, I would be buying the s*** out of these companies now, because once oil goes back up, these will get expensive again, much like banks did in 2008.

 

I don't get a choice of specific stocks. There are five options. One is government securities (never loses money). One is tied to bonds (very rarely loses money). The other three are different stock funds. One comprised mostly of S&P components, one comprised mostly of DJIA components, and one comprised mostly of foreign components. I can have any percentage of my portfolio in any of the five options, but any time I increase the percentage in the securities fund, that amount is locked there for 30 days.

Well, Unless you are retiring next year I wouldn't really worry about this marginal slump from oil is doing anyway. But if you'd like to invest in it returning, SS2K5's idea is one worth looking into.

 

I don't really understand oil and I feel like a lot of people do so I try to stay away from it.

I don't get a choice of specific stocks. There are five options. One is government securities (never loses money). One is tied to bonds (very rarely loses money). The other three are different stock funds. One comprised mostly of S&P components, one comprised mostly of DJIA components, and one comprised mostly of foreign components. I can have any percentage of my portfolio in any of the five options, but any time I increase the percentage in the securities fund, that amount is locked there for 30 days.

 

There is not much you can do now then. Personally I would stay true to the stock funds now, but not aggressively. Guessing at your age, I would say something like 70/30 stock to bond ratio.

There is not much you can do now then. Personally I would stay true to the stock funds now, but not aggressively. Guessing at your age, I would say something like 70/30 stock to bond ratio.

 

If you play the safe Boglehead method, whatever your age is, is the % of bonds you invest in.

 

Personally, I do this now, and I'm 40. I just recently started this split.

 

60% S&P500 Index

20% Foreign Index

20% Bond Index

 

But, up until I was 40, I did a simple 80% S&P500 Index 20% Foreign Index.

 

I'll do no rebalancing, I'll just let the 60/20/20 grow from this point forward and slowly tweak it as time goes on, as I near retirement I'll begin rebalancing portions of the equities into bonds, before ultimately cash.

 

The biggest thing I stress to people is fees, fees, fees. AVOID THEM. They don't sound like a lot, but compounded over the amount of years you invest, the difference between a 0.10% basis and a 1% basis is a LOT more than the 0.9% it appears as.

If you play the safe Boglehead method, whatever your age is, is the % of bonds you invest in.

 

Personally, I do this now, and I'm 40. I just recently started this split.

 

60% S&P500 Index

20% Foreign Index

20% Bond Index

 

But, up until I was 40, I did a simple 80% S&P500 Index 20% Foreign Index.

 

I'll do no rebalancing, I'll just let the 60/20/20 grow from this point forward and slowly tweak it as time goes on, as I near retirement I'll begin rebalancing portions of the equities into bonds, before ultimately cash.

 

The biggest thing I stress to people is fees, fees, fees. AVOID THEM. They don't sound like a lot, but compounded over the amount of years you invest, the difference between a 0.10% basis and a 1% basis is a LOT more than the 0.9% it appears as.

 

That is why I emphasize the simple indexes, and NOT actively traded ones.

This is f***ed up:

 

http://www.businessinsider.com/sweden-cash...t-rates-2015-10

Stock market poised for a 430 point loss at the opening bell due to China....

Stock market poised for a 430 point loss at the opening bell due to China....

 

It'll recover a bit from that -- but it's still exciting. This should open a few buy in opportunities now that the suckers are running scared.

So now that oil prices are plunging even more than anticipated, this puts Saudi Arabia in an awkward position. The prices fell too fast, so other OPEC countries haven't dropped out as fully as they wanted. They are starting to implement budgetary changes that their populace won't like, in order to plug the gap. If they cut down supply now, it may not be enough to drive the prices back up in a big way anymore, so they'd just be throwing away money. If they keep up this path, they'll run out of cash quicker than planned. Not a great place for them to be.

 

So now that oil prices are plunging even more than anticipated, this puts Saudi Arabia in an awkward position. The prices fell too fast, so other OPEC countries haven't dropped out as fully as they wanted. They are starting to implement budgetary changes that their populace won't like, in order to plug the gap. If they cut down supply now, it may not be enough to drive the prices back up in a big way anymore, so they'd just be throwing away money. If they keep up this path, they'll run out of cash quicker than planned. Not a great place for them to be.

 

After years of oil market rigging and price manipulation, they're getting what they deserve. They can all go f*** themselves.

Excellent article if you have access. i learned a lot

http://www.economist.com/news/middle-east-...aluable_company

Just bought into AAPL earlier this week and now it's getting crushed

I wouldn't be all that worried, especially if you are looking more long. In fact, if you stick to Dollar cost averaging, than I still say best bet is continue to DCA through good times and bad and have bulk of your equity exposure in index funds. To extent you want stable value / fixed income, adjust accordingly (depending on useage of the funds...whether long-term savings, shorter term, etc).

Don't buy AAPL for short term gains as smarter people manipulate the stock better than you can.

 

If you like their company and how absurdly low their P/E is, this shouldn't worry you too much.

 

Don't buy AAPL stocks for short term gains as smarter people manipulate the stock better than you can.

 

Don't buy AAPL for short term gains as smarter people manipulate the stock better than you can.

 

If you like their company and how absurdly low their P/E is, this shouldn't worry you too much.

Not in it for the short term. However, it still hurts when you see a near $2k loss within a week in the TD Ameritrade account. Now the question is are we in for a bear market or is this just a minor blip? I'm really not liking the idea of losing another $10k in this market if we are truly headed for a big drop. Could take 4-5 years to recover from that type of loss.

Not in it for the short term. However, it still hurts when you see a near $2k loss within a week in the TD Ameritrade account. Now the question is are we in for a bear market or is this just a minor blip? I'm really not liking the idea of losing another $10k in this market if we are truly headed for a big drop. Could take 4-5 years to recover from that type of loss.

Big jobs number out this morning, nice 292k showing.

292k jobs, last two months revised upwards by 50k, unemployment holds steady at 5.0% (more people returning to the job market?), but wages dipped 0.01.

Big jobs number out this morning, nice 292k showing.

Yet the market is still down this morning. Can't be a good sign. Time to rush to money markets?

292k jobs, last two months revised upwards by 50k, unemployment holds steady at 5.0% (more people returning to the job market?), but wages dipped 0.01.

Would this indicate that the added jobs were more "blue collar" jobs while more "white collar" jobs are moving out? With more jobs but less pay especially with the new minimum wages, it would seem that the US is losing higher paying positions. Or is this an incorrect assumption on my part.

Would this indicate that the added jobs were more "blue collar" jobs while more "white collar" jobs are moving out? With more jobs but less pay especially with the new minimum wages, it would seem that the US is losing higher paying positions. Or is this an incorrect assumption on my part.

 

That's nominal wage growth and its not helpful to draw assumptions without knowing what's happening with real wages.

Yet the market is still down this morning. Can't be a good sign.

China

Everyone suspects the government was actually doing most of the buying here...although the volumes were quite high.

 

Shanghai has a bunch of individual day trader types who haven't experienced five rough markets in their lifetime (1987, 1997-98 leading into the tech crash, 20012002 and then 2008-09).

 

Plus, they locked out big insiders and institutional holders from trading more than 1% in the next three months...punting the problem of uncertainty down the line again. Even then, you have to write a letter 15 days in advance announcing your intentions to sell. Meanwhile, any mention of short selling or hedging gets the rich brought into investigation for being traitors to their country by selling/betting against the market or media members brought up on charges. Then there's the whole anti-corruption witch hunt going on here as well. People are scared and want to get their money out in any possible way asap.

 

It's crazy.

Edited January 8, 201610 yr by caulfield12

That's nominal wage growth and its not helpful to draw assumptions without knowing what's happening with real wages.

Thanks. What would be the difference and is there a place to find the info? It is a topic of discussion at the university as it sure seems that the cost of education in Illinois is driving the college student out of Illinois and they aren't returning. This is just Illinois but it also grows into the topic for the US.

The question is, will the issues in China ultimately prove to be a boon / drive inflation in the US, more specifically real estate inflation / other inflation (as people try to get cash out of China and parked in safer institutions). You would also think, these would be more things that would put pressure on treasury rates (since demand on US Treasuries will be through the roof or so I'd suspect).