Started By
Message

Interesting analysis of pending market bubble correction

Posted on 1/5/14 at 10:17 am
Posted by Brick67
Member since Oct 2012
1303 posts
Posted on 1/5/14 at 10:17 am
Thoughts on this article? Anyone used the program you hear advertised about making money when the market is down?

Bearish Call to End All Bearish Calls (Money Beat of WSJ)
Posted by SmackoverHawg
Member since Oct 2011
27342 posts
Posted on 1/5/14 at 11:35 am to
I'm interested to see the feedback on this one. I doubt Obama and the fed would let it happen before the midterm elections, but some shite is out of their control. What's the money board guru's think. I have slowly been allocating more into cash and PM's as the market has risen, but not too much so.
Posted by Volvagia
Fort Worth
Member since Mar 2006
51908 posts
Posted on 1/5/14 at 11:49 am to
Me too.


I've been on the fence regarding putting in or waiting it out a bit
Posted by SmackoverHawg
Member since Oct 2011
27342 posts
Posted on 1/5/14 at 12:01 pm to
I've been putting in my usual amount, but any excess investing funds have been going into cash since it hit about 14,800. Yeah, I've missed out on a little more return, but we are due for at least a 10% correction. Still up about 30% on the year overall. I'm about 70-75/25-30 stock v. cash/pm/reverse index funds probably won't get more than 40% into non-stock allocation.
Posted by LSURussian
Member since Feb 2005
126962 posts
Posted on 1/5/14 at 12:05 pm to
quote:

SmackoverHawg
You are fairly bullish with your stock market predictions for 2014. Up almost 8% for the DJ and almost 16% for the NASDAQ.
Posted by SmackoverHawg
Member since Oct 2011
27342 posts
Posted on 1/5/14 at 12:08 pm to
Short term I am bullish (next one year). I think the worst is to come after the mid terms. I don't see how we can't have a major correction if not a crash in the next few years as QE is tapered. What's your opinion. I have some cash now I'm trying to decide what to do with.

And I haven't seen the frenzied buying by joe six pack and other amateur speculators you usually see at the top of a bubble.
This post was edited on 1/5/14 at 12:10 pm
Posted by Janky
Team Primo
Member since Jun 2011
35957 posts
Posted on 1/5/14 at 12:24 pm to
I have been putting new money into balanced funds that have a proven track record. I catch a piece of the stock rally if it continues but these managers proved to me they have the ability to protect on the downside by their performance in down years like 2008.
Posted by SmackoverHawg
Member since Oct 2011
27342 posts
Posted on 1/5/14 at 12:32 pm to
I've also been allocating more into blue chip dividend paying funds/stocks. MO, XOM, COKE etc. Vanguard dividend growth.
Posted by LSURussian
Member since Feb 2005
126962 posts
Posted on 1/5/14 at 12:34 pm to
quote:

I think the worst is to come after the mid terms. I don't see how we can't have a major correction if not a crash in the next few years as QE is tapered. What's your opinion.
I agree with Warren Buffett: I don't know which direction the next 1,000 point move on the Dow Jones will be but I'm certain I know which direction the next 15,000 point move will be.

I anticipate a 10-15% correction at some point but I've been predicting that for over a year now so I can honestly say, I don't know what's going to happen or when.
Posted by Janky
Team Primo
Member since Jun 2011
35957 posts
Posted on 1/5/14 at 12:45 pm to
I have given up on trying to pick stocks. I only have a little bit that I allocate to speculative stock picks. Win some lose some.
Posted by SmackoverHawg
Member since Oct 2011
27342 posts
Posted on 1/5/14 at 12:47 pm to
quote:

agree with Warren Buffett: I don't know which direction the next 1,000 point move on the Dow Jones will be but I'm certain I know which direction the next 15,000 point move will be. I anticipate a 10-15% correction at some point but I've been predicting that for over a year now so I can honestly say, I don't know what's going to happen or when.


This is 100% true and I'm not into trying to time the market. My "set montly/yearly" investments are still going into the market. I guess what I'm holding out are what I consider my speculation money. It's just that I'm getting too much of it that I hate to keep in in MM accounts or CD's. But I like having a chunk to take my swings when the market does tank. I did this before 2008 and have been able to triple my net worth in the years since. My goals are long term so I don't sweat short term loses at all.

Any sugggestions on what I should do with the money I have put back or a max percentage I should have in cash. I don't include my real estate/land holdings in the percentages except for the REIT's.
Posted by SmackoverHawg
Member since Oct 2011
27342 posts
Posted on 1/5/14 at 12:50 pm to
quote:

I have given up on trying to pick stocks. I only have a little bit that I allocate to speculative stock picks. Win some lose some.


I have a number of stocks that I follow and have since I was 12. I don't "speculate". I wait for good deals and buy and hold. I sticking to things that I know quite a bit about or have close friends that do. I research the shite out of a stock before I buy. I have done quite well doing this. Most of mine goes into low fee index funds.
Posted by LSURussian
Member since Feb 2005
126962 posts
Posted on 1/5/14 at 12:54 pm to
quote:

Any sugggestions on what I should do with the money I have put back or a max percentage I should have in cash.
The obvious answer is bitcoin.

Seriously, I don't make recommendations. Or at least, I try to avoid doing that.

If someone asks me about a specific stock, I enjoy analyzing that stock and then sometimes sharing what I learned about it. But that's about as far as I will go.
Posted by SmackoverHawg
Member since Oct 2011
27342 posts
Posted on 1/5/14 at 12:57 pm to
Posted by foshizzle
Washington DC metro
Member since Mar 2008
40599 posts
Posted on 1/5/14 at 1:22 pm to
quote:

said the Dow Industrials could still rally another 4% or so first, to a high around 17150


Don't trust forecasts with four digit precision.
Posted by PropofoLSU
Irwin, Idaho
Member since Aug 2013
543 posts
Posted on 1/5/14 at 1:38 pm to
I put 5000 in UVXY as portfolio insurance......
Posted by Brick67
Member since Oct 2012
1303 posts
Posted on 1/5/14 at 3:29 pm to
Back to my original question...not trying to "time" the market, just wondering is there a different strategy to apply AFTER the bottom falls out. Do you hesitate then start buying stuff cheap or dive in right away? What is "typically" the best sector to start buying into after a crash?
Posted by SmackoverHawg
Member since Oct 2011
27342 posts
Posted on 1/5/14 at 3:41 pm to
quote:

Do you hesitate then start buying stuff cheap or dive in right away?

I buy stuff that seems waaaaaay under priced to me right away. Like a said I follow a number of stocks and if one of my favs drops precipitously for no good reason. I'll load up on it, but I certainly don't put all my eggs in one basket. The biggest thing is I never sold anything during the drop and kept my usual investment schedule. I just bought and as it went lower, I bought more. But I didn't leverage anything, but I did liquidate some other assets to put into the market and I delayed some big purchases to invest the money instead. I'll only invest what I have to lose.
Posted by Brick67
Member since Oct 2012
1303 posts
Posted on 1/5/14 at 3:52 pm to
What service are you using? Scottrade, ETrade, Schwab?
Posted by SmackoverHawg
Member since Oct 2011
27342 posts
Posted on 1/5/14 at 4:20 pm to
I do it through my financial advisor/broker. I trade very infrequently. I make all the decisions. I use him for tax advise mainly and to do the foot work I need.
first pageprev pagePage 1 of 2Next pagelast page

Back to top
logoFollow TigerDroppings for LSU Football News
Follow us on Twitter, Facebook and Instagram to get the latest updates on LSU Football and Recruiting.

FacebookTwitterInstagram