re: the "correction" seems to have begun.....how low do we go? prediction thread

I mean I cant say in my experience its pretty dead on bc my uncle gifted me $1000 of MO(altria) in 1996 and I get the statements now and its up 977% on my statement in the mail and its up 969% on that site

See of course 15-20 years assuming lets say 12% annual dividend growth visa will get there. I plan on retiring in the next 6-8 years so for me it wont do income wise so its a smaller part of my portfolio.I have tons of visa from $60 on up that im holding, all i was saying was at $180 its up about $69 this year and if theres any type of correction the dividend wont really accumulate shares for you vs my stake in PM i collect about 100 new shares/quarter via my DRIP so any downturn is welcome to me.

My visa stake is huge but i barely collect 1 share/quarter so a downturn is a down turn where i could buy more with cash but PM i feel will have spectacular growth as well while paying 3.75% dividend.

Visa just has a lot going for it with its new deal with samsung to do nfc payments via phone, the fact they carry no customer debt like amex(visa is just a toll road basically),the world population growing and shifting to CC and them being the leader, prepaid cards, all the online shopping we do, on and on. I love, all im saying is a retracement of any sort lets say its for 6 months based on overall market headwinds wouldnt do much for you but with PM id land tons of new shares at a low price

PM fell under $90 for the first time in months today and it got snapped up right away back close to $91 now. I think depending on your retirement goals, PM may be closer to your range. I've seen projections of PM saying with dividend growth shares bought today paying $3.40/share will be paying $8.91/share by 2023 thats tripling your income! Visa will go from $1.32 to $6.51/share so quadruple! The issue is id need like $10M in visa stock to make the same income i would off my projected PM balance in a few years haha

I will never understand bond holders and CD Holders, yes you get a nice rate but you get 0% growth and honestly with inflation you lose bc the yield isn't growing, at least these dividend stocks smoke inflation and give you more shares which also pay the dividend with their dividend increase every year, even one like coke that doesn't have crazy growth grows the dividend in excess of inflation significantly.

The only way I'd ever buy bonds is if I won like $50M+ Id sink it all into Muni's bc I wouldn't want to deal with the headache of investing it and I feel the Muni yield on 50M would be enough to live well forever and not care about growth

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bond holders and CD Holders

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The last 2 decades haven't been good for bond holders. I know some old people who love Jimmy Carter (not that he had anything to do with it)because they got 30 year bonds at %10+.
Most bonds now though you are looking at a few percent unless one goes with riskier assets.

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bought a few stocks

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In my active trading acct I've added a bit to my DSX position and bought a starter position in HPQ. Bought a little CG and FB a few days ago as well and sold both for small loss until they show some upside. I might start a position in GREK as well.

In my long term hold acct I'll be adding a little to my MMM position here soon.

LINK

i got chastised last time for calling this.

Not to be a debbie downer and bigfella certainly means well, but y'all should really understand that he's not a professional advisor (neither am I). That being said, hard to really get nailed on an array of large caps.

If I were looking to make some moves into equities right now or in the near future, I would want to pick up exposure to the housing market (and construction) as much as possible. I would look pretty heavily into discretionary/retail as well.

The more I try to learn about the market the less I know

I mean if you hold it till you die how does a one time $9.99 commission affect anything? As long as the commission is no more than 1% of the trade ie $1000 purchase shouldn't be an issue. All I can tell you is mo(which spun off pm,Kraft and mondelez) is the best performing stock of all time, I never sell just add...to pm that's the growth arm of the old mo...google the old company and read up on it, it's a great story. I buy anytime the yield is at 4% but since we're so close to the bump in September and it'll prob be $3.75 a share then anything under $93 should yield 4% then

Congrats on your 40 shares, you just planted a tree of wealth and if you hold onto it and keep an eye on it ie make sure people dont just give up smoking(highly doubtful considering world governments depend on the tax revenue)... with some careful additions you could have just planted the seeds to a multi million dollar tree you will one day live off of and leave to your heirs. Look at the calculator i posted above, a simple $3000 investment in coke with $50/month added is $1.2M 40 years later.....and ill tell you what coke wasn't exactly some unknown product in 1973 it was a global leader....most people dont realize the power of dividends reinvested and time. I learned young long ago, and I hope others do too. This is a long term investment, if the price goes down, be happy, awesome, your dividend buys more shares thats how youve got to look at it, you're building an income stream, a side business if you will, and your current side business of phillip morris earns a whopping $136/yr a yr in income not even counting growth......mine earns me an income of almost $30k/yr now which i still DRIP till i retire.....stick with it and yours will get there too, took me almost 20 years

The big thing with PM is as wildly succesful and popular their product are all over the world, the company is already $150B market cap.....the biggest country of smokers China doesnt even smoke PM products bc china tobacco has a monopoly but over the years the goal is for PM to break into the worlds largest market with the world famous marlboro brand....they did it in japan even though japan tobacco exists and they did it in indonesia, one of the largest smoking markets, by buying the big players. It's horrible to say this but they're allowed to target kids overseas bc regulations aren't so strict. Anyone old enough in the US remembers how popular joe camel was and the US had to ban cigarette ads bc they felt it influenced kids too much and why we smoked so much as a nation.....well as an investor I dont care, its an incredible strategy to get young people hooked....and PM is doing this big time in many countries overseas, its sad kids under 10 smoke alot in pacific rim countries

Phillip Morris China Opportunity

Wow, I was trying to lay it out for they guy, thanks for calling me out on trying to give the guy a free synopsis of why it's the best performing company of all time.

And actually you're pretty damn wrong about your 2005 theory....these are the total returns since 2005 with dividends reinvested

Intel - 18.74%
Microsoft - 66%
GE - (-10.76%)

Altria - 276%

Even a 66% return in 8 years albeit nice isnt 276%, the high dividend is a big factor in the total overall return.Im not talking out of my arse, like I said I own a few convenience stores, I see first hand the profits of cigarettes and how my employees buy cigarettes before they pay rent. I see in the winter people stand in the cold outside to smoke.

Im sorry but until someone shows me another product like tobacco that everyone from rich to poor can and will buy in any economic enviroment there is no way to convince me anything is a better investment. The past history of these companies proves it too. Like I said even sodas Im selling more and more generic brands, lower income people aren't ponying up the extra money for brands like coke or pepsi....but they seem to have enough for that marlboro bc theres no substitute

There is not one blue chip on earth that is an addictive product besides PM/MO....name me one?