Bear Market -- When's a good time to buy and what?

[wazoo]

Totally off topic, but I'm always looking for new insight. I'm trying to invest some of my money into the stock market, and I have a feeling that the best insertion time is still not now. I have a feeling like most others will say, wait until the coronavirus is under control/not promoting as much fear in the media.

With that established, do you guys have any suggestions on some good buying opportunities when premium stocks are at a low. I'm thinking Microsoft, Starbucks and still feeling really optimistic about Uber, maybe Carnival too (after virus disruptions are over).

Obviously I'm going to do my due diligence, but like I said, I enjoy hearing other people's thoughts. Thanks!

Wazoo

[Bored5000]

Originally Posted by wazoo

Totally off topic, but I'm always looking for new insight. I'm trying to invest some of my money into the stock market, and I have a feeling that the best insertion time is still not now. I have a feeling like most others will say, wait until the coronavirus is under control/not promoting as much fear in the media.

With that established, do you guys have any suggestions on some good buying opportunities when premium stocks are at a low. I'm thinking Microsoft, Starbucks and still feeling really optimistic about Uber, maybe Carnival too (after virus disruptions are over).

Obviously I'm going to do my due diligence, but like I said, I enjoy hearing other people's thoughts. Thanks!

Wazoo

You are a young guy, right? With decades for your money to grow, you are overthinking this. Buy a broad index (Vanguard's Total Stock Market Index and Total International Stock Market Index, as examples) and don't touch it. Over the course of several decades, what happens in the short term will be just a blip.

As for waiting until the virus is "under control" and less fear in the media, one of Warren Buffett's most famous axioms is "Be greedy when others are fearful and fearful when others are greedy."

Catching the absolute bottom of a bear market is impossible to predict, even for the best money managers.

[wazoo]

Originally Posted by Bored5000

You are a young guy, right? With decades for your money to grow, you are overthinking this. Buy a broad index (Vanguard's Total Stock Market Index and Total International Stock Market Index, as examples) and don't touch it. Over the course of several decades, what happens in the short term will be just a blip.

As for waiting until the virus is "under control" and less fear in the media, one of Warren Buffett's most famous axioms is "Be greedy when others are fearful and fearful when others are greedy."

Catching the absolute bottom of a bear market is impossible to predict, even for the best money managers.

Yes, I am a young dude. 23. And I totally agree with you. Thank you for the response. That has been essentially the bulk of my investments to date is rocking these index funds, but just in terms of individual stocks. I would hate to miss out on a great opportunity to buy some previously unaffordable stocks and really ride the upward momentum. Obviously a small percentage of my portfolio.

[todeen]

Originally Posted by Bored5000

Catching the absolute bottom of a bear market is impossible to predict, even for the best money managers.

+1

You need to invest now. Maybe not everything at once, in case it keeps going down, but start immediately.

I'm going to suppose you are not day trading. That would require different thinking.

So supposing you are buying to keep for a long time and get the dividends and stock splits, etc, buy continuously. Buying constantly is called averaging. In the long run it makes the stocks that you bought at a higher amount cheaper.

That's what others are talking about telling you to invest in funds constantly. The share price changes, but it averages out. Same with stocks. Buy now. If prices drop more, invest next Monday. If prices continue to drop, buy buy buy.

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[wazoo]

Originally Posted by todeen

+1

You need to invest now. Maybe not everything at once, in case it keeps going down, but start immediately.

I'm going to suppose you are not day trading. That would require different thinking.

So supposing you are buying to keep for a long time and get the dividends and stock splits, etc, buy continuously. Buying constantly is called averaging. In the long run it makes the stocks that you bought at a higher amount cheaper.

That's what others are talking about telling you to invest in funds constantly. The share price changes, but it averages out. Same with stocks. Buy now. If prices drop more, invest next Monday. If prices continue to drop, buy buy buy.

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I agree. Thanks for the advice.

[MrPosadas]

I keep my 401k invested in a mix of index funds and rebalance every couple months to force the account to buy high and sell low. Given it represents a more significant portion of my retirement would never consider putting any of it into individual stocks. My Roth IRA is where I let myself take some risk and make individual stock purchases. I usually pick up stocks with good dividend yields and reasonable P/E ratios when the market turns down, and then hold them until I get my targeted return. When the market tanks like it is now the majority of stocks are good options as they will rebound eventually. No one knows when the market is at the bottom so try to make the best timing decision and then hold until the market returns. Often times if I buy and the market continues to drop then I buy more of the stock I am invested in to improve my position. Good luck to you!

[todeen]

As for what to buy, in the last recession some of the best performing stocks were sin stocks. Cigarettes, alcohol, casinos, etc. The other choices are good because they will eventually turn around. But if you are looking for short term performance bad habits increase in a down economy. If the market becomes bear, or worse, keep that in mind.

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[1952boyntoncollector]

Im waiting until the Dow is at about 20,000...then i think you are just shooting in a barrel if you are willing to wait a few years..versus getting a percent in a CD etc..

[Republicaninmass]

I'm waiting until 52t mantles are no longer called his rookie card and they go to 5k

[timzcardz]

Joshua,

I'll say the same thing that i tell my son who is a few years older than you, go with an index fund.

One of the best investments out there now that you're entering the work force . . . put enough in your 401k to maximize the employer match.

If you're looking to buy a stock low though, Enron is at an all time low!

With that said, asking relative strangers for financial advice is a questionable approach for success.

[1952boyntoncollector]

Originally Posted by timzcardz

Joshua,

I'll say the same thing that i tell my son who is a few years older than you, go with an index fund.

One of the best investments out there now that you're entering the work force . . . put enough in your 401k to maximize the employer match.

If you're looking to buy a stock low though, Enron is at an all time low!

With that said, asking relative strangers for financial advice is a questionable approach for success.

i once had a stranger tell me to buy a stock called google in 2004...should of listened to him....stock was at about 101 dollars.. i remember doing a buy order and cancelling it cause why listen to a stranger (full disclosure..stranger knew one of the founders)

[wazoo]

Originally Posted by timzcardz

Joshua,

I'll say the same thing that i tell my son who is a few years older than you, go with an index fund.

One of the best investments out there now that you're entering the work force . . . put enough in your 401k to maximize the employer match.

If you're looking to buy a stock low though, Enron is at an all time low!

With that said, asking relative strangers for financial advice is a questionable approach for success.

Totally understand. And yes, I'm entering the workforce coming June, with full intentions to maximize my return through profit-sharing and 401k match. No doubt.

My intentions may not have been as clear, but I kinda just wanted to pick some "stranger's" brains. I may have missed the Apple train, but who knows what's next.

And that's why I added that I will do my own due diligence. Not trying to make any blind investments in the foreseeable future.