The Stock Market Takes Another Dive - Steer Clear ?

JoeCrystal

srcandas wrote: »

I saw today that a group of billionaires are starting a business to mine asteroids! It costs NASA one billion to recover a few grams of dust and yet these fellows see profit within 20 years - no way is that an investment recommendation but they appear to have no trouble getting investors

Making money is a drug :beer:

Indeed, I would love to invest in these kind of projects but sadly, at the moment, you cannot invest in this one.

Cheers

Joe

atush

Quote:
is this why so many are selling and staying out.? Many investors are *heavily* driven by fear and *any* risk whatsoever will cause them to pull money off the table. When they finally pile back in, it's usually into the teeth of a mature bull market that's about to crest the top yet again.

This is why the little guy loses out, and the big guys win. Because the little guys pile in when prices are high, and sell out when the drop/there is a correction. but when some are losing there are others gaining.

So you need to use your head.

sabretoothtigger

Thrugelmir wrote: »

If China sneezes will the West catch a cold.........

Bird flu possibly

/endofdays

Thrugelmir

sabretoothtigger wrote: »

Bird flu possibly

I was thinking more along the lines of a lack of credit.

Chinese regional banks would appear to have their own troubles. After the Government instructed spend on infrastructure projects in 2007/08. After Western demand slumped. So not as rosy as one would imagine.

Chinese are known speculators as a race.

MonkeyMad

atush wrote: »

This is why the little guy loses out, and the big guys win. Because the little guys pile in when prices are high, and sell out when the drop/there is a correction. but when some are losing there are others gaining.

So you need to use your head.

And often the 'little guy' is an investor who used money he couldn't really afford to lose, and was after some large capital increases in a short time and gets scared witless by a 10% drop in a share and cashes in before the markets inevitably recover.

TBH at the moment I'm seeing little point in holding much cash as I could pick almost any large cap share and get at least a similar dividend return to cash on deposit. I don't worry too much about judging the top and bottom of a market, and drip the cash in across my choices. Waiting for ultimate peaks and troughs and 'the best deal' just adds inertia to the process.

DannyRadclif

The title should be stocks take another dive, get out now? But where is an investor to go to?

gadgetmind

MonkeyMad wrote: »

TBH at the moment I'm seeing little point in holding much cash as I could pick almost any large cap share and get at least a similar dividend return to cash on deposit.

Sadly, income investing now seems to be the new black, so dividend yields are lower than I'd like. I still have a few companies on my watch list but can't find a good reason to hit the button.

I have a load of sell limits in place for some growth shares, and if they trigger soon I'll have more cash looking for a home, so if the markets could crash some time next week that would be great.

1echidna

gadgetmind wrote: »

Sadly, income investing now seems to be the new black, so dividend yields are lower than I'd like. I still have a few companies on my watch list but can't find a good reason to hit the button.

I have a load of sell limits in place for some growth shares, and if they trigger soon I'll have more cash looking for a home, so if the markets could crash some time next week that would be great.

Friday would be my guess.

gadgetmind

DannyRadclif wrote: »

The title should be stocks take another dive, get out now? But where is an investor to go to?

Why would an investor want to go anywhere? Sure, they might want to adjust their asset allocation but even that needs to be done with care and consideration.

MonkeyMad

Yes, a lot of people do seem to have belatedly discovered that most share have value as an asset because they can produce steady income, and not just rely on a massive gain. Yields are relatively low at the moment, but with a few stock market shocks and a selling frenzy from short-termists, soon looks more attractive. You may not find a good reason to hit the button, but conversely with a long-term outlook, there are not neccesarily lots of bad reasons not to. Even with todays yields I maintain a regular investment if I think it will return more than cash