TFK Capitalist Pigs Thread


#2265

October has a grand tradition of massive market crashes.


#2266

Apple sinking like a stone there.


#2267

@labane1917 don’t try to catch a falling knife


#2268

The Sage Of Tournafulla


#2269

There will be good money to be made on a dead cat bounce tomorrow, around 10.30AM EST.


#2270

That’s bad timing I met my pension fella today and told him to move all of my investments out of Tech i.e. Apple, facebook, netflix etc. I’d say it’ll be a few days before that goes through. Hopefully not much damage done before then. :confused:


#2271

Unless you’re 64 I wouldn’t worry about it. The stock market always wins over time.


#2272

Given the amount of frys you eat every week you should invest the pension money in black pudding futures.


#2273

You want your ongoing contributions to buy into the lower market though


#2274

Come again?


#2275

Dollar (or Euro) cost averaging


#2276

In layman speak?


#2277

If you invest a set amount say every month you get more of whatever you buy when markets drop. A lot of people sell when markets drop sharply when it makes more sense to buy.


#2278

It’s very hard sit there and watch a price fall off a cliff without selling


#2279

That’s true. That’s why all suckers sell at the bottom and buy at the top. No matter how many times the cycle repeats.


#2280

Carnage right now, another 400 gone off the dow overnight trading


#2281

…and the scary part is this might only be the beginning. If earnings and/or outlook disappoint then we would see proper carnage.


#2282

If you are investing your pension in shares you are paying in say 500 per month.

For simplicity its all being used to buy one company share.

For 5 years you have boight into the company at steadily increasing prices.
Year 1 500 bought you 100 shares a month
Year 5 price had increased so 500 only boight you 20 shares a month

Year 6 price drops so 500 would buy you 50 shares a month

If you fundamentally believed in the company why would you not invest at a price less than what you paid last year.

Over the long term the market has always recovered. Thats why your pension invests in a fund of shares rather than one individual share

Like if you really fancied a horse for a race and backed it at 5s. Then it drifted to 10s. Youd back it again wouldnt you?


#2283

Would you not wonder why it drifted out to 10s and maybe question your rationale for fancying it? Perhaps someone saw it limping to the starting line for example.

1 Rule of Investing: Don’t lose money.

2 Rule of Investing: Don’t forget rule #1.


#2284

You would. But all things being equal youd back it again. The market isnt always right as well you know.

Do you not believe in dollar cost averaging? Obviously if you were investing with hindsight youd sit out spells in the market but thats not really possible