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Wildcat · 07-09-17, 10:32 AM

Platapus, mutual funds are stocks! They are just collections of various stocks picked by whoever is managing the fund. That is why I like Peter Lynch's books so much, he did quite well as a fund manager for 13 years.

Skybird, I understand your reservations about putting too much money in the markets. I am not sure of the state of the German markets right now, but when I look at the US markets I see a different picture from what we had in 2008 and 2000 during the dotcom bust.

One of the big things about the dotcom bust was a swelling of the Nasdaq but when you combined the book values or revenues of the companies they were nowhere near the Nasdaq average price.

This time around though, book values are pretty much in line with the average. The Dow/S&P/Nasdaq are all trading pretty high compared to book values but not crazily so. Typical bull market. I'm just waiting around for the next "market correction" as Lynch calls them, before I buy into big stocks like Amazon, Apple, Tesla, Google etc.

I feel nervous when I look at those big names - not because I worry about a market crash, but I worry that the stocks are going to split before I get a chance to buy them - that'd be a real wasted opportunity. But I do think we're overdue for a market decline and I'm not a fan of buying stocks at peak prices. Rumors abound about google's stock splitting this year which would be wonderful for my financial future but at this point if the market started going down I'd probably just end up with two cheaper stocks that would decline to the same price the single stock will if the market cools off later this year or next year.

I like watching gold miners as well, but bitcoin and etherium present a strange new complexity. In the past people went to gold as their emergency backup "investment" but these days, especially the Chinese, are grabbing bitcoins in an attempt to get their money out of the country. I wonder how it's going to mess with the price of gold the next time the US markets dip.

Anybody dabble in futures? Corn seems to have some promise considering current global corn stocks are at a low we haven't seen in about a decade.

07-09-17, 10:32 AM	#11
Wildcat Engineer Join Date: Jan 2002 Posts: 215 Downloads: 69 Uploads: 0	Platapus, mutual funds are stocks! They are just collections of various stocks picked by whoever is managing the fund. That is why I like Peter Lynch's books so much, he did quite well as a fund manager for 13 years. Skybird, I understand your reservations about putting too much money in the markets. I am not sure of the state of the German markets right now, but when I look at the US markets I see a different picture from what we had in 2008 and 2000 during the dotcom bust. One of the big things about the dotcom bust was a swelling of the Nasdaq but when you combined the book values or revenues of the companies they were nowhere near the Nasdaq average price. This time around though, book values are pretty much in line with the average. The Dow/S&P/Nasdaq are all trading pretty high compared to book values but not crazily so. Typical bull market. I'm just waiting around for the next "market correction" as Lynch calls them, before I buy into big stocks like Amazon, Apple, Tesla, Google etc. I feel nervous when I look at those big names - not because I worry about a market crash, but I worry that the stocks are going to split before I get a chance to buy them - that'd be a real wasted opportunity. But I do think we're overdue for a market decline and I'm not a fan of buying stocks at peak prices. Rumors abound about google's stock splitting this year which would be wonderful for my financial future but at this point if the market started going down I'd probably just end up with two cheaper stocks that would decline to the same price the single stock will if the market cools off later this year or next year. I like watching gold miners as well, but bitcoin and etherium present a strange new complexity. In the past people went to gold as their emergency backup "investment" but these days, especially the Chinese, are grabbing bitcoins in an attempt to get their money out of the country. I wonder how it's going to mess with the price of gold the next time the US markets dip. Anybody dabble in futures? Corn seems to have some promise considering current global corn stocks are at a low we haven't seen in about a decade.