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Varchild2008 (84.44)

If we're going sideways then what's the point?

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February 13, 2009 – Comments (7) | RELATED TICKERS: BBRY , MTW , CRNT

Seriously...If we're going sideways from now till 2012 or beyond.... Then what exactly is the point when only those who SHORT the market or play around with confusing exotic options stuff that I'll never understand.... For those of us who just want to buy and hold shares of companys we believe have a solid future at cheap prices..... What is the point of that if the entire market is going sideways to down over the long haul?

Seems to me that one has a choice.

1)  Store your money in a mattress where you'll do better than the stock market.

2)  Buy GOLD where you are bound to do far better than the stock market.

3)  Switch to investing in the FOREX currency market where you will do better than Stock Market.

4)  Flip Housing Properties or Land Properties where you will do better than investing in the Stock Market.

5)  Or continue to buy and hold onto shares of stock from companys during a BEAR MARKET that's sending share prices SIDEWAYS over the long haul.

Heck even Research in Motion just dove back into the 40s again and Jim Cramer is screaming, "TAKE YOUR PROFITS" and all I can say is......huh?  What profits?

7 Comments – Post Your Own

#1) On February 13, 2009 at 9:40 AM, djemonk (< 20) wrote:

I don't think Gold is bound to do far better than the stock market over the long haul.  That's just me.  That being said, I love mining companies and will pick up gold miners as they fall below what I believe their intrinsic value to be. 

I'm with you on #5.  I'm watching the market and waiting for companies that I like to trade irrationally low.  I snap up shares of them and then forget about the market until my investment cash supply rebuilds and then I jump again. I hope the market trades sideways for the next decade and with this stimulus bill it just might.  I plan to be a net buyer of stocks for a long time and I love watching prices go down.

The technical traders, bless their hearts, are always there every day doing their thing and are sometimes willing to sell me shares of great companies at attractive prices.

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#2) On February 13, 2009 at 10:30 AM, philippalmer (62.73) wrote:

Have to put the big ditto stamp on monks comment.  My last sal of stock was the run-up of Bear stearns from $2.  Since then i have been buying great companies at what I believe to be great prices.  Hey, if I never see the return to the bulls, at least my kids will inherit some ownership in some solid companies and could potentially benefit greatly as such. 

In the  meantime, the exotic options stuff is really not that confusing once you take the time to understand it.  The OCC has a great website for education about options.  The opportunities are limitless.  You can literally put together strategies that net .5 to 1% a week in this crazy market.  Or for simple strategies, insure your equity purchases with puts and make some income by selling calls on the stock you own.  They are a great tool to have in your portfolio and I suggest at least becoming educated about them.

When all else fails, continue to buy and one day you will be rewarded for your patience.

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#3) On February 13, 2009 at 10:30 AM, philippalmer (62.73) wrote:

Have to put the big ditto stamp on monks comment.  My last sal of stock was the run-up of Bear stearns from $2.  Since then i have been buying great companies at what I believe to be great prices.  Hey, if I never see the return to the bulls, at least my kids will inherit some ownership in some solid companies and could potentially benefit greatly as such. 

In the  meantime, the exotic options stuff is really not that confusing once you take the time to understand it.  The OCC has a great website for education about options.  The opportunities are limitless.  You can literally put together strategies that net .5 to 1% a week in this crazy market.  Or for simple strategies, insure your equity purchases with puts and make some income by selling calls on the stock you own.  They are a great tool to have in your portfolio and I suggest at least becoming educated about them.

When all else fails, continue to buy and one day you will be rewarded for your patience.

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#4) On February 13, 2009 at 10:50 AM, lquadland10 (< 20) wrote:

Not sideways down to 6,000 is the next drop in about a month.

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#5) On February 13, 2009 at 11:12 AM, Gemini846 (89.88) wrote:

Dividends still pay quarter after quarter if you trade sideways.

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#6) On February 13, 2009 at 12:05 PM, tjensen3618 (96.62) wrote:

I second Gemini's comment.  Find stable companies that have paid solid dividends year after year and even if the market stays stagnant, you should be able to make up for it with the paid dividends.

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#7) On February 13, 2009 at 8:15 PM, Varchild2008 (84.44) wrote:

Yep and as an aside.... MTW (Manitowoc) struggling just as much as all the others....Nonetheless is supporting their Dividend payment.  Granted, it's only a mere 2 cents a share... But, I like the potential this stock has for more than just the dividend.

It's great finding small caps that pay dividends.

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