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Anybody else ready to go ALL IN???
07-15-2008, 03:19 PM
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#1
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Full time employment: Posting here.
Join Date: May 2007
Posts: 549
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Anybody else ready to go ALL IN???
Is anybody else feeling the urge to spend your cash reserves??
Crazy ....maybe so.....or (just maybe) this could be one of those "once in a lifetime" opportunites that we've all heard about
.....real estate (at least some) bargains galore....as evidenced in other threads, Florida seems to be ON SALE!!
.....more than several GREAT stocks at bargain basement pricing....especially those financials that everyone is running away from as fast as they possibly can!!
Now for those that haven't kept up with my whining crying bellyaching WORRYING financial wisdom, I am the 3rd generation in my family to have benefited from the ownership of bank stock - BAC in particular....and while I have not owned it all since it's original purchase, I have paid attention to its pricing (value) rise and fall and the benefits derived from it....brainwashed a little maybe by the 30+ years of almost continual upward growth and the wealth created....
So....I have seen the past.....and have been taught to buy when everyone else is selling......
But my thoughts are also tempered by the wisdom of years and knowing that what appears to be "too good to be true"....usually is!!
Now....BAC at $18.52/share......prices not seen since 1996.....
I'm so tempted to go ALL IN that it's scary!!
HELP!....go ahead....talk me out of it ....or into it....I'm all ears.....and I have an AM buy order ready for a few thousand more shares.....'cause this stuff CAN'T keep going down....UGH....but that's what I've been hearing since last October.....
I'm soooooo confused!!
Where's Spock's logic when you need it!!?? ....or maybe all of this is just illogical!!??
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07-15-2008, 03:54 PM
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#2
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2007
Posts: 5,596
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Hey VA,
I know BAC seems like a real bargin but many other equities are down right now too. Instead of focusing on this one stock I would suggest pulling back a bit and looking at the big picture prior to investing. There are lots of opportunites during this "blue light special" and BAC is just one of thousands of investments to consider.
__________________
I purr therefore I am.
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07-15-2008, 04:01 PM
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#3
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2004
Location: SW Ohio
Posts: 14,404
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I wonder if all the price drops will be reflected in the holdings of MFs/ETFs many of us already own. Will indexes oriented toward value react quickly enough to load up on the newly-created beaten-down value stocks? Will stodgy old Windsor II load up the plate with new bargains?
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07-15-2008, 04:16 PM
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#4
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Thinks s/he gets paid by the post
Join Date: Apr 2007
Posts: 2,360
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Quote:
Originally Posted by VaCollector
I'm so tempted to go ALL IN that it's scary!!
I'm soooooo confused!!
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Well, given your admitted confusion, I wouldn't suggest plunging in and gambling everything on a rebound. Especially if you are close to retirement, or already retired.
Of course, if you are young then perhaps you may as well yield to temptation and 'put it all on number 18' (BAC). Even if things go horribly wrong, the odds are that time will eventually bail you out.
__________________
"To know what you prefer, instead of humbly saying Amen to what the world tells you you ought to prefer, is to have kept your soul alive". Robert Louis Stevenson, An Inland Voyage (1878)
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07-15-2008, 04:32 PM
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#5
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Thinks s/he gets paid by the post
Join Date: Jul 2007
Posts: 2,487
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I went on a shopping spree yesterday...in the morning, when the market was up...got some BAC, ED, SNY, and a few others. Spent a bundle (over a year of living expenses), now I'm wishing I would have waited a day, but I have no doubt it will go back up...eventually. I'm hoping to FIRE in a year or two so, I'm hoping it will go back up nicely by then, and if history repeats itself, it will. On the other hand, I have a nice highly paid j*b, and I can stick it out a little longer, and will keep DCAing into it as and if we go lower. It is depressing to watch it go down, but so long as divvies are not cut too much, the more I put in now, the higher my dividend income will be in a couple/three years. I know it sounds like timing the market to do this, but I always try to hold back a bit, in case things go lower and I can get better bargains.
R
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07-15-2008, 06:27 PM
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#6
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2005
Location: Central MS/Orange Beach, AL
Posts: 9,072
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I originally read the title of the thread as 'Anybody else ready to give in?' Shows you how I'm thinking.
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Retired 3/31/2007@52
Investing style: Full time wuss.
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07-15-2008, 06:30 PM
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#7
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Thinks s/he gets paid by the post
Join Date: Dec 2007
Posts: 4,764
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Whats weird. So did I. Must be from all the doom and gloom threads lately..
No we arent crazy it really does say that..
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07-15-2008, 06:54 PM
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#8
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Full time employment: Posting here.
Join Date: May 2007
Posts: 549
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Quote:
Originally Posted by Notmuchlonger
Whats weird. So did I. Must be from all the doom and gloom threads lately..
No we arent crazy it really does say that..
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I tried to edit it - but it was (evidently) too late??
Your NOT crazy, but I can't type worth poop!
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07-15-2008, 06:57 PM
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#9
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,708
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Heres the problem. If people are willing to buy in thinking its bargain time, that means we havent actually reached the point of capitulation when nobody wants to own equities.
Which means it'll go down further until that happens.
Unless of course it doesnt.
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
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07-15-2008, 08:24 PM
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#10
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Moderator Emeritus
Join Date: Dec 2002
Location: Oahu
Posts: 26,860
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Quote:
Originally Posted by cute fuzzy bunny
Heres the problem. If people are willing to buy in thinking its bargain time, that means we havent actually reached the point of capitulation when nobody wants to own equities.
Which means it'll go down further until that happens.
Unless of course it doesnt.
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I think even Jim Cramer must be jealous of the depth & breadth of the market analysis we're seeing here this month... let alone on the closed threads...
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07-15-2008, 08:34 PM
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#11
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2003
Location: Kansas City
Posts: 7,968
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Just think - what would happen if the Vanguard computers rebalancing my Target Retirement would say if they could post.
I wonder if they emit a different sounding hum when we hit bottom and turn the corner?
You know sorta like the Olympia Band at a Jazz funeral - going to the graveyard vs coming back.
I sure ain't going back to work so's I can get more money to buy more stock bargins. Sheesh - ya gotta draw the line somewhere!
heh heh heh - I too own some BAC - oh the temptation!
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07-15-2008, 08:40 PM
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#12
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Thinks s/he gets paid by the post
Join Date: Jan 2008
Posts: 2,020
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Quote:
Originally Posted by unclemick
Just think - what would happen if the Vanguard computers rebalancing my Target Retirement would say if they could post.
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We gave a coworker a crash course in AA and investing basics and then showed him some fund options at Vanguard. His quote was "cool, you mean some computers will do all of the work for me so I don't need to think about it? That's what I want!"
I don't think it's going to be easy to get him interested in day-trading, even though we have a broker one floor up.
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07-15-2008, 10:03 PM
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#13
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2008
Posts: 35,712
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Quote:
Originally Posted by VaCollector
Is anybody else feeling the urge to spend your cash reserves??
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Hi. Two weeks ago, you lamented of losing $450K, having nothing left to buy.
Obviously, that was not true. You have discovered another lump under your mattress. I am happy for you. My mattress is quite lumpy right now. Won't put it all on number 18 though . Don't even know when, but I will sprinkle it around.
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07-16-2008, 12:52 AM
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#14
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Full time employment: Posting here.
Join Date: May 2007
Posts: 549
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Quote:
Originally Posted by NW-Bound
Hi. Two weeks ago, you lamented of losing $450K, having nothing left to buy.
Obviously, that was not true. You have discovered another lump under your mattress. I am happy for you. My mattress is quite lumpy right now. Won't put it all on number 18 though . Don't even know when, but I will sprinkle it around.
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....and today I am down in excess of $500K and my situation has not changed...... in a normal environment, I would have no $$$ left to invest (as my only cash reserves are those that I am living off of) and would NEVER even consider putting those funds to work in the stock market....until now.....
......I just never thought that I would see prices like this (for BAC in particular) ever again in my lifetime....I would have thought them to be history!
....hence my inclination to go all in
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07-16-2008, 04:39 AM
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#15
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Recycles dryer sheets
Join Date: Jun 2008
Posts: 184
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The past and current price is irrelevant to your decision. Only the future price matters. So, you would like to know how much exposure they have to non-performing and overvalued mortgages. I don't know to what extent that is knowable. I see that insider Charles Gifford has been a big seller.
My big concern about the economy is that there may be a lot of propping up until Bush leaves office so that the next guy will have to deal with the situation.
Would I buy any stock now? No. Would I buy any bank stock now? No.
And that, ladies and gentleman, is a definitive BUY signal for everyone else.
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07-16-2008, 05:44 AM
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#16
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2005
Location: Central MS/Orange Beach, AL
Posts: 9,072
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Quote:
Originally Posted by VaCollector
....and today I am down in excess of $500K and my situation has not changed...... in a normal environment, I would have no $$$ left to invest (as my only cash reserves are those that I am living off of) and would NEVER even consider putting those funds to work in the stock market....until now.....
......I just never thought that I would see prices like this (for BAC in particular) ever again in my lifetime....I would have thought them to be history!
....hence my inclination to go all in
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Wow, down 1/2 a mil. But if I had a 5 million portfolio, I guess I would be down that much too. Wish I had that kind of loss.
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Retired 3/31/2007@52
Investing style: Full time wuss.
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07-16-2008, 07:50 AM
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#17
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2008
Posts: 35,712
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Quote:
Originally Posted by VaCollector
......I just never thought that I would see prices like this (for BAC in particular) ever again in my lifetime....I would have thought them to be history!
....hence my inclination to go all in
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It appears you are a follower of financial stocks, which I am not. Being an engineer, I have been a follower of electronic makers, semiconductor makers of all kinds. In the 2000-2002 crash, I had to restraint myself from going ALL IN. It is far better to wait until the smoke clears. Please be careful!
PS - In hindsight, I missed the true bottom. But when I got back to the buying mode, I discovered the world does not "feed" on just silicon chips. It also needs potato chips, i.e. all kinds of staples, energy etc..., etc... So, I rode out of the stock crash not on the tailcoat of semiconductors, but on the shoulders of oil drillers, agriculture, fertilizers, etc... What the next sector to rise out of this mess, I don't know and am still watching.
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07-16-2008, 07:57 AM
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#18
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Full time employment: Posting here.
Join Date: May 2007
Posts: 549
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trust me....you don't REALLY want it.....even with a $5 mil portfolio.....
....and FYI.....I RE'd in May 07 with $1.4 mil to invest.....at that rate, it should only take me a couple more years to lose it all
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07-16-2008, 08:08 AM
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#19
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2008
Posts: 35,712
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So, percentage wise, your situation ain't bad. You've got no right to complain.
I lost 50% from top of market in 2000 till the bottom in 2002. I recovered all of it, then have some nice nice gains. The key: I do not repeat old mistakes, I try to find new ones
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07-16-2008, 08:30 AM
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#20
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Full time employment: Posting here.
Join Date: May 2007
Posts: 549
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Quote:
Originally Posted by NW-Bound
So, percentage wise, your situation ain't bad. You've got no right to complain.
I lost 50% from top of market in 2000 till the bottom in 2002. I recovered all of it, then have some nice nice gains. The key: I do not repeat old mistakes, I try to find new ones
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Thanks for at least trying to make me feel better
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