Anyone Buying Into Today's Dip?

[Another Reader]

It was the result of a distribution. When there are big drops this time of year, always look for a distribution as the cause. Wait a few days.

Looks like TRP did a lot of portfolio shuffling. I have substantial capital gains in multiple accounts, including taxable accounts.

 

[marko]

Looks like TRP did a lot of portfolio shuffling. I have substantial capital gains in multiple accounts, including taxable accounts.

As one who lives exclusively on dividends and MF cap gains, I'm quite happy with TRP's actions this year! Our best year for CGs ever, however year-end dividends were the worst in 16 years; still, our best year for spendable cash.

 

[freedom2022]

Self-Admitted Novice here. (Not experienced in stocks, and though I'm now vested, I frankly think 50% of it is WWF entertainment).

But Microsoft, Apple, Google.....these companies own the human race. They have more money than some major countries. The world's people - use these companies as much as they use their lungs. People can't go to the bathroom without taking these companies into the stall with them. If a government investigates them - the government would be using their products to do so. With all that money, and so many investors that gobbled up their debt[ and bonds at nothing-rates recently.....I always wonder why...... a whopping 2% higher interest rate vis going to hurt these entities so much. They were doing well before Covid, when rates were higher. Yes the Fed-candy helps but really 1-2% higher - I don't see how that hurts MSFT software and cloud, or Google ad revenue (what, are businesses grporationonna advertising in the local newspaper?) and apple - the world's peoples will whine about a $50 co-pay for a doctor, but they'll line up for the newest phone or download the app or buy the music.

It is about PE ratio. Msft is 36, Appl is 30, Googl is 27. In 2000 dot com bust, Shiller PE ratio was 43.
When interest rate is low everybody invest. Hedge funds even borrow money to invest. Majority of stocks go up. When interest rate is high, everybody become selective in investment. They may start selling stocks. The stock price will come down until reasonable PE ratio is achieved.
Also, when interest rate is high and inflation is high, people will save money and spend less. The revenue and the profit of corporations will be reduced.

 

[target2019]

When I filled in the year-end number in my spreadsheets I recorded a 39.98 for Shiller PE10 and said to myself, "That has to come down."

So today I am looking at open orders that are getting very close to a buy. When I set these mid-December they looked as something that would not happen.

 

[joesxm3]

I had an order for GOOG that I thought would never fill. Yesterday morning I bought my first share at market price. Later that day I was shocked to see that my orders had triggered. The same for some other volatile items that I had set orders for crazy low spikes that I never expected to happen.

 

[Fermion]

Buying some biotechs on the general dip. It is the only sector of the market that has some serious undervalue. Specifically I am buying some Vanda in the high $15 area today. They have $410m in cash, and a market cap of $880m with $260m in revenue, about $60m in profit each year and a potential approval of a drug to treat gastroparesis coming soon this year (phase III results any day now).

 

[Brat]

Cramer said to wait until Microsoft hits a low.

 

[Car-Guy]

Cramer said to wait until Microsoft hits a low.

Did he say what that would be? Now that would be good info, if he knew.

 

[freedom2022]

FAANG are on the way down. Energy and financial stocks are on the way up. The rotation move to energy and financial stocks. I am not sure this is temporally or it keeps going with Fed rising interest rates at least three times this year. Any thought?

 

[COcheesehead]

Late cycles favor income generators. Recession in ‘23? Who knows, but a lot of the fuel for the early rally is gone.

 

[turbo89]

I rolled some cash into the market this past week and will continue to buy as it dips… I have a [hopefully] long time horizon.

 

[Born2Fish]

Maybe today will be the start of a big pullback...that's when we find the best bargains.

 

[Car-Guy]

Buying back in again today although not as much as I have in the past few weeks. So far

 

[steelyman]

Times like this are when you do not want to sell anything if you can avoid it.

No one knows if the market is headed further down so it’s a personal call with respect to buying.

I have a few alerts/triggers on but they’re quite far away from current levels so it’s do-nothing time over here.

 

[target2019]

Started a position in SCHG growth ETF at $150.00.

 

[MichealKnight]

1/10

PYPL: Small Buy@ $179 and change

UNH: Small Buy@ $459

Both are new positions.


Existing core positions I'm tempted to add to.....but not there yet:

FB

MSFT

Utilities - though not down, I like them.

Speculative Position I'm tempted to add to:

MTTR

 

[Fermion]

Bought some more Vanda at $15.15 today. Baby getting thrown out with bathwater.

Market cap at $15.15 is $850m

Cash on hand is $410m

Net of cash market cap is $440m

Sales of $270m, profit of $60m

Imminent approval expected of new drug to add to sales

Honestly I don't quite understand why some enterprising vulture doesn't just take this one out.

 

[Montecfo]

Things getting cheaper but it's a tough environment. GS now predicting 4 Rate hikes this year.

Should be amazing for banks if they are correct. I'm dubious but I do hold a lot of banks and drugs seasoned with oils

 

[jcfradio]

PYPL: Small Buy@ $179 and change

UNH: Small Buy@ $459

Both are new positions.


Existing core positions I'm tempted to add to.....but not there yet:

FB

MSFT

Utilities - though not down, I like them.

Speculative Position I'm tempted to add to:

MTTR

I also have a small position in MTTR that I am thinking to add to.

 

[aja8888]

Looking to sell some puts on Ford and GM.

 

[freedom2022]

I am patient in buying. I don't want to catch the falling knife.

 

[audreyh1]

It’s going to take quite a while for me to need to rebalance.

 

[aja8888]

I have some cash to reinvest but I'm sitting on the sidelines until March or so when the FED starts making its moves. We may see some opportunity to put more into equities at reduced prices. I have a few stocks (mostly energy) and two ETFs. Yeah, it's a bit like market timing.

 

[Montecfo]

Nice rally off the lows today.

 

[athena53]

Well, I keep THINKING I'm buying into a dip and then it dips again!

I've been adding to my ONEQ (NASDAQ) ETF and today I bought another 10 shares of ULTA. I bought 10 shares less than a year ago and they're up 20% and the analysts still love it. I don't wear makeup but am happy to make $$ off those who do.