Another....very simple article.....but than again.....long term investing is all about simplicity. Try this Warren Buffett advice if you’re scared to invest, says 28-year-old former stock trader on track to earn $1 million this year https://www.cnbc.com/2022/08/17/lau...nvesting-if-the-stock-market-scares-you-.html (BOLD is my opinion OR what I consider important content) The GDP dipped in July, sparking recession fears and scaring many Americans about their financial futures. That fear may even lead some to avoid investing altogether, or to panic and sell current stocks. But it shouldn’t. For first-time investors who may be afraid of the current market, the “Wolfette of Wall Street” Lauren Simmons shares some advice to try: Ignore how you feel. “Warren Buffett says never invest with emotions,” the 28-year-old tells CNBC Make It. “So if you’re investing out of fear or really excited and you’re chasing something: No.” Buffett, investing legend and CEO of Berkshire Hathaway, doesn’t allow current events or the news to affect his investment decision making, he said on CNBC’s “Squawk Box” in 2018. No matter what happens, “we will buy the same stocks today that we were buying last week,” he said. That’s because changing your investments based on emotion goes against investing for the long-term. Instead, once you find a company worth investing in, stick with it. “If you aren’t willing to own a stock for 10 years, don’t even think about owning it for 10 minutes,” Buffett said in his 1996 shareholders letter. Simmons agrees. “Long-term investing always perseveres,” she says. “We do not need to be watching the stock market on a day-to-day basis. It’s like watching paint dry, and it will give you a heart attack.” It’s also important to learn as much as you can before investing, says Simmons, who became the youngest full-time woman trader on Wall Street at 22 and is on track to earn $1 million this year. You’re not going to miss some opportunity if you don’t invest today. “You’re not going to miss some opportunity if you don’t invest today,” she says. “Really take the time to invest.” Simmons herself took two years to figure out what kind of investor she wanted to be. Simmons emphasizes the importance of understanding your risk tolerance as well. If you have a high risk tolerance, you may be OK investing in speculative assets like crypto, Simmons explains, while a more conservative investor may stick to putting money in savings accounts, despite the low interest rates. Most investors will fall somewhere in between, investing in a mix of bonds and equities, based on their individual goals. Of course, if you are not in a good financial situation to invest, wait. If you don’t have savings or have continuous debt, “please do not invest your money,” Simmons says. “Just take [your] time. Educate, educate, educate — and then invest.”" MY COMMENT That little phrase again......"risk tolerance". This goes hand in hand with portfolio risk and construction. Understanding and knowing your risk tolerance........works both ways. Some people are invested in stocks and funds that are way too risky for their tolerance. Other people.....as mentioned above in a number of posts about young people being invested in bonds.......are way too invested in safe investments...compared to their risk tolerance and age. Either situation can lead to disaster.
An obscure open today. The minimal market direction today is down....but not very confident. Seems a lot like yesterday.
I am seeing more discussion on this topic lately. Making the case for a bear market rally, not a new bull run: Morning Brief https://finance.yahoo.com/news/why-...ally-and-not-a-new-bull-market-093035076.html (BOLD is my opinion OR what I consider important content) "After a nearly 25% rally off the June lows, the Nasdaq Composite (^IXIC) took a step back Wednesday with its worst day in nearly three weeks. And while it's too soon to throw in the towel on this two-month rally, there's a growing chorus of Wall Street strategists warning stocks have come too far too fast, and are due for a pullback. Worse yet, some professional money managers expect a test of the 2022 lows with significant downside follow through should they break — which could amount to a drop of 25% from currentprice levels. Katie Stockton, founder at Fairlead Strategies, recently joined Yahoo Finance Live to give some longer-term context to the current bullish moves. Stockton is impressed by both the momentum of the rally and its breadth — or number of stocks participating to the upside. If this is the beginning of a new bull market, Stockton would want to see more of the same. "If we started to see a lot of breakouts across the board that seem to have some staying power, that would be one encouraging factor," Stockton said. While Stockton concedes we don't yet know if this is a classic bear market rally or a bullish reversal — longer-term charts suggest more downside. On Tuesday, the S&P 500 kissed its 200-day moving average, a key technical level from which it promptly sunk. Stockton notes that the slope of that average is pointing lower — the opposite of what you want to see in a long-term bull market. The S&P 500 hit its 200-day moving average on Tuesday for the first time in months. The index immediately traded lower, suggesting the market downtrend remains intact for now. Stockton is eyeing the 3,815 level in the S&P 500 as a potential retest zone being discussed by market technicians. But if these lows are broken decisively — meaning stocks spend a couple weeks below this level — we could easily see materially lower prices. "Unfortunately, the next support level is around 3,500. But the secondary support level would become 3,200 ... So with a breakdown below 3,815, that would then target about 3,200 based on next support." That 3,200 level would be 34% down from the S&P 500 all-time high and 25% off Wednesday's close. Strategists at Goldman Sachs, meanwhile, recently outlined seven reasons stocks are in a "perfect storm" to benefit from money flows into the end of the month — including expected institutional money flows as well as retail investor FOMO. Yet, equities investors face several headwinds as we head into this Friday's monthly options expiration and attempt to ride out the historically volatile month of August. August is seasonally an outlier when it comes to the performance of the major averages, and outside of September has historically been the year's weakest month. Liquidity tends to be low with vacations and new school years preoccupying many traders, creating the conditions for volatility spikes. So far this month, we've seen the opposite — as volatility has trended lower with rising stock prices. Notably, the CBOE Volatility Index (^VIX) has plummeted from the mid-30's to just below 20, only slightly above its lowest levels of the year. It would not be uncommon to see an upside reversal from here in the VIX that would be concurrent with another leg lower in stocks. Monthly options expiration this Friday could be another bearish catalyst. For technical reasons, bets on the future direction of the S&P 500 will be rolling off traders' books, potentially leading to greater volatility. Further, Stockton hammers home a tried and true trading maxim — when markets bottom, it's a process, and not the result of a singular event. Stockton doesn't believe this process is complete given we're currently seeing the greatest downside momentum since the Global Financial Crisis in 2008. "We want to make sure that there's some kind of bottoming process. We don't think this is something that can end in a V-bottom type of fashion with the June low being the last low of the bear market cycle. We think there will be some kind of retest, and that's important as the market sort of absorbs a long-term oversold reading," Stockton said. Given the unpredictable nature of markets, a rally to fresh all-time highs isn't impossible, but simply unlikely. More likely is this market continues to frustrate investors — sometimes to the upside, and more often to the downside." MY COMMENT This is a STRANGE little article. it starts out basing its premise on the fact that we had a SINGLE down day yesterday. It than goes on to quote a number of sources that are positive about the markets....but immediately discounts what they are saying. It than goes into a bunch of hocus-pocus about charts and Technical "stuff". A very good example of media fear mongering with little substance to support what is being argued.
Ok ZUKODANY.....I will spread the LOVE around a little bit. I am off to a Dr appointment.....so YOU are in charge of the markets today. Dont mess up....we are all counting on you.
It is no wonder some people do not invest in the market. It is also not surprising a lot of people are constantly jumping in and out of things with no clear plan. Then again, there are so many "experts" out there that a person can find at least one that aligns with their belief and they are either going to follow them off a cliff or maybe they get lucky and call it right. In either case, a short time later that same "expert" will change their position into some other prediction about what is going to happen. I cannot imagine trying to manage my portfolio plan based on any of the noise that is constantly in overdrive.
You done good.....ZUKODANY. You took a mildly negative day that could have very easily gotten out of control to the negative side......and....you ended with ALL the averages in the green. I even managed to end the day in the green today......very moderate.....but a nice victory none the less. I got beat by the SP500 by 0.14%. I will take the loss to the SP500 any day, all day long.....if I get to end the day in the green. My winner of the day was NVIDIA. I had 5 stocks UP and 5 stocks DOWN. We are pushing toward ANOTHER positive week right now.....if....we can hang on tomorrow. At least all the FED stuff, all the economic stuff, and all the earnings this week....are behind us. CLEAR SAILING TOMORROW.......yeah right.
You are so right......as usual.....Smokie. I like your posts.....of course I agree with most of what you post. It is so CRAZY for investors now in the "modern era"......the....... "information age". I am so glad that I came up as an investor in the DARK AGES. ALL we had back than was the daily "Wall Street Journal" or........myself......the daily "Investors Business Daily". There was little research and for the most part no way to research anything anyway. I cant imagine having to figure out how to invest, what to invest in, etc, etc, with all the constant 24/7 BALONEY that is out there now. A classic case of so much information and so much data that you end up with INFORMATION OVERLOAD and DATA PARALYSIS.
I will post this for myself.....since I was totally our of touch with what was happening in the markets today. I had my phone with me.....but....did not care to waste the time looking at the markets. Stocks finish higher following another choppy session https://finance.yahoo.com/news/stock-market-live-news-updates-august-18-114819317.html (BOLD is my opinion OR what I consider important content) "Stocks finished higher on Thursday with the major averages logging modest gains following another choppy session for U.S. stocks. When the closing bell rang on Wall Street, the S&P 500 was up 0.24%, the Dow up just less than 0.1%, and the Nasdaq up up 0.2%. This rebound followed trading on Wednesday that saw all three indexes post losses with the Nasdaq falling more than 1%. Underneath the surface of indecisive indices, the retail sector remained in focus, with the latest meme rally for Bed Bath & Beyond (BBBY) and earnings out of BJ's Wholesale Club (BJ) and Kohl's (KSS) drawing the bulk of investor attention. Results from Kohl's before the opening bell disappointing to the downside, and shares of retailer closed Thursday's session down nearly 8%. Kohl's slashed its full-year forecast, saying it expects sales will fall 5%-6% after having previously expected a modest increase in sales this year. Full-year earnings per share are now expected to be between $2.80-$3.20; the company had previously expected earnings per share in a range of $6.45-$6.85. On the flip side, shares of BJ's Wholesale Club gained 7% on Thursday after the company reported results that topped estimates and the company raised its profit forecast. In a release, the company said: "Our business model is designed to work well in the current consumer environment where value is king." Same-store sales at BJ's clubs rose 19.8% over the same period last year during the second quarter. Elsewhere in retail, shares of Bed Bath & Beyond remain a fascination for investors, with shares falling 19.6% after an SEC filing on Wednesday revealed Ryan Cohen has filed to sell his entire stake in the retailer. Cohen's RC Ventures, which owns an 11.8% stake in retailer, revealed plans to unload the stake in a Form 144 filed with the SEC on Tuesday; as of the filing date, Cohen had not sold any shares. Cohen first revealed his position in Bed Bath & Beyond in March. In a statement on Thursday, Bed Bath & Beyond said: "We were pleased to have reached a constructive agreement with RC Ventures in March and are committed to maximizing value for all shareholders. We are continuing to execute on our priorities to enhance liquidity, make strategic changes and improve operations to win back customers, and drive cost efficiencies; all to restore our company to its heritage as the best destination for the home, for all stakeholders. Specifically, we have been working expeditiously over the past several weeks with external financial advisors and lenders on strengthening our balance sheet, and the Company will provide more information in an update at the end of this month." In another oddity related to this saga, the Financial Times late Wednesday reported a 20-year-old college student from New Jersey cashed in $110 million during Bed Bath & Beyond's recent rally. Jake Freeman told the FT he raised $25 million from friends and family, put it all on Bed Bath & Beyond, sent the company a letter demanding it fix its capital structure, and then cashed out. On the index level, traders continued to monitor the 200-day moving average on the S&P 500, a level the index reached on Tuesday and has since traded below, suggesting the market's long-term trend remains in control. WTI crude oil futures, which on Tuesday notched the lowest settlement since January 25, were up more than 2.5% on Thursday, with the price of oil settling near $90.60 a barrel. On the economic data side, the weekly report on initial jobless claims showed fewer Americans than expected filed for first-time unemployment insurance last week. Data showed 250,000 initial claims were filed, less than the 260,000 that economists had expected. Initial claims have been closely-watched through the summer for signs of a softening labor market. Existing home sales data also showed a sharper-than-expected drop in the number of completed transactions last month, with home prices declining from June to July, the first month-on-month drop in prices since January. Still, home prices rose 10.8% over last year in July." MY COMMENT LOL......I guess the media tomorrow will be saying that the Wednesday.....BEAR MARKET....is now over in one day. If we are down tomorrow it will be the start of another BEAR MARKET. We have now reached MAXIMUM CHAOS......where one day market events are being pushed as PROOF of an UP or DOWN market future for us all.
The article e above mentioned a young investor making a big gain in Bed, Bath & Beyond. Here is more detail on that fun story. This investor made $110 million from trading Bed Bath & Beyond — and he’s a 20-year-old student https://www.marketwatch.com/story/t...20-year-old-student-11660814284?siteid=yhoof2 (BOLD is my opinion OR what I consider important content) "At least one investor exited Bed Bath & Beyond ahead of GameStop chairman Ryan Cohen. Securities and Exchange Commission filings show that Jake Freeman, who is a 20-year-old student, made $110 million from meme-stock favorite Bed Bath & Beyond BBBY, -19.63%. Freeman snapped up a 6.2% stake in the homeware retailer in July -– almost 5 million shares equating to approximately $25 million, or $5.50 per share. On Tuesday, Freeman sold over $130 million worth of stock, the filings show. “I did not expect the price to soar as it did,” Freeman told MarketWatch. “I did expect that as BBBY better structured its balance sheet for value to be unlocked. I felt at those elevated levels, BBBY was not worth it from a risk/reward standpoint.” Shares of Bed Bath & Beyond fell more than 18% in after-hours trading on Wednesday after Cohen disclosed his plans to sell his big stake in the company just months after he bought it. He’s a student at the University of Southern California and according to first reports from the Financial Times, he raised the initial money from friends and family. Freeman has interned for New Jersey hedge fund Volaris Capital over the years, according to his LinkedIn profile. According to the FT, Freeman and his uncle Dr Scott Freeman, a former pharmaceutical executive, recently amassed an activist stake in pharmaceutical company Mind Medicine MNMD, +36.18%. Freeman told MarketWatch he now plans to focus on having a “constructive” dialogue with the board of Mind Medicine alongside his study of complex analysis and mathematical statistics at USC. He’s now studying for the GRE in math. After Freeman acquired Bed Bath & Beyond in July via Freeman Capital Management, a fund registered in Wyoming, according to filings with the SEC, he sent a letter to management, saying the company was “facing an existential crisis for its survival.” He advised the board to “cut its cash-burn rate, drastically improve its capital structure, and raise cash.” He suggests taking advantage of the implied volatility of the stock by swapping debt and then issuing a convertible bond." MY COMMENT Way more to this story than is being reported. What 20 year old can raise $25MILLION from family and friends. In addition what 20 year old has a CAPITAL MANAGEMENT fund registered in Wyoming under the same name as his family name. A fun story....but not exactly being reported accurately.......so......no, dont get your hopes up that you can duplicate this.
I hate to see management changes in one of my 10 stocks...but....this looks like a safe bet for us shareholders. Home Depot CEO Ted Decker to replace retiring Craig Menear as chairman https://www.cnbc.com/2022/08/18/hom...eplace-retiring-craig-menear-as-chairman.html (BOLD is my opinion OR what I consider important content) "Key Points Home Depot has named CEO Ted Decker as the chairman of the board, the company announced Thursday. He replaces former CEO Craig Menear, who will retire as chairman Sept. 30. Decker took over as CEO in March, when Menear stepped down from that role. Home Depot has named CEO Ted Decker as the chairman of the board, the company announced Thursday. He replaces former CEO Craig Menear, who will retire as chairman Sept. 30. Decker took over as CEO in March, when Menear stepped down from that role. Prior to that, Menear had been the company’s chief executive since 2014. The announcement comes two days after Home Depot’s second quarter earnings report, which reflected strong performance even as consumers grappled with high inflation. The company’s statement didn’t give a reason for Menear’s retirement. The board thanked Menear for his service with the company, and praised Decker’s performance thus far as CEO. “During Ted’s tenure as CEO and a member of the board, we have witnessed firsthand his passion for the customer experience and our associates, and we look forward to continuing to work with him as chair,” Greg Brenneman, the board’s lead director, said in a news release. Both men are company veterans. Menear started at Home Depot in 1997, and Decker began his tenure there in 2000. Decker began as a director of business valuation and served as executive vice president of merchandising before being named chief operating officer and president in October 2020. Shares of the company were unchanged after hours." MY COMMENT At least he is a company VETERAN. I hate to see outside management brought in to one of my companies.
And likewise, ended up slightly in the green today. Just enough to scratch some chump change out of an otherwise very confused day. But as uncle W says “Green is Green”. Yup, the whole media is talking about that kid investing in BB&B. And look at it now.. he sells his position and its gone to the toilets. What a joke the stock market has become, it is as a whole, in fact, a meme stock. I remember when Jordan Belfort was the flavor of the day. Now it’s kids of some rich parents from crown heights Brooklyn
Good job zukodany...it was a tough assignment today for awhile. Agree on the HD post. They have been a good company for awhile with obviously a good management team. I think it will hold the line since the guy taking over has been part of it for some time. Yeah the meme stock thing is nutty. I think a lot of big money goes in and it baits folks into it and then the rug is pulled out....and the big money leaves with a bigger pile of money. I can't imagine how many people have lost in that repeated scheme. Let alone the company...it is a dumpster fire, so there is no value in it other than what the traders are using it for. Not something I would consider, but it is a popular thing for some obviously. There is a niche' for these type of stocks nowadays no doubt. We have had a nice run for awhile. Maybe we can keep moving forward....anything is possible.
