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Anyone got stock tips?

  1. Oct 10, 2008 #1
    Well I figure since the market is going to hell and a lot of stock are dropping in price across the board, this would probably be a good time to invest. But i am a noob concerning the stock market and was wondering if anyone would care to share their knowledge/tips on how to take advantage of this situation.

    The only idea Ive had so far is that I'm thinking about buying some Google stocks if they drop a little bit lower.
     
  2. jcsd
  3. Oct 10, 2008 #2

    Ben Niehoff

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    My [largely-uninformed] guess is that it's not quite time to buy just yet. But once the market hits bottom, there will be some huge opportunities.
     
  4. Oct 10, 2008 #3
    Keep sitting on the sidelines, don't try to time the bottom. It's better to be a little late on the upside then to get tanked right away.
     
  5. Oct 10, 2008 #4
    I'll keep that in mind and just wait till it really hits rock bottom.
     
  6. Oct 10, 2008 #5

    Monique

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    One tip is to only invest money that you can really miss. That way you can just sit out the ride, or in the unfortunate event of bankruptcy you can say you tried but at least didn't loose all you got.
     
  7. Oct 10, 2008 #6

    BobG

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    Take a look at how companies that produce supermarket goods have done the last week or so. A credit crisis can cause them operating problems, but won't decrease their sales that significantly (unless the operating problems are severe enough that they can't produce enough to meet demand, in which case grocery prices are going to go up).

    Same thing with utility companies, etc; the things people have to buy no matter what.

    If their drop has followed DJIA, it's mostly for psychological reasons.

    On the other hand, a credit crisis can cripple home sales and auto sales. I wouldn't even look at auto companies for quite a while.
     
  8. Oct 10, 2008 #7
    Investing in necessity goods is safe but I don't think that will bring any big profits or will it?
     
  9. Oct 10, 2008 #8

    Gokul43201

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    Like Campbell Soups:

    [​IMG]

    Chicken soup for the financial crisis.
     
  10. Oct 10, 2008 #9
    Who consumes Campbell soups for dinner?
    Even my ramen noodles are better :smile:
     
  11. Oct 10, 2008 #10
    It's Depression Era food, soup is. Same goes for soft boiled eggs and toast. I'll bet they'll be a lot of cheese get sold too. People are trying to economize.
     
  12. Oct 10, 2008 #11

    chroot

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    Stay out of the market if you're a newbie. And, for God's sake, don't buy poster-boy stocks like Google just because of the name! Google is an advertising company, and advertising companies sink like stones in poor economic times.

    - Warren
     
  13. Oct 10, 2008 #12
    I just bought GM. Not the stock, the company. From now on it will be known as the Jimmy Motor Car Company. In order to satisfy conservatives, each car will come with a whip. And to satisfy liberals, it will come in any color you want as long as it's black.
     
  14. Oct 10, 2008 #13
    Buy old mobile homes already set up in mobile home parks. You can get them for $6,000 to $8,000 each. They rent for $400 to $500 per month.

    If you don't mind being a bit of a slumlord and having to occasionally evict a drug addict, the return on investment is tremendous. :cool: And you can still work full time at Jimmy Motor Car Company.
     
  15. Oct 10, 2008 #14

    BobG

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    If you want big profits, you have to take big risks .... in which case the auto companies are good buys. They can't go any lower .... unless they declare bankruptcy.:uhh:

    GM was at $43.20 on Oct 12, 2007. They're at $4.89 this week.
    Ford was at $26.40 on Nov 18, 2005. They're at $2.17 this week.

    If you were an employee at one of those companies and took advantage of their company savings plan (similar to a 401k, except you get GM stock or Ford stock instead of diversified investments), you'd be drunk right now.
     
  16. Oct 10, 2008 #15

    Astronuc

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    Buy a thousand shares of each on sit on them for several years. Unless they declare bankruptcy - which is conceivable for both - they won't recover until they retool and realign their product lines, which will take about two years. Meanwhile - the Japanese car companies are ahead of the game with their hybrids and electric vehicles.

    GE recovered nicely today - up 2.49 (13.10%) to 21.50.

    JP Morgan Chase (JPM) - up 4.96 (13.52%) to 41.64

    GS might be a good buy - but look at their balance sheet. They've lost quite a bit of value this week, and particularly today. But they are one of the best in their sector.
     
  17. Oct 10, 2008 #16

    Moonbear

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    As others have suggested, now is NOT a good time to invest. Prices are still dropping, and nobody knows yet how low they'll go. You'll never be able to time the rock bottom, but when stock prices start on the upswing again, there'll be plenty of time to buy while they're still low and starting to rise.

    I still would suggest that even when stocks start to rise, if you're new to investing, start out small. Don't sink your life savings into investments. Think of it just like gambling at a casino...only spend what you can afford to lose. If you get lucky or get the knack of it quickly, you'll make some money and can keep reinvesting the profit. If you get unlucky or make bad choices initially, you won't lose money you needed to live on.
     
  18. Oct 10, 2008 #17

    Redbelly98

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    Here's a funny email I just got this morning.

    Subj: investing advice

    Here is some wise investing advise!!!



    If you had purchased $1,000 of shares in AIG one year ago, you will have


    $33.00 today.





    If you had purchased $1,000 of shares in Lehman Brothers one year ago,


    you will have $0.00 today.





    But, if you had purchased $1,000 worth of beer one year ago,


    drank all the beer,


    then turned in the aluminum cans for recycling refund,


    you will have received $214.00.





    Based on the above, the best current investment plan is to drink heavily & recycle.





    It is called the 401-Keg.
     
  19. Oct 10, 2008 #18

    Garth

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    Also at the other side of the pond:
    If you had purchased £1000 of Northern Rock shares one year ago they would now be worth £4.95; with HBOS, earlier this week your £1000 would have been worth £16.50; £1000 invested in XL Leisure would now be worth less than £5; but if you bought £1000 worth of Tennents Lager one year ago, drank it all, then took the empty cans to an aluminium re-cycling plant, you would get £214. So based on the above statistics the best current investment advice is to drink heavily and re-cycle. :wink:

    (Crossed with Redbelly - Great minds think alike, fools seldom differ)

    Garth
     
    Last edited: Oct 10, 2008
  20. Oct 10, 2008 #19

    russ_watters

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    My advice would be to diversify so that the risk of bankrupcy is essentially nonexistent. For a low risk, good (but not outstanding) return and no effort, you can't beat an S&P index fund.
     
  21. Oct 10, 2008 #20
    :rofl:

    I was wondering about technology sector for long run: companies that provide VOIP, internet security, ..etc.

    And for short run, other than inferior goods I don't know which other companies will make big profits. Obviously, there are some people (companies) who would take advantage of the economic downturn.
     
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