Stock market chatter

[cypher1]

I bought American yesterday. Royal Caribbean is next on my watch list.

I saw that. I kind of jumped the gun and bought AAL of 65 shares at 15.26 in the afternoon. Oh well.

[disneysteve]

I saw that. I kind of jumped the gun and bought AAL of 65 shares at 15.26 in the afternoon. Oh well.

That's still not bad for a stock that was over $30 a month ago.

[disneysteve]

The fact that stock trades are now free makes trading so much more enticing, which is both good and bad. The good thing, if you consider that good, is that it's easier to make quick money on the bounces. I bought 300 shares of stock yesterday and the price is currently up about $0.75 so I could turn around right now and sell and make an easy $225 (minus taxes). That's not my plan but with no commissions to worry about, I can see the appeal of playing that game all day long.

[~bs]

The fact that stock trades are now free makes trading so much more enticing, which is both good and bad. The good thing, if you consider that good, is that it's easier to make quick money on the bounces. I bought 300 shares of stock yesterday and the price is currently up about $0.75 so I could turn around right now and sell and make an easy $225 (minus taxes). That's not my plan but with no commissions to worry about, I can see the appeal of playing that game all day long.

It also makes dollar cost averaging easy since you don't have to worry about the fee. You can dribble small money into efts daily if you wish.

[kork13]

It also makes dollar cost averaging easy since you don't have to worry about the fee. You can dribble small money into efts daily if you wish.

This is part of the reason that I've decided to switch my taxable investing from mutual funds to ETFs & a couple select stocks. Of course ETFs have been free trades from Vanguard for a while... But having free stock trades open up still more options.

[cypher1]

This is part of the reason that I've decided to switch my taxable investing from mutual funds to ETFs & a couple select stocks. Of course ETFs have been free trades from Vanguard for a while... But having free stock trades open up still more options.

Kork, I've been debating about moving taxable investments from Index Funds to ETFs for the last few months. The main reason was for tax efficiency, but I'm not as familiar with ETFs. This should probably be a separate thread, but debating if its worth the transition. Thoughts? I'd leave Roth and Rollover with Indexes.

[kork13]

Kork, I've been debating about moving taxable investments from Index Funds to ETFs for the last few months. The main reason was for tax efficiency, but I'm not as familiar with ETFs. This should probably be a separate thread, but debating if its worth the transition. Thoughts? I'd leave Roth and Rollover with Indexes.

I actually did start a separate thread for that exact topic back around the New Year: https://www.savingadvice.com/forums/...tf-vs-index-mf

Feel free to browse through there, or even resurrect it to ask some of your own questions. But in the end, I did decide to go ahead with moving my taxable investments to ETFs. Better tax efficiency, slightly lower costs, and more control. It does have some negatives (notably: more hands-on), which is why I'm leaving my retirement accounts alone (as you mention), with regular auto-investments going into the "standard" 3-fund structure.

ETA: One benefit that I've recognized about the 'hands-on' requirement of using ETFs: It becomes much easier to maintain your desired AA, because you can readjust to it with every single purchase. While you can do that with MF's as well, the fact that MF purchases would be 95%+ automated (at least for me) makes that far less likely to occur.

[kork13]

Random thought while watching the news (avoiding political posturing if possible).... The apparently strong performance tonight from VP Biden in the Democratic primary will likely help to buoy the market tomorrow -- the market has generally reacted well to Biden beating Sanders, presumably because they presume that a Biden candidate/president would be better for business than a self-proclaimed socialist. The dead cat bounces yet again!

[cypher1]

I actually did start a separate thread for that exact topic back around the New Year: https://www.savingadvice.com/forums/...tf-vs-index-mf

Feel free to browse through there, or even resurrect it to ask some of your own questions. But in the end, I did decide to go ahead with moving my taxable investments to ETFs. Better tax efficiency, slightly lower costs, and more control. It does have some negatives (notably: more hands-on), which is why I'm leaving my retirement accounts alone (as you mention), with regular auto-investments going into the "standard" 3-fund structure.

Thanks for the thread reminder!

[TexasHusker]

Random thought while watching the news (avoiding political posturing if possible).... The apparently strong performance tonight from VP Biden in the Democratic primary will likely help to buoy the market tomorrow -- the market has generally reacted well to Biden beating Sanders, presumably because they presume that a Biden candidate/president would be better for business than a self-proclaimed socialist. The dead cat bounces yet again!

I suspect the markets have long since baked in Biden as the presumptive Democratic nominee.

[disneysteve]

I suspect the markets have long since baked in Biden as the presumptive Democratic nominee.

At least since last Tuesday. But yes, definitely after tonight. Sanders is done.

[bjl584]

At least since last Tuesday. But yes, definitely after tonight. Sanders is done.

yep. I saw that a lot of the youth vote that he attracted back in 2016 have abandoned him.
for whatever reasons the younger voters aren't as interested or as engaged this election cycle.

[TexasHusker]

yep. I saw that a lot of the youth vote that he attracted back in 2016 have abandoned him.
for whatever reasons the younger voters aren't as interested or as engaged this election cycle.

The “young voters” can never be depended upon. They are in the coffee shops stroking their beards.

[TexasHusker]

So tomorrow at least, we will get some actual data (unemployment and new jobs report). It will be nice to reconnect to hard data. Right now we are in a whirlwind of complete uncertainty with CV19. There are no predictive models for this situation.

[Jluke]

Every other day (M, T, W), down then up then down cycle continues