2016 Stock prediction

[BiggerCy]

Do any of you guys have advice on where to start investing? Or how to get into it or suggestions for beginners? Sorry for the ignorant questions

I have mutual funds through Vanguard, and I would recommend them if you are looking at mutual funds. As others on here have said, Vanguard is boring, and boring is good. Well, that pretty much sums it up. They have a very low cost basis too when compared to many other companies in the market. I would suggest diversifying your portfolio, with a mixture of stocks and bonds, domestic and international, large cap and small cap. That will be a good starting strategy.

Oh yeah, don't forget about a Roth IRA as a retirement fund, and max it out every year.

 

[DSMCy]

I've looked into them too. I've heard the market info is a little delayed as far as pricing updates. Any experience with that? I think that some reviews mentioned closed out positions have to sit for 3 days or something around that before you can withdrawal any of it so I'm assuming they charge interest on that?

I don't know about the delay in market info. I don't do a ton of trading. When I do buy, I usually set a limit order and buy if/when the price reaches that point.

There is a 3 day stock settlement timeframe. You're probably right that Robinhood pools those funds to earn interest.
https://support.robinhood.com/hc/en-us/articles/203585565-Stock-Settlement
You may not have meant it this way, but the bolded part isn't correct. I personally don't get charged any interest. They may make some interest from a 3rd party, but so far I haven't paid Robinhood anything.

 

[BCClone]

I have mutual funds through Vanguard, and I would recommend them if you are looking at mutual funds. As others on here have said, Vanguard is boring, and boring is good. Well, that pretty much sums it up. They have a very low cost basis too when compared to many other companies in the market. I would suggest diversifying your portfolio, with a mixture of stocks and bonds, domestic and international, large cap and small cap. That will be a good starting strategy.

Oh yeah, don't forget about a Roth IRA as a retirement fund, and max it out every year.

I agree with starting with mutual funds. Allows you to learn basics and gain a little experience what your risk allowance is. There are several good companies out there. My first "broker" was attached to American funds, also a solid low cost company. Personally I despise bonds and am heavy small cap and international growth with the mutual funds I use.

I would start here and start gaining knowledge.

 

[JHUNSY]

I don't know about the delay in market info. I don't do a ton of trading. When I do buy, I usually set a limit order and buy if/when the price reaches that point.

There is a 3 day stock settlement timeframe. You're probably right that Robinhood pools those funds to earn interest.
https://support.robinhood.com/hc/en-us/articles/203585565-Stock-Settlement
You may not have meant it this way, but the bolded part isn't correct. I personally don't get charged any interest. They may make some interest from a 3rd party, but so far I haven't paid Robinhood anything.

Hmm, interesting. Maybe I misinterpreted the 3 day hold information when I had checked into it before.

 

[Bestaluckcy]

Do any of you guys have advice on where to start investing? Or how to get into it or suggestions for beginners? Sorry for the ignorant questions

Everything you need to know at bogelheads.org. Follow their 3 fund portfolio or 4 fund portfolio. A simple way to wealthy. Not as exciting as trying your luck at the casino but far more effective.

 

[brianhos]

Do any of you guys have advice on where to start investing? Or how to get into it or suggestions for beginners? Sorry for the ignorant questions

Get a Vanguard account, setup $X monthly transfers, pick some date funds and relax.

 

[Dopey]

I agree with starting with mutual funds. Allows you to learn basics and gain a little experience what your risk allowance is. There are several good companies out there. My first "broker" was attached to American funds, also a solid low cost company. Personally I despise bonds and am heavy small cap and international growth with the mutual funds I use.

I would start here and start gaining knowledge.

American Funds are low cost??? Their expense ratios are at least 4-6 x's higher than Vanguard in my experience. Also, American Funds had a 5.75% front end load which is huge compared to Vanguard's 0.00%.......

I made the mistake of investing through them when I first started. Bogleheads.com, as others have mentioned, taught me how much money/potential gains I was wasting on fees. I immediately transferred everything to Vanguard.

 

[DoctorUncle]

Dopey's right. There's no need to ever pay a load on a mutual fund.

 

[enisthemenace]

Pricey option: AAPL (105.26)
Mid-range: AZN (33.95) - this is my play
Entry level/value: SSW (15.81)

 

[BCClone]

American Funds are low cost??? Their expense ratios are at least 4-6 x's higher than Vanguard in my experience. Also, American Funds had a 5.75% front end load which is huge compared to Vanguard's 0.00%.......

I made the mistake of investing through them when I first started. Bogleheads.com, as others have mentioned, taught me how much money/potential gains I was wasting on fees. I immediately transferred everything to Vanguard.

How is .6-.7 4-6x .4-.5?? New math to me. I use growth funds. I checked vanguard expenses that is what I got. 5.75 is below 25k also. Drops fairly quickly. Seeing the 10 year returns fir vanguard compared to my 10 year returns, im not moving to vanguard.

 

[Dopey]

How is .6-.7 4-6x .4-.5?? New math to me. I use growth funds. I checked vanguard expenses that is what I got. 5.75 is below 25k also. Drops fairly quickly. Seeing the 10 year returns fir vanguard compared to my 10 year returns, im not moving to vanguard.

Vanguard total stock market is 0.17. American Fund's growth of America fund is 0.68. Do the math on that and get back to me. That's a pretty standard Vanguard index fund expense ratio and one of the lower American Fund ones. Most of the funds I had were over 1.00

Also, the front end loads do drop, but they don't get to zero until you have a million in assets with American. That's a long time for most people. Especially when you start off by giving 5% of each investment away.

I'm sure you'll do fine and I'm sure I'll do fine. I'm just cheap and skeptical enough to doubt that anyone can do better than the market year after year for my prolonged investing horizon, and I'm sure as heck not going to pay a premium to allow some fund managers to keep guessing on my behalf.

For the cheap and lazy, I recommend vanguard's index funds every time.

 

[CarlHungus]

Do any of you guys have advice on where to start investing? Or how to get into it or suggestions for beginners? Sorry for the ignorant questions

http://www.clarkhoward.com/beginning-investors

 

[cyatheart]

Eri....11.00
awi...45.73
swft..13.82
chdn...141.49

if you want to short something

sgms...8.97
mlm...136.98

 

[AuH2O]

Oil and Oil-related stuff has played havoc with my non-retirement acct the last year+. So yeah ... now might be the time, esp with a longer time horizon (+ 1 year) you mention.

Goldwater fan?

Have you also noticed the oil companies pushing for carbon tax? They want to kill coal now and have mass changes to nat gas for power. Plus all the renewables legislation remains on shaky ground, but even if it remains its fuel focused, so the high margin polymers and other products are not incentivized for displacement. Personally I like ExxonMobil because they are so well diversified.

Yes, I like Goldwaters philosophies for the most part. Ironically enough I do veer from the libertarian view in the areas of displacing fossil fuels, but that's probably for a later cave discussion. Bonus points if you know the historical leader depicted in my avatar.

 

[Rabbuk]

Have you also noticed the oil companies pushing for carbon tax? They want to kill coal now and have mass changes to nat gas for power. Plus all the renewables legislation remains on shaky ground, but even if it remains its fuel focused, so the high margin polymers and other products are not incentivized for displacement. Personally I like ExxonMobil because they are so well diversified.

Yes, I like Goldwaters philosophies for the most part. Ironically enough I do veer from the libertarian view in the areas of displacing fossil fuels, but that's probably for a later cave discussion. Bonus points if you know the historical leader depicted in my avatar.

I know who it is!

 

[BCClone]

Vanguard total stock market is 0.17. American Fund's growth of America fund is 0.68. Do the math on that and get back to me. That's a pretty standard Vanguard index fund expense ratio and one of the lower American Fund ones. Most of the funds I had were over 1.00

Also, the front end loads do drop, but they don't get to zero until you have a million in assets with American. That's a long time for most people. Especially when you start off by giving 5% of each investment away.

I'm sure you'll do fine and I'm sure I'll do fine. I'm just cheap and skeptical enough to doubt that anyone can do better than the market year after year for my prolonged investing horizon, and I'm sure as heck not going to pay a premium to allow some fund managers to keep guessing on my behalf.

For the cheap and lazy, I recommend vanguard's index funds every time.

I don't like paying anymore fees.than I have to. I took the funds from American I'm.in and compared them to vanguard. Thats what I could figure out were simalar.

With the fees side though. Using both companies data, after AF funds using the max load (5.75) they still return over a percent more in the comparable funds over the 10 years. My question is, you aren't willing to spend .2 per year to make an additional 1% each year over 10 years, even factoring in the max load.

This is the people who talk to me about no loads or only focusing on the fee side. I focus on my net, isn't 10%-1% more than 8.5-0.1%?

 

[Dopey]

I don't like paying anymore fees.than I have to. I took the funds from American I'm.in and compared them to vanguard. Thats what I could figure out were simalar.

With the fees side though. Using both companies data, after AF funds using the max load (5.75) they still return over a percent more in the comparable funds over the 10 years. My question is, you aren't willing to spend .2 per year to make an additional 1% each year over 10 years, even factoring in the max load.

This is the people who talk to me about no loads or only focusing on the fee side. I focus on my net, isn't 10%-1% more than 8.5-0.1%?

My only problem with that is what good does the last ten years do me for my planning? The last 25 years is probably even more irrelevant.

How confident are you that the American Funds can continue to beat the market over the next 30 years of unknowns? What if their entire fund management team turns over?

Like I said, not attacking you're philosophy that I'm sure will make your a rich guy assume day. Just stating my opinions for the OP that I believe are best for me for now.

Who knows, maybe I'll change my mind someday and go back to American. I should admit that i do use Wellington from Vanguard to hedge my bets against the index a bit, but that again is a fairly cheap managed fund (no load, 0.26 expense ratio).

 

[BCClone]

There are no guarantees. what I compare is final return. Picking mutual funds are like hiring employees. You can't guarantee which ones won't get a drug problem and start tanking work, but you can look to see if they have been fired 3 times this year for smack. You can see which have delivered more return and brought the sales.

If you're happy with what you have, great. That is one big part of it. I just am not going to look at two employees and and hir the one who routinely brings me in 50k less a year because I can hire him for 2k less.

 

[2forISU]

My pick/risky-KMI

 

[Bestaluckcy]

There are no guarantees. what I compare is final return. Picking mutual funds are like hiring employees. You can't guarantee which ones won't get a drug problem and start tanking work, but you can look to see if they have been fired 3 times this year for smack. You can see which have delivered more return and brought the sales.

If you're happy with what you have, great. That is one big part of it. I just am not going to look at two employees and and hir the one who routinely brings me in 50k less a year because I can hire him for 2k less.

Final return is weak unless you also compare risk. It can come back to bite you in the next bear market.