Investing megathread extravaganza

[DaFace]

A place to talk about investing stuff.

[scho63]

I'm going to take about 10-12K and start to nibble at small positions of good stocks that have been beaten down.

I need to run some screens...

[petegz28]

SPYs opened above the 20 day SMA. Could possibly be the first day where all the price action is above the average since early February.

That's the good news...


QQQs are up against the 20 day SMA and could turn back down.

That's the bad news.

A positive week of price action would go a long way to start taking the down trend out of this market.

[louie aguiar]

Interesting article- stock pickers consistently can’t beat the S&P.

Last year was a great one for the U.S. stock market. It was another disappointment for most stock-picking fund managers. https://t.co/gEgSHX7dvC

— The Wall Street Journal (@WSJ) March 16, 2022

[Rain Man]

Originally Posted by louie aguiar

Interesting article- stock pickers consistently can’t beat the S&P.

I've come to the conclusion that a big part of this is the massive tech stocks that are so heavily weighted. The only way to beat the S&P for the past several years is to overweight yourself in the FAANGs, which goes against the traditional strategy of diversification. You're either diversified and underperforming the index, or you're overweighted and hoping that none of those stocks melts down.

[petegz28]

1/4 point rate hike...Fed sees 6 more coming this year. Market had sold off but is trying to bounce back here.....

[DaFace]

Originally Posted by louie aguiar

Interesting article- stock pickers consistently can’t beat the S&P.

Last year was a great one for the U.S. stock market. It was another disappointment for most stock-picking fund managers. https://t.co/gEgSHX7dvC

— The Wall Street Journal (@WSJ) March 16, 2022

No surprise. Index funds FTW.

[eDave]

Originally Posted by petegz28

1/4 point rate hike...Fed sees 6 more coming this year. Market had sold off but is trying to bounce back here.....

My other investment vehicle reacted exactly like I predicted, though I took no action.

[petegz28]

Hell of a session today. Almost too good.

[KCUnited]

Puts on any techs+5% today if yous a real one

[petegz28]

Originally Posted by DaFace

No surprise. Index funds FTW.

Most people can't outperform the market most of the time.

I read a book that went back and quantified all the expert predictions, etc., and it was like an 80% fail rate.

I mean unless you do a shit ton of research and understand what you are actually reading, and then concentrate your holdings and then hold them for a long period of time, then I agree, index funds and ETFs.

[lewdog]

Originally Posted by petegz28

Most people can't outperform the market most of the time.

I read a book that went back and quantified all the expert predictions, etc., and it was like an 80% fail rate.

I mean unless you do a shit ton of research and understand what you are actually reading, and then concentrate your holdings and then hold them for a long period of time, then I agree, index funds and ETFs.

Most say 90%+ fail rate on individual investors beating the market.

[Hog's Gone Fishin]

If only the stock pickers were members of CP

[ChiliConCarnage]

Originally Posted by Rain Man

I've come to the conclusion that a big part of this is the massive tech stocks that are so heavily weighted. The only way to beat the S&P for the past several years is to overweight yourself in the FAANGs,

A lot of US large cap funds are closet index trackers. You make money as a percent of assets under mgmt. If some portfolio manager has his client in Rainman Large Cap US fund and it's down 14% heading into their 1Q financial review, he can just point to the S&P 500 down 13%. Tough year for markets, war, inflation, etc. To beat the market, you have to deviate from it which means sometimes multi-year periods where you underperform even though your strategy is good. People move their funds

Which leads to the second problem, if you're actually consistently good then money will pour in. To continue your strategy, you may need to limit incoming money by closing your fund to new investors or even money from existing investors. That kind of goes against making more money though which most people and businesses want. I think the first active mgmt. Vanguard Primecap fund doubled the S&P 500 by it's 30 year anniversary. Can't get into them as new investors though

[Halfcan]

Originally Posted by Halfcan

This looks like a great way to diversify your portfolio and hedge inflation. Just started my account and am impressed with their portfolio.

Save on fees with this link. http://fundrise.com/r/1lev88

Very impressed so far. Already have dividends and appreciation on my investment.

They seemed to be buying new cash-flowing properties every few weeks.

[chiefforlife]

Originally Posted by Halfcan

Very impressed so far. Already have dividends and appreciation on my investment.

They seemed to be buying new cash-flowing properties every few weeks.

Interesting. What kind of fees are we talking about?

Wont the housing/real estate market take a hit with rising interest rates?

Inflation would also effect buying power in a negative manner.

It sounds good at first glance but I definitely have some questions. 2021 was an exceptionally good year for this kind of thing but big changes are on the way. Does that concern you?