[BostonBMW]

(01-08-2017 01:46 AM)Razor Beast Wrote:  

(01-07-2017 06:33 PM)Skank_Hunt Wrote:  

The major indices seem overvalued, propped up by heavy stimulus to prevent a meltdown, but the question for 2017 is will this continue or will there be the overdue correction. P/E ratios are very unattractive to me and there doesn't seem to be the real growth in support of these higher index values. I couldn't justify putting cash in there because I very rarely deviate from buy low sell high, and there should be a correction if these were normal market conditions... At the same time it's possible the indices just keep going up quietly albeit for no good reason.

So going from whole indices I will be looking at undervalued sectors within them and investing in ETFs associated with them or a handful of stocks.

They keep going up because there are few places outside the stock market you can put money where any reasonable return can be expected. Stock market is richly valued now but given lack of other attractive investment options you really don't have a choice.

I agree with you both. I'm still putting in $$s through the 401K (SP 500 Index Fund) however I have not had the chance to put money in my personal portfolio. Just sitting on cash.

I am definitely bearish right now. I think we'll be seeing a recession in 2017/18. President Trump and his policies may be able to mitigate the adverse effects of the recession, however I don't think its avoidable altogether.

[dongiovanni]

I'm making a strong recommendation for Ladbrokes Coral PLC 116 or so which I bought last week and may touch again soon. The company has dropped 30%+ lately because of a rumoured clamp down on FOBTs and advertising. I am very well connected to the sector and believe the clamp down will have little effect on income. GL if you play.

[lavidaloca]

The biggest thing for me is never selling anything. I've been tempted to pull the trigger a number of times but just buying and holding forever has worked well for me. Buying speculative equities and short term trading honestly sounds like an absolute waste of time unless you have a very large portfolio or you are exceptionally good at it.

Guy 1: Invests 100k in an index fund and gets 9% a year. His portfolio increased to 109k.

Guy 2: A trader who spends 10 hours a week reviewing his picks and the market makes 15% (very high long term)... His portfolio hits 115k after year 1.

He also spent 520 hours to make $6,000. That is like $11 / hour. He could probably make more working a second job or working in his career of choice. If the numbers were bigger though and he had a $1 million portfolio then he'd have made $60,000 in 520 hours a little over $100 an hour which is quite a bit more than most people will be able to make at their day job.

In short: Buy safe stuff that you think will be around when your grand kids are alive.

[PUA_Rachacha]

2017 should likely be a good year, but I think that most of the gains happened a few weeks after the election. Nonetheless, I don't see a major drop yet. I am really concerned about the overall debt level, especially in a rising-rate environment.

Trump will do three major things this year:

1) Pass tax reform. This will be his biggest achievement for the first year, and the best change in the tax code since Reagan. He will simplify the tax code and drop the corporate tax rate in line with all developed countries' rates. This will cause most of the U.S. corporate money overseas to start flooding back. He will do away with the AMT. But he will close a lot of loopholes and do away with allowing deductions of state taxes against federal tax. He has already taken down his crazy tax bill on his website and is aligning his views with the ironed-out tax reform that is making its way through the House. The head of tax at the bank I work at has been sitting in on a lot of conventions about what's going to happen, and she said that tax reform will happen, no question.

2) Build the Wall/Renegotiate trade treaties. He's building the wall, no question. That's a promise he made that he will keep. He'll also probably start hammering Mexico/Canada about NAFTA and scrutinize other trade agreements. Expect him to start throwing barbs at Germany, especially since Merkel is vehemently anti-Russian. Renegotiating trade deals are great for the American worker, but not great for the stock market in my opinion. Companies will ultimately have to onshore more manufacturing, which will drive up their development costs and overhead. It's a long time coming, nonetheless it may impact the stock market short term.

3) Reduce financial regulation. This is a personal bonus for me since I work at a bank, but Trump will definitely start clawing back a lot of the financial regulation, even though he personally doesn't like bankers. I believe most bank hiring in the last five years has been in tax/compliance/audit in order to deal with the ridiculous regulations. It's gone overboard, so expect Dodd Frank to be partially gutted.

tl;dr: Reducing corporate taxes while simplifying financial regulation will offset the increase in overhead with getting rid of trade deals. Thus, the stock market should grow since the economy will really start taking off.

P.S. Obamacare will be gutted too, but I don't think Trump has a great plan yet on how to make it better, so major reform will probably be held off on until 2018.

[Deepdiver]

My plan is to surf two macro megatrends...

First 73 Million Baby boomers retiring looking for income replacement, leisure activities and healthcare tourism.

Second 93 Million millenials pent up demand to move out of their baby boomer parents basements and actually buy homes as hordes of blue pill providers desperate to get laid on the regular.

[jj90]

(01-10-2017 02:52 PM)lavidaloca Wrote:  

Guy 1: Invests 100k in an index fund and gets 9% a year. His portfolio increased to 109k.

I agree with the premise of your post, but mind you 9% is historically high as well. It's more like 7% if that high, and that's in nominal terms not real.

[Jack Of All Trades]

Anyone been looking at stock in the military industrial complex? Trump wants to increase spending and build up the armed forces and infrastrucure, I can see LMT, NOC and shipyards edging up for trump's term.

NOC shot upafter trump's victory on nov.9

[PharaohRa]

January is looking to be an interesting month. I thought that the market would start to tank today but with the Senate passing a bill that would begin the destruction of Obamacare, the market recovered some of its losses. Biotechnology and health care might start to recover (but it is more wait and see)

[Kissinger2014]

I'm building up a position in IBB - the biotech index ETF. It got hammered last week on Trump's comments on high drug prices. Many of the largest components in the ETF are really cheap in P/E basis and earn tons of cash. I like this ETF because I think the downside is limited - maybe to $250.

[djk100]

(01-15-2017 02:23 AM)Kissinger2014 Wrote:  

I'm building up a position in IBB - the biotech index ETF. It got hammered last week on Trump's comments on high drug prices. Many of the largest components in the ETF are really cheap in P/E basis and earn tons of cash. I like this ETF because I think the downside is limited - maybe to $250.

Even if the PE is cheap, don't you think they are cheap for a reason? Such as the market priced in the fact the valuation got way ahead of themselves

[magma_lifting]

The market is certainly overbought (PE wise) but I think there is still at least one leg up (or rally) before going into correction.

[Kissinger2014]

(01-15-2017 02:49 AM)djk100 Wrote:  

(01-15-2017 02:23 AM)Kissinger2014 Wrote:  

I'm building up a position in IBB - the biotech index ETF. It got hammered last week on Trump's comments on high drug prices. Many of the largest components in the ETF are really cheap in P/E basis and earn tons of cash. I like this ETF because I think the downside is limited - maybe to $250.

Even if the PE is cheap, don't you think they are cheap for a reason? Such as the market priced in the fact the valuation got way ahead of themselves

Definitely. For some giant biotech firms, like Gilead, there are legitimate concerns about future growth. But given how much cash they generate, PEG ratios, and their rates of invested capital, I think there is limited downside. That is, the risk/reward ratio make it an attractive play.

[Troller]

If russias sanctions are lifted. The ruble and russia market should go up.

[Skank_Hunt]

(01-02-2017 02:36 PM)Que enspastic Wrote:  

Uranium I can see a rebound from what looks to be a bottom in prices per lb - look at forecast for Chinese nuclear power plant construction over next few years, Trump also appears favourably disposed.

I agree on this. Uranium spot has taken a huge, constant beating over past 5 or 6 years, as have the main uranium stocks, which are leveraged plays on the spot price. Since November it seems to have finally reached a bottom and started to turn around.

As for the 3x long or 3x short ETFs, caveat emptor! They tend to perform terribly because of the way they are calculated on a daily basis. There are 3x ETFs that go from ~$1000 to $2 or something stupid like that, complete wipeout. Watch out guys! These are best used by experienced investors to take advantage of short-term trends.

[Razor Beast]

Looking more and more like there's going to be some serious geopolitical posturing going on in the next few months. Will depend on what happens after the inauguration especially with China. Could see tensions with Germany as well. Major downside potential in equities if China has the balls to put retaliatory sanctions or tariffs on the U.S. in response to any action by the new administration.

[Kissinger2014]

(01-15-2017 10:25 PM)Skank_Hunt Wrote:  

(01-02-2017 02:36 PM)Que enspastic Wrote:  

Uranium I can see a rebound from what looks to be a bottom in prices per lb - look at forecast for Chinese nuclear power plant construction over next few years, Trump also appears favourably disposed.

I agree on this. Uranium spot has taken a huge, constant beating over past 5 or 6 years, as have the main uranium stocks, which are leveraged plays on the spot price. Since November it seems to have finally reached a bottom and started to turn around.

As for the 3x long or 3x short ETFs, caveat emptor! They tend to perform terribly because of the way they are calculated on a daily basis. There are 3x ETFs that go from ~$1000 to $2 or something stupid like that, complete wipeout. Watch out guys! These are best used by experienced investors to take advantage of short-term trends.

I lost quite a bit of money on Cameco years ago. It was after Fukushima and I thought the market overreacted in its anti-nuclear sentiment. And I was wrong. It wasn't just the accident that clouded nuclear's future, it was fracking and unconventional gas. Nuclear can't compete, esp if there is no carbon tax. Trump can be all pro-nuclear, but there really isn't demand from the states or power companies. Europe is also phasing out nuclear (or at least not building new plans). Asia is the only market where you could see more plants, but it would be very few new more NPPs.

While all commodities have seen somewhat of a rebound, I would not be long-term bullish on uranium.

[colblionel]

What are you guys thoughts on dollar cost averaging the S&P 500 over the course of 15-20 years till you become a millionaire. Assuming you reinvest the dividens back into the stock

[Brodiaga]

(01-16-2017 08:09 AM)colblionel Wrote:  

What are you guys thoughts on dollar cost averaging the S&P 500 over the course of 15-20 years till you become a millionaire. Assuming you reinvest the dividens back into the stock

For most people, this is the best strategy. It doesn't have to be the S&P500. It depends on one's risk tolerance and personal preferences. For example, it can be 80% the Total Stock Market Index Fund (VTSAX) and 20% bonds or a combination of US and International or 100% stocks plus a reasonable emergency fund in cash/cash equivalents.

What i like about this strategy is that you can set it and forget it and just go about your life without worrying about timing the market and picking the right investments.

Also, you don't have to become a millionaire either. The 4% rule states that you have enough money to retire if you can live on withdrawing 4% of your portfolio per year, adjusted for inflation going forward. So, if you only need $2K per month, your portfolio has to be $600K. Some people argue that 4% is too optimistic and you need to use 3.5% for example, so this also depends on one's risk tolerance.

Edit: two additional points.

1. Asset allocation: this strategy may require periodic rebalancing, e.g. if you decide that you want to keep 80% stocks and 20% bonds and your stocks grow at a higher rate than bonds, then you need to buy more bonds and/or sell some stocks e.g. at the end of each year to keep the desired allocation.

2. Taxes (this is US-specific). US tax system in very generous and has many so called loopholes. Basically, it means that you can pretty much ignore taxes when you apply the 4% rule if your portfolio value and withdrawals are low enough. This is a very complicated topic. Obviously, the tax rules can change in the future. You need to use tax advantaged accounts as much as possible and understand how to withdraw money tax free from these accounts once you retire. An overview here: http://www.gocurrycracker.com/never-pay-taxes-again/

This is not investment or tax advice. Use at your own risk.

[colblionel]

(01-16-2017 09:21 AM)Brodiaga Wrote:  

(01-16-2017 08:09 AM)colblionel Wrote:  

What are you guys thoughts on dollar cost averaging the S&P 500 over the course of 15-20 years till you become a millionaire. Assuming you reinvest the dividens back into the stock

For most people, this is the best strategy. It doesn't have to be the S&P500. It depends on one's risk tolerance and personal preferences. For example, it can be 80% the Total Stock Market Index Fund (VTSAX) and 20% bonds or a combination of US and International or 100% stocks plus a reasonable emergency fund in cash/cash equivalents.

What i like about this strategy is that you can set it and forget it and just go about your life without worrying about timing the market and picking the right investments.

Also, you don't have to become a millionaire either. The 4% rule states that you have enough money to retire if you can live on withdrawing 4% of your portfolio per year, adjusted for inflation going forward. So, if you only need $2K per month, your portfolio has to be $600K. Some people argue that 4% is too optimistic and you need to use 3.5% for example, so this also depends on one's risk tolerance.

Edit: two additional points.

1. Asset allocation: this strategy may require periodic rebalancing, e.g. if you decide that you want to keep 80% stocks and 20% bonds and your stocks grow at a higher rate than bonds, then you need to buy more bonds and/or sell some stocks e.g. at the end of each year to keep the desired allocation.

2. Taxes (this is US-specific). US tax system in very generous and has many so called loopholes. Basically, it means that you can pretty much ignore taxes when you apply the 4% rule if your portfolio value and withdrawals are low enough. This is a very complicated topic. Obviously, the tax rules can change in the future. You need to use tax advantaged accounts as much as possible and understand how to withdraw money tax free from these accounts once you retire. An overview here: http://www.gocurrycracker.com/never-pay-taxes-again/

This is not investment or tax advice. Use at your own risk.

This is what I plan to do. Life is tough and there's no guarantee I'll be able to get a business off the ground that makes me millions of dollars.

[Brodiaga]

(01-16-2017 10:33 AM)colblionel Wrote:  

This is what I plan to do. Life is tough and there's no guarantee I'll be able to get a business off the ground that makes me millions of dollars.

If you are just starting out, the most important thing is that you have a source of income (a job or your own business or both), live below your means and invest consistently as much as you can. This is more important than picking VTSAX, VFIAX or other index funds.

Also, make sure the management fees you pay are as low as possible. 0.05% per year is reasonable. A little more for international funds or REITs. Vanguard funds are best.

Wall Street wants you to trade more and not pay attention to the cost. This is how they make money. Don't fall for this BS. They laughed at Jack Bogle when he started Vanguard to make low cost index funds available to everybody. Now Vanguard is the biggest company in the industry.

If the market drops, don't panic and keep dollar cost averaging. The only way you lose money following this strategy is if you sell low. This is why you need an emergency fund and diversification even though your total return is likely to be less as a result. How much money in emergency fund depends on your risk tolerance and specific circumstances. Less if you have a stable job. More if your source of income is more volatile (e.g. your own business or investment returns).

[Troller]

Useful Resources:

Alerts, Notifications, and news:
http://www.otcmarkets.com/news/otc-news (PR's/filings/news)
http://equityfeed.com
http://www.prnewswire.com/news-releases/
http://www.icerocket.com/
http://www.marketwatch.com (news alerts)
http://www.marketwired.com (news alerts)
https://www.google.com (Google+ Notifications)
http://www.advfn.com
http://www.bloomberg.com
http://www.businessweek.com/
http://www.businesswire.com/portal/site/home/
http://www.cnbc.com
http://www.forbes.com/home_usa
http://www.money.cnn.com/
http://www.moneycentral.msn.com/investor/home.asp
http://www.nasdaq.com/
http://www.nyse.com/attachment/amex_landing.htm
http://www.reuters.com/finance/markets
http://www.wsj.com/public/page/news-stoc...overs.html
Biotech:
http://www.asco.org/meetings/calendar-events
http://www.biohealthinvestor.com/
http://biomedreports.com/
http://www.biospace.com/
http://www.biopharmcatalyst.com/fda-calendar/
http://www.clinicaltrials.gov/
http://www.fda.gov/Drugs/InformationOnDrugs/default.htm
http://www.fiercebiotech.com/news
http://www.genengnews.com
http://www.seekingalpha.com/sector/biotech
Brokers/Platforms:
https://us.etrade.com/home
https://www.fidelity.com
https://www.interactivebrokers.com/ind/en/main.php
https://www.lightspeed.com/?hc_location=ufi
https://www.quantopian.com
http://www.quotetracker.com/
https://robinhood.com
https://www.scottrade.com/
http://speedtrader.com
https://www.tdameritrade.com/home.page
https://www.thinkorswim.com/t/innovation.html
https://www.tradeking.com
Charts:
http://www.barchart.com/
http://www.barcharts.com
http://bigcharts.marketwatch.com/avatar.asp
http://chartpatterns.com/
http://www.incrediblecharts.com/technica...sticks.htm
https://www.interactivebrokers.com/en/home.php
https://www.lightspeed.com
http://stockcharts.com/freecharts/
(ex. scan:
this months MFI(5) < 20]
and [this weeks MFI(3) < 20]
and [todays MFI(5) < 20]
and [Liquidity > 19,999]
and [Close < 4.9999])
([this months MFI(5) < 20]
and [this weeks MFI(3) < 20]
and [todays MFI(5) < 20]
and [yesterdays MFI(5) > 20]
and [Liquidity > 19,999]
and [Close < 4.9999])
https://www.thinkorswim.com/t/innovation.html
https://www.tradingview.com
http://www.trending123.com/patterns/index.html
Candlesticks:
http://www.candlesticker.com/Default.asp
Chart Analysis/Indicators:
http://thepatternsite.com/
http://stockta.com/
http://www.stockcharts.com/school/doku.php
Chart Video Lessons:
https://www.youtube.com/watch?v=zLcOoJiqz_0 (MACD Histogram)
https://www.youtube.com/watch?v=U3iUmK0ihOg (MACD Histogram)
http://stockcharts.com/…/doku.phpid=char...Atechnica… (MACD Histogram)
Company Information/Research:
http://www.authorized-shares.com/
http://www.coordinatedlegal.com/SecretaryOfState.html
http://investorshub.advfn.com
http://www.level2stockquotes.com
http://www.nasdaq.com
http://www.nasdaqtrader.com/Trader.aspx?id=TradeHalts
http://nvsos.gov/sosentitysearch/
http://www.otcmarkets.com/research/stock-screener
http://www.otcmarkets.com/market-activit...ed-symbols
DD:
http://ddamanda.com/Members/AmandaChartStart.php
http://www.ddmachine.com/
https://www.gurufocus.com/
http://www.uspto.gov/patent
Dividends:
http://www.dividenddetective.com/
Earnings:
http://www.bloomberg.com/apps/ecal?c=US
http://www.cnbc.com/earnings-calendar/
https://www.earningswhispers.com/calendar
http://www.morningstar.com/earnings/earn...endar.aspx
http://www.nasdaq.com/earnings/earnings-calendar.aspx
http://www.thestreet.com/event-calendar/
http://www.zacks.com/earnings/earnings-calendar
Education:
https://www.dough.com
http://www.investopedia.com
http://www.investopedia.com/…/play/how-i...y-stocks/…
http://www.investors.com
http://www.investorwords.com/
http://marijuanaindex.com
http://privatemarkets.thomsonreuters.com
https://www.thinkorswim.com/t/innovation.html
http://www.verbatimsolutions.com/freetranslation.php
Go to playlists for this group and choose the Day Trading series (13 videos)
http://youtu.be/jc5XFRkLdvc
Chart Game a nifty tool to practice charts- http://chartgame.com/
Stock Market in a Nutshell- http://www.investopedia.com/…/08…/how-st...-works.asp
FDA Calendar:
http://www.biopharmcatalyst.com/fda-calendar/
https://www.fdatracker.com/fda-calendar/
Forms & Filings:
http://www.10kwizard.com/main.php
http://1512g.com/
http://www.edgar-online.com/
http://www.investorshub.com/boards/board...rd_id=1605
http://www.investorshub.com/boards/board...rd_id=4318
http://www.sec.gov
http://www.sec.gov/edgar/searchedgar/companysearch.html
http://www.secfilings.com/
http://www.secform4.com/index.html
http://www.secinfo.com
http://learn.westlawbusiness.com/support/formtypes.html
Holiday Schedule for Stock Markets:
http://www.allstocks.com/html/stock_mark...idays.html
http://www.nasdaqtrader.com/trader.aspx?id=calendar
https://www.nyse.com/markets/hours-calendars
Insider Trading:
http://www.insidercow.com
http://www.insider-monitor.com/top10_ins..._week.html
http://www.insidertrading.org/insider-buying.php
IPO's:
http://www.iposcoop.com/index.html
http://www.renaissancecapital.com/rencap/default.aspx
L2 websites:
http://equityfeed.com
http://investorshub.advfn.com
http://stockhideout.com/images/flash/level.html
Low Float Stocks:
http://investorshub.advfn.com/boards/board.aspx…
http://www.lowfloat.com/
http://www.lowfloat.com/otcbb/5
http://www.microcapmarkets.com/data_main_nav.jsp…
Options:
https://www.dough.com
Pumps & Promotions:
https://www.hotstocked.com
http://stockpromoters.com
http://www.stockreads.com/
http://www.theotc.today
http://www.thepumptracker.com
Shorts Info:
http://www.businessjive.com/
http://www.highshortinterest.com/
http://www.nasdaqtrader.com/Trader.aspx?...OThreshold
http://www.otcmarkets.com/market-activity/reg-sho-otc
http://otcshortreport.com
http://www.regsho.finra.org/regsho-Index.html
http://shortsqueeze.com/
Stock Screening:
http://www.acmechart.com/
http://www.americanbulls.com/
http://www2.barchart.com/
http://bigcharts.marketwatch.com
http://clearstation.etrade.com/
http://clearstation.com
http://www.dojispace.com
http://finviz.com
http://www.prophet.net/scans/index.jsp
http://screen.yahoo.com/stocks.html
http://smallcapcenter.com
http://stockcharts.com/def/servlet/SC.scan
http://www.stockciphering.com/index.htm
http://www.stockfetcher.com/
http://www.stockscores.com/index.asp
http://www.stockworm.com/
Transfer Agents:
http://www.stocktransfer.com/index
Reverse Mergers/Splits:
http://www.investorshub.com/boards/board...rd_id=3017
http://www.gopublic.com/reversemerger.html
http://reversemerger.dealflowmedia.com
Other helpful links:
Barrons: http://online.barrons.com/public/main
BUYINS.NET: http://www.buyins.net/
China Business News: http://www.chinadaily.com.cn/bizchina/index.html
China Business News: http://www.xinhuanet.com/english2010/business/index.htm
China Technology News: http://www.chinatechnews.com/
Corporate Records Search: http://www.coordinatedlegal.com/SecretaryOfState.html
Corporate Records Search: http://www.searchsystems.net/list.php?nid=398
CUSIP number: http://activequote.fidelity.com/mmnet/SymLookup.phtml
Deregistering: http://www.aaii.com/com…/articles/200601...tegies.cfm
Email Address Verifier: http://verify-email.org/
EYE ON THE FDA: http://www.eyeonfda.com/
Knobias: http://www.knobias.com/individual/public/quote.htm
Message, Blog & Twitter Postings: http://www.thelion.com
Mining: http://www.miningmx.com/
Mutual Fund Facts About Individual Stocks: http://www.mffais.com/
Natural Resources News & Commentary:
http://www.resourceinvestor.com/Pages/default.aspx
OTCBB Daily List: http://www.otcbb.com/dailylist/
Precious Metals: http://www.kitco.com/
Regional Bank List: http://www.bullsector.com/regionalbanks.html
Reverse Phone & Address: http://www.whitepages.com/reverse-lookup
Shell Stocks: http://www.shellstockreview.com
Trading Stations: http://www.tradingcomputers.com/index.html

[IronShark]

Thanks to Troller for his useful list of resources. I'm an absolute beginner in Stock Market. Could you recommend any source I can read and understand the basics about Stock Market?

[Le Siamois]

(01-17-2017 06:48 AM)IronShark Wrote:  

Thanks to Troller for his useful list of resources. I'm an absolute beginner in Stock Market. Could you recommend any source I can read and understand the basics about Stock Market?

Would appreciate this too.

I don't know shit about the the stock market but I'm willing to give a shot at it.

[TheFinalEpic]

(01-16-2017 09:21 AM)Brodiaga Wrote:  

(01-16-2017 08:09 AM)colblionel Wrote:  

What are you guys thoughts on dollar cost averaging the S&P 500 over the course of 15-20 years till you become a millionaire. Assuming you reinvest the dividens back into the stock

For most people, this is the best strategy. It doesn't have to be the S&P500. It depends on one's risk tolerance and personal preferences. For example, it can be 80% the Total Stock Market Index Fund (VTSAX) and 20% bonds or a combination of US and International or 100% stocks plus a reasonable emergency fund in cash/cash equivalents.

What i like about this strategy is that you can set it and forget it and just go about your life without worrying about timing the market and picking the right investments.

Also, you don't have to become a millionaire either. The 4% rule states that you have enough money to retire if you can live on withdrawing 4% of your portfolio per year, adjusted for inflation going forward. So, if you only need $2K per month, your portfolio has to be $600K. Some people argue that 4% is too optimistic and you need to use 3.5% for example, so this also depends on one's risk tolerance.

Edit: two additional points.

1. Asset allocation: this strategy may require periodic rebalancing, e.g. if you decide that you want to keep 80% stocks and 20% bonds and your stocks grow at a higher rate than bonds, then you need to buy more bonds and/or sell some stocks e.g. at the end of each year to keep the desired allocation.

2. Taxes (this is US-specific). US tax system in very generous and has many so called loopholes. Basically, it means that you can pretty much ignore taxes when you apply the 4% rule if your portfolio value and withdrawals are low enough. This is a very complicated topic. Obviously, the tax rules can change in the future. You need to use tax advantaged accounts as much as possible and understand how to withdraw money tax free from these accounts once you retire. An overview here: http://www.gocurrycracker.com/never-pay-taxes-again/

This is not investment or tax advice. Use at your own risk.

Look into dollar cost averaging into blue chips that pay a quarterly dividend as well. The SPY pays out around 2%, while the Dogs of the DOW pay out 3-5%. I would look into covered call writing as well on those dividend yielders, as you don't really care about the stock price in the short term, you can buy low and high and average out. By writing covered calls, you also lock in profits above the market should it rally higher.

I'm of the thought that we will see a correction in the next year, everything feels overbought, everyone is in equities, and the short interest is the lowest it's been in years. Everyone is following the crowd, and the crowd always gets burnt. All options I have been trading have been of bearish
sentiment.

[TheFinalEpic]

(01-17-2017 10:56 AM)Le Siamois Wrote:  

(01-17-2017 06:48 AM)IronShark Wrote:  

Thanks to Troller for his useful list of resources. I'm an absolute beginner in Stock Market. Could you recommend any source I can read and understand the basics about Stock Market?

Would appreciate this too.

I don't know shit about the the stock market but I'm willing to give a shot at it.

Read the classics: Reminiscences of a Stock Operator, Common Stocks and Uncommon Profits, The Market Wizards Series, and The Intelligent Investor.

I'll be the first to admit I was in the same boat, no knowledge whatsoever about the markets. These are excellent books that any new trader or investor should read and understand.