That depends. If one is a long-term holder in a high number of equities (at least 10-20) and does not mind experiencing a 10% or more drawdown from time to time, then YES. Over the LONG HAUL stocks (not individually, but collectively) have outperformed everything. But INDIVIDUAL stocks can reach zero. Yes, zero. Many companies that were once leaders are gone. Dead. Investors who "held" on now have worthless stock certificiates because they were too pigheaded to sell, even though the market gave them plenty of chances. Many growth companies never pan out, and they too trade in the pink sheets. Maybe TIE and HANS will be good long-term investments at this point. But the odds are against it. If you do not respect risk, you are going to get hurt. Maybe not now, but someday you are going to ride some stock down because you feel the "market is wrong" and "you are RIGHT."
Just one other thing I would like to mention to you stocktrader. Forget about the QQQQ, s&p and the dow. Look at the Russell 3000 which includes all of them. When the market goes below its 150 moving average its time to be very cautious. When the market goes below its 200 day average you might want to consider not being long in any stocks with the exception of long time holdings with the house's money. Of course this is for swing traders only. You then do not re-enter the market long until the market is above it's 50 day moving average AND the 150ma is flat or rising again. If you use this philosophy you won't catch all of the wave up, but you will not be in any bull traps either.
If you want to be an investor.....The play has been Utilities, REITS, Super Markets, Drug Stores, Oil Trust/Royalty, Healthcare (HMO--Nursing Home--Large Cap Drug Makers), Food, Beer, Defense, Exchanges and Tankers............ Most of which have YIELDS over 3%...........REITS, TRUST and TANKERS +8% yields........... Bottom line there has been massive equity rotations going on and it started around May 9th when Japan announced that they had been mopping up all the loose change they had given away over the past few years.....Hence the end of the carry trade and the end of cyclical investing.......Defense and Yield is where the Bull Market is...... My many long term plays are mostly all in the green and they are slow and steady, but at least the charts are pointing in a North Easterly direction.... Play all the old favorites as trading vechicles and sit on the Sectors that are in cruise control.......And short the NASDAQ with with DXQSX mutual fund...... I look foward to reading your reply.....and if you need help with some names I can post many.... $COSTAverageMAN BTW----Good Luck with the GOOG trade.....I hope it goes well for you and remember the after hours are nasty for this stock so becareful if you are dumping it.... So far I have saved 35 points on this stock.....I doubt it goes back to 425 on the numbers....
You're right on the money. Since May 9th Healthcare plans up 12.27 percent Office Reits up 6.35 percent utilities up 5.54 percent Medical labs up 5.18 drug stores 5.15 tobacco 4.48 heading the bottom of the list building materials -30.86 semi-conductors -29.37 printed circuits -28.12 metal fabrication -26.97 computers -26.37 There are currently 127 out of 235 sectors that are down more than 10% since May 9th. There are only 28 sectors that are break-even or slightly positive out of 235 sectors. It doesn't sound too encouraging to me.
Yes, this thread is great and you can learn from it....just look at the way you "trade" and then realize that it's a complete disaster. This thread should be required reading material for any newbie on ET.
Ok weekend over time 4 an update Market up MASSIVE today ..up almost 1.4% for nasdaq Another reason why you shoun't be short But I have been wrong b4 on my predictions on the nasdaq last time it had a big rally and during the earth shattering 5% nasdaq fed rally a month back. Here are the latest percentages: Apple bought at 58 Now: 61 Gain: 5% Tie bought at 35 Now: 26.5 -24% Hans bought at 177 Now: 178 +1% Goog bought at 413 now: 392 -5% Chap bought at 70 Now: 66 -6% The average is therefore: -6% for all the stocks, whihc isn't that good. But it could be worse though. yea TIE is sucking but it wil lrebound if given enough time. Also the nasdaq is due on of these days for a big rebound back to 2300 levels. I dont see any compelling reason for the sell off which was discussed earlier on this thread. A lot of people are shorting the markets today, but be warned that one day the markets WONT correct and will keep going higher. The nasdaq could just go up another 1% later this week and another 1.5% the week after for example. if you are short then the losses will be big. Don't get too comfortable cause the markets have a habit of switching directions suddenly.
Hahaha, thanks for the laugh ... where was your stop in TIE? -50%? You're 100% sure it'll go back up? Nasdaq to 2300? Wow man can I borrow your crystal ball?
I keep reminding myself of this chart for TIE: http://finance.yahoo.com/q/bc?s=TIE&t=1y&l=off&z=m&q=l&c= Looks like a long cup and handle in the making. Could take a year to come back but it will eventually.