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Thread: How can anyone rationally put money in the stock market?

  1. #11
    Join Date
    Nov 2017
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    391

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    Quote Originally Posted by and4rik View Post
    Simple question. Any single investor and even large fund have no way to know where the market is going up or down. Just look at what happened to Bud Light practically overnight. I would place better odds on any Vegas casino game. For me the risk to zero is a non option and have parked my money in an interest bearing account at 4.5% free to come and go as I please.

    I read an article a week ago which analyzed the largest stocks in the S&P 500. The big stocks are way overvalued at a 53 P/E ratio and are very likely to crash..... eventually. Of course, who knows when. As the old saying goes, bull markets last much longer than anyone expects and the same goes with bear markets and market crashes as well. The P/E for the US stock market was way down at eight back in 1982 and, adjusted for inflation, US stocks declined 70% from 1966-1982. Got gold and silver?

  2. #12

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    I starting buying small blocks of PSQ today. Maybe add SQQQ, they have both turned up, it's possible the tech crash is in it's early days. I'll DCA an see how it goes. If the trade really starts going my way I'll use the margin.

  3. #13
    Join Date
    Jan 2017
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    4,089

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    Day Trading has a very low rate of success. More than 80 % of the day
    traders lose money.

    https://blog.gitnux.com/day-trading-...e%20of%2073%25.

    The Wall Street pro's quip about them: "their only role is to provide liquidity."

    In other words, the day traders are the cannon fodder of Wall Street.

    How can an individual day trader compte with the pros ? The pros have
    unbelievable software and hardware, employing scientists.

  4. #14

    Default Warren Buffett irrational?

    I guess Warren Buffett would be considered irrational (?).

    I've been in the market for 33 years, and have done very well picking my own stocks. Only twice have I owned a mutual fund.

    The stock market isn't for everyone. For those who have a long time horizon, have some tolerance for risk, have the time to analyze accounting documents, can diversify and are patient, can do well in the market.
    Last edited by BodieGhost; 09-10-2023 at 12:45 PM.

  5. #15
    Join Date
    Jun 2008
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    3,118

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    Quote Originally Posted by BodieGhost View Post
    I guess Warren Buffett would be considered irrational (?).

    I've been in the market for 33 years, and have done very well picking my own stocks. Only twice have I owned a mutual fund.

    The stock market isn't for everyone. For those who have a long time horizon, have some tolerance for risk, have the time to analyze accounting documents, can diversify and are patient, you can do well in the market.
    Agree. Ditto for all asset classes. That is why they all exist and are all used by the well heeled.

  6. #16

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    Well, I'm thinking I better start selling stock soon. Looking at the inverted yield curve, with short term bonds getting more than long term. Recession appears very likely, almost always happens after such inverted yields. I want more "dry powder" to fire at reduced prices when the time comes. Not selling any gold or other PMs though.
    Of all the contrivances for cheating the laboring class of mankind, none has been more effective than that which deludes them with paper money.Daniel Webster (1782-1852)

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