U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Economics > Investing
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 10-09-2008, 08:18 PM
 
44 posts, read 235,256 times
Reputation: 32

Advertisements

I am 31 years old and hope to retire at 60. I started buying stock last week thinking the bottom was near. I bought mostly GM and F which have tanked as of late. I bought GM at $8.05 and F at $4.53. What kind of time frame do you think it will be before these 2 automakers stocks return to my purchase price? I am thinking about selling them tomorrow and taking the loss and investing in stocks that pay dividends. What do you guys think.
Reply With Quote Quick reply to this message

 
Old 10-10-2008, 06:42 AM
 
Location: Pennsylvania
5,303 posts, read 9,234,849 times
Reputation: 8170
Sorry to say, but the stock market may not be your thing. Impulse buying and selling is too risky.
Reply With Quote Quick reply to this message
 
Old 10-10-2008, 07:29 AM
 
Location: Where the sun likes to shine!!
19,925 posts, read 24,615,601 times
Reputation: 86340
Quote:
Originally Posted by Armyman2007 View Post
I am 31 years old and hope to retire at 60. I started buying stock last week thinking the bottom was near. I bought mostly GM and F which have tanked as of late. I bought GM at $8.05 and F at $4.53. What kind of time frame do you think it will be before these 2 automakers stocks return to my purchase price? I am thinking about selling them tomorrow and taking the loss and investing in stocks that pay dividends. What do you guys think.
Personally, I would dump the shares. I really think GM is going to go bankrupt or need a serious infusion. You didn't take too much of a beating on F so that one isn't bad. "Now" is not the time to be learning about the stock market. We are watching History. Wait until the dust settles and learn everything you can about the companies you want to buy. Things are going to be very bumpy for the next few months(at least).

Sit on the side lines for awhile. You may miss a few up days but if you are in it for the long term you don't want to start off with the down days.

Good luck to you. I would sell today but don't buy anything else today. We have a long weekend and anything can happen.

Lisa
Reply With Quote Quick reply to this message
 
Old 10-10-2008, 09:17 AM
 
Location: Broward County
2,518 posts, read 9,508,367 times
Reputation: 1324
are you nuts ? You bought them dirt cheap. Yes...GM is now down to 4-5 dollars, but they WILL come back up. Do not sell ! once you sell, you lose PERMANENTLY. Why would you want to do that ? Wait for the rebound. If you bought at 25.00, I would tell you differently, but at 8 bucks a share, you got a deal ! Patience young grasshopper...patience. Also worth looking into at .40 cents a share is SIRI (Siri-XM sattelite radio)
Reply With Quote Quick reply to this message
 
Old 10-10-2008, 11:29 AM
 
Location: Houston, TX
17,032 posts, read 25,346,760 times
Reputation: 16145
I have also purchased F under 5. My time frame is a couple years. I may pick up a little more now that its in the 2s. I should note these were purchased in my 'speculative' account. I'm also looking at commodities like FCX.
Reply With Quote Quick reply to this message
 
Old 10-12-2008, 02:10 PM
 
622 posts, read 2,809,565 times
Reputation: 298
You need to start investing in mutual funds or stocks which mimick the broader stock market. You also need to diversify your portfolio so not one stock's price would have such an adverse affect on your total investment portfolio. You can hold onto individual stocks with 5 or even 10% of your total portfolio, but even that is a bit high.

I would recommend something like Vanguard mutual fund company. They have many index funds with very little expense ratios. They also have good funds to choose from that don't mimick the markets and try to beat the market as a whole.

You also would benefit from a mix of domestic and international funds/stocks in your portfolio along with bonds and even precious metals. The right mix of these with dollar cost averaging 'right now' will reward you by the time you retire, IMO.

Yes, prices are low and they 'might' get lower. No one knows. But if you DCA your money every week/month, you will be buying more shares while they are lower and reap the rewards of those extra shares when they finally do turn around. good luck.
Reply With Quote Quick reply to this message
 
Old 10-12-2008, 08:27 PM
 
Location: Houston, TX (Oak Forest)
4,433 posts, read 11,015,180 times
Reputation: 3460
If you sell now your an idiot.
Reply With Quote Quick reply to this message
 
Old 10-12-2008, 10:00 PM
 
Location: near the Southern Tier
31 posts, read 61,773 times
Reputation: 29
Default I agree

Quote:
Originally Posted by heydade View Post
are you nuts ? You bought them dirt cheap. Yes...GM is now down to 4-5 dollars, but they WILL come back up. Do not sell ! once you sell, you lose PERMANENTLY. Why would you want to do that ? Wait for the rebound. If you bought at 25.00, I would tell you differently, but at 8 bucks a share, you got a deal ! Patience young grasshopper...patience. Also worth looking into at .40 cents a share is SIRI (Siri-XM sattelite radio)
I agree.

You got 'em now, hold 'em, the cash is gone...for now.

They will go up. Sell now and confirm your loss, etching it in stone, or wait and you may be very happy.

How much does a guy just starting out stand to lose, knowing so little about these stocks?

Don't feel too bad, son. I followed the rules, mostly, trying to put as much as I could afford into the 401k's. I have been in them for several years, spread them over many different funds, and contributed what I could each week. They were worth several tens of thousands. Not a fortune, but my pension add-on.

The 401k's have lost what, maybe a quarter or third of their value? They are worth less than the cash I have put in...all growth is gone and more, amounting to a few years withdrawls. All I can do is wait for growth now. Early retirement is out of the question. You have time on your side...use it wisely!
Reply With Quote Quick reply to this message
 
Old 10-13-2008, 10:14 AM
 
10,946 posts, read 16,715,050 times
Reputation: 15780
Quote:
Originally Posted by Armyman2007 View Post
I am 31 years old and hope to retire at 60. I started buying stock last week thinking the bottom was near. I bought mostly GM and F which have tanked as of late. I bought GM at $8.05 and F at $4.53. What kind of time frame do you think it will be before these 2 automakers stocks return to my purchase price? I am thinking about selling them tomorrow and taking the loss and investing in stocks that pay dividends. What do you guys think.
Automotive stocks? WTF? That would be like the last industry in the world I would invest in, regardless of the world economic situation. The question is not when will these automakers improve, but will they survive at all.

Invest in a diversifed fund or collection of funds. The key is DIVERSIFIED!!! You don't want all your eggs in one basket.
Reply With Quote Quick reply to this message
 
Old 10-13-2008, 10:22 AM
 
Location: Keller, TX
5,615 posts, read 4,646,035 times
Reputation: 3998
Ford is up 26% and GM is up 30% today.

I know that doesn't make you whole again, but it has to make you feel a little better...
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics > Investing
Follow City-Data.com founder on our Forum or
Similar Threads

All times are GMT -6.

2005-2017, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32 - Top