Stock Market-When will it peak?
#6729998
01/15/20 03:46 PM
01/15/20 03:46 PM
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Joined: Jan 2007
Posts: 17,892 MN
160user
OP
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OP
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Joined: Jan 2007
Posts: 17,892
MN
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I am enjoying the rise but how much higher can it go? Sooner or later I would think the market would correct itself. I'm thinking it's time to quit while I am ahead.
I have nothing clever to put here.
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Re: Stock Market-When will it peak?
[Re: Tim64]
#6730062
01/15/20 04:30 PM
01/15/20 04:30 PM
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Joined: Jan 2009
Posts: 6,683 PA
gryhkl
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Instead of selling, why not consider placing conditional or bracket orders that will sell automatically at a predetermined price or percentage stop loss orders that allows your investments to grow but protects you on the down side. I have been putting trailing stops on some of my positions. I look at it as a way to protect most of my earnings, but I really don't know what the drawbacks to doing so are. As was said in a post above, I'm getting a little nervous. I started with a fairly small amount in Scottrade and the amount in our accounts has grown gigantically(at least to me). I got in back in Feb of 2009 when everything was near the bottom so it was, in a large part, lucky timing. The money I have somebody else managing has done much less than half as well. If we decide to cut way back, where is there to put the money? Our best cds are paying 3 and 3.5% and we can't find anything like that now. What to do?
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Re: Stock Market-When will it peak?
[Re: 160user]
#6730065
01/15/20 04:33 PM
01/15/20 04:33 PM
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Joined: Nov 2007
Posts: 381 Carlisle, PA
trap-alaska
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Joined: Nov 2007
Posts: 381
Carlisle, PA
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I have been thinking about the same issue - how do I get more defensive in preparation for the inevitable downturn (my crystal ball's broken so I don't know when it will happen). Since my biggest account is taxable, and is full of capital gains (thanks President Trump), I would lose 15% off the top to taxes if I sold to reallocate. I don't think the correction will be 10%, and certainly not 15-20% so I am content to ride out the gains and accept the correction.
I am getting more defensive in our IRAs since I can exchange in them without taxes.
Last edited by trap-alaska; 01/15/20 04:37 PM.
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Re: Stock Market-When will it peak?
[Re: 160user]
#6730083
01/15/20 04:43 PM
01/15/20 04:43 PM
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Joined: Dec 2010
Posts: 11,207 Armpit, ak
Dirt
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Armpit, ak
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When the fed tries to normalize interest rates and tries to sell off their bonds again.
Who is John Galt?
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Re: Stock Market-When will it peak?
[Re: white17]
#6730094
01/15/20 04:50 PM
01/15/20 04:50 PM
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Joined: Nov 2007
Posts: 381 Carlisle, PA
trap-alaska
trapper
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trapper
Joined: Nov 2007
Posts: 381
Carlisle, PA
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I have been thinking about the same issue - how do I get more defensive in preparation for the inevitable downturn (my crystal ball's broken so I don't know when it will happen). Since my biggest account is taxable, and is full of capital gains (thanks President Trump), I would lose 15% off the top to taxes if I sold to reallocate. I don't think the correction will be 10%, and certainly not 15-20% so I am content to ride out the gains and accept the correction.
I am getting more defensive in our IRAs since I can exchange in them without taxes. Are you in mutuals or individual stocks ? Almost exclusively mutual funds. I occasionally invest in individual stocks after significant research but after comparing my winners and losers over about 10 years of investing, I was significantly lagging S&P returns. I decided to let the experts pick my stocks and spread the risk. Plus I travel a lot with the military and don't always have access to the internet, I've seen guys lose a lot of money when the market went crazy and they couldn't respond. I would still have the capital gains issues if I redeemed growth stocks for something more defensive like consumer staples.
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Re: Stock Market-When will it peak?
[Re: white17]
#6730161
01/15/20 05:47 PM
01/15/20 05:47 PM
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Joined: May 2010
Posts: 10,491 MN
Steven 49er
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When the fed tries to normalize interest rates and tries to sell off their bonds again. I think the Fed is going to have a very very difficult time doing that....ever again. They are running out of options Are you saying we are not in a free market environment? The stock market will never "peak", it may correct but once it starts to go back up it will go through that peak. That is until the Fed. runs out of options lol.
"Inflation is always and everywhere a monetary phenomenon". Milton Friedman.
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