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+--- Thread: General Market Talk (/showthread.php?tid=5501)
- Dustie - 11-24-2008
Zephyrs Wrote:1000xZero Wrote:That is Bank Deposits, what about Brokerage, IRA, SEP, etc. accounts? All those are not FDIC insured.
no doubt.
Brokerage accounts are backed by the SIPC. If you're broker is a member, you are fairly safe. See here for info and limits:
http://www.sipc.org/
- Airyth - 11-24-2008
Thanks for the information. I'm a relatively small investor I only have ~$2500 in my etrade account $1,200 in cash and the other ~$1,300 in stock. I'd just never even thought about what would happen if etrade went under... I mean all things considered even if it wern't insured it wouldn't be the end of the world losing that little, but it sounds like it should be insured and at worst I just can't access it immediately which I can more than live with.
- Vanraw - 11-24-2008
Yea, its more the hassle of it all. If Etrade was to go under (which Im not saying it is), you shouldn't lose your money., First, the stock you own is yours. In fact if you wanted you could actually request the paper certificate. So if you own 1000 shares of GE, it doesn't matter what Etrade does, you still own 1000 shares.
The cash is a little different. While its insured, I'm thinking it would be a hassle to get through it all.
- Dustie - 11-24-2008
Yeah, the cash, depending on where it is, will be insured by the FDIC. For example my Complete Savings account with ETrade is FDIC insured whereas my brokerage account is SIPC backed. The SICP backing is not really insurance like FDIC. The SIPC is, as I understand it, a group of brokerages that collectively agree to certain rules that would get those 1000 shares of GE transfered to another brokerage should your brokerage fail. Obviously you would never want to use a broker that wasn't an SIPC member.
- Dustie - 11-24-2008
Wells Fargo up 19% in one day. I'd like to thank all the little people who made this day possible. I'm sure it will be down 20% tomorrow, but until then, I'm going to savor this moment.
- Dustie - 12-16-2008
CNBC panelists were calling a market bottom on Nov. 21st. While I think "calling" these things is probably a waste of time, I have been keeping track of it out of curiosity. At least as of today, their prediction does appear to be holding up. I guess we'll see if this trend continues.
- Singularity - 12-16-2008
Singularity Wrote:Zephyrs Wrote:Best buy credit rating dropped to BBB which has resulted in the stock price drop on Wed
http://www.reuters.com/article/hotStocksNews/idUSTRE4AI75S20081119
Quote:Last week, the No. 1 U.S. electronics chain slashed its profit forecast, citing "seismic changes" in consumer behavior amid a deepening economic crisis. The company said its sales at stores open at least 14 months fell about 7.6 percent in October after declining 1.3 percent in September.
Best Buy "will be more challenged than previously expected by the current weak economic environment in the U.S.," S&P Ratings Services said.
Yeah, I purchased 15 shares this past week at roughly $17/share. I think the price will continue to waffle until Feb/March, maybe even reaching a low sometime around then. If the stock goes to something ridiculous (like $10/share or less) due to low sales in the fourth quarter, i'm going to risk it and buy a bundle. Even if it doesn't fall that low, i'll probably keep buying as long as the price is below $30/share.
I really believe that two or three years from now, my portfolio will show this to have been a wise manuever. I don't really see Best Buy folding, and there is plenty of room for growth - even in the US. Add to the fact they are building in China and a few other emerging markets, I think it's worth the risk.
Two or three years from now if the the price is above $40/share, then my gamble will have paid off big time. If Best Buy stock tanks, then so what? I've lost a portion of my disposable income - nothing more.
So...let's go Best Buy! Make me happy! :wink:
EDIT:
Update:
A little over two weeks ago, I invested ~$260 (~$270 factoring in commish) in Best Buy stock. This was basically "play around" cash - nothing serious. Today, I sold that stock for ~$440 ($450/commish).
- Dustie - 12-16-2008
nice!
- Zephyrs - 12-17-2008
I was under the impression you were going to hold it for a while.
Good going CK!
- Singularity - 12-17-2008
Zephyrs Wrote:I was under the impression you were going to hold it for a while.
Good going CK!
I was going to, but decided what the hell.
- Dustie - 12-17-2008
Singularity Wrote:Zephyrs Wrote:I was under the impression you were going to hold it for a while.
Good going CK!
I was going to, but decided what the hell.
Taking profits trumps discipline most of the time.
- Zephyrs - 12-17-2008
Dustie Wrote:Singularity Wrote:Zephyrs Wrote:I was under the impression you were going to hold it for a while.
Good going CK!
I was going to, but decided what the hell.
Taking profits trumps discipline most of the time.
Oh I agree, I just still dont think the best buy is a good long term buy. I have been hearing about some amazing stocks available now that are paying good dividends and the earnings ration is sick. People buying the stock now will have the stock pay for itself in 3 years.
- Dustie - 12-17-2008
I'm not saying I agree with that either, I just know that happens a lot. I haven't sold a single one of my stocks in years. =)
- Breand - 12-18-2008
Yesterday marked the beginning of the end for the dollar.
- Dustie - 12-18-2008
Breand Wrote:Yesterday marked the beginning of the end for the dollar.
Not to be a smart ass, but it seems to have been sliding for over a week now. Did something even more horrible kick off yesterday?
- Breand - 12-18-2008
FED dropping lending rate to 0-.25%
- Snowreap - 12-18-2008
I don't see that as anything except an indication that the credit crisis continues. and a reminder that the credit crisis wasn't caused by a lack of available money, but by the unwillingness of lenders to write new loans.
-ken
- Vanraw - 12-18-2008
Snowreap Wrote:I don't see that as anything except an indication that the credit crisis continues. and a reminder that the credit crisis wasn't caused by a lack of available money, but by the unwillingness of lenders to write new loans.
-ken
Hmm, I think you need to go upstream a little. The unwillingness to lend money is a symptom not the cause. But clearly it is what will prolong the situation.
- Snowreap - 12-19-2008
I didn't think this thread was the place to go into the details of *why* a bank with lots of cash is unwilling to loan any of it out. for the purposes of this thread, saying that the credit crunch is caused by unwillingness rather than unavailability is enough. the *cause* of that unwillingness is already known to (or suspected by) those who care, and those who don't care aren't interesting in hearing about it.
-ken
- Jakensama - 12-19-2008
Snowreap Wrote:I don't see that as anything except an indication that the credit crisis continues. and a reminder that the credit crisis wasn't caused by a lack of available money, but by the unwillingness of lenders to write new loans.
-ken
You can still get loans with good credit, its just the days of lending to anyone and no downpayments are behind us, as well they should be (Until things get better and everyone forgets and history repeats).
- Vanraw - 12-20-2008
I do think the fed dropping the rate to .25 sure does leave little wiggle room for them. I mean the only next step is free money, whihc is fine, but then what? start paying banks to take money I guess....
- Waeloga - 12-21-2008
We already have some people buying T-Bills at 0% . That's just weird.
- Zephyrs - 12-22-2008
The reason this is bad for the dollar is that the interest rate is essentially zero. There is no where else to go, so how are they going to stimulate the economy now?
Bernake's plan is to essentially to buy all this bad debt, mortgages, etc. This amounts to creating money and diluting the money supply in order to kick start the American economy.
This results in inflation and left unchecked (like it has been the last few months) hyperinflation (see Zimbabwe as an example.)
You can't save the economy by printing up money and buying everything up.
Luckily if you have high inflation though it helps if you have a lot of debt. It could help all these people pay for their houses
- Moristans - 12-22-2008
Yeah, my nest egg is in a Money Market fund which was paying 5.75% at it's peak last year. It's down to 3%. :cry:
- Jakensama - 12-22-2008
Moristans Wrote:Yeah, my nest egg is in a Money Market fund which was paying 5.75% at it's peak last year. It's down to 3%. :cry:
You are still substantially better than those whose nest eggs were in mutual funds..