Dow futures drop nearly 700 points as coronavirus spread stirs fears of global economic impact

There is a negative return whenever the bond yield is less than inflation.
Beyond that risk, throughout the history of finance bondholders have often been left to use their bonds as wallpaper.

 

Time to buy some more.

 

In fact, anyone who sells a stock for less than they paid for it has taken a loss. Surely you know that.
In fact, wherever there is a market there will be bargains.
In fact, there is no such thing as free money. So, you are one for three. Not bad!

 

Wrong. People selling are trying to get the best price they can - it's not at a bargain price. It is irrelevant what they paid for it. The only people guaranteed to make money are dealers. Their customers pay around 1% dealing costs every time they trade. Dealers love panic sellers and jumping-on-the-band-wagon buyers hoping to get a "bargain"

 

Anyone who has ever bought a stock and achieved a capital gain over the rate of inflation has purchased a bargain.
Investors frequently achieve very high returns on their stock buys - especially right after a crash.

Buffet bought DAL at a bargain price even though he has a $3B paper capital loss. DAL is a better bargain now.
Schwab eliminated its charges for trades, and most of the other online firms have done the same.

"Buy low, sell high".

 

The average DOW investor who bought 29 months ago and held has seen a loss - no doubt they thought that they purchased a bargain and doubly so to see it increase by 25% a month ago and even more so when seeing an increase of 13% in the first 3 months

"Buy low, sell high". Arh, so that's the secret

 

Today has been brutal with bad news. Latest coronavirus hits 1109 people.That's about 1 in 30,000 in the USA has it and 31 died (That would be about 1 in 1.06 million). Stocks have been decimated to the point that values are so low their being priced at discounts up to 50% of what they were. Couple weeks ago I could buy Apple for $327 a share. Today they want me to buy it for $274. Tesla $964 then $605 today. Biden says he's 'alive' after win in Michigan, Missouri and Mississippi. Really? Good for you Joe. Rest of us thought you were dead.

 

Yes, "Buy Low - Sell High" is the secret.

I have been buying low and selling high all through the bear market. Almost all of those buys were bargains. Most experienced investors sell most of their losers in December, and most experienced investors have been selling their winners for over a year to prepare for what is now a real and very overdue correction.

We are now in the bargain basement for stock buyers.

 

It's not so much timing the market. I started the year with 16 shares of Apple at a cost basis of $1600.00. I sold 5 of them at $325.00. The market was going down and I sold another 5 at $310.00 then it started to go down again and I sold 6 at $295.00. Gain from the sale of the original 16 shares $3275. ($4975.00 - $1600.00) I bought 6 shares yesterday at $ 280. Total $1680. I bought 10 today $275.00 at a cost of $2750. All said I now have my 16 shares at a cost of $4430.00 plus $545. 00 cash.