A Bear Market
Hopefully not! I made a move in the stock market yesterday. I got out of the railroad game and into semiconductors. A few years ago I bought some stock in CSX. I had owned Union Pacific and BNSF in the past and wanted to get back into the choo choo game. CSX seemed to be having problems, so there was room to get better. The stock floundered for awhile until they announced a new CEO in a rather hostile takeover. Wall Street liked the move and the stock doubled in price. Woohoo! I was a little leery, however, because part of his deal involved a huge paycheck. It just seemed odd that a 70+ year old CEO should be worth 10's of millions of dollars. Most people on the RR forums hated the guy. Very few people had nice things to say about him. I decided to take my chips off the table. I followed the old adage of "buy low and sell high." Perhaps he will turn the railroad into a well-oiled machine. Maybe he is more of a cult=of-personality and if he kicks off (he also has health issues) there will be chaos. *shrugs* I made money. I'm happy.
I have been wanting to get into the ground floor of "the next big thing." What would it be? I've put some bets on cloud computing since the trend is definitely in that direction. I had wanted to get exposure in 3D printing, so I bought a high-tech fund that includes some. Apple and Alphabet (Google) are promising, but I don't want to put my eggs in one basket. So I decided to jump into semiconductors. I had owned Intel in the past, but I didn't like investing in just one company. Now we have exchange traded funds (ETF's) that are a basket of different companies. So Intel might tank, but AMD might soar. It's a good way to hedge your exposure. I noticed that a particular fund that had been doing well was off almost 10% for the week. The whole NASDAQ market was off as of late. Once again...buy low and sell high. So I jumped in. In fact I may have set the bottom for the day. The fund had been hovering at about $30.30 for some time. I put in a bid at $30.01. The next thing I know I had shares in my account that were bought at $30.01. The market dipped to $30.01. An hour later it was up to $30.20. Did I do that? *lol* Today it's up a little more.
The reason you make money in the Market is in some ways it's a lot like Vegas. You're placing a bet that a company will do well. There is risk involved. That's why you can make more money as opposed to putting it into a nice safe bank account. You can also lose money. Sometimes there are factors you can't control like poor management. I'm taking a bath on GE right now because the company was being run like shit. The company on a whole looked good. It's making medical instruments used in all hospitals. It's building generators and turbines used in windmills and gas-fired power plants. That sounds great! But the CEO was also flying around the globe on private jets, sometimes taking an extra jet with him "just in case." Yeah. No. So now I'm just sitting tight to see if new management can turn things around.
And then there is Facebook. I have seen social media come and go. How many people use LJ any more? Does anyone remember MySpace? Why would FB be any different? It now has critical mass. It won. It is THE social media site. albear
laughed when they had their initial public offering (where there was a media frenzy) and the price went down. I was visiting him at The Domain when the shares fell into the $20s. He laughed. I did too. Oh to have bought 1000 shares at that time! This morning it's at $177. So what's next? Tesla? Space X? Uber? Amazon? Or will we go retro and back to brick-and-mortar?