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Need Advice from Financially Smart People...Why not buy the following?

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  1. mkm44 mkm44 is offline

    Montreal
    Canada

    Posts: 3,071
    Joined: Nov 08

    Mar 20th, 2009 (3/20/2009 1:09pm)

    Can someone please give me a logical reason why I, being a 22 year old student with no debt or student loans and the correct disposable income which wouldn't effect paying any bills, incurring any debt or putting me in financial hurt, should not buy AIG, Citi and Bank or America stock for a long term investment?

    I'm thinking of investing $2.5K into Citi, $2K into AIG and $1.5K into BAC can someone give me a reason why this wouldn't be profitable in the long term?
  2. LitezOut LitezOut is offline

    Wilmington, DE
    United States

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    Mar 20th, 2009 (3/20/2009 1:12pm) in reply to mkm44

    bankruptcy... but with the current political climate, that doesn't seem possible
  3. mkm44 mkm44 is offline

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    Mar 20th, 2009 (3/20/2009 1:14pm) in reply to LitezOut

     
    Originally Posted by LitezOut View Post

    bankruptcy... but with the current political climate, that doesn't seem possible

    I understand that point with AIG...Can Citibank realistically go bankrupt without the whole system crashing at which point my $2.5K will be peanuts to the other $50K I have in the market?
    Thread Starter
  4. eagleseye13 eagleseye13 is offline japanese pos

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    Mar 20th, 2009 (3/20/2009 1:27pm) in reply to mkm44

    they had this dude on the news here in FL that bought 10k worth in citi back a little more than a week ago and sold it this week for 90k profit..damn
  5. mkm44 mkm44 is offline

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    Mar 20th, 2009 (3/20/2009 1:42pm) in reply to eagleseye13

     
    Originally Posted by eagleseye13 View Post

    they had this dude on the news here in FL that bought 10k worth in citi back a little more than a week ago and sold it this week for 90k profit..damn

    Don't know where you would get a 90K profit from in a week, but 30K is reasonable.

    The stock hasn't gone up 9X in value yet. Hasn't been above $10/share since November.
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  6. eagleseye13 eagleseye13 is offline japanese pos

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    Mar 20th, 2009 (3/20/2009 1:45pm) in reply to mkm44

    hmm..it was on the late news..i prolly heard it wrong bc i wasnt feeling well but i know it was a substantial amount..def over 20k..
  7. mkm44 mkm44 is offline

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    Mar 20th, 2009 (3/20/2009 1:48pm) in reply to eagleseye13

     
    Originally Posted by eagleseye13 View Post

    hmm..it was on the late news..i prolly heard it wrong bc i wasnt feeling well but i know it was a substantial amount..def over 20k..

    Ya would of been about $30K nothing more than that for profit.

    He would be hoping for at least $90K in profit in the long term though I bet.
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  8. Dyzalot Dyzalot is offline

    Candia, NH
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    Mar 20th, 2009 (3/20/2009 1:51pm) in reply to mkm44

    If you are looking to invest in the market long-term then I would wait until we have definately reached the bottom and had a few months of gains in general stock prices. You will do much better by making sure the bottom has been reached and passed as opposed to trying to time the bottom just right.
     3
  9. LitezOut LitezOut is offline

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    Mar 20th, 2009 (3/20/2009 1:58pm) in reply to mkm44

     
    Originally Posted by mkm44 View Post

     
    Originally Posted by eagleseye13 View Post

    hmm..it was on the late news..i prolly heard it wrong bc i wasnt feeling well but i know it was a substantial amount..def over 20k..

    Ya would of been about $30K nothing more than that for profit.

    He would be hoping for at least $90K in profit in the long term though I bet.

    Does quoting the post directly above tilt anyone else but me?
  10. mkm44 mkm44 is offline

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    Mar 20th, 2009 (3/20/2009 1:58pm) in reply to Dyzalot

     
    Originally Posted by Dyzalot View Post

    If you are looking to invest in the market long-term then I would wait until we have definately reached the bottom and had a few months of gains in general stock prices. You will do much better by making sure the bottom has been reached and passed as opposed to trying to time the bottom just right.

    So just to be 100% clear: Instead of taking the "all-in" risk, if I'm in it for the long term it would be better to CONFIRM the bottom, wait a few months until the stocks are consistently on an upward path and buy at some point in there.

    I may lose $2-$5/share but the risk will be essentially gone? (I know there is always risk...I'm saying the risk of a bottom out right away again)
    Thread Starter
  11. jlourenc jlourenc is offline

    Huntington Beach, CA
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    Mar 20th, 2009 (3/20/2009 1:59pm) in reply to eagleseye13

    maybe he had citi in a three team parlay...
  12. Mr Galt Mr Galt is offline sister-in-law's a ho

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    Mar 20th, 2009 (3/20/2009 2:01pm) in reply to mkm44

    you will never buy the bottom or sell the top obv.

    prolly a reasonable speculative play if you can afford to lose the whole investment. consider using options to get some leverage if you are really trying to make a score.
  13. mkm44 mkm44 is offline

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    Mar 20th, 2009 (3/20/2009 2:08pm) in reply to Mr Galt

     
    Originally Posted by Mr Galt View Post

    you will never buy the bottom or sell the top obv.

    prolly a reasonable speculative play if you can afford to lose the whole investment. consider using options to get some leverage if you are really trying to make a score.

    Can you explain what that means for a financially stupid person lol?
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  14. ilovescotch ilovescotch is offline Mod of teh xfers

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    Mar 20th, 2009 (3/20/2009 2:59pm) in reply to mkm44

     
    Originally Posted by mkm44 View Post

     
    Originally Posted by Mr Galt View Post

    you will never buy the bottom or sell the top obv.

    prolly a reasonable speculative play if you can afford to lose the whole investment. consider using options to get some leverage if you are really trying to make a score.

    Can you explain what that means for a financially stupid person lol?

    If you don't understand options, having them explained to you on a poker forum is probably not the best idea. Not trying to be a dick, just realistic.

    If you want an overview of them, here ya go:

    http://en.wikipedia.org/wiki/Option_(finance)
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