OT- Did anyone sell equities in reaction to brexit?

[RUBigFrank]

Bought Citi during the down swing - thought the whole Brexit impact was an over reaction. If you really want to buy low and sell high you need to buy during these opportunities.

What is most interesting is that in the past year bank stocks have had the highest earnings volume in dollars of any sector - despite low interest rates. The book value in many cases exceeds the actual market capitalization (see BAC). Stress test results proving to be a boon in this sector - here is where a buy opportunity is!

 

[rutgersguy1]

Bought Citi during the down swing - thought the whole Brexit impact was an over reaction. If you really want to buy low and sell high you need to buy during these opportunities.

What is most interesting is that in the past year bank stocks have had the highest earnings volume in dollars of any sector - despite low interest rates. The book value in many cases exceeds the actual market capitalization (see BAC). Stress test results proving to be a boon in this sector - here is where a buy opportunity is!

Well I think many of the banks have been trading at or below tangible book for some time no? I think the biggest thing is their reduced earnings power because interest rates have stayed so low for so long. Given that I think shrinking the number of outstanding shares isn't a bad idea.

 

[rutgersdave]

Did anyone expect the market to go up again today 250 Dow? Wow, the market always surprise. Will it go up tomorrow?

 

[RU848789]

I don't know shit about markets or investing other than to know that the vast majority of people are really bad at timing markets, such that I wouldn't even begin to try. Which is why I did nothing during this situation and did nothing back in 2008. The only thing I've continued to do since 1989, when I started working after grad school, is putting the maximum amount allowed in my 401K every year and I've apportioned my 401K more conservatively every year or two, as I've gotten closer to retirement.

I did make one major decision back in 2001 that saved me a huge chunk of money. Back then I was invested very aggressively in my 401K at nearly 100% Company (Merck) stock. Had a couple of my MBA (Wharton and Stanford) buddies tell me I was nuts and should diversify. I listened and converted 90% of my Merck stock into diversified items when the stock was at its all-time high in the low 90s - within a couple of years it was down around 30.

Pretty sure I've done way better in my 401K with me touching the money very little than I would've done investing that money on my own. My 401K and pension should allow me to retire relatively young (56) in 2 years, barring the zombie apocalypse. So, save as much as you can, diversify those savings, invest more conservatively as you near retirement, and don't live beyond your means. And eat your veggies, brush your teeth often and always wear clean underwear...

 

[T2Kplus10]

Did anyone expect the market to go up again today 250 Dow? Wow, the market always surprise. Will it go up tomorrow?

The market is up to pre-Brexit levels, so much for the big crash. The EU just isn't that important.

 

[RUBigFrank]

not the EU to fear - its the emotion of investors and "herd theory.

 

[rutgersguy1]

I think the market is pricing in at worst a likely Norway or Switzerland solution for the UK which essentially means mostly status quo for the big issues. If that be the case what was the point of leaving? Still lots of uncertainty to play out over years and many issues to be hashed out that will make the markets react both up and down and still a good chance for recession in the UK with knock on effects from that too.

 

[patk89]

I don't know shit about markets or investing other than to know that the vast majority of people are really bad at timing markets, such that I wouldn't even begin to try. Which is why I did nothing during this situation and did nothing back in 2008. The only thing I've continued to do since 1989, when I started working after grad school, is putting the maximum amount allowed in my 401K every year and I've apportioned my 401K more conservatively every year or two, as I've gotten closer to retirement.

I did make one major decision back in 2001 that saved me a huge chunk of money. Back then I was invested very aggressively in my 401K at nearly 100% Company (Merck) stock. Had a couple of my MBA (Wharton and Stanford) buddies tell me I was nuts and should diversify. I listened and converted 90% of my Merck stock into diversified items when the stock was at its all-time high in the low 90s - within a couple of years it was down around 30.

Pretty sure I've done way better in my 401K with me touching the money very little than I would've done investing that money on my own. My 401K and pension should allow me to retire relatively young (56) in 2 years, barring the zombie apocalypse. So, save as much as you can, diversify those savings, invest more conservatively as you near retirement, and don't live beyond your means. And eat your veggies, brush your teeth often and always wear clean underwear...

You made multiple good decisions and then had blind luck catching the all-time high, especially given the run that Merck's stock had from the time you joined until the time you diversified. Most prudent investors do not buy the stock of their employer because, during down periods, their job is in jeopardy at the same time their investment is declining. Some companies match retirement contributions in company stock so there is no choice in the matter. There are many horror stories from those who worked for Enron (management was guiding employees to invest even as things were going down the tubes) and Bear Stearns (considered a sign of loyalty to hold BS stock). I'm jealous of your projected retirement age. That is very rare in the private sector and signals just how well you did managing your finances.

 

[RU848789]

You made multiple good decisions and then had blind luck catching the all-time high, especially given the run that Merck's stock had from the time you joined until the time you diversified. Most prudent investors do not buy the stock of their employer because, during down periods, their job is in jeopardy at the same time their investment is declining. Some companies match retirement contributions in company stock so there is no choice in the matter. There are many horror stories from those who worked for Enron (management was guiding employees to invest even as things were going down the tubes) and Bear Stearns (considered a sign of loyalty to hold BS stock). I'm jealous of your projected retirement age. That is very rare in the private sector and signals just how well you did managing your finances.

Yep, it was dumb luck that I did really well in my 401K Merck stock for my first 11-12 years of working and then it was pretty lucky that I had friends who were a lot more knowledgeable about investing than I was, who pushed me really hard to diversify - and that the timing just happened to be perfect. Was definitely trying to make the point to others to not do what I did, given the risks of being all-in on one stock (even an historically strong one). That luck probably shaved a couple of years off my retirement age.

 

[patk89]

Yep, it was dumb luck that I did really well in my 401K Merck stock for my first 11-12 years of working and then it was pretty lucky that I had friends who were a lot more knowledgeable about investing than I was, who pushed me really hard to diversify - and that the timing just happened to be perfect. Was definitely trying to make the point to others to not do what I did, given the risks of being all-in on one stock (even an historically strong one). That luck probably shaved a couple of years off my retirement age.

Karma works both ways. Good things happen to good people.