I just opened my first brokerage account and I'm looking to buy stocks.
I was thinking Netflix, hold for 4 years or so. But netflix doesn't pay any dividends, what do you guys recommend?
If you're going to buy one thing right now, buy a VIX instrument.
TVIX or something. Hold it with a 2-3 month time horizon. Cash out in increments over the course of the next quarter as the markets drop.
You might as well have said Pandora while you are at it.
Netflix is having its worst quarter in history. Had you said this was in last year, I would have said jump. And I Would have been wrong
You would have lost about 15% of your money. Aske me today, and I will ask you... the fuck you smokin bro?
If you think this is a dip buying opportunity (hint: it is, but not in the short-run), go long in some of the bigger, more stable players, like GE.
Hedge the position with a long in a VIX instrument.
Or, if you're unsure which way the markets will move, but expect volatility and want to limit your risk, take out a straddle strategy (see: options) on some stocks you like.
Its a dip for sure, but how long are you willing to wait? 5-10 years, Netflix will be the next Comcast competing with Amazon (Warner) We however will never see the 14'-15' jump again sort of a Comcast announcing a partnership with Netflix to air all their broadcasts for only a low low price of 4.99 a month extra (and dont think that isnt already being looked at)
Amateurs have absolutely no business going into the markets margin'd. It magnifies reward, but also magnifies risk.
Why would you try to play in the major leagues when you're not even used to the minors?
Sucks man. Good luck fighting that margin call.
This one is different. The Fed has hiked rates.
This one will be painful in the short term (3 months or so) and it is going to scare the shit out of the amateurs.
We might see as low as 13500-12500 on the Dow Jones. And most likely the 15200 region soonish.
>what do you guys recommend?
That you actually educate yourself or ask someone qualified for advice. Or both.
What on earth makes you think anyone here is sensible enough to take advice from?
Is anyone here concerned about the cheap oil, chinese instability, and fed pumping money in? along with the prospects of rising interest rates. I feel like this is all a recipe for a crash but people have been saying it for years and nothing major has happened.
Do not buy story stocks during a meltdown. NFLX is a cocktail party story stock, which makes it even worse.
Take a look at accidental yielders that will not go away: KR, F, ED. T.
Be smart dude. Phase your way in. This China noise is going to last a while. The bottom could be anywhere between 1750 and 748. Yuan shock devaluation will be the sign.
And stay away from trader instruments like the VIX. That's the dumbest thing you could do.
And build core positions in the big index SPY and the big safety of TLT, both also yield plays.
Europe is getting a lot of bullshit regulations on tobacco this year. Vendors have already announced that ~100 Brands won´t be sold anymore because they are banning most forms of advertisment and packageswill be 90% gore pictures, making a diversed brand portfolio useless. Only company not discontinuing any brands will be Phillip Morris, though this will still be a tough year for them aswell.
> motherfuckers stop selling Camel T.T
Dividend theory says that it's irrelevant whether or not a company pays dividends.
If it pays dividends, it's worth less because it has less cash.
If it doesn't pay dividends, you essentially took your dividend and plowed it back into the company, making the company more valuable.
Been in LMT for years. My only concern is that I will wake up one day and find out that peace has broken out all over the world.
Every time the market soars, everyone says that boring old dividend payers don’t make any money. Then, when things crash, people figure out that they weren’t that bad.
1. Buy conservative dividend payers
2. Enroll in "automatic dividend reinvestment"
3. Let it ride for 30 or 40 years.
earnings is the problem? well then long AMZN with everything you have. at a hundred million billion quadrillion times earnings, it must be good. Jim Cramer told me last year I couldn't go wrong