It will go up higher.. my price target is $15-$16 by year end.

This week, DJ is pulling back..we were way overbought the last 2-3 weeks.
Now, everyone waiting for more data to see where the economy is heading.

Commodity prices also lower except for crude. No big drop for crude oil yet.

danmooncake,

If you shop around, you can find mutual fund with no load fee. Especially from Vanguard.

Dreamer

---

Added on June 18, 2009, 8:35 pmchin20350,

http://finance.yahoo.com/q?s=VEU,VTI&d=s

Why 50??

VTI give you 2,000 stocks in USA. VEU gives you 2,000 stocks outside of USA. And, the annual fee is less that 1%.

Between VTI and VEU, you owned the WHOLE world.

Dreamer



This post has been edited by dreamer101: Jun 18 2009, 08:35 PM

Hey Dreamer..

I have some VTI (Vanguard ETF).. it been following DJIA and S&P and cheaper too!
Up since 30% since March lows!

As for mutual funds.. don't like those yet. Even with no front load, the maintenance fees and the re-distribution fees are killing profits.

For me, best play for low rate and diversification is index funds.

Since march lows.. the next 30% gain is much harder..



This post has been edited by danmooncake: Jun 18 2009, 09:18 PM

syong:

the reason bac
poor dividend with highest value 60-70 usd
no doubt bac is a dividend counter but inview of current TARP bac need some time to digest what he had eaten..
please remember bac do not have permanent capital loss like citigroup or aig.
it have better potential than anyone.

march i am looking at bcs barclays, bought 1000share.. i think this is a good counter as well for 1/2 speculative and 1/2 investment purpose.

i bought bac at 3.7usd 1000share and another 1000share at 5usd., 500 share at 11.5usd
i am holding them thru thick and thin. i believe my effort will be paid off by the time i pass on to my son or daughter.

good luck with all the investment.

50 counter are just nice;
5 counter =reit
5counter=energy
10 counter = banking+finance + insurance
10 counter= consumer staples eg pep,ko,bkc,mcd,yum,kft,
10 counter=industrial product ge gd,lmt,ford,dd, dow
5counter=gaming industry lvs,mgm,dis
5counter= raw material bhp, riotinto, alcoa,

only new investor will own one to two counter, believe me i been like that before..trust me you will understand at some point of time.
not everyone can manage huge portfolio like 50 .. try 10 then 25 or 35 ..
this come with experience.

---

Added on June 20, 2009, 9:31 pmactually i am adding another 5 more portfolio
health product: merk,gsk, pfe,azn, abbott

This post has been edited by normanTE: Jun 20 2009, 09:31 PM

danmooncake,

Index fund is a form of mutual fund. It is a passive mutual fund.

VTI is an ETF which is a share class in the index mutual fund.

So, please use a more precise terminology to avoid confusion.

Dreamer

and one more thing guys, i dont buy etf or fund,
simply i wont want to employ people to mange my money..so i can save the cost of employ them.....
it will eat into my portfolio when u see it in long run

just like what u said, i m new investor who only owns 1 o 2 counters.
i also believe bac has the prospect to increase in long run. but with my limited fund / capital, i will need to think twice...

NormanTE:
Good for you. I see you've pretty good diversified list in your portfolio (50 different tickers ). As long you've the time to look at your portfolio and adjust them over time, I believe you'll do great. Mutual Funds ("traditional") do eat into your profits if they have excessive participation and maintenance fees. ETF (sorta fund but works like stock) has very low maintenance fee, and since most of them less than 1%, and if you've pick the right ones, the performance should outweigh the cost. ETF is good for those with minimal capital and wanted to start with the diversification play.
On raw materials sector, I see that you've BHP and AA there.. man, pretty good call there, to play the commodity.
They'll probably go higher when the economy recovers.

So.. no China play here? No emerging market play?

normanTE,

Not all ETF and mutual fund are MANAGED. Most index based ETF and funds are not managed.

Now, as to whether you can do better than INDEX FUND, that is up to you.

I have a job. I do not have the time to spend on researching stocks. Having a market rate return is just fine for me.

Dreamer

normanTE,

u own the shares before or after US turn recession?
if it is before, then some of the shares only worth 1/10 compared to previously.

If BAC too expensive. Why don't you buy 100 unit?

wanted to buy, just keep waiting for the price to go down further..

again, my target price is always lower than the actual price.....

BAC is expensive? Who said that?

Anyway.. it is still cheap now. One share only $13 bucks!
Used to be $45-$55 before the bust.

It probably won't back go to that range for a long time.. but mostly likely
will go back to half that range (mid $20) in about 1-2 years.

Time to buy some.. if you like BAC.

The better one is of course Wells Fargo, JP Morgan or Goldman Sach..

I do wish they would stock split Goldman (make it cheaper per share).

i said that..

now only i know, lot of rich ppl here if not millionaires.
i only have limited capital, with so many good and cheap shares now.
so how should i choose among the basket?

Oh... sorry.. I didn't notice previous post.

Anyway.. are you saying you can't afford US$13 for one share of BAC?

syong,

Why choose?? Just buy all of them at one shot. If you buy VTI, you buy all 2000 stocks at one shot.

Dreamer

Ha! Dreamer., you're VTI pumper aren't you?

Hey look syong, he's right, you can own all 2000+ stocks for one share of VTI,
only $46..whoa!! Nice!

danmooncake,

IMHO, if a person has a small amount of money, the person SHOULD NOT buy individual stock to begin with.

It is my personal opinion that

A) Unless I can get 10X to 20X return, I should not even look at the individual stock. It is not worth my effort.

B) If I get 10X to 20X return, i do not need to put that much money into stock to make it worthwhile.

I will not put more than 5% of my total asset on my total individual stock portfolio. All of rest of my assets are in index funds.

So, the US stock that I look at are PURE gamble. I either get 10X to 20X return or I lose everything. And, that is okay since I am gambling with less than 5% of my asset.

Those are just my own personal opinion. So, I only look at any company that worth less than 1 billion. And, generally, I wait a few years for the stock to hit.

Dreamer

one share = 1000 units?
if yes, then i really cant afford...

if all of u know i cant even afford to have one bac trading at usd 13, do u all think that i can afford to hv vti?

assignment for the day, how and what to buy now????

This post has been edited by syong: Jun 21 2009, 12:12 PM

hi norman,

You got a big portfolio there. It is very true you know, "The rich gets Richer"
By looking at your holdings which are mainly Blue Chips I am very sure there are plenty of money to come in the future.

The current downturn represents a great opportunity to invest. We don't know for sure if the market has reach it's bottom but in the long run.....
Just look at the Dow's Graph.







Attached thumbnail(s)