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Bottom just fell out of Nikkei

e.nikkei.com

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Re: Bottom just fell out of Nikkei

#31

Post by PakG1 »

jarek wrote: post #18
radicaldreamer wrote: post #13

Earlier quoted context omitted.

I'd be very careful, if you're not experienced at all, you could get wiped out pretty easily in a market with this much volatility. A lot of people would've said today's trading session was a great day to buy, but look what happened. This is what they call a Black Swan event and nobody's sure that we've seen the bottom yet. Edit: If you want to see an example of how these drops can be deceiving and might not represen…

Yes - especially since right now everyone and their broker are thinking of ways to get in at those prices. Chances of you getting a decent deal while it's still around are slim, especially if you have no prior knowledge. If you don't know enough to know who the fool is in the market, you are the fool.

True story, probably experienced by thousands of people. Know someone who was into daytrading stocks and such. He had a home, no mortgage, no debt. Ended up losing the home. Wife left, took the kids. Wife eventually came back with the kids, they live a simple life now in some apartment. Life is not what it was, but they're getting by.

If you don't know what you're doing, you can lose everything. When you talk with truly successful traders (I know one who makes a million a year or more), you learn to appreciate that doing it well is difficult and requires a discipline that few people have.

Re: Bottom just fell out of Nikkei

#32

Post by chailatte »

idlewords wrote: post #25
chailatte wrote: post #20

This will trigger deleveraging around the world. Specifically, this will impact the venture capital in silicon valley. We'll likely start to see some angel/vc investors start to panic and withdraw from the market, shutting down startups, etc.

That is some serious narcissism right there, congratulations.

You read the post wrong. 'Specifically' is used to address how this will affect the startup industry, which pertains 'specifically' to this forum.

Re: Bottom just fell out of Nikkei

#33

Post by lionhearted »

ecuzzillo wrote: post #16
awa wrote: post #7

Earlier quoted context omitted.

any recommendations? Toyota?

Toyota's stock is probably undervalued to begin with because of the stupid pedal thing, and this probably makes it extreme. Short-term traders need not apply, though.

Toyota's trading at 21 times earnings on the NYSE... that doesn't seem like a crazy bargain. (Or is there some parallel listing on the Nikkei?)

Re: Bottom just fell out of Nikkei

#34

Post by jarek »

PakG1 wrote: post #31
jarek wrote: post #18

Earlier quoted context omitted.

Yes - especially since right now everyone and their broker are thinking of ways to get in at those prices. Chances of you getting a decent deal while it's still around are slim, especially if you have no prior knowledge. If you don't know enough to know who the fool is in the market, you are the fool.

True story, probably experienced by thousands of people. Know someone who was into daytrading stocks and such. He had a home, no mortgage, no debt. Ended up losing the home. Wife left, took the kids. Wife eventually came back with the kids, they live a simple life now in some apartment. Life is not what it was, but they're getting by. If you don't know what you're doing, you can lose everything. When you talk with tr…

The trick to getting rich is trading with other people's money.

You win, you get commission. You lose, it's not your money.

Re: Bottom just fell out of Nikkei

#35

Post by guelo »

_cbsz wrote: post #21
nickbp wrote: post #17

Earlier quoted context omitted.

Unless you really want to play with buying/selling individual stocks, you're probably best off buying a broad-based index fund, which effectively buys you a slice of the entire stock market. Eg VTSMX/VTSAX Also, are your 401k and IRA/Roth fully funded? Be sure to do that first. (Assuming USA resident here)

Could you make an argument for bothering to fund 401k + IRA/Roth at 20-something? If I'm trying to get fuck-you money by 40, don't I need every dime in order to get there? My nest egg is in plain old savings right now because I view it as personal runway.

You're making a giant bet with your entire life, you're all in, you can't even afford a safety net.

Re: Bottom just fell out of Nikkei

#36

Post by btmorex »

_cbsz wrote: post #21
nickbp wrote: post #17

Earlier quoted context omitted.

Unless you really want to play with buying/selling individual stocks, you're probably best off buying a broad-based index fund, which effectively buys you a slice of the entire stock market. Eg VTSMX/VTSAX Also, are your 401k and IRA/Roth fully funded? Be sure to do that first. (Assuming USA resident here)

Could you make an argument for bothering to fund 401k + IRA/Roth at 20-something? If I'm trying to get fuck-you money by 40, don't I need every dime in order to get there? My nest egg is in plain old savings right now because I view it as personal runway.

If you plan on being alive at 65, then yes you should. Both are fantastic investments because of the tax free growth. Basically everyone should follow this pattern with extra money they have:

1.) Max out employer matching in 401k

2.) Max out roth IRA contribution (in most cases, sometimes you might want a normal IRA)

3.) Max out individual 401k contribution limit

4.) Invest in other things.

Re: Bottom just fell out of Nikkei

#37

Post by mixmax »

tansey wrote: post #22
mixmax wrote: post #14

The Nikkei is now at a ten year low

No it's not... it's not even at a 2 year low.[1] [1] http://finance.yahoo.com/echarts?s=^N225+Interactive#chart2:...

The Nikkei 300 is, you're linking to the nikkei 225.

The nikkei 300 index is "The Nikkei 300 is a market value-weighted index of the 300 major issues on the first section of the Tokyo Stock Exchange (TSE). The Nikkei 300 uses a weighted average based on market capitalizations of component firms to reflect movements in the overall value of first section stocks. This contrasts with the widely followed Nikkei Stock Average which is an average price and is suitable for monitoring the level of the market and its changes.(1)"

The Nikkei 225 index is "The Nikkei Stock Average is the average price of 225 stocks traded on the first section of the Tokyo Stock Exchange, but it is different from a simple average in that the divisor is adjusted to maintain continuity and reduce the effect of external factors not directly related to the market(2)"

Nikkei 300 on Google finance: http://www.google.com/finance?q=TYO:1319

Sorry for the confusion.

(1) http://e.nikkei.com/e/fr/info/nifaq/300.aspx

(2) http://e.nikkei.com/e/fr/info/nifaq/225.aspx

Re: Bottom just fell out of Nikkei

#38

Post by chailatte »

bradly wrote: post #29
chailatte wrote: post #20

This will trigger deleveraging around the world. Specifically, this will impact the venture capital in silicon valley. We'll likely start to see some angel/vc investors start to panic and withdraw from the market, shutting down startups, etc.

Wouldn't the money pulled out of Japanese markets be invested in other markets?

It will most likely be in currencies (look at the strong Yen) and metals (gold/silver), not in equities.

Re: Bottom just fell out of Nikkei

#39

Post by X-Istence »

elliottcarlson wrote: post #4

Can someone share the best way to enter the stock market for someone who is completely clueless on stocks in general yet wanted to dabble in them for quite some time?

Find some low dollar stocks and put a couple hundred dollars in. Don't go for the big boys yet until you understand what trends to look for and how to manage that.

I bought Atmel stock not too long ago, it has since doubled in price. I made my money and then some. I bought Jamba Juice when they were still below a dollar, they are now trading at around $2+.

I didn't put a whole lot in, means I can't lose a whole lot, and I definitely won't become a millionaire, but at least it gives me the security that I won't be screwed because I put my eggs in one basket without knowing what I was doing.

Re: Bottom just fell out of Nikkei

#40

Post by patio11 »

lionhearted wrote: post #33
ecuzzillo wrote: post #16

Earlier quoted context omitted.

Toyota's stock is probably undervalued to begin with because of the stupid pedal thing, and this probably makes it extreme. Short-term traders need not apply, though.

Toyota's trading at 21 times earnings on the NYSE... that doesn't seem like a crazy bargain. (Or is there some parallel listing on the Nikkei?)

Toyota is listed on the Nikkei. The thing at the NYSE is called an American Depository Receipt (ADR). Basically, it is a coupon that says "Entitles the bearer to two shares of Toyota common stock in Japan."

In principle, the two do not necessarily have to move in lockstep. However, because of the massive size, prominence, and stability of Toyota, one would ordinarily expect them to correlate extraordinarily heavily as anything else is an exploitable arbitrage opportunity.

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