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May 19, 2005 6:12 pm

Put head,

Ever heard of asset allocation? You know what they say about opinions? 

May 19, 2005 6:25 pm

[quote=ezmoney]

Put head,

Ever heard of asset allocation? You know what they say about opinions? 

[/quote]

Kid, your forum ID, EZMoney, indicates what a nimrod you are.  There is nothing easy about what you're pretending to do.

Tell me sonny, where is the growth going to come from in your asset allocation model if the stock market goes exactly nowhere for ten to twenty years?
May 19, 2005 6:30 pm

I was addressing you silly scenario. Growth does come from dividends and reinvestment. Ever study the effects of dividends and reinvestment? Where the heck did you go to school? 

No nimrod here old man. I started in 2002 and have done very well ever since.

May 19, 2005 6:31 pm

Oh how old men, having wasted their youth, envy the young. 

May 19, 2005 6:36 pm

Bitter old man. Put probably spent his best years in the back office of some no name B/D making 60k/year for the remainder of his career. Poor guy can’t help his attitude about the biz.

May 19, 2005 7:44 pm

[quote=ezmoney]

I was addressing you silly scenario. Growth does
come from dividends and reinvestment. Ever study the effects
of dividends and reinvestment? Where the heck did you go to
school? 

No nimrod here old man. I started in 2002 and have done very well ever since.

[/quote]

Damn, why that's almost three years ago, no wonder you know it all.
May 19, 2005 7:47 pm

[quote=ezmoney]

I was addressing you silly scenario. Growth does
come from dividends and reinvestment. Ever study the effects
of dividends and reinvestment? Where the heck did you go to
school? 

No nimrod here old man. I started in 2002 and have done very well ever since.

[/quote]

Tell me EZ, what is the benefit to reinvesting dividends if the value of the shares does not increase?

Is it possible--JUST POSSIBLE--that your vast experience is not sufficient even though you did start way back in 2002?
May 19, 2005 7:52 pm

If ignorance is bliss, Put's in heaven.

May 19, 2005 8:10 pm

[quote=Put Sucks]

If ignorance is bliss, Put’s in heaven.

[/quote]



Nothing like a snappy comeback from a regular wordsmith.
May 19, 2005 8:16 pm

Nothing like proving yourself and idiot everytime you open your mouth.

May 19, 2005 8:18 pm

before you jump on I know its an, not and.  See, it's a post, not a publication.

May 19, 2005 8:19 pm

Plus, I'm just a kid. 

May 19, 2005 8:19 pm

Trying to reach 200 post inside of a month.

May 19, 2005 8:29 pm

[quote=Put Sucks]

before you jump on I know its an, not and.  See, it’s a post, not a publication.

[/quote]



Nobody jumps on typos–but it’s not a typo when people type “advise” instead of “advice” again and again in the same post.



Nor is it a typo when they type “there” instead of “their” or 'they’re" again and again in the same post.



My own weakness is “it’s” which I automatically use to indicate possessive even though I know it’s wrong.



I’m still waiting for one of you brain trusts to explain how your
client’s net worth is going to grow if they reinvest their dividends
but the value of the stock being reinvested in does not go up.
May 19, 2005 8:50 pm

Well genius, let's first assume that your prediction is accurate and we experience a truly flat market as we did from '66 through '82.  To that end let us say that the stock doesn't decline.  The dividends paid and reinvested give you more shares of XYZ stock.  The newly acquired shares also pay dividends.  Now, we have a nice compounding effect.  Obviously, if XYZ instead declines markedly, we have a different story.

May 19, 2005 8:50 pm

Are you serious?  This kind of market is an options trader's wet dream.  In fact, if you're still active, I'm amazed you have time to post!

There's tons of ways to make money in a flat market.  The truth is, I'd rather have this kind of market than one that goes straight up.  At least the clients know that they're not the brains of the operation.  Income clients can be using options for cash.  There's collars and butterflies, and let's not forget that preferreds are still around, although they're not as popular as they once were.  Yessir, this is the kind of market to pick off "buy and hold" clients!

May 19, 2005 8:57 pm

[quote=Starka]

Are you serious?  This kind of market is an
options trader’s wet dream.  In fact, if you’re still active, I’m
amazed you have time to post!

There's tons of ways to make money in a flat market.  The truth is, I'd rather have this kind of market than one that goes straight up.  At least the clients know that they're not the brains of the operation.  Income clients can be using options for cash.  There's collars and butterflies, and let's not forget that preferreds are still around, although they're not as popular as they once were.  Yessir, this is the kind of market to pick off "buy and hold" clients!

[/quote]

It is my experience that with every options strategy you suggest the joy is that once you put the legs down you get to just sit and wait. 

Plenty of time for the little white ball, or mocking children on an Internet website.
May 19, 2005 9:03 pm

Well, as for me, I will do what I have been doing.   I manage several portfolios that are designed for absolute returns.  I short, I long, use foregin and domestic bonds, stops, some options and alt investments "but not often," and I watch the technicals.  I do not just buy and hold.    It is a pain in the a$$ sometimes because of all the work involved but it works and clients like it. 

Actually PT, hypothetically, if a stock didn't go up but you reinvested dividends, you would have a gain.  Do you mean, what would you do if the stocks drop even after dividend reinvestment?   Brokers are trained to "buy good investments 'usually MFDs,' and just hang in there."  I don't think that is appropriate at this point in time.  I think clients and brokers are going to get hurt and I think there will be far fewer of us around as time passes.  I think the tactical technicians will prevail with portfolio management.

As for me, I don't mind it so much when things are bad because that's when what I do shines the most. 

I'm sure there are some misspellings here.  If so, they are not type-Os , they are simply misspellings.  Too bad for me.         &nb sp;

May 19, 2005 9:05 pm

[quote=Put Sucks]

Well genius, let’s first assume that your
prediction is accurate and we experience a truly flat market as we did
from '66 through '82.  To that end let us say that the stock
doesn’t decline.  The dividends paid and reinvested give you more
shares of XYZ stock.  The newly acquired shares also pay
dividends.  Now, we have a nice compounding effect. 
Obviously, if XYZ instead declines markedly, we have a different story.

[/quote]



OK, let’s see.  I pay $10,000 for 500 shares of ABC at $20.  It pays $1 per share dividend.



At the first payment date I reinvest my $125 dividend in 6.25 shares–I
now have 506.25 shares which I could sell for $10,000–don’t lose sight
of the fact that the stock will be adjusted down for the dividend.



We cold do this mental masturbation for twenty years and what we would
get is $10,000 worth of stock.  It’s impossible to experience
growth in the stock market if stock prices do not advance–even if you
reinvest the dividend till the cows come home.
May 19, 2005 9:07 pm

[quote=Malcolm]

I’m sure there are some misspellings here.  If
so, they are not type-Os , they are simply misspellings.  Too
bad for
me.        &nbs p;&nb sp;

[/quote]



That’s refreshing.