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Investment Thread - For all your money needs

If it were me, I'd put it all in WFSPX. You are young enough that a 100% stocks allocation makes sense imo (though obviously many people are more conservative). And you take this approach, you want to go with the available index fund that is the closest approximation to a total stock market fund with the lowest expense ratio, which glancing at your list, should the the iShare S&P 500 index.

+1. And those American funds are probably more expensive than they need to be.
 
Anybody else starting to feel the bad #vibes? Like a major market correction is going to happen any day now.

Trump trade wars, Brexit, a 10 year unprecedented bull run, and news leaking out that larger Wall Street firms are beginning to downsize.

I have a decent chunk of change (mostly inheritance) that I put away around 4-5 years ago, and it is up almost 80% since then. Would I be a crazy person to walk into my broker and tell him to cash out like 75% of my stocks?

I don't know I just have a bad feeling.
 
Generally, don’t try to time the market or trust your feelings.

Pick a diversification strategy based on your timeline and stick with it. Fine to rebalance if needed based on long-term strategy.


If you have income apart from your investments, invest more if the market crashes. It will eventually recover, probably.
 
^That. I wouldn’t do it. You’ll live through several up and down market cycles between now and when you presumably sell it as an old man in retirement.

If it’s money you need very soon you probably should not have it in stocks anyway.
 
Soooo... Pacific Gas & Electric (PCG)- now at $3.80 down from $49- getting hammered because of all the fires- any corollary to the 'too big to fail' banks e.g. it's like investing in BAC at $3.50 during the financial crisis, which returned a quick 4x return on the snapback?
 
Soooo... Pacific Gas & Electric (PCG)- now at $3.80 down from $49- getting hammered because of all the fires- any corollary to the 'too big to fail' banks e.g. it's like investing in BAC at $3.50 during the financial crisis, which returned a quick 4x return on the snapback?

It could legit go to zero. I won’t get into all of the details, but the Kincade Fire was the last thing they needed as they try to exit bankruptcy. There is a chance that the equity value could get wiped out.

Will PG&E exist in some capacity down the line? Probably. Will the equity holders profit from here? Debatable.

FWIW, I played it late last year, but the risk is too high right now. We don’t even know if they’ll be able to participate in the Wildfire fund.
 
It could legit go to zero. I won’t get into all of the details, but the Kincade Fire was the last thing they needed as they try to exit bankruptcy. There is a chance that the equity value could get wiped out.

Will PG&E exist in some capacity down the line? Probably. Will the equity holders profit from here? Debatable.

FWIW, I played it late last year, but the risk is too high right now. We don’t even know if they’ll be able to participate in the Wildfire fund.

Were you long or short last year?
 
It could legit go to zero. I won’t get into all of the details, but the Kincade Fire was the last thing they needed as they try to exit bankruptcy. There is a chance that the equity value could get wiped out.

Will PG&E exist in some capacity down the line? Probably. Will the equity holders profit from here? Debatable.

FWIW, I played it late last year, but the risk is too high right now. We don’t even know if they’ll be able to participate in the Wildfire fund.

sounds like they could wipe out shareholders and sell to another utility. I hear they want Buffet, but not sure he will jump on this while they just took responsibility for these fires now.
 
I'd rather buy GE and have no interest in doing that.

There won't be a bounce for pg&e
 
I was long late last year and made money.

I did not ever short it, though that would have been nice.

I'd say it's about 50/50 whether it goes to zero right now... That's too much of a risk for me, even if you plan on holding it for years.

I actually own GE, too. And plan to hold it for years.
 
PCG will more than likely be taken over by the state. No private utility in their right mind would want to take on that kind of liability. Heard discussion this AM that would take state and fed assistance to solve.
 
Did you listen to On Point on NPR? They mentioned the state offered $2B for PG&E’s power lines or something like that.
 
Did you listen to On Point on NPR? They mentioned the state offered $2B for PG&E’s power lines or something like that.

I know SF offered them a ridiculously lowball offer of $2.5 bil for the lines there in early September.
 
Article in today's wall street with the title:

PG&E Trade Punishes Hedge Funds as California Burns
Investors in utility’s stocks and bonds lose $4.1 billion in four trading days
 
My wife has 8k in student loans that we have to start paying on 12/26. I think it's something like 5k at 4.75% and 3k at 4.25%. Is there any reason why we shouldn't pay these off in full the day after Christmas? Both under 30, DINKs.
 
PCG not out of the woods yet... Gov Newsom rejecting their plan is going to ding the stock today and tomorrow is the date where the bankrupcy judge hears arguments on the settlement.

Always exciting.
 
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