T Nation

Stock Market Question for Dummies (Me)

I don’t know shit about the markets. However I’m curious…In relation to the H1N1 flu virus. When investers see something like this happening do they buy stock in Johnson&Johnson who make hand sanitizer? My logic tells me(or lack of it)that the buying public will panic and buy that shit buy the truck load which in turn makes them money. Is it that simple?

Also, is that Kramer dude accurate. Whenever I catch his show I get drawn in, it’s like some kind of hypnotic affect, I have no clue what he’s talking about but I can’t stop watching lol.

There are quite a few threads already discussing stocks/finance/investing. If you think that guy on tv knows what the fuck he is talking about then you’re nuts. All he does is regurgitate the same old guru bullshit but he yells, screams, and calls people bad names so he obviously must be right.

If you’re serious about learning about stocks, it’s best to do research on the company by checking their annual reports from year to year to find out exactly what they are doing. Not by wondering if people are going to buy hand sanitizer or not.

You can check them out for free on their website most of the time or on an index site like http://www.annualreports.com

Kramer IMHO is a blowhard who makes up for his lack of knowledge by putting on a carnival side show. If you want to invest wisely, see a reputable financial planner who can set you up with a good retirement plan (401K, IRA, Roth IRA, etc.)or annuity. If you can tap into something your employer offers, even better and a lot safer than going it on your own.

BG

I made $102k from the stock market in 5 days from my $100k investment, so thats 102% return, too bad it was by using virtual dollars for my finance class.

Something like Johnson and Johnson (likely owned by Proctor and Gamble but I’m too lazy to verify) is good to buy in the event of a recession, so now would be a good time regardless of epidemic. I think at this point there’s such a culture of fear that whether there is a specific sickness or not people will buy it. Remember schools, hospitals, restaurants etc will always buy it, no matter what. Thats why I say its good during a recession. When times are down invest in things people will always need to collect dividends. Ie soap, toothpaste, funeral business etc.
People will always be dirty and dying.

[quote]jck524 wrote:
I made $102k from the stock market in 5 days from my $100k investment, so thats 102% return, too bad it was by using virtual dollars for my finance class. [/quote]

Virtual dollars don’t mean shit. Wait until you have something involved in the game and see how well you can do keeping your emotions in check. Anybody, can make cold hard proper decisions when the outcome doesn’t actually matter one way or the other. The vast majority of investors sacrifice a lot of their money because they can’t keep their emotions in check.

It would also be wise not to buy stocks from a company that sells swine, just so you know…