If you had $5-10k to invest...The Mick or Stocks?

[nebboy]

Originally Posted by Johnny630

Agree S&P 500 all the way.

I agree with your agree!

[sickmantz]

My original post is not seeking financial advice. I'm just wondering how people feel about it.


That aside...In general, the stock market goes up over the long-term, but can anyone explain why? Is it weird that most people invest in the market not having any idea why they should expect it to go up other than the fact that history says so?

[Timbegs]

The stock market meaning the major indexes?

Two major reasons are the fact that these indexes often represent the best American companies and value these companies based on their growth and profitability. Companies that fail are bounced from the index. Like not counting dropouts in the graduation rates. Also, inflation and wages play a key role. Most often, companies pay for wage increases by offering 'less product' or raising prices. Over time, this will create inflation over the long term and that inflation is better reflected in a stock. That's why you here people complain about wage growth against cost of living. Put simply below:

If milk is 4 dollars a gallon and I make 100 a day, and the cost of milk goes to 8 and I get a raise to 150, I am making more money but I can't purchase as much. That's basic inflation. Along the lines of the same example, 100 in milk company stock in that scenario would be worth 215 after the price change and 'raises' because they're profit margin went up despite offering a raise.

That is as best as I can explain it while keeping it simple and not putting people to sleep. Bottom line, most we'll run companies use these tricks to pay off their investors - the shareholders. Being one means you've got a share of the pie.

[ls7plus]

I think you could do quite well in either, but IMHO, I certainly would not put five figures into one of the endless stream of off-grade '52 Topps Mantles that hit the auction sites--there are simply too many of them (a PSA 7-9 might well be a different story, albeit with a much higher acquisition cost). There is a relatively simple formula which applies to most collectible fields with regard to appreciation, and I actively study cars, coins and cards. You want something that is rare and significant, and in the best condition you can find or afford. Condition is the easiest of the three factors to evaluate and educate yourself about--ascertaining the other two requires some devoted study. The Mick and any of his cards issued during his playing career are significant, so that element is not a problem. Personally, I would look for something like his '53-54 Briggs Meat card in as nice a condition as you can find (even if graded authentic, as I think most of them are, since it is hand-cut), or the '55 Exhibit Postcard back, which also has proven to be quite elusive over the last few years. Demand usually comes around in time to truly rare and significant items.

Good thread,

Larry

[Peter_Spaeth]

Originally Posted by ls7plus

I think you could do quite well in either, but IMHO, I certainly would not put five figures into one of the endless stream of off-grade '52 Topps Mantles that hit the auction sites--there are simply too many of them (a PSA 7-9 might well be a different story, albeit with a much higher acquisition cost). There is a relatively simple formula which applies to most collectible fields with regard to appreciation, and I actively study cars, coins and cards. You want something that is rare and significant, and in the best condition you can find or afford. Condition is the easiest of the three factors to evaluate and educate yourself about--ascertaining the other two requires some devoted study. The Mick and any of his cards issued during his playing career are significant, so that element is not a problem. Personally, I would look for something like his '53-54 Briggs Meat card in as nice a condition as you can find (even if graded authentic, as I think most of them are, since it is hand-cut), or the '55 Exhibit Postcard back, which also has proven to be quite elusive over the last few years. Demand usually comes around in time to truly rare and significant items.

Good thread,

Larry

Larry I don't know. I think much depends on at what point you buy, and whether there is really any demand for the issue even if rare. If you bought a nice 4 or 5 52T three years ago, you've probably doubled your money. At the same time, a number of years ago I bought a number graded Bazooka which are close to non-existent (nearly all the slabbed ones are AUTH), but I doubt it's appreciated much.

[Peter_Spaeth]

Originally Posted by sickmantz

My original post is not seeking financial advice. I'm just wondering how people feel about it.


That aside...In general, the stock market goes up over the long-term, but can anyone explain why? Is it weird that most people invest in the market not having any idea why they should expect it to go up other than the fact that history says so?

Improvements in productivity and innovation are at the core of it, I believe.

[Arazi4442]

Why do people invest in the stock market when they don't know why?

I'm a movie buff, so I'll quote one of my favorites.....

"A person is smart. People are dumb, panicky, dangerous animals. And you know it."

They do it because that's how it's always been done. If I had excess money and didn't feel it would make or break my standard of living, I would always go for the cards.
This hobby is fun!

[Johnny630]

I would save your 5-10k for now. Wait for a 10-20% pull back in the S&P 500, possiblly wait for a recession, then plunk that money into a SPY etf. This is what I'm waiting for. Idk by no means am I a professional investment advisor, I'm sure there are many out there who think my theory Is nuts lol. Still fun to talk about the subject.