All things STOCKS

#12,004
#12,004
walkenvol said:
Back in the Carter / Reagan times we weren’t servicing such a massive national debt so the fed reserve could raise rates to the high teens to slow things down. At some point of raising rates, every tax dollar collected will service debt and all government spending for the entire year will be with borrowed money which doesn’t seem a viable option to me. I wonder if we might have to live with 5%+ inflation for 5+ years until this overheated economy slows?
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They are definitely in a quandary because if high inflation persists, interest rates are going up anyway even if the Fed isn't in there trying to lead rates higher.

Their objective should be to raise rates pretty quickly and dramatically (which they are already well in the process of doing), kill the inflation, and then pretty quickly bring them back down.
 
#12,006
#12,006
FdQ_kZEXwAE55eh


WOW
 
#12,007
#12,007
Thunder Good-Oil said:
You can open an account online without even funding it. Go to Schwab dot com or e*trade dot com. There may not even be minimum amounts necessary to deposit. Some mutual funds have minimum initial transaction amounts, but I wouldn’t mess with those initially (if ever).

You should be able to buy a single share of a stock or an ETF.

SPY is $390/share. It is an ETF.
VOO is $358/share. Another ETF
VTI is $196/share. ETF.
QQQ is $291. ETF.

Johnson and Johnson (JNJ) stock is $165/share.
Coca Cola (KO) stock is $59/share.
Kroger (KR) is $47/share.
Pepsi (PEP) is $165/share.
Walmart (WMT) is $133/share.
CVS Health (CVS) is $102/share.
Tesla (TSLA) is $303/share.
3M (MMM) is $116/share.
United HealthCare (UNH) is $522/share.
Macy’s (M) is $16/share.
Newell Brands (Rubbermaid)(NWL) is $16/share.
DraftKings (DKNG) is $19/share.

All (or most) of those share prices will probably be lower in the morning with the bad news from FedEx.

Newbies get excited when a company announces a stock split. It is just math. The market cap of a company is its value. For example, a company worth $100 million could have a million shares outstanding worth $100/each. They might do a 2:1 stick split and everybody that has one share would have two shares after the split. But the share price would immediately become $50/share and there are now 2 million shares. The company is still worth $100 million.

Tesla just had a 3:1 stock split. The shares were around $1,000 just before the split. Now they are about a third of that. But there are now 3x as many shares outstanding. Troubled companies usually won’t do a stock split. But mathematically there is no difference before and after a split. But some people get really excited when they happen. Often the same people that think penny stocks (really low share prices) are good ideas.

REVERSE stock splits are the opposite and usually mean a company is in financial trouble. Share prices that get too low can be delisted from being publicly traded on exchanges.

What a Stock Split Is and How It Works, With an Example
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Great breakdown on stock splits. Especially this year when you see big names everyone knows like Google and Amazon do it.
 
#12,008
#12,008
Velo Vol said:
Inching closer to the June low. I'm warming up to the idea of selling a put, and you're pooping on it.
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Sell a put for a high quality company. That way, if you are patient, you should eventually get back to even if it continues to be a bad market (assuming you get assigned). I’m thinking about C, BAC, MS, or BX. Financials might benefit with the higher rates. Got my eye on CG and APO as well - a little riskier though.
 
#12,015
#12,015
Thunder Good-Oil said:
Sell a put for a high quality company. That way, if you are patient, you should eventually get back to even if it continues to be a bad market (assuming you get assigned). I’m thinking about C, BAC, MS, or BX. Financials might benefit with the higher rates. Got my eye on CG and APO as well - a little riskier though.
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I bought a little of this earlier in the year, with that idea. But it's barely outperformed the market.

1663909271048.png

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#12,016
#12,016
Velo Vol said:
I bought a little of this earlier in the year, with that idea. But it's barely outperformed the market.

View attachment 493041

View attachment 493042
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I don’t see a symbol but assume it is XLF.

I think that the inverted yield curve issue holds it back.

I’ve owned XLF for a long time and it’s been okay. BLK, SCHW, and BX (and MA if you want to lump it in) have probably been my best financials holdings - although they have come way off their highs. I’ve also had C for a while. Meh. Owned GS for a while and took an average profit a few years ago. ARKF, RKT, STT, and HOOD - garbage. CME, ICE, CG, and APO I hope will be stars once an economic recovery hits stride. MS and Truist have held up from my entry points and I’ll hold for the LT (as well as BLK, BX, and SCHW) although I might start writing covered calls with MS if it can add another 10% plus. HOOD (and VIRT) might get back on course with dot gov easing up on attacking payment for order flow.

I’ve always liked IBKR but have never owned it directly.

I also bought a little bit of PYPL last year after it had pulled back a lot. It’s been dead money (like most everything else over the last year). I bought a little Wells Fargo when it dropped like a rock after their scandal. It’s still digging out of that hole.
 
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#12,021
#12,021
Thunder Good-Oil said:
France is in decent shape as well as Scandinavia. Germany really screwed up hitching their wagon to Russian energy. Putin needs to be exterminated.
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That's like saying California is doing great, but Tennessee is in real trouble. That may be true to an extent, but they are all riding on the same ship. If it sinks, they all go down.
 
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#12,022
#12,022
mrorange211 said:
Jesus. DXY is just ripping. Europe is in real trouble.
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The entire global financial system is in trouble if the dollar keeps rising. It's bad news for everyone with dollar-denominated debt.

At some point there's going to be a coordinated effort to rebalance Fx. Yesterday BOJ intervened to help the yen, but that's only a band aid.
 
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#12,023
#12,023
Thunder Good-Oil said:
I don’t see a symbol but assume it is XLF.

I think that the inverted yield curve issue holds it back.
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Yes, the financial services index. It's either the inverted yield curve or credit spreads or something holding it back. I don't know. Maybe the general tightening of liquidity?
 
#12,024
#12,024
Yesterday I was looking at this options chain, thinking oil should hold up in the near-term. Oops. Glad I didn't open.

1663940296378.png
 
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