2020 Investment Thread

[UDRider]

Basically the question is if stock market is tied to actual economy in any meaningful way. If it is we will see further slide, if it's not and it's all based on cheap credit and money being dumped by feds we will see it go up as underlying economy struggles. So far the latter seems to be true.

 

[byke]

1. if that site is trash you can find others that are talking about. It came across my feed and I apologize that I didn't hit your list of approved sites for financial info.

2. Imo 30m is a stock dump regardless of who you are or how much money you have. That 30m will impact the company and market regardless of the owners wealth.

3. The possible unknowns are huge. We haven't even begun to understand how this will impact us and calling a bottom seems to be a little cart before the horse to me. The last recession lasted years, how come this one will only last 2 months?

Can you bring up some info to support your bottom theory? I'm all ears and always open to hearing what people see in the market. I'm just curious how you are coming to your conclusion.

A famous quote from Buffet - Be greedy when the market is fearful, and fearful when the market is greedy. I feel like the market is being super greedy right now. Don't you?

Well they clearly have a gamer running the site. That doesn't exactly ooze quality financial editorials.

So money isn't relative anymore? If ten dollars is a lot to a hobo, it must mean the same amount to you?

We know about the possibility of credit/mortgage/loan defaults and unemployment. I think moderate amounts of those issues have been accounted for because values have dropped as they've been blown up in the news. There will be virtually no drop, if, when those numbers come out, they meet expectations. This is no different from how the market moves from when earnings info is released early versus when earnings are actually released.

I do feel like the market is greedy right now and has been since the bailout, but do you think the realities of valuations have been closer to the proper slow-and-steady-wins-the-race, or a money grubbing thrash? I'm just trying hard not to confuse what I think is right with what is real.

 

[Removed 3]

We are all in different situations. Some pulled out early. Some kept their portfolios intact; it's the wrong time to sell now or else you're going to lock in the loss.

Some have more money than others. Some have money they can risk to lose. Given what I do have, I wouldn't risk more than $3K at this time, which says an awful lot about what I perceive to be gambling vs investment


Buying equities now or later largely depends on what you believe will happen. And the market is not in sync with the economy, however you think the economy's state is. The stock market is always forward thinking.

It doesn't have to be the choice of being fully invested or invest in nothing, you know. Trust your own instincts.

 

[Smash Allen]

Buffets sale wasn’t because he fears a down turn, or at least not the only reason. The sale of that stock was to relieve berk from majority shareholder status

 

[DesiDucati]

2020 investment? Calls on the SPY 2+ years out.

Can you please explain to a newb how buying a 2 year Call on the SPY is potentially a good investment? If so, what level are you thinking? Thanks!

 

[DesiDucati]

I feel the same way and am reminded of this.

I’m a mod on several investment discord channels. The general feeling is new people think we’re going up but anyone that went through the last recession knows we ain’t see anything yet.

If you’d like access to any of these discord channels please PM me and I’ll provide it.

As a new and excited investor using Robin Hood, I am excited to join, but I’m not sure if I have any great insights to offer. I just like to learn more from more experienced peoples. Just like learning about motos here.

 

[Blankpage]

As a new and excited investor using Robin Hood, I am excited to join, but I’m not sure if I have any great insights to offer. I just like to learn more from more experienced peoples. Just like learning about motos here.

Approach cautiously, be afraid, be very afraid.

 

[Entoptic]

As a new and excited investor using Robin Hood, I am excited to join, but I’m not sure if I have any great insights to offer. I just like to learn more from more experienced peoples. Just like learning about motos here.

You can just join and ask questions. It’s designed to help new investors.

I’d also think twice about using Robinhood. It’s a horrible platform that will at the end of the day cost you money.

For example during the crash no one could log in.

 

[afm199]

We are all in different situations. Some pulled out early. Some kept their portfolios intact; it's the wrong time to sell now or else you're going to lock in the loss.

Some have more money than others. Some have money they can risk to lose. Given what I do have, I wouldn't risk more than $3K at this time, which says an awful lot about what I perceive to be gambling vs investment


Buying equities now or later largely depends on what you believe will happen. And the market is not in sync with the economy, however you think the economy's state is. The stock market is always forward thinking.

It doesn't have to be the choice of being fully invested or invest in nothing, you know. Trust your own instincts.

So totally true. I'm buying now but definitely not interested in jumping in with both feet. I like beaten down stuff that I am familiar with. I recently bought Exxon, always wanted it, but this was the first time it became what I considered affordable.

 

[Entoptic]

https://twitter.com/realDonaldTrump/status/1249422044564992001?s=20

We shall see what that does to futures in 2 hours.

We got earnings coming out this week and I'm sure this is Trump trying to hold the market up for the double top.

From CNN "analysts are forecasting a stunning 20% year-over-year drop in the second quarter."

 

[Entoptic]

Can you please explain to a newb how buying a 2 year Call on the SPY is potentially a good investment? If so, what level are you thinking? Thanks!

Options are not for the weak of heart. There are a lot of ways to lose everything and I suggest playing in a simulator before using real cash. The allure of options is that you can get in for cheap and potentially make 100x gains on it however like I said, it's high risk.

I'd buy out of the money calls for a far out date with hopes that it would go into the money. I know that sounds crazy but watch the video and it should hopefully make sense.

https://www.youtube.com/watch?v=VJgHkAqohbU

 

[UDRider]

So all major producers are colluding to raise price on oil and gas, and it's a good thing? :confused

 

[byke]

You could argue it with a few quasi-legitimate angles. One is that when prices drop like this it's kind of turning an hourglass to small companies shutting down and being gobbled up by larger companies, so you have reduced competition. Another is that regulations make it such that big oil is always slow to respond, so if they stop producing and wait for reserves to deplete, then it's really easy to end up with a gas shortage situation while they rehire and reopen facilities.

I don't like options. It's just a predatory game created by weasel middlemen, with rules more comical than baseball, for the purpose of taking their cut while people win/lose money between each other. It's the cash-4-gold version of investing.

 

[afm199]

Options are not for the weak of heart. There are a lot of ways to lose everything and I suggest playing in a simulator before using real cash. The allure of options is that you can get in for cheap and potentially make 100x gains on it however like I said, it's high risk.

I'd buy out of the money calls for a far out date with hopes that it would go into the money. I know that sounds crazy but watch the video and it should hopefully make sense.

https://www.youtube.com/watch?v=VJgHkAqohbU

The best part about options is that they allow you to leverage your money on a bet.

The worst part is that about 95% of people who trade options lose money on them. The ONLY reason i every use options is for insurance or income.

I don't recommend options for one simple reason. Unless you know something that puts you in the 5%, you're going to lose money on them.

 

[Entoptic]

The best part about options is that they allow you to leverage your money on a bet.

The worst part is that about 95% of people who trade options lose money on them. The ONLY reason i every use options is for insurance or income.

I don't recommend options for one simple reason. Unless you know something that puts you in the 5%, you're going to lose money on them.

While I agree it great for hedges there are some great yolo plays to be had. Imagine at the run up on Tesla you bought one call.

Futures didn’t open too hot. Wonder why with OPEC deal and oil regaining its drop from Friday.

 

[900ss]

As a new and excited investor using Robin Hood, I am excited to join, but I’m not sure if I have any great insights to offer. I just like to learn more from more experienced peoples. Just like learning about motos here.

Check out bogleheads.org; lots of investing advice here, beginner to experienced.

 

[DesiDucati]

Swing traded WORX this morning! It was insane! Anyone else? Willlit keep going up tomorrow? They are making 32 million a week according to the government contract. How reliable is that news on SeekingAlpha?

 

[Entoptic]

Swing traded WORX this morning! It was insane! Anyone else? Willlit keep going up tomorrow? They are making 32 million a week according to the government contract. How reliable is that news on SeekingAlpha?

Dude WORX, ICD, and BRQS. All over 400% today. It's legit news on WORX and I expect a continuation into tomorrow. Absolute banger of a day!

 

[afm199]

Swing traded WORX this morning! It was insane! Anyone else? Willlit keep going up tomorrow? They are making 32 million a week according to the government contract. How reliable is that news on SeekingAlpha?

As reliable as any other news. It's written by people. Some have an axe to grind, some have knowledge, some are touts.

I read Seeking Alpha daily,but I don't make many ( any) purchases based on it.

 

[DesiDucati]

As reliable as any other news. It's written by people. Some have an axe to grind, some have knowledge, some are touts.

I read Seeking Alpha daily,but I don't make many ( any) purchases based on it.

This was the third time I made a swing trade based on it and it was also the most beneficial. The other two times I lost money. I’m just wondering how much of the news they give out are actually great tips aside from insider trading.