Boiler Room: The Official Stock Market Discussion

NatiboyB

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"FORD states it plans on topping TSLA as the number 1 EV maker..."

:mjlol:Yaw keep sleeping if yaw want to. When this shyt hits 500 a share in 2025 gonna be a lot of FOMO...


I don't know about $500 but I most def think Ford will grow....I need to get a position going. I need to get a good price point going to start dollar cost averaging. But I'm torn between Ford and Rivian.
 

Spree At Last

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Can somebody explain in plain English how the rate hikes and taper decision will affect my portfolio in 2022?
not an expert, but this is my understanding: rate hikes favor companies that currently have positive cash flows, as opposed to growth companies that aren't profitable now but are projected to have strong cash flows in the future. this is because when interest rates are low (like now), the value of your money won't decline as much over time, since there aren't really any alternatives to grow your money (putting money in the bank or in bonds loses you money due to inflation). this makes growth stocks very attractive to investors, since their future earnings are worth more in low rate environments, which makes them willing to take on more risk to chase potentially huge future returns. also, companies can more easily borrow money when rates are low, which means they can expand their growth faster.

when rates go up, suddenly the value of those future earnings starts decreasing, and the cost of borrowing goes up for companies. investors now have many other options with lower risk and decent returns (like long-term bonds, and companies that are already making good profits). thus, people will rotate out of growth stocks and into value stocks / high-dividend companies. we've seen this happen time and time again this year with every rate hike scare from the fed.

all that said, interest rates are still going to be historically low even after rate hikes, so i'm personally planning to keep my portfolio mostly in stocks and continue adding to my index funds.
 

dora_da_destroyer

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remember when buy now pay later was the big thing companies wanted to get in? 53% of customers missed their payments :mjlol:

who would have thought people who couldn't afford to pay for an item would miss payments on it. i know people who hide their cars from the repo man when they are delinquent on payments so of course people will not give a fukk about whatever smaller item they buy with an IOU.
i wasn't fukkin with this sector at all, glorified layaway/payday loans...no moat, and clear signs that catering to people who don't have CC's or cash was gonna be fukkery both in terms of receiving payments as well as increasing consumer debt
 

GoldenGlove

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i wasn't fukkin with this sector at all, glorified layaway/payday loans...no moat, and clear signs that catering to people who don't have CC's or cash was gonna be fukkery both in terms of receiving payments as well as increasing consumer debt
:lolbron:
Broke boys and girls market

:banderas:
 

NatiboyB

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What happened? :confused:

I just wasn't a big believer in the buy now pay later business model. As far as actually getting their money. It just seems like they end up on the short end. The stores get their money. But now you have to get it from the end user. Good for the consumer but not a big fan of it for the business I don't like the risk.

Plus I used to see how people would do this place called Aarons.
 

Silky Johnson

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not an expert, but this is my understanding: rate hikes favor companies that currently have positive cash flows, as opposed to growth companies that aren't profitable now but are projected to have strong cash flows in the future. this is because when interest rates are low (like now), the value of your money won't decline as much over time, since there aren't really any alternatives to grow your money (putting money in the bank or in bonds loses you money due to inflation). this makes growth stocks very attractive to investors, since their future earnings are worth more in low rate environments, which makes them willing to take on more risk to chase potentially huge future returns. also, companies can more easily borrow money when rates are low, which means they can expand their growth faster.

when rates go up, suddenly the value of those future earnings starts decreasing, and the cost of borrowing goes up for companies. investors now have many other options with lower risk and decent returns (like long-term bonds, and companies that are already making good profits). thus, people will rotate out of growth stocks and into value stocks / high-dividend companies. we've seen this happen time and time again this year with every rate hike scare from the fed.

all that said, interest rates are still going to be historically low even after rate hikes, so i'm personally planning to keep my portfolio mostly in stocks and continue adding to my index funds.
:salute:
 

Idaeo

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Cathie just bought 7 million worth of NU, a South American digital bank. It looks like it was a spac that just listed.

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