Boiler Room: The Official Stock Market Discussion
BlaxOps
Pro
Artificial Fed buying/pump today?
dora_da_destroyer
Master Baker
if you're in solid tech companies DCA and hold...all the companies that were unprofitable, some will get acquired in the coming 12-24 months (a company like TDOC), others will die
. you can also just DCA VOO and QQQ - or VTI, and just sit out on individual stocks
ahomeplateslugger
Superstar
Seems like a classic dead cat bounce here. Market has just been oversold and needed a relief.
SleezyBigSlim
Banned
A fed person just announced they front loaded interest rates that's why the market is running this afternoon.
Counties at this point have two options, save their currency or their yields. How much of the world debt is denominated in $? Not sure how it’s possible to have all other countries blink and for the U.S to remain hawkish, unless they allow for defaults.
My guess is that he is referring to the fact that in 2020, the markets recovered from their lows within 5 months. Thanks to recency bias, everyone has been buying dips with the expectation that the pullback will happen any moment now.
No one knows how long it will take to recover its losses, but the Feds can put their foot on the scales to nudge the markets in a preferred direction. What they've been saying through their actions is that they will be OK sacrificing a portion of historically great unemployment #s if it means that inflation will dip. They are making it more costly to borrow money, which leads to people spending less, and some jobs doing cuts or slowing down hiring as a result. This will slow down the rate of inflation but also the economy.
It's a balancing act because if they overdo it, then it could leading to a downturn that continues even after inflation subsides. Also, it's a catch-22 as black people, because inflation tends to hurt the financially insecure the hardest (read: disproportionately African-American) but at the same time, when jobs cool off on hiring and/or make job cuts, usually the first to go are low-skilled workers (read: disproportionately African-American). Whatever the Feds do will have a negative impact to one degree or another and so they have to try and pick the lesser of two evils.
As an example, the Feds were criticized for their actions (or lack thereof) during The Great Recession. In that instance, if you invested $100 in the S&P 500 in late 2007, it would've take 7.5 years for you to get out at breakeven (before accounting for inflation). That is why some people are saying don't be so quick to buy the dip and others are saying that as long as you keep DCAing and have a few decades before you are set to retire, you will do just fine in the long run.
I recommend this podcast as a daily snapshot of the economy as a whole as well as random local businesses. I've been interested in finance for +10 years but only truly wrapped my head around some of the more ideas thanks to this podcast:
Marketplace
Hosted by Kai Ryssdal, our flagship program is all about providing context on the economic news of the day.www.marketplace.org
@Macallik86 pretty much summed up what I was saying, but shyt like this is what I’m talking about
The BOE pivoted today, and not because “the stock market is dipping”
Pensions are by the far the most conservative investment vehicle and they aren’t for the 1%.
For the average investor their isn’t much they can do beside diversify in good indexes and take a swing and dca on a couple companies they like.
But my point was that it’s crazy to actively root for this so you can get a “generational buying oppritunity” and think the more tangible aspects (job employment and opportunity) won’t effect you.
^ the above is what I mean when I say people expect dirt cheap stock prices yet 2020 2021 (crazy growth) employment.
Nothing is an option. Cash has quite literally been king as in the dollar trade has been the best trade to make. I’m not a long term investor, I trade trends so it is not important for me to pick tops or bottoms, I just need to identify when the trend changes. Realistically, you’ll need a monetary policy shift likely due to recession or a black swan event before things start moving in a clear direction. A best case scenario is just a sideways equity and bond market for a few years
Yes but that’s why they’re raising rates (part of the reason). They need rates high so they can cut them again eventually. But it’s likely the first thing the do is pause for awhile. They won’t risk inflation spiking again with them patting themselves on the back
If you play in different asset classes, you never have to be out of the market.
Tech stocks generally need a low rate environment to thrive because generally they trade on dreams and not actual you know..money making. so until the market really starts a tying unruly and you get a policy shift, your tech holdings are dead money and maybe even a loss depending on where you bought.
No. I’d look across the pond for your answer. UK announcing early in the day (their time) that they’d be buying gilts. I imagine speculators here took that as a sign that the government here will eventually blink and the party will be back on
Every country devalues their currency, it’s not a huge deal in their minds. Certainly when it comes to oil, dollar is king. But I’d disagree about the US having to pivot, generally in tightening:loosening cycles, someone has to be the adult in the room, that could very well be us. I see no reason why we don’t test 118+ in the dollar over the next 18mos
BlaxOps
Pro
Ark Invest and Cathie Wood have bet on several space-related companies over the years. The ETF company also launched its own space ETF in 2021 to tackle the growing industry. One space-related company was recently added to two Ark Invest ETFs this week.
What Happened: A new position in Rocket Lab USA Inc (NASDAQ:RKLB) was taken by the Ark Autonomous Technology & Robotics ETF (BATS:ARKQ) and the Ark Space Exploration & Innovation ETF (BATS:ARKX) this week.
**I'm not sure if I should be happy or worried.
What Happened: A new position in Rocket Lab USA Inc (NASDAQ:RKLB) was taken by the Ark Autonomous Technology & Robotics ETF (BATS:ARKQ) and the Ark Space Exploration & Innovation ETF (BATS:ARKX) this week.
**I'm not sure if I should be happy or worried.
To answer this fully - if you’re a long term investor, you simply have to imagine what the world will look like in 12-18 months and be tactical based on that scenario. If you think the Fed will blink, then certainly it will create a new speculative environment. That environment I don’t think would be great for bonds because it probably means QE is back on the table. If you think we’re headed towards stagflation, you’d probably want to play defensive and get into equities that will lose less money than the rest while also paying you to hold the shares. You get the gist