Sell

[Rich Toscano]

[quote=saiine] Feds now buying individual Corp bonds. I can’t wait for them to announce that they will start buying all Robinhood portfolios which solely contain Hertz.[/quote]

Ha!

[scaredyclassic]

we had to destroy the village to save it.

we had to destroy the market to save it.

[Coronita]

[quote=Rich Toscano][quote=saiine] Feds now buying individual Corp bonds. I can’t wait for them to announce that they will start buying all Robinhood portfolios which solely contain Hertz.[/quote]

Ha![/quote]

Yeah, what’s up with people buying Hertz???

[svelte]

[quote=Coronita][quote=Rich Toscano][quote=saiine] Feds now buying individual Corp bonds. I can’t wait for them to announce that they will start buying all Robinhood portfolios which solely contain Hertz.[/quote]

Ha![/quote]

Yeah, what’s up with people buying Hertz???[/quote]

https://www.msn.com/en-us/money/savingandinvesting/the-rise-of-mom-and-pop-investors-in-the-stock-market-will-end-in-tears-warns-billionaire-cooperman/ar-BB15w34G?ocid=spartanntp

[Coronita]

So basically the premise is we have a bunch of young people who are day trading on things like Robinhood who are doing well right now, taking higher and higher risks, and that eventually they will lose their shirt, right?

Why does this sound familiar.. Oh, that’s right. It’s like the DotCom era….Except this time it’s a brand new generation of speculators…

Well, there was that article about the 20something year old that dug himself into a $700k margin debt hole and unfortunately killed himself.

[Coronita]

https://www.cnbc.com/2020/06/16/regulators-never-thought-investors-would-be-gullible-enough-to-buy-hertz-garbage-harvey-pitt-says.html

“Regulators never thought investors would be gullible enough to buy Hertz ‘garbage,’ Harvey Pitt says”

[Coronita]

I’m beginning to agree people are pretty stupid…

Folks really listen to this guy?

https://finance.yahoo.com/news/dave-portnoy-day-trading-cant-164238702.html

[saiine]

[quote=Coronita]I’m beginning to agree people are pretty stupid…

Folks really listen to this guy?

https://finance.yahoo.com/news/dave-portnoy-day-trading-cant-164238702.html%5B/quote%5D

Dude is a straight up degen.

[ltsddd]

The stock market is in the buy-high-sell-higher beast mode not unlike the dot bomb era. This too will end badly for a lot of folks. I am more convinced to hang on tight with the cash.

[Escoguy]

My answer is EFV. International value stocks with a reasonable yield.

Japan 26% came out of Covid more or less ok.
UK is hurting (18%)
Germany 11% (also came out ok so far)
Switzerland and Australia are also managing Covid fine.

Quick theory: US creates more money, US $ declines some but still we import more to maintain relative standard of living, Fed doesn’t raise rates, money is handed out to tied thing over, net effect= larger trade deficit, similar standard of living, and more debt managed at artificially low rates. Not enough “safe” assets to recycle the profits. Average person will think we muddled through but eventually this may cause some of the valuation gap to close with international value stocks. This can be a long (multi-year) process. In the meantime, we have some continuous scares in the US market, but the tech mega cap stay relatively highly valued as they can “absorb” excess funds created by central banks as they make products/services that people can’t live without. So long answer, yes it’s complicated but having real estate, mortgage debt at low rates, value stocks with some dividends and some mega tech will probably be ok. If you read “When Money Dies” deals with hyperinflation in Weimar Germany: 1. bondholders got killed, 2. stocks went up 3. real estate went up, 4. asset appreciation was used to pay off debt We may not get the full hyperinflation but a mild version already happened and we just didn’t see it. Normally we should have seen prices drop for all kinds of goods and services including real estate, but as so much aid/handouts/rescue money was put into the system the moment of deflation was erased before the statistics became official. So net effect, your cash is worth less than it would have been but as most don’t hold cash, it is a politically and economically non represented class. Shareholders, bondholders, real estate owners are those the Fed/congress cares out. I could go on.

[gzz]

Euro value stocks have been under-performing for a long time. I know because I have patiently held them.

I don’t mind too much, they still have gone up, and are quite safe. Some of the dividends are very high, plenty above 6% and maintained with strong earnings for a long time.

I did very well with Telecom Italia, but sold because of the risk of Italy leaving the Euro.

[davelj]

I’m with Grantham (or he’s with me – take your pick):

https://www.marketwatch.com/story/stock-market-legend-who-called-3-stock-market-bubbles-says-this-one-is-the-real-mccoy-this-is-crazy-stuff-2020-06-17?siteid=yhoof2&yptr=yahoo

[pinkflamingo]

I’m with Grantham (or he’s with me – take your pick):

So far, Jim Rogers, and Ray Dalio, and Warren Buffet are all with you I’d say. 🙂

[evolusd]

DaveLJ – with everything going up up up (housing, stocks) are you still in this frame of mind? I agree with your assessment, but wonder if “don’t fight the fed” is ringing true once again. The old bank I used to work for beat Q2 EPS estimates and are telling investors that the portfolio is holding up well.

[Coronita]

My YTD on my trading account is now standing at 39.44%.. but it’s getting really frothy….When the social media stars starts to try to talk about day trading on Robinhood, you know everyone is trying to get in…so it’s probably getting close to time to get out. Just look at what Tesla stock is doing $2000+/share.

And two of the indexes at an all time high. Not imaginable when covid cratered the markets just a few months ago and a lot of people were running for the hills and taking cover in cash.

I guess a bigger question is…What will be the events that will finally throw cold water onto all the newbie Robinhood wannabe daytraders?

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