• Breaking News

    Sunday, March 29, 2020

    Stock Market - A realistic view of how this will all play out

    Stock Market - A realistic view of how this will all play out


    A realistic view of how this will all play out

    Posted: 29 Mar 2020 09:25 AM PDT

    I'm trying to think of how all this madness will play out realistically. All I see are posts either saying it's the end of the world or everything will snap back like a rubber band the moment people are allowed outside of their houses.

    Things are changing fast around the globe at the moment so it's hard to keep track of exactly what's what but over a third of the globe is under some kind of lockdown at the moment. In some places it means that people can't go out in public unless it's specifically to get groceries or other urgent product/service while in others it's only a recommendation to stay home as much as possible, and in still other places, the Tide Pods crowd is licking toilet seats. Regardless, a huge part of the financially relevant world are on lockdown and/or (most of) the citizens are doing their best to practice isolation and social distancing.

    As it is, there is nothing on the immediate horizon that promises a cure. A vaccine will take a year or more. Chloroquine needs testing before it can be used and reports of its efficacy are spotty. Even if a miracle were delivered tomorrow morning, people would have to get their hands on it and that takes time. We are probably looking at at least another two to three weeks in the miracle scenario. More likely, we are looking at anywhere from 2-6 months before life even starts to look like normal again if we depend on herd immunity and/or minimizing the virus' circulation.

    For argument's sake, let's say it's 3 months until the pandemic threat is removed enough to return to normal life.

    So, how does this all play out economically?

    During these three months, a lot of people are laid off/unemployed, receiving less than a normal income. Rent/mortgage payments are suspended but piling up the whole time. So are other payments. Cars, internet, etc. Everything that their UI check doesn't cover. At the same time, a whole lot of small businesses will never be able to catch up on the accumulation of debt over that time and will go bust. It's not like we'll just hit play and the world picks up where it left off.

    There will be fewer jobs available to return to because of the businesses that went under. People will have less money in their savings accounts to spend on shiny new toys. Those that avoided infection will continue to be scared by it. (No vaccine for another 9-15 months yet.)

    So now we have fewer businesses open, more people out of work, less disposable income available for those that did keep their jobs and some people still scared to go out and gather in crowded places. On top of all this is the realization by many the need for a rainy day fund and that ANYTHING can happen. I expect people will want to save more than usual (at least until they forget, which I understand is not very long for most humans, but still. lol)

    How anyone can believe the economy snaps back and goes full throttle in that time is beyond my understanding. OTOH, I also don't see how this could spell the end of the world and 1929 all over again.

    What I think is likely to happen:

    - people will resume buying the essentials immediately (and things they perceive as essential). Once people are back to their daily grind, they still need gas, they still need to repair their cars, they still need clothes and groceries, etc. They'll go back to eating lunch at McDonald's twice a week and their Starbucks coffees every morning. This stuff will snap back pretty fast. (Which cheap stocks to get into now for that snap back?)

    - new iPhones will have to wait till debt is paid off. So will that new sofa, that new car, etc. These things will take longer but will eventually recover as people forget. (Stocks to avoid for a while?)

    - some things may never recover or take an awful lot longer to forget and require years and years for people to resume. Cruise lines, for example. (Better be willing to wait 10 years plus to reach new highs.)

    Thoughts?

    Edit: Although I'm interested in hearing other takes on how this will actually play out, none of us really know and we're all just taking our best guesses. What I'm really interested in with this thread is identifying stocks that are "daily essentials" (either real or perceived) that will snap back fast, "non-essentials" (things that people are willing to forgo for a while) that will get back eventually but take a bit more time, and those that people will actively avoid for the foreseeable future like cruise lines.

    Edit 2: I landed on 3 months, not because I believe the virus will be gone by then necessarily (I don't), but I do think it's possible we could reach critical level herd immunity to keep the curve flat enough to handle the number of patients and/or I think that people will get sick enough of staying locked up they won't be as willing to stay in anymore. It'll be June, the nice weather will be in play and it's also possible that viral activity is somewhat muted in warm weather (though I'm not counting on it considering the number of infections in places like the Philippines, Indonesia, etc). Anyway, 3 months is less a prediction than it is an assumption for the sake of argument.

    submitted by /u/Skwigle
    [link] [comments]

    3M as Investment opportunity?

    Posted: 29 Mar 2020 03:39 PM PDT

    I'm still figuring out If it is worth it to invest in 3M, I mean they produce many things and belong definetely to the winner of the Corona Crisis.

    What are your thoughts?

    submitted by /u/scobbypoo
    [link] [comments]

    What happened to Netflix stock price?

    Posted: 29 Mar 2020 11:37 AM PDT

    So I've been browsing some old reddit threads:

    https://www.reddit.com/r/investing/comments/logss/my_condolences_to_the_holders_of_nflx/

    And in the comments people are talking how they bought the netflix shares for ~200$ 8 years ago.

    However when you view it on any finance website/ google finance and look at 2011-2012 netflix was around 40$ at that time. What is going on?

    submitted by /u/datapim
    [link] [comments]

    Could you see JETS ETF hitting $18 at some point in these upcoming maybe?

    Posted: 29 Mar 2020 02:49 PM PDT

    It was at $18.05 for part of the day on Thursday. It's at $15.55 right now. Would it be a pipe dream to see it hitting $18 at some point in these upcoming weeks? After the airlines bailout

    submitted by /u/lizeskiman97
    [link] [comments]

    Opinions on UTC vs LMD and XOM vs CVX

    Posted: 29 Mar 2020 08:09 PM PDT

    I'm having a dilemma choosing between the two, I'm fairly new to this industry. So far after doing research I'm leaning more towards UTC and XOM (even though I think CVX might be a safer bet, thinking that XOM is way too cheap and will have greater margins)

    submitted by /u/TrueHavoc
    [link] [comments]

    Does it make sense to invest in Dividend stocks if your budget is 1k-2k?

    Posted: 29 Mar 2020 12:31 PM PDT

    I have been researching dividend stocks and know it can be a good long term play. I have been looking at Kraft, MGM, Dominion mostly. But if put 1k into any of these, I am looking at $20/yr roughly if the dividend. Is that worth it? Is that a good investment to add to a portfolio?

    Edit: I currently have $3500 between Tesla, Alibaba and VOO.

    submitted by /u/Bearbarn
    [link] [comments]

    The Global Oil Market Is Broken, Drowning in Crude Nobody Needs

    Posted: 29 Mar 2020 05:12 PM PDT

    Anyone expecting to invest in oil, read this first. Demand is so low, storage is running out.

    The Global Oil Market Is Broken, Drowning in Crude Nobody Needs

    https://a.msn.com/r/2/BB11RfPZ?m=en-us&a=0

    submitted by /u/FunInsurance
    [link] [comments]

    ETFs/Lazy Portfolio - Currency Hedge and Avoid "Risk Brazil"

    Posted: 29 Mar 2020 04:59 PM PDT

    Guys, being a 25-yo-Brazilian guy, stable job and looking for investments in US ETFs in order to make a currency hedge and avoid "risk Brazil", would that funds below be okay for my choice?

    VTI 50%, VXUS 40%, BND 5% and BNDX 5%. Are the percentages okay? Should I add VNQ?

    Just reminding that this will represent 25% of my capital (the other 75% are split as follows: 25% Brazilian stocks (only blue-chips), 25% Brazilian REITs (diversified in retail, offices, industrial etc) and 25% in cash/fixed income investments).

    Looking for long-long-long-term investments. Not willing to move or touch this money for ~30 years. Thank you.

    submitted by /u/NiltonRoberto
    [link] [comments]

    Annual Forecast for Tesla – 2020

    Posted: 29 Mar 2020 01:13 AM PDT

    Tesla Inc. shares (NASDAQ:TSLA) have been going downwards in what would rather be called a jumpy and erratic manner. The signal for the market remains bearish: https://uk.advfn.com/newspaper/azeez-mustapha/54397/annual-forecast-for-tesla-2020

    submitted by /u/Ituglobal
    [link] [comments]

    Is it time to rethink the entire financial system? And can it actually be done?

    Posted: 29 Mar 2020 12:23 PM PDT

    Genuine question: it's obvious the world cannot continue as it is. Global warming. Increasing inflation. Widening of the wealth gap. 80% of all money owned by 20% of the population. Over population. Over consumption. Glorification of profit / money-money-money. Cold wars. Corruption. Always go-go-go. Overwork. And the list goes on.

    Is COVID-19 the catalyst that humanity needed for the entire fucking world to own up to the fact that we fucked up? Or is this no different to WW2 or the Great Depression or other pandemics which we will forget about in 5 to 10 years time and ignore all the shit we've done and end back where we started?

    What would it take for the world to literally change its ways?

    submitted by /u/maayven69
    [link] [comments]

    Is now the time for a teen to start investing?

    Posted: 29 Mar 2020 11:57 AM PDT

    For context -- Hi, I'm Max, I'm 15, and my parent and I have been talking about possibly giving me a bit to put in the market. Would this coming week (week of March 30) be the right time to put that money into the market or would I be better off waiting until mid-April or farther?

    Also, if anyone has just general advice for a new teen investor (what stocks to look at, best brokers, etc) please let me know! :)

    submitted by /u/maxtelle
    [link] [comments]

    Looking for suggestions for very beginner in trading

    Posted: 29 Mar 2020 11:38 AM PDT

    I'm looking into dabbling in the stock market and looking for any tips. 1. Are apps like Robinhood a good beginners introduction into stocks? Or what are the cons for these? 2. What are some good resources/reading materials for researching the markets ?

    My apologies, I'm sure you can tell my inexperience just by my verbiage

    submitted by /u/StraightCashHomey13
    [link] [comments]

    Beginner: Quick question regarding DCA

    Posted: 29 Mar 2020 10:07 AM PDT

    Would it be beneficial (never certain) to start a dollar cost averaging scheme now, doing these volatile markets? Or should I wait until the market "stabilizes"?

    Like any investment strategy, dollar-cost averaging doesn't make sense in every financial situation.

    submitted by /u/Prince_Gaming
    [link] [comments]

    Long term investment ideas

    Posted: 28 Mar 2020 10:47 PM PDT

    I recently started getting into trading and I want to set up for the long term. I figured now would be a good time to get good stocks at a steep discount. Any good ideas for the long run my budget is 1k to 2k?

    submitted by /u/mr_slice07
    [link] [comments]

    Best Chart Tools ?

    Posted: 29 Mar 2020 09:24 AM PDT

    I've been using some free tools but they all miss volume and secund and minutes windows to watch the stocks prices. Wonder if you guys can recommend any free or cheap tools that are actually good.

    submitted by /u/PaleCook
    [link] [comments]

    Canadian Stocks

    Posted: 29 Mar 2020 03:09 PM PDT

    We (A bunch of investors) are willing to invest in canadian stocks below $10 because we want to help Canadian small businesses so please comment below if you got companies in mind.

    submitted by /u/Old-sport-2
    [link] [comments]

    Marginal account - shorts and puts

    Posted: 29 Mar 2020 08:17 AM PDT

    I have been investing long term in my tax free accounts. Recently set up a marginal account for more short term investing and have a few questions:

    1) What is the difference between shorting a stock and puts? I know they both make money as things go down, but what is the difference?

    2) How does the time horizon for shorts and puts work? Can you short and put for a day, week, month, year?

    3) Can someone give me an example of a short and a put that they have invested in? Do you have any recommendations for shorts and puts?

    4) I purchased Voo in an account with canadian funds and my cash in the account went to negative. Can someone explain how this happened? I thought Voo was US dollar and the US dollar is doing better then the Canadian dollar, why did my cash in the account go into the red?

    Thank you

    submitted by /u/Guardian_0
    [link] [comments]

    Cost basis question

    Posted: 29 Mar 2020 10:41 AM PDT

    Monday I buy one share of Apple on Robinhood for $100. Tuesday I buy another share on Webull for $200. Wednesday I sell the share on Robinhood for $300. Is my cost basis $100 or $200? I understand this depends on LIFO and FIFO but are the brokerages just middle men for my total position or is each one calculated separately?

    I got married and my wife owns premarital Apple shares. If I then purchase shares I assume they are separate. She has "hers" and we have "ours" at this point but would me selling "our" shares through FIFO sell "ours" or "hers"?

    submitted by /u/CardboardInvestments
    [link] [comments]

    No comments:

    Post a Comment