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    Monday, March 23, 2020

    Stocks - r/Stocks Daily Discussion Monday - Mar 23, 2020

    Stocks - r/Stocks Daily Discussion Monday - Mar 23, 2020


    r/Stocks Daily Discussion Monday - Mar 23, 2020

    Posted: 23 Mar 2020 01:09 AM PDT

    These daily discussions run from Monday to Friday including during our themed posts.

    Some helpful links:

    If you have a basic question, for example "what is EPS," then google "investopedia EPS" and click the investopedia article on it; do this for everything until you have a more in depth question or just want to share what you learned.

    Please discuss your portfolios in the Rate My Portfolio sticky..

    See our past daily discussions here. Also links for: Technicals Tuesday, Options Trading Thursday, and Fundamentals Friday.

    submitted by /u/AutoModerator
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    We’re 7% away from history y’all.

    Posted: 23 Mar 2020 10:05 AM PDT

    ~1300 more points, around 7% and we will have officially taken the title of worst monthly decline in American history since September of 1931 during The Great Depression.

    Hope everyone bought stock in $ROPE.

    submitted by /u/theoddman92
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    Restaurant stocks have fallen 42% so far

    Posted: 23 Mar 2020 04:20 AM PDT

    According to this Restaurant index, restaurant stocks have suffered a 42% hit as people are forced to stay at home. The index measures the performance of top restaurant stocks since the lockdown in Wuhan.

    submitted by /u/stockwatcher11
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    Scientists warn a second and possible third wave of Coronavirus is on the horizon over the next year

    Posted: 23 Mar 2020 07:21 AM PDT

    What will happen when we've pulled every financial trick out of our hat and just as things return to normal, this thing brings the world to a hault again... will there be another massive sell off? Will people not have bought back in yet? What do governments do then? What happened to all that debt no one can pay? Obviously no one knows, but discuss...

    submitted by /u/kazillionair
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    US is new Corona Epicentre

    Posted: 23 Mar 2020 11:33 AM PDT

    So with the U.S. being the new epicentre and numbers are outpacing any other country by far, U.S. economy is more fucked than anybody expected. Big city parks are STILL crowded by ignorant fucks... No way this shit is close to being priced in. I mean this is the first crisis in which the outcome depends on individual american citizens... which is.... a nightmare as their IQ is like .... ughm....

    TL;DR sell/short all... we got a long way to fall from here. Cut losses right here or go all in on puts. The most important economy is fucked by its own stupid people. GTFO of this maniac market. NOW!!!!!!

    submitted by /u/QuadraDGoesReddit
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    Today's Stock Market News [Monday, March 23rd, 2020]

    Posted: 23 Mar 2020 05:44 AM PDT

    Good morning traders and investors of the r/stocks sub! Welcome to the new trading week and a fresh start! Here are your pre-market movers and news this AM-


    Today's Top Headlines for Monday, March 23rd, 2020

    • U.S. stock futures turned strongly positive Monday morning after the Federal Reserve pledged asset purchases with no limit to support markets. Dow futures hit their 5% "limit down" overnight, and were off 600-points at one stage Monday morning, as a massive coronavirus funding package failed a key Senate procedural vote Sunday. The Dow Jones Industrial Average tanked another 900 points or 4.5% on Friday, bringing the weekly decline to over 17% for the worst week since the 2008 financial crisis. Ahead of Monday's session, the Dow was off more than 35% from last month's record highs. The New York Stock Exchange's trading floor will be close starting Monday. The NYSE will go to fully electronic trading. The 10-year Treasury yield, which popped back above 1% last week, was below that level early Monday.

    • Top-level White House and congressional negotiators burned the midnight oil over the now-nearly $2 trillion coronavirus rescue package. Democrats blocked the bill in Sunday's vote, saying it did too much to bail out companies and not enough to help workers. Several GOP senators, including Rand Paul, who tested positive for the coronavirus, were not present to vote. Others, such as Mitt Romney, were in quarantine as a precaution. The Federal Reserve and Treasury are working on financing programs that could be worth $4 trillion. Goldman Sachs upgraded shares of Boeing, which is hoping for a bailout. Boeing stock has dropped 80% from recent highs on the dual crises of the outbreak and the grounding of its 737 Max.

    • The United States has the third most coronavirus cases in the world, with over 35,000 and 471 deaths, according to Johns Hopkins University data. More than half the U.S. cases are in New York, where the death toll increased to 153. Washington state has the second-most cases, with nearly 2,000 confirmed and 95 deaths. New Jersey, California and Illinois round out the top five states. President Donald Trump on Sunday activated the National Guard in New York, Washington state and California in order to combat the spread of the coronavirus. New York plans to run a clinical trial, beginning Tuesday, of a treatment regimen of antimalarial hydroxychloroquine and antibiotic azithromycin, a drug cocktail that has shown promise in fighting the coronavirus.

    • Global coronavirus cases topped 343,000, with 14,789 deaths and over 98,800 recoveries. China, where the outbreak started in December, still has the most cases at over 81,400. China's 3,274 deaths are second to Italy's 5,476 deaths. Italy is second in total cases at over 59,100. The U.S., Spain and Germany round out the top five countries. German Chancellor Angela Merkel went into quarantine over the weekend after contact with a doctor who tested positive for the virus. The German government is set to unveil major stimulus measures. Pressure mounts to cancel the Tokyo summer Olympics, set to begin at the end of July. Canada said it won't send teams to compete. Local media reports indicate that Japanese Prime Minister Shinzo Abe is considering a delay.

    • Cisco Systems is committing $225 million to assist in efforts aimed at combating the coronavirus while the rest of Silicon Valley also initiates an investment blitz. 3M said it will supply New York and Seattle with a half-million N95 respirator masks to address the ongoing shortage of health-care equipment. Merck said it will supply New York City with a half-million masks. Chinese billionaire and Alibaba founder Jack Ma sent to Africa 5.4 million face masks, over 1 million testing kits, 40,000 sets of protective clothing and 60,000 protective face shields. BlackRock is committing $50 million in outbreak relief.

    STOCK FUTURES CURRENTLY:

    (CLICK HERE FOR STOCK FUTURES CHARTS!)

    LAST WEEK'S MARKET MAP:

    (CLICK HERE FOR LAST WEEK'S MARKET MAP!)

    TODAY'S MARKET MAP:

    (CLICK HERE FOR TODAY'S MARKET MAP!)

    LAST WEEK'S S&P SECTORS:

    (CLICK HERE FOR LAST WEEK'S S&P SECTORS CHART!)

    TODAY'S S&P SECTORS:

    (CLICK HERE FOR TODAY'S S&P SECTORS CHART!)

    TODAY'S ECONOMIC CALENDAR:

    (CLICK HERE FOR TODAY'S ECONOMIC CALENDAR!)

    THIS WEEK'S ECONOMIC CALENDAR:

    (CLICK HERE FOR THIS WEEK'S ECONOMIC CALENDAR!)

    THIS WEEK'S UPCOMING IPO'S:

    (CLICK HERE FOR THIS WEEK'S UPCOMING IPO'S!)

    THIS WEEK'S EARNINGS CALENDAR:

    ($MU $LULU $NKE $PAYS $SIG $PAYX $GME $ONTX $CSIQ $JT $INFO $GO $WGO $LX $SCVL $SNX $HOME $BWAY $AEYE $KBH $RKDA $FDS $ERJ $PRGS $OPGN $SCS $NEOG $PUMP $HYRE $AIR $MYOS $LIQT $SAIC $SCWX $ESLT $VTSI $OCGN $QIWI $WOR $TNP $HTHT)

    (CLICK HERE FOR THIS WEEK'S EARNINGS CALENDAR!)

    THIS MORNING'S PRE-MARKET EARNINGS CALENDAR:

    ()

    ([CLICK HERE FOR THIS MORNING'S EARNINGS CALENDAR!]())

    N/A.


    EARNINGS RELEASES BEFORE THE OPEN TODAY:

    (CLICK HERE FOR THIS MORNING'S EARNINGS RELEASES!)

    EARNINGS RELEASES AFTER THE CLOSE TODAY:

    (CLICK HERE FOR THIS AFTERNOON'S EARNINGS RELEASES!)

    FRIDAY'S ANALYST UPGRADES/DOWNGRADES:

    (CLICK HERE FOR FRIDAY'S UPGRADES/DOWNGRADES LINK #1!)
    (CLICK HERE FOR FRIDAY'S UPGRADES/DOWNGRADES LINK #2!)
    (CLICK HERE FOR FRIDAY'S UPGRADES/DOWNGRADES LINK #3!)
    (CLICK HERE FOR FRIDAY'S UPGRADES/DOWNGRADES LINK #4!)

    FRIDAY'S INSIDER TRADING FILINGS:

    (CLICK HERE FOR FRIDAY'S INSIDER TRADING FILINGS!)

    TODAY'S DIVIDEND CALENDAR:

    (CLICK HERE FOR TODAY'S DIVIDEND CALENDAR LINK #1!)
    (CLICK HERE FOR TODAY'S DIVIDEND CALENDAR LINK #2!)
    (CLICK HERE FOR TODAY'S DIVIDEND CALENDAR LINK #3!)

    THIS MORNING'S MOST ACTIVE TRENDING TICKERS:

    • NFLX
    • MMM
    • PCG
    • AME
    • ITCI
    • GDX
    • CAT
    • URGN
    • MYGN
    • EVBG

    THIS MORNING'S STOCK NEWS MOVERS:

    (source: cnbc.com)

    Boeing (BA) – Boeing was upgraded to "buy" from "neutral" at Goldman Sachs, which said Boeing will remain a going concern and that flight travel will be as popular as ever once COVID-19 is resolved.

    STOCK SYMBOL: BA

    (CLICK HERE FOR LIVE STOCK QUOTE!)

    Coca-Cola (KO) – Coca-Cola was upgraded to "overweight" from "neutral" at JPMorgan Chase, which points to rebound prospects post-COVID-19 and the idea that consensus estimates for revenue and profit are conservative.

    STOCK SYMBOL: KO

    (CLICK HERE FOR LIVE STOCK QUOTE!)

    Deere (DE) – The heavy equipment maker withdrew its financial outlook for 2020 due to the virus outbreak, and is temporarily shutting down some operations. It is continuing to operate in the U.S. and globally to the extent possible.

    STOCK SYMBOL: DE

    (CLICK HERE FOR LIVE STOCK QUOTE!)

    Amazon.com (AMZN) – Amazon is raising overtime pay for warehouse workers amid a surge in online shopping. Amazon's move follows similar action from rival Walmart (WMT), which raised the minimum wage for e-commerce warehouse workers.

    STOCK SYMBOL: AMZN

    (CLICK HERE FOR LIVE STOCK QUOTE!)

    Danaher (DHR) – Danaher's Cepheid unit received U.S. Food and Drug Administration approval for its rapid coronavirus diagnostic test, the first of its kind. The test can deliver results in about 45 minutes, compared to lab results which can take days.

    STOCK SYMBOL: DHR

    (CLICK HERE FOR LIVE STOCK QUOTE!)

    Netflix (NFLX) – Netflix was upgraded to "outperform" from "neutral" at Baird, which thinks the video streaming service will benefit from at least 2 factors: more people at home due to the coronavirus outbreak, and acceleration of cord-cutting due to the lack of live sports on TV.

    STOCK SYMBOL: NFLX

    (CLICK HERE FOR LIVE STOCK QUOTE!)

    Apple (AAPL) – Apple dropped a two-device limit on online iPhone purchases, just days after instituting that limit. Apple brick-and-mortar stores outside China remain closed due to the coronavirus outbreak.

    STOCK SYMBOL: AAPL

    (CLICK HERE FOR LIVE STOCK QUOTE!)

    Newmont (NEM) – Newmont withdrew its 2020 outlook, with the mining company planning to defer some of its production to 2021.

    STOCK SYMBOL: NEM

    (CLICK HERE FOR LIVE STOCK QUOTE!)

    Occidental Petroleum (OXY) – Occidental is near a settlement with activist investor Carl Icahn, according to The Wall Street Journal. Under the proposed deal, two Icahn allies would receive seats on the Occidental board, and a third independent director would be mutually agreed upon by Icahn and Occidental.

    STOCK SYMBOL: OXY

    (CLICK HERE FOR LIVE STOCK QUOTE!)

    MGM Resorts (MGM) – The casino operator named Bill Hornbuckle – the president of its international division – as acting chief executive officer. Jim Murren stepped down as chairman and CEO over the weekend, following last month's announcement that Murren would vacate that position.

    STOCK SYMBOL: MGM

    (CLICK HERE FOR LIVE STOCK QUOTE!)

    Gilead Sciences (GILD) – The drugmaker put emergency access to its experimental coronavirus drug remdesivir on hold due to overwhelming demand.

    STOCK SYMBOL: GILD

    (CLICK HERE FOR LIVE STOCK QUOTE!)

    Best Buy (BBY) – The electronics retailer withdrew its financial guidance for the current quarter and the fiscal year, due to uncertainty related to the virus outbreak. It is also suspending all share buybacks and is shifting to curbside service only for its stores.

    STOCK SYMBOL: BBY

    (CLICK HERE FOR LIVE STOCK QUOTE!)

    Starbucks (SBUX) – The coffee chain is closing most of its company cafes across North America for two weeks, limiting service to drive-through.

    STOCK SYMBOL: SBUX

    (CLICK HERE FOR LIVE STOCK QUOTE!)

    Tiffany (TIF) – French luxury goods maker LVMH denied last week's reports that it is mulling buying shares of Tiffany on the open market, saying it is sticking with the takeover agreement signed in late 2019. Reports last week had said LVMH was considering open market purchases of Tiffany shares, since they are now selling for less than the agreed-upon takeover price.

    STOCK SYMBOL: TIF

    (CLICK HERE FOR LIVE STOCK QUOTE!)

    Bed Bath & Beyond (BBBY) – The housewares retailer is closing its flagship-branded stores until April 3, to help stop the spread of the coronavirus.

    STOCK SYMBOL: BBBY

    (CLICK HERE FOR LIVE STOCK QUOTE!)

    Marriott (MAR), (HLT) – These and other hotel companies are placing tens of thousands of workers on furlough, as travel dries up in the midst of the coronavirus outbreak.

    STOCK SYMBOL: MAR

    (CLICK HERE FOR LIVE STOCK QUOTE!)

    DISCUSS!

    What is on everyone's radar for today's trading day ahead here at r/stocks?


    I hope you all have an excellent trading day ahead today on this Monday, March 23rd, 2020! :)

    submitted by /u/bigbear0083
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    Got laid off today so day traded all day

    Posted: 23 Mar 2020 12:41 PM PDT

    Got laid off today so I spent the day gambling on SPXL and SPXS. I was down $2k at one point, but ended up $2,100 in the green. Not for the faint of heart.

    https://imgur.com/a/QQLwho8

    submitted by /u/portajohnjackoff
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    ATE

    Posted: 23 Mar 2020 11:12 AM PDT

    +20% in a day. Results should come out soon and its very promissing. Mid-April!

    submitted by /u/vchaud
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    AYTU Bioscience is deploying COVID-19 kits to Denver Airport.

    Posted: 23 Mar 2020 06:56 AM PDT

    Visa

    Posted: 23 Mar 2020 07:22 AM PDT

    Does anyone else think this is one of the best picks right now? It was near 210 recently before the crash and it's getting slammed hard. I also like MSFT but Visa is really sliding.

    submitted by /u/NAD92
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    We have claims and/or proof that Senators sold stock prior to the recent economic downfall that has caused the Dow Jones to lose approximately 35% of its value. Does anyone have information regarding other high profile figures doing the same thing?

    Posted: 22 Mar 2020 07:11 PM PDT

    This question just came to mind and I'm curious.

    Is there anyway to see if other high profile figures also sold large amounts of stock between the months of January and February?

    I'm talking CEOs (particularly those who have stepped down), athletes, businessmen and women, hedge fund managers or mutual fund managers.

    Edit: For those who are missing the point entirely... this is not a debate about whether insider trader occurred. I am simply curious at the gap between the average American missing the idea of what was coming, and those considered extremely successful in their trade missing the idea of what was coming.

    submitted by /u/Tiger_Leap
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    is buying SQQQ today a good idea if i am thinking the market will be red today?

    Posted: 23 Mar 2020 05:06 AM PDT

    is it as straight forward as inverse market performance?

    submitted by /u/16thebroccoli
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    The week ahead

    Posted: 23 Mar 2020 05:22 AM PDT

    As we wake up this Monday morning, the markets are down a couple of points, which in this environment is considered good news. Asian markets got hit more than usual, with the Chinese composites down 3 and 4%, South Korea down over 5%, while Japan is the single market in the World in the green today, up 2%. European markets opened down around 5%, but in the first couple of hours of trading they have regained around 2% of their losses. At 7 30AM ET, when this article is being written, the German DAX is down 3% and the British FTSE is down 3.5%. All other European markets are down from 2 to 4%. The US futures opened sharply lower last night at 6PM and after 3 minutes of trading hit their 5% limit low. With the European markets opening and starting to recover some of their losses, we sow the same movements in the US futures. At this time the Nasdaq futures are down 2%, while the S&P and Dow futures are down around 2.6%. There will be three major factors that will influence the market trajectory this week:

    Coronavirus numbers. As the outbreak continues to grow, the new cases and total deaths are raising dramatically every day now. During the weekend, we got more than 60000 new cases and 3000 deaths (20% of the total death toll). These numbers will continue to increase, especially in the USA and their increase will certainly have a negative effect on the outlook and the markets. Also very important will be Spain and Italy's numbers and their fight against the spread. These two countries are the most affected of the virus and their death rate is far bigger. At the same time it looks like China has put the spread under control, but there are multiple scientists talking about a second wave. If they are correct, that could be catastrophic first for humanity and secondly for the stock markets as well.

    Economic data impact. This week we will get the first real economic data showing the first effects of the economic slowdown. Tomorrow German and European PMI data is expected to plunge under 40, while US PMI's are expected slightly over 40. On Wednesday, price index data and durable goods numbers, while on Thursday there will be major news from the UK and their Monetary policy, German consumer confidence and the Initial jobless claims in the US expected to report 750 000 (281000 last week). None of this data will be good, and it could bring the markets down even more.

    Government stimulus. On the positive side the US Government is expected to pass legislation for the biggest stimulus plan in history, reportedly worth over 2 trillion dollars. There are still disruptions in Washington, with the parties not reaching an agreement yesterday, they had a procedural vote that needed 60 yes votes, but split 47-47, with democrats not agreeing to the Republican bill. This is politics and it will get resolved. I don't doubt for a second that Congress will not pass the stimulus package. The only issue concerning the stock market would be the previsions on how long the companies cannot buy back stocks and worst case scenario if the Government will ask for a stake in the company in order to give this financial aid. The second part is highly unlikely with a Republican controlled Senate.

    All of this being said, there are countless companies that have been pummeled, down 70, 80, 90% of their highs and are a bargain at this price. If you don't mind wild swings you could start entering the market. If you are more conservative I would wait until this crises settles down and markets stabilize. After this weekend one thing is clear, this crises is not going to end in two weeks and the economic impact will be much higher than any previous expectations. Good luck!

    submitted by /u/aleksandarslvk
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    What are your top 5 safest buys when this reaches rock bottom?

    Posted: 23 Mar 2020 09:17 AM PDT

    Im currently most intrigued by AAPL, DIS, BRK.B, JPM, SBUX

    submitted by /u/HowieFeltersnatch21
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    I moved my 401K to safety (G Fund) a year ago. Time to get back in the game?

    Posted: 23 Mar 2020 09:44 AM PDT

    Hello folks! About a year ago I had my federal 401K in C (Vanguard VIIIX) , S (VIEIX) and I funds (Fidelity FSPSX).

    I was tired of the markets volatility, pooped my pants and after 5 consecutive years of great earnings, I just moved it all to the G fund a year ago where its been all nice and safe. Everyone around me that does not play games with their retirement account is crying and Im sitting here wandering when I should jump back. I super inexperienced compared to some of you wizards but Im thinking of putting 20% back in today or just waiting to see if a nationwide lockdown goes down to then make that first injection back into the market.

    submitted by /u/PVPirates
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    The Fed promises unlimited Q.E, market initially catch a bid then sells off. Ain't nothing saving this market. Brace up lads, we're going way, way, way down

    Posted: 23 Mar 2020 09:02 AM PDT

    So, the Fed today announced asset purchase "I'm the amount necessary" in other words, the Fed is guaranteeing Q.E unlimited, it also promised to purchase a wide array of assets (not just treasuries). The markets initially rallied, then it's been down since. There's nothing saving this market. It's toast!

    submitted by /u/northernedge24
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    What is your price point on the following stocks: BRK.B, GOOGL, V, TSLA, MSFT, AAPL, INTC

    Posted: 23 Mar 2020 08:58 AM PDT

    I got:

    BRK.B: 155

    GOOGL: 950

    V: 124

    TSLA: 315

    MSFT: 125

    AAPL: 185

    INTC: 40

    submitted by /u/proprietism
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    My dad wants to invest $10,000 into stocks...

    Posted: 23 Mar 2020 11:48 AM PDT

    This investment is for his gain, but it's also sort of an investment for me - if all goes well.

    The thing is - He's been pretty stubborn about wanting to buy the Exxon Mobile stock - believing it will go from where it is now ($30ish) back up to $80.

    But everything I've read about the XOM stock says that it's a bad buy - even as a long term stock. Yet, there are older articles from 2019 saying that Exxon is a good buy.

    I just think he should just invest in Amazon, because it's probably only going to keep growing.

    I don't know all that much about stocks. That's why I'm asking for your sage trading wisdom.

    What do you guys think?

    Any suggestions?

    Thanks!

    submitted by /u/YeahMarkYeah
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    What's your price point for AAPL?

    Posted: 23 Mar 2020 06:55 AM PDT

    Right now AAPL has fallen 32% from it's peak to fair value range. I'd be pretty comfortable with a long-term buy and hold starting right now, but what optimal price are people waiting for/expecting it to fall to at this point?

    submitted by /u/proprietism
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    My favorite dividend stocks right now

    Posted: 22 Mar 2020 10:08 PM PDT

    Since pretty much everything's been crushed in the past months its led to many dividends looking much more attractive so here are some of my picks. I typically try to look at good free cash flow/growth, a yield that's high but not too high (so usually 2.5%-5%), payout ratio below 50%, companies with diversified revenue streams, and whether or not the company is a dividend aristocrat. I'm open to all input or criticism! Anyways, here goes:

    CMI (Cummins) - 4.5% yield. As a cyclical industrial company, it had already been trading down since October or November so it's at an even further discount to companies which were setting ATHs in February. Rock solid management with a shit ton of cash flow and a low payout ratio.

    HON (Honeywell) - 3.2% yield. Widely diversified company in many sustainable/critical markets like defense which has taken an absolute nosedive from $183 to below $110.

    ABBV (AbbVie) - 6.8% yield. One of the riskier options as it's still working through the massive Allergan acquisition. However it's received most of the approvals it needs and acquiring Allergan (who's biggest product is Botox) will help it diversify once the patent on Humira, by far its biggest revenue generator, expires in the next few years.

    RTN/UTX (Raytheon/United Technologies) - both above 3% yield. I list both because they're currently in the process of merging with each other, but both have become good dividend choices with the current panic. I also mention both because it's a merger of equals which will create a new company under the ticker RTX. Raytheon has always had good management and was a great growth stock while United always was a better stock in down times, but both have been hammered. While there are some risks and the actual process will take forever since they're both huge, the businesses seem to have a lot of synergistic opportunities and as a result would probably be able to deliver a stable dividend down the road.

    JPM (JP Morgan) - 4.3% yield. I see them as the most conservative bank as during the recession they didn't even want bailout money because the business was fine, but were forced to take it. over the past few years JPM outperformed the market by a relatively sizable margin and has vastly improved at a structural level since the recession. I think this will be a similar outcome and see their dividend as safe.

    ADP (ADP) - 3.2% yield. Has increased the dividend for 47 years straight and in my opinion is a consumer staple, but for businesses - so many businesses use their services for payroll that it seems relatively reliable in the current scenario. Nevertheless the market doesn't give a shit and the stock's been hit hard.

    PLD (Prologis) - 3.6% yield. This one is an industrial REIT with great performance over the last few years.

    Honorable mentions: LRCX, WEC/a thousand utility stocks, MCD, NEE.

    Hope this helps someone looking for dividend picks!

    submitted by /u/p_giggles
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    Which stocks/ ETFs are you looking at for a strong longterm position once this downturn is over?

    Posted: 23 Mar 2020 09:39 AM PDT

    Im searching out some strong longterm companies with a high dividend.

    Currently looking at AT&T, Verizon, Coca-Cola, Waste Management, and possibly Disney

    ETFs ive been looking at 5G, automation, aerospace, AI, robotics

    Welcoming any discussion on speculating on our positions after this downturn. Just trying to get prepared

    submitted by /u/Fabianb1221
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    TVIX on Monday open... red?

    Posted: 23 Mar 2020 06:39 AM PDT

    Can anyone help me understand how TVIX is supposed to work? I apparently don't understand it. In a most basic sense, is it not supposed to rise when the market is volatile/when the market is falling?

    I'm trying to understand why futures were limiting down, the NASDAQ is red, but somehow TVIX is also red. I must be misunderstanding something critical here, right?

    submitted by /u/27Rench27
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    Why the Market WON’T Bounce Right back

    Posted: 23 Mar 2020 08:32 AM PDT

    Entropy

    Narrowing secular passive investment trends have been the key to such a steady march upwards over the last decade. This increasingly polarized investment trend of passively directing stock purchase towards large cap companies has stifled critical price discovery achieved through fundamental security level analysis. We are now transitioning into highly volatile times as the market advances from a "low entropy state" to a "high entropy state".

    Let me explain what I mean by "entropy" a little better. Over the past decade, individual investing strategies have become increasingly correlated with one another. This simply means that your investment allocations, the individual companies you implicitly own, have likely been very similar to that of the person standing next to you. Moving forward in time, that correlation will diminish as investor strategies diverge through a process of seeking more adequately valued assets.

    Individual Retirement Savings Plans (think 401k)

    Herding individual investors into retirement savings plans (with few options in the way of true investment autonomy) has created a beast. Not only has it created the beast, it only provides the investor with a narrow spread of options which are, in effect, now a volatility engine with the ability to rebalance asset classes from anywhere rapidly.

    Available Liquidity

    There isn't even enough investor money in the market at present to bring it back to January 2020 levels. Over the past month, much destruction has already occurred to capital and valuations are down.

    The Fed

    The Federal Reserve has been propping up both lending institutions and an unknown number of companies since the great recession (the means by which this has been accomplished is complicated and outside the focus of this article). The Fed's easing will now need to be aimed more directly to the common people of this country instead of those who own vast amounts of wealth.

    Conclusion

    The assumption that the market, as most people gauge it, will bounce right back after COVID-19 presupposes that investor sentiments will suddenly merge in harmony. This is not likely to happen. We are at the opening gates of a very necessary investor paradigm shift.

    submitted by /u/PracticalChicken1
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    Can someone explain why TVIX is down 20% today?

    Posted: 23 Mar 2020 08:00 AM PDT

    VIX is up and the market is down, but TVIX is also down 20%. I'm not understanding why. Can someone explain why? I appreciate it!

    submitted by /u/RamboSnow
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    Bullish on NVDA

    Posted: 23 Mar 2020 12:09 PM PDT

    Today I decided that I want less short exposure, and looked through my list of stocks to look for a buy, and NVDA won. This is why:

    1. It was in the middle of a strong rally going into the crash.
    2. Semiconductors generally took a hit and stayed down, partially due to factories shuttering across Asia. However it seems that Nvidia relies mostly on Taiwanese production. Taiwan handled the virus amazingly, and that production should be just fine. The stock, however, has not outperformed the market as well as the stay-at-home stocks, so I think there's an opportunity.
    3. As stated, Nvidia makes chips that process artificial intelligence mathematics operations, which is a rapidly growing source of business tools and productivity.

    So I just took a stake in NVDA today with 9% of my portfolio, while still holding about 30% equity in SPY puts. With the exception of this past month, I generally hold stocks 5-10 years.

    What do you think? Can you tell me why you wouldn't buy NVDA?

    submitted by /u/biochemguy
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