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    Home Unlabelled Stock Market - Printing money to counter recession have been EU and sadly... It doesn't look well

    Stock Market - Printing money to counter recession have been EU and sadly... It doesn't look well

    May 31, 2020

    Stock Market - Printing money to counter recession have been EU and sadly... It doesn't look well

    Printing money to counter recession have been EU and sadly... It doesn't look well

    Posted: 31 May 2020 06:46 AM PDT

    Hi I've studied econometrics (Macro economy) in Sweden (a welfare state who regularly do what the fed's currently's doing) and I'm at the moment employed at the statistical Central bureau of Sweden where we keep past economic data.

    Sweden's tactic to help the Economy usually consists of printing money and increasing well fair spending (Health care, school, highway's etc) in recession to create more jobs and the opposite in economic booms to make the recession less bad. So we have a good track record of how printing money affects the economy.

    Sadly for you U.S. citizens, printing money won't save the economy. Merly ease the crash landing that's about to come.

    Think of it like this. The U.S economy is like a water balloon, when times are good people take out credit loans and spend (filling the balloon with water) until it becomes so big that holes appear so water rush out (recession).

    What's currently happening is that Corona is slowly creating holes in the balloon as it spreads (Job loss). The Fed tried to counter this by filling the balloon with water (printing money). But no matter how fast the fed will try to fill the balloon, the water will rush out of the holes (That keep forming!) Faster than they can keep the money printing up.

    The only way to fix the balloon, is by covering the holes. (A Corona virus cure) And sadly, no matter what the media tries to convey, the average vaccine takes 10 years to produce. This can barely be speed up with more funding since one must take time to observe what the vaccine does to your body before it can be released to the public. If you Google on interviews with medical professionals, most claim that due to the massive funding and focuse on the vaccine, a working cure with no side effects is at best 5 years away or 3 years away with side effects. The 1,5 years away is IF we manage to convert an existing similar vaccine AND absolutely nothing goes wrong in any of the 3 vaccine stages. Which is if you haven't already guessed it. Almost impossible.

    In conclusion : For those of you that think that the fed can print their way out of this recession, I'm sad to say that it can't be done. Many EU countries such as Sweden, Norway, Denmark and Germany have tried it. What happens is that most people simply save the money due to bad times. Meaning that since they don't spend it, there's barely any new jobs created. The best the money printing can do is to make the recession less worse than it could have been.

    Hope you all keep safe in these troubling times.

    submitted by /u/MrMatsson
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    5/31/2020: Weekly Wrap-up and What to Expect

    Posted: 31 May 2020 04:10 PM PDT

    As we expected, we heard a string of positive news regarding COVID and society. Reopening has been successful with the help of government relief and additional players joining in the effort to develop COVID vaccines and treatments. Riots around the U.S. have led to volatility, but will not likely have long-term effects on the economy. Here are the details:

    1. Novavax (NVAX) starts P1 COVID vaccine trial and Merck (MRK) announce development of two vaccines and one treatment. At the beginning of the week, two biopharma companies announced progress in the fight against COVID, with NVAX starting a P1 trial and MRK initiating vaccine and drug development. These two companies are only the latest to announced positive development against COVID. Merck, well known for their production of penicillin to help keep soldiers healthy to win WWII, is now taking on another war, the COVID pandemic.
    2. General consensus seems to say, "the worse is over", as economies have demonstrated successful reopenings to-date. Now that all states but New Jersey have plans of reopening, signs of economic life are re-emerging. Spending on hotels, restaurants, and flights have started picking up. "If this is the only wave [of coronavirus], it looks like we've bottomed out and the normalization process has begun," said Beth Ann Bovino, U.S. chief economist at S&P Global Ratings.
    3. However, COVID relief has been so great that the U.S. government is considering financial incentives for people to go back to work. A new study by the University of Chicago show that two-thirds (68%) of jobless workers may earn more money from their state unemployment insurance plus the $600 weekly supplement from the federal government than they would have on the job. In fact, one in every five eligible workers would receive benefits that were double their lost earnings. Because benefits are so great, the U.S. government is worried that citizens may be disincentivized to go back to work. As a result, the Trump administration is considering a $450 per week bonus to return to work on top of wages.
    4. Furthermore, riots across the U.S. after the tragic death of George Floyd demonstrate instability across the U.S. and is a wild card for the market. Protests over the tragic death of George Floyd in Minnesota, New York, etc. have resulted in violence, arson, and looting. Political and cultural instability never benefits the economy, especially as it's recovering from the devastating COVID blow. However, instability like this in the U.S. generally ends after a week or two once citizens turn from protest to discussion that hopefully results in a permanent societal change for the better.

    Even with protests across the U.S., economic recovery from COVID continues, fueled by medical advancements and successful reopenings. WX Capital believes the riots will contribute to volatility in the near-term as we saw in the last few days of trading last week. However, over a longer period, we believe that economic recovery will be sure and steady. Our investments in companies hit hardest by COVID is now starting to return well. Furthermore, we've lined up our portfolio with biotech companies with high-likelihood catalysts which will help us maintain our above-market returns. As usual, don't ever hesitate to reach out with questions!

    submitted by /u/boccherini-trader
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    You have $100M. What short/long term moves are you making with it in the market to become a billionaire?

    Posted: 31 May 2020 04:29 PM PDT

    You receive $100M through inheritance or lottery winnings. Your goal is to turn it into a billion dollars before you die. You can long term invest, do options, day trade, Whatever you choose. How would you personally do it?

    submitted by /u/lizeskiman97
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    Tech Crash

    Posted: 31 May 2020 11:11 AM PDT

    Is the tech bubble a legitimate concern in the near future? I've been wanting to indulge in great stocks like MSFT and APPL. I recently saw an article that only 3 sectors control the top of the S&P 500, much like in the 2000s.

    Is another bubble pop a legitimate concern or kinda like whatevs? I'm long term and if the bubble does pop I can just average down. But if it's due soon then I can just wait a bit. Thoughts?

    submitted by /u/Trilliboo
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    Intrested in Marijuana stocks

    Posted: 31 May 2020 01:54 PM PDT

    • interested I have been lurking on this site for a bit hoping that someone would ask my question. I'm new and interested in investing in Marijuana. (No, I'm not interested in becoming a drug dealer)I was wondering if you can point me in the right direction. I've joined Robinhood tried to diversify with 5 different stocks.
    submitted by /u/HannaMontana1
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    Are there good courses?

    Posted: 31 May 2020 01:10 PM PDT

    I see a lot of ads for how to trade courses on youtube when I'm watching videos on how to trade certain things. Of course I would love to pay a few hundred bucks and learn how to trade for a living and quit my day job. But I can't help but feel like they're just looking for suckers. Like they're presenting some cure all.

    How do you know if a course is legit? Do you just have to try a bunch of them?

    submitted by /u/brrr9000
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    Going against the trend

    Posted: 31 May 2020 11:33 AM PDT

    So lately , I've been going against the trending stocks on Stocktwits and I've seen surprisingly strong returns . Is it luck or there is united effort to hype the stock and then doing the opposite ?

    submitted by /u/Guled952
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    Beginner here, wanted to know what math would I need in order to do this properly.

    Posted: 31 May 2020 07:45 AM PDT

    Basically title, I am 18 years old, and would like to get into stock trading. I really dont even understand the basics (hopefully the stickied thread will help me cover those) to be honest. Once I figure those out, I'd ideally want to understand the math(will take some time I guess) that is required to have a good process in trading. However as someone who's literally just gonna enter uni (mech engineering,dont ask why) I have no idea where to start at. Any ideas? Thanks!

    submitted by /u/Guzuzu_xD
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    What’s the best investment you’ve ever made and why did you make said investment?

    Posted: 31 May 2020 11:12 AM PDT

    I've started investing recently and by far mine was buying DKNG at $18.

    I'm trying to make sure every purchase I make has strong DD behind it so I'm looking for some inspiration from you guys.

    Thanks :)

    submitted by /u/Vainzilla
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    CBOE vs NDAQ

    Posted: 31 May 2020 10:55 AM PDT

    Can someone explain to me why NDAQ has outperformed CBOE in the past month after the two basically had the exact same 12 month chart prior to the last 30days? Given the volatility in the market, active trading accounts increasing at extremes levels and especially in the Options Market. If any company in the US deserves to be trading at a 12 month high it's CBOE.

    submitted by /u/BigNelly1985
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    I'm another guy trying to take trading "seriously", fake information is all over the place so can we use this as a post to clear it up.

    Posted: 31 May 2020 03:04 PM PDT

    To start off, I don't believe in "getting rich quick" and i'm aware I'll need to put in months of practice into a new venture like this.

    From my research, I consider day-trading to be borderline gambling. If there is a way to learn day trading (not Youtube gurus) can someone help me find books or other resources.

    What platforms do you guys recommend for trading stocks and/or crypto?

    What is your opinion on Value investing and are there any books you recommend for clueless newbies like myself.

    ​

    Thank you, i'm looking forward to read your feedback.

    submitted by /u/kangodafi_1
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    Livestream Tonight, 5/31/2020 at 7PM Eastern in the Official /r/StockMarket Discord: Scanning for Short Term Trading Ideas

    Posted: 31 May 2020 08:58 AM PDT

    Isn't it obvious market going to crash again?

    Posted: 31 May 2020 07:50 AM PDT

    Rookie here with a probably really dumb question. Isn't it obvious the market is going to crash again because of the unavoidable 2nd wave of corona? With all the protests going on and pre-mature opening of public spaces, a second wave seems inevitable, especially when there are still 1+ million cases active. The virus spread like crazy even since there were ~10k cases so when there are this many, I can't see how it wont. So, all the bailouts that have caused the recovery of most airline stocks etc will just go back down again. I am just trying to make sense of all this, but to me it seems a very logical theory. Or I might be not seeing something.

    submitted by /u/randazvan
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    Thoughts on My Portfolio

    Posted: 31 May 2020 07:54 AM PDT

    Equity 70%

    1. HSBC MSCI World UCITS ETF (GBP) (HMWO) (85%)
    2. ISHARES III PLC MSCI WORLD SMALL CAP UCITS USD(GBP) (WLDS) (15%)

    Commodities (10%)

    1. Gold Bullion Sovereign Coins (5%)
    2. iShares Physical Silver ETC (SSLN) (5%)

    Cash 20%

    I chose HMWO and WLDS because I want to 'own the world'. They give me diverse global exposure to large, mid, and small cap. Together they give my c.60% exposure to the US.

    Should I add iShares Core S&P 500 UCITS ETF USD (Acc) (GBP) (CSP1) to give me greater exposure to US large cap because it seems to dominate everything? I was thinking of reducing the proportion of my portfolio that I have in cash (down from 20% to 10%) by buying enough CSP1 to give me between 65% and 70% exposure to the US. Do you think the US market is going to be increasingly volatile over the next 6 months (coronavirus, 2020 Pre. Election, US-CN relations falling apart and the coming of Cold War II (if it isn't already here), and the race riots)?

    I hold physical gold because it is the ultimate safe haven, a good hedge, and I will always have it if there is a major crash and if SHTF I can barter with it! Seems like US-CN relations are going to breakdown much further. The dollar's dominance will be challenged. Gold will rise...

    Silver is at an all-time low, especially when compared with gold. It's also a good hedge.

    I don't have any emerging markets because China dominates these. I think China will be hurt much worse than the US in Cold War II. Also, I think India-China relations will breakdown further as India rises. And India is not very stable internally. Also, places like India and Latin America have not yet seen the worst of coronavirus so now probably is not a good time to be investing in them in any case.

    I'm 27 years old and currently studying (I will finish next year).

    Really keen to know what you all think...

    submitted by /u/ApprehensiveAffect2
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    BK MONTREAL QUE/MICROSECTORS U S

    Posted: 31 May 2020 06:35 AM PDT

    Hey guys I was wondering if you could help me on this. Do you guys know if NRGU ( BK MONTREAL QUE/MICROSECTORS U S ) pays out a dividend ? They reported their earnings on the 27th of May. It shows they do pay a dividend but I haven't seen mine. Thanks in advance guys.

    submitted by /u/shipboatx
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