• Breaking News

    Tuesday, May 5, 2020

    Stock Market - Warren Buffett and the Stock Market Crash

    Stock Market - Warren Buffett and the Stock Market Crash


    Warren Buffett and the Stock Market Crash

    Posted: 05 May 2020 08:02 AM PDT

    Warren Buffett made headlines recently after his recent virtual Berkshire Hathaway Annual Shareholders Meeting.

    Buffett sold of all his shares in the major US airlines, and Berkshire announced a record quarterly net loss of nearly $50BN. Berkshire had held sizeable positions (around 10%) in the major US airlines.

    As well as this, Buffett also allowed Berkshire's cash stake to rise to a record $137.3BN from $128BN at the end of 2019.

    Clearly, as he is selling at a significant loss, Buffett believes that there is further pain ahead for the airlines.

    The GOAT is not one to fall for the sunk cost fallacy...

    Moreover, his cash position indicates that he doesn't believe that we have reached the stock market bottom yet, although he wouldn't give specifics.

    Others however are more explicitly bearish.

    The numbers are certainly not looking good...

    TRUTH 1/2:

    1640 CEOs left their posts in 2019, the highest year on record since tracking began in 2002.

    For context, there were 1484 exits in 2008 when the country was embroiled in the financial crisis.

    This trend has continued in 2020, in January a record 219 CEOs left their posts, the highest month on record.

    The economy was going to crash anyway. It was inevitable.

    However, they were afraid of massive protests against corporate greed, massive social unrest, etc so they needed a diversion that would provide an excuse.

    People will think the crash was solely due to the virus and not the numerous fundamental economic and structural issues at play.

    To highlight just a few: we've had the yield curve inversion, the repo madness, the record corporate debt, and corporations being the main source of demand for equities via stock buybacks which enrich executives that hit certain earnings per share targets.

    Last year billionaire Peter Thiel, who was part of the notorious Paypal Mafia, spoke on the dangers of American Exceptionalism. He argues that this has made America "exceptionally un-self-critical"

    Warren Buffett concluded in his virtual meeting: "Never bet against America"

    In other words, never bet against the military industrial complex to enforce American superiority and the power of the dollar as the de facto unit of exchange globally.

    TRUTH 2/2:

    As smart contracts pioneer Nick Szabo has stated:

    "Buffett's wealth can be measured less in present cash than in the future cash from the Fed he is right up there at the front of the Cantillon line to get."

    The Cantillon Effect essentially refers to the fact that fiat printing itself increases inequality.

    On a more general note, it is important to remember that, despite his gentle image, Buffett is ruthless in his craft.

    A New York magazine profile from 1991 stated:

    "Though he appears homey and guileless and cultivates a hayseed image, Buffett can be iron-fisted."

    According to a senior Salomon trader: "Warren looks like a teddy bear, but mentally is he ever tough."

    Yes, Buffett has dropped numerous gems throughout the years, but ultimately his responsibility is to Berkshire Hathaway and his own, sizeable, bags.

    Overall, it would be foolish to overlook Buffett's current cash position.

    When everything is dirt cheap and we do eventually hit the bottom, he will be flush with cash and ready to aggressively sweep up bargains.

    At the moment, it is clear that he believes these bargains are not present, and therefore it would be wise to consider the fact that we may have further downside in store...

    https://www.youtube.com/watch?v=OsAfJMNtxsU

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

    The Greatest Enemy Of Trading And Investing Success Is Yourself

    Posted: 05 May 2020 07:16 PM PDT

    Consumer debt hits new record of $14.3 trillion

    Posted: 05 May 2020 09:23 AM PDT

    https://www.cnbc.com/2020/05/05/consumer-debt-hits-new-record-of-14point3-trillion.html

    Household debt rose to $14.3 trillion through the first three months of 2020.

    That's $1.6 trillion higher than the record set in the middle of the financial crisis.

    Credit card debt actually fell during the period, helping to offset rises in education and auto borrowing.

    submitted by /u/coolcomfort123
    [link] [comments]

    Stock Watch List May 5, 2020

    Posted: 05 May 2020 05:35 AM PDT

    Good Morning, Here's My Watch List

    Gap Ups: ADVM, AKBA, AMD, BYND, CHGG, FANG, REGN, SGBX, TGTX, TREX, W, XPO

    Gap Downs: FIVN

    SPY gapping up slightly after testing the 20 day moving average and giving bulls exactly what they want to see. Nice hold of short term support levels and room for price to move until the 200 dailly oving average which is at 300. Price action was good yesterday and there were quite a few of the Gap Down ORB setup's which I mentioned in the video last week. RCL, UAL, BA were some of the stocks that gave this setup yesterday. Business as usual for active day traders. Only trade the best setups with stop and targets calculated before entering trades will help keep emotions out of the equation and help to avoid big losses. Good luck trading today

    submitted by /u/Kant_sleep13
    [link] [comments]

    DIS | Disney takes $1.4 billion coronavirus hit, sets date to reopen Shanghai park

    Posted: 05 May 2020 02:14 PM PDT

    Walt Disney Co. estimated global coronavirus lockdowns cut profits by $1.4 billion, mostly from its shuttered theme parks, but said it would reopen Shanghai Disneyland next week.

    Just three months ago, Disney was boasting about a record year for its movie studio and a strong start to the company's dive into the streaming media wars.

    In late January, the coronavirus started battering businesses across Disney's global portfolio when the company shuttered Shanghai Disney Resort and Hong Kong Disneyland.

    By mid-March, all of the company's theme parks were closed, movie theaters went dark, and television and film production was put on hold. Plus, Disney's ESPN sports network was left with no major live sports to broadcast.

    [Source: Reuters found via Beeken io]

    My thoughts

    Disney is getting hit from all sides right now. Is there light at the end of this tunnel or will they keep taking a beating? If things start to reopen in North America, you think they'd open theme parks...? I feel like the pain train will keep rolling on for some time for them.

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

    Gilead Sciences stock

    Posted: 05 May 2020 05:46 PM PDT

    I bought the Gilead Sciences stock last week when I heard the news that remdesivir had successfully results and is going to be used to treat COVID-19 patients. I thought I got a good stock because it started going up and it's the only company with a drug to help fight against COIVD-19. This week the stock is down. Does anyone think the stock will go back up again? Anyone else bought stock last week hoping to make a profit based on the results?

    submitted by /u/Sirius0077
    [link] [comments]

    Tech and health sector ETFs for 10 year outlook?

    Posted: 05 May 2020 05:36 PM PDT

    Hey guys, I'm looking to start investing for a big purchase I have in mind 10 years from now... looking for ETFs or mutual funds that could potentially deliver >10% average annual returns. Thinking FTEC for technology sector and FHLC for healthcare sectors...

    Any thoughts on this duo? Or alternatives?

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

    AMC | AMC's Hand in Its Spat With Universal Is Stronger Than You Think

    Posted: 05 May 2020 09:39 AM PDT

    The theater owner has at least one ace in the hole.

    Many studios also chose to go the VOD route, particularly with those films that had already been in theaters for a few weeks before the pandemic lockdown kicked in, such as Bloodshot, Emma, and The Way Back. But other studios including Disney (NYSE:DIS) chose to hold back the release of some films until theaters are open again.

    Of course, none of those sent to VOD had the remarkable success of Universal's Trolls, but it caused the studio to think it would be a good idea that even after the theaters open again, sending more movies directly to pay-per-view would be a good idea. AMC Entertainment had other ideas.

    Adam Aron, the theater chain's CEO, told Universal chairman Donna Langley, "AMC believes that with this proposed action to go to the home and theaters simultaneously, Universal is breaking the business model and dealings between our two companies." AMC said it will never run another Universal movie in its theaters again.

    The ace...

    Studios can't make nearly as much money going the home route as they can going into theaters first and then hitting the rental market afterward. And if they anger theater owners by bypassing them, they could find themselves shut out and with much lower total receipts.

    That's why AMC has the backing of Cineworld, which also said it "will not be showing movies that fail to respect the windows" of theatrical release before going to VOD.

    [Source: The Motley Fool, found via Beeken io]

    My thoughts

    This pandemic has changed how people are consuming media, given the time horizon before things go back to "normal" if ever, I can see some consumer habits/expectations shifting. AMC and the other theatres should expect some changes on how (certain) movies are released. But I imagine they will come to some kind of agreement...or do you think the game's changed for good and AMC are F'd long term.

    Thoughts?

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

    Airlines short term bet

    Posted: 05 May 2020 01:13 PM PDT

    In Europe they're talking about opening borders again and some countries already have. While this may not mean much to air traffic, it is a step in a direction that may. Meanwhile, Buffett's decision to sell all his airline stocks and his announcement about it the other day hit hard and most of them fell about 10 %. I imagine they will stay flat for a while now and probably continue downward mildly but when big, good news come, I expect them to spike at least 30 % because so many people have their eye on these stocks. If that turns out to be true then that would be a nice short term profit to get. In the long term I'm not sure I would go for them because it seems like it will be so long before they will recover. But a few spikes are bound to happen short term, as have been the case the past 30 days. What do you guys think?

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

    Question about the %’s they use in stock market

    Posted: 05 May 2020 08:12 PM PDT

    So why does everything start from 100% when dealing with shares like let's say your shares opened at 17$ why is 17$ is known as 100% what I'm asking is why does it start from a 100% please help! This not might be the place to post this but I'd really appreciate it if someone explained this to me thank yousee

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

    Long position, div stocks, DRIP

    Posted: 05 May 2020 06:52 PM PDT

    So I'm a bull/long buyer, like 15/20 year buyer. If a company pays say $2.00 a share dividend per year don't I make out better if the stock is low priced as opposed to higher? If I get to buy shares with my .50 quarterly div and the stock is at $25 isn't that better for me than if the div is .50 a Q and the stock is at $70? Am I figuring this correctly? I should want it to stay down for most of my investment then run up when I'm ready to cash out, right? What am I missing?

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

    cybersecurity

    Posted: 05 May 2020 03:03 PM PDT

    I want to invest long term in the cyber security industry. My reasoning behind this is I believe as everything becomes more, more, and more digitalized we as a society are just kind of going to be banking more on cyber security and we are waiting for the next big hack or whatever whether that is through means of warfare or not. My conundrum that's going on is I'm trying to decipher whether a hack would diminish the industry because the product isn't working or would bolster the industry because there is greater demand for cybersecurity.

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

    Why is NAT tanking this now?

    Posted: 05 May 2020 06:35 PM PDT

    So I decided to buy 200 shares of NAT when it was 6.92 and thought this will go back up. Is there anyone else in my boat? And should I keep it and wait or sell it before it drops even more. This is my first rodeo in this stock trading thing so I'm kind of nervous.

    submitted by /u/dark-divinity
    [link] [comments]

    [Discussion] Disney earnings report to release aftermarket today

    Posted: 05 May 2020 12:05 PM PDT

    What are your thoughts on Disney after its earnings report is released today after the market closes? Their price has really fluctuated between $100 and $110 for the most part post-covid.

    Those who have shares- buy and hold?

    Those who don't- what price are you waiting for?

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

    DLB Dolby Laboratories

    Posted: 05 May 2020 05:56 PM PDT

    Don't see many people mention this company, but they are involved in so many areas from gaming, cinema, av tech, and vod boxes like Apple TV.

    One obvious downside is the dying of actual cinemas using Dolby Atmos sound and huge speaker setups.

    2 thoughts... 1.the evolution of home theaters into the next 5 to 10 years. This VOD movie trend mixed with steaming could bring even more Dolby tech into the home for years to comes. Not to mention new gaming console generations and explanation of VR/3D audio tech. Dolby Atmos is known as "4K" for audio, I see this tech only explaining into more homes as a premium home viewing experience becomes the norm. 2. Maybe we end up in a situation where true cinemas become very specialized and offer exclusively IMAX level quality or above for a very premium experience. If Theaters don't die I see it as just a plus but I don't feel Dolby is reliant on them in anyway. But if they stay around I believe they will need to keep upgrading there experience to our class what people have in their home.

    In there earnings call they spoke about haven't a billion dollars of cash and no debt. Plus many growing sectors and a decent dividend.

    Give me any thoughts I have about them! For the record I'm a audio engineer so maybe I'm biased at thinking premium audio experiences are important to people.

    submitted by /u/larrys-davids
    [link] [comments]

    Found a free version of the S&P Oscillator (Legit?)

    Posted: 05 May 2020 05:09 PM PDT

    http://www.onewall.com/homepage.nsf/DocView?Open&UNID=b00b833a682e5d2385256e5a000f4767

    I believe to have found a website which charts the S&P Oscillator for free. Pretty sure it's legit, but I can't find another source that doesn't have a paywall in-front of it. I can't validate this free version without paying for another version. Who here can help me validate this? Thanks in advance.

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

    $VISL high ceiling?

    Posted: 05 May 2020 09:20 AM PDT

    Lot of fluidity with VISL. I'm buying in today. Keep your eye on it today and tomorrow. Also MVIS investors, should I buy a red or black McLaren when MVIS reaches the moon?

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

    will i get my tx dividend?

    Posted: 05 May 2020 04:48 PM PDT

    submitted 17 hours ago by mirawiel33

    https://www.theglobeandmail.com/globe-investor/investor-education/hey-how-come-i-didnt-get-my-dividend/article4583584/

    this link says you must buy shares 3days before record date

    i thought only exdiv date mattered

    https://www.nasdaq.com/market-activity/stocks/tx/dividend-history

    here it shows record date is 1day after ex div

    i purchased tx on april 28

    submitted by /u/mirawiel33
    [link] [comments]

    Newcomer here

    Posted: 05 May 2020 04:20 PM PDT

    Hey I'm 21 and always had an interest in stocks and what not. I currently have about 2100 in s&p 500 mutual fund for over a year and half where I put 50 in every month and dividends and gains are reinvested. Now that's great and all but it's super long term until I should even consider drawing money out of that. I just know with the today's current stock market and things just being weird in general with the economy I wanna get some skin in the game for some long term stocks/etfs and some short term trades as well. Does anyone have some advice on where to look to right now for either long term or short term? Any feedback is great

    submitted by /u/ChineseVirus24
    [link] [comments]

    Noob question: GE stock

    Posted: 05 May 2020 07:11 AM PDT

    Just a quick question about GE stock. With all of the bad news GE has atm, is it just good Q1 earnings and low stock price that is causing the spike this morning?

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

    When to sell (MRNA)

    Posted: 05 May 2020 02:43 AM PDT

    Hi there guys... looking for some guidance and or enlightenment on when I know or think I should sell my stocks. I been think a lot about Moderna lately and really stuck on what I should do with it. I bought 65 stocks at around $23 on March 12 and it's now currently at a little over $50 (as I'm sure y'all might know already). I just am truly stuck and don't know what I should do and was hoping y'all can help me make a decision.

    I'm open to anything and truly am appreciative for any answers or wisdom yall may provide. Thank you 🙏🏼

    submitted by /u/djb-red
    [link] [comments]

    Abbott Labs Eclipses 1.4 Million Rapid Coronavirus Tests Shipped Across U.S.

    Posted: 05 May 2020 08:26 AM PDT

    https://www.forbes.com/sites/brucejapsen/2020/05/05/abbott-labs-eclipses-14-million-rapid-coronavirus-tests-shipped-across-us/#4f4012464f0c

    $ABT fell about 12% from ATH, meeting resistance at 88.5 and is now trading at 92.1. I think with trump's federal mandate for using their products that we could revisit ATHs by EOM. Last week had 1m tests shipped, at a rate of 400k tests/week we're looking at 3m by EOM and 5-6m by June.

    "We have shipped nearly 1.4 million of our rapid ID NOW tests to all 50 states, Washington D.C., Puerto Rico and the Pacific Islands," Abbott said in an update posted on the company's website Monday night. "The majority of these tests have been sent to outbreak hotspots and we've asked that customers prioritize frontline health care workers and first responders. We're currently manufacturing 50,000 tests per day, plan to increase ID NOW manufacturing capacity to 2 million tests a month by June and are working to expand beyond that."

    submitted by /u/Wendysmanager24
    [link] [comments]

    My pick of the best ETF to invest now

    Posted: 05 May 2020 12:21 AM PDT

    • I wanted to continue my thought on why investing in top valued (market cap) companies is a good idea
    • Examined notable ETFs that hold FAMAG (FB, AMZN, MSFT, AAPL, GOOG)
    • Compared pros and cons of select ETFs
    • Compared performance of those ETFs
    • It depends on your investment style, but seems like QQQ, MGK, VUG, or just owning FAMAG are all good options.

    More details can be found: https://themetareview.com/my-pick-of-the-best-etf-to-invest-now/

    submitted by /u/The-Meta-Review
    [link] [comments]

    No comments:

    Post a Comment