Cramer thinks Wall Street pros may be playing a game with Robinhood traders Investing |
- Cramer thinks Wall Street pros may be playing a game with Robinhood traders
- [News and Discussion] Hertz Global Holdings Inc. won a bankruptcy judge’s approval to raise up to $1 billion in new equity from a counterintuitive stock rally
- JPMorgan says stocks will climb nearly 50% as investors flee low returns in bonds and cash
- The pandemic has made large number of people speculating on the market for fun
- Jerome Powell's financial disclosure form 2019
- Buying access to Zacks’ analysis?
- Subscribers to WSJ - worth it?
- Federal Reserve hardly printed last week, only 4B$ issued for the week ending June 10th
- Robinhood Introduces Dividend Reinvestment and Fractional Shares
- Is anyone worried about a corporate debt bubble?
- Tesla gets a bearish downgrade at Morgan Stanley due to price cuts, China risk
- High Times Investor Webinar
- Negative option strike?
- Top and stable dividend ETF or stock
- I’m 24 and I’ve been looking into investing into stocks and I’ve been looking at creating a dividend focussed portfolio
- Need help investing!!
- Enphase Energy - a sunny outlook
- How to bet against market ?
- Does the Fed really care about the stock market?
- How do you monetize a side project while on a F1 OPT or H1B visa ?
- XOM shares (ExxonMobil)
- Any way to check if this pre-IPO pitch is legit?
- Investing vs Speculating
| Cramer thinks Wall Street pros may be playing a game with Robinhood traders Posted: 12 Jun 2020 07:05 AM PDT CNBC's Jim Cramer said Friday that professionals on Wall Street are taking advantage of amateur investors by bidding up beat-up but popular stocks like airlines in premarket trading. "It's a game. If it weren't securities, let's say it was monopoly, let's say it's Draft Kings ... it would be so much fun," Cramer said on "Squawk Box." "Pick a couple of stocks, you gun them in the morning, and then you hope people are stupid enough and they buy them." For the new investors: If the money is important to you and you can't afford to lose it, buy great companies, and hold them, or you WILL lose money in the long run. Trying to time the market and dance in and out of positions is like the following analogy: Imagine playing a slot machine, except the casino is watching you, and they can hit a button to make you lose when ever they want. They can also hit a different button to let you win a little, in order to embolden you so that you bet more, and then hit the button to make you loose money. [link] [comments]  |
| Posted: 12 Jun 2020 09:37 PM PDT So is Hertz now a bet that is bit safer now? Or should we stick to airlines? Edit: As others have said below;this could be one the biggest investor wipeout in the history of this country; however, there is the possibility that Hertz can surge again. So I think I will buy 10% of the original number of stocks that I wanted to buy. Will keep you updated! And feel free to continue discussing this below! [link] [comments]  |
| JPMorgan says stocks will climb nearly 50% as investors flee low returns in bonds and cash Posted: 12 Jun 2020 10:03 PM PDT Investors are still largely sitting on the sidelines after the market's epic rebound, but the low returns in bonds and cash have left them with no alternatives but to embrace risk assets again, according to JPMorgan. The firm sees a nearly 50% rise in stocks over the long term due to this shift. "Our most holistic of our equity position metrics, which compares the size of the equity universe to the size of the bond and cash universe, implies 47% upside for equities from here assuming the implied equity allocation of non-bank investors globally rises from 40% currently to the post Lehman period high of 49%," Nikolaos Panigirtzoglou, a managing director at JPMorgan, said in a note on Friday. [link] [comments]  |
| The pandemic has made large number of people speculating on the market for fun Posted: 12 Jun 2020 09:41 PM PDT Source: Wall Street Journal by Jason Zweig (behind paywall): https://www.wsj.com/articles/playing-the-market-has-a-whole-new-meaning-11591974010 : Summary for TL;DR: With the pandemic disrupting individuals' lives and the economy, a lot of people have started to speculate and trade on stocks. Their trades and speculations can be amplified by robotic trades which could cause large swings. For them, this isn't about investing, but gambling. Consider these examples
Gambling in the stock market is different from gambling in a casino. In the latter, you lose over time. In the former, you gain the longer you stay in the market. Speculating the market itself isn't a bad thing, so long as you only speculate as much as you're okay to lose. Article recommends only risking 1-2% of your portfolio to speculation. ===Full Text=== Las Vegas has reopened, and not just in Nevada. Wall Street also resembles a casino—even more than it normally does. Many stocks, especially of smaller companies in financial distress, have been bouncing around like dice on a craps table. These moves seem partly driven by people who are flocking to the stock market for the thrill of taking big risks, whether they pay off or not. Such gambling can be fun, but you should never confuse it with investing. This week, Chesapeake Energy Corp. shot up 182% on Monday, fell 66% on Tuesday and 29% on Wednesday, then rose 5% on Thursday. Hertz Global Holdings Inc. rose 115% on Monday, then sank 24% on Tuesday, 40% on Wednesday and 18% on Thursday. Whiting Petroleum Corp. soared 152% on Monday, lost 32% on Tuesday and 33% on Wednesday, then gained more than 20% on Thursday before falling back. Such wild swings are probably powered by individuals trading for short-term kicks and by computer algorithms that pick up on such trades and pile in to ride the momentum. In the old days, the little guy mimicked the big boys; right now, it may be the other way around. This isn't entirely new, of course. But by shutting down the economy, the coronavirus unleashed a new generation of gamblers on the stock market: people, mainly young men, going stir-crazy from quarantine and the lack of professional sports to bet on. They've turned to trading stocks. To these thrill-seekers, the magnitude of moves matters as much as the direction; a big loss can be as much fun as a big gain. At the WallStreetBets community on Reddit, the online platform, users are encouraged to "show off a brutal, crushing loss." When a user claimed to have lost roughly $750,000 trading options in just a few weeks last year, others posted such comments as "Goat" [greatest of all time] and "YOLO" [you only live once]. Jaime Rogozinski, who founded WallStreetBets in 2012, says the group has nearly 1.3 million members, up from 577,000 last June and 314,000 in June 2018. "They don't know what they're doing," he says, "and they don't care that they don't know what they're doing." Adds Mr. Rogozinski, "To them, there's no sense in looking at a company's balance sheet or figuring out how to do a discounted cash-flow analysis. They just regard the volatility as an opportunity for fun." Dave Portnoy, founder of Barstool Sports Inc., a digital media company, began day trading on March 23, live streaming his trades on Twitter and his blog. Recently, he says, he bought a $2 million stake in Remark Holdings Inc., a Las Vegas-based artificial-intelligence company. Mr. Portnoy says Remark's chief executive contacted him and said, "We see you invested a lot of money in our company. Would you like to learn more about us?" Recalls Mr. Portnoy with a cackle, "I was like, 'Uhh, not really, to be honest.' By the time he talked to me I was already out of [the stock]." A Remark spokesman confirms the gist of the exchange. Mr. Portnoy says he holds stocks for an average of 24 hours, selling about half his picks the same day he buys them. He says he live streams all his trading in real time, ensuring he doesn't trade ahead of his followers. Is he beating the market since he started? "I don't know," he says. "I'm probably not, because I took such a big dip in the beginning" and he had to add cash to cover trades he made with borrowed money. As of June 10, says Mr. Portnoy, he had a gain of roughly $750,000. That was about a 25% return on the $3 million he says he started with, during a period when the S&P 500 was up 43%. But he lost roughly $700,000 on June 11, leaving him with only about $50,000 in total profit on the $5.4 million he has cumulatively put into trading. In a single day, he fell back to barely breaking even. What all these new market gamblers seem to have in common is utter contempt for the system—almost any system. Misogynistic, homophobic and racist diatribes abound among these testosterone-drenched traders. "We are a comedy site with no agenda, and in an increasingly humorless world we tend to piss people off," says Mr. Portnoy. "It is what it is. People who know us know our intent is always to make people laugh." Yet, however crazy the stock market may seem, it isn't really a casino. Play most games in most casinos long enough and you're sure to lose. The stock market, on the other hand, tends to reward those the best who hold on the longest. Speculating has some entertainment value. You might learn something useful. There's even a remote chance you'll make money. But always know you're speculating. Also know that you can lose your shirt. Wise gamblers lock their wallets in the hotel-room safe and bring only as much cash to the casino floor as they're willing to lose. So pick a tiny sum you're willing to risk—say 1% or 2% of your portfolio. Speculate, if you must, only with that much. Use a different brokerage firm from your regular accounts, to keep any gambling itch from infecting your long-term thinking. Above all, if you get a yearning to join the crowd, think about whether it's a crowd you want to be part of. [link] [comments]  |
| Jerome Powell's financial disclosure form 2019 Posted: 12 Jun 2020 08:33 PM PDT Theres a lot of Blackrock ETFs (almost 12 million dollars worth) and Municipal bonds. Anyone else have some insights on this? It seems like a profound conflict of interest for Powell to have ETF's run by Blackrock and give them the autonomy to purchase billions of dollars in corporate bonds. This would give BlackRock the ability to buy the bonds of companies they own shares in and effectively work as an on demand bailout leaving all of the liability with the Fed and Powell would be a direct beneficiary. [link] [comments]  |
| Buying access to Zacks’ analysis? Posted: 13 Jun 2020 01:28 AM PDT I know that The Motley Fool is an unreliable source, but so far Zacks has seemed to be a rather credible source of information about the stock market. Would it be a good investment strategy to buy access to all of their "strong buys" and invest 60-70% of portfolio into their picks? Has anyone here done that for a prolonged period of time? [link] [comments]  |
| Subscribers to WSJ - worth it? Posted: 12 Jun 2020 05:48 PM PDT Hi everyone, I was recently thinking about getting a yearly sub to the WSJ but I was not sure if it's worth it with all the other business and investment information currently out there. For those who do/don't subscribe, what's your rationale? I am a greenhorn to investing and would like to get a better understanding of business news and potential opportunities. Is this the right direction or are there other legitimate resources that may be as competitive in this space? Thanks in advance, I appreciate your feedback. [link] [comments]  |
| Federal Reserve hardly printed last week, only 4B$ issued for the week ending June 10th Posted: 12 Jun 2020 11:08 AM PDT Source:
Sure is a hell of a coincidence that the market decides to slow down the exact same week the feds stop printing money. For comparison, throughout April about 200B was printed per week, and about 65B per week in May. [link] [comments]  |
| Robinhood Introduces Dividend Reinvestment and Fractional Shares Posted: 12 Jun 2020 12:14 PM PDT Robinhood finally allows you to use dividends from different companies and applies it for a fractional amount of the share. What do you guys think about this? It is starting to remind me of Bitcoin now with the fractional shares. Now you don't have to sell an entire share, you can sell portions of it, which makes it easier. But it takes away from traditional stock trading. Is this an improvement or just a pain? [link] [comments]  |
| Is anyone worried about a corporate debt bubble? Posted: 12 Jun 2020 12:18 PM PDT The U.S Corporate debt increased to 46.6% of GDP at the end of 2019 and the U.S Treasury has purchased an increasing amount of corporate debt ETF's. If there is no vaccine in the coming months or year could we see a recession larger than 2008? I'm curious what other people think about this. [link] [comments]  |
| Tesla gets a bearish downgrade at Morgan Stanley due to price cuts, China risk Posted: 12 Jun 2020 06:56 AM PDT Morgan Stanley analyst Adam Jonas turned bearish on Tesla Inc. shares TSLA, 0.86% Friday, downgrading them to underweight from equal-weight on concerns about U.S.-China dynamics as well as recent price cuts. He wrote that Tesla's recent rally, which has seen the stock climb more than 130% on the year, doesn't adequately reflect the potential for a deterioration in U.S.-China relations that could "disproportionately" impact Tesla relative to the other automotive companies Jonas covers, in his view. Jonas also worries about recent "strategic moves in transportation and mobility" made by big tech firms, which could represent new competition for Tesla over time. More immediately, he's concerned about challenges related to restarting the Fremont facility and recent price cuts in China and the U.S. "Risk to short-term pricing dynamics represents the entirely of our price target change today," Jonas wrote, as he lowered his price target to $650 from $680. Goldman Sachs also downgraded Tesla's stock Friday, moving to a neutral rating on the name. Tesla shares are up 1.5% in Friday trading and they've added 76% over the past three months as the S&P 500 SPX, 2.55% has lost 24%. [link] [comments]  |
| Posted: 12 Jun 2020 09:16 PM PDT Was anybody able to catch the High Times zoom call today? (5/12/2020) Was not able to make the call and can't seem to find a replay anywhere. As of now I heard about the revised deal of 3 less locations and other variables. Any more news come from it of any type of OTC or possible NASDAQ IPO? If anybody has any information on it or even just a link it would be greatly appreciated. [link] [comments]  |
| Posted: 12 Jun 2020 08:39 PM PDT So CMCM is about to pay a special dividend of 1.44, but there are currently $1 strike options available for trade. When a special dividend is made, option strike prices are adjutant they same time as the stock itself. Can some explain what happens to these options when the strike price becomes -0.44? I've tried to look for an answer, but maybe this hastened happened before? Thanks, and bonus points if there is a play to be made here [link] [comments]  |
| Top and stable dividend ETF or stock Posted: 12 Jun 2020 02:10 PM PDT Hello! Hope everyone is fine. Anyone would have a recommendation on a cheap ETF (0,3% admin fee) that provides a high return in dividend? Or any source to compare stocks' dividend and etf dividend over time? I find it extremely difficult to get clear data for free. :( Thanks in advance :) ! [link] [comments]  |
| Posted: 13 Jun 2020 01:36 AM PDT I've had several people talk to me about my age and said that I should rather focus on growth stocks. But what exactly is "focussing on growth stocks"? I'm guessing just buying stocks that have a large cash pile and room for growth ? What are peoples opinions on dividend portfolio at this age? And would growth stocks be the same in terms of compounding? And how hard is it to know when to sell growth stocks? [link] [comments]  |
| Posted: 12 Jun 2020 09:24 PM PDT First place that came to my mind for a question like this was Reddit so here it goes. I have $2k to invest after paying almost 13k of credit card and other petty debt. I have looked into several paths but I want to invest this money into something that doesn't consume a great deal of time because I still work and go to uni. What is a good investment for someone in my situation? Let's hear it [link] [comments]  |
| Enphase Energy - a sunny outlook Posted: 12 Jun 2020 08:31 AM PDT Good morning, Thanks for reading my post. I've been in the investment industry over a little over a decade and from time to time I write research piece on single stocks and fund, as well as macro market. I'm quite new to Reddit and this is my first time posting in r/investing so looking forward to any comments and feedback you can share! I will start with my thoughts on renewable energy sector and one of the stocks in it which I have been following for sometime, Enphase Energy. A bright renewable future Renewable energy has been growing at an exponential rate. Having already reached 25% of global electricity generation capacity back in 2018, renewable energy generating capacity is expected to grow further by an additional 50% through 2024 according to an analysis by the International Energy Agency (IEA) expects. Even faster growth would be possible if more favourable government policies and financial incentives can be put in place for renewable energy industry. In particular, the IEA also indicates the brightest future for solar technology as a major factor to support the growth of renewable energy, which is expected to account for 700 gigawatts (GW) of the 1,200 GW in anticipated new capacity additions through 2024. More specific to the US, despite the ongoing COVID-19 pandemic, renewable is still expected to be America's fastest growing source of electricity generator in 2020, according to the latest report by Solar Energy Industry Association. New solar installations in the US is expected to increase by 33% this year, as soaring demand by utilities for carbon-free power outweighs a dramatic decline in rooftop system orders for homes and businesses due to the COVID-19 pandemic. The solar industry will install 18 gigawatts this year which would be sufficient for support more than 3 million homes' electricity consumption. What does this mean for solar energy stocks? Admittedly It is an understatement that the stock market has seen a dramatic ride in 2020, with the bull market turning into a major bear market in record time, only for the reverse to happen in an equally shocking short time frame since the market bottomed in late March. Particularly, it is impossible to ignore that the energy sector thanks to the massive swing in oil prices caused by not only the pandemic but also the multilateral negotiation by the World's major oil producers. The issue that's worth highlighting is that low oil and gas prices can be detrimental for the alternative energy sector such as solar. After all, what do price comparisons look like if the cost of oil and gas go so low that non-carbon based energy such as solar power become ever less competitive? Many of the tax credits and other incentives for alternative energy would become much less effective. However, investing in solar stocks is typically a long term play as both consumers and investors are becoming more and more aware of the positive impact associated which ESG related energy solutions, of which solar technology would most definitely qualify. It's worth looking at the companies that are involved in generating power from these clean energy sources. Their impressive earnings surprise history makes them worthy of addition to investors' portfolio. One to watch: Enphase Energy Enphase Energy (NASDAQ:ENPH) is certainly one of alternative energy stocks that deserve investor's attention. The company has revolutionized the solar technology through its pioneering product microinverter, which is an unique semiconductor-based system that converts the energy collected by solar panels into grid-compliant alternating current (AC) power, so that the solar-generated electricity can then be easily used for household and industrial consumption, and any surplus to be channelled on to the grid for other distribution purposes. Many electricity companies would pay for electricity power that's injected into the grid from these sources, which in turn helps to reduce the utility bills for household and businesses who use this solar based energy solution. Other key benefits of Enphase's microinverter includes a simplified design to save space, and greater reliability and fire safety. In addition to microinverter, Enphase also produce other home energy solutions which can be tailor to the customer's need whilst fully integrated on one smart platform. Because of its high quality product and consistently strong operating margin over the past few years, shares of Enphase Energy saw a 600% raise from the start of 2019 into late summer, and after pulling back during the equity sell off earlier in March, it has gone up even higher up to reach $70 or so only a few weeks ago. Enphase is still expected to show revenue and earnings growth in over the coming years: its earnings growth is expected to be almost 40% from 2020 to 2021, on top of better than 40% sales growth from this year into next year, according to its latest quarterly release. What also stands out for Enphase was that a number of investment banks have upgraded their outlook for Enphase despite the potential damaging impact of COVID-19 pandemic. On March 25, around the time when the US stock market reached the bottom, Barclays issued a new Overweight rating on Enphase and raised its target price to $67, whilst the stock was trading at $36 at the time. At the end of May JPMorgan reiterated its Overweight rating and raised its target to $67 from $54. Goldman Sachs appears to be less enthusiastic as they downgraded Enphase from Buy to Neutral, However they still raised its target to $57 from $50. Why the bullishness? Enphase's current dominance in microinverter is a key factor. For more than a decade later, Enphase is by far the world's largest producer of microinverters, and a prominent player among investors focused on the renewable energy industry. Despite the technological and scale barriers, there are challenges from other companies also in the business, and new comers waiting to enter the field and play catch up as soon as one of the others demonstrates the ability to compete on the product design and pricing. In the competition for future market share, Enphase does has the advantage of size, experience, and reputation; but small companies can be nimble and flexible, whilst the larger ones have deeper pockets and will be willing to burn cash in the short term to catch up if they think large profits can be reaped in the future. Regardless of who is left standing at the end, the resulting price cuts would ensure solar based energy solutions can be even more easily accessible to consumers and business who are becoming more and more aware of the environmental needs and benefit of using solar based energy, and more willing to contribute to the generational effort to rotate toward carbon-free energy to power a brighter and greener future. Thanks for reading and let me know what you think of my post. Appreciate any feedback you may have. Stay safe. [link] [comments]  |
| Posted: 12 Jun 2020 08:57 PM PDT Hello ; I am passive investor that for past years I buy a good company stock just leave in there. Due to Covid19 , I become more active trader . I have some question I hope fellow OP can help me out. 1.) I know traditional method where we hope to buy it low and hope the market go up. How do I do opposite ? For example , how do I "trade" against market ? 2). Is that the same as contract or options selling ? Or is two different thing? I would like ability to bet for market go up? And bet for market to go down. However; I don't know how to start on short selling Thanks [link] [comments]  |
| Does the Fed really care about the stock market? Posted: 12 Jun 2020 08:51 PM PDT There have been many people saying that the Federal Reserve will "save" the stock market. However, does the Fed really care about the stock market? I have a hard time believing that they would intentionally print more money to raise equity prices. It seems that what they are focused on is reducing unemployment and improving the health of the economy, which will raise stock prices as a side effect (due to the better macroeconomic environment), but raising equity prices is never and will never be their goal. Thoughts? Does the Fed really care about the stock market? [link] [comments]  |
| How do you monetize a side project while on a F1 OPT or H1B visa ? Posted: 13 Jun 2020 12:14 AM PDT International workers/students (on F1, H1B visa) who started side-projects with the quarantine-time and canceled internship time, how are you collecting payments when you cannot register a business? Options I have found:
I've spent >4 hours reading legal blogs and going through comment sections and obscure USCIS documents to understand this much. If somebody else has done this more seamlessly, then please let me know. I looked up Unshackled Ventures, a VC firm that focuses only on H1B and F1 visa holder startups but as I said, this is a side project and not a startup. If wildly successful, this will generate a few million and not the billions that VC firms are looking for. Hence, that avenue is closed. Any help is appreciated. Thank you! [link] [comments]  |
| Posted: 12 Jun 2020 01:40 PM PDT I purchased shared of XOM years ago when they were around 81 p/s. They're down now to around 47 p/s. They still pay dividends, but I'm currently down 50%~. I'm wondering if yall think the oil market will gradually go back up (probably not to where they used to be) but I'm wondering if I should hold and sell when economies open back up where theyll undoubtably be using oil again and maybe itll be higher where I'll actualize a lesser loss. Any recommendations or projections? [link] [comments]  |
| Any way to check if this pre-IPO pitch is legit? Posted: 12 Jun 2020 05:40 PM PDT I got a cold call today from someone purporting to be from a venture capital group, trying to sell me shares in a well-known, privately held company that's possibly having an IPO this year or 2021. I have no concerns about the company, and the price is solid, but I have no faith in this stock telemarketer. If it's real, I want in. Is there a valid way to check 1) if the group is real, 2) if the person on the phone actually works with them, 3) if they actually own the shares of the private company, 4) if I'd actually be buying real, honest-to-SEC shares in it. Would the venture capital firm have to be registered with a regulatory agency? Would the salesperson have a broker ID or anything I could double-check? Could my broker (TD) do the transaction to make sure I'm not wiring money to Nigeria? Any other way I can basically check the firm's bona fides? Again, I'm not worried about the IPOing company; I'm 100% sure it is. I'm worried about whether this firm really has their shares and is really selling them to me. [link] [comments]  |
| Posted: 12 Jun 2020 03:07 PM PDT The amount of $ pouring into Hertz, Cruises, and airlines has been eye popping. I've chalked it up to speculating because these companies outlook don't reflect share prices. Just wondering if I'm blinded by something or if logic has gone out the window. Or at least it's what I'm telling myself. [link] [comments]  |
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