The stock market thread Part II (The GME Phenomenom)

McGarnagle

Yes.
Aug 5, 2017
30,343
41,621
I'm no longer in any meme stocks (unless you count my $3 of Dogecoin that I've held just for shits), but good for you if you profited off BBBY.

Ironically I'm holding $200 in Bed Beth and Beyond giftcards from my wedding registry that I need to use before they go under.
 

Neil Racki

Registered User
May 2, 2018
5,281
5,728
Baltimore-ish
Tesla -- wish I bought when it was down near 100

Chip makers ... im throwing some money blindly towards

Exxon -- such a money buy

Alibaba -- such a money suck
 

Reverend Mayhem

Tell me all your thoughts on God
Feb 15, 2009
28,696
5,831
Port Coquitlam, BC
I have a lot in Tesla because I believe in the long term vision, but Elon needs to cut the shit and get focused on product instead of toying around with twitter. I'm not looking to sell in the next few months, I'm in it for ten years from now. But yeah, my portfolio is the drizzling shits right now holding bitcoin and Tesla.

Market needs to decide if $TSLA is a car company or a software company. The cult of personality Elon created around himself is now dead. If the market decides they're a car company, I'd inverse Tesla hard. Their manufacturing is dirt cheap.



I don't know, I have friends who bought into them at $220USD. I don't think I'd play it until Elon divorces from the company indefinitely. But if you're going long on it, I would worry much less considerably. Keep buying the dip.
 

Neil Racki

Registered User
May 2, 2018
5,281
5,728
Baltimore-ish
Microchips ... risky investment w the new US regulations on China?

Bought some UMC, based out of taiwan, 2 of their 11 plants in China.

Feel like Im about to get bit like I did w alibaba ...
 

McGarnagle

Yes.
Aug 5, 2017
30,343
41,621
Up 4.5% today. 11% in the past week, 22% for the month. Signs of recovery. Still a ways to go to fully recover from last year's crash, but things are more bullish than they've been in a while for tech and FAANG.
 

yahhockey

Registered User
Jan 23, 2013
3,517
1,187
~43% of my portfolio is Canadian dividend stocks in an unsheltered account for the tax advantage. The key is to not chase yield, know the risks if you buy split-corp stocks (which I don't, but anyone can feel free to go that route if you believe it's best for your portfolio), and keep an eye on the companies in case there are major business developments that warrant the stock to be sold. Otherwise just buy, hold, maybe enable DRIP, and wait until you are old and hopefully rich, lol. It's easier than swing trading or active trading where you have to be more mindful of the stock price.
 

TheGreenTBer

JAMES DOES IT NEED A WASHER YES OR NO
Apr 30, 2021
9,941
12,173
Nobody here doing passive income investments?
Most of my assets are tied up in index funds of various types with various providers. I do no active investment whatsoever at the moment and will likely not do so going forward.

We looked at renting a house out but the laws in my area are very pro-tenant and I didn't want that hassle, so we sold the property.
 
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AstrophysicalJet

Registered User
May 28, 2008
8,298
3,111
Hornbæk
Most of my assets are tied up in index funds of various types with various providers. I do no active investment whatsoever at the moment and will likely not do so going forward.

We looked at renting a house out but the laws in my area are very pro-tenant and I didn't want that hassle, so we sold the property.
I only have passive income investments - After I sold the last of my crypto 6 years ago, I never looked back.
Also got a whole new view on debt, and have begun to view it as an asset.
 

DailyKaizen

Registered User
I only have passive income investments - After I sold the last of my crypto 6 years ago, I never looked back.
Also got a whole new view on debt, and have begun to view it as an asset.
Debt as an asset ? Now that is unorthodox and contrarian...

How so ? Help me with the mental gymnastics here please.

Surely it matters what the rate of interest that debt needs to be paid and also factoring in where that capital is allocated as in providing a higher return than said interest costs on the debt you took out right?

Us mere mortals don't have access to debt and credit like the well off do...
 
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McGarnagle

Yes.
Aug 5, 2017
30,343
41,621
Amazon getting decimated after their earnings came out pretty bad.

I bought more after it fell 7% after hours anyway.

GOOG taking a hit from missing their earnings too. AAPL reports theirs in a couple minutes.

FAANG had had a nice recovery in the last couple weeks before this, but I suspect it's more of a blip. AMZN did have some stuff that would be traditional red flags (least profitable quarter since 2014 and posting their largest loss ever or something like that), but they have their market basically dominated so I'm not fazed. Good opportunity to buy the dip TBQH.

Edit: Haven't read the numbers yet but AAPL just started falling like a knife so I'm guessing they're bad too. But whatever. They're f***ing Apple. HODL.
 

Hockey Outsider

Registered User
Jan 16, 2005
9,453
15,678
Nobody here doing passive income investments?
Around 40% of my portfolio is in stable, dividend-yielding stocks. I invested in more speculative stocks when I was younger, but I wasn't able to outperform a general index fund. (Regardless of what you read online, hardly anybody is able to do this consistently).

You won't get rich quick, but good dividend stocks will, over time, match or exceed the returns from the TSX, with less volatility. (If you're using a metric that looks at risk-adjusted returns, such as the Sharpe ratio, dividend stocks usually perform very well).

I like the fact these companies have to pay a certain amount each quarter. (Obviously that can be reduced, but that usually hurts the stock price, so management doesn't do it unless they have no other choice). It forces management to be disciplined with the shareholders' money. Being able to read and understand financial statements can help you understand if the dividend payout is sustainable.

All of my dividends are set to DRIP. Companies used to offer discounts for reinvested dividends, sometimes substantial, but that's less common these days. Still, I never touch the cash, and keep getting more shares each quarter.

For stocks held outside of sheltered accounts (RRSP, TFSA etc), dividends are taxed at a lower rate than regular income. The difference depends on which province you're in, and what your marginal rate is, but for me, the difference is around 16%. (A stock yielding a 5.0% dividend yields slightly more, after tax, than a bond yielding 6.5%). (NOTE - this paragraph is based on Canadian tax rules, I can't comment on how this works in other countries).

As I said, I don't have all of my money in dividend stocks, but it's been a good way to build wealth over time. It's not glamorous or exciting, and you won't get rich overnight, but it's highly improbable that you'll lose money (adjusted for inflation) long-term. My goal is to retire once my (after-tax) dividend income covers my annual spending.
 

PositiveCashFlow

the construction could be better
Jul 10, 2007
6,274
3,635
I just discovered the 1-1-1 trade. Key is to calendarize it: sell the naked short put at the 90DTE 5 Delta strike, and buy the put spread at the 60DTE 25 Delta strike 50 wide. Take off 30DIT, 50% profit, or if the naked short is tested, whichever happens first. Does well even in a bear market and you wouldn’t have lost your shirt in corona crash. Keep your BPR under 30% and keep your beta weighted SPY Deltas under 0.0015NLV
 

AstrophysicalJet

Registered User
May 28, 2008
8,298
3,111
Hornbæk
Debt as an asset ? Now that is unorthodox and contrarian...

How so ? Help me with the mental gymnastics here please.

Surely it matters what the rate of interest that debt needs to be paid and also factoring in where that capital is allocated as in providing a higher return than said interest costs on the debt you took out right?

Us mere mortals don't have access to debt and credit like the well off do...
A little to snarky for my taste - But here goes.

It is possible for us mere mortals as well, if we want to take risks and have the know how.

But, I will try to explain:

So, debt as an asset can be a little confusing, so let's break it down.

Imagine you borrow some money to invest in a business that you believe will generate a higher return than the interest you have to pay on the debt. If the business is successful and the return you earn is higher than the interest you pay on the debt, then the debt can be considered an asset because it has generated a positive return for you.

Think of it like a loan you take out to buy a rental property. If the rent you earn from the property is higher than the mortgage payment, then the debt (the mortgage) can be considered an asset because it's generating a positive return for you.

However, it's important to keep in mind that this strategy is not without risk. There is always a chance that the investment will not perform as well as you expect, or that the interest rate on the debt will increase, making it more expensive to service. So it's important to consider these factors and make informed decisions when using debt as an asset.

I can recommend rich dad, poor dad by Robert Kiyosaki - good read, smart man.
 

AstrophysicalJet

Registered User
May 28, 2008
8,298
3,111
Hornbæk
Let me expand a little:

Debt as an asset can be a complex concept, but it's crucial to understand it if you want to make the most of your investment strategy. Essentially, when used correctly, debt can be leveraged to increase returns. But it's important to remember that this strategy comes with risks as well.

It's also important to understand that debt is not always an asset. For instance, if you take out a loan to finance a personal purchase that does not generate any income, the debt is not an asset but a liability. The distinction between an asset and a liability lies in whether the debt generates a positive return for you or not.

When using debt as an asset, it's crucial to have a solid understanding of the investment, the interest rate environment, and your ability to service the debt. This way, you can make an informed decision and minimize the risks associated with this strategy.

In conclusion, debt as an asset can be a powerful tool, but it requires careful consideration and a sound understanding of the risks involved. Used correctly, it can help you achieve your investment goals and generate higher returns.

Hope I made it make sense - If not, the book I recommended to you, will do a better job.
 
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AstrophysicalJet

Registered User
May 28, 2008
8,298
3,111
Hornbæk
Around 40% of my portfolio is in stable, dividend-yielding stocks. I invested in more speculative stocks when I was younger, but I wasn't able to outperform a general index fund. (Regardless of what you read online, hardly anybody is able to do this consistently).

You won't get rich quick, but good dividend stocks will, over time, match or exceed the returns from the TSX, with less volatility. (If you're using a metric that looks at risk-adjusted returns, such as the Sharpe ratio, dividend stocks usually perform very well).

I like the fact these companies have to pay a certain amount each quarter. (Obviously that can be reduced, but that usually hurts the stock price, so management doesn't do it unless they have no other choice). It forces management to be disciplined with the shareholders' money. Being able to read and understand financial statements can help you understand if the dividend payout is sustainable.

All of my dividends are set to DRIP. Companies used to offer discounts for reinvested dividends, sometimes substantial, but that's less common these days. Still, I never touch the cash, and keep getting more shares each quarter.

For stocks held outside of sheltered accounts (RRSP, TFSA etc), dividends are taxed at a lower rate than regular income. The difference depends on which province you're in, and what your marginal rate is, but for me, the difference is around 16%. (A stock yielding a 5.0% dividend yields slightly more, after tax, than a bond yielding 6.5%). (NOTE - this paragraph is based on Canadian tax rules, I can't comment on how this works in other countries).

As I said, I don't have all of my money in dividend stocks, but it's been a good way to build wealth over time. It's not glamorous or exciting, and you won't get rich overnight, but it's highly improbable that you'll lose money (adjusted for inflation) long-term. My goal is to retire once my (after-tax) dividend income covers my annual spending.
It sounds like you have a well-diversified portfolio with a mix of stable, dividend-yielding stocks and some speculative stocks - I have gone completely away from speculative stocks, but that is only because my passive income investments are generating a healthy monthly profit - Enough to live by, and save for retirement. Also has to be said, that I made a very large profit on my crypto sales.

You've found (Like me) that the dividend-yielding stocks have provided consistent returns over time, with less volatility compared to the overall market - It is crazy to me, that not everyone is doing this.

You, just like me, value the discipline imposed on companies through the requirement to pay dividends. Reinvesting those dividends to grow your holdings is a smart move.

Dividends are taxed at a lower rate in Canada, but it is doable in both the US; and Denmark where I reside.
 
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AstrophysicalJet

Registered User
May 28, 2008
8,298
3,111
Hornbæk
the book can be summarized in one sentence.

"The rich don't work for money, the rich work for income producing assets that produce positive cashflow"
The book emphasizes the difference in mindset between the rich and the poor, with the central message being that the rich focus on acquiring income-producing assets that generate positive cash flow, while the poor work solely for money, so yes you are correct, even though it is extremely simplified.

You make it seem wrong though?

The book is about how to change your mindset from poor to rich, not some brag about some unreachable never ever land.
 
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Fixed to Ruin

Come wit it now!
Feb 28, 2007
24,639
28,515
Grande Prairie, AB
The book emphasizes the difference in mindset between the rich and the poor, with the central message being that the rich focus on acquiring income-producing assets that generate positive cash flow, while the poor work solely for money, so yes you are correct, even though it is extremely simplified.

You make it seem wrong? The book is about how to change your mindset from poor to rich, not some brag about some unreachable never ever land.

No not wrong at all. It's a great book and I've read it a couple of times. I agree with what you wrote i was just pointing out the TLDR summary of it.
 

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