The stock market thread.

[Ted Hoffman]

Going out on the lows. Relief rally tomorrow IMO as people try to pick through the rubble for value. I think you've got one last shot to sell and lock in gains before we finish the drop.

 

[Fixed to Ruin]

Dow plunges 3,000 points, as coronavirus market collapse continues; worst day since '87

 

[LarryFisherman]

Going out on the lows. Relief rally tomorrow IMO as people try to pick through the rubble for value. I think you've got one last shot to sell and lock in gains before we finish the drop.

assuming daddy trump doesn't decide to pressure the fed into blowing its load into further qe+negative rates. luckily all he said today is "it'll take care of itself" which is about the most reassuring thing he's said in two weeks.

 

[Ted Hoffman]

assuming daddy trump doesn't decide to pressure the fed into blowing its load into further qe+negative rates. luckily all he said today is "it'll take care of itself" which is about the most reassuring thing he's said in two weeks.

The Fed really has no other tools than to choke the economy with liquidity (hello, inflation!), drive Treasury yields negative (good luck with that), or get permission to buy stocks directly (still hasn't helped Japan after decades of it). Its best move is to stay the f*** out of the way and let the free market work for a change. It hasn't done this for at least 12 years (arguably, quite longer) and we're now seeing the unwinding of a 3rd massive bubble in 20 years.

And to everyone who thinks "when the Fed cuts rates, it's great for stocks and that's a great time to buy?" Let this serve as (yet another) reminder that it's all bullshit. The Fed cuts rates when it thinks things are bad; markets see that and say "wait, if the Fed is cutting then something is f***ed" and sell accordingly.

 

[Fixed to Ruin]

The Fed really has no other tools than to choke the economy with liquidity (hello, inflation!), drive Treasury yields negative (good luck with that), or get permission to buy stocks directly (still hasn't helped Japan after decades of it). Its best move is to stay the f*** out of the way and let the free market work for a change. It hasn't done this for at least 12 years (arguably, quite longer) and we're now seeing the unwinding of a 3rd massive bubble in 20 years.

And to everyone who thinks "when the Fed cuts rates, it's great for stocks and that's a great time to buy?" Let this serve as (yet another) reminder that it's all bullshit. The Fed cuts rates when it thinks things are bad; markets see that and say "wait, if the Fed is cutting then something is f***ed" and sell accordingly.

If you let the free market do its thing you won't get bankers getting giant bonuses or CEO using 0% interest loans to buy back stocks and push up share prices. The horror!

 

[HockeyAddict]

Air Canada looks very very attractive right now

Ouff… beware of catching falling knives.

 

[BahlDeep]

Ouff… beware of catching falling knives.

So you think the comoany is going to fold?

 

[HockeyAddict]

Its really too early to know but the major airlines (US based, Lufthansa etc) have already begun talking/asking for a bailout... IMO, you're taking a big gamble.

 

[Ainec]

anyone buying physical gold and silver? the paper stuff is cheap

also what's the Canadian preppers/safe haven equivalent of guns and ammos (don't say Toilet Paper)

 

[Ted Hoffman]

So you think the comoany is going to fold?

People thought Bank of America was a screaming buy circa October 17, 2008 with an explicit government backstop after acquiring Merrill Lynch and the stock some 57% off the late 2006 highs, even with the dividend cut in half. They got to watch the stock drop about 83% in the next 6 months and the dividend get slashed again to $0.04 a year, and didn't get back to even for over 8 years. The dividend has still yet to fully come back from even the October, 2008 level.

The point: that which is already low can always go lower. Sometimes, much lower.

 

[HockeyAddict]

So you think the comoany is going to fold?

Coronavirus could bankrupt most airlines by end of May, consultant warns

 

[Fixed to Ruin]

GM offering 0% financing for 7 years, deferred payments amid coronavirus outbreak

 

[BahlDeep]

Coronavirus could bankrupt most airlines by end of May, consultant warns

In Air Canada case, they will 100% get bailed by the Govt if this would to happen

 

[Bruins4Lifer]

Market seems to think the airlines will get a bailout if needed, hence why AAL is up.

I would be shocked if Canada wouldn't do the same for Air Canada too

 

[CrazyMonkey1208]

GM offering 0% financing for 7 years, deferred payments amid coronavirus outbreak

Time for a new Silverado

I think JetBlue is the only airline stock I'd consider

 

[Thucydides]

Air Canada has gone bankrupt before back in 2003. They easily could again. If they are bailed out by government , shareholders will get screwed.

 

[Kairi Zaide]

I'm not very good at this so far, my practice $500 turned into $425 in 2½ weeks on wealthsimple

What should i look for at opening tomorrow, I have $75 that I don't have invested right now and I could put a limit buy on something (this is the first day that I do not finish with nothing to buy at closure/opening, for once, since I've missed so many opportunities I otherwise called due to not having funds lel)

 

[LarryFisherman]

The Fed really has no other tools than to choke the economy with liquidity (hello, inflation!), drive Treasury yields negative (good luck with that), or get permission to buy stocks directly (still hasn't helped Japan after decades of it). Its best move is to stay the f*** out of the way and let the free market work for a change. It hasn't done this for at least 12 years (arguably, quite longer) and we're now seeing the unwinding of a 3rd massive bubble in 20 years.

And to everyone who thinks "when the Fed cuts rates, it's great for stocks and that's a great time to buy?" Let this serve as (yet another) reminder that it's all bullshit. The Fed cuts rates when it thinks things are bad; markets see that and say "wait, if the Fed is cutting then something is f***ed" and sell accordingly.

i'm 0% economist and mostly just a dumb idiot, but i was surprised by the quick succession of the rate cut yesterday. maybe it was an actual necessity considering our current situation, but seemed pretty obvious from a 50,000ft view that it was going to create more panic as everyone further questioned economic stability and lost more confidence. today's decimation was absolutely no surprise to me.

 

[Thucydides]

I'm not very good at this so far, my practice $500 turned into $425 in 2½ weeks on wealthsimple

What should i look for at opening tomorrow, I have $75 that I don't have invested right now and I could put a limit buy on something (this is the first day that I do not finish with nothing to buy at closure/opening, for once, since I've missed so many opportunities I otherwise called due to not having funds lel)

Stash your cash my man, and find a couple stocks you like , blue chips and watch them and when you think “they can’t go any lower” start buying and keep buying them when they go lower .

a safe investment is the vanguard total index . VTI in the USA and vun.to on the Canadian exchange TSX. It’s not a sexy stock. It’s not going to make you a million bucks , but you’ll make money on it eventually . there will be lots of stocks out there where you think “if I throw a thousand bucks at it, I could get 10:1 returns”, but you’re gambling .

we are in unprecedented times .

Stocks on my watchlist if the price is right :

apple
Microsoft
And if they fall low enough CRISPR & Beyond Meat.

 

[Kairi Zaide]

Stash your cash my man, and find a couple stocks you like , blue chips and watch them and when you think “they can’t go any lower” start buying and keep buying them when they go lower .

a safe investment is the vanguard total index . VTI in the USA and vun.to on the Canadian exchange TSX. It’s not a sexy stock. It’s not going to make you a million bucks , but you’ll make money on it eventually . there will be lots of stocks out there where you think “if I throw a thousand bucks at it, I could get 10:1 returns”, but you’re gambling .

we are in unprecedented times .

Stocks on my watchlist if the price is right :

apple
Microsoft
And if they fall low enough CRISPR & Beyond Meat.

i'll be honest, I kinda started with just $100 (as i said, I'm debuting on the stock market, I have a few thousands invested in balanced portfolios elsewhere), and with just that, I started playing with lower priced stocks, even some penny stocks. That's some gambling, and probably wasn't wise for a novice. But that's because I was appealed by all the 50+% growth on a day.

I'm trying to recoup that 75$ lost (which i would have this morning if WS wasn't so slow) and invest in some safer stuff. I thought Air Canada was decent at that price, but seems not after reading this thread (only have 4 shares that I bought at under 20$), so I'm not sure if I should just short sell tomorrow morning before losing too much off them.

I've been looking at inverse ETFs but both times they skyrocketed, I didn't have any fund to throw at them in the morning (before they went up), even though the jump was obvious. I feel like they could be the easiest way to get back that 75$ (i know it's nothing, but as I was saying, I'm kind of using these 500$ to learn more too)

Microsoft and Beyond were already on my watchlist. Not sure how to qualify "low enough". I also don't like how simplistic WS's interface is compared to, say, TD Ameritrade's platform (that I see in lots of videos), since it misses so much information. Maybe that's where I should start putting my dual screen phone at use. Are there any apps that are great to follow the market and that show prices in real time?

 

[VanillaCoke]

Because it's a commodity where a country like Saudi Arabia have too much influence on the price.

Way too much geopolitical risk. You can find way better opportunities somewhere else. Don't let the yield fool you.

In 10 years, you made no money with Energy, and that's before the market even crashes this year.
View attachment 336545

Well damn I was definitely going to buy oil

 

[Thucydides]

Are you paying commissions on the buying and selling end? So every penny it moves up you would make 4 cents and With a 9.99 fee (both ways) you would need it to go up almost 6 bucks from where you bought it in order to recoup just your commissions . And I can’t see airlines moving upwards for the next couple of months.

With 75 bucks I would probably gamble it on a biotech stock that is working to find a Coronavirus vaccine and hope you catch lightning in a bottle , but that’s just me.

good luck

if the stock market is something that does really interest you check out the book “a random walk down Wall Street” . Great place to start .

beyond meat is a steal $50 and under, IMO.

 

[Ainec]

why do you like beyond meat?

I tried the burger it's really good tbh but no moat and most of all can get meme'd to death because it's really not healthy

 

[Fixed to Ruin]

This is why our economy is so screwed up and these companies deserve nothing on terms of government assistance.

U.S. Airlines Spent 96% of Free Cash Flow on Buybacks

 

[Ainec]

This is why our economy is so screwed up and these companies deserve nothing on terms of government assistance.

U.S. Airlines Spent 96% of Free Cash Flow on Buybacks

robbing the american people

do canadian central banks and companies do this?