Stock Market thread

When oil prices go up, it’s bad news because gas prices—and also therefore the prices of food and other goods (due to transportation costs)—rise. When oil prices go down, it’s bad news because...we’re heavily invested in the oil industry?
 
When oil prices shoot way up, gas prices at the pump shoot up IMMEDIATELY.
Now that oil is falling, has anybody seen drastically lower prices at the pump yet?

Didn’t think so.
 

Tail Gunner

Hummingbird
Gold Member
JohnQThomas said:
When oil prices go down, it’s bad news because...we’re heavily invested in the oil industry?
No, it is bad because falling oil prices means that there is weak demand for oil because there is significantly falling economic activity.
 

22qwert22

Pigeon
Even if the market crashes 40% we will only lose like 4-5 years worth of gains and remember it tends to bounce at the bottom so a 40% drop would be translated to around a 30%. Just shows how over valued the market is. But to be honest I don't know much.

 

kel

Kingfisher
Both I and a coworker just got called by our brokerage saying we have some securities which are "hard to borrow" and that we should enroll in a program they have where we "loan" our shares to other brokerage customers looking to short sell them. He says I could earn $20-30 a day (business day, presumably) on this given my portfolio and that it's very low risk - I can still sell the securities if/when I want, etc. So, it'd be a few thousand in passive income with little-no (additional) risk.

Thoughts?
 

Lampwick

Woodpecker
Gold Member
kel said:
Both I and a coworker just got called by our brokerage saying we have some securities which are "hard to borrow" and that we should enroll in a program they have where we "loan" our shares to other brokerage customers looking to short sell them.
Which securities? There might be a good reason others want to short them so badly.
 

Lampwick

Woodpecker
Gold Member
Lampwick said:
Dr. Howard said:
SKT aka Tanger outlets. Its yielding 12%
A similar one to SKT is MAC. It's yielding 15.44%.
18.21% today. Just so that everyone's clear, these are mall REITs when there is a global slowdown on the horizon and a pandemic where everyone's afraid to go outside, let alone shop. So they're very high risk. These are not my cup of tea, but it's interesting seeing the kind of dividend they're paying.
 

Tail Gunner

Hummingbird
Gold Member
jbkunt2 said:
AYX tanked 18% today alone to $110. Time to load up?
Multiple experts say to wait a few weeks to see how things shake out. Good advice, I think. One example, from someone whose advice I respect:

Allianz Chief Economic Adviser Mohamed El-Erian said this morning as stocks cratered that we might not even be close to the bottom yet, and markets could drop 30% before finding a bottom from last month’s all-time record highs.

“This is going to be treacherous for a while. I would advise most retail investors to stay on the sidelines, not panic. There will be opportunities but they’re not now,” El-Erian said on CNBC’s “Squawk Box” while the Dow Jones Industrial Average slid 1,800 points down at the market open. Oil prices also fell more than 20% this morning while the yield on the 10-year Treasury note dipped below 0.4%.
https://moneyandmarkets.com/mohamed...dium=Email&utm_campaign=Daily-Article-Traffic
 

joost

Kingfisher
If you guys want to talk about high yield, I bought plenty of PSEC at $5/share.
Market cap is almost 2 billion.
Yield is 13%/year and it pays monthly.
P/E is below 4.36.
https://finance.yahoo.com/quote/PSEC?p=PSEC

Even if it slashes dividend to half, it will be okay for me.



Another company that pays almost 13%/year is NRZ. https://finance.yahoo.com/quote/PSEC/analysis?p=NRZ
Market Cap almost 7 billion.
P/E 11
Pays quarterly.
100 most popular on Robinhood brokerage.


One of my resilient ones is BKT. Pays monthly (almost 7%/year). Has a good track of paying dividends and during hard times it holds.
https://finance.yahoo.com/quote/BKT/analysis?p=BKT
 

NoMoreTO

Pelican
NoMoreTO said:
berenmsc said:
What are you guy's thoughts on investing in mutual funds vs individual stocks?
I go with ETFs over mutual funds
It sounds like you are new to the investment game.

I'd suggest you buy the whole index. DOW or S&P 500.

Given the current investment climate, I wouldn't sink a large amount in all at once. If you have an investment amount in mind, I would suggest only to invest 1/4 now, then wait and see. Perhaps invest another 1/4 in the summer.

Read up on some investment basics or see a financial planner. If you don't understand the stock market, perhaps put your money somewhere else or keep it in the bank. There are a lot of smart guys who work in the financial biz who don't invest in it.
 

Jaydublin

Pelican
bacon said:
@Lampwick

I agree Disney is a good buy at these levels. They recently replaced their CEO when Eisner stepped down which had hurt the stock, then the impact of corona virus on the Park sales caused the stock to go down a lot.

I think the lower interest rates will just be temporary
The Virus came first, then he stepped down. Most of America had/stil has no idea this virus is as serious as it is but he knew Disney was about to go in the shitter. He stepped down after 1 park closed down and 3-4 days before the Tokyo park closed(Obv he knew) and the cruise industry was clearly on its way to the shitter with the diamond princess mess and other ports beginning to refuse people. On top of that cancelation calls keeping the phone lines busy.

Rates won't be going back up.

This was all easy to see and worthless put contracts on everything exposed to china/travel was selling for pennies around valentines day. All up 50-100x+. Disney was one of the easiest of them all.
 

Jaydublin

Pelican
Dr. Howard said:
kel said:
Who's got dividends as high as 7%? AT&T above is one of the higher ones I know of, at 5.6%
SKT aka Tanger outlets. Its yielding 12%
Not for long.

Be careful with this high yielding stuff. The yield% is a % of the the stock price so if the stock loses 30% then the yield % spikes. In this sort of environment I would expect the yield to be cut and when that happens the stock is really going to take a hit. Even if they don't cut it for a while, who the hell wants a yield if the stock loses another 30%. I expect those outlets to go bust/get bought out btw.
 
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