It's definitely not healthy - economists have already been saying that the stock markets no longer represent the real economy due to government stimulus.
Trading the stockmarket (NO Referrals)
- Thread starter mcast123
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Could equity actually be sucking growth out of the future economy? I mean the recession bailout/stimulus was bad enough for this. I know there's technically a prohibition on using it for buybacks this time, but I imagine that's not really going to stop them finding a way.
Im also up 6% whop whop. Though not doing so well with Central Asia Metals I brought to be your buddy lol.
My small AA is up 13%. Last time I got in at 18 and out at 29. Not as magical this time but may still sell and bank profits.
I have a feeling todays jollies will be over by tomorrow.
Soldato
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What you going to spend your £66 on?
My thesis on CAML is that it is a cyclical business, tied closely to infrastructure projects and copper price. It also has a healthy dividend. It has been as high as 250p per share, and if anything the business is in better shape today (less debt, better production capabilities etc).
Unfortunate that global infrastructure projects are on hold, but I can legitimately say I've never lost a minutes sleep over this co. But of course, all shares can surprise us!
I know for sure that I'll be closing most of my positions and probably reducing my holdings in some ETF's in advance of the furlough scheme ending.
I think that will be when the penny (and stonks) might drop...
Was speaking to the girlfriend the other day about wanting to put money into Greggs or Wetherspoons. I didn't, thinking if Greggs gets below 1600 then it'll be a good entry point.
Shoulda woulda coulda!
I’d be genuinely shocked if you didn’t have another opportunity with GRG to buy lower. This flurry of excitement is just that - excitement about shops opening etc. If there is reduced footfall (likely), and their margins are therefore affected, the trading statement will probably be ‘bad’.
Overall however, I think it’s a good buy at 16/17/18, and I’m looking for 20 in short order. If you are more inclined for longer-term investment, I can’t see this being a bad bet. It has gone up approx 8% in two days, and the shops (800 of them) are open tomorrow...
There seemed to be a lot of talk at the start of the week about the market tumbling back down - where's that all gone now!? I must say, I pulled the plug on monday, thankfully in the green but what could've been if I'd hung on for a few more days...
Edit: can't show the link, but basically the fed buying corporate bonds.
Basically, this. Who'd have believed this 6 months ago? Anything to pump the market for DT. You'll see he tweets when the markets soar - this is his re-election strategy. After November...who knows.
Basically, this. Who'd have believed this 6 months ago? Anything to pump the market for DT. You'll see he tweets when the markets soar - this is his re-election strategy. After November...who knows.
I didn't see the dip as badly as everyone else, though like you I was getting any itching finger based on the hysteria and sentiment. Granted 4% was still a dent and I wouldn't be naive enough to think it's done and dusted but the perspective I posted in comparison to the drops at the end of April and mid-May kept me in.
Associate
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Nah, the furlough scheme is very small in relation to the global markets, Japan has almost fully recovered helped by lower virus cases and the United States seems to be prepared to prop things up until a permanent solution such as a vaccine becomes available, low interest rates will help the move into risk based assets for the foreseeable future.
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Soldato
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No but thats familiar thinking in times of great debasement to a monetary base, this has happened many times before in lots of countries. We host FTSE but its not ours as such, its a great benefit we get so much tax and revenue from business not even involving UK. If currency is weak stocks generally balance out value lost. Since 1990 sterling halved in value and so on, FTSE doubles to stay just even.
Juding company and individual business risk is much harder, SSE is up 9% today on results. Did I have a clue it'd do that nope but I own it via an index
speaking on the basis of 2009 when they also introduced a lot of new money to replace the amounts lost to bad debt, no there will be pullbacks but it seems barring war breaking out not much can reduce the inflationary effects
Caporegime
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Anybody who drinks in a wetherspoons after this needs to take a good look at themselves. He was all for brexit. Then he told his employees to go work in asda. I can see a lot of people voting with their wallets on that one. Plus all pubs will be running on tiny capacity for the foreseeable. I see a huge jump in their numbers short term as the sheep plough in to get their first pint in several months but after that I can't see them returning to how it was before. 600K more unemplyed, businesses going bust every day, rising prices.
I honestly don't see greggs rising that much either. Numbers on the high street is going to be down. People working from home and people doing online shopping.
You need to look at companies which will grow no matter what. Supermarkets, amazon, google, tesla, etc.
I can see a major shift towards electric cars and Tesla is going to be there to take advantage. The shift to solar panels too and lots of people getting their power walls installed.
Yup, chuffed with that!
Soldato
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Despite all the spending, Trump is amassing quite the warchest he'll likely try to spend just before election to further boost the market