Posted on 08/24/2020 6:59:19 PM PDT by Hojczyk
Futures are up again tonight
Is Wall Street secretly helping Trump??
Or will there be a big crash come election time?
There has been no real pull backs since the low??
Maybe time to sell before October??
This is like the virus insanity
Are you guys nuts? :-) the federal government just pumped six trillion dollars into the United States. Where else are they going to put it, the individuals?
if a solid market is built on $600 a week unemployment, stimulus checks out of nowhere, free money for businesses, and the FED injecting trillions then yeah we’re set
Bingo winner winner chicken dinner. Interest is at near zero. They could run to 4% before u might consider leaving the stock market.
The big tech stocks are driving the market averages. Take those stocks out of the mix and the market averages would look much different.
They all arent going up at same time. Example..goldman..up today..but because money got rotated out of some tech.
I margined the hell out of my stock account in March and April and have already cashed in a 25% return. I still have serious margin in play until January as most of my plays have only come back about 60%.
Majority of my returns have been on call options against Index ETFs (SPY mainly & QQQ a bit). My next play will be Russell ETFs as they have yet to recover.
The Fed printed many trillions. It had to go somewhere fast.
I went to buy a clothes dryer Friday. Very, very limited supply. Awaiting the Whirlpool the wife chose, projected resupply date of 9/22. In any store look at the depleted stocks. Once the scam’s lockdowns are all rescinded it will be a huge quarter just filling supply holes.
Are people eating less?
Are people consuming less goods and services?
Are people not working?
The answer to all three questions is a resounding NO
Many companies are having record profits. Nobody's going hungry. Everybody's buying stuff from Amazon.com and other online places. The delivery trucks are everywhere. Almost everybody's still working, except maybe at home instead of in the office.
Commercial real estate and restaurants are taking a beating. As well as the entertainment industry.
Most other industries are thriving.
Salesforce, Amgen and Honeywell added to Dow in major shake-up to the average
“If you already have long term gains, and you are afraid stocks will crater with a Biden win, why not sell now?”
That’s not free either - uncle Sam wants a piece of that action. 20% on long term gains quite a bit more on short term. And it’s always tricky trying to time when to get back in.
I didn’t sell when the plague hit, or when the subprime hit and I’m glad I didn’t. My portfolio quickly recovered to more than where it was at the start of those events.
Of course I understand that hedging costs money and the timing of buying and selling is also tricky.
But I might buy some SQQQs calls just as a bit of insurance, given the leverage involved. It’ll be nowhere near a full hedge, more of a bit of speculation. Might help relieve some of the pain if Plugs wins.
You want a crash? Vote RAT.
“Maybe time to sell before October??”
only if you truly believe biden is gonna win, otherwise you’ll miss some big gains when the market explodes when donald trump is re-elected ...
“I’m trying to figure out how to best hedge in case the Rats win.’
by some PUT futures on one of the major indexes that expire in December or next Monday ... if Trump wins, you’ll lose the value of the PUTs, if biden wins, then you’ll make money on the PUTs to offset your stock loses ...
“Weren’t we told Wall Street endorsed Biden? “
that came from an entirely fake wall street journal article ...
that expire in December or next JANUARY ...
Hi.
Simple answer. Cheap money.
Look at your return on savings account and certs of deposit.
5.56mm
“by some PUT futures on one of the major indexes that expire in December or next january ...”
I’m leaning more toward buying at the money ($24) December calls of the SQQQ. It’s a triple inverse on QQQ. And I’d pay for the premium by selling december $10 SQQQs puts.
That means if the Qs drop 20%, in case Plugs wins, I’d make triple that (60%l. On the other hand, if Trump wins, the Q’s would have to go up by 20% in order for my puts to get exercised. I doubt that they would go up that much, since a Trump win would be an extension of the status quo.
What good are stock market profits if you never cash out and spend the money?
Taxes are unavoidable unless you have a Roth IRA.
I have those but can’t put millions in Roth. So most of my money is in variable annuities where money grows tax deferred and there is no RMD.
$10 Trillion in new money since 2008 has to go somewhere, and most of it is going into stocks and real estate. Not much going into savings accounts or CD’s that is for sure!
“Bubblicious!”
https://fred.stlouisfed.org/series/M2
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