Investing/Stocks

[Carlin]

The New York Stock Exchange is temporarily closing trading floors and moving to fully electronic trading next week to prevent the spread of coronavirus, exchange operator Intercontinental Exchange Inc (ICE) said Wednesday.

The announcement comes shortly after the NYSE sent an update to traders informing them that two people — a member of the trading floor community and an NYSE employee — tested positive for COVID-19, the illness caused by the novel coronavirus.

The NYSE had implemented coronavirus screening procedures for anyone wishing to enter the building. Both individuals who tested positive were screened on Monday and not allowed to enter the building.

https://www.cnn.com/business/live-ne...920/index.html

[Gocka]

It might be a good play to invest in some Chinese companies, it seems China is stabilizing while the rest of the world Is yet to hit the peak of the crisis. China may be the only major country able to operate at full capacity for a couple months. I'm looking at Alibaba, JD, and a speculative hail Mary on Nio given its recent fall after earnings.

[Phoenix]

Originally Posted by Gocka

It might be a good play to invest in some Chinese companies, it seems China is stabilizing while the rest of the world Is yet to hit the peak of the crisis. China may be the only major country able to operate at full capacity for a couple months. I'm looking at Alibaba, JD, and a speculative hail Mary on Nio given its recent fall after earnings.

Gocka, this is an extremely difficult period as we navigate our way through the zombie apocalypse...those with cool heads, patience and rationality will make a killing at the other end of this crisis...stick to a plan and stick to homework, research and investment fundamentals...hold your nerve and look for opportunities...you’ll probably never beat the market but once it starts rising again (and it inevitably will) be prepared (cashed up) to jump on and hang on for dear life because it will rocket back up...you still need to be thinking longer term...

[Carlin]

Dow futures fell 5%, while the Australian benchmark -- the S&P/ASX 200 -- fell as much as 8.5% to an eight-year low when markets opened Monday morning.

[Carlin]

Historic $2-trillion stimulus deal reached

(CNN) The White House and Senate leaders struck a major deal early Wednesday morning over a $2-trillion package to provide a jolt to an economy struggling amid the coronavirus pandemic, capping days of marathon negotiations that produced one of the most expensive and far-reaching measures in the history of Congress.

"Ladies and gentleman, we are done," White House legislative affairs director Eric Ueland said right before 1 a.m. after leaving Senate Majority Leader Mitch McConnell's office following negotiations that have gone around the clock since last Friday. "We have a deal."

[Gocka]

This stimulus is bullshit and a complete waste of money. It will prop the stock market for a week to allow an orderly exit. It will give handouts to huge corporations that are likely to go bankrupt anyway. It will give handouts to millions who are still working while leaving out millions who are self employed. Some people on unemployment may even get more in unemployment than they did at work, while many won't qualify for unemployment.

Companies who get bailout funds are barred for only a short time to do stock buy backs. No caps (I think) for CEO pay for a company who takes bailout funds.

2 trillion down the toilet and we will be back at square one in 2 weeks.

[Phoenix]

Originally Posted by Gocka

This stimulus is bullshit and a complete waste of money. It will prop the stock market for a week to allow an orderly exit. It will give handouts to huge corporations that are likely to go bankrupt anyway. It will give handouts to millions who are still working while leaving out millions who are self employed. Some people on unemployment may even get more in unemployment than they did at work, while many won't qualify for unemployment.

Companies who get bailout funds are barred for only a short time to do stock buy backs. No caps (I think) for CEO pay for a company who takes bailout funds.

2 trillion down the toilet and we will be back at square one in 2 weeks.

Perhaps the biggest unknown and yet to be determined will be the merits of the timing of it. Worst case scenario will be if it was delivered too soon without the full consequences of the virus playing out. Unless the US has another spare couple of trillion to pump into the economy post the virus peak it may have been to soon as further lockdowns and death tolls further destroy business confidence.

The market certainly responded well to the news with the biggest spike in the Dow in almost 100 years of trading and with back to back green on the board not seen for some time...still too early to call

[Gocka]

I'm astounded by the naivety being displayed on the economic front pretty much all over the world. Leaders and even consumers have convinced themselves that after all of this that things will just go right back to normal. Countries are maxing out credit cards at a time when had Covid never happened we still would have been right at the tail end of an economic expansion and a stock market bubble especially in tech stocks. Covid actually gave a brilliant temporary excuse. After the virus passes and companies, banks, governments, and consumers begin to see the actual fallout from all of this, that is when the real pain will begin to be felt.

Many states in the USA are already on the verge of bankruptcy while the federal government ran up a 4 trillion dollar tab in just a month, a couple years after giving a 2 trillion dollar tax cut, they will probably be another 4 trillion in the hole bailing out states and potentially enacting more stimulus, and all before the second wave hits this winter.

The auto industry is on the verge of collapse and will be the first to go. Banks won't be far behind because of defaults and they will be pressured to forgive loans. Get used to the word restructuring, its going to be very commonly used in the next year.

There is no way out of this hole unless there is a massive campaign of lets just pretend none of this ever happened and that these numbers never happened and reset the clock. Of course all sides will be at each others throats before that ever happens.

They could always raise taxes through the roof, but we all know how well that's going to go over. Everyone loves the free money we got in our bank accounts this month, until they tell you that you have to pay it back, with interest.

[Gocka]

Originally Posted by Gocka

One of my speculative picks currently is "NIO", a Chinese electric car maker sometimes called the Tesla of China. They make very nice SUV's, hold dozens of patents, and have the backing of the Chinese government. Their stock is currently trading in the 2's. They just started delivery on a new model, and if they show strong demand in the next couple of months, the stock could double.

Well thank you Gocka from only 1 year ago. You made nearly 500% on that trade today, may run up a little more but its probably time to start taking profits and setting up short positions.

If anyone listened to that advice your welcome.

In the next week short TSLA. Valued more than GM, FORD, TOYOTA, and CHRYSLER Combined! Those companies sell over 20,000,000 cars annually, Tesla can't even sell 1/2 a million. Stock market is in severe bubble territory.

[Risto the Great]

I will never invest in Chinese stocks. But I understand how people can make money out of them. "Luckin Coffee" pretty much sums up China for me.