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      04-13-2020, 02:55 PM   #397
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Originally Posted by Jordan's World View Post
I'm no expert, but when the fed pumped 1.5 trillion into treasury securities on March 12th, we saw 'the bottom' on March 18th. Couldn't this imply an artificially inflated market for the past month? Would explain the prior 2 week rally with no apparent good news in sight.

https://www.forbes.com/sites/sarahha.../#1d8289c66adb

Maybe the fed's injection is wearing off and we will re-test lows?

Just speculating.
This market has been artificially inflated for the past 10 years. The Fed just doubled down from $4T to $8T on the balance sheets.
lol yep... someone gets it
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      04-13-2020, 03:06 PM   #398
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lol yep... someone gets it
I just wish I could figure out how this is all going to end. The COVID-19 stuff is noise. The recession that we are in should recover nicely. But what the hell happens when all that debt goes bad? Some really weird times we are in. It would be awesome if that $8T had found it's way into the economy. Inflation would be a problem but rates would be sitting above 5% and not down at 0%. Most of the money seems to have ended up in the market in the form of corporate debt and stock buybacks. That doesn't help anyone.

This is not going to end well but for the life of me I cannot figure out how it ends or what to do about it.
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      04-13-2020, 03:07 PM   #399
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This market has been artificially inflated for the past 10 years. The Fed just doubled down from $4T to $8T on the balance sheets.
That's true as well. But what do we do about it?

Nothing. Maybe try and play their game to pick up the crumbs?

I've done pretty well for myself, and I'm frugal with my money. And if I can leave my daughter better off than I am after I'm gone, I will do all I can to accomplish that.

Who knows what she will face later.
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      04-13-2020, 03:11 PM   #400
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That's true as well. But what do we do about it?

Nothing. Maybe try and play their game to pick up the crumbs?

I've done pretty well for myself, and I'm frugal with my money. And if I can leave my daughter better off than I am after I'm gone, I will do all I can to accomplish that.

Who knows what she will face later.
Precisely. I don't have the answer. I'm just sticking to my 60/40 portfolio and hoping for the best. Might work an extra year to get my probability of success up to 100% in firecalc.
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      04-13-2020, 03:23 PM   #401
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Can't say I know what Starwood is. Also Morningstar is putting Marriott at $120 fair value.
Starwood group was Sheraton, Westin, The W, and a few other brands that Marriott purchased 1 year or two back. Wondering if that left them low on cash reserves to ride the storm out.
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      04-13-2020, 03:37 PM   #402
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Quote:
Originally Posted by Jordan's World View Post
I'm no expert, but when the fed pumped 1.5 trillion into treasury securities on March 12th, we saw 'the bottom' on March 18th. Couldn't this imply an artificially inflated market for the past month? Would explain the prior 2 week rally with no apparent good news in sight.

https://www.forbes.com/sites/sarahha.../#1d8289c66adb

Maybe the fed's injection is wearing off and we will re-test lows?

Just speculating.
In normal times, yes.
The Fed has just lately made a big deal of saying they will prop up the economy, no matter what!
Will they; can they?

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      04-13-2020, 03:40 PM   #403
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Originally Posted by corn18 View Post
This market has been artificially inflated for the past 10 years. The Fed just doubled down from $4T to $8T on the balance sheets.
JFC, didn't know all that. So, how long has this hyperinflation been going on then? Is it only when things are getting bad that the fed wants to prop it up? Or whenever wall street needs it?

All so alarming. Makes me want me to stay cash and invest in myself.
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      04-13-2020, 03:48 PM   #404
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Originally Posted by Jordan's World View Post
JFC, didn't know all that. So, how long has this hyperinflation been going on then? Is it only when things are getting bad that the fed wants to prop it up? Or whenever wall street needs it?

All so alarming. Makes me want me to stay cash and invest in myself.
There is no inflation. QE was meant to prop up the economy after the crisis in 2009. Then the Fed was supposed to burn off their balance sheet and the stock market didn’t like that so they chickened out. They should have burned it off, tightened liquidity and drove rates back up to 5-6%. Sure the market would have suffered but so what? As it sits now we are looking more like 1929 than any other time. As much as I hate cash, I have some right now.
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      04-13-2020, 03:55 PM   #405
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Quote:
Originally Posted by Jordan's World View Post
I'm no expert, but when the fed pumped 1.5 trillion into treasury securities on March 12th, we saw 'the bottom' on March 18th. Couldn't this imply an artificially inflated market for the past month? Would explain the prior 2 week rally with no apparent good news in sight.

https://www.forbes.com/sites/sarahha.../#1d8289c66adb

Maybe the fed's injection is wearing off and we will re-test lows?

Just speculating.
This is part of the relief rally.

JPM/WF/Citi/BofA all report earnings this week. It'll give investors a good look to the extent that the bank are hurting. I don't think it'll be pretty.
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      04-13-2020, 03:57 PM   #406
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Originally Posted by Jordan's World View Post
JFC, didn't know all that. So, how long has this hyperinflation been going on then? Is it only when things are getting bad that the fed wants to prop it up? Or whenever wall street needs it?

All so alarming. Makes me want me to stay cash and invest in myself.
I'm just glad to see people your age with an interest in this. I say that as I read your still in school. My daughter is 23yo.....and she is getting into all of this as well and tring to learn.

Kudos to you. It gives me hope.
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      04-13-2020, 03:57 PM   #407
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I wouldn't be investing in anything right now ......but that's just me. I would at least wait a few months (if not longer) for things to at least stabilize.
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      04-13-2020, 03:58 PM   #408
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Originally Posted by Bimmer Nerd View Post
This is part of the relief rally.

JPM/WF/Citi/BofA all report earnings this week. It'll give investors a good look to the extent that the bank are hurting. I don't think it'll be pretty.
Exactly what I was talking about in the other post. That's when the bandaid comes off.
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      04-13-2020, 04:16 PM   #409
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I'm just glad to see people your age with an interest in this. I say that as I read your still in school. My daughter is 23yo.....and she is getting into all of this as well and tring to learn.

Kudos to you. It gives me hope.
Well, I'm glad your daughter and I can give your generation some hope.

My grandpa still calls me a "damn millennial" even though I was born in 97'. Cracks me up. I tried to talk to him about the market yesterday and he stares me down and says three words "stick to school." Haha, love my grandpa.

But in all honestly, I think this is the best time for people like myself to learn, I mean everything is cyclical over time. I'd rather be apart of this debacle and gain some valuable insight. Even if that means losing a few bucks in the process.

Is your daughter investing also? Or just analyzing? Cool to see a young chick interested in the markets.
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      04-13-2020, 05:40 PM   #410
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Well, I'm glad your daughter and I can give your generation some hope.

My grandpa still calls me a "damn millennial" even though I was born in 97'. Cracks me up. I tried to talk to him about the market yesterday and he stares me down and says three words "stick to school." Haha, love my grandpa.

But in all honestly, I think this is the best time for people like myself to learn, I mean everything is cyclical over time. I'd rather be apart of this debacle and gain some valuable insight. Even if that means losing a few bucks in the process.

Is your daughter investing also? Or just analyzing? Cool to see a young chick interested in the markets.
She's investing...but through her retirement to start. She graduated Clemson with a Bachelor's in Nursing, and the hospital she's working for matches her contribution up to 7%.

She was going to start graduate school this fall....but we don't know what all will be going on then. But her job is paying for it if she keeps her grades up, and she will still have a position there although her hours will be reduced. Basically the 12 weekend shifts she had during school.

But her husband is in pharmaceuticals, and his job matches his contributions up to 5%.

They just got married last summer, and both are maxing out their 401k's.

But they are very active in the dynamics of it all. So they got to see a few months of what the market could do early on, and now seeing the downsides of it.

But they have taken from this that they have years to go....so they aren't flinching.
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      04-13-2020, 06:36 PM   #411
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Seeing some good buys emerging today. Cruise, air, restaurants and hotels all going low. Anyone agree?
Not low enough, maybe end of this week
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      04-14-2020, 02:05 AM   #412
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Not low enough, maybe end of this week
Still too early. Wait.
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      04-14-2020, 04:20 AM   #413
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Originally Posted by corn18 View Post
There is no inflation. QE was meant to prop up the economy after the crisis in 2009. Then the Fed was supposed to burn off their balance sheet and the stock market didn’t like that so they chickened out. They should have burned it off, tightened liquidity and drove rates back up to 5-6%. Sure the market would have suffered but so what? As it sits now we are looking more like 1929 than any other time. As much as I hate cash, I have some right now.
I mean if the fed has been flooding the market with cash since 2009 why would they let off the gas now? Wouldn't QE just continue throughout this catastrophe and keep the market propped up? In other words, it won’t get that bad and we should all keep investing.
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      04-14-2020, 07:52 AM   #414
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I wouldn't be investing in anything right now ......but that's just me. I would at least wait a few months (if not longer) for things to at least stabilize.
Live a little. This is when markets get really fun.
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      04-14-2020, 08:33 AM   #415
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I mean if the fed has been flooding the market with cash since 2009 why would they let off the gas now? Wouldn't QE just continue throughout this catastrophe and keep the market propped up? In other words, it won’t get that bad and we should all keep investing.
I mean damn... we really want a depression...
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      04-14-2020, 12:20 PM   #416
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I still dont see how the market can be rallying right now. Every indicator is bad, but somehow we are on the rise. The mind boggles. I am tempted to sell some and hold cash for the next dip, but would hate to miss the rise back to normalcy if we are in the mists of it.
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      04-14-2020, 12:29 PM   #417
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Originally Posted by Ngilbe36 View Post
I still dont see how the market can be rallying right now. Every indicator is bad, but somehow we are on the rise. The mind boggles. I am tempted to sell some and hold cash for the next dip, but would hate to miss the rise back to normalcy if we are in the mists of it.
Calm before the storm perhaps.
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      04-14-2020, 02:34 PM   #418
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I bought up quite a bit of Aiki for less than 70 cents a share, sold this morning right before they had their press release. Sold around $2.30ish.

Then after their PR, they announced a direct offering for 14M shares at $1.00 each.

Stock dropped to reflect the value of their offering, and I immediately put it all back in at 97 cents a share.

Lol....I was just killing time. Now if it runs back up to a few bucks a share in a few days, it was worth my time. Here is why.

AIkido Pharma Executes Exclusive World-Wide License to Broad Spectrum Antiviral Drug Platform, Includes Coronavirus
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