OFFICIAL STOCK MARKET AND ECONOMY THREAD VOL. A NEW CHAPTER

[noskey]

Just because it’s moving doesn’t mean something fundamentally changed. They could collapse 80% tomorrow and no one would bat an eye because based on fundamentals it’s a dead company. Only people in it are really gamblers who are tossed a few bucks into it (probably some traders too), some Reddit readers who still believe in that post, and inexperienced people who don’t understand P/E ratios and don’t read the F/S.

Like listen if you think you can make money with it because it will somehow make money, more power to you. But if the rug gets pulled up from under you don’t cry that somehow to system is flawed. You have longs and you have shorts, institutions don’t short in such a large quantity unless the fundamentals of the business are severely flawed with no future outlook.

This post perfectly encapsulates why it's important to take profits when you can. I know GME isnt a long term winner, as it stands. So I placed my bets and won, and cashed out 50 of the 60 shares i went into the casino with. Now its house money so if the company turns it around and justifies their market cap and ratios, even better! If not, well that's why we take the wins when we get them.

 

[frankmatthews]

And Robinhood halted buying the stock for what reason then if that was the end of it?

And don’t tell me it was to save people from themselves.

RH halted buying because they are a new "brokerage" and didnt have the funds to back up all the increased meme trading on their platform. When the prices got higher and higher it only made the collateral situation worse. There is conspiracy and manipulation in the markets but a lot of the stuff floating around about meme stocks is misinformation at best. There are explanations for these things, its just this new wave of retail yolo investors are under educated on the markets.

GME is up 16% because the algorithms are playing with each other over it. Theres a lot of money being made on these wide swings and a steady supply of bag holders thanks to reddit. Its just musical chairs at this point and they wont stop the music as long as the moneys still rolling in. Seasoned investors know that there isnt a legit explanation for moves and prices like this, thats when you know to stay away.

 

[cragmatic]

Just because it’s moving doesn’t mean something fundamentally changed. They could collapse 80% tomorrow and no one would bat an eye because based on fundamentals it’s a dead company. Only people in it are really gamblers who are tossed a few bucks into it (probably some traders too), some Reddit readers who still believe in that post, and inexperienced people who don’t understand P/E ratios and don’t read the F/S.

Like listen if you think you can make money with it because it will somehow make money, more power to you. But if the rug gets pulled up from under you don’t cry that somehow to system is flawed. You have longs and you have shorts, institutions don’t short in such a large quantity unless the fundamentals of the business are severely flawed with no future outlook.

The system is flawed though.

 

[cragmatic]

RH halted buying because they are a new "brokerage" and didnt have the funds to back up all the increased meme trading on their platform. When the prices got higher and higher it only made the collateral situation worse. There is conspiracy and manipulation in the markets but a lot of the stuff floating around about meme stocks is misinformation at best. There are explanations for these things, its just this new wave of retail yolo investors are under educated on the markets.

GME is up 16% because the algorithms are playing with each other over it. Theres a lot of money being made on these wide swings and a steady supply of bag holders thanks to reddit. Its just musical chairs at this point and they wont stop the music as long as the moneys still rolling in. Seasoned investors know that there isnt a legit explanation for moves and prices like this, thats when you know to stay away.

I’m still trying to understand the scope of it all and am slowly learning. If I came across aggressively JRS, didn’t mean too lol.

Again, as someone semi new to this... the understanding I do have it seems very unusual. I do appreciate the explanations.

 

[noskey]

You're jumping into the markets at the wildest time in history Dont expect to learn anything except that it's all broken and makes no sense.

 

[atlsfinest]

This may or may not be applicable to this thread but I wanted to get NT's thoughts on this:

Do any of you guys have a financial advisor? My wife and I were thinking about going with Charles Schwab or Fisher investments to handle our finances going forward.

I don't have much of a desire to day trade, play the markets or go deep into learning about crypto. I would prefer to have a trained professional help me with this.

That being said, we don't have *that* many assets. I'm paying the mortgage on our home, I own a rental property in another state, I have stock options through my job and around $150k we'd put towards investment.

My fear is dumping money into retaining a financial advisor (I hear they can have a $2000/year retainer) and not getting a return on my investment.

Would it just make more sense to put my money in index funds (like I've been doing) and call it a day until/if I hit $500k?

 

[cragmatic]

You're jumping into the markets at the wildest time in history Dont expect to learn anything except that it's all broken and makes no sense.

That about sums up what I’ve learned ... lol.

 

[biggie62]

The system is flawed though.

It’s flawed to you because you don’t have the resources. For those that do it isn’t and it can work. But small retail investors get screwed, sure. Do large companies bully new start ups? Yes.

if you are day trading stop doing it with gut feelings and actually look at fundamentals. If you stay true to fundamentals you will make money. There is no get rich quick scheme with trading. And if there was you either got really really lucky or had insider information that borderline insider trading.

 

[biggie62]

This may or may not be applicable to this thread but I wanted to get NT's thoughts on this:

Do any of you guys have a financial advisor? My wife and I were thinking about going with Charles Schwab or Fisher investments to handle our finances going forward.

I don't have much of a desire to day trade, play the markets or go deep into learning about crypto. I would prefer to have a trained professional help me with this.

That being said, we don't have *that* many assets. I'm paying the mortgage on our home, I own a rental property in another state, I have stock options through my job and around $150k we'd put towards investment.

My fear is dumping money into retaining a financial advisor (I hear they can have a $2000/year retainer) and not getting a return on my investment.

Would it just make more sense to put my money in index funds (like I've been doing) and call it a day until/if I hit $500k?

In my opinion, financial advisors are a waste of money. But that’s because in my free time I follow the markets and understand my own risk tolerance. For many a financial advisor might make sense. But also for many a mutual fund might be sufficient. It really depends do you need that feeling of someone holding your hand.

Think of it as a religious person, some need to go to church every Sunday to get that feeling or community. While others could care less about a church and any of that institutional stuff but follow the religion and believe like the others.

 

[cragmatic]

It’s flawed to you because you don’t have the resources. For those that do it isn’t and it can work. But small retail investors get screwed, sure. Do large companies bully new start ups? Yes.

if you are day trading stop doing it with gut feelings and actually look at fundamentals. If you stay true to fundamentals you will make money. There is no get rich quick scheme with trading. And if there was you either got really really lucky or had insider information that borderline insider trading.

Forgive my view point, but what you just described is the very reason the system is flawed to me.
The fact these pump and dumps are even able to happen shows that if you have the resources/capital, you can truly use it to your advantage. It shows why the wealth mostly stays where it is and the rich keep getting richer.

How Isn’t that flawed?

 

[noskey]

This may or may not be applicable to this thread but I wanted to get NT's thoughts on this:

Do any of you guys have a financial advisor? My wife and I were thinking about going with Charles Schwab or Fisher investments to handle our finances going forward.

I don't have much of a desire to day trade, play the markets or go deep into learning about crypto. I would prefer to have a trained professional help me with this.

That being said, we don't have *that* many assets. I'm paying the mortgage on our home, I own a rental property in another state, I have stock options through my job and around $150k we'd put towards investment.

My fear is dumping money into retaining a financial advisor (I hear they can have a $2000/year retainer) and not getting a return on my investment.

Would it just make more sense to put my money in index funds (like I've been doing) and call it a day until/if I hit $500k?

Put it all in $BECKY.

What draws you to the idea of Fisher...?

 

[biggie62]

Forgive my view point, but what you just described is the very reason the system is flawed to me.
The fact these pump and dumps are even able to happen shows that if you have the resources/capital, you can truly use it to your advantage. It shows why the wealth mostly stays where it is and the rich keep getting richer.

How Isn’t that flawed?

Because if you stick to a sound strategy you won’t get lost in these pump and dumps. For every trader that benefits from 1 pump and dump he misses out it losses massively on 3 more. Seriously though, no one gets rich overnight in the stock market over say a 10 year or 20 year period. Understand that a 8% return is good and if you get 20% you did outstanding.

This 40% return we had last year isn’t normal. People need to get out of this mentality and it’s mostly only the newbies that think the system is flawed that they can’t maintain that. Top hedge fund desks can’t maintain a 15% return annually over 10 years wnd somehow you as a recreational trader want to? Common man.

The sooner you understand that you are a Sunday rec league player and are going up against a bunch of lebron James’ and accept it the better you’ll be.

 

[wallyhopp]

Gme should have returned to $8-$50 range many months ago. Why so many bag holders are holding on tight will be something a movie is made out of in 10 years. The fundamentals have been removed for many stocks.

 

[wallyhopp]

It was a losing stock for 5 plus year. A true battery drain with no upside. What happened may never happen again, ever. Pandemic plus extra money plus casinos being closed. Perfect century storm thst doesn’t reflect how these markets move. Invest in crypto if you like the swings.

 

[atlsfinest]

Put it all in $BECKY.

What draws you to the idea of Fisher...?

You did master bedroom four big windows chasing out my uncle uses Fisher investments also they don't get paid on commission.

 

[fargin]

If you're not dialed in to GME, maybe you shouldn't speak with such certainty. Just because someone reads it off a teleprompter on CNBC, to fill the gap between the commercial breaks, doesn't mean "digital downloads" and "brick and mortar" aren't just hollow words and catchphrases. I'm not here to sell GameStop to you, I'm not heavily invested, but as my favorite stock guru Carbi B says: "If it's up, then it's up."

And frankly calling for a return to eight or forty bucks, you just don't know, what you're talking about... fundamentally.

 

[coolcool]

Amc is next. Squeeze gonna be epic

 

[wallyhopp]

It’s a pump and dump scene. I was reading about half of new BTC investors have a $36,000 average. Just so many bag holders. It’s really quite sad.

 

[cragmatic]

If you're not dialed in to GME, maybe you shouldn't speak with such certainty. Just because someone reads it off a teleprompter on CNBC, to fill the gap between the commercial breaks, doesn't mean "digital downloads" and "brick and mortar" aren't just hollow words and catchphrases. I'm not here to sell GameStop to you, I'm not heavily invested, but as my favorite stock guru Carbi B says: "If it's up, then it's up."

And frankly calling for a return to eight or forty bucks, you just don't know, what you're talking about... fundamentally.

Where are the Shares?

wherearetheshares.com

This is what originally got me looking into it more.

 

[cragmatic]

Also, does GameStop getting into NFT change anything ?

 

[fargin]

Also, does GameStop getting into NFT change anything ?

It can't hurt.

For the last decade the gaming industry have been earning billions on digital hats and tradable ****. But I don't sweat the small stuff, it's just part of the turnaround.

Here's where I'm at: GameStop is coming out of the pandemic with money on the books, not crippled in debt. Two years ago they bought back millions of shares and they just sold a tenth of those at a 3000% markup.

 

[johnnyredstorm]

My honest question, how do you explain a 16% day on a Tuesday , that isn’t jumping from retail investors.

If you have a legit explanation for it, I do want to hear it. I’m new to investing in general, and you seem seasoned. I know a 16% day sure isn’t normal though.

This was being priced in clearly. No clue what this means, but I can understand a long thesis at a small size based off this kind of speculation.

 

[johnnyredstorm]

Because if you stick to a sound strategy you won’t get lost in these pump and dumps. For every trader that benefits from 1 pump and dump he misses out it losses massively on 3 more. Seriously though, no one gets rich overnight in the stock market over say a 10 year or 20 year period. Understand that a 8% return is good and if you get 20% you did outstanding.

This 40% return we had last year isn’t normal. People need to get out of this mentality and it’s mostly only the newbies that think the system is flawed that they can’t maintain that. Top hedge fund desks can’t maintain a 15% return annually over 10 years wnd somehow you as a recreational trader want to? Common man.

The sooner you understand that you are a Sunday rec league player and are going up against a bunch of lebron James’ and accept it the better you’ll be.

Very well said.

the average retail portfolio should be comprised of something like this
50% large cap growth or an index fund
30% mid cap growth
15% dividend equity
5% small cap growth

owning the best companies in these classifications and letting time compound the gains for you will make you wealthy.

having said that, my account looks very different where I’d say it’s 30% large cap growth, 62% mid cap growth, 8% small cap growth and I only own individual names.

 

[frankmatthews]

It can't hurt.

For the last decade the gaming industry have been earning billions on digital hats and tradable ****. But I don't sweat the small stuff, it's just part of the turnaround.

Here's where I'm at: GameStop is coming out of the pandemic with money on the books, not crippled in debt. Two years ago they bought back millions of shares and they just sold a tenth of those at a 3000% markup.

How all that translates to a $15B is the problem.

I think what is lost on many people that are new to the stock market (not saying you are) is valuation. It seems like a lot of people find a good company, sector or story they like and assume its a good investment at whatever the current price is when they had this epiphany. The price you pay matters, the valuation you are buying into matters.

A house can be well built, in a good neighborhood and in a hot market, that doesnt mean paying 2x the list price makes it a good investment.

 

[noskey]

You did master bedroom four big windows chasing out my uncle uses Fisher investments also they don't get paid on commission.

I've got my thoughts on Fisher, and I'll leave it at that Personally I wouldn't use a money manager but that's because I feel comfortable with my knowledge and risk tolerance, and I have time to track everything I want to.