General Investing and Economics Discussion - No Politics

Milwaukee

Milwaukee

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Techster said:
I won't give specific stocks, but I've moved some of my allocation into companies that are strong in cloud storage and computing. The two ETFs I've moved money into have returned 60%+ in the last year.

If you look at biggest players in the Cloud space, they have some of the best returns in the technology sector.

Technology sector is pretty general, but it's technology that will still lead the way for most everything going forward. You just have to find sub sectors within the overall technology sector that have a long runway for growth.
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Why won’t you name stocks?
 

Deleted member 2897

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Two new Keith Gill updates:
1) He has stopped giving updates about his portfolio. (Sad Trombone)
2) He is formally under criminal investigation.

With regards to (2) more proof you don't F with certain people - wall street, intelligence/fbi people, or the mob. Not much difference between them all.
 
LibertyTurns

LibertyTurns

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bwelbo said:
Two new Keith Gill updates:
1) He has stopped giving updates about his portfolio. (Sad Trombone)
2) He is formally under criminal investigation.

With regards to (2) more proof you don't F with certain people - wall street, intelligence/fbi people, or the mob. Not much difference between them all.
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He pissed off the powerful. If there’s any regulation he’s violated, however slight, he’s screwed. In addition to any potential criminal violation, the full force of the federal government will be deployed to investigate him into bankruptcy. That’s how it works. He may be a hero to many, but he’s probably going to end up incarcerated, broke & likely divorced.
 
mts315

mts315

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Lotta Juice said:
You get out while you were in the green? Or ride it on down 46% today?
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I'm still riding it :cry: I bought it to hold for a couple of years to see if this all shook out. I'm not sure what happened today to cause the drop is really a negative in the long run. Definitely a shock to the system but the chapter 15 protections should allow them some maneuverability while not being sued by their creditors.

Even after today I am even on the trade and far ahead of where I was a few months ago with it.
 
RonJohn

RonJohn

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bwelbo said:
February 6th at market open? ThT was today, a Saturday.

Moving stocks up doesn’t hurt the rich, LOL. It makes the rich more rich.
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There do seem to be a few misunderstandings in that video. However, it isn't true that stocks going up only make the rich more rich. I have seen estimates that Melvin Capital lost over $6billion primarily because of the rise of GameStop. I haven't looked at reports, but I would guess that many large investors are removing short positions from their portfolios. If nobody is shorting, then you would be correct that making stocks go up would only benefit investors.
 

Deleted member 2897

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RonJohn said:
There do seem to be a few misunderstandings in that video. However, it isn't true that stocks going up only make the rich more rich. I have seen estimates that Melvin Capital lost over $6billion primarily because of the rise of GameStop. I haven't looked at reports, but I would guess that many large investors are removing short positions from their portfolios. If nobody is shorting, then you would be correct that making stocks go up would only benefit investors.
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I meant look at the breakdown of who owns stocks. The last time I looked (it’s been awhile), something like half of Americans didn’t own stocks. In other words wealthier people hold a widely disproportionate ownership in stocks.
 
RonJohn

RonJohn

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bwelbo said:
I meant look at the breakdown of who owns stocks. The last time I looked (it’s been awhile), something like half of Americans didn’t own stocks. In other words wealthier people hold a widely disproportionate ownership in stocks.
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Does that less than 50% breakdown include people who own mutual funds, or people who have IRAs, 401ks, or pensions with stock or mutual fund holdings? I could easily be wrong, but my guess is that many more than 50% or Americans have some investments in stocks even if it isn't a liquid investment directly in a particular stock.

Also, I was pushing back on the idea that people only make money when stocks go up and only lose money when stocks go down. There are some who make money when a stock goes up and other who lose money because that stock went up. That is evidenced by Melvin Capital's losses with GameStop. I have no data, but I highly believe that there are very few non-wealthy who routinely short stocks. IMHO, it would be crazy for a small investor to regularly short stocks. The possible gain is limited, but the potential losses are infinite. If a person with a net worth of $1,00,000 shorted $10,000 worth of GameStop 1 year ago they could be in bankruptcy now. Maybe I am too conservative, but that is too much exposure with too little possible gain for me.
 

Deleted member 2897

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RonJohn said:
Does that less than 50% breakdown include people who own mutual funds, or people who have IRAs, 401ks, or pensions with stock or mutual fund holdings? I could easily be wrong, but my guess is that many more than 50% or Americans have some investments in stocks even if it isn't a liquid investment directly in a particular stock.

Also, I was pushing back on the idea that people only make money when stocks go up and only lose money when stocks go down. There are some who make money when a stock goes up and other who lose money because that stock went up. That is evidenced by Melvin Capital's losses with GameStop. I have no data, but I highly believe that there are very few non-wealthy who routinely short stocks. IMHO, it would be crazy for a small investor to regularly short stocks. The possible gain is limited, but the potential losses are infinite. If a person with a net worth of $1,00,000 shorted $10,000 worth of GameStop 1 year ago they could be in bankruptcy now. Maybe I am too conservative, but that is too much exposure with too little possible gain for me.
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Well part of the second level detail in that 50% is that half of Americans have a negative net worth and don’t save anything. We have a terrible savings culture (or lack thereof). In other words, if you have a net worth of say $100,000, you are as wealthy as half the country combined. You greedy bastard! 🤪
 
LibertyTurns

LibertyTurns

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RonJohn said:
There do seem to be a few misunderstandings in that video. However, it isn't true that stocks going up only make the rich more rich. I have seen estimates that Melvin Capital lost over $6billion primarily because of the rise of GameStop. I haven't looked at reports, but I would guess that many large investors are removing short positions from their portfolios. If nobody is shorting, then you would be correct that making stocks go up would only benefit investors.
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There’s a lot of competing themes here but a nation’s wealth equals it’s gross assets minus their liabilities. Then there’s wealth distribution. Certainly the rich own a much higher proportion of the nation’s wealth than the poor, otherwise they would not be rich. As the nations assets rise, it’s hard to argue the rich do not get richer. Now some of the rich may have shorted Game Stop and their proportion of assets may have decreased, but their losses in the aggregate are miniscule. On balance, the rich are continuing to get richer.

The US has about $14T in tangible assets (real estate, natural resources, durable goods, etc) & $35T in financial assets (pension reserves, corporate equity, cash, etc). That’s $49T.

Where all the angst resides is the US claims it has $27T in debt. There’s the argument of unfunded liabilities which is another $75-150T on top of the national debt reported. Who owns that debt? Well, we all do & the poor own the same amount of the debt as the rich.

This is why it’s so important to get our fiscal affairs in order. We are disproportionately burdening the poor at the expense of the rich all the while claiming we’re trying to help the poor. You don’t help the poor by making them poorer. It’s akin to saying I’m going to improve your heath by punching you in the face.

Beware the liars. They’re lying for them not for you.
 
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