Companies that this pandemic directly affects are way up. Companies that are built to thrive during this are down. Is everybody suddenly convinced we’ve overreacted?
I was thinking about you on that. I had a buy order in on Schwab at $18.01. The price got down to $17.80 when the circuit broke, but I order never executed. Still have no idea how.
Reeks of market manipulation but people who wrote options co tracts on the fucked companies a great day to buy puts if you have money
We gonna fall off a cliff in the next 4 hrs or rocket up? Staying flat seems like the only thing that can’t happen
Not technically zero since they own a third of barstool and barstool is still making money. Bigly hit to their revenue though obviously.
Options trading is going to be a heavy portion of my learning over the next month. I wish I knew more now.....have plenty of cash but am only willing to dip my toe right now.
he did. Talked about them offering ships for hospitals. Name dropped the ceo but then said we don’t need the ships right now.
They’re comfortable living on SS and pension, but one of their accounts with stocks they’re being recommended to put half in a money market for the time being. Love having to worry about old people in my life both health wise and financially, while Senators are moving around millions of dollars before the corona collapse. What a world.
Let’s assume hypothetically I’ve got fifty I’m willing to put into the market. I buy mutual funds, no single stocks. Let’s also assume we’re not at the bottom. Ten now, then another ten per week for the next month seems to be solid risk mitigation?
If they can live off of SS and pension, then any stocks are just gravy and probably for your inheritance.
I might elongate that time frame, tie it to actual bench marks (-30, -40, etc), or reduce the amount ie 2,500 per week for the next 20 weeks instead of 10k for the next 5. I think there’s some long term ramifications that haven’t shown themselves in the current prices and may not show up for 3-6 months. Shooting your wad early might not be the best thing.
This is my situation. Why mutual funds over index funds? Would like to get some extra cash into the market, but admittedly, I don't know much about it.
You can buy mutual funds that have outperformed the market. Index funds will exactly mirror the market.
Also, selling out of stocks at this point is likely not going to save them that much. Might as well let it ride to capture the upside.
But even if you slowly add to index funds, you’re capturing the low points, just not gaining as much as a mutual fund they may presumably continue to outperform?
I understand this to be the case, yes. There’s nothing inherently wrong with buying indices. They’re just going to mirror the overall performance of the market, by definition. You can choose mutual funds though that have demonstrated higher returns over market averages.
I had a modest amount of money in savings that I was being chastised for by friends in the market for letting on the sideline. I’d considered doing research and putting some in slowly in January but things up and never did. In hindsight, that was quite fortunate. I’m hoping to be able to make some gains at this point without being too risky.
Most actively managed funds do not outperform indexes over time. Asset allocation is also important. Honestly one of the best options for people looking for active management is probably BRK.B. Has obviously outperformed longterm, is trading at a tremendous discount, and you know Warren is going to pick up some sweetheart deals coming out of this like he did during/after the great recession. He is sitting on a fuckload of cash. My only concern is what happens when he retires/passes. Even then his current portfolio is pretty damn solid.
Yes it is down (the entire market is down) - that's why it is a great opportunity. Buffet is sitting on ~$128 billion in cash in the middle of a recession. His management is free. Who do you like better?
This was written back in December, but yes (relatively) Berk.B slightly underperformed the market over the last decade. I'd be curious to know if that's changed over the last month though. https://www.google.com/amp/s/www.fo...warren-buffett-didnt-beat-the-market-ove.aspx
I'm going to give you a little advice. There's a force in the universe that makes things happen. And all you have to do is get in touch with it, stop thinking, let things happen, and be the ball.
Brk typically does underperform relative to the market in big bull years, right? But they make up the difference in times like right now? That’s what i though I’ve always read anyway
Clearing firm Ronin Capital unable to meet capital requirements at CME. And so it begins. https://www.cnbc.com/2020/03/20/cle...meet-capital-requirements-at-cme-sources.html 'In yet another a sign that the turmoil in financial markets is putting extreme stress on some firms, one of the CME Group’s direct clearing firms was unable to meet its capital requirements, according to sources. The move forced the exchange to step in and invoke its emergency protocols to auction off the portfolios. Ronin Capital, based in Chicago, was confirmed to be the firm in question, according to sources.'
Ooooof Can’t wait for the r/wallstreetbets post about how they wrote too many calls against the VIX and lost their company over it
Additional sources said Ronin’s problems stemmed from positions in futures tied to the CBOE Volatility Index, or the security that tracks market volatility.