Trading in that size is a pretty good way to ensure you have poor returns over long periods of time simply because commissions eat up your profit.
I'm aware. I appreciate everyone's concern but I just used the Robinhood app (no trade fees or commissions) so that $5 profit was all mine.
up another half % today tons of short interest left to be covered from french election, still plenty of upside both technically and animal spirits wise with people pulling back from US equities
I like their product and think it will be viable for a long time. Not sure whats going on with the company, but seems like the stock is on sale.
Actually put a lot of our clients in etf EZU not as a core holding but just to gain some specific exposure. Nice pop after the first round of the French election and it's continued to go on a nice run. Also, at the end of last year we used Acwx as a core international holding for most of our clients. Up 14% YTD - thinking about locking in some gains there
Finally this market wakes up to the fact that our "president" is going to have a tough time getting this pro growth agenda through with all of this shit hanging over his admin
Swim has been pretty accurate about most things in this thread. Tax reform will be delayed but it will get done before the end of the year.
Can y'all speak to me more about Closed-end funds (CEFs)? https://www.forbes.com/sites/michae...-that-will-fund-your-retirement/#5bfe7e9a40e3 Saw this article after a friend was telling me about ETJ, an Eaton-Vance risk managed Equity income fund, and it's crazy distribution of dividends. Didn't realize there were so many out there, and the article even talks about diversifying your portfolio within the CEFs. I mean this chart is amazing: They spit out a ~1% dividend monthly and their price over time doesn't even seem that variable. What am I missing here? I'll openly admit I'm green at all this so I know there is a catch I'm not considering. I assume there are tax considerations in that you're making your money in dividends instead of growing stock price? Is this a good idea for certain strategies but not a whole portfolio? For instance, we have a work HSA that I invest, since it's triple-threat tax advantage of tax free going in, tax free growth and tax free coming out, so maybe I put some of those funds in there to steadily grow?
I looked at the ETJ fund you just mentioned and the top 25 holdings are almost all large S&P 500 companies and I didn't think the dividend yield should be anything like the 10% in your chart. Morningstar defines distribution yield to include capital gains which will skew your analysis a ton if you think you are getting a 1% dividend every month. If I had to guess, it got its 1 star rating from taking terrible bets, the fund company no longer cares about it and is now only investing in the largest S&P 500 companies which would make your real dividend yield closer to 2%.
most use leverage to increase the yield - and can trade at prices well above or even well below the value of the actual assets in the portfolio. Use CEF Connect by Nuveen to research the holdings, leverage, expenses and NAV premium/discount before you get too excited. http://www.cefconnect.com/fund/DMO They can also trade super thin, making it terrible to try to exit the trade. As overall market yields climb, they will get the double whammy of the loss of investor interest and therefore selling pressure - combined with higher interest cost on the leverage. Be safe out there and have fun.
the fund is a "covered call" aka "buy/write" fund - so the yield is accurate. CEF Connect does show a recent dividend cut, probably because VOL/VIX is so low, there's not much meat on the bone in selling calls. "the fund company no longer cares about it" is not a defensible response - they have a management philosophy and manage it by prospectus to that strategy - they may suck at execution and the strategy may be out of favor but I'm quite sure the fund company hasn't stopped collecting management fees http://www.cefconnect.com/fund/ETJ http://www.cboe.com/products/strategy-benchmark-indexes https://www.wsj.com/news/articles/SB10001424052748704201404574590610405342916
I just went and looked at the total return data for ETJ at CEFConnect - thru today the 5 year number is a touch over 9%... about what the current yield is. So all things being equal a buyer 5 years ago has the same share price and all their return in the form of income. Assuming held in a taxable account - take your average tax rate and subtract to get your net return - the strategy converts a lot of capital gain into taxable income, most of which will be ordinary. In a tax deferred or free account - not terrible plus you add the theoretical (and sometimes real) benefit of downside protection of the covered calls in down markets.
thanks for all the input above. This quote though is where my head was at, which made me curious about it being advantageous for something like the tax-free HSA account I have? Definitely have to consider though the ability to sell if ever needed, but I have more than enough in my HSA and company gives me more each year, so I shouldn't have to touch some of the invested funds I have in there for a long long time.
As with any investments, please do a considerable amount of research in the investment style first and understand when it does well, and when it doesn't. Compare that style against other similar styles (balanced, long/short, etc). Compare that against your goals and what you see on the economic and investment horizon. If the style is what you want then start looking for who you think does it best and for the most reasonable price...study Morningstar and other unbiased third parties and be sure to look at total returns, forgetting what the yield may or may not be.
My model is telling me not until after jun 14th. I think you are too early right now, wait about a week.
to expand a little bit You can see the ATM (at the money) volatility for each expiration. The jun 14th expiration is inexplicably low. There is no major news event that week that i know of that would cause it to be so out of line. My thinking is that its the first week out of school and a lot of people will be on vacation etc. Just tells me that its a low probabilty that we move before then. So I think could wait a few days and get a little better price. Skews are nearing all time highs. Meaning that the calls are very expensive probability wise.
when you short a stock how long do you usually have to give the stock back to the person you "borrowed" it from? 30 days?
I mean this in the nicest way possible because I'm saying this to protect you: you haven't shown any level of financial acumen that indicates you should ever short a stock.
1) if it was part of your legal practice, you would be using real resources to find an answer 2) people don't ask specific questions about how shorts are reversed unless they are staring at material on the topic or far along the path to making a real investment. If you had material on shorting stocks in front of you, you wouldn't ask it here.
so would the paris deal be bad for the economy? i've seen arguments on both sides. on one hand you have loss of corporate profit because of regulatory compliance. on the other hand you have lost jobs for employees in the clean energy sector. I've got to think the cost of compliance and the cost to corporations exceeds lost jobs and thus makes the Paris deal bad for our economy and global competitiveness of our corporations.
If ExxonMobile and Chevron both want to stay in the Paris agreement it should be pretty obvious leaving the agreement is a bad decision.
Depends on what capacity you are talking about. In my retirement account I rarely ever short anything. As a day trader i short things all the time. In theory, in the short term, the market should be a random walk ... meaning that it should have an equal probability of moving higher or lower at any given moment. However, over the long term, market has showed a clear trend of going higher. I think shorting can be used as a tool for some people, but not a very good use for your long term investor.
Depends who you want to read and believe. I personally do not think it will hurt the economy at all. I also don't care how many Mother Jones articles someone wants to share, don't care argue with yourself.
I don't think this Paris deal has a big economic impact one way or the other. The market didn't react when it was implemented and is indifferent about any Trump announcement this afternoon. Cap and trade would have an economic impact.
I would argue that the time value of money is a known factor and already priced into any stock and therefore would not have any bearing on its next tick. I guess other questions that arise are 1) what is considered short term. Weeks or milliseconds? 2) Do you really believe its a random walk? I guess you could argue that point from both sides.
Here is another interesting article from today. John Bogle on indexing vs active management. http://www.marketwatch.com/story/john-bogle-has-a-warning-for-index-fund-investors-2017-06-01
I've been recently getting into short selling too. I've had some good flops but also some decent wins. I've been shorting a company called Dryships for the last few weeks: https://seekingalpha.com/article/4078380-dryships-worthless