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Jysin

Jysin

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Just took a look at my Fidelity cash yield FDRXX. It's now paying 4.97% which is pretty damn respectable.

When my 3mo tbill matures first week of Oct on a big chunk of cash, I am happy to let it ride as cash in Fidelity and simply waiting for opportunities.

FDRXX - Fidelity ® Government Cash Reserves | Fidelity Investments

Analyze the Fund Fidelity ® Government Cash Reserves having Symbol FDRXX for type mutual-funds and perform research on other mutual funds. Learn more about mutual funds at fidelity.com.
fundresearch.fidelity.com
 
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Sanrith Descartes

Sanrith Descartes

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Here are the current Fidelity rates for cash positions:

1695218610911.png
 
Sanrith Descartes

Sanrith Descartes

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So anyone gambling on the Fed decision today? Implied movement from options is pretty low. Most everyone thinks the decision is no hike today. The real question is what they are thinking about 2024.
 
Gravel

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Sanrith Descartes said:
So anyone gambling on the Fed decision today? Implied movement from options is pretty low. Most everyone thinks the decision is no hike today. The real question is what they are thinking about 2024.
Click to expand...
I keep reading that we maybe get one more hike between now and mid-2024, but that's all anyone is counting on. Which means today is no hike for sure.

Just curious if this is a 70's scenario where they're letting up way too early. Inflation doesn't seem to be under control in my view.
 
Sanrith Descartes

Sanrith Descartes

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Sanrith Descartes said:
Been starting to build my defense stocks positions. LHX, RTX and NOC so far. Baby bites followed by more baby bites. These are long term plays not flips.
Click to expand...
So far so good with this.

GD + 10%
LHX + 3%
NOC + 3%
RTX - 4%

RTX I screwed up the initial entry combined with the Pratt Whitney news breaking right after my initial purchase. Dollar cost averaged right near the bottom and now its just a patience game.
 
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Gravel

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So they're not even trying. Got it.

Just shit out the same statement every month and pretend you're solving it.
 
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Jysin

Jysin

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Key info from the release was this:

- Raises Median forecast for end-2024 rate 5.125% (prior 4.375%)
 
Big Phoenix

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Gravel said:
So they're not even trying. Got it.

Just shit out the same statement every month and pretend you're solving it.
Click to expand...
You have any idea how hard it is to be paid and compemsated what they are to do literally nothing?
 
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Sanrith Descartes

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Blazin said:
Don't disagree, which is why the MM is fine, because its primarily govt paper. Nothing wrong with it just think at that short of duration the juice isn't worth the squeeze. Taking a risk on a longer time frame is where the risk/reward is at right now. That's how you know its a real investment because it's an unknown, where is inflation going...

I don't think there is anyway to know so many ways for this to play out. I think investors over all though are much more comfortable with under performing vs losing money. If somoene locks in 5% for 5yrs and stocks return 8% feels a lot better emotionally than stomaching 20-40% up/down equity moves.

If we are back at 2% in the near future a lot of people going to be kicking themselves for not having taken the opportunity
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So you got my curiosity up and I did some digging in the bond books. I broke down days to expiry, the purchase price and rate to come up with the daily interest on the bonds at my purchase price. Because these are zero coupon bonds, they are basically rising in price each day as they move toward expiry and redemption. Since Treasuries in the secondary trade with zero commission online

1695235373399.png


and I am trading at/above the minimums so no markdown fees I can sell/liquidate at the daily accrued interest rate.

1695235500187.png


again I agree its not a money market, but Fidelity has such a large book and the secondary market is deep on Treasuries that they aren't illiquid. Now granted I am not trading in a single $1,000 bond. Really small bonds wouldn't hit secondary trader minimums and then I can see getting lit up on the spreads and markdowns.
 
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Blazin

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Selling SPY (@446) and IWM (@183) feeling good today, now to figure out when to go back in.
 
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Lightning Lord Rule

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T is back up to where I bought it a while back, after being down ~10% or so. All in about the last ~10-14 days or so as well. Since T is basically THE dividend play, I wonder if people are starting to shift cash away from growth oriented stuff (QQQ et al) and more towards shielding gains via low beta dividend instruments? I say that since that's been my strategy (broadly speaking) since about 2 months ago. I may have been slightly early, but maybe not by much? I still think things are heading back down, but I'm not sure I have the stones to translate that sentiment into a large SQQQ buy. I'd be up nicely if I had done exactly that about 6 weeks ago though.

Sigh :I'm Fine:
 
Jysin

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TLT dumping a bit in the after hours. Maybe China and Japan aren't done selling US treasuries.

Happy to scoop them up at rock bottom discount prices!
 
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Ranak

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www.reuters.com

Disney CEO says company will 'quiet the noise' in culture wars, according to analyst note

Walt Disney CEO Bob Iger told investors the company will "quiet the noise" in a culture war that has pitted social conservatives against the global media and entertainment conglomerate, according to an analyst note on Wednesday.
www.reuters.com www.reuters.com

They've got this all wrong, as usual. Focus on product instead of politics. They view their social positions as neutral, broad accommodations and are surprised when people disagree with shoving them into films and other media forms. Going to take a long time to win back those they've lost with recent policies and decisions. Will they sell off ABC/ESPN etc. and focus on their historical bread and butter? Promising $60b in parks upgrades is a huge number.
 
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