Investing General Discussion
- Thread starter Furious
- Start date
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Guest, it's time once again for the massively important and exciting FoH Asshat Tournament!
Go here and give us your nominations!Who's been the biggest Asshat in the last year? Give us your worst ones!
Mist
REEEEeyore
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FYI:
OEF is up 29.95% for the year and MGC is up 27.97%, so we were both kinda right.
Both are beating SPY for the exact reasons I thought they would.
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Big Phoenix
Pronouns: zie/zhem/zer
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Tmac
Adventurer
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So this is a total cluster fuck of an account. I’m so confused.
See the spoiler for an incomplete picture. I was limited to 8 pics. They’ve got fkn 2.5% CD’s LOSING money.
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Jysin
Ahn'Qiraj Raider
- 6,508
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Those 2.x% treasuries are underwater because they were purchased some time ago at lower rates. You can buy a 2yr treasury for 4.7% today. So if you were to sell your 2% yield bond on open market, you have to discount it at a loss (because why buy your 2% when I can buy a 4%?). If you hold it to maturity, you lose nothing whatsoever and get paid at the yield stated.
This is an example of what brought down banks in recent years. They had “safe” holdings in longer term treasuries paying safe, albeit low yields (compared to today’s yields). They had liquidity issues when too many people were withdrawing money and were forced to sell the bonds at a loss.
It looks like a ladder of different dated treasuries all the way through 2033. No point in doing anything with them, but hold while they pay the cheap yields or else you sell for a loss. Best case scenario, Fed takes interest rates back down significantly and those gain value again. (The reality of Fed taking that action or the “why” is another discussion entirely.)
This is an example of what brought down banks in recent years. They had “safe” holdings in longer term treasuries paying safe, albeit low yields (compared to today’s yields). They had liquidity issues when too many people were withdrawing money and were forced to sell the bonds at a loss.
It looks like a ladder of different dated treasuries all the way through 2033. No point in doing anything with them, but hold while they pay the cheap yields or else you sell for a loss. Best case scenario, Fed takes interest rates back down significantly and those gain value again. (The reality of Fed taking that action or the “why” is another discussion entirely.)
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Sanrith Descartes
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Not defending paid investment folks, but yeah
Jysin
is correct on the ladders. Those were bought when rates were in the shitter.
It's a cookie cutter, mail it in strategy. This is what people get who pay money managers. They put clients in carbon copy strategies and then put their feet up on the desk. They have zero concern for how the clients actually perform. They get paid no matter what.
Jysin
is correct on the ladders. Those were bought when rates were in the shitter.It's a cookie cutter, mail it in strategy. This is what people get who pay money managers. They put clients in carbon copy strategies and then put their feet up on the desk. They have zero concern for how the clients actually perform. They get paid no matter what.
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Zog
Blackwing Lair Raider
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It's a macro play, the 2000 companies are all low cap stocks that are usually in debt to some degree, a high interest rate environment is terrible for them. Rate cuts directly benefit them, so every chart for these companies is atrocious, until the rate cuts happen. Every hedge fund is pounding the desk for rate cuts to add or see returns on this % of their balanced portfolios.
This is a fair point. While this is an awful strategy from our perspective, asset growth is not necessarily the goal of a late-stage retiree. In my 70's and 80's I would definitely forego returns to be 100% bulletproof sure that I'd have enough money to last until I die.
While the S&P has been up a shit-ton on average in the last three years, it also fell by 45% at one point (12/21-10/22), which is much scarier than lost gains to a retiree.
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Sanrith Descartes
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Loser Araysar
Chief Russia Reporter. Stock Pals CEO. Head of AI.
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Support level for NVDA moved up to 127, saw someone else with a chart that pegged resistance at 136-137
So those are the new NVDA levels I guess. I'm tempted to buy but I will wait for more confirmation today to see if it holds before i can trust to play it regularly
So those are the new NVDA levels I guess. I'm tempted to buy but I will wait for more confirmation today to see if it holds before i can trust to play it regularly
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Asshat Foler
2024 FoH Asshat
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Cathy and Blazin were so right. Many will be triggered.Broke above $250
Sanrith Descartes
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Trimmed 20% of my TSLA stake. Partially to bank some profit (+60%) and partially because it had gotten to be too large of a portfolio weight.
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Tmac
Adventurer
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Sanrith Descartes
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