Gravel
Mr. Poopybutthole
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Jesus, it's been inverted so long I forgot that it was. And now I can't even tell if it's a good thing.
How hilarious would it be that it going back to normal signaled a recession?
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Investing General Discussion
- Thread starter Furious
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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!
How hilarious would it be that it going back to normal signaled a recession?
Blazin
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To clarify it un inverted a bit ago which seems to be what you are referring to, well it's inverting again.
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tugofpeace
Trakanon Raider
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I'm a bit jealous of the people who have massive amounts of shares in high volatility stocks because of their ability to sell weekly calls.
I'm just now experiencing that with UPST. 300 shares, making $800/week.
People who bought into TSLA few years ago must be really raking in the $. Stock split after stock split, imagine selling like 10-20 contracts per week. That could pretty much replace a full time job.
I'm just now experiencing that with UPST. 300 shares, making $800/week.
People who bought into TSLA few years ago must be really raking in the $. Stock split after stock split, imagine selling like 10-20 contracts per week. That could pretty much replace a full time job.
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Blazin
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I'm rolling about 12 contracts and can't wait to start moving this number higher. While you still care about capital appreciation it leaves you much more focused on the grind and much less concerned about the day to day price action. Next year should be a better year for volatility, with the side effect though in more persistent declines you may be selling calls at strikes that you wouldn't be that thrilled to sell at, as compared to now where your selling strikes that are on top of large moves already.
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Blazin
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Was doing more digging on the MSTR stuff and the pain point that I see is the fact that the converts are callable. What this means is that the bond holders could demand the return of their capital. If and that is a big IF that was to occur during a steep decline it could force MSTR to sell some of it's BTC into a decline and create the exact feed back loop that has worked in the other direction. Right here today it's hard to imagine that becoming a reality. He is about the only game in town for bond managers to get exposure and he receiving a huge premium for that advantage.
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tugofpeace
Trakanon Raider
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Can someone explain this to me.
I was reading on investopedia and this bit didn't make sense:
So based on the purple/green graph, the 10 year yield is falling which means bond prices are rising and this signals low confidence in the markets? Why? Prices rising and yields falling = more demand for 10 year treasury notes?
Lambourne
Ahn'Qiraj Raider
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There's two intertwined effects.
First effect is the coupon rate (how much interest a bond gives), for this it helps to understand the process in which bonds are created. States set a target for how much money they want to borrow and set an auction for that amount. Say they want to raise 100 million, depending on how much demand there is for the bonds they need to offer a higher or lower rate to get that amount. If stock market confidence is high, there will be less buyer interest so they need to offer a higher rate to get to their 100 million target.
Bond price becomes relevant only when you want to sell or buy a bond. If the current rate is 2% but you own a bond that gives 3%, you will still get your 3% if you keep the bond to maturity. But if you wanted to sell your bond to someone else, it is worth more than a brand new 2% bond because of the higher rate. The exact price depends on how many coupon payments remain and the calculation gets a bit complicated but the takeaway here is if rates go up, bond price goes down and vice versa. Again, this becomes relevant only when you want to sell or buy a bond; if you just keep your bond until the end date you will still get what you agreed to.
Like everything else, it gets more complicated the deeper you get into it but if you understand these basic effects you're well on your way.
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Asshat Foler
2024 FoH Asshat
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Are you guys talking about covered calls? Wondering if it would be worth me selling covered calls on my AMZN..
Sanrith Descartes
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Just to add on. The "quality" of the bond matters. There is an entire swath of bonds properly named "junk bonds".
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Blazin
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Yes and those junk bonds have to pay a premium..checks notes...of 0.25% compared to AAA!
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Kiroy
Marine Biologist
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So i’m looking at this texas sueing vanguard/blackrock ect for assfucking coal companies / their clients and wondering. Seems like i’m always hearing about blackrock and vanguard when it comes to this ESG gayness.
My question, does fidelity engage in this type of behavior as well? Think for the new year i’m going to switch all my stuff out of vanguard to fidelity if they have better behavior.
My question, does fidelity engage in this type of behavior as well? Think for the new year i’m going to switch all my stuff out of vanguard to fidelity if they have better behavior.
Blazin
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Fidelity is owned by a family of Mass. Liberals (Johnson's) but their political engagement seems more muted. Maybe they do it just as much but keep it out of the spotlight very hard for very wealthy families not to go influence hunting. While they are most definitely not "allies" to coin a super gay leftist term they are certainly less activists.
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Sanrith Descartes
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yeah, being privately held they dont need to announce shit to shareholders in a public forum.
edit: the family is worth $44b and own half the company. The other half is owned by the employees.
(Edward) Johnson family
#5 (Edward) Johnson family on the 2024 America's Richest Families
www.forbes.com
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Gravel
Mr. Poopybutthole
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That's the thing, what behavior?
We don't actually know what goes on behind closed doors. Outside of the occasional press release of what they're doing (which I think Blackrock is the only one that has), we have no clue if they're really pushing anything in particular.
Mist
REEEEeyore
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It's a bullshit suit.
If you're essentially a giant retirement fund working with a 30+ year time horizon, it's perfectly reasonable to get your investments as far away from coal as possible.
"Number must go up" and coal's days are numbered no matter what you think about politics in the short term.
If you're essentially a giant retirement fund working with a 30+ year time horizon, it's perfectly reasonable to get your investments as far away from coal as possible.
"Number must go up" and coal's days are numbered no matter what you think about politics in the short term.
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Sanrith Descartes
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So, I'm not being a doomer or anything, but WMT of all stocks is at a 10+ year high in terms of trailing PE ratio. Trading at 62x trailing earnings.
edit: and ARKK sitting near a 52-high. That's even more scary.
edit: and ARKK sitting near a 52-high. That's even more scary.
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Sanrith Descartes
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