Investing Thread

[MU82]

Seriously, his dementia is even more advanced than I thought. Just read that screed a couple of times. Yikes!

[MU Fan in Connecticut]

Invisible hand of the market

https://bsky.app/profile/paleofuture.bsky.social/post/3mup3wu5kwk2f

And next month when the August number is corrected and reduced by 70,000 jobs.............

[Uncle Rico]

And next month when the August number is corrected and reduced by 70,000 jobs.............

We're dealing with someone who doesn't think we have to trade with other nations

[rocky_warrior]

Looks like the "house" didn't understand that people aren't looking for a casino.

Part of the game I suppose.

[MU82]

[TSmith34, Inc.]

With yields increasing, today I wrote a few sets of covered calls and rolled the proceeds into laddered CDs(!!!) Net yield combined is between 15.% and 16%

Couldn't tell you the last time I thought about CDs.

[MU82]

From the WSJ:

Steve Witkoff reported earning more than $100 million from an entity tied to Trump's crypto company.
 
The Middle East envoy's 2025 income from the holding company that owns his stake in World Liberty Financial is more than three times what he reported last year, according to a new financial disclosure. It included nearly $69 million in cash and $38 million in crypto. Witkoff co-founded World Liberty with Trump and his family members in 2024.

[jesmu84]

Hmm

https://x.com/CryptoNobler/status/2099160615298232382

[MU82]

Cool. I can do some buying.

[Uncle Rico]

Invisible hand of the market

https://bsky.app/profile/atrupar.com/post/3mvgcnshjuh2i

[tower912]

I wish Goose was here to discuss headwinds.

[MU82]

Invisible hand of the market

https://bsky.app/profile/atrupar.com/post/3mvgcnshjuh2i

He can say whatever he wants - and he will, usually out of pure ignorance. But the Fed absolutely will not lower rates this week.

They might not raise em, although they probably should, but they certainly won't reduce.

[Jay Bee]

With yields increasing, today I wrote a few sets of covered calls and rolled the proceeds into laddered CDs(!!!) Net yield combined is between 15.% and 16%

How do I do this?

[MU82]

Hmm

https://x.com/CryptoNobler/status/2099160615298232382

Chipmakers down bigly but the rest of the market pretty much shrugged. My mostly boring portfolio is up about 0.5% today.

Will be interesting to see how the market reacts Wednesday after the Fed meeting. A .25% raise is priced in.

[TSmith34, Inc.]

How do I do this?

1) Buy/own a stock
2) Write covered calls against them. I like the annualized yield (net premium/share price * 365/days to expiration) to be > 12%, but I settled for 11.8% for a portion of these because the underlying stock isn't very volatile
3) Take the money you just received and purchase CDs. I went 6 months out and got 4.06%

[Uncle Rico]

Interest rate hike.

Correct move by Warsh.  Won't be received well by a certain someone but it gives him an enemy to attack to appease the mouth breathers.

[jesmu84]

The current key driver of inflation is cost of oil directly related to the Iran War.

How does increasing the Fed rate change that? Is it merely an attempt to slow the whole of economic demand which would reduce the oil need and maybe decrease prices?

[The Sultan]

The current key driver of inflation is cost of oil directly related to the Iran War.

How does increasing the Fed rate change that? Is it merely an attempt to slow the whole of economic demand which would reduce the oil need and maybe decrease prices?

Yes, the goal is to decrease inflation by decreasing the amount of money in the economy. The problem is that it could push the economy into recession.

[Uncle Rico]

Yes, the goal is to decrease inflation by decreasing the amount of money in the economy. The problem is that it could push the economy into recession.

FWIW, most think this won't happen, and I'm not sure what that's worth given their track records

[Hards Alumni]

Interest rate hike.

Correct move by Warsh.  Won't be received well by a certain someone but it gives him an enemy to attack to appease the mouth breathers.

That messaging is intentional.  Allows his dullard followers to blame someone for "the economy" and inflation.  If you cannot hear the following sentence being spoken aloud by them, you soon will.

"What do you expect, they're not listening to the President.  He can't do anything more for the economy if the federal reserve won't listen to him"

[MU82]

Yup. Blame "Wimpy Warsh" for the economy. Blame "Impotent Pete" for the war. Blame  Little Marco (and Biden, of course) for Russia-Ukraine. Blame the Supreme Court for the election losses.

He's got all his "blame everybody but me" ducks in a row.

Meanwhile ...

I did just a little nibbling after the announcement. Bought some more AMZN, added a tad to a few utilities, and topped off a couple of mutual funds.

[Hards Alumni]

Correct.  All good things were done by him, and all bad things were someone else.

[Uncle Rico]

Correct.  All good things were done by him, and all bad things were someone else.

Can you point to a good thing?

[Hards Alumni]

Can you point to a good thing?

OWS

[MU82]

From Yahoo Finance:



A core tenet of free-market thinking is that the government shouldn't be in the business of choosing winners and losers. But when the White House does dabble in industrial policy, you'd expect its chosen companies to be the winners.

By and large, they aren't. While investing alongside the White House might have seemed like a water-tight get-rich-quick strategy, the portfolio has a surprisingly poor report card.

President Trump often touts his administration's investment in Intel (INTC) — specifically the outsized gains in the chipmaker's share price since the deal was announced.

But the fortunes of more than a dozen other public companies in the US government's growing portfolio tell a much less flattering story.

Stocks in companies that have struck a deal with the Trump administration have often followed a common trajectory: a significant bump around the formal announcement, high volatility afterward, and then gains often given back almost as quickly as they came.

In fact, most companies are now in the red compared with their initial prices. A Yahoo Finance analysis shows that 14 of the 17 public companies that accepted government involvement ended this past week with share prices lower than the day after the deal was announced.

For investors who managed to front-run the government investments, the stocks are still mostly a losing proposition. Returns for 11 of the 17 companies, when compared to 10 trading days before the formal announcement, are lower now.