Investing in the stock market - Discussion

[Warhippy]

29 minutes ago, inane said:

 

Missed that boat by years  

 

[Warhippy]

Carnival Cruise ready to start up again with 8 cruises planned.

 

Royal Caribbean has made no actual statement thus far

 

Norwegian outright saying they might not be able to survive much longer.  

 

There is some serious $$$ to be made here.  Should Norwegian fold, expect a massive surge towards Disney, Carnival and Royal Caribbean

[AV's Coin]

On 5/4/2020 at 4:34 PM, CBH1926 said:

I would stay away from banks and insurance companies.

Utilities are doing better but low interest rates are hurting them.

 

I know insurance companies are driving up premiums... because they are losing money on the investment side due to low interest rates and on the claim side due to the high number of claims that may or may not be caused by climate change such as increased flooding, hurricanes, Forest Fires etc.

 

I thought of picking up an insurance company down the road a s a hedge against inflation and rising rates. If interest rates climb they will start making more money on the investment side.

 

Is this a thing or am I wrong?

[NucksPatsFan]

2 hours ago, Warhippy said:

Carnival Cruise ready to start up again with 8 cruises planned.

 

Royal Caribbean has made no actual statement thus far

 

Norwegian outright saying they might not be able to survive much longer.  

 

There is some serious $$$ to be made here.  Should Norwegian fold, expect a massive surge towards Disney, Carnival and Royal Caribbean

picked up CCL at 12.70

 

 

Pretty wild that Norwegian comes out and says they may not survive and their stock goes up lol

Edited May 6, 2020 by NucksPatsFan

[NucksPatsFan]

Great book.

 

Video summary for those with shorter attention spans:

 

 

[Warhippy]

1 hour ago, NucksPatsFan said:

picked up CCL at 12.70

 

 

Pretty wild that Norwegian comes out and says they may not survive and their stock goes up lol

smart actually, as they have a $6 billions debt, 3rd largest cruise company in the world they will push interest higher, the moment a company seeks to eat them or obtain them their stock will do a 20% to 30% jump

[Boudrias]

12 minutes ago, NucksPatsFan said:

Great book.

 

Video summary for those with shorter attention spans:

 

 

I read the book many years ago. It was very good. A step up from the Wealthy Barber. Simple finance is not taught in the schools which tells me that politicians do not want a financial literate people. That goes for both sides of the aisle. It would led to many embarrassing  questions. 

[Boudrias]

1 hour ago, AV's Coin said:

I know insurance companies are driving up premiums... because they are losing money on the investment side due to low interest rates and on the claim side due to the high number of claims that may or may not be caused by climate change such as increased flooding, hurricanes, Forest Fires etc.

 

I thought of picking up an insurance company down the road a s a hedge against inflation and rising rates. If interest rates climb they will start making more money on the investment side.

 

Is this a thing or am I wrong?

I won't touch an insurance company. I cannot see how the business plan will work over time. There is no yield in bonds and stocks are further out on the risk curve. The demographic is working against them. Yes, both Manulife and SunLife have gone after the younger Asian population but I still don't like them. 

[HI5]

I just been flippin mushroom stocks this week; need more destruction to make a splash!

 

Q3 might align with a spike in bankruptcies.

[Tortorella's Rant]

1 hour ago, Boudrias said:

I read the book many years ago. It was very good. A step up from the Wealthy Barber. Simple finance is not taught in the schools which tells me that politicians do not want a financial literate people. That goes for both sides of the aisle. It would led to many embarrassing  questions. 

No, they don't. Carlin was talking about this $&!# in the 90s. They want people who can't live in their means and take on a boat load of debt from the banks. 

[NucksPatsFan]

2 hours ago, Warhippy said:

smart actually, as they have a $6 billions debt, 3rd largest cruise company in the world they will push interest higher, the moment a company seeks to eat them or obtain them their stock will do a 20% to 30% jump

God I love investing.

 

Or, not even investing, just learning about the market.

 

Call it boredom, or finally having time to look more into something of interest to me. But I've been watching so many tutorials on how to read balance sheets, watching different videos from very successful investors over the decades, etc.

 

Relative to some of you I'm sure I'm a very tiny player, I'm not dropping 10+k per stock. But even just putting 1k into something is exciting.

[Boudrias]

29 minutes ago, NucksPatsFan said:

God I love investing.

 

Or, not even investing, just learning about the market.

 

Call it boredom, or finally having time to look more into something of interest to me. But I've been watching so many tutorials on how to read balance sheets, watching different videos from very successful investors over the decades, etc.

 

Relative to some of you I'm sure I'm a very tiny player, I'm not dropping 10+k per stock. But even just putting 1k into something is exciting.

Hey. I started back in the 70's when brokers on the Vancouver exchange used to cold call trying to get me to buy the latest hot mining stock. If I can pass anything along it is do your own research. Have a philosophy and stick with it. Listening to all the market noise tends to make you question your process. High ROE, high margins, low debt, good capital allocator and over time a defenseable moat. The older I get the more I insist on a dividend. Show me the money! 

[HI5]

Looks like we can expect to see green again till the end of this week if this pattern continues.

[Warhippy]

1 hour ago, HI5 said:

Looks like we can expect to see green again till the end of this week if this pattern continues.

This makes literally zero sense at all 

 

Air Canada just suspended another 40% of it's Canadian routes but is STILL up.  The US just recorded another 3 million jobless claims.

 

By every single metric the entire economy is broken, by every metric the markets should have shattered.  But instead everything keeps rising.

 

For once the numbers make literally zero sense at all.  I get the feeling a lot of would be investors and slow moving people will be caught by a sudden sell of that only those who know, know; leaving them in the paupers pit

[CBH1926]

22 hours ago, AV's Coin said:

I know insurance companies are driving up premiums... because they are losing money on the investment side due to low interest rates and on the claim side due to the high number of claims that may or may not be caused by climate change such as increased flooding, hurricanes, Forest Fires etc.

 

I thought of picking up an insurance company down the road a s a hedge against inflation and rising rates. If interest rates climb they will start making more money on the investment side.

 

Is this a thing or am I wrong?

IMO, best performing insurance stock is Chubb out of Switzerland and even they have been struggling.

I made money with Travelers insurance but sold it when it was in 150s now it’s in the 90s.

Too much uncertainty right now to buy insurance stocks.

[nuckin_futz]

3 hours ago, Warhippy said:

This makes literally zero sense at all 

 

Air Canada just suspended another 40% of it's Canadian routes but is STILL up.  The US just recorded another 3 million jobless claims.

 

By every single metric the entire economy is broken, by every metric the markets should have shattered.  But instead everything keeps rising.

 

For once the numbers make literally zero sense at all.  I get the feeling a lot of would be investors and slow moving people will be caught by a sudden sell of that only those who know, know; leaving them in the paupers pit

Makes perfect sense when you factor in the Fed. They have told everyone ZIRP is here to stay, you can expect stimulus as far as you can see. In Europe the ECB is even contemplating buying junk bonds. How can anyone fight that? It's a more extreme version of the playbook from 2009.

 

This is where all major Central Banks interest rates are at currently........

 

 

Not going to take much to go negative across the entire complex.

 

Air Canada has been down every day this week. Nothing goes down in a straight line. The market is just a pricing mechanism. At some point the news is priced in. Was anyone surprised by the news AC is cutting routes further? Plus the entire airline sector is getting a lift today (pardon the pun). Why wouldn't AC play along?

 

If it makes no sense now. Wait until the Fed grants itself the right to purchase stocks. Wouldn't surprise me one bit.

 

Don't fight the Fed.

 

 

[Standing_Tall#37]

Does anyone have a good app to recommend to watch things on the TSX?... I’ve just been using the standard one that comes with the phone, but I don’t really like it.

[Warhippy]

43 minutes ago, nuckin_futz said:

Makes perfect sense when you factor in the Fed. They have told everyone ZIRP is here to stay, you can expect stimulus as far as you can see. In Europe the ECB is even contemplating buying junk bonds. How can anyone fight that? It's a more extreme version of the playbook from 2009.

 

This is where all major Central Banks interest rates are at currently........

 

 

Not going to take much to go negative across the entire complex.

 

Air Canada has been down every day this week. Nothing goes down in a straight line. The market is just a pricing mechanism. At some point the news is priced in. Was anyone surprised by the news AC is cutting routes further? Plus the entire airline sector is getting a lift today (pardon the pun). Why wouldn't AC play along?

 

If it makes no sense now. Wait until the Fed grants itself the right to purchase stocks. Wouldn't surprise me one bit.

 

Don't fight the Fed.

 

 

Now what does that actually mean for investors and corporations though?

 

That is effectively claiming you're all too big to fail and no matter what happens the government will bail you out.  This is allowing the market to never ever dip below x or y which is entirely artificial 

 

This not only removes the risk, it also ensures that nobody will ever be held accountable again

[nuckin_futz]

29 minutes ago, Standing_Tall#37 said:

Does anyone have a good app to recommend to watch things on the TSX?... I’ve just been using the standard one that comes with the phone, but I don’t really like it.

The best free app I have ever come across is NetDania. Real time quotes and charts on all major indicies (North American, Europe, Asia), all currencies, major metals, major energy, dollar index, Bitcoin etc.

 

The app features a very extensive TSX tab where you get quotes from what seems like a never ending list of TSX stocks.

 

The app can take a bit of time to set up to your personal specifications as it is very customizable. Once you get it set up for what you want it's pretty sweet.

 

Pretty sure you can find some youtube vids to help with set up if needed.

 

This is what it looks like in the app store..........

 

There is a pay version that will remove the ads. But the ads aren't really that intrusive.

 

 

[nuckin_futz]

42 minutes ago, Warhippy said:

Now what does that actually mean for investors and corporations though?

 

That is effectively claiming you're all too big to fail and no matter what happens the government will bail you out.  This is allowing the market to never ever dip below x or y which is entirely artificial 

 

This not only removes the risk, it also ensures that nobody will ever be held accountable again

What does it mean? It means free money forever (or until it blows up).

 

As for your 2nd and 3rd paragraphs. Now you're getting it. It is a complete bastardization of capitalism by people who extol the virtues of capitalism while demonizing socialism of any sort. Financial hypocrisy at it's finest.

 

What to do about it? Perhaps you're familiar with the phrase "Close your eyes and think of England".