Talking Stocks 2.0

[beshannon]

Stocks surge after the Fed cuts rates by half a point

Mistake in my opinion as this will do nothing except give a false sense of security

Taking more off today, well that was a short window. Building cash

Risk happens fast

[uscmatt99]

Originally Posted by beshannon

Mistake in my opinion as this will do nothing except give a false sense of security

Taking more off today, well that was a short window. Building cash

Risk happens fast

I agree, there's not much ammo left in the Fed's tank, why are they pulling the trigger on this so soon?

[beshannon]

Originally Posted by uscmatt99

I agree, there's not much ammo left in the Fed's tank, why are they pulling the trigger on this so soon?

I don't want to derail this thread as well but the reasons are clear, to me at least.

Bottomline is that there is little left when the next reason to lower occurs.

[mcnealstash]

Originally Posted by beshannon

I don't want to derail this thread as well but the reasons are clear, to me at least.

Bottomline is that there is little left when the next reason to lower occurs.

So if more bad news keeps coming our way- say something like a big outbreak in the U.S.- are you saying then that we are in deep doo doo?

I'm confused about the jig saw effect happening right now- I suppose it's because people are "buying the dip." A lot of this, however, feels like FOMO to me, especially yesterday's insane spike. Is the pricing on stocks right now baking in the potentially bad earnings that stocks could be reporting later this year for Q1 and Q2? Or was that taken into account of last week with the correction?

Sorry I am clearly not as savvy a technical trader as you are (not sure if my questions are even relevant to what you're talking about...), but I do appreciate your daily insights/commentary- I've been following this thread religiously since it was started as well as the older investment thread.


I'm on the younger side (early 30's) and have a lot of interest in more active portfolio management strategy. I've dabbled in stocks since I was about 21 or so and while I've done well in my time in the markets (rode a lot of tech/IT hype trains like Apple, Tesla, AMD, Nvidia) I realize a few things now:

a. I was investing extremely recklessly by dedicating a significant portion of my portfolio on one or two companies (sometimes >80% of the portfolio). Granted it was not a ton of money and it would have been okay if I lost it all...
b. I got extremely lucky- I never got burned by any of my "picks."
b. The time period in which I was investing was perhaps one of the most prosperous periods ever to be "in" the stock market (especially in tech), and therefore I am probably biased in one way or another because of it.

I sold all my non-bond positions last Monday, and now have abut 20% bonds, 30% stocks (fortunately bought a little before the rise yesterady), and now have ~50% of my portfolio in cash "waiting in the wings" for any opportunities. I read Motley fool, Schwab insights, WSJ, NYT, and a little bit of reddit. I also aggressively follow news relating to a pretty short list of companies- the vast majority of these are blue chip stocks, however.

What are some things that I can do to better myself as an investor and teach myself about portfolio management and maybe even options trading? Or ways that I can expand my horizon beyond large cap blue chip companies.

[beshannon]

Originally Posted by mcnealstash

So if more bad news keeps coming our way- say something like a big outbreak in the U.S.- are you saying then that we are in deep doo doo?


What are some things that I can do to better myself as an investor and teach myself about portfolio management and maybe even options trading? Or ways that I can expand my horizon beyond large cap blue chip companies.

Fed Funds rate is now in the range of 1.00% to 1.25%. There is little left if there is a real crisis like 2008. This cut today actually (IMHO) makes things worse.

You have time on your side, there are many great resources out there, books, websites etc., to learn. Depending on who your broker is, they have resources. I use Schwab because I like their trading tools and research.

[Doc Savage]

Originally Posted by beshannon

Fed Funds rate is now in the range of 1.00% to 1.25%. There is little left if there is a real crisis like 2008. This cut today actually (IMHO) makes things worse...

The fact that the market still tanked today, even after a massive fed drop in interest rates, is probably the most worrisome indicator on the direction of the market.

[beshannon]

Originally Posted by Doc Savage

The fact that the market still tanked today, even after a massive fed drop in interest rates, is probably the most worrisome indicator on the direction of the market.

Completely agree, it was a panic reaction that would never have done anything.

We are now worse off

[uscmatt99]

Originally Posted by Doc Savage

The fact that the market still tanked today, even after a massive fed drop in interest rates, is probably the most worrisome indicator on the direction of the market.

Yes the problem is that on the one hand we are told by policy makers and federal agencies not to worry, it's all under control. On the other hand, let's do an emergency rate cut not employed since 2008. While I understand that's intended to have a broad stabilizing effect on the economy, it's more narrow effect on the markets today probably isn't what was anticipated.