Closed out my short yesterday morning(with a slight gain). I remain a bit skeptical but not only don’t you fight the Fed, you can’t fight the tape either.
There is a narrative forming in the media that retail investors have been particularly active during the pandemic and their betting/bullishness have been responsible for for surging valuations in certain areas of the market. Part of the narrative seems to stem from a GS report, which I have not read --- but color me skeptical (with those delicious crayons) about the media reports.
I'm assuming posters on this thread have seen the narrative forming but here's one example in case not.
Closed out my short yesterday morning(with a slight gain). I remain a bit skeptical but not only don’t you fight the Fed, you can’t fight the tape either.
The Fed can provide liquidiy, but can it create income statements for companies?
Concur - access to cheap capital is keeping afloat a lot of failed companies. Prima facie: mall corner stores, petroleum "dollar" stocks, and more...
I'm not insightful enough to know/describe the harm, but am convinced that nothing will improve for this class of company/equity and their ultimate failure has just been lobbed into the future ...at a real cost to the taxpayer.
Maybe not the right place as its an “anti” investment.
Anyone have any thoughts on HELOCs?
Considering Third Federal, among others, for some needed home renovations.
So, if I'm reading things correctly, the S&P 500 is now up YTD. Even though I get it that the stock market ain't the economy (and yield is nearly impossible to find) this is noteworthy...when we look at earnings forecasts for the next couple years, current valuations are becoming stratospheric. Doesn't mean something bad will happen, but it might...I'll be sitting in the corner watching it unfold...
I will readily acknowledge that my circumstances are different from most people...we don't have kids, so the Prime Directive is capital preservation at this point...very very heavy in cash to answer your question...however, I don't think it would be a bad investment move for people to get a bit cautious now (maybe move more stuff in high quality bonds or cash) because I have trouble seeing P/E ratios (looking forward) staying where they are. But maybe I'm wrong...
I would say that rental properties would be a good investment these days. Housing prices haven't really dropped, but there is a steady income to be made, and the valuations scare me less than the current stock valuations. Of course being a landlord isn't for everybody.
Commercial real estate looks dead to me. Maybe the play is to buy a brand new office building for pennies on the dollar and convert it to condos.