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Investment Thread - For all your money needs

I worry about inflation here, too... It has been punk for so long that I think people forget how much damage it can do.

The Fed is clearly and openly not worried about it right now... Employment is their focus and they are willing to let inflation run a little hotter. The meeting next week will be interesting because I am sure Powell will get questions on it. Commentary from Biden & Yellen has me convinced rates are going much higher this year. While we are still near historically low levels, I still think a large percentage move in the 10-year would have a number of negative consequences.
 
DeacsATS said:
I worry about inflation here, too... It has been punk for so long that I think people forget how much damage it can do.

The Fed is clearly and openly not worried about it right now... Employment is their focus and they are willing to let inflation run a little hotter. The meeting next week will be interesting because I am sure Powell will get questions on it. Commentary from Biden & Yellen has me convinced rates are going much higher this year. While we are still near historically low levels, I still think a large percentage move in the 10-year would have a number of negative consequences.
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What do you mean they aren't worried about it? They said over the summer they were going to encourage it.

https://www.cnbc.com/2020/08/27/pow...announced,target before hiking interest rates.
 
So me and some buddies took a gamble on NOVS last month, and i just dropped it with at +120%. i thought hard about just leaving in my house money but still unsure on the market. besides i needed the extra to offset some of this other stocks that are not doing well.
 
The velocity of money has slowed tremendously due to covid, so the government can get away with printing a ton of money since it's both the supply of money, and the speed of money, which determine inflation.
 
Donkey Deac Doug said:
If anyone has digested content about what inflation/deflation look like in the next few months, next year, and next five years, please let me know. I'm fucking terrified of it.
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No idea...and everyone claiming they know is just throwing a dart and if they happen to be right it'll be because of dumb luck.
 
Anyone following the Gamestop stock? The saga is crazy with short sellers and wallstreetbets. Could this have happened with any stock or is Gamestop special?
 
bernbp5 said:
Anyone following the Gamestop stock? The saga is crazy with short sellers and wallstreetbets. Could this have happened with any stock or is Gamestop special?
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"GameStop’s most valuable asset is their database of tens of millions of PowerUp Rewards members that no other competitor has the ability to replicate. GameStop will be able to leverage this data to become a fierce e-commerce competitor over time and has many unexplored avenues to monetize the data."
 
bernbp5 said:
Anyone following the Gamestop stock? The saga is crazy with short sellers and wallstreetbets. Could this have happened with any stock or is Gamestop special?
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Any stock, kinda. My understanding is that GME was the most shorted stock in the world, which is why it was specifically targeted.
 
The GME stuff has been so fun to watch over the last few days. Ultimately the stock will crash and burn, but it's fun in the meantime.

I bought a bunch of TELL the other day. It's 100% a gamble, but I think it can run a lot more than it already has.
 
What do you guys do when a stock just explodes? I bought a decent amount of Plug Power early last fall for ~$11. Its current price is $74. Do you guys take profits and just deal with short term capital gains or hold it? I don't think it's crashing back down to earth anytime soon but obviously it's been pretty volatile.
 
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That's a very tough question. I tend to be pretty conservative with that stuff... Meaning I like to lock in my gains. However, I have absolutely made most of my mistakes by selling winners too soon. I'm pretty good about cutting losers quickly, but I've cost myself a lot of money by selling stocks too early.

I know nothing about Plug Power specifically, so I can't help you there.
 
I almost bought some GME at $80 just as a pure gamble, but I missed the buy order. I wonder where the top will be for this before it crashes..
 
DeacsATS said:
That's a very tough question. I tend to be pretty conservative with that stuff... Meaning I like to lock in my gains. However, I have absolutely made most of my mistakes by selling winners too soon. I'm pretty good about cutting losers quickly, but I've cost myself a lot of money by selling stocks too early.

I know nothing about Plug Power specifically, so I can't help you there.
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Gotcha, I appreciate the advice. I'm mostly a passive investor into ETFs and that sort of thing, but I like to take a minority of my investment money and pick stocks. It's been nothing but positive news for Plug for pretty much the past year, but I'd never seen growth like that before and wasn't sure what the right move would be. It's not like it's a life changing amount of money for me, so I'm leaning towards just leaving it for now and seeing what happens.

Is this a situation that setting a stop order and just bumping it up as it grows makes sense? Basically just sell and take my profits as soon as it starts moving significantly downwards?
 
deacon14 said:
What do you guys do when a stock just explodes? I bought a decent amount of Plug Power early last fall for ~$11. It's current price is $74. Do you guys take profits and just deal with short term capital gains or hold it? I don't think it's crashing back down to earth anytime soon but obviously it's been pretty volatile.
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Don't ask me. I'm out. The phrase, "too rich for my blood" means I'll probably never hit the jackpot, but I'm also not going to go broke, either. I guess I'm what you would call a "profit taker." Once I was up about 100%, I just cashed out and said, "thanks, that's enough."
 
Donkey Deac Doug said:
Don't ask me. I'm out. The phrase, "too rich for my blood" means I'll probably never hit the jackpot, but I'm also not going to go broke, either. I guess I'm what you would call a "profit taker." Once I was up about 100%, I just cashed out and said, "thanks, that's enough."
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Yeah I would probably have done that too if stock plays like this were a large chunk of my investment. Individual stocks make up like 10-20% of my stuff, so it's not like I'd go broke if the occasional one crashed and burned. I'm a grad student without a ton of money to invest anyways, so this is really more about trying to build good habits and learn for me.
 
Donkey Deac Doug said:
Don't ask me. I'm out. The phrase, "too rich for my blood" means I'll probably never hit the jackpot, but I'm also not going to go broke, either. I guess I'm what you would call a "profit taker." Once I was up about 100%, I just cashed out and said, "thanks, that's enough."
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The problem with that is that you lose out on the really big winners... And that is where most of your profits will ultimately come from.

I've had a few stocks I've owned go to zero and it sucks... But I've a couple of others that have been 10-baggers+. That more than offsets the ones that went to zero.

deacon14... I absolutely like the strategy of setting stops. Which level is completely up to you... Just depends on what you can stomach.
 
DeacsATS said:
The problem with that is that you lose out on the really big winners... And that is where most of your profits will ultimately come from.

I've had a few stocks I've owned go to zero and it sucks... But I've a couple of others that have been 10-baggers+. That more than offsets the ones that went to zero.

deacon14... I absolutely like the strategy of setting stops. Which level is completely up to you... Just depends on what you can stomach.
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Yeah man. I'm certainly not playing to win, which isn't great.
 
freakadeac said:
The velocity of money has slowed tremendously due to covid, so the government can get away with printing a ton of money since it's both the supply of money, and the speed of money, which determine inflation.
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The Fed has said, very publicly, that they want inflation to run higher than 2%.

And we already are seeing inflation:

"The consumer price index (CPI)-based inflation rate moderated to 4.59 per cent in December, down from 6.93 per cent in November and 7.61 per cent in October, which was a six-year high. This happened because of a sharp fall in food inflation from 9.5 per cent in November to 3.4 per cent in December, the lowest since August 2019."
 
DeacMan said:
The Fed has said, very publicly, that they want inflation to run higher than 2%.

And we already are seeing inflation:

"The consumer price index (CPI)-based inflation rate moderated to 4.59 per cent in December, down from 6.93 per cent in November and 7.61 per cent in October, which was a six-year high. This happened because of a sharp fall in food inflation from 9.5 per cent in November to 3.4 per cent in December, the lowest since August 2019."
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You are 100% correct, but that isn't the Core CPI number that the Fed looks at with that 2% metric. Headline CPI should rise sharply in the next few months due to very easy comps and higher oil prices... But Fed don't care.

And as you stated, Fed don't care anyway. They've said so.
 
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