Trading/Investing Thread - Page 106

On May 12 2022 04:01 {CC}StealthBlue wrote:
Anyone have $1.5 billion laying around?



Source

On May 13 2022 01:47 GoTuNk! wrote:
Everything is down, I do have a large stash of cash as I somewhat expected this down market. My only question is wether "buy the dip" now or wait.

On May 13 2022 01:47 GoTuNk! wrote:
Everything is down, I do have a large stash of cash as I somewhat expected this down market. My only question is wether "buy the dip" now or wait.

On May 16 2022 14:52 FreakyDroid wrote:


My rule of thumb is to enter with position size based on my confidence level. So if you have confidence that there isnt much more downisde enter with more sizable positions, otherwise do it with small positions and keep cash on the side. Back in November when everyone was loosing their minds about stock markets and crypto and when people were looking to "buy the dip" I wrote on this very thread that Im 100% in cash and that every bounce from here on out I consider bull traps. Luckily, or sadly depending on your point of view, I was right. Then in January I went into commodities and sectors that were beaten up in the last decade and kept 50% cash. Just now I started entering with very small positions in tech stocks because Im not very confident that this is the bottom.

As for crypto, well same story there. I've argued many times that stablecoins are a big problem for the market and that just glancing over the market cap of those should be a big concern for any crypto investor. I'd wait until all of this blows over with UST and Coinbase (and potentially other stablecoins and yield generators, or rather ponzi schemes) to enter the market. If and when it blows over, I expect no one to talk about crypto for a while and to see a few months of sideways price action to start buying. I only buy on Dex's never on a centralized exchange. Worth keeping an eye on regulation news about it, because Im not sure crypto can go on like it has so far.

Federal Reserve Chairman Jerome Powell emphasized his resolve to get inflation down, saying Tuesday he will back interest rate increases until prices start falling back toward a healthy level.

“If that involves moving past broadly understood levels of neutral we won’t hesitate to do that,” the central bank leader told the Wall Street Journal in a livestreamed interview. “We will go until we feel we’re at a place where we can say financial conditions are in an appropriate place, we see inflation coming down.

“We’ll go to that point. There won’t be any hesitation about that,” he added.

Earlier this month, the Fed raised benchmark borrowing rates by half a percentage point, the second increase of 2022 as inflation runs around a 40-year high.

Powell said following that increase that similar 50 basis point moves were likely to come at ensuing meetings so long as economic conditions remained similar to where they are now.

On Tuesday, he repeated his commitment to getting inflation closer to the Fed’s 2% target, and cautioned that it might not be easy and could come at the expense of a 3.6% unemployment rate that is just above the lowest level since the late 1960s.

“You’d still have a strong labor market if unemployment were to move up a few ticks,” he said. “I would say there are a number of plausible paths to have a soft as I said softish landing. Our job isn’t to handicap the odds, it’s to try to achieve that.”

The U.S. economy saw growth contract at a 1.4% pace in the first quarter of 2022, due largely to ongoing supply side constraints, spread of the omicron Covid variant and the war in Ukraine.

However, tighter monetary policy has added to concerns about a steeper downturn and has sparked an aggressive selloff on Wall Street. In addition to the 75 basis points in interest rate hikes, the Fed also has halted its monthly bond-buying program, also known as quantitative easing, and will begin shedding some of the $9 trillion in assets it has acquired starting next month.

Powell said he still hopes the Fed can achieve its inflation goals without tanking the economy.

“You’d still have a strong labor market if unemployment were to move up a few ticks. I would say there are a number of plausible paths to have a soft as I said softish landing. Our job isn’t to handicap the odds, it’s to try to achieve that,” he said.

He added that “there could be some pain involved to restoring price stability” but said the labor market should remain strong, with low unemployment and higher wages.

On May 18 2022 05:03 LegalLord wrote:
It is quite mind-boggling that a 50 bp increase is "the highest interest rate increase in decades" when interest rates get increased in 25 bp increments anyways. Just shows you how big the incentive to maintain the cheap money is.

We're dealing with some real small fry interest rate increases compared to where inflation is going. A truly token effort.