/biz/ - Business & Finance

>>20294380
>Were you part of the conversation about the deflationary spiral yesterday?
no, but from what i've seen, the threads are generally pretty spot on in discussing this topic.
>US savings rates were setting records, and the pent-up demand is real.
I think that >>20294422 has it right, but I'm still confused about what people are continuing to spend on, especially if places are having trouble keeping inventory of durables.
>It's a big problem if people continue to save instead of spend.
I also think that this trend has to do more with cares than anything else. We'll have to see how that plays out.

>>20049650
>>20049689
>resting over 1.7k
>drop
idk. it might be to switch to equities on the bullish sentiment. Yield on the 10 year is up too. The spike yesterday was mad.
If it was deflation, we'd see the yields going down, but they're up. The broad market should be dropping too.

It seems like the best investment you can make is just buying QQQ. Nothing beats it. Why buy anything else?

>>19454510
not to be XIV words, but in the longterm... in terms of tax liabilites...

Isn't it interesting that stocks go up, but also those debts go up? Why would debt go up if the company is doing better? Its almost like they are related, as if companies are getting loans to buy their own stock to justify high valuations without generating value and its been happening for a decade which corresponds with historically low interest rates...

Why are we up 3%? Doesn't this seem a little excessive?

>>19139623
>potential gains
The fallacy of infinite upside. Whens the last time you saw a stock price go to infinity? The larger the move, the more unlikely it will happen.
I am measuring based on total capital used and limited downside potential. For a covered called, all the capital goes into stock. For a straddle, all the capital goes into options. The stock can realistically move +/-10% in a week (highly dependent on the stock of course).
If it stays the same, you lose nothing and gain the premium. If it goes up, you just sell at strike plus keep the premium. If it goes down, the premium partially or even fully covers the loss.
For a straddle, if the stock doesn't move, you lose 100% of your investment. And because you are playing both sides, the stock has to move twice in one direction to cover the cost of the bad side. This means that youd need to have double the expected movement to just break even.

>>19139858
>>19140042
>unlimited downside
While technically true, thats nearly impossible. JCP is going bankrupt and yet they still haven't gone to zero. But you wouldn't be selling covered calls on JCP anyway. What do you believe is a realistic move for a $1 billion company in a week? If its more than 10% you probably shouldn't be playing options unless you like the incredible high risk.
The point is to limit downside risk. Its way harder to turn 10,000 into 100,000 than to turn 100,000 into 10,000. A straddle has 100% downside risk by the expiry, stocks do not.

>>19022364
Why is that?

>‘We’ve seen the lows in March’ for the stock market, says man who called Dow 20,000 in 2015, ‘and we will never see those lows again
https://www.marketwatch.com/story/weve-seen-the-lows-in-march-for-the-stock-market-says-man-who-called-dow-20000-in-2015-and-we-will-never-see-those-lows-again-2020-05-08

>>18656342
I just meant that it will happen fast and you;ll be too late to react if you dont pay attention to volume. For example, when Gilead news hit yesterday, the who market dropped 2% in minutes/seconds, there as no time to react.

>>18529262
Did you know that a stock can go to zero even if the company doesn't go bankrupt? Haha, isn't that neat? Its like a magic trick!

>World Food Crisis
Is this priced in?
https://www.youtube.com/watch?v=boAb7VxFnGo

Do people actually believe there will be a V shaped recovery?

How do I turn 20k into 100k next week?

>Cuomo has pierced nipples
How does this affect the stock market????

>>18194858
Its simply the result of an over reaction on the first leg down. This is not a recovery because there is nothing to recover. In fact, it was too high even before this.

CONVINCE ME NOT TO PUT DOWN 30K ON SPY 200 PUTS JUN 19????????????

>>18169152
Maybe being a fucking royal, acting as a representative of the state, managing your estates, raising progeny, and supporting your people and country?

>>18166608
>no bad news
1,000,000 cases
>no bad news
Riots in China
>no bad news
Food running out in Italy
>no bad news
Oil is fucked even more
>no bad news
New York over 1,000 deaths
>no bad news
Interstate travel bans
>no bad news
States hunting down people for forced quarantines
>no bad news
>no bad news
>no bad news