*Investors Blog*

So besides whining about the cruel world out there :whistle:, what's new in the investment forum?

I was hoping the Fed was going to pause the increases and wait until the next meeting or maybe a token .25.
I mean, clearly things are changing in the marketplace, the numbers are changing, why always the inflexibility? They are always wrong on the timing, dont they know that yet and maybe compensate for always being wrong?
They know way more than me but for some reason they are always late to the party and then stay to long.
It will be an interesting end to the week
So my predictions are usually wrong. Having said that....

I think they will continue raising rates, possibly at a slower rate. My logic - employment is still tight - if you believe the numbers, and core inflation is still high. They in the past would pivot for fear of mass layoffs, etc - but with employment high I think they believe they have more room.

Wall street keeps expecting a pivot, and why wouldn't they, its been that way for 30 years. We will see.

Having said that I agree with you - they will likely continue until they break something - because they always do.
 
Yeah it's not like the people buying those corny Dodge "Hellcats" and "Scat Packs" are do so after a careful cost benefit analysis 😁
they used to say “can pass anything but a gas pump” - and that’s how it went for the punk who stole a Hellcat in Houston - heck he was even leaving a news chopper behind went the tank went dry …
 
Building a new wafer fab factory costs billions and takes years. Like $15B to $20B.
True, but my comment was more along the lines of instead of producing millions of chips in current operating factories for Bitcoin mining computers, focus on make the chips instead for other things like automobiles were chips are also needed.
 
True, but my comment was more along the lines of instead of producing millions of chips in current operating factories for Bitcoin mining computers, focus on make the chips instead for other things like automobiles were chips are also needed.
Sure. The problem was the car companies cancelled chip orders that were in place because they expected a big downturn. That downturn was very short lived and the car companies got cought with their pants down. The problem was 2 fold: chip manufacture and chip firmware programming. I'm sure oyu know Tesla was able to repurpose available semiconductor chips becasue they are a tech (software) company. No other major car company does so. Ford has decided to bring some of the programming in house, which I applaud. Smart move!

Bottom line is, changover takes time (and $$) and automakers shot themselves in the foot. Obviously they have yet to fully recover.
 
Sure. The problem was the car companies cancelled chip orders that were in place because they expected a big downturn. That downturn was very short lived and the car companies got cought with their pants down. The problem was 2 fold: chip manufacture and chip firmware programming. I'm sure oyu know Tesla was able to repurpose available semiconductor chips becasue they are a tech (software) company. No other major car company does so. Ford has decided to bring some of the programming in house, which I applaud. Smart move!

Bottom line is, changover takes time (and $$) and automakers shot themselves in the foot. Obviously they have yet to fully recover.
There was also a big fire in 2021 at one of the primary chip suppliers for the Japanese Auto's. https://www.wsj.com/articles/renesa...erns-about-global-auto-production-11616414181
 
It looks like Verizon VZ has bottomed and gives a nice 6.5 Dividend
They carry a lot of debt but much is ST and they handle the load. As they say, VZ, T etc are bond stocks. I own both. And sell covered calls on them for every share I own. It really is a sweet deal boosting the yield. The biggest temptation/fear and it's not THAT bad, is that I try to max that call premium and then come Jan 20 or April 21th or whatever, the shares get called, but still pocket the gain and that fat premium and the dividend in that span.

OK fess up, who is holding LUV?
 
They carry a lot of debt but much is ST and they handle the load. As they say, VZ, T etc are bond stocks. I own both. And sell covered calls on them for every share I own. It really is a sweet deal boosting the yield. The biggest temptation/fear and it's not THAT bad, is that I try to max that call premium and then come Jan 20 or April 21th or whatever, the shares get called, but still pocket the gain and that fat premium and the dividend in that span.

OK fess up, who is holding LUV?
I've never sold covered calls.Same as Options ?
 
I've never sold covered calls.Same as Options ?
Calls. Covered calls, yes options. You are SELLING at an agreed price, the right, but not the obligation (for "another" read: computer) to buy YOUR shares, at the agreed price, on the agreed date.

Who do you use for brokerage? I can tell you with Fidelity, it's super easy.
 
I use TDAmeritrade/Schwab their "Think or Swim" platform. It's easy. I'm a self-directed invester/trader for 15-20 yrs.

For the last 2 yrs, under the current national and international leadership, it's hard for me to be bullish on stocks. I've went 100% cash in late 2020.

So these days, I occasionally sell "stock" covered call options. I mainly like to sell "cash" covered put options. Both are bullish trades the way I do them.
 
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