Am just talking out loud...That one Fed policy maker really spooked the market today. I think everyone was looking hard at their balance sheets!! Yeah, everyone has talked about higher interest rates for years...It's just, this one seems real this time. I'll share two stocks and one mutual fund I own. Rip if you want...These are long term investments. They are out there in the lending markets...They are not going to like what they see. They may have to rethink expansion...How it will look. The first is EVGO. They make charging stations. They are small, but are growing. They have made contracts for future charging with Toyota and Subaru...Not chopped liver. It's easy to expand with cheap capital...Maybe not now. Next is UBER...They are built out a bit more than others. But, I am sure stock options and debt will be occurring at the worst time possible for them!! But, many people may rethink their driving habits and more trips could push this stock higher. I think this stock was hit by the possible cash squeeze rather than their business model. The last one I own is ARKQ...I still have made money on this one. But in their portfolio (aside from Tesla), most of their stocks are interest sensitive. You could have the best ideas and business plan out there. But, when interest rates rise, the sky looks like it's falling!! Even Tesla has to expand their service centers here and around the world. Yeah, an old guy rambling. But, I was around in 1979. If you were a business, you would go to your bank and accept at 18-21% short term rate for your payroll and expenses!! Forget expansion...It was survival.
I lurk on a couple FB stock groups, and some of these guys are really "memey." I tried pointing out to a dude that TSLA's P/E ratio was a teensy bit high. He didn't know what I was referring to. Is everyone in for a fundamentals wakeup call by May or is it just me?
It was yesterday. Brainard, the uber dove who turned into a total hawk with her comments at 10:05 AM ET. Look at your charts for confirmation of this. The down trend continued through today with Yellen at 10AM ET, normally a dove, going all bearish, and the meeting minutes at 2PM ET confirming the hawkish stance.
I just skimmed the headlines...Yahoo Finance. One last thought...There were great buying opportunities back in 1979-1982. Cash was king!! I assumed a loan on a duplex back then. Banks would make deals for fear of having to take back properties. Eyes wide open when interest rates rise...
Perspective, since Jan. 27th ( a little over 2 months ) : SPX 4326 --> 4481 +3.6% TSX 20544.11 --> 21788. 6 +6.1%
despite market going down...there are some stonks out there that go up multiple days or weeks. some of these stonks on my watch list that are doing great these past weeks: sgly and vrtx. you know how i find them? it is not thru words of mouth, cnbc, bloomberg, wsb, reddit forum etc. it is called homework (screening).
That is exactly when Icahn and Milken (as well as Drexel) started making their fortunes on the back of distressed properties. I believe Icahn started out by borrowing money from his brother-in-law and used that money to buy large stakes in distressed REITs. I think his first big win was at the expense of the Pritzger family REIT when he was trying to take them over with the help of Drexel bankers and in the end he made money from his infamous Greenmail schemes. He still does it today. Things never change I guess. Although I like how the LBO artists have renamed themselves Private Equity.
Everytime I come across the word "stonks" I get really agitated and each time it's just you using this term here. Now even seeing your nick written pisses me off. Something is off with this word that really plays with my mind.