Thanks for your insights! I was waiting to here your take on an interesting week. Unfortunately, I didn't notice you posted yesterday.
From my perspective we had a great week, then a 2 day fall, followed by a one day rally and today it fell again. I lost a little, but still am in the black. Lowes, Walmart, TJ Max, Dollar General all seem to be doing well although they dropped a little.
I spoke to you about an IPO (UIPath). It did well in its first few days in that it shot up $10 or so. Never bought in and no regrets! It was touted highly so perhaps investors were just being sheep. Obviously if I had foreknowledge I would've. But I plan to stick with my plan.
Seems to me that the market is over reactionary. A slight prophecy of bad news sends people into panic. Just seems strange to me.
If I may ask a question: you (John DB) don't seem too big on foreign markets. I am from the USA, so I mean Europe and especially Asia. Is that the xase, and why?
Thanks
I personally have never traded much in them. And usually when I have it's been a company that trades here in the States. Reason being is that our laws and rules are what I know. Getting the account set up and then traded requires some extra paperwork (AKA extreme torture) in setting up and then taxes to pay and conversion fees even when there's a favorable trading exchange. Like I just mentioned previously. (Won vs Dollar)
Most of the exposure I've had (tried and failed) was through mutual funds/ETFs that did that sort of for me...and I get that the return rates would be reduced...but losses have been my experience in those market places.
And if I understood them better... maybe things would be different.
Some people know that stuff so much better than I do. (I'm not a professional...just a guy who has some experience and expertise in market moves)
Most of your large manufacturing companies have some kind of international footprint. Even LPX has manufacturing facilities in Canada, Brazil and Chile. (Headquarters are here in Nashville)
Where other companies like ABEV are beverage makers in South America but traded exclusively in the States. Others just have a representative stock traded in America but are traded internationally. (Now I'm drawing a blank...and I was really looking at one to invest in but the gears in my head are grinding and can't find the gear...it was a european company)
But for me to trade in a foreign exchange? Too much trouble and risk. HYMX is another...they are solely a Taiwanese company traded here. (LCD driver's and screens) again posting great profits and good solid company that, on no news whatsoever, can drop 18% in one day. Market manipulation going on with no "citizen of America" to complain about the loss of capital. (Even though plenty of americans owned the stock)
And possibly the reason for the market upset of late is that money is moving en masse to bond and bond instruments recently. Interest income isn't taxed the same as capital gains. (Albeit very low returns) but when you are a multi billion dollar fund...that's all you are going to get anyway.
Those retail stocks you own did indeed hold up through yesterday's nightmare. I was noticing that as I looked at things like Colgate and WMT. (MAT had something going on with them...they were up and down...I exited when I looked at the short interest rate and short sales with my considered lucky profits)
Either way... you (and I'm doing this myself) am going to be working on taking profits here soon in my positions and letting the money sit in cash for a bit... until the market calms down and returns to normal life. It's always been skiddish. But massive money moves like this aren't exactly normal. It requires hundreds of millions of dollars to unreasonably tank a stock like Micron. And it has! Most of the largest brokerages are scratching their heads over this. My suspicion is that there's a fight amongst the wealthy elite (1%ers) that was ideological turned personal and now vicious. Usually they just don't care...but now they have gone nuts while quarantined.
The simplest of things have become unobtainable because of supply chain interruptions. Even the manufacturing of vaccines is being blocked by them.
They use some simple things. Salt by the pallet that used to show up in 2days after ordering now is going to show up in November. (Salt mfg are behind) and that is just one example. Memory chips for your cell phone or camera might be out of stock at your local electronics store. Certain items are also missing intermittently at the grocery store. Get used to it...these supply chain issues are going to be with us for a while yet... probably a few years.
It's going to be real fun when building residential homes but it can't move forward because there is no wire or plumbing available for the contractors for a few months. Stupid stuff like that...
But the futures are showing green across the board. Rough lumber stayed up yesterday. (Contractors don't care about anything but the jobs...they keep working no matter what the weather...that's why I like those guys)
Ought to be a good day today.
Just remember the hashtag #StuffasockinitJoe. Maybe he will get the message. I'm A-Political...I just don't care. I'm not ignorant...I just don't care to participate. I wanna stay out of his world and ask that he show me the same courtesy.