Bulkdaddy's picture
Bulkdaddy
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Stock Market

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So if Biden announced as our next president... Do you think the stock market will soar or drop... Also with another lock down. I would put everything you have into Amazon... ;) Thank me later...

BJ's picture

I’m expecting a Drop! I’m personally pulling some my money out after the beginning of the year and moving it into real estate & the rest using my option to “Put or Call” that the stocks will go down on some. That’s when you make money when the stocks go down! Think about it...“What goes up must come down” I recommend doing options to “Put”. I put an explanation link below

https://www.learn-stock-options-trading.com/puts-and-calls.html

dbombs's picture

Terrible advice. Most people don't have the knowledge, experience, or risk tolerance to speculate with options. And your link barely scratches the surface.

This advice is dangerous and speaks to why most investors shouldn't use options, except to provide partial or full hedging of a position.

Pale's picture

I agree, puts are dangerous. Good advice

iFit's picture

Way too late to act on that news. The market started factoring in Biden’s win weeks before the election not on Inauguration Day. The only uncertainty now is the senate race in Georgia. The market is predicting a republican win which would control the progressives and the tax hikes. If you wanted to take a big risk and big reward you could short the market and hope for they are wrong.

Amazon... can it still keep going up? Sure. But that news has already been built into the stock price.

My point is by the time the average person thinks (or most likely reads) about it, 99.9% of the time it’s too late. The smart money got in a long time ago.

Pale's picture

I have tripled my trading account since the election. iFit is right

iFit's picture

Exactly. Unfortunately, now is the time most non investors start reading about the gains and their friends start talking about it and they jump in head first. Happens every time. No one ever talks about that time they went to Vegas and lost $10,000. You only hear about that one time they went and made $5,000 in one hour so the dream lives on and on. Need to try to think a step ahead of the masses not join the parade after it started.

Pale's picture

And if you have access to somebody (you usually will pay 50-150 a month) if they are good it will be worth it in spades. Most of us are braindead cavemen and the sooner we recognize that the more money we will make. That doesn't mean cavemen can't come up with a good play but there is soooo much going on in the market at any given moment that most people never see. The real G's of trading see all that shit and act accordingly.

Pale's picture

That said we said the same thing last December about Amazon then they did a fourth Q blowout

Pale's picture

First mistake you are making is that you think the stock market is supposed to make sense and follow fundamentals. I promise you that will be a losing strategy.

Greg's picture

Where else are you going to put money with interest rates as low as they are? The market is way over extended. FANG stocks, Tesla et al are going to see a correction at some point.

That's not to say that those companies still aren't long term winners. Think of it like buying bitcoin in 2017 at $18,000, it took 3 years to see a profitable return.

Pale's picture

I made a nice chunk on BABA week before last on some long calls

Pale's picture

And I would say don't unless you have done so on paper for a long time, taken part in training or are following someone that knows wtf they are doing. Worst case scenario you get lucky right off the bat and hit a 200-500% homerun and then foolishly think you know what you are doing

Pale's picture

You can do that with options as well. But options (especially weeklies) there is no do-overs. There is decay and you can lose your entire premium. The flip side is a 5-10% move in a stock can be much, much higher percentage on an options contract. There are also a dozens of ways to play options, but again it is also casino like and it usually feels like the house has a huge advantage lol

wanted's picture

Amazon stock nooo way
3,162.58 a share even if it drops to 1700 theres better cheaper stocks to make more money on

Bearded_muscle's picture

President is basically a figurehead. Very little impact on what actually happens COMPARED to the impact people seem to think he has.

He’s a logo. Helps a little with international perception.

I hear a lot of people whispering about how the economy will “definitely crash” but let’s be honest, you think a 70 year old white male career politician scares the shareholders? It’s more of the same man. Nothing to worry about IMO.

Bulkdaddy's picture

I think if there’s another country wide shutdown the stock market will crash...

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Goose24's picture

If Biden gets in it will eventually drop. The taxes he’s planning on imposing on business will start driving them back out again. If Trump pulls it out then I think things will continue to climb. I’ve made a lot of money the last three years and have put everything to the side as of a week ago. Part of me wants Biden to get in only because I know it’ll be a good buying opportunity but the other part doesn’t.

Pale's picture

The election is over, the market digested and decided it wasn't upset. It could get more turbulent if the Georgia senate race goes dem, but that is not real likely. But with that said everyone is kind of hoping for a pullback of sorts so opportunity can open up. Long calls are much better than weeklies in the current environment

Bulkdaddy's picture

Agree 100%

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Greg's picture

The market always goes up. Fund managers will reshuffle their holdings accordingly... It's the job market and small businesses you need to worry about.

Bearded_muscle's picture

The small business market has been absolutely gutted over this past year.

Halsey's picture

Yep, so true. Tax revenues are fucked. Every state is going to have serious trouble paying the bills.

Bulkdaddy's picture

It does always go up but also depends on who is in office of how much it goes up. Depending on the foreign policies and other policies...

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maddogg's picture

I don’t think it will soar or drop although there could be a near term correction as I believe the market is fully priced, though I’ve been wrong before. Wall Street likes Biden. The market will continue to climb over time without a black swan event. My concern is a K shaped recovery where the market goes up but not all boats rise. Which I think is what Greg is saying. Leaving main street and the working man behind.

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Bulkdaddy's picture

Yea I agree with you as well...

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