The Official Stock Market Thread

[NYBBFAN]

Originally Posted by KhalDrogo

He put it in a bond fund, not a bond. So it’s not a locked in rate. Maybe the 8% was last year’s return. Or the return YTD at the time of the purchase. The 8% tells you there’s far more risk than just buying treasuries.

BigAl’s Used Car Senior Secured Bbb 2057

[KhalDrogo]

Originally Posted by KhalDrogo

Super pissed at the premarket rebound over the last 45 minutes. Can’t trade on Fidelity until 7ET. Nasdaq was down 85 points when I woke up. Now green. Booo!

And now even more negative. It was a sign!

[Blazed]

Originally Posted by KhalDrogo

Super pissed at the premarket rebound over the last 45 minutes. Can’t trade on Fidelity until 7ET. Nasdaq was down 85 points when I woke up. Now green. Booo!

That's the only reason I still have my Schwab (TOS) account

[Blazed]

Originally Posted by Josh611

I don’t remember the exact data point, but the S&P makes its high for the year in January or December over 60% of the time.

Don’t be surprised when it hits a new high in December. Barely down now.

For the guy looking at the value of a bond. You locked in 8%. Why even bother checking the value of it? It’s a paper loss that doesn’t matter if you hold to maturity. That goes to a lot of the people checking retirement accounts or money they don’t need now. Just let it do its thing and don’t get caught up in the day to day.

Still expecting the Dec run

Still expecting the Fed to cut next month even though it's a coin flip at this point

[pejc300]

Originally Posted by pejc300

I put a huge stack of money in a bond fund to be safe (annual return was 8%) as my financial advisor told me it would be good there as opposed to getting 4% in money market. It's down about 5k in the last two days. I had projected stocks would be going down, and I thought bonds were safer when stocks go down. What the hell lol

Originally Posted by NYBBFAN

What bond fund? The majority of them will be affected by the Fed’s December decision.

If you’re clipping the coupon at 8%, the value of the fund should be less important.

Originally Posted by KhalDrogo

He put it in a bond fund, not a bond. So it’s not a locked in rate. Maybe the 8% was last year’s return. Or the return YTD at the time of the purchase. The 8% tells you there’s far more risk than just buying treasuries.

Originally Posted by NYBBFAN

BigAl’s Used Car Senior Secured Bbb 2057

I'll be honest, this why I need to just learn. I sold a card for many hundreds of thousands of dollars which means my tax bill is also going to be many hundreds of thousands of dollars. I figured I have until April to try to get some interest on that money to maybe lessen the tax blow a little bit. I wanted something safe so that I don't lose the money, but also didn't want all of that money sitting there "only" earning 3.5-4% if I could help it. So I met with my financial planner and asked him what he would do. He was very clear there are no guarantees, but pointed me to one of the funds that they have (I use a financial planner who works for a company called Thrivent) that is strictly a bond fund and the average yield over the last year was I think 7.5%. He said it was a "100% bond fund" and said I could also do another fund that is a mix of 80% bond and 20% equities but if I am looking solely to protect my capital and gain a little better interest than a money market that he would choose the 100% bond fund.

I'm sure I'll be fine, but I guess I thought for some reason that when stocks go down, bonds tend to not move in the same direction so I was bummed that I lost a few grand immediately.

[eastbayak]

Funny to keep seeing GOOGL bouncing between certain levels (my understanding is that the current floors and resistance levels around around 295 and 300, respectively).

That means if it breaks through one, it'll keep going until it'll hit another level (of floor or resistance), correct?

[Blazed]

Originally Posted by pejc300

I'll be honest, this why I need to just learn. I sold a card for many hundreds of thousands of dollars which means my tax bill is also going to be many hundreds of thousands of dollars. I figured I have until April to try to get some interest on that money to maybe lessen the tax blow a little bit. I wanted something safe so that I don't lose the money, but also didn't want all of that money sitting there "only" earning 3.5-4% if I could help it. So I met with my financial planner and asked him what he would do. He was very clear there are no guarantees, but pointed me to one of the funds that they have (I use a financial planner who works for a company called Thrivent) that is strictly a bond fund and the average yield over the last year was I think 7.5%. He said it was a "100% bond fund" and said I could also do another fund that is a mix of 80% bond and 20% equities but if I am looking solely to protect my capital and gain a little better interest than a money market that he would choose the 100% bond fund.

I'm sure I'll be fine, but I guess I thought for some reason that when stocks go down, bonds tend to not move in the same direction so I was bummed that I lost a few grand immediately.

That's the mismatch here, the principal loss leading to interest loss (losing both ways) + the short window = you can’t wait for the yield to earn back the principal loss

Should have pointed you to a MM fund for what you were trying to do and being new(?) to this

[Blazed]

Originally Posted by eastbayak

Funny to keep seeing GOOGL bouncing between certain levels (my understanding is that the current floors and resistance levels around around 295 and 300, respectively).

That means if it breaks through one, it'll keep going until it'll hit another level (of floor or resistance), correct?

Correct, the path of least resistance opens up

$310 area or $284 area

[pejc300]

Originally Posted by Blazed

That's the mismatch here, the principal loss leading to interest loss (losing both ways) + the short window = you can’t wait for the yield to earn back the principal loss

Should have pointed you to a MM fund for what you were trying to do and being new(?) to this

I mean we did talk about MM but those seemed to be hovering around 4% and I guess with the amount of money I put in there I was hoping maybe to get 6-8% because it would make a massive difference. But it's clawing its way back and now that I run the numbers I guess it has only lost .4% of the capital whereas my Roth IRA (in equities) has lost 5% over the same time frame. I guess it just seems worse because of the amount in the other fund.

[eastbayak]

Originally Posted by Blazed

Correct, the path of least resistance opens up

$310 area or $284 area

Sweet, I'm slowly but surely learning, thanks to you/ajax/blackandgold and others.

Still need to learn more (or become more comfortable) about identifying the next areas of support/resistance (and ones after that).

In any case, appreciate ya'll!

[patchgenie]

do you think AI for drug discovery will become a hype thing next? like Schrödinger, but AI.

[mtr]

Originally Posted by pejc300

I mean we did talk about MM but those seemed to be hovering around 4% and I guess with the amount of money I put in there I was hoping maybe to get 6-8% because it would make a massive difference. But it's clawing its way back and now that I run the numbers I guess it has only lost .4% of the capital whereas my Roth IRA (in equities) has lost 5% over the same time frame. I guess it just seems worse because of the amount in the other fund.

You own shares in a bond fund, not actual bonds. There will be ups and downs just as if you were invested in equities. As you've now discovered, the 6-8% isn't a guaranteed return, just their average annual return. If I were you I would ask your financial planner two questions:

1) "Are you a fiduciary, and do you act as a fiduciary in all circumstances?"

and

2) "How is your compensation structured?"

This will let you know if they're acting in your best financial interests of if they're trying to push certain financial products on you because they earn a commision.

[pejc300]

Originally Posted by mtr

You own shares in a bond fund, not actual bonds. There will be ups and downs just as if you were invested in equities. As you've now discovered, the 6-8% isn't a guaranteed return, just their average annual return. If I were you I would ask your financial planner two questions:

1) "Are you a fiduciary, and do you act as a fiduciary in all circumstances?"

and

2) "How is your compensation structured?"

This will let you know if they're acting in your best financial interests of if they're trying to push certain financial products on you because they earn a commision.

Yeah, that all make sense. Again, my point was only that I thought bond funds might be sort of a hedge against equities, and I thought that in general if equities go down, bond funds either stay the same or maybe even tick upward. I now understand that is not the case.

Regarding the fee structure, I am aware of that situation as I do pay 1% annual on everything in my portfolio. Probably not great long-term, but I am at least aware of that situation. Thank you for your thoughts!

[mtr]

No worries, I just feel that financial planners are a waste of money for the vast majority of people. I think 1% is a pretty average fee but I would still try to find out if they are fee-only or fee-based. If they're fee-based then they can still earn commissions which is a conflict of interest.

[carlo16]

Originally Posted by pejc300

Yeah, that all make sense. Again, my point was only that I thought bond funds might be sort of a hedge against equities, and I thought that in general if equities go down, bond funds either stay the same or maybe even tick upward. I now understand that is not the case.

Regarding the fee structure, I am aware of that situation as I do pay 1% annual on everything in my portfolio. Probably not great long-term, but I am at least aware of that situation. Thank you for your thoughts!

In general it’s true but the market doesn’t operate in a vacuum.

[xbignick]

Alphabet can...not...beeeee...stopppeddd

[patchgenie]

Originally Posted by mtr

No worries, I just feel that financial planners are a waste of money for the vast majority of people. I think 1% is a pretty average fee but I would still try to find out if they are fee-only or fee-based. If they're fee-based then they can still earn commissions which is a conflict of interest.

I think thrivent is a "religious" tilted sales job. its how many you know...not skill. im too introverted and don't know too many people haha

I was looking into NXTC off of MRSN buyout.... similar drugs. low shares outstanding like 5.1 mil out after PIPE. a couple shots on goal 1st half next year for ADC's.

added VIR too.

[eastbayak]

Originally Posted by xbignick

Alphabet can...not...beeeee...stopppeddd

It's really been an incredible ride (and I got in quite late too).

[KhalDrogo]

Originally Posted by pejc300

Yeah, that all make sense. Again, my point was only that I thought bond funds might be sort of a hedge against equities, and I thought that in general if equities go down, bond funds either stay the same or maybe even tick upward. I now understand that is not the case.

Regarding the fee structure, I am aware of that situation as I do pay 1% annual on everything in my portfolio. Probably not great long-term, but I am at least aware of that situation. Thank you for your thoughts!

The 1% fee is the least of your worries if you’re buying the bond funds he’s pushing to earn a 50% commission.

Bought NVDA and PLTR today. Short week, low volume. Perfect blend for rising prices after the last few weeks. See what happens next week.

[pejc300]

Originally Posted by KhalDrogo

The 1% fee is the least of your worries if you’re buying the bond funds he’s pushing to earn a 50% commission.

Bought NVDA and PLTR today. Short week, low volume. Perfect blend for rising prices after the last few weeks. See what happens next week.

He said they were no load funds. What does he get a 50% commission on?

[mtr]

Originally Posted by pejc300

He said they were no load funds. What does he get a 50% commission on?

Some planners make a commission when you buy specific financial products from them. That's why it's important to understand how yours is being compensated. If they made a commission on this bond fund they've sold you on then they were obviously not acting solely with your best interests in mind when they made that recommendation.

[KhalDrogo]

Great week. Black Friday - Cyber Monday sales are looking hot. It’s going to be a December to remember.

[patchgenie]

PHVS seems cool. I'm gonna pick up this one and hold.
added EGBN. think they get sold. 37 TBV
I picked up KTTA too. VIR didn't pan out so well, only lost a little.

added PMCB as a QCLS play. they own 74% of QCLS.

[finfangfan]

Originally Posted by patchgenie

I was interested in QURE. I think they're essentially the VRTX of Huntington's now. do you think so?

Kind of following ABVX and derivative co's PALI/EQ.

I thought CBRL seems contrarian right now. mostly hated on, but the menu is quite a bit better than the last time I was there. do you guys go to Cracker Barrel?

CBRL getting crushed after hours… now below $25/sh.

[patchgenie]

I may have to buy some. like the logo is irrelevant to me. or biglari might just buy them at this rate.