Stocks - The Best Buys 2

[Shazam]

Didn't you guys write 0 day options that day?

[Nancy]

Well, so much for a calm start to the week.

[puckedoff]

Bought the dip on margin, and it keeps dipping. Nonplussed.

[Shazam]

So which of you ballers bought the dip?

[PaperBagger'14]

Originally Posted by Shazam

So which of you ballers bought the dip?

It’s all a dip if your portfolio is red enough

[DoubleK]

Originally Posted by Shazam

So which of you ballers bought the dip?

Do you think the bottom is in?

[Senator Clay Davis]

For now. And then next week Trump will say/do some insane #### and the market will tank. And then the week after he'll walk it back and the market will spike. And so on. More than ever it's about vibes over fundamentals, so who really knows anymore? Best of luck to everyone.

[Table 5]

I'm not sure if back and forth Tariff news will cause major panic again (since we're starting to be numb to the madness), but unless there's an agreement with China very soon, I have a feeling there's gonna be more dippin' once the actual ramifications start showing up in the numbers...which they haven't really yet. You can't have a massive disruption like this between two global powers (never mind the other countries) without some major economic damage being felt.

[Shazam]

Yeah I feel like it's a dead cat bounce at the moment.

[V]

I kind of lose track of the narrative, but this is Biden's market that's been up 9 days in a row, right? Thanks Biden!

[Senator Clay Davis]

The GOAT is retiring.

https://twitter.com/user/status/1918730332926333077

[Slava]

End of an era for sure, and while there were whispers that he could do this, I’m still a little surprised. I thought that he would work until he couldn’t or died. Perhaps the death of Munger gave home some new perspective on things though.

[Table 5]

Neato that it looks like the new Berkshire CEO will be an Albertan (even if from Shelbyville).

[Shazam]

Maybe he'll start to splurge and get a hash brown at McD's.

[Manhattanboy]

Well that was a nice time the market play for those that bought low a month ago.

Dow up 1,000 this morning.

[Bill Bumface]

Originally Posted by Table 5

I'm not sure if back and forth Tariff news will cause major panic again (since we're starting to be numb to the madness), but unless there's an agreement with China very soon, I have a feeling there's gonna be more dippin' once the actual ramifications start showing up in the numbers...which they haven't really yet. You can't have a massive disruption like this between two global powers (never mind the other countries) without some major economic damage being felt.

Agreed. This feels like an early 2020 opportunity again. Maybe not quite as obvious. Then we saw the pandemic was surely going to spread globally. Here, we have empty ports and a clear drop in consumer spending inevitably going to hit.

Younger me would be going on an SPXS buying spree today.

[Fuzz]

There is also the fact that we've been cranking a bull run for several years now, and a lot of stuff is probably overvalued. Inevitable we are going to see a pullback at some point on that alone.

The Buffett Indicator (aka, Buffett Index, or Buffett Ratio) is the ratio of the total United States stock market to GDP.
Buffett Indicator = Total US Stock Market Value Gross Domestic Product (GDP)

As of December 31, 2024 the ratio values are:
Total US Stock Market Value = $62.29T
Annualized GDP = $29.55T Buffett Indicator = $62.29T $29.55T
= 211%


This ratio fluctuates over time since the value of the stock market can be very volatile, but GDP tends to grow much more predictably. The current ratio of 211% is approximately 66.99% (or about 2.2 standard deviations) above the historical trend line, suggesting that the stock market is Strongly Overvalued relative to GDP.

Spoiler!

https://www.currentmarketvaluation.c...-indicator.php

[bizaro86]

Originally Posted by Bill Bumface

Agreed. This feels like an early 2020 opportunity again. Maybe not quite as obvious. Then we saw the pandemic was surely going to spread globally. Here, we have empty ports and a clear drop in consumer spending inevitably going to hit.

Younger me would be going on an SPXS buying spree today.

I like short SPXL much better, as it benefits from the volatility decay vs being straight long SPXS. Obviously both are higher risk strategies.

[V]

3x leveraged shorts are money incinerators, I would never recommend buying them. As I type this, SPX is down 0.8% YTD, and SPXS is down 9.87%.

[bizaro86]

Originally Posted by V

3x leveraged shorts are money incinerators, I would never recommend buying them. As I type this, SPX is down 0.8% YTD, and SPXS is down 9.87%.

Right, from the volatility drag. That's why (imo) it's better to short the 3x etf the opposite way from your macro opinion than it is to go long the one that matches your opinion.