Eye on the Markets: Coronavirus Stocks/Investments thread
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New York’s Plan for Sports Betting Could Be Great for DraftKings Stock
The surge in the shares of online sports gambling leader DraftKings in the past year has been driven by expectations that the country’s most populous states—California, Texas, Florida, and New York—will legalize the business in the coming years.
The surge in the shares of online sports gambling leader DraftKings in the past year has been driven by expectations that the country’s most populous states—California, Texas, Florida, and New York—will legalize the business in the coming years.
definitely a bad day for both gold and silver. Despite this everything sets up well, debt,fed printing,more stimulus,weak dollar. Hard to be buyers of bitcoin at $40,000,could of bought at $4100 last March. Market with high valuations as well but probably ok until their is no more stimulus(may be a year)then watchout as companies wouldn't have the covid execuse. Then youll have no place to put your money,execept gold and silver as inflation will rise fast as we get back to normal as companies raise prices to make up for lack of business during the pandemic.
I have been thinking that since the market hit bottom last March, but so far I was wrong. The fed and stimulus have saved the market, and with more stimulus on the way and Biden unlikely to raise the corporate rate until the vaccinne is administered for all,I d.on't think it will happen, until everyone has the vaccine, thus no more stimulus,=real earnings, thus the market will tank. Since I respect your opinion tell me why you think it may be sooner.
Going back to March, the market was in the most oversold situation ever. Worse than March of 2009. But there was a lot more unknowns; the virus was raging out of control, there was not yet any therapeutics and a vaccine was far in the distance. It was maybe March 20th or 23rd and Bill Ackman goes on CNBC. He's going on about how horrible things are, wondering if the world was coming to an end, but toward the end of the interview, he basically said "but we think we are at a point where we have no choice but to start buying because the market is so oversold". And that was the bottom. It turned on a dime. But inflation will be a big problem. We are already seeing it in commodities. Bitcoin and Tesla have been obvious bubbles. I even own shares of the blockchain ETF, but I do have a stop loss. The faster something goes up, the weaker the support levels. It could continue to chug higher, strictly due to money printing, which is nothing more than a sugar high. Too many small businesses have gone under; those individuals and their employees will have problems getting new jobs. That will lead to ultimately less spending, and be another factor in falling earnings. Are we at the top? I don't know but I believe we are much closer to the top than what will be the bottom of the next downturn.
Few investors should go to zero or move everything from one class to another. US market is definitely getting toppy and probably needs a solid correction in the next few months. Will it just be that or a full blown tank, probably more likely to correct but one never can say for sure. But still its a fools game to think you can beat the market by doing anything more than very thoughtful rebalancing. My money has been shifted more to value in the US and a number of developed and developing nation funds outside the US. What does seem almost certain is your swimming against the current if your investments are mostly US dollar right now.
All these Reddit and Robin Hood morons driving up a rat like Gamestop to laughably insane levels. Railbird talks about the Rapture.......we may be seeing it in the financial markets when a garbage can like GME gets driven up 5x in a couple months. Are we in late 1999 all over again? A brick and mortar retailer......what could possibly go wrong?
I think what this all has shown is the minimal involvement up until the last year of the retail investor. Everyone in the industry talked about how hard its been to get them to meaningfully be involved as relatively few people actually own stocks, not ETFs or index funds. Well Robinhood and now Reddit show if these people get involved they can overwhelm the system pretty easily. Shorting companies with bad numbers has been easy in the past, no value investors would ever get involved and the only hope to push the price up was to announce a sale or get an activist investor in clamoring for management changes. Those are one-time events with only minimal risk. These Reddit driven short squeezes are a whole new ballgame, so is the surge in options trading. This interest from the public will eventually end as these "kids" always find something new to get their attention and it will cause a pretty big market drop in a short time, but I don't know if we are even near that point yet.