patrick.net

I’m more excited about Apple than Tesla.
People actually buy a lot of Apple products and Apple makes a lot of money, while it crushes the competition.
$500/month/33 years is a million bucks, but it’s getting rich slowly using mutual funds.

I get it. Apple is a sure bet IMO.

I love buying my wife (and myself) Apple products. The last apple phone (pro max) has a mind blowing cam.

It's hard to argue with people who made a lot of money on Apple. I know several of them.

But personally I would not buy Apple because it's already the most valuable company on earth. Well, maybe second to Saudi Aramco now.

Like, is Apple going to go from $2.2 trillion to $4.4 trillion?

Apple went from about $800 billion to $2.2 trillion with declining sales and profits.

With the way income taxes have been going for major corporations, there is just no ruling out a negative income tax for corporations

Add in negative interest rates, and anything can go.

holy crap.....Tesla up 19% today :)

glad i bought tech stocks on the dip....thanks for the gift!

G36 says

All my stocks holdings are long term plays. I cannot see a scenario where Tesla, Apple, Nvidia are trending down for 5-10 years.
Nvidia is part of pretty much every aspect of EV's. The EV market is going to explode within the next 2-3 years. Considering marketcap etc., I wouldnt be surprised if Nvidia hits 750 dollars in the next 1-2years.

I never thought about the chip demand from self driving / high tech cars. That's a good point.

While I think the risk is pretty low near term, if some influential countries like the usa were to take a stance against crypto, I'd imagine this would crush nvidia and amd because they wouldn't be selling gpu's at anywhere near their current rates and forecasts.

Hircus says

if some influential countries like the usa were to take a stance against crypto

doubt it to be honest.
The US doesnt stifle innovation. elected officials approved the first crypto bank (federally chartered). Top 500 fortune companies hold BTC on their balance sheet. They got too much power. Even banks are now in on crypto. This will be big. BTC is no treat for the US Dollar. It will never be a day to day currency.

https://www.cnbc.com/amp/2021/03/08/how-the-young-plan-to-spend-stimulus-checks-deutsche-bank.html?__twitter_impression=true

A survey from Deutsche Bank has given an insight into how much cash from U.S. stimulus checks might find its way into the stock market.

Responses to the survey of 430 retail investors showed that half of 25- to 34-year-olds plan to spend 50% of their stimulus payments on stocks, leading the German investment bank to state that "a large amount of the upcoming U.S. stimulus checks will probably find their way into equities."

Meanwhile, 18- to 24-year-olds involved in the survey planned to use 40% of any stimulus checks on stocks, and 35- to 54-year-olds surveyed planned to use 37% of their checks on equity market investment. The over-55s surveyed said they'd put only 16% into stocks.

Patrick says

Responses to the survey of 430 retail investors showed that half of 25- to 34-year-olds plan to spend 50% of their stimulus payments on stocks, leading the German investment bank to state that "a large amount of the upcoming U.S. stimulus checks will probably find their way into equities."

exactly! The very next day when the stimulus package was approved/announced, stocks rallied.

My Nio, Tesla and Apple went up nicely. That dip was a gift.

Patrick says

A survey from Deutsche Bank has given an insight into how much cash from U.S. stimulus checks might find its way into the stock market.

Must be nice for those that get them. Not you Patrick, but you're welcome for those that receive them. And even if you do, it's not your fault. This shit is completely bogus though and the system is corrupt. Sick of it. I won't get the free money as usual, I just pay for it.

@WookieMan,

there is a wise saying: If you cant beat them, join them.

I'll translate: money printing and low interest rates inflate assets.

If you understand that, you are already ahead of many. I'll translate again: Buy assets (Stocks, RE, Bitcoin).

G36 says

If you understand that, you are already ahead of many. I'll translate again: Buy assets (Stocks, RE

Yes, I'm ahead of most. Your point? I have no interest in receiving a stimulus check. We need to open back up 100% and stop the welfare. Any inflation will work itself out and the debt is the debt, we won't be repaying it.

We're creating an unequal society that is going down the shitter between race issues, money issues, censorship, covid, government debt, etc. This is just more bad and I'm one of the 2 in 10 that pay 5 figures in federal taxes. Pisses me off.

Sorry, but I won't be joining the stimulus check crowd anytime soon.

good! As an asset holder you should not be too sad about stimulus. you benefit in higher asset values!
Again, if you cant beat them join them. Buy and hold assets.
Wild guess here.....usually, the people that complain the loudest have the smallest portfolios....;)

G36 says

good! As an asset holder you should not be too sad about stimulus. you benefit in higher asset values!

My taxes will go up. I have no choice and that money is gone. 50% of the people getting stimulus checks don't pay any federal taxes. Probably 60% pay less than $2,500. It's a negative feedback loop. Which poor people don't understand. Why should I have to make more to pay for the poor? It disenfranchises producers and makes the lazy poor more poor.

You can time it and make money for sure. The day of reckoning will come though. Who knows when. When the doers will shut out the takers. Occasionally worked in inner city neighborhoods in housing. The vast majority of those poor are likely to get $4-5k from this stimulus. They WILL piss it away. Our society is going to shit. Media and Hollywood are at fault. Part of my animosity towards CA. That place should be destroyed.

I’m against the waste of $1,900 billion of taxpayer money because it will not stimulate the economy and will cause an inevitable increase of taxes to just pay the interest on it.

About 1/2 the population have investments and savings, the other 1/2 lives month to month.

The $1,900 billion divided by American adults would be about $6,000 each.

$6,000 bucks per person would likely stimulate the economy for a while but could postpone people working again so in the long run it’s likely bad.

I’m yelling at everyone to invest because you will need more money in the future than before the gigantic government money spending recently.

Roth IRA and Health Savings Account invested in stock mutual funds are a must.

“Get mad you faggots!” Glengarry Glen Ross

clambo says

I’m yelling at everyone to invest because you will need more money in the future than before the gigantic government money spending recently.

Roth IRA and Health Savings Account invested in stock mutual funds are a must.

100% agree. Not investing in assets like stocks and RE is not an option. You'll continue to lose.

I would caution here, that rebound was strong but it came from a 5 days non-stop selling streak and it likely not going to last. While people should always have some money invested and diversified now is not the time to indiscriminately buy stocks, esp. not tech - IMO.

clambo says

’m yelling at everyone to invest because you will need more money in the future than before the gigantic government money spending recently.

There is no guarantee that the inflation will show up in high growth momo tech stocks which benefit from low rates, maybe better to invest in Dow / agriculture / energy stocks now.

That being said, the recent volatility is a perfect environment for day trading which has been muted during the long and boring decade long run-up since the 2008 recession.

@mell,
i get your comments but I am wondering what your timeline is? For me, investing in stocks is always long term. I am not a trader at all.
what are your thoughts on the growth of the EV market within the next decade? How should I think about the expectation that a boom in the EV market translates into higher stock valuation for companies that play in this market? (Nvidia, Nio, Tesla, GE, F, MSFT and many others)

G36 says

@mell,
i get your comments but I am wondering what your timeline is? For me, investing in stocks is always long term. I am not a trader at all.
what are your thoughts on the growth of the EV market within the next decade? How should I think about the expectation that a boom in the EV market translates into higher stock valuation for companies that play in this market? (Nvidia, Nio, Tesla, GE, F, MSFT and many others)

I think there are tech stocks that are safe to hold since they make a lot of money such as aapl, nvdia msft - that doesn't mean they won't get beaten down but it will likely be short lived unless we enter a full blown recession. I'd be cautious on tsla (due to it's sky high valuation/multiplier and increasing EV competition) and stocks that don't turn a solid profit yet, growth can quickly disappear and in a recession company that aren't profitable are punished brutally as there's always the risk of dilution or bankruptcy. I don't have a good read on longer term economic climate but 1) we're overdue for a recession and 2) this administration does not instill economic confidence. If you're young and holding forever then this won't matte that much, more if you're holding good companies or not, but eventually you want to use that money and buy nice things or you have to use it for some reason, then timing will definitely matter. The EV market will heat up and I think there are multiple companies that could eat tsla's lunch rather sooner than later. But tsla does much more than just EVs and will always have cult status. Generally renewable energies are sound due to the promotion by the administration, however China has been cutting margins with their cheap products in that space for a while now. My safest sector bet is always biotech, but there the risk is more with individual stocks. Generally energy, agriculture, defense and such do well in an inflationary environment, better than tech. So it may be time to revisit the good old dow for a change.

thanks mell for the clarification!

I am with you on most of it. BTW, I also hold biotech/life science. (Thermo Fisher Scientific for instance is one of my long term holds, 2020 was a record year for them).

"We're overdue for a recession" Are you basically saying, a "natural" recession that brings us down to the mean versus a one-off event like Covid?
To me, we just had a recession and are coming out of it (start of the next bull market). I dont think the FED will ever allow for a natural recession. Its manipulated by stimulus, money printing, depressed rates. That wont stop and the old saying that they wont have any tools left isnt true in my mind either. They can print forever, buy assets directly and even go negative on rates.

G36 says

thanks mell for the clarification!

I am with you on most of it. BTW, I also hold biotech/life science. (Thermo Fisher Scientific for instance is one of my long term holds, 2020 was a record year for them).

"We're overdue for a recession" Are you basically saying, a "natural" recession that brings us down to the mean versus a one-off event like Covid?
To me, we just had a recession and are coming out of it (start of the next bull market). I dont think the FED will ever allow for a natural recession. Its manipulated by stimulus, money printing, depressed rates. That wont stop and the old saying that they wont have any tools left isnt true in my mind either. They can print forever, buy assets directly and even go negative on rates.

Covid was not a natural recession, so I think we're due for a "normal" one. I agree the Fed will do whatever they can to prevent it from happen, but it will work only so long as the bond market is under control. It's difficult to say but the statement that we will never have recession again (which some pundits have voiced) is definitely a bold one. The Fed is mighty but not limitless. But we'll see!

mell says

It's difficult to say but the statement that we will never have recession again (which some pundits have voiced) is definitely a bold one. The Fed is mighty but not limitless. But we'll see!

I agree with that.....recessions will come.....but you need a black swan event like covid etc.

nice recovery on tech stocks....

I should have bought even more NIO....

mell says

the statement that we will never have recession again (which some pundits have voiced) is definitely a bold one

Sounds very much like "We have reached a permanently high plateau" in 1929. And boy were they wrong.

Patrick says

mell says

the statement that we will never have recession again (which some pundits have voiced) is definitely a bold one

Sounds very much like "We have reached a permanently high plateau" in 1929. And boy were they wrong.

Is it time to buy 30y treasuries

RC2006 says

Patrick says

mell says

the statement that we will never have recession again (which some pundits have voiced) is definitely a bold one

Sounds very much like "We have reached a permanently high plateau" in 1929. And boy were they wrong.

Is it time to buy 30y treasuries

Who knows, the more the government meddles the more difficult ot becomes to predict natural cycles and the severity. But the recent volatility is likely here to stay and this was just a good
rebound after a lot of selling which will certainly return sooner or later. I'm going with a sideways market with a good possibility of a recession in 2H21.

RC2006 says

Is it time to buy 30y treasuries

I don't really know, but I would think it's just the opposite.

Interest rates can't go down because they are almost zero already.

But they can go up in spite of the Fed. And when rates go up, bonds go down.

Patrick says

RC2006 says

Is it time to buy 30y treasuries

I don't really know, but I would think it's just the opposite.

Interest rates can't go down because they are almost zero already.

But they can go up in spite of the Fed. And when rates go up, bonds go down.

I thought US treasuries do better than stocks in depression style crash?

So much better to follow this thread with the Crypto Spammer on ignore. Thank you, Patrick, for the feature.

dang, I had a lot of limit orders and wanted to buy more tech stocks on the cheap-cheap, missed out on some and who knows if they fill.....wish those dips would last longer.

B.A.C.A.H. says

Thank you, Patrick, for the feature.

And I love my new name and symbol! Thanks Patrick :)

What do you guys think about this guys numbers? Are we on the cusp of our next crash, whats going to happen when people start foreclosing buy the millions?

https://youtu.be/ZFXObY99bXg

foreclosing by the millions? all these people that refinanced in the last 7 years have extremely low rates while rents and house prices skyrocketed.
People that own houses have tons of equity and jobs. People who got screwed by covid are low paid workers. They never owned houses in the first place.
Lets say you have had your house for a while, refinanced and lose your job. So what? You can always move back to a friend, mom and dad or downsize and rent out your house at a profit. Or you just live with roommates. You foreclose if you buy a house that you cant afford in the first place and then lose income on top of it. Those times are over. I live in a very nice area and none of these people look like they barely got into those million + homes. Vacations, nice German car's and pools in the backyard, many have dual high incomes. Obviously, your neighbor isnt telling you what they make exactly, but when you hear doctor, pilot, CPA, business owner (weed grower), supply chain leader, tech, etc, you know there is a good chance that all that stuff isnt bought on credit cards.

A bubble bursts after an euphoria phase. Since years we hear housing will crash. You hear nobody say, buy now or be priced out forever. Rates just inched up which puts pressure on house prices (a good thing). multiple years - each year - we hear foreclosure crisis.....I believe it when I see it.

I closed on a new construction (phase 1) as an investment. Surprised it was very much comparable to re-sale in terms of pricing. Minus the front and backyard (its just dirt). But sometimes I rather have dirt than demo all that shit out. Anyways, try to find good contractor, good prices and a quick timeline. Contractors can pick and choose in SoCal right now. Everyone works from home, people have money and get their yards done. concrete, lumber etc went up in price and are in high demand. I am betting on inflation to go up and house prices to keep climbing.

BTW., There is a very interesting area out of state where big corporations are planning sites. An enormous business park and I dont think that has hit the news yet and thats my next investment spot for a rental. So clearly, I am a housing bull for the next few years.

The YouTube is interesting.

Looks like a good strategy is to wait for a while if you want to buy a place.

RC2006 says

What do you guys think about this guys numbers? Are we on the cusp of our next crash, whats going to happen when people start foreclosing buy the millions?

https://youtu.be/ZFXObY99bXg

I agree with bitcoin here. You won't see any significant housing crash until jobs are lost in the millions, and we're talking upper middle-class, high paying jobs. The people working service jobs don't have houses in the first place, they're renters and that's why rents have been crashing. Also banks are really thorough these days and don't lend to people who don't have enough assets to pretty much buy the place for cash. You can still get jumbo and low downpayment loans from other lenders and FHA (but there's mortgage insurance needed there which would pick up the loss). Also the xi-den immigration policy of open borders will put enormous pressure on the low to mid level housing market as well as stabilize rents, central or south American immigrants don't mind packing a starter home with 5-10 people (the people losing out will be lower and middle-class Americans). Plus supply has been non-existent, it will take a lot of foreclosures to increase the supply significantly. That doesn't mean that shacks aren't overpriced. But I don't see a housing crash or even significant downturn until we enter a significant recession with high-paying job losses. Stock market will stay volatile and I don't expect any major gains, sideways and maybe even slight downward pressure.

Another reason there will likely be no housing crash is stagflation. Have you looked at lumber prices lately? Through the roof. Builders will not build many new units as there is no money to be made due to the high costs. The existing shacks will be bid up instead.

mell says

Have you looked at lumber prices lately? Through the roof. Builders will not build many new units as there is no money to be made due to the high costs.

I wonder if that will make steel framing more popular.

Hope you guys bought the dip! Stocks are up "bigly"!

HeadSet says

mell says

Have you looked at lumber prices lately? Through the roof. Builders will not build many new units as there is no money to be made due to the high costs.

I wonder if that will make steel framing more popular.

It's not just lumber its everything.