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Buying puts before 10 am tomorrow?


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I actually bought some calls today.

 

Yup, VIX calls before Powell. Then they lost me a lot of money until the imbecile started Tweeting. Then proceeded to sell them for a decent profit.

 

It is a very small consolation for a very bad day.

 

So where do we go from here? Do you guys still think that a deal with China is possible?

 

Calling Xi the enemy, ordering companies to move out. I mean, this is going too far.

 

Cardboard

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Yea....

 

I am about as big an advocate of much of Trump's tactics, and rhetoric in terms of slapping back many of these loser lefties.... but Im sick of this kind of uncalled for nonsense and the constant bullying where it isn't needed. HE picked Powell. And now the guy can't breathe without Trumps rampant bullshit. The market liked what Powell said today. Then Trump starts in AGAIN...unprovoked. HE escalated things with Xi. Then today HE comes out of nowhere with a bunch of 10 level responses to a 3 level action... We'd be several hundred points green today and because of this idiot we are probably finishing 500+ points lower with a setup for a really, really, nasty Monday...Give me Biden.

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Shouldn't you guys be hoping for lower prices, not higher ones? Part of me would kind of like it if Trump just came out of no where and banned all trade with China (though I'd prefer for people not to get hurt in the real world). I wouldn't be surprised at all if he does that if he loses in 2020.

 

 

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Generally yes, lower prices are good. And Im all for it, as I've said before, to an extent. The extent, is that these "things" have to be short term issues, or undoable. Trump has gotten so far off base that some of this may be irreversible. Then, "lower prices" just turn into "the prices", or worse, "the high prices". For instance, if you're long some of these companies with China exposure, the rhetoric gets you a nice little entry. If and when things are fixed, you're all good. But to the extent the rhetoric escalates and goes on too long, or like today, becomes real, so then to do the impairments...

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Generally yes, lower prices are good. And Im all for it, as I've said before, to an extent. The extent, is that these "things" have to be short term issues, or undoable. Trump has gotten so far off base that some of this may be irreversible. Then, "lower prices" just turn into "the prices", or worse, "the high prices". For instance, if you're long some of these companies with China exposure, the rhetoric gets you a nice little entry. If and when things are fixed, you're all good. But to the extent the rhetoric escalates and goes on too long, or like today, becomes real, so then to do the impairments...

 

I can think of many things that more irreversible than trade issues. Capitalism tends to heal most wounds long term. ;)

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How do you reverse a brainwashed, irrational electorate?

 

Do away with politics!

 

That said, what you described is a predictable element of the equation. We know how both sides react to things typically and adjust our expectations based on such.

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Part of me would kind of like it if Trump just came out of no where and banned all trade with China (though I'd prefer for people not to get hurt in the real world).

 

I can assure you that a lot of people will get hurt in the real world if he were to do this.  Job losses, financial losses, inflation, the inability to buy essential goods, ... it will be amazing. 

 

If I were President and I wanted to see the country burn I would seriously consider doing this.  Maybe launch a few nuclear missiles too while I'm at it, because why not?

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Part of me would kind of like it if Trump just came out of no where and banned all trade with China (though I'd prefer for people not to get hurt in the real world).

 

I can assure you that a lot of people will get hurt in the real world if he were to do this.  Job losses, financial losses, inflation, the inability to buy essential goods, ... it will be amazing. 

 

If I were President and I wanted to see the country burn I would seriously consider doing this.  Maybe launch a few nuclear missiles too while I'm at it, because why not?

 

Yes, I'm sure.  That's why the selfish part of me that likes cheap stocks wants that to happen. With that being said, I think the US has had it easy for too long. A bit of economic suffering builds character long term. I know it did for me.

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"Shouldn't you guys be hoping for lower prices, not higher ones?"

 

Sorry but, this is the Warren Buffett typical line because he sits on billions in cash and has recurring free cash flow coming in weekly which he doesn't know what to do with.

 

Could also be advantageous to a regular salary earner who saves monthly into ETF or funds.

 

I don't think that any of us here are in this situation or at least those actively investing. My view is that if you can't find bargains at our size, you are lazy.

 

Therefore sure, these selloff's offer opportunities but, when you are already close to fully invested (if not at our size you are a market timer or again lazy) it hurts from the process/goal of buying cheap, selling, then repeating. A stable market works better for value to be recognized vs these ups and downs of the general market when everything tends to be heavily correlated.

 

The other logical alternative is to sell something that is cheap to buy something cheaper during these sell-offs. It works but, it is hard and sometimes elusive.

 

Cardboard

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Cardboard's posts today in this topic actually made me - finally - try to read up a bit the Presidential Powers of the POTUS [i used the Wikipedia article about it, just for starters].

 

I realized the concept of "Commander in Chief" and that declaration of war is a congressional matter. Where is line between these two concepts? How should we think about it in this actual context? [Trump, Xi & the US/China trade dispute].

 

This "thing" started on March 1st 2018 [Link]. No end/solution/agreement in sight so far.

The last couple of days I've been studying a few small Danish banks, that - on surface - seem dirt cheap. Perhaps I should consider one of those Fentanyl patches instead. The user experience reads fantastic.

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"Shouldn't you guys be hoping for lower prices, not higher ones?"

 

Sorry but, this is the Warren Buffett typical line because he sits on billions in cash and has recurring free cash flow coming in weekly which he doesn't know what to do with.

 

Could also be advantageous to a regular salary earner who saves monthly into ETF or funds.

 

I don't think that any of us here are in this situation or at least those actively investing. My view is that if you can't find bargains at our size, you are lazy.

 

Therefore sure, these selloff's offer opportunities but, when you are already close to fully invested (if not at our size you are a market timer or again lazy) it hurts from the process/goal of buying cheap, selling, then repeating. A stable market works better for value to be recognized vs these ups and downs of the general market when everything tends to be heavily correlated.

 

The other logical alternative is to sell something that is cheap to buy something cheaper during these sell-offs. It works but, it is hard and sometimes elusive.

 

Cardboard

 

Are you retired?

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Civ VI: Donald vs. Xi

 

I've got tariffs!

 

I've got tariffs!

 

I've got nukes and tariffs!

 

I've got nukes and tariffs!

 

I've got space program, nukes, and tariffs!

 

I've got space program, nukes, and tariffs!

 

I've got Greenland, space program, nukes, and tariffs!

 

...

 

...

 

...

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Part of me would kind of like it if Trump just came out of no where and banned all trade with China (though I'd prefer for people not to get hurt in the real world).

 

I can assure you that a lot of people will get hurt in the real world if he were to do this.  Job losses, financial losses, inflation, the inability to buy essential goods, ... it will be amazing. 

 

If I were President and I wanted to see the country burn I would seriously consider doing this.  Maybe launch a few nuclear missiles too while I'm at it, because why not?

 

But Trade is a congressional power.  They have delegated it to the president but it would be relatively straight forward to change back to Congress. If Trump banned all trade with China after loosing the election, you would hope the Republicans who survived would band together with Dems to reverse course and take trade powers back - it would serve their donors, constituencies and limit powers of the next dem president..

 

Got to love the party that is constantly warning the other party is a socialist, standing by and supporting the 'hereby ordering' of private companies to work against their own economic interests. 

 

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I’m not as informed about the mechanics but I’ve heard similar stories. And I do find it quite bizarre that the President is allowed act like a dictator when it comes to tariffs...  Anyway, if what you say is true I agree that Congress ought to do something before it’s too late. 

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