Quite impressed with speeches from Carney, Ursula vDL , Carney today. Calling spade a spade and not using sugar coated wording.
seems the last straw is broken
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Why post it here then?
Why ask questions like this one in a topic like this one?
It was a good speech, but I hope we see more than wordsâŠ
No worries, that is only a managed fund, the SP500. Yes, the SP500 is a managed fund and the fund manager are even anonymous, so they can basically do what they want, all the power and none of the responsibilities.
Any index fund that sizes positions by market cap will do very bad now I suppose. I mean the biggest investments an index ETF holder makes are in companies that will not gain their stock price in 400 years. And that companies buy from each other on credit to make the numbers look better. Wouldnât touch those expensive companies with gloves, but they are probably more than 40% of any index ETF.
Iâm still up 9.29% in my momentum strategy and 2.5% in my dividend strategy YTD. Lost some today but way less than the indices.
Last year the indices lost 20% but recovered very fast. This time it may take longer. Or it may not happen at all. Nobody knows and that is alright. You donât need to know the future to be a successful investor, you only need to know what to do in any situation. Let the market tell you!
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I was definitely smelling something. Sell high buy low!
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Unfortunately, the Trump TACO threshold is a lot higher than a 2-3% market drawdown. Last time, in March/April it took a 20% draw down for Trump to TACO on tariffs.
It will get dirty because Europeans start to understand (rightfully so) that being pleasing to Trump or buying time isnât working.
I am expecting a 100% tariffs on Europe. Next we will probably see sanctions on top European leaders and a unilateral declaration of Greenland annexion.
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At least we will not be bored over the next months!
You always start negotiations with maximal demands.
I think it will probably go like âWe keep Greenland save from the bad Russian and Chinamen. You pay.â
What will the EC do? Shoot themselves in the leg? Probably, but that will only speed up things.
Live from Davos:
Panic over, markets back up today. Keep calm and carry on.
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Tacos tonight?
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Doesnât seem to hold.
Market remembering that the tariffs because of Greenland are not magically gone.
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Yeah, the main problem is still here. The 40% of most ETF that are invested automatically in the all-time most expensive stocks that ever did exist.
Proof? My momentum portfolio +1.9%, SP500 +0.4%. And yesterday I lost way less than the âmarketâ. OK, is unfair because I have little correlation with the market. But then, what is âthe marketâ? Some badly managed fund like the SP500?
Trump said exactly what he did say before. And he made some jokes about Emmanuel Macronâs black eye and the sunglasses. And that he refused to his requests for equal prices in pharmaceuticals 3 or 4 times until he threatened him with new tariffs, then Macron apparently said yes. This is probably a lie, but sounded good. Trump did say explicitly that there wonât be a violent takeover, but that means implicitly he will try to blackmail Europe and Denmark with tariffs. So nothing changed, same situation today like yesterday.
Markets are not markets any longer and as long as all the youngsters invest monthly in index ETF there is no change in sight. It does not matter that the companies in which 40% of the money of SP500 is invested will not make earnings reaching their market price in centuries because nobody analyzes companies any longer. OK, I doâŠ
I was up about 1% earlier today, but given half the gains back. I suspect the Greenland saga is just beginning.
Seems like no more tariffs: https://www.wsj.com/livecoverage/greenland-trump-tariffs-trade-eu/card/trump-calls-off-tariffs-on-europe-over-greenland-uJ1QWXMi6spyATVCMrEv
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TACO once again⊠
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And once again it worked.
Ended up +4.02% (I think a new day record) for momentum and +1.16% for the SP500. Thanks Donald, next please.
Wonder what that framework with Nato consists ofâŠ
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Soon it will be Friday again though 