overnight US fed actions., page-3

First 3 Last

Share
Profile

Follow
ausheds

19,577 Posts.

4946

19/09/19

16:08

Post #: 40484480
Share

Originally posted by ContraryJ ↑

https://www.msn.com/en-us/money/mar...ght-lending-market/ar-AAHr9oG?ocid=spartandhp

How stable is the WW economy. Many see China and US as being very stable. Both are showing cracks. Very hard to know how bad China is. This overnight action by NY fed is the first time since 2008. The us spends 1.3 Trillion a year or so this 53 Billion is small in comparison. Even if Fed injects $200 B in the next week or two it is significant but not outrageous. The signs for a major correction are always clear well in advance. Signs like an inverted yield curve like we have now. If Fed had not taken action. we would be reading about an even larger inversion. The fact is there are always major warnings. Most people think they can react when it happens. Look at the most recent banking crisis lots of signs for over a year. Then a fairly small firm, Solomon Bros. closed and panic happened. It is very hard to out run panic. The first and hardest hit are speculative stocks and Lynas is firmly in that class. Old and stogy banking stocks had actual moved in to a speculative class, very high PEs before banking crash. If WW correction happens only those that were too early will be able to take advantage. Things like this you are either early or late nearly impossible to be right on time. I will be first to admit I have been early on this by over a year. Taking a defensive position has only cost me 3 % of yearly gain. Still made plenty after taxes and low inflation. I will avoid loses many time greater because of it, if we do have a correction. Lynas has a very bright future I will own it again. Is now the time you want to have a large position in it, or any speculative stock? It is up to you to decide.

Newer investors tend to go for the fast action and high gains of speculative stocks. I did years ago. I am not saying sell all your Lynas. Just take a look at your portfolio and asses the risk in today’s WW conditions. Not what you think any particular stock will do. If you have a high % of growth especially speculative growth and no value, cash and or principle protected investments think about vulnerability. Right now structured notes are outperforming DOW and S&P with a high degree of principle protection. There are some available for as little as USD 20K, some are more. Most are one year.

Expand

Lol CJ, I'm about half way thru selling my Fins, but then you still think RE is a commodity.

LYC Price at posting: $2.59 Sentiment: Buy Disclosure: Held
Upvote

0 Great analysis

Reply