[2020] A little stock market sense

[Brett]

The elite snob nitpickers said it could not be done. Trading in 5 minutes. Today I made 50 trades in less than 5 minutes using Schwab's Stock Slices where you can make 30 fractional trades at one time.

Today I was doing them 10 at a time reinvesting my year end dividends into those stocks that went down at the end of the year. I put my list in order from lowest market value to highest. I then took the first 10. I then took the one closest to the baseline and looked at the difference from the value to my baseline. Say it was $50. So I bought all 10 for $50 each for a total of $500.

Then I did the next 10 and did the same. Then the next 10. It took me 50 trades to have all my dividends reinvested where I wanted and that was into those stocks that were down.

Probably many "elite snob" day traders can trade stocks in 5 minutes or less (and non-elites too)
But consistently making above market returns ........ not so much

https://www.nytimes.com/2022/12/02/business/stock-market-index-funds.html

 

[WorldT]

A while back Janet said they weren't concerned about the National Debt because of gdp strenght. Now Janet is saying gdp isn't going to prevent a default. She said there will need to be extraordinary measures taken between Jan 14 and Jan 20. We all know why this is happening at that time and it's just one more reason to dislike all of the people involved.

Bill

I think you might be mixing up two different issues/topics. The national debt/gdp conversation is different from the debt ceiling/extraordinary measures.

A strong gdp theoretically will prevent default because the government will always collect enough money to service its debt. Of course, there is a breaking point. While we don't know what that is, we do know we haven't reached it.

The debt ceiling is an arbitrary number/limit beyond which the government can not borrow. The debt ceiling prevents the government from borrowing to function and service its debts (this is where the national debt and the debt ceiling intersects). Considering that the USA has been running on deficits (always borrowing) for over a decade, the debt ceiling (the arbitrary number) has been raised multiple times to another higher arbitrary number to allow for more borrowing. This has happened under multiple administrations because in recent years, the deficit has happened under every administration after Clinton.
The extraordinary measures she mentioned that may start in the second week of January is due to the government maxing out its borrowing ability due to the arbitrary limit. The extraordinary measures is just moving money around to pay for basic functions and service government debt.

 

[Brett]

I think you might be mixing up two different issues/topics. The national debt/gdp conversation is different from the debt ceiling/extraordinary measures.

A strong gdp theoretically will prevent default because the government will always collect enough money to service its debt. Of course, there is a breaking point. While we don't know what that is, we do know we haven't reached it.

The debt ceiling is an arbitrary number/limit beyond which the government can not borrow. The debt ceiling prevents the government from borrowing to function and service its debts (this is where the national debt and the debt ceiling intersects). Considering that the USA has been running on deficits (always borrowing) for over a decade, the debt ceiling (the arbitrary number) has been raised multiple times to another higher arbitrary number to allow for more borrowing. This has happened under multiple administrations because in recent years, the deficit has happened under every administration after Clinton.
The extraordinary measures she mentioned that may start in the second week of January is due to the government maxing out its borrowing ability due to the arbitrary limit. The extraordinary measures is just moving money around to pay for basic functions and service government debt.

And I don't think Bill understands things like "earnings per share". The stock market is more impacted by corporate earnings, corporate sales, and corporate debt.

 

[easyrider]

I think you might be mixing up two different issues/topics. The national debt/gdp conversation is different from the debt ceiling/extraordinary measures.

A strong gdp theoretically will prevent default because the government will always collect enough money to service its debt. Of course, there is a breaking point. While we don't know what that is, we do know we haven't reached it.

The debt ceiling is an arbitrary number/limit beyond which the government can not borrow. The debt ceiling prevents the government from borrowing to function and service its debts (this is where the national debt and the debt ceiling intersects). Considering that the USA has been running on deficits (always borrowing) for over a decade, the debt ceiling (the arbitrary number) has been raised multiple times to another higher arbitrary number to allow for more borrowing. This has happened under multiple administrations because in recent years, the deficit has happened under every administration after Clinton.
The extraordinary measures she mentioned that may start in the second week of January is due to the government maxing out its borrowing ability due to the arbitrary limit. The extraordinary measures is just moving money around to pay for basic functions and service government debt.

It has something to do with bank liquidity. The word was to use up your credit lines while you can.

Bill