Investment BS Thread - Stocks/Futures/Mutual Funds/Bonds/Commodities/Options/ETFs/401ks/Etc

I'd find it weird for him to keep investing if he thought fake. However 2 mil is insignificant for a CEO, and he could do that to build hype in stocks as well. 50/50
https://www.cnbc.com/2019/08/15/ge-ceo-larry-culp-bought-companys-stock-after-fraud-accusation.html

 

I watched an interview with the whistleblower on CNBC, and he was very candid. If he made this up, he wouldn’t be giving interviews and answering any and all questions. He’d be saying “no comment.” I say this because the potential prison sentence would be insane for manipulating the share price. He was working with and “unnamed” hedge fund on it, so I doubt he isn’t confident in his report. He also turned the report over to the authorities.

I’m with you though, could be a very sophisticated share price manipulation.

 

Here’s the worst part of the stupid situation. The only winners in this will be those who buy now and the allegations be false. At best I may be made whole again if allegations are false and break even and who knows how long that could take.

I kinda feel I could sell now and take my loss or risk losing bigger, chance of break even is long term now.

Just my uneducated thoughts though

 

I can’t even imagine the fallout of it’s a false report. He’s accusing GE of being worse than Enron, but if he made that up, he’s a whole lot worse. It would just be too crazy to do that, that’s why I think there at least some truth to it. You’re right though, the harm is done to the shareholders no matter the outcome.

You can put your money in a better “General” company, General Mills (GIS). I got in last year, up about 25%, and a 3.61% dividend!

 

So when is ge gonna get a bailout? Somebody has to build our airplane engines.
So who thinks well see a few too big to fail bailouts, except theyll be worded differently from too big to fail and wont be ccalled bailouts.
"This company employes to many people to get get dissolved and sold off to the highest bidder, so were setting them up on a government sponsored business stimulus subsidy package"

 

On the heels of the GE insurance debacle, I read this morning that Disney is alleged by a whistle blower to have overstated revenues to the tune of billions. Feels like 2007 up in here!

 

Also, I read that the President is considering a cut to payroll taxes (SS and medi) to boost the economy. What’s everyone’s politically agnostic take on this in terms of how it will affect the stock market?

 

I think it's fake news, the White House spoke yesterday in response to that, saying they weren't considering it. You have to sift through a lot of fake news (CNN, NBC, ABC, CBS, basically all of them), but the statement the White House issued shot that down pretty quick.

 

Could be 100% fake of course but I saw it on Breitbart earlier this morning, which tends to have more reality based reporting.

 

I don't know how this idea (or rumor) started, but I have CNBC on in the background at work. Someone from the White House (don't remember who) came on yesterday and said it was not being considered. They seem to be denying it now so who knows.

https://thehill.com/policy/finance/...ll-tax-cut-to-offset-worsening-economy-report

 

https://www.cnbc.com/2019/08/20/tru...yroll-tax-cut-despite-white-house-denial.html

Yes, we are...... No, were not.... Yes, we are.....

 

Based on historical evidence....

He has a lot of nutty ideas, very few of which reach fruition.

 

If it does happen, I plan to dump any savings into the market. So I hope it happens but we’ll see.

Social Security is already underfunded so I think the politics of getting it done will be tricky.

 

So my position in TGT is up like 20% today, 45% overall since I bought in last year. As cool as that is to see, I was buying in with a 4% yield, and it's obviously a whole lot lower now. I don't even want to buy anymore. As an income investor, I think I'd prefer a bear market to a bull market.

 

Make Stocks Cheap Again!

 

Well, at least you’ve made a few years worth of dividends!

 

I am learning when to buy, and when to wait. I'm not necessarily timing the market, but I have been comparing the 5-year dividend average to the current dividend. I figure stock price is usually going to revert to the average, so buying when the dividend is above the 5-year average seems to be a better time than when it's below it. I am specifically talking about Blue Chips that have been increasing for a long time, not speculative high dividend stocks.

 

Years ago there was a strategy called "Dogs of the DOW". It involved holding the highest dividend yielding stocks and then each year, selling them to buy the next batch of highest dividend paying stocks. The idea was that it was forcing you to buy low and sell high (in other words, if the dividend % decreased, the stock price must have increased). I was in a fund that did this. I never made jack squat.

 

I think that strategy worked, until people found out about it. They probably backtested it and realized how well it would have worked, but if everyone is doing it, obviously it stops working.

I buy with the plan to never sell, so it is less important if I pay $100 a share for Walmart, or $110. In 20 years, I doubt I'll even care. But that's how I am doing this, buying good companies, and hoping to live on the dividends if I ever decided to stop working.

 

This. I would be a bit worried if I was 55+ and looking to cash out and retire, but with 30+ years until retirement, day to day should not concern us young folk. If anything, a recession could be spun as a positive as it gives us a chance to buy low and hold. The market has always and will continue to come out ahead.