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Stonk Market Thread (Part Deux)

354 Views 11 Replies 4 Participants Last post by  UberBastid
So, the other one petered since after the market, and the US went to Hell.

But, there is as much opportunity in a bear market as in a bull.

I have been reading that auto loan defaults are way, way up. And expected to get worse ... soon. So, I go on line to find out who is making these stupid loans to stupid people ... which companies are going to take it in the shorts. I find that most are subsidiaries of large banks (Ally, Wells, Ford, etc) and the auto losses will (I presume) be absorbed by the performing loans the bank holds and gov't guarantees that only the large banks can get.
I thought there might be a short (sell calls, etc) play there in a sector ... but, maybe not.

Then I thought maybe a long position in so-called 'Defense Stocks'. The war in Europe is consuming a lot of perishables (besides people) and we and they gonna have to replace all that.

So ... in THIS climate ... what plays do ya'll see?

How about metals? Silver and Gold?
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They will sell the cars to someone else. Shrug
Yea, that's not reallly what I was posting about.
What I was talking about was companies to invest in during dark times (and they are a coming).
And I brought up the possibility of companies that loaned a lot on cars as an idea.

But, now that the pandemic is over, people don't care that much about investing. The crypto thing is over ... no excitement any more.
Historically I have made more money in down markets than hot markets.

I guess nobody here has.
The "chaos is a ladder" guru has made himself quite scarce of late, but, were he to return, he would have plenty to say on the matter.
I have some experience with Covered Calls.
Made a small fortune with CC's during the 80's.
The car industry intrigued me most because I'm tired of my Sentra. It's a bad loan on bad credit. Now my credit is better but inventories are zero and asking price too high. If a bunch of repossessed cars hit the market, is this a good thing for me?
If interest rates are 17%?
If down payment of 20% is required?
If gas is $10 a gallon?
If you can't find a job?
It’s no fun when the market kicks you in the fruit stand on a daily basis. There are tons of interesting companies selling at huge discounts right now. I don’t have any individual name ideas. I’m looking for the Nasdaq to retrace all Covid gains back to Feb 2020 levels (9800ish). That’s they level I will start buying more TQQQ. Nasdaq is still trading at 20x forward earnings (especially when earning expectations haven’t really been revised down yet) which is cheap. It just feels like the Nasdaq wants to get back to that precovid level.
What brokerage do you use?
I don't have $50k to 'invest', and many have huge minimum deposit amounts.
I use interactive brokers. I have no clue what their minimum is.
Yea, you rich guys are like that.
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