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Talking stocks, trading, and investing in general - Page 632

post #9466 of 11197
Your brokerage doesn't have a sweep account?

Most of them pull cash that is left at the end of the day and transfer it into a money market account. It is immediately available for trading from there...but it earns interest.
post #9467 of 11197
You're right, it does. Completely forgot about that. I get interest on the cash every quarter or so I believe. Nothing noticeable though against the total principal amount.
post #9468 of 11197
Are there any disadvantages to holding a VIX tracker long term? By long term I mean decades. I understand that the value will decay rapidly due to contango, but unless we never experience another recession again it should become profitable at some point no? Would it just be a race between the decaying and the time until the next market dip?
post #9469 of 11197
Quote:
Originally Posted by dizzy View Post

Are there any disadvantages to holding a VIX tracker long term? By long term I mean decades. I understand that the value will decay rapidly due to contango, but unless we never experience another recession again it should become profitable at some point no? Would it just be a race between the decaying and the time until the next market dip?

Never hold it long term. You will lose all the position as you've said. Besides, it's a strong mean reversion index. So you will bleed dry before the next market correction.

Hold it when it's in backwardation,m. If you don't have future pricing feed, could use ^VIX/^VXV > 1 instead.
post #9470 of 11197
Quote:
Originally Posted by Master-Classter View Post

question for you guys... what do you do with spare cash? I've recently been trimming/selling off a lot as mentioned and now have a fair amount of cash sitting around. Technically it's all been 'assigned' with various buy orders but i'd rather cancel these orders and just set up alerts and put the money to work doing something in the meantime. Should I buy some REITS, or Bond funds etc? I don't want anything risky per se, but at least something better than just cash sitting around doing nothing. What do you guys do?

Cash is an asset class and the base momentum factor against all investments alternatives.

Even by going into treasuries you are incurring pricing risk unless you plan to hold till maturity.
post #9471 of 11197
Dat Doha fail.
post #9472 of 11197
Is the SunEdison news going to crater things tomorrow?
post #9473 of 11197
Quote:
Originally Posted by chogall View Post

Cash is an asset class and the base momentum factor against all investments alternatives.
Even by going into treasuries you are incurring pricing risk unless you plan to hold till maturity.
Good points thanks. I tend to think more about upside than downside and forget that things like cash and bonds tend to anchor/keel the portfolio and stabilize gains/losses. I think I’ve just been fairly lucky with the various classes like REITS or whatever so was thinking why not park cash into them but yes of course they do swing up and down all the time.
Quote:
Originally Posted by lawyerdad View Post

Whether a particular investment is "better" than cash depends on how it does, of course.

That aside, if you really view this as cash you're trying to keep available for when entry points on stocks you're watching appear, my suggestion would be to keep in cash. If you start putting it into REITs or bonds because you're chasing yield, you're not only taking on the inherent investment risk, but also risking missing opportunities you're really interested because your "alternative cash" vehicle turns out to be less liquid than you thought (administrative hold ups, price dip just when you want the cash, whatever). If you've looked at an REIT or a bond fund and decided that it's a worthwhile investment or trading opportunity as part of your overall strategy, then great. But these things offer a yield for a reason -- it's compensation for the risk investors are taking on. They're not "just like" or "almost like" cash, and in my opinion it's a mistake to treat them as though they are.

As always, just my two cents cash money.

Thanks, and makes sense. I keep not looking at cash as an asset class and rather some state of static money that’s just losing out to inflation and potential gains and needs to be invested and earning something.

The cash I have there is just waiting to go into something else so I’ll take your advice and keep it that way. In all likelihood within a few weeks or months it’ll start being deployed again into what I’m actually looking to put it into instead of just ‘something else’ in the meantime, which as you pointed out will likely be less liquid than I imagine and more importantly carry risk inherent in the ‘reward’. Good points there thank you. Each asset class is it’s own thing and trading cash for another one doesn’t make it act like cash with returns.
post #9474 of 11197
Quote:
Originally Posted by Piobaire View Post

Is the SunEdison news going to crater things tomorrow?

My guess is they going to 7 since they alread restructured debt and equities for major holders. Which means equity is going to crater.

The major owners already got bailed out with their offering of share swap to converts earlier this year.

But then I am not an distressed investor nor a bankruptcy lawyer/banker.
post #9475 of 11197
Premarket down about 0.5%.

I'm going to bet that the markets close down around 1% tomorrow.
post #9476 of 11197

Globex 2061.

 

Quite a few not so good news from Asian companies on the Tech side as well.  Got good time arbitrage opportunities this quarter as US companies for this quarter is reporting a week later than the Asian dudes.

post #9477 of 11197

Out for a week and come back to solid returns in my accounts.  :slayer:

post #9478 of 11197
Can someone tell me why the market has soared from opening despite oil tanking?
post #9479 of 11197
Quote:
Originally Posted by dizzy View Post

Can someone tell me why the market has soared from opening despite oil tanking?

1. Not everybody ties their analysis to oil prices, and some equities are contra-oil.
2. http://www.reuters.com/article/us-china-economy-idUSKCN0XF0UK
3. Obamacare
4. Collective Intuition
5. headfake by the illuminati
post #9480 of 11197
6. I was doing some light buying today and accidentally moved the market.
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