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Talking stocks, trading, and investing in general

patrickBOOTH

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A lot of the big players out there, namely, Buffet has been saying stock market returns in the future are going to be low relative to the "recent" past. I am thinking that if this is true what does that look like for the corporate bond market? Especially in an economy like we are in now corporate debt seems like a good place to be given uncertainties about the future. If companies earnings aren't going to outgrow the debt yields might as well buy the debt. This leads me to my next thought, low interest rates are meant to stimulate growth, which grows corporate earnings, if that isn't working where it doesn't seem to be in a lot of places what's the rationale for equities? A company can cut dividends, but if revenues are coming in enough to satisfy debt payments it seems like a no brainer.
 

jbarwick

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what do people think of TIAA's RE investment offerings? these are different from REITs
Do you have a link to their offerings? Would be interesting to see what they are doing.

A lot of the big players out there, namely, Buffet has been saying stock market returns in the future are going to be low relative to the "recent" past. I am thinking that if this is true what does that look like for the corporate bond market? Especially in an economy like we are in now corporate debt seems like a good place to be given uncertainties about the future. If companies earnings aren't going to outgrow the debt yields might as well buy the debt. This leads me to my next thought, low interest rates are meant to stimulate growth, which grows corporate earnings, if that isn't working where it doesn't seem to be in a lot of places what's the rationale for equities? A company can cut dividends, but if revenues are coming in enough to satisfy debt payments it seems like a no brainer.
There have been quite a few articles on how a lot of Corporate debt is at the lowest level B rating. If a slow down continues, those companies could end up in the C rating range which puts them in Junk status and certain Institutional Investors cannot invest in them which could mean dumping them at any cost. You would have to be pretty savvy to jump on this opportunity to buy when others are selling and are hopefully certain the companies you are holding will pay back their obligations.
 

brokencycle

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Shorting Uber and Lyft.
You make a good point. They're using shareholder money to pay for people to get cheap car rides (I.e. driving efficiencies).

WeWork is clearly a Ponzi scheme, so the shareholders will get bailed out.
 

Piobaire

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My bond fund is down a point this last week. :(
 

jbarwick

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Why not short some of the other IPOs this year? Nothing is doing good except Beyond Meat.
 

imatlas

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Doesn’t WeWork have something like a billion dollars in annual lease payments and income of a couple of hundred million?

Sounds like a great investment.
 

jbarwick

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WeWork may not go public...can you short SoftBank? They are 0-2 with both WeWork and Uber currently...
 

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