Anybody taking advantage of Coronavirus?

BMF

Bad Mother....
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Any metal bugs(gold/silver)out there?.....It's on....finally.

I have a small amount in a precious metals fund. I sold off most of it over a year ago for a nice profit. I have a few shares of SLV.....but I own no physical gold or silver.
 

Concrete Helmet

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I have a small amount in a precious metals fund. I sold off most of it over a year ago for a nice profit. I have a few shares of SLV.....but I own no physical gold or silver.
I like both but if this thing goes off as it is supposed to I'll sell the paper and keep the physical....Just ordered some more silver Maple Leaves because the premium on Eagles is just crazy($12)and added some more paper.
 

FireFoley

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FWIW. Can't remember the last time they were correct. It took 3 years after Greenspan utter the "Irrational Exuberance" words!

Fed warns about potential for ‘significant declines’ in asset prices as valuations climb

  • Rising asset prices are posing increasing threats to the financial system, the Federal Reserve warned in a report Thursday.
  • Fed Governor Lael Brainard said the situation bears watching and points up the importance of making sure the system has proper safeguards.
  • “Asset prices may be vulnerable to significant declines should risk appetite fall,” the central bank sai

Rising asset prices in the stock market and elsewhere are posing increasing threats to the financial system, the Federal Reserve warned in a report Thursday.

In its semiannual Financial Stability Report, the central bank said that while the system overall has remained largely stable even through the Covid-19 pandemic, future dangers are rising, in particular should the aggressive run on stocks tail off.

Investors have snapped up equities, corporate bonds and cryptocurrencies. They’ve poured billions into blank-check companies called SPACs, and the market has been mostly brisk for traditional initial public offerings.

Fed Chairman Jerome Powell and others have been asked repeatedly about whether they’re concerned over the rising prices. Powell specifically has said that as long as interest rates stay low, the valuations are justified.

However, the report notes that there’s danger lurking should market sentiment change.

“High asset prices in part reflect the continued low level of Treasury yields. However, valuations for some assets are elevated relative to historical norms even when using measures that account for Treasury yields,” the report states. “In this setting, asset prices may be vulnerable to significant declines should risk appetite fall.”

In an accompanying statement, Fed Governor Lael Brainard said the situation bears watching and points out the importance of making sure the system has proper safeguards. She specifically mentioned having banks increase their capital requirements during economic expansions as a buffer against downturns.

The report also mentions risk at hedge funds and other nonbank financial institutions on several occasions as potential threats to the system.

“Vulnerabilities associated with elevated risk appetite are rising. Valuations across a range of asset classes have continued to rise from levels that were already elevated late last year,” Brainard said. “The
combination of stretched valuations with very high levels of corporate indebtedness bear watching because of the potential to amplify the effects of a re-pricing event.”

The report notes that particular sectors including energy, travel and hospitality have particularly high vulnerabilities because of their sensitivity to the pandemic. The Fed also talks about potential threats from money market and open-end funds.

The Fed goes into a few specific scenarios that show potential risks to the system. It specifically talked about the Archegos Capital Management episode, when the firm could not meet margin calls, causing several large banks to take big losses.

“While broader market spillovers appeared limited, the episode highlights the potential for material distress at [nonbank financial institutions] to affect the broader financial system,” the report said.

Overall, the Fed said the current state of the system is sound, with household balance sheets in good shape, and corporations supported by an improving economy and low interest rates that have allowed default rates to fall.

Even the $1.7 trillion in student loans pose “limited” risks to the economy, given that most education debt is held by the top 40% of earners.

A survey the Fed conducted across a variety of 24 market contacts showed that the biggest worry is virus-related, specifically focusing on vaccine-resistant variants. That’s followed by a sharp increase in interest rates, a surge in inflation and tensions between the U.S. and China.
 

no1g8r

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Oct 23, 2017
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FWIW. Can't remember the last time they were correct. It took 3 years after Greenspan utter the "Irrational Exuberance" words!

Fed warns about potential for ‘significant declines’ in asset prices as valuations climb




    • Rising asset prices are posing increasing threats to the financial system, the Federal Reserve warned in a report Thursday.
    • Fed Governor Lael Brainard said the situation bears watching and points up the importance of making sure the system has proper safeguards.
    • “Asset prices may be vulnerable to significant declines should risk appetite fall,” the central bank sai
Rising asset prices in the stock market and elsewhere are posing increasing threats to the financial system, the Federal Reserve warned in a report Thursday.

In its semiannual Financial Stability Report, the central bank said that while the system overall has remained largely stable even through the Covid-19 pandemic, future dangers are rising, in particular should the aggressive run on stocks tail off.

Investors have snapped up equities, corporate bonds and cryptocurrencies. They’ve poured billions into blank-check companies called SPACs, and the market has been mostly brisk for traditional initial public offerings.

Fed Chairman Jerome Powell and others have been asked repeatedly about whether they’re concerned over the rising prices. Powell specifically has said that as long as interest rates stay low, the valuations are justified.

However, the report notes that there’s danger lurking should market sentiment change.

“High asset prices in part reflect the continued low level of Treasury yields. However, valuations for some assets are elevated relative to historical norms even when using measures that account for Treasury yields,” the report states. “In this setting, asset prices may be vulnerable to significant declines should risk appetite fall.”

In an accompanying statement, Fed Governor Lael Brainard said the situation bears watching and points out the importance of making sure the system has proper safeguards. She specifically mentioned having banks increase their capital requirements during economic expansions as a buffer against downturns.

The report also mentions risk at hedge funds and other nonbank financial institutions on several occasions as potential threats to the system.

“Vulnerabilities associated with elevated risk appetite are rising. Valuations across a range of asset classes have continued to rise from levels that were already elevated late last year,” Brainard said. “The
combination of stretched valuations with very high levels of corporate indebtedness bear watching because of the potential to amplify the effects of a re-pricing event.”

The report notes that particular sectors including energy, travel and hospitality have particularly high vulnerabilities because of their sensitivity to the pandemic. The Fed also talks about potential threats from money market and open-end funds.

The Fed goes into a few specific scenarios that show potential risks to the system. It specifically talked about the Archegos Capital Management episode, when the firm could not meet margin calls, causing several large banks to take big losses.

“While broader market spillovers appeared limited, the episode highlights the potential for material distress at [nonbank financial institutions] to affect the broader financial system,” the report said.

Overall, the Fed said the current state of the system is sound, with household balance sheets in good shape, and corporations supported by an improving economy and low interest rates that have allowed default rates to fall.

Even the $1.7 trillion in student loans pose “limited” risks to the economy, given that most education debt is held by the top 40% of earners.

A survey the Fed conducted across a variety of 24 market contacts showed that the biggest worry is virus-related, specifically focusing on vaccine-resistant variants. That’s followed by a sharp increase in interest rates, a surge in inflation and tensions between the U.S. and China.

Does this mean that the Fed isn't going to be buying Bonds, Stocks, and their own Treasuries anymore?
 

FireFoley

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Does this mean that the Fed isn't going to be buying Bonds, Stocks, and their own Treasuries anymore?

No. As of now they are still full throttle buying different instruments every month. They say they will give the market plenty of notice but they are in so deep, they may never get out of this shyt.
 

no1g8r

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No. As of now they are still full throttle buying different instruments every month. They say they will give the market plenty of notice but they are in so deep, they may never get out of this shyt.

As long as the Fed’s risk appetite doesn’t diminish, the markets should remain stable. At least until the real powers that be want to start making Biden look bad by tanking the markets.
 

Concrete Helmet

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the markets should remain stable. At least until the real powers that be want to start making Biden look bad by tanking the markets.
Wouldn't it be glorious if Powell were actually f vcking Biden on purpose? Anyone with a pulse knows real inflation is close to 10% over the last 5 months yet Powell tells us 2.5 or something all the while knowing people know better. Maybe Powell is a double secret agent man for Trump awaiting his glorious return? ....Think about it for second under Trump the S&P was a solid 17-18%, real estate was rising but not to the point of concern and even bonds had a pulse.....hhhhmmmmm...
 

bradgator2

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One is a fintech company called Sofi going public with a SPAC merger under IPOE.

The 2nd is an EV market play. The current SPAC ticker is CLII. But the goal is to go after the eventual ticker of EVGO.

Finally hitting on all cylinders on IPOE with only 2 days before the vote. Up 7% today, with a smoking 10 day trend (+50%). Vote is on the 27th, ticker change to SOFI the next day.

CLII has been a long slow drag down. They did announce a vote day mid June. So hopefully some action soon. I did average way down.

Luckily, I went significantly bigger with IPOE.

Sold all bank holdings for nice gains. Oil stocks still seem to be doing well.

ARK funds are trying to squeak out some small gains after a rough few months.
 
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BMF

Bad Mother....
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Finally hitting on all cylinders on IPOE with only 2 days before the vote. Up 7% today, with a smoking 10 day trend (+50%). Vote is on the 27th, ticker change to SOFI the next day.

CLII has been a long slow drag down. They did announce a vote day mid June. So hopefully some action soon. I did average way down.

Luckily, I went significantly bigger with IPOE.

Sold all bank holdings for nice gains. Oil stocks still seem to be doing well.

ARK funds are trying to squeak out some small gains after a rough few months.

The ARK funds have taken a beating! The shine is wearing off on Cathie Woods - from stories I've seen, there's a lot of "she got lucky post-Covid".
 

bradgator2

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The ARK funds have taken a beating! The shine is wearing off on Cathie Woods - from stories I've seen, there's a lot of "she got lucky post-Covid".

Yeah, they have definitely had a rough go lately. There is a TON of "chatter" regarding Cathie. Both good and bad. I got in mid last year, so I have decent profits even though they are WAY down over the last 3 months.
126 shares of ARKQ, up 38%
75 shares of ARKG, up 29%
110 shares of ARKF, up 25%
dabbling in ARKX

I am torn on these. My instinct says to shave off some profit. My dangerous sides says, "Let it Ride!"
 

FireFoley

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As I have said before, I have nothing against Cathie Wood, and I know she is very smart. But just as a lot of traders make decisions strictly on momentum (buy high sell higher, short low, buy back lower), I feel Cathie Wood has become momentum herself. she breathes and people fawn. But not to pile on b/c she has had lots and lots of big winners, but she must be a little sad of selling here SPCE just before a 30% rally. But hey maybe that was the Fund's disciplines.
 

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