Stocks Thread (A/K/A STONKS THREAD)

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Just starting this and leaving myself a reminder, in light of the current shit show in the US House, to Google “What happens to I bonds if the government defaults?”

Pretty sure the answer is :dizzy_face:

@BasicBlue get in here!

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Sir I believe the correct spelling is stonks, although I suppose stonks are not stonking currently.

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Oh shit I never thought of this.

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I know some folks (CW lol) like taking deep looks at smaller cap stonks. Couple folks in the crypto discord (not sure if they here) had mentioned some interest in Canterbury Park gambling stonk. Might be interesting discussion if whoever that was is here

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Following up on this, the answer has to be, even if they default for a time, they’ll pay them back eventually, natalieportmanright?

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I’ll check that out! I looked at the casino stocks maybe a month ago and didn’t like any, but they tend to do well in recessions.

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The bonds, probably. The big picture range is wide and includes some dire economic consequences. My guess is Biden has Treasury print a trillion dollar coin and end the debt ceiling forever by setting that precedent.

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What’s the best way to manage your portfolio right now to mitigate US debt default as much as possible? Is there one at all? Or is everyone screwed equally?

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Invest in the Euro, Yen and Yuan I guess? Gold? Definitely not crypto, I think that sinks with the US dollar. More far-fetched, don’t count on FDIC and SIPC insurance and have your money and stocks in foreign banks and brokerages that are backed by a more stable government?

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Although seems like even issues caused by the US end up fucking up other places worse than here?

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There are a lot of unknown unknowns, it’s hard to plan for. I guess gold?

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I’m not so sure the yuan does well if the US defaults…

My list of possibilities in no particular order would be Swiss francs, Euros, gold, real estate, rare valuables (fine art for example), and commodities (but the cost to own via ETF is high). Possibly stocks that are strongly correlated with consumer staples.

Last on the list by far would be crypto, but it would make my list.

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I’m really curious what others think about this. Makes sense to me on banks, but not so much stocks. Like maybe cash in brokerage accounts is at risk but I doubt stocks are. You’re talking about the wealthy getting mega-fucked if they are. The market would crash but you’d still own your shares, I would assume.

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Don’t brokerage houses loan your shares in the same way that banks loan the money you’ve deposited with them? Isn’t that the purpose of SIPC insurance or am I missing something? If a brokerage house goes under and there is no SIPC insurance…

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Only if you give them permission to, and then you get paid a %.

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I think that’s different, and when you do that you are assuming a risk of loss. If there was no risk to your stocks held by brokerages then why does SIPC insurance exist to protect your securities held by brokerage firms for you?

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This feels like a question for @spidercrab!

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Uh oh! This company was once valued at 2x GM lololol

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Levine had some VINCE content today:

:vince:

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So I ran the numbers and it’s a 5/10 on my spreadsheet, which derives from Ben Graham investing strategies. 7/10 is a buy, barring any red flags. 6/10 I consider. It’s close one two factors, so I’ll be keeping an eye on this one and if I decide I want exposure to casinos going into a recession (they usually do well in recessions), I may go for it.

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