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Oct 10 2020 12:31am
Quote (ofthevoid @ Oct 10 2020 01:58am)
Short-medium term lax monetary policy with zero interest rates + endless stimulus means tons of money has to go into equity markets for yield.

Sitting in cash is dumber than going long equity. Look at usd chart. It’s down something like 6% y/y. Meanwhile spy is up 19% y/y.

It’s especially dumb now that we know governments will continue to dilute people’s fiat wealth with so much money printing.

I agree with being selective tho. I have some money in indexes but it’s a small % compared to what I have in medium-large cap individual names.


It means a lot more money is going into equity markets driving up the cost of shares that are returning, on average, far less to shareholders.

SPY has like 6 companies that have appreciated massively and the rest are going down, it's a useless index.
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Oct 10 2020 06:22am
Quote (dro94 @ Oct 10 2020 01:31am)
It means a lot more money is going into equity markets driving up the cost of shares that are returning, on average, far less to shareholders.

SPY has like 6 companies that have appreciated massively and the rest are going down, it's a useless index.


What indexes are you relying on these days? Any specific sectors in general ?
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Oct 10 2020 06:57am
Quote (Bazi @ Oct 10 2020 01:22pm)
What indexes are you relying on these days? Any specific sectors in general ?


Tech and renewable energy if any, but my focus is on individual stocks. Rather than get a SPY index I'd get Amazon, Google, Facebook and Apple personally. Of course there are loads of 'smaller' tech companies in the index like Adobe and AMD but the only one I really like is Intuit and if you've got a tech index fund then you've already got some exposure to them most likely.

US markets have delivered a higher return than other countries over the long term, whether that will continue is anybody's guess but the resilience of the labour market and economic growth is better than the rest of the developed world.

I've been attempting to remove my home bias and invest in more US, EU and Asian companies recently, as the UK is essentially finished. Investing in individual Asian companies outside of a few select countries like Taiwan is risky though as GAAP is more of a dark art over there.
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Oct 10 2020 07:12am
Quote (dro94 @ Oct 10 2020 07:57am)
Tech and renewable energy if any, but my focus is on individual stocks. Rather than get a SPY index I'd get Amazon, Google, Facebook and Apple personally. Of course there are loads of 'smaller' tech companies in the index like Adobe and AMD but the only one I really like is Intuit and if you've got a tech index fund then you've already got some exposure to them most likely.

US markets have delivered a higher return than other countries over the long term, whether that will continue is anybody's guess but the resilience of the labour market and economic growth is better than the rest of the developed world.

I've been attempting to remove my home bias and invest in more US, EU and Asian companies recently, as the UK is essentially finished. Investing in individual Asian companies outside of a few select countries like Taiwan is risky though as GAAP is more of a dark art over there.



Thanks for this post
Aside from baba I am staying away from at least Chinese stocks after my LK disaster. I haven’t reviewed the other countries as well as I should be
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Oct 10 2020 05:57pm
Quote (Bazi @ Oct 10 2020 02:12pm)
Thanks for this post
Aside from baba I am staying away from at least Chinese stocks after my LK disaster. I haven’t reviewed the other countries as well as I should be


That's a good idea. Chinese companies follow IFRS pretty much but the auditing is light touch to say the least. The government are trying hard to cut down on companies committing fraud now but it's difficult to change something that they've been encouraging for decades and even practice themselves, like when they issue debt.
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Oct 10 2020 06:27pm
Quote (Bazi @ Oct 10 2020 09:12am)
Thanks for this post
Aside from baba I am staying away from at least Chinese stocks after my LK disaster. I haven’t reviewed the other countries as well as I should be


I had Baba long ago and sold for peanuts and then it went up like 3x.

I like Tencent and own some. They have their hands in a lot of pies that are massive growth markets. Gaming will only get bigger.
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Oct 10 2020 06:42pm
Quote (Bazi @ 10 Oct 2020 09:12)
Thanks for this post
Aside from baba I am staying away from at least Chinese stocks after my LK disaster. I haven’t reviewed the other countries as well as I should be


Quote (ofthevoid @ 10 Oct 2020 20:27)
I had Baba long ago and sold for peanuts and then it went up like 3x.

I like Tencent and own some. They have their hands in a lot of pies that are massive growth markets. Gaming will only get bigger.

so us Americas, famous for our ridiculous acronyms like FANG and FAANG have one for China companies: ATM

https://finance.yahoo.com/news/think-faang-distorting-p-consider-220007193.html

ali baba
tencent
meituan dianping (the grubhub/ubereats whatever of china)

disclaimer: a good chunk of my retirement portfolio is heavy into an international growth portfolio, which had a lot of these 3

This post was edited by excellence on Oct 10 2020 06:43pm
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Oct 10 2020 07:51pm
Quote (ofthevoid @ Oct 10 2020 07:27pm)
I had Baba long ago and sold for peanuts and then it went up like 3x.

I like Tencent and own some. They have their hands in a lot of pies that are massive growth markets. Gaming will only get bigger.


Quote (excellence @ Oct 10 2020 07:42pm)
so us Americas, famous for our ridiculous acronyms like FANG and FAANG have one for China companies: ATM

https://finance.yahoo.com/news/think-faang-distorting-p-consider-220007193.html

ali baba
tencent
meituan dianping (the grubhub/ubereats whatever of china)

disclaimer: a good chunk of my retirement portfolio is heavy into an international growth portfolio, which had a lot of these 3



Never heard of tencent or the other one

I’ll have to check them out. I liked the baba ceo and bet on him big. I think that’s a company that I’ll hopefully hold forever
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Oct 10 2020 08:21pm
Quote (Bazi @ 10 Oct 2020 21:51)
Never heard of tencent or the other one

I’ll have to check them out. I liked the baba ceo and bet on him big. I think that’s a company that I’ll hopefully hold forever



tencent is heavy tech conglomerate, a lot of video game holdings and messaging apps and other goodies like a good chunk of tsla (your fav) and spotify

meituan as i said = #1 food delivery service in china. probably gonna be even more important going forward.

hard to argue with these two. ymmv of course

This post was edited by excellence on Oct 10 2020 08:24pm
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Oct 11 2020 12:36am






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