Wallstreetbets

[james03]

There's something new going on that is similar to #gamergate.  In fact the group calls themselves "4 chan with a bloomberg".  They hate Wall Street like #gamergate hated liberal game journalists and SJW game companies.

Anyhow they congregate at the wallstreetbets forum on reddit.  Supposedly their number is pushing 2 million.  What they did is find a dog stock that is widely shorted by big Wallstreet hedge funds.  The stock was GameStop.  They all started buying the stock and set off a chain reaction.  Basically they soaked up much of the float, and made it illiquid.

Of course as they bought, the price went up.  The hedge funds short the stock started showing losses, so they needed to buy GameStop stock to close out their short position.  But there are only a few shares available, and the price shot up.  It hit somewhere around $385/share.  Now the wallstreetbets crowd can sell their share which they bought for a few bucks back to the hedge funds.

The hedgefunds are showing massive losses and will be forced to sell their good stocks to raise cash.

So expect the markets to drop.  This is a good time to look for high quality, good dividend stocks to buy at a discount.  We are going to get many opportunities to lock in dividends at 10% yield or higher going forward because the market is now run by the State, and socialists always screw up.  You just have to be ready for when they screw up to jump in and buy good stocks on sale.

To begin, start researching boring companies that are paying say 3-4% yield.  It should be a boring business that makes say 5-7% profit.  Get a list of a few.  Then when the Fed misfires and crashes the market, you jump in a pick up that stock on a deep discount.  You are now getting a fat dividend check for peanuts plus some upside growth to protect against inflation.  And you never sell it, even if the stock doubles.  Start researching dividend stocks and don't be in a rush.  Only buy when they are on sale.  You'll get opportunities.

I picked up some stock at around $11.  My dividend check is $1.60 per share.  That's a 14% return.  Stock is up to around $16 now.  It can go to $50.  I ain't selling.  This is a method for the little guy to beat the market.  And notice I've never named the stock I did this with.  Don't ask, I don't give advice.  But I'm happy to tell you my method.  Also I advise you first accumulate some paper cash in your drawer, some junk silver in your drawer, and possibly some crypto.  After that, you can set up a portfolio of dividend stocks.

[Heinrich]

I did not read all of the Fool's article so I am not sure if it is congruent with your method, J. The ones they rate are certainly not boring. Where can we find the "boring" companies"? 

https://www.fool.com/investing/stock-market/types-of-stocks/dividend-stocks/

[james03]

Utilities, pipelines, and big staple (food) producers.  Energy stocks also.  There are a lot of LLP's which are partnerships that are traded also, e.g. Acme Pipeline Partners, Ace Fertilizer Partners.

Make sure they are profitable, and the dividend is smaller than the profit.  Quick test to make sure they are healthy.  I just use finance.yahoo.com to check on their profits and such.  After that, if you have a 401K or IRA, a lot of times the company running it has a stock research function for free.  So after you ID a few candidates, do a deeper dive with the free research reports you get.

Then you have to be patient.  You'll get one or two opportunities to buy each year.  You build up cash, and then when the market tanks, you buy the boring stocks and lock down a fat dividend check.  Rinse and repeat.

Consider this.  If you had done this during the last sell off, you could have spent $200,000, and end up with a $28,000 dividend check each year, likely for life.  And that will grow with inflation.

The reason this works is because as a small investor, you are nimble.  If you have your money parked in cash making 0.2% interest for 9 months, no one is screaming at you.  And when the market crashes, you don't have to bail to protect your $100 Billion fund, instead you can buy.

Also, DON'T select automatic dividend reinvestment.  You want the dividends to build up as cash so you can go shopping the next time stocks are on sale.

[Lynne]

Melvin Capital requires 2.75 billion USD cash infusion after rally...

[Heinrich]

Melvin Capital requires 2.75 billion USD cash infusion after rally...

I guess that's the one I'll do. Thanks!

[Jacob]

Melvin Capital requires 2.75 billion USD cash infusion after rally...

I guess that's the one I'll do. Thanks!

Melvin is the hedge fund that is getting hit hard due its short positions.

EDIT: Prayerful is right.  I shouldn't have  posted that.

[Prayerful]

The last few words in it are crude, but TV market shills are the scum who rise to top in dirty water.

[Heinrich]

Melvin Capital requires 2.75 billion USD cash infusion after rally...

I guess that's the one I'll do. Thanks!

Melvin is the hedge fund that is getting hit hard due its short positions.

EDIT: Prayerful is right.  I shouldn't have  posted that.

That was supposed to be a chuckler, not a buckler.

[Michael Wilson]

The old saying on Wall Street is:  that when people are jumping out of window, is when you should be buying.

[Heinrich]

https://twitter.com/ColumbiaBugle/status/1354530757520179200

[diaduit]

Following this since this morning, I know diddly squat about it but Amazing polly is nervous of it and thinks it could be linked to the Great Reset.  Apart from her love of Q, she's solid otherwise.

[james03]

The #gamergate boys at WallStreetBets are really kicking the ant hill.  There is now a system wide repression going on against them.  I guess the "banksters" really didn't like this post:

Silver Bullion Market is one of the most manipulated on earth. Any short squeeze in silver paper shorts would be EPIC. We know billion banks are manipulating gold and silver to cover real inflation.

Both the industrial case and monetary case, debt printing has never been more favorable for the No. 1 inflation hedge Silver.

Inflation adjusted Silver should be at 1000$ instead of 25$. Link to post removed by mods.

Why not squeeze $SLV to real physical price.

Imagine the boys doing the Game Stop game on silver and gold, in this era of massive money printing.  I'll even go out on a limb and predict some of the leaders in the revolt will be arrested by the FBI soon on whatever charge they can drum up.  In the meantime, keep an eye on silver and gold prices, and mining stocks.

[King Wenceslas]

The #gamergate boys at WallStreetBets are really kicking the ant hill.  There is now a system wide repression going on against them.  I guess the "banksters" really didn't like this post:

Silver Bullion Market is one of the most manipulated on earth. Any short squeeze in silver paper shorts would be EPIC. We know billion banks are manipulating gold and silver to cover real inflation.

Both the industrial case and monetary case, debt printing has never been more favorable for the No. 1 inflation hedge Silver.

Inflation adjusted Silver should be at 1000$ instead of 25$. Link to post removed by mods.

Why not squeeze $SLV to real physical price.

Imagine the boys doing the Game Stop game on silver and gold, in this era of massive money printing.  I'll even go out on a limb and predict some of the leaders in the revolt will be arrested by the FBI soon on whatever charge they can drum up.  In the meantime, keep an eye on silver and gold prices, and mining stocks.

"Massive Money Printing" is a misnomer. Yes the M2 has gone up in a major move but almost all of it has been put into Bank reserves which are not being loaned out.

The game is played this way:  Government creates bonds, selected banks (Goldman Sachs, et. al.) buy said bonds, Federal Reserve buys bonds back from said Banks, said Banks put digital Federal Reserve money into their bank reserves and don't loan it out, Banks receive interest on bank reserves from Federal Reserve, Federal Reserve puts bonds into its every increasing portfolio (7 or so trillions). So viola no increased money in circulation, no inflation, and ever decreasing total money velocity!

And the beat goes on! Central banking at its best.

"wallstreetbets" is flailing at the wrong enemy. The real enemy is the financier of the deep state: the Federal Reserve.

[King Wenceslas]

Rabobank saying it so much better than I:

By Michael Every of Rabobank

Build Back Bitter

As often repeated, this is not an equity-focused Daily. However, when all the focus is on equities, it deserves comment. What we are currently seeing, as a wag on Twitter put it, is how to REALLY Occupy Wall Street; and you get their attention and you get the whole system's attention.

Millions of stuck-at-home day-traders are using their US government stimulus cheques and savings to coordinate market moves to push up the price of small stocks being heavily shorted by hedge funds, and even blowing the latter up in the process. It's David vs. Goliath, wild, anarchic, of questionable legality, and guaranteed to end in tears. Bloomberg refers to it this morning as "a vestigial legacy of Trumpism and the populist backlash against 'the elites'". Indeed, this development must be seen as an inadvertent revolutionary backlash to the neoliberal "normal", albeit one in the tradition of pushing any system to its logical limits to expose its own ridiculous inconsistencies rather than trying to fight against it.

Yes, on one level this is what happens when tens of millions of people are locked down and given stimulus cheques to play with. But it's also what happens if tens of millions of people grow up seeing that outside of Wall Street (and Tech), there are no jobs that pay as well and tax as little as playing with asset prices; when TV is full of ads for stock-trading and how amazing it is to be rich, rather than anything about public service and communities or culture; when homes and rents are unaffordable, and quality public housing no longer gets built; and when even Joe Public talks about the fact that Wall Street has had central banks channel billions of dollars at them every day for years, and get bailed out when things go wrong. In short, it seems that Joe Public is telling Wall Street what it thinks of their expensive suits, TV prognostications, and insider circles --which Elizabeth Warren just called a rigged game while wagging a finger at both them and Joe Public-- and is saying "Let's cut out the middle man!"

There is the true revolution, of sorts. Nobody on Wall Street really cares about a crowd with signs outside an office building saying 'Occupy Wall Street', it seems: the system just carries on regardless. But let's all be forced to imagine a neoliberal market utopia where nobody does anything except day-trade in a co-ordinated fashion 24/7, in an entire economy driven entirely by asset-price manipulation, and with a central bank propping the system up with printed money when it wobbles. Ridiculous? Sure!! But that's the financialised system we've built - for a lucky few. This just exposes how dysfunctional the system is.

Yes, what is happening will end in tears. Revolutions eat their own young - and so do asset bubbles, which this certainly is. But our whole system will end in tears too if it doesn't change rapidly. US 10-year yields are already testing back below 1% again, and that's just on a knee-jerk response, not fully grasping that simply looking down and saying "Why, the peasants are revolting!" "Yes, aren't they?" solves nothing.

That's one way we all meet in the middle, I suppose. Ironically, the post-Keynesians also argue that if the government won't use central bank hyper-liquidity for MMT to provide proper jobs with proper wages and proper homes and infrastructure (as is also being de facto tried to some extent in the previously alluded to geography) then we won't get Build Back Better but, as they say in New Zealand, Build Back Bitter. Then again, the Austrian School argues to just turn the taps off and really go the whole bitter fruit route.

Yet as we prevaricate between bad options and worse, the clock is ticking. Those day-traders are still out there and won't just go away. With no good jobs or homes to go back to, why should they? And the Fed just made clear it's going to be the same "throw money at the Wall (Street), and see what sticks" policy for a long time ahead.

[james03]

The game is played this way:  Government creates bonds, selected banks (Goldman Sachs, et. al.) buy said bonds,

And the government does what with the money it received?