Market Down 415

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green union terrace chair
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Re: Market Down 415

Postby green union terrace chair » Wed Aug 26, 2015 5:40 pm

Michael Patrick wrote:Dow was up 619 points today. Obviously the end is nigh. Obviously.

It's gonna go up forever!

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Re: Market Down 415

Postby Comrade » Thu Aug 27, 2015 7:28 pm

O.J. wrote:
Comrade wrote:No Sir! I am not talking about margin interest. Dont put words in my mouth. Never mentioned that at all,


What form of interest were you talking about?


If you sort a stock, you don't get access to that money until or unless you cover the short and return what was borrowed.

IF that stock that you shorted pays a dividend, you owe that amount to the stock owner and it gets deducted from your credit balance from the sale.

The longer you are short, the more it will cost you.

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Re: Market Down 415

Postby O.J. » Thu Aug 27, 2015 9:53 pm

Comrade wrote:
O.J. wrote:
Comrade wrote:No Sir! I am not talking about margin interest. Dont put words in my mouth. Never mentioned that at all,


What form of interest were you talking about?


If you sort a stock, you don't get access to that money until or unless you cover the short and return what was borrowed.

IF that stock that you shorted pays a dividend, you owe that amount to the stock owner and it gets deducted from your credit balance from the sale.

The longer you are short, the more it will cost you.


Nice mansplainin', but come talk to me after you pass your Series 7. You're not charged any interest on a short sale.

For your first point, you're mostly correct, but you can get access to excess equity (via SMA) if your shorted stock decreases in value.

For your second point, yes, but that's why most shorts choose non-dividend paying stocks. You can also avoid it by buying the stock back right before the ex-dividend date. And if you do have to pay the dividend back to the owner, you can either deduct it from your taxes or increase the cost basis on your buyback.

And your last point is only valid if you're talking about the opportunity cost of foregoing other investments.

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Re: Market Down 415

Postby Comrade » Fri Aug 28, 2015 11:30 am

OMG!!! You still don't understand the basics. Just let it go man. You don't need to keep twisting what others have said. Nobody else cares.

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Re: Market Down 415

Postby snoqueen » Fri Aug 28, 2015 12:04 pm

I do.

Any attempts to reduce financial illiteracy are valuable.

Like scientific or statistical illiteracy, financial illiteracy leaves people wide open to all kinds of manipulation and exploitation.

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Re: Market Down 415

Postby O.J. » Fri Aug 28, 2015 12:17 pm

Comrade wrote:OMG!!! You still don't understand the basics. Just let it go man. You don't need to keep twisting what others have said. Nobody else cares.


Comrade, you're just upset because you thought you could speak with an air of authority to an unsuspecting public, but got called out by someone with far more knowledge on the subject than you.

And how did I twist your words? You said, and I directly quote, "pay them interest for the time they loaned it to you." Once again, there is no interest charged on a short sale.

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Re: Market Down 415

Postby Shorty » Thu Jan 07, 2016 3:21 pm

Down -391 today.

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Re: Market Down 415

Postby green union terrace chair » Thu Jan 07, 2016 7:06 pm

Shorty wrote:Down -391 today.

No, it was down 391 and up -391.

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Re: Market Down 415

Postby Michael Patrick » Fri Jan 08, 2016 8:17 am

green union terrace chair wrote:
Shorty wrote:Down -391 today.

No, it was down 391 and up -391.


I didn't not see what you did there.

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Re: Market Down 415

Postby Shorty » Tue Jan 12, 2016 3:46 pm

Sell everything ahead of stock market crash, say RBS economists
Royal Bank of Scotland warns of ‘cataclysmic’ year with slumps in shares and oil and advises clients to shift to bonds
http://www.theguardian.com/business/201 ... economists

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Re: Market Down 415

Postby Henry Vilas » Tue Jan 12, 2016 4:08 pm

Going to liquidate all your vast investments?

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Re: Market Down 415

Postby Shorty » Wed Jan 13, 2016 2:08 pm

Not sure what to do. If I liquidate they would get close to 0 interest in the bank so that's not good. Guess I will allocate my mutual funds more towards bonds, less towards stock. Tough to earn interest these days.

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Re: Market Down 415

Postby jman111 » Wed Jan 13, 2016 2:35 pm

Shorty wrote:Tough to earn interest these days.

Online savings accounts (such as those offered by Ally Bank) yield close to, or even slightly over, 1% if you take the no-frills option. Seems pretty good to me for FDIC-insured savings.

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Re: Market Down 415

Postby gargantua » Wed Jan 13, 2016 4:15 pm

Shorty wrote:Not sure what to do. If I liquidate they would get close to 0 interest in the bank so that's not good. Guess I will allocate my mutual funds more towards bonds, less towards stock. Tough to earn interest these days.

Ideally, you'd want to liquidate when stocks are high and buy when they're low. At least that's what people who make money investing say. I wouldn't sell now unless I had some reason to believe stocks will drop a lot more.

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Re: Market Down 415

Postby Shorty » Fri Jan 15, 2016 2:32 pm

Maybe I didn't use liquidate correctly. I meant I would stop investing in more stocks, not sell off those I own.
jman111 wrote:Online savings accounts (such as those offered by Ally Bank) yield close to, or even slightly over,1% if you take the no-frills option. Seems pretty good to me for FDIC-insured savings.

I never heard of OSA's but will look into it thanks.


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