You buy 100$ bond from daddy gov. Gov gives you 1.5% coupon aka interest so 1.5$ yearly on big paper. yield is the actual return of big paper. So if market implied yield drops to 0.75% tmrw, that means bond is now worth 200$ because people liked big paper that day. Since it still gives 1.5$ yearly but now is worth 200$. 1.5/200= 0.0075= 0.75%. Yield is variable since it comes from big boy trading in market but coupon of bond itself never changes.
So bond yields being at all time lows means bonds went up a lot even if a lot of that yield drop was because fed cut rates
Sometimes People want to buy the 100$ bond for more than its principal (face value I guess) is worth. Because it's a safe asset they don't mind paying 200$ even if they get a shit yield because they expect other assets to return even less. Treasuries Bonds are traded on markets with hundreds of billions of dollars of daily volume so prices are set in a similar way than you see with the stock market aka supply/demand. On the other hand when stocks are doing well yields jump because bonds become less attractive than stocks in terms of dividend yield+ growth so money flows out bonds (they are sold which drives prices down and yield up) into stocks
Don't take the numbers literally because a lot more (TVM, swaps, currency prices etc) goes into bond pricing and even a drop of 50% in yield doesnt mean they double in prices because of those other factors. It's literally one of the most complicated asset class to price/trade esp when you get to bond derivatives/swaps etc. But you get the general idea
Your portfolio probably halved since February and we’re only beginning to see the effects of pangolin bat virus on developed countries
My company, one of the biggest in the UK, is about to tell everyone to just stay at fucking home. France and Germany are getting really bad and may have to soon go full pasta and lock everything down, eventually the US will catch up and then shit really hits the fan
Take some short positions and offset some of your losses. If you bought in the second half of last year dump those positions and buy back later, use the liquidity to ride the wave down. You already have the retards on r/investing who kept saying “BUYING OPPORTUNITY” getting rekt and epsteining themselves in record numbers
Retards said the same when the dotcom bubble burst and at the beginning of 2008. It took a decade to recover from the dotcom bubble and this rally over the past decade has led to severely overvalued markets.
You’re a moron if you think it’s not prudent to exit positions you got into in the second half of last year. I didn’t say dump everything, but this isn’t 2018 when things took a month or so to recover.
Cope all you want but if you can’t see the bigger picture you’re kind of an idiot and shouldn’t be investing unless you’re handing everything off to an expert.
Virus has only just begun affecting developed economies, the effects are going to get much worse before they get better. Governments are only just beginning to enact the serious, economy-fucking measures whereas until now they tried to balance the response without panicking markets. On top of that you have severely overvalued markets well due a big correction and we’re officially in bear markets.
I literally work for a bank and deal with this stuff with the big boys, but tell me more about how I don’t know what I’m doing. It’s retard retail investors like you who will have half your portfolio value wiped out while smart active investors will realise gains and re-enter positions at more attractive prices
E: if you want real financial advice short UK markets, BoJo is just about to announce more serious measures and a travel ban to Europe may be on the table as well as stepping up social distancing measures
I couldn’t in good conscience recommend you risking your money if you don’t have much, but if you have any you can afford to lose I would recommend getting involved in CFDs (if you’re in Europe) or options if you’re a yank
Big ducking disclaimer about both of these: they use leverage. Which means you’re trading on borrowed money, so you get multiplied wins but also multiplied losses. CFDs are literally illegal in burger land because retard retail investors kept blowing up their entire accounts in the blink of an eye.
Do a quick read on leverage and margins. Don’t go for the biggest trades you can afford because since you’ve got multipliers via leverage a tiny market movement will mean your positions get closed and you end up with nothing.
Everyone and their mum will tell you to stay away from leverage but it’s a powerful tool if you’re not a moron or have some self control.
Right now we can be sure the general trend will hold downwards for the foreseeable future, so as long as you have enough money to fund increased margins through normal market swings it’s a relatively safe (not sure) bet that your shorts/puts will work out. Short indexes, anything to do with manufacturing or retail, things heavily affected by coronautism.
Don’t get greedy and go for 10x gains, if it’s green take it.
Seriously though be careful with leverage. Once summer hits and corony cases start flatlining get into some long term positions.
You can pretty much short anything right now, though.
Unless this shit clears up as the weather warms, we've yet to see real bottom e.g. layoffs and severe consumer spending decline. Not to mention housing market dip.
I got out before it got bad, a few weeks ago but now i'm pissed up the upturn may take a long time.
Here's to housing market gettin hit soon... I'm trying to buy.
While I’m still up a lot today I got caught in a bear trap with highly leveraged shorts against the DAX expecting it to keep plummeting after the lacklustre ECB measures.
I don’t like keeping CFDs open overnight because all it takes is big overnight news and a large trading gap to fuck your account up, so if we could organise some good old fashioned market manipulation that would be great thanks. Shit’s just moving sideways.
Inb4 Apple will recover and they’ll recover higher than they were before chinkVirus. Due to fears going down and new products about to release. Invest now while it’s cheap.
If we hit recession premium product companies like Apple won’t recover as fast as people think and I wouldn’t load up until US cases start flatlining for a week
65 comments
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17 demotecontrol 2020-03-12
Oh, did the Wall Street people loose all their money again today?
15 Thegrapejellyman 2020-03-12
Just wait till tomorrow LMAO its gonna be bad.
8 NEW_JERSEY_PATRIOT 2020-03-12
Just buy puts!
5 Thegrapejellyman 2020-03-12
Fuck you gay bear i only buy calls...
$UVXY calls...
Which i sold at todays final squeze...
5 NEW_JERSEY_PATRIOT 2020-03-12
You’re alright
3 Thegrapejellyman 2020-03-12
Also Jersey is the worst my guy :(
t. Fellow Jersian
2 I_like_back_massage 2020-03-12
Toilet paper hands don’t make no money 💰
2 Thegrapejellyman 2020-03-12
I've been swinging UVXY for this whole time and thought Trumps announcement would be good.
Futures disagree.
4 4thebadbone 2020-03-12
No the retarded boomer investors lost all their money
Meanwhile I stay liquid in my short term trading account and happened to be online and got +20% in a few trades 😎
1 Thegrapejellyman 2020-03-12
Imagine being such a cuck that during one of the most volatile markets ever you only make 20% LOL
1 4thebadbone 2020-03-12
Imagine being such a retard you overexpose yourself while using leverage and wipe out a month’s worth of gains in 5 minutes
Also 20% of my trading portfolio is like 2 years of your wages povboy
1 Thegrapejellyman 2020-03-12
The only over exposure i know of is public nudity.
Jokes on you i'm unemployed!
1 Thegrapejellyman 2020-03-12
Update: if SPY opens green i am probably fucked.
1 I_Shah 2020-03-12
Only the 🌈🐃
14 Kilo_G_looked_up 2020-03-12
investlets need to get out
10 Seattle_Bussy_Lmao 2020-03-12
cope
8 Thegrapejellyman 2020-03-12
Those ones at all time lows?
Bear market/Recession time Nerd
Not yet xD
Make me!
4 Kilo_G_looked_up 2020-03-12
Bonds are mostly static right now, as they should be.
3 Thegrapejellyman 2020-03-12
Shut up im reading the news headlines from a few days ago to artifically strengthen my posistion!
2 ATissu 2020-03-12
Bonds prices go up as yield goes down retard. Like that's literally why yield goes down unless there's a rate cut
1 Thegrapejellyman 2020-03-12
Imagine thinking i understand what that means.
1 ATissu 2020-03-12
ELIR:
You buy 100$ bond from daddy gov. Gov gives you 1.5% coupon aka interest so 1.5$ yearly on big paper. yield is the actual return of big paper. So if market implied yield drops to 0.75% tmrw, that means bond is now worth 200$ because people liked big paper that day. Since it still gives 1.5$ yearly but now is worth 200$. 1.5/200= 0.0075= 0.75%. Yield is variable since it comes from big boy trading in market but coupon of bond itself never changes.
So bond yields being at all time lows means bonds went up a lot even if a lot of that yield drop was because fed cut rates
Wont bother with more details tho
1 Thegrapejellyman 2020-03-12
Im too retarted, that didn't hell
I got it up to there where doss the 200$ come from
2 ATissu 2020-03-12
Sometimes People want to buy the 100$ bond for more than its principal (face value I guess) is worth. Because it's a safe asset they don't mind paying 200$ even if they get a shit yield because they expect other assets to return even less. Treasuries Bonds are traded on markets with hundreds of billions of dollars of daily volume so prices are set in a similar way than you see with the stock market aka supply/demand. On the other hand when stocks are doing well yields jump because bonds become less attractive than stocks in terms of dividend yield+ growth so money flows out bonds (they are sold which drives prices down and yield up) into stocks
Don't take the numbers literally because a lot more (TVM, swaps, currency prices etc) goes into bond pricing and even a drop of 50% in yield doesnt mean they double in prices because of those other factors. It's literally one of the most complicated asset class to price/trade esp when you get to bond derivatives/swaps etc. But you get the general idea
1 Thegrapejellyman 2020-03-12
I understand this alot more, the math cobfused my shallow brain xD its like IV in options in a way.
2 ATissu 2020-03-12
Everything is literally just trading Volatility when you get deeper into asset pricing lol
1 Thegrapejellyman 2020-03-12
Yeah i think a better comparison i could have made though is buying ITM options because of the nearly gauranteed return of something.
Thanks for the info btw
-1 4thebadbone 2020-03-12
Actual cope from holdfags
Your portfolio probably halved since February and we’re only beginning to see the effects of pangolin bat virus on developed countries
My company, one of the biggest in the UK, is about to tell everyone to just stay at fucking home. France and Germany are getting really bad and may have to soon go full pasta and lock everything down, eventually the US will catch up and then shit really hits the fan
Take some short positions and offset some of your losses. If you bought in the second half of last year dump those positions and buy back later, use the liquidity to ride the wave down. You already have the retards on r/investing who kept saying “BUYING OPPORTUNITY” getting rekt and epsteining themselves in record numbers
3 80BAIT08 2020-03-12
What type of lactose intolerant fruitcake store do you work for?
2 4thebadbone 2020-03-12
One that CARES 😤
3 Kilo_G_looked_up 2020-03-12
You're supposed to hold stocks for anywhere from years to decades. If you can't handle a downturn in the market, you shouldn't invest.
3 4thebadbone 2020-03-12
Retards said the same when the dotcom bubble burst and at the beginning of 2008. It took a decade to recover from the dotcom bubble and this rally over the past decade has led to severely overvalued markets.
You’re a moron if you think it’s not prudent to exit positions you got into in the second half of last year. I didn’t say dump everything, but this isn’t 2018 when things took a month or so to recover.
Cope all you want but if you can’t see the bigger picture you’re kind of an idiot and shouldn’t be investing unless you’re handing everything off to an expert.
Virus has only just begun affecting developed economies, the effects are going to get much worse before they get better. Governments are only just beginning to enact the serious, economy-fucking measures whereas until now they tried to balance the response without panicking markets. On top of that you have severely overvalued markets well due a big correction and we’re officially in bear markets.
I literally work for a bank and deal with this stuff with the big boys, but tell me more about how I don’t know what I’m doing. It’s
retardretail investors like you who will have half your portfolio value wiped out while smart active investors will realise gains and re-enter positions at more attractive prices1 themilklives 2020-03-12
Wouldn't it be funny if you constantly have me financial advice for nothing in return haha
2 4thebadbone 2020-03-12
I legit have no problem helping fellow retards
E: if you want real financial advice short UK markets, BoJo is just about to announce more serious measures and a travel ban to Europe may be on the table as well as stepping up social distancing measures
1 themilklives 2020-03-12
Based. I'm a poor University dropout looking to shit away the money I'm earning wage-slaving. Any recommendations?
1 4thebadbone 2020-03-12
I couldn’t in good conscience recommend you risking your money if you don’t have much, but if you have any you can afford to lose I would recommend getting involved in CFDs (if you’re in Europe) or options if you’re a yank
Big ducking disclaimer about both of these: they use leverage. Which means you’re trading on borrowed money, so you get multiplied wins but also multiplied losses. CFDs are literally illegal in burger land because retard retail investors kept blowing up their entire accounts in the blink of an eye.
Do a quick read on leverage and margins. Don’t go for the biggest trades you can afford because since you’ve got multipliers via leverage a tiny market movement will mean your positions get closed and you end up with nothing.
Everyone and their mum will tell you to stay away from leverage but it’s a powerful tool if you’re not a moron or have some self control.
Right now we can be sure the general trend will hold downwards for the foreseeable future, so as long as you have enough money to fund increased margins through normal market swings it’s a relatively safe (not sure) bet that your shorts/puts will work out. Short indexes, anything to do with manufacturing or retail, things heavily affected by coronautism.
Don’t get greedy and go for 10x gains, if it’s green take it.
Seriously though be careful with leverage. Once summer hits and corony cases start flatlining get into some long term positions.
1 iphr 2020-03-12
How do I make money on the tears of the creeptos?
Their imaginary internet dollars are also dropping.
1 4thebadbone 2020-03-12
Press the sell button
1 iphr 2020-03-12
But but but the crypauts all say bitcoin will be 100k any minute!
1 4thebadbone 2020-03-12
It will if you go get all your rich friends to do me a solid and short the shit out of the DAX
1 iphr 2020-03-12
You can pretty much short anything right now, though.
Unless this shit clears up as the weather warms, we've yet to see real bottom e.g. layoffs and severe consumer spending decline. Not to mention housing market dip.
I got out before it got bad, a few weeks ago but now i'm pissed up the upturn may take a long time.
Here's to housing market gettin hit soon... I'm trying to buy.
1 4thebadbone 2020-03-12
While I’m still up a lot today I got caught in a bear trap with highly leveraged shorts against the DAX expecting it to keep plummeting after the lacklustre ECB measures.
I don’t like keeping CFDs open overnight because all it takes is big overnight news and a large trading gap to fuck your account up, so if we could organise some good old fashioned market manipulation that would be great thanks. Shit’s just moving sideways.
You and me both bro
1 themilklives 2020-03-12
Thanks sweetie
1 MySQ_uirre_L 2020-03-12
“experts” are losing money hand over fist right now.
1 4thebadbone 2020-03-12
The experts will be getting ready to change their long term positions while also making short term profit off the crash
1 MySQ_uirre_L 2020-03-12
investing LARPers are the most annoying LARPers on this website
1 4thebadbone 2020-03-12
Imagine such a life, wow
12 DeathBahamutXXX 2020-03-12
I want to see one with both having guns to their head with the boomer upset about stocks and the zoomer upset about crypto currency
1 RebelArsonist 2020-03-12
That's more wojak than zoomers though. Zoomers deals in robux and vbucks.
1 MySQ_uirre_L 2020-03-12
that would be the millennial shooting himself over crypto
1 daggermag 2020-03-12
Lmao bitcoin is down to 6k from like 10k a month ago
5 throwawaybruhbruh1 2020-03-12
Inb4 Apple will recover and they’ll recover higher than they were before chinkVirus. Due to fears going down and new products about to release. Invest now while it’s cheap.
3 MySQ_uirre_L 2020-03-12
Honestly, this is sound advice as long as the market doesn’t crash further.
big "if" there though.
1 iphr 2020-03-12
It'll keep dropping.
There haven't been real lay offs and people are still buying shit. Once that stops, the real craziness will begin.
We're at the buy toilet paper and water stage, not the answer your door with an AR14 barrel sticking out state.
1 daggermag 2020-03-12
Its are 15 Joe biden
1 iphr 2020-03-12
whoosh
1 daggermag 2020-03-12
Cope
1 iphr 2020-03-12
Seethe
1 daggermag 2020-03-12
No u
1 4thebadbone 2020-03-12
If we hit recession premium product companies like Apple won’t recover as fast as people think and I wouldn’t load up until US cases start flatlining for a week
2 Coconuthead93 2020-03-12
Paycheck to paycheck workers rise up
2 Yardbinn 2020-03-12
I bought my very first etf, vanguard s&p 500. I might buy another since it won’t stop discounting itself.
1 most_slotted_floppy 2020-03-12
Me irl on the right.