Investing Thread (Stocks, Crypto, Real Estate, Whatever)

[Zlaxer]

It feels pretty good to stick a finger in their ass, even if it amounts to nothing in the end.

There’s a real chance Hedges short SRMX could have taken 400% loss if they’re called.

Time to bail dude. SEC is ‘concerned’ about you.

https://www.zerohedge.com/markets/crack ... pennystock

I keep telling myself pigs get slaughtered - but I’m going to regret it if I see $1.

[SuburbanFarmer]

There’s a real chance Hedges short SRMX could have taken 400% loss if they’re called.

Time to bail dude. SEC is ‘concerned’ about you.

https://www.zerohedge.com/markets/crack ... pennystock

I keep telling myself pigs get slaughtered - but I’m going to regret it if I see $1.

You won’t. They’re about to shut off buying, like they did with the meme stocks.

[SuburbanFarmer]

Holy crap. I don’t think Reddit was behind this, but it’s pretty damn big.

https://www.zerohedge.com/markets/silve ... ble-silver

TL;DR: there’s not enough silver in London to back the shares that SLV is selling.

[DBTrek]

Holy crap. I don’t think Reddit was behind this, but it’s pretty damn big.

https://www.zerohedge.com/markets/silve ... ble-silver

TL;DR: there’s not enough silver in London to back the shares that SLV is selling.

Right, but you have to take a look at futures trading to understand why a squeeze won't play out like it will on a stock. SLV trades in silver futures, it's not redeemable directly in silver (like PSLV is, I think). So you try to drive SLV up, the index fund can just modify the costs of buying future silver to compensate, no biggie. There's no mechanism to force people holding paper silver (like SLV) to redeem their shares for actual silver. So they'll just play you out in the futures market, and transfer that immediate demand to the price of future silver.

At least, that's what I took from the references I read and watched on it. If anyone understands differently feel free to correct me.

[SuburbanFarmer]

Holy crap. I don’t think Reddit was behind this, but it’s pretty damn big.

https://www.zerohedge.com/markets/silve ... ble-silver

TL;DR: there’s not enough silver in London to back the shares that SLV is selling.

Right, but you have to take a look at futures trading to understand why a squeeze won't play out like it will on a stock. SLV trades in silver futures, it's not redeemable directly in silver (like PSLV is, I think). So you try to drive SLV up, the index fund can just modify the costs of buying future silver to compensate, no biggie. There's no mechanism to force people holding paper silver (like SLV) to redeem their shares for actual silver. So they'll just play you out in the futures market, and transfer that immediate demand to the price of future silver.

At least, that's what I took from the references I read and watched on it. If anyone understands differently feel free to correct me.

I wouldn’t anticipate a squeeze, as the premise seems to be that they just sell more shares and find the silver later.

But if they can’t find that silver to back the shares, then the shares are essentially worthless... I’d expect this to result in a crash.

I’m very uninformed on the topic, but this looks like a ponzi scheme.

[Zlaxer]

What happens to dividend stocks in high inflation environment? Do yields go up with inflation or do they lag? Basically, can a dividend portfolio survive high inflation? Or is it akin to a bank getting fucked on a fixed mortgage?

[Martin Hash]

What happens to dividend stocks in high inflation environment? Do yields go up with inflation or do they lag? Basically, can a dividend portfolio survive high inflation? Or is it akin to a bank getting fucked on a fixed mortgage?

There are dividend stocks that pay their dividends out of their equity, which means the share price goes down every time they pay out. This has been covered up by Stock Market inflation but make no mistake, those dividends don't come from real earnings.

[Zlaxer]

What happens to dividend stocks in high inflation environment? Do yields go up with inflation or do they lag? Basically, can a dividend portfolio survive high inflation? Or is it akin to a bank getting fucked on a fixed mortgage?

There are dividend stocks that pay their dividends out of their equity, which means the share price goes down every time they pay out. This has been covered up by Stock Market inflation but make no mistake, those dividends don't come from real earnings.

I can detect that - almost always bad to see high yield...I mean your vanilla quality dividend stock that’s been paying consistently for 20 years.

*I see know you mean zoombie companies - yeah, lots of them out there....but generally, what happens to a dividend from a well run company in a high inflation environment?

[Martin Hash]

What happens to dividend stocks in high inflation environment? Do yields go up with inflation or do they lag? Basically, can a dividend portfolio survive high inflation? Or is it akin to a bank getting fucked on a fixed mortgage?

There are dividend stocks that pay their dividends out of their equity, which means the share price goes down every time they pay out. This has been covered up by Stock Market inflation but make no mistake, those dividends don't come from real earnings.

I can detect that - almost always bad to see high yield...I mean your vanilla quality dividend stock that’s been paying consistently for 20 years.

*I see know you mean zoombie companies - yeah, lots of them out there....but generally, what happens to a dividend from a well run company in a high inflation environment?

A dividend is only net wealth if the company had profit: no profit, dividend is a mirage.

[Zlaxer]

There are dividend stocks that pay their dividends out of their equity, which means the share price goes down every time they pay out. This has been covered up by Stock Market inflation but make no mistake, those dividends don't come from real earnings.

I can detect that - almost always bad to see high yield...I mean your vanilla quality dividend stock that’s been paying consistently for 20 years.

*I see know you mean zoombie companies - yeah, lots of them out there....but generally, what happens to a dividend from a well run company in a high inflation environment?

A dividend is only net wealth if the company had profit: no profit, dividend is a mirage.

I get that - but that doesn’t answer the question.