How much longer until you admit that you were reaallly wrong about the market. Your latest greatest hope was that tapering would tank the market. It didn't. What's your next excuse for missing the rally going to be?
And now we're seeing the proof. The dreaded taper was finally announced and the markets took off like a rocket.
Meanwhile, the bears are in shock: "But, but, but... the Fed was only thing holding up the market. This wasn't supposed to happen!"
"Those folks would like to see [QE] rolled back as quickly as possible, since it may be contributing to an overinflated stock market and other economic distortions."
Later in the article:
"Commercial banks have about $1.6 trillion in accounts at the Fed, which is paying them an interest rate of about 0.25%. That’s obviously very low, but in normal times, the Fed pays no interest on deposits. For banks, the ability to earn $2.5 million per year for every $1 billion on deposit at the Fed, with no real risk, has persuaded them to leave most of that money there."
But, but, but... I thought Fed policy was inflating the stock market?! And now you're telling me Fed policy is causing trillions of dollars to sit idle.
Is it just me or does nobody seem know what the f they're talking about when it comes to Fed policy?
I like that the most common argument for splitting a stock is that some rube will be willing to pay more for it, even though the underlying fundamentals are the same.
Looked at in that context "widening the the investor base" sounds like flim flam to bilk money from individual investors who don't know any better, and collect fees from the company whose shares are split.
CumSoakedSaudi is correct about one thing: distortions in supply/demand can occur due to share prices in extreme cases. For example, if for no other reason than to reduce company-specific risk in a portfolio, a prudent individual investor probably won't commit $100,000 to just one stock. Those distortions happen rarely. If you can't afford JNJ at $45 but you can't afford it at $90, you should be investing your meager savings in college courses or job training, rather than putting it in the stock market.
They also announced a 60% dividend increase and increased the share buyback by 80%. All I can tell you is that if I was going to buy MA today and pay 4% more than I could've bought it for yesterday, it would be because of the dividend increase and buyback, not the split.
I'm at work so I'm trying hard not to laugh out loud, but that is #$%$ hilarious. It takes a special type of doofus to call his boss a spawn of the devil and mean it literally. If you'd rather nail yourself to a cross rather than do the rational thing and find employment elsewhere then you'll find the misery you seek. There's something not quite right about you, and my guess is that people who meet you can sense it right away.
40% after commission, before taxes. I think I know what you're getting at, but the JNJ proceeds won't be taxed as LTCG until 2014, and the 40% returns taxed as STCG will still be greater than the price appreciation of JNJ during the same period.
I have this nagging feeling that you're trying to set me up for something here, but as a gesture of goodwill I'm going to ignore my gut and try to engage in a civil conversation.
HD was recommended by a buddy who works for a hedge fund in NYC. I wouldn't have picked it myself, but piggybacking the trades he's made in his personal account has worked out spectacularly well for me in the past. Do with it as you will.
If I was to choose from the other stocks I'd say WFC and DE have the most room to run. WFC are DE are spectacular companies with PE 's of 12 and 9, respectively. A steepening yield curve should benefit WFC. DE should get a boost from a cyclical rebound and the market is pricing in near-zero growth so it's not going to take much for them to surprise to the upside.
I have no opinion on GILD. Never looked into it despite the impressive performance. Is that something you own?
Thank you. It is a very basic concept indeed, and something I've tried to explain many times. An index fund tracks an index. It's not a mutual fund where a manager picks stocks for you. I'm not trying to reignite a flame war, but there really is no excuse for not knowing that if you're managing your own money.
Sold SAN for a 40% gain, and VTI is still tracking the overall US stock market, which is the point of #$%$ market index fund. They are both outperforming vs if I had kept the money in JNJ, for the record. If you're honestly curious about what else I'm holding I have HD, VRNT, WFC, DEO, and DE (new position as of today). DEO has been the laggard of the group at "only" 8% this year before dividends, but I've owned it since 2009 so it's still done well overall. Honestly this year has made everybody look like a stockpicking genius. I'm starting to pare back exposure to stocks overall. Not trying to make a directional call, but will be using the cash for a major purchase soon.
"Never quit never will,they will never railroad me."
That just makes you sound like an idiot with a martyr complex.
WSJ has an article about stock splits. Excerpted:
"If you are thinking that two nickels wouldn't make you any richer than one dime, you are right. [...] Some research has showed stocks that split have better long-term returns than those that don't, perhaps because investors believe splits signal corporate health. But those findings have been contested, and investors who think that splits are a reliable way to beat the market are asking for heartbreak."
If those big dumb apes named compaqaudi and fake cheezaroni are still out there I'd like to hear their big dumb ape responses to this. Or not.
Compaqaudi will play the role of the rube: "Hurr durr more shares is always better cuz it's moar."
Fake cheezaroni will be aggressively stupid and insecure as usual: "All of you, look at my money! LOOK AT IT!"
As if you speak for the board, win goat. You're a social pariah and a huge crybaby to boot. Go away.
I just realized who Crushed reminds me of: Travis Bickle. Watch "Taxi Driver" then re-read Crushed's posts and tell me I'm not right.