Bull Market officially over!! Year heading negative.

[Rasulis]

Well the program took a pre covid snapshot of their bond ratings and that is what they are going off of to loan money.

But its ridiculous they are even involved in apple bonds.



There are a lot of "robin hooder" stories and the vast majority of them are exactly like that one.


As for Warren, he's only that high because he sold all his losers and is scared to enter the market at these levels.

He did just spend 10b on Dominion Energy natural gas transmission and storage network. Four billion for the asset and 6 billion to pay off Dominion debt.

I thought this is interesting. Out of all the S&P 500 sectors, only three sectors are positive and trending up. Consumer Discretionary which has Amazon and Netflix, IT which has Microsoft and Apple, and Communication Services which has Google and Facebook. All other sectors are still sucking it and trending back down again. I am betting that after the quarterly reports which start next week, those three sectors will go up even more. Without those six stocks, the market would look really, and I do mean really, bad.



To put this into perspective those six stocks combined market cap is currently 6.9T.

Total market value of US stock market on 12/31/2019 was 37.7T.
NYSE - 21T.
NASDAQ - 13.85T
Japan - 5.7T
Shanghai - 4.9T
HK - 4.38T
EU - 4.08T
UK - 3.16T
Canada - 2.05T
SA - 2.22T

[Breccia]

"President Trump on Friday indicated a phase two trade deal with China is unlikely"

OH REALLY TRUMP? You don't fucking say? That was so obvious it was on the first-grade-level test you just took you fat orange fuck. I've been saying that for months.

I see he's going with the "we ended it on principle" approach when China was already so far behind their "requirements" that they'd need to literally quadruple last year's pace to get caught up. [EDIT: Or more, thanks @Rasulis ] Oh, and "oh no, China, the virus is China's fault, if only someone here could have done something, but it's China, what could I, only one man with the most power on the fucking planet, could have done something, or deary me, my pearls, so clutched".

It’s one person coming in from China. We have it under control. It’s going to be just fine.

I do. I do. I have a great relationship with President Xi. The relationship is very good.

Go climb a small hill, Trump.

[Thekri]

So let's talk about the Atlantic Coast Pipeline.

"Sounds familiar."

It should. In January they were denied a permit to, well, basically build straight through an African-American neighborhood. They also went to SCOTUS claiming that Trump said it was okay to build across the Appalachian Trail and SCOTUS said 7-2 that, yes, Trump was allowed to do that. That was June 15.

Now the principle dealmakers have just flat-out given up on the idea. They cited delays, costs, and "legal uncertainties".

The article goes on from there, but I think the real issue is the Trail crossing. Simply put, if Trump says it's okay to build or drill on things like federal parks, it'd be just as okay if Biden says they can't. West Virginia, Virginia and North Carolina (the affected states) are also looking increasingly battleground. I think the energy companies decided that starting a formerly $5 billion now projected $8 billion project while Trump is sinking in the polls was just too risky.

The ACP was supposedly going to create thousands of jobs and create local revenue. Now, it won't. Can't blame "activist judges" on this one. This is just capitalism in action, and they seem to be tired of winning.

Well that is only part of the whole picture. The larger picture is tied to the dramatic rise, and equally sudden decline of US Shale Petrochemical production. The Atlantic Coast pipeline, along with most of these other pipelines were supposed to carry Natural Gas and Oil from the shale fields to Refineries. The pipelines are dying at the source, because the price of Gas and Oil isn't enough to sustain them, especially with the rapidly rising costs additional regulations are causing them.

When the shale boom started, the big companies were able to somewhat successfully hide the massive effects this had on the local environment and populations. Fracking is nasty as shit, with incredibly powerful chemicals used to destroy bedrock, undermine and poison aquifers. As awareness of exactly what the process did spread, a lot of places started cracking down on it (No pun intended). Not the Federal government of course, the EPA, OSHA, DoE, and the rest are far too corrupt to actually stand up for communities. But state and local governments have.

Specific to the Atlantic Coast Pipeline, New York, Maryland, and Vermont all passed statewide fracking bans. All have promising shale reserves, that either were, or could have been used for production. Pennsylvania, the largest producer by far, has ramped up regulations and enforcement to a huge extent. Increasing inspectors, tightening restrictions, and generally driving up costs for producers. Sweeping bans of drilling near river beds, and flowing streams have spread to nearly everywhere, and these are the most cost effective places to drill (Also the most likely to poison watersheds).

The Atlantic Coast Pipeline, like the rest of these projects, was created during the boom years, with light regulation, and a boundless sense of optimism that the drilling would never stop. In 2013, the industry was abuzz with claims that seem insane now. They were claiming tens of thousands of wells by 2030, creating more then half a million jobs in Pennsylvania alone. It was a frenzy more reminiscent of a gold rush then an actual business venture. They did not apparently anticipate the massive waves of lawsuits, cataclysmic health effects, falling prices, and increased regulation that destroyed margins.

Now it is 2020, and there is a lot of talk that American Shale production may have never been profitable, and may never BE profitable. It seemed profitable at the time, because the way businesses work is that they spread their initial investment over the expected life of production. In other words, they were building wells for x Dollars, and assuming they could operate them at 2013 margins for 40-50 years. They could exceed 1/50th of the total cost in yearly margins, so they thought they were profitable. That was a pipedream. They are now closing wells with 5-7 years of production, or even less. The margins are negative now, the initial costs will never be recouped. It is throwing money into holes in the ground now (Along with all the toxins!).

That is why the Atlantic Coast Pipeline died. It is why the rest of them are dying too. I promise you, if this was profitable, it couldn't be stopped. That would be unAmerican. Nothing the Trump administration can do will stop them from dying, because it has nothing to do with courts, legislation, or lawsuits. But then, picking the wrong side of history is Trump's specialty.

[Breccia]

Well that is only part of the whole picture. The larger picture is tied to the dramatic rise, and equally sudden decline of US Shale Petrochemical production.

Oh, no doubt. One of the problems with planning that far in advance, is you have to hope that none of the variables change that much. If oil was $100 a barrel you better believe they'd still be laying pipe right through Trump's backdoor. AHWINK

[Thekri]

Oh, no doubt. One of the problems with planning that far in advance, is you have to hope that none of the variables change that much. If oil was $100 a barrel you better believe they'd still be laying pipe right through Trump's backdoor. AHWINK

Yeah, but that is a common theme with any energy product. It is why the company I work for has a hell of a time selling new aircraft engines. Nobody is confident in the economics of the current generation of aircraft engines right now. They are all afraid they are going to have to reengine their fleets in 15 years.

[Breccia]

How popular is Donald Trump in Latin America?

This popular:

Goya Foods Inc, the largest Hispanic-owned U.S. food company and a popular brand among Latino Americans, became the target of a boycott campaign on social media on Friday sparked by its CEO effusively praising President Donald Trump at the White House.

The hashtags #Goyaway and #BoycottGoya began trending on Twitter after Robert Unanue, chief executive officer of the New Jersey-based company, appeared with Trump on Thursday for the signing of an executive order creating an advisory panel aimed at spurring Hispanic prosperity.

Reuters/Ipsos national polling shows only about a quarter of registered Hispanic voters chose Trump in a matchup with his Democratic rival, former vice president Joe Biden.

Among those in the forefront of calls for a boycott were two leading Hispanic politicians in the Democratic Party - former presidential candidate Julian Castro and U.S. Representative Alexandria Ocasio-Cortez of New York.

Castro wrote on Twitter that Goya had been a staple of many Latino households for generations.

“Now their CEO, Bob Unanue, is praising a president who villainizes and maliciously attacks Latinos for political gain,” he said. “Americans should think twice before buying their produces.”

Trump was having a glorified photo op, desperately trying to bulk up his numbers in a way that didn't involve putting a taco bowl on a slanted pile of papers on his desk. The CEO very likely felt pressured to say something nice, possibly to avoid paying for a Wall, and, well, actions have consequences.

[Rasulis]

How popular is Donald Trump in Latin America?

This popular:



Trump was having a glorified photo op, desperately trying to bulk up his numbers in a way that didn't involve putting a taco bowl on a slanted pile of papers on his desk. The CEO very likely felt pressured to say something nice, possibly to avoid paying for a Wall, and, well, actions have consequences.

Finding an alternative to their Sazon Goya line of seasoning will be tough. I think we'll ignore this one and pretend it never happened.

[Zan15]

Finding an alternative to their Sazon Goya line of seasoning will be tough. I think we'll ignore this one and pretend it never happened.

why on earth any company, at least any major company would directly come out in support of him right now....insane.

if this CEO isn't a major owner, he's out in a month

[Rasulis]

why on earth any company, at least any major company would directly come out in support of him right now....insane.

if this CEO isn't a major owner, he's out in a month

I agree. He should have kept his mouth shut. Especially considering his costumer base. Most whites likely have never even heard of Goya till he made the statement. Maybe he want to expand his customer base and figure this will be free advertising. Maybe he was medicated when he said that.

[Breccia]

why on earth any company, at least any major company would directly come out in support of him right now....insane.

I theorized earlier he was put on the spot, and thought that saying "You are costing my country billions" might cause more tariffs.

Apologizing now would still do that. By showing up at the photo op, he put himself between a rock and a fatass. He could either risk his company's money by insulting Trump, or he could risk his company's money by praising Trump. Saying nothing wasn't an option, not while he was there. I suppose a politician might have found a vague non-statement, but that might not have been good enough anyhow.

To disagree slightly with @Rasulis it's not that he should have stayed silent, he shouldn't have gone. He could have blamed the weather.

If it makes you feel any better, Trump probably asked the CEO to mow the lawn or make the bed or something.

[Felya]

I agree. He should have kept his mouth shut. Especially considering his costumer base. Most whites likely have never even heard of Goya till he made the statement. Maybe he want to expand his customer base and figure this will be free advertising. Maybe he was medicated when he said that.

Their shit is mass produced, over salted and has a shit ton of preserves. The attraction is the price. Their target audience isn’t Latinos, but specifically new immigrants and the poor. I know about it because we were poor, not latino.

[Zan15]

Damn tech is just getting insane.

Even now dragging tesla into the whole mix


211.00 - 1,548.92 in 52 weeks.
250-1549 since oct 2019
350-1549 since march low.

YTD % Chg269.24 1 Year % Chg 546.51

P/E -1,774.24

minus....one thousand seven hundy...

This is why i am scared of the market....

[Rasulis]

Damn tech is just getting insane.

Even now dragging tesla into the whole mix


211.00 - 1,548.92 in 52 weeks.
250-1549 since oct 2019
350-1549 since march low.

YTD % Chg269.24 1 Year % Chg 546.51

P/E -1,774.24

minus....one thousand seven hundy...

This is why i am scared of the market....

We are probably missing on the biggest stock of the century, but that PE ratio is insane. Not to mention, unlike Amazon, their gross revenue really has not increased substantially in the last 5 years. They also have a lot of competition from the old standard bearers like Ford, GM, etc. and new companies like Nicola, Hilyyon, Li and several others. It is a very crowded market.

Forgot to mention, China is now Tesla fastest growing market. Will it keep growing? Especially with the hate/hate relationship between US and China. To put it into perspective, Tesla market cap is higher than Toyota. Toyota had over $275 billion in sales in 2019. Tesla’s sales were under $25 billion. Toyota had earnings of over $16 per share last year, and paid a dividend of $3.59. Tesla is unprofitable.

I would be scared also.

[Zan15]

If you look at the total market minus the big five its really bad.
if even 10% of this money rotates into other stocks it would be huge for them, but everyone seems afraid to invest outside of them


https://www.marketwatch.com/story/in...art-2020-07-12

If it weren’t for the “Giant 5,” your money would have been better off sitting in cash than the stock market over the past few years, according to Wolf Richter of the Wolf Street blog.

[Rasulis]

If you look at the total market minus the big five its really bad.
if even 10% of this money rotates into other stocks it would be huge for them, but everyone seems afraid to invest outside of them


https://www.marketwatch.com/story/in...art-2020-07-12

If it weren’t for the “Giant 5,” your money would have been better off sitting in cash than the stock market over the past few years, according to Wolf Richter of the Wolf Street blog.

Go go FAAMG!

Kidding aside. This really makes it hard for the US government to split them. They are now a big chunk of most individual retirement accounts and public agency retirement funds. I am willing to bet that any accounts and funds that are doing well will have at least 30% of their asset invested into these 5 stocks. Any attempt to break them apart will risk destabilizing all those retirement accounts and funds. Good luck getting re-elected after that.

[D Luniz]

Ok, can someone tell me what the hell happened 2 hours before market close?

[Edge-]

Ok, can someone tell me what the hell happened 2 hours before market close?

https://www.cnn.com/2020/07/13/inves...day/index.html

Apparently some states taking steps back from re-opening took the wind of out investors willing the markets back positive in advance of what are expected to be some pretty brutal quarterly earnings reports.

[Zan15]

Ok, can someone tell me what the hell happened 2 hours before market close?

Well first people actually stopped and said...WTF Tesla really, umm NO.

Then people got wind of 18% of the economy (CA) was shutting down again.


People know the market is way ahead of itself, especially in just a few stocks.

any bad news is going to drive the market down hard.

it scares me for when the big 6 earnings come out and show they are not immune to the economic downturn.

[Rasulis]

Ok, can someone tell me what the hell happened 2 hours before market close?

California Gavin Newsom's ordering all indoor operations for restaurants, fitness centers, malls and places of worship, among others, to shut down is probably the biggest factor. Banks' quarterly earnings hurt, but we know that will be the case for weeks already.

We are seeing the occasional tech sector hiccup. Apple's market capitalization went from a peak 1.75T today to 1.66T. Microsoft and Amazon dropped 3%, FB 2.5%, Alphabet 2%, and Netflix over 4%. Yeah. That will make the market move. Unfortunately, when those stocks sneeze, the market get a cold.

- - - Updated - - -

Well first people actually stopped and said...WTF Tesla really, umm NO.

Then people got wind of 18% of the economy (CA) was shutting down again.


People know the market is way ahead of itself, especially in just a few stocks.

any bad news is going to drive the market down hard.

it scares me for when the big 6 earnings come out and show they are not immune to the economic downturn.

We'll find out. First one out will be Netflix 7/16. Then Microsoft & Tesla 7/22 and Amazon 7/23. FB 07/30, and Google and Apple 07/31.

[Zan15]

We'll find out. First one out will be Netflix 7/16. Then Microsoft & Tesla 7/22 and Amazon 7/23. FB 07/30, and Google and Apple 07/31.

More worried about the banks first.


so goes the banks so goes the economy


He's hardly ever right but

https://www.cnbc.com/2020/07/13/cram...-get-ugly.html