Mixed thoughts about my wife's swing trade
- Thread starter Woodrow97
- Start date
Today my dog (he's a trader) knocked over my mouse and bought a mess of airline stocks. It got me thinking, maybe since he can't get Corona that dogs will start flying all over the country instead of us..........Needless to say, I'll let them sit until he takes them off.
Well, you know what they said? Dogs are human's best friend
What did she buy, if you don’t mind sharing?
But to clarify, do you mean ‘rare earth’ or ‘precious metals’?
Rare earth prices are rising, but it’s very hard to find an investible pure-play. I have come across the occasional listed stock but it was always small/illiquid. Big miners have rare earths but they don’t move the dial.
So maybe your wife is taking a view on precious metal stocks? Maybe it’s not such a bad call. Overall spot prices are fairly supportive. The recent hit on stock prices could present a good entry point. Also miners are energy intensive, so lower oil prices will be welcome.
If she does have a strong positive view on the underlying metal, then selecting the ones with the worst fundamentals (low grades, high costs, large debt burden) will give the best leverage to the rising spot price. It’s the guys high up on the all-in cost curve that will benefit most from each marginal increase in spot.
But to clarify, do you mean ‘rare earth’ or ‘precious metals’?
Rare earth prices are rising, but it’s very hard to find an investible pure-play. I have come across the occasional listed stock but it was always small/illiquid. Big miners have rare earths but they don’t move the dial.
So maybe your wife is taking a view on precious metal stocks? Maybe it’s not such a bad call. Overall spot prices are fairly supportive. The recent hit on stock prices could present a good entry point. Also miners are energy intensive, so lower oil prices will be welcome.
If she does have a strong positive view on the underlying metal, then selecting the ones with the worst fundamentals (low grades, high costs, large debt burden) will give the best leverage to the rising spot price. It’s the guys high up on the all-in cost curve that will benefit most from each marginal increase in spot.
One needs exact tickers, to check on how bad it is.
https://finance.yahoo.com/chart/COB...pbnRlcnZhbCI6IndlZWsiLCJzZXRTcGFuIjpudWxsfV19
That's why, im preparing multiple IQ tests for my future wife.
I guess something rare as this :
https://finance.yahoo.com/chart/COB...pbnRlcnZhbCI6IndlZWsiLCJzZXRTcGFuIjpudWxsfV19
That's why, im preparing multiple IQ tests for my future wife.
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Smart for not challenging your better half's trade.So after waking up today, I went to check my joint account and almost spat out my coffee.
My wife (she's a trader) put a large portion of my savings in some of the worst performing mining companies since the bear market started. I looked at a few, terrible fundamentals, almost no operating margin, huge losses in terms of free cash flow, the only thing they had was production but was barely staying afloat.
When I asked her why she made the trades, she just shrugged and said "Well, I had a hunch they would go up!"
Long story short I was pretty close to getting into a rage, but then I thought about it for a sec: Rare metals have been going up for quite some time, and when prices are high, even the worst performing mining companies will be able to turn a profit, and when they do, the intrinsic bankruptcy/underperform discount assigned to them will be erased, leading to significant share appreciation.
Moreover, inflation will likely kick in as everyone is staying at home (and not being as productive as before) while massive fiscal stimulus is being injected. I do have faith that since the times of ancient Babylon, rare metals have been a safe haven asset when inflation kicked in, and companies who make them might save my behind this time.
I've decided to leave them be until the misses takes it off.
Yes, your dog just made a fortune for you after the bailout.
If OP gets another dog they could work as an even larger team.