Which stonks are you buying if any?

[Dr Mordrid]

New Tesla gigafactory near Monterrey Mexico will be built on a 4,2 00 acre site. Tesla Semi truck, cars, parts, batteries, etc. Massive.

A $10 billion facility, and they'll have a private lane at the Tex-Mex border crossing.

Tesla Mexico 1280.jpg

[Umfriend]

12.5bln, likely split among at least 5 banks and they'll be a senior creditor. Not a biggie. Edit: Also, I really don't think banks are more hesitant due to expected losses on this specific exposure. I wouldn't say there is a flight to safety but banks and institutional and large investors of all kinds are indeed more careful now then they were up to, say, a year ago.

I worked on a transaction that closed this year. When we started last year we expected to pay a credit margin of 30-40 bps. It turned out to be 70 and it trades at 90.

And yeah, it'd be great if he hyped Doge again, I got 75 of those and need to get rich fast.

[VJ]

With 44bln at stake? I don't see how that could collapse any bank. I wouldn't think banks funded even 50% of the deal and still using a group of banks. Moreover, they may have required security, say over Tesla stock or something.

Collapsing banks is indeed too big a word...Major banks committed 12.5bln, but that was in April and things have changed. Banks are not making other investments due to the losses they will incur on this one.

https://www.reuters.com/markets/europe/banks-financing-musks-twitter-deal-face-hefty-losses-2022-10-05/

Musk is no stranger to market manipulation (for which he used tweets, so it is puzzling to me why he would destroy the chicken with the golden eggs)...

[Umfriend]

I'm still hoping that the Twitter-mess is really due to bad assessment/management, and not because Musk actively tries to force some market manipulation or even collapse some banks...

With 44bln at stake? I don't see how that could collapse any bank. I wouldn't think banks funded even 50% of the deal and still using a group of banks. Moreover, they may have required security, say over Tesla stock or something.

[VJ]

I've been saying for weeks that Twitter will be sold for less than 5bln. Maybe sooner, maybe less.

I'm still hoping that the Twitter-mess is really due to bad assessment/management, and not because Musk actively tries to force some market manipulation or even collapse some banks...

[Umfriend]

I've been saying for weeks that Twitter will be sold for less than 5bln. Maybe sooner, maybe less.

[UtwigMU]

Based Elon unbanned Trump from Twitter. Trump has too big ego to not tweet. Trump tweeting is good for stonks.

[UtwigMU]

IBM reached 52 week high at 148, up 9% YTD, my best stonk this year.

I read Get Rich With Dividends book. The idea is that you invest in companies which consistently pay at least 3.5% dividend and grow their dividend by 10% or more. After a decade or so your yield on original shares is above 10% and if you reinvest dividends compounding kicks in. Companies which pay dividends over decades - Dividend Aristocrats - are stable and outperform indexes.

Sucks we don't have Roth IRA here. With 100k portfolio it would start to make sense to open a LLC and transfer shares there as LLCs pay corporate tax of 19% while individuals pay 25%.

[Umfriend]

Yes, it is a reasonable print, regardless of what the right is saying. We'll have a few more hikes I think but I am now thinking more in the 0.5% area, so max 1.5% in the next 6 months. I expect a rather soft landing barring new crises.

[UtwigMU]

Good CPI print despite no red wave so everything is up. I expect this will not be yet the end of tightening, so still some pullbacks expected in December or January.

AMD and NVDA up bigly.

[Umfriend]

I heard some analysis where J Powell (installed by Trump and US banking elites) will continue to tighten for quite some time into early next year.

Yes. I would expect the FED and the ECB to raise rates quite a few times still.

[UtwigMU]

I heard some analysis where J Powell (installed by Trump and US banking elites) will continue to tighten for quite some time into early next year.

[Umfriend]

Can't do that until at least the BidenBucks etc. have worked their way through the system. Once the new Congress is seated the spending brakes will go on pretty hard.

I doubt that. Rather, I would think a GOP-congress would lower taxes, not spending, thus bankrupting the federal government which is the goal anyway.

[Dr Mordrid]

Seems like mini rally was killed by JPow telling he won't take foot of the hiking pedal in December.

Can't do that until at least the BidenBucks etc. have worked their way through the system. Once the new Congress is seated the spending brakes will go on pretty hard.

[UtwigMU]

Seems like mini rally was killed by JPow telling he won't take foot of the hiking pedal in December.