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Stock Market Today: August 24th - 28th, 2020

Discussion in 'Stock Market Today' started by bigbear0083, Aug 21, 2020.

  1. stock1234

    stock1234 2017 Stockaholics Contest Winner

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    JD has been on a tear, too bad I don’t have any share :p
     
  2. StockJock-e

    StockJock-e Brew Master
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    Well, we are living in interesting times.

    Who would have thought the day would come this soon that we see Exxon out of the DJIA?

    upload_2020-8-24_15-48-7.png
     
  3. pawel

    pawel New Member

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    Another sign of changing world:
    Due to the 4-to-1 split of #AAPL shares announced lately S&P Dow Jones Indices just announced a rebalancing of the Dow Jones Industrial Average (#DJIA) due 31st August before market opens, which will look to add more weight of Information Technology sector to better depict US economy (as Dow is a price-weighted index, the AAPL split naturally decreased its weight from over 27% to 20%).
    Changes due:
    #CRM (Salesforce.com) replacing #XOM (Exxon Mobile),
    #AMGN (Amgen) replacing #PFE (Pfizer),
    #HON (Honeywell) replacing #RTX (Raytheon Technologies).
    https://lnkd.in/eNVSHi6
    DJIA is the only major US index left that has not yet made new all time highs during this unprecedented #recession.
     
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  4. T0rm3nted

    T0rm3nted Moderator
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  5. Ken34

    Ken34 2017 Stock Picking Contest Winner

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    i was thinking, people keep bringing up 2000 when talking about tech stocks like tsla and apple. but what if the real 2000 bubble is in retail? lets face it, the numbers target and walmart etc have been putting up imo are for a "one off" year, people shouldnt expect this to be a trend going into upcoming years, at least not at this current pace they are on. so then the real question is, once vaccines start coming out mid to late next year and we start to slowly return to normalcy, will people still really pay 150 for a target?
     
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  6. T0rm3nted

    T0rm3nted Moderator
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    That depends on multiple things. Does a vaccine actually come out in 1 year? If so, is it widely/readily available for everyone? How many of Target's smaller local competitors that had to close shop due to COVID-related financial situations remain closed? Does the fed continue to pump imaginary money into the market and help prop these all up still?
     
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  7. Ken34

    Ken34 2017 Stock Picking Contest Winner

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    you bring up some very good points. some of the small competitors may have closed for good, we have no way of knowing exact numbers, but very good points to think of going forward. also another factor to think about is travel companies. brian cornell mentioned he felt a good bit of revenue possibly came from people having no where to spend the money, like usual yearly vacations or cruises. so how long cruises continue to stay shut down and how long will people be afraid to fly or countries continue to have restrictions, may all play a part.
     
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  8. stock1234

    stock1234 2017 Stockaholics Contest Winner

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    Even if the vaccine is out, I probably won’t be among the first to take it until I feel like it is safe and effective, I will take my annual flu shot though either this or next month.

    As for the FED, I think they will be in play for a long time, the money printing will go on for awhile :p
     
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  9. stock1234

    stock1234 2017 Stockaholics Contest Winner

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    As of now I probably won’t be feeling comfortable of flying until 2022 at least, but of course it depends on how soon this pandemic is contained. Many local restaurants are starting to close for good here in Hawaii. As long as people are getting the extra unemployment benefits and they are afraid of traveling or going to the restaurants, I guess WMT, TGT, and COST, etc could continue to do pretty well
     
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  10. stock1234

    stock1234 2017 Stockaholics Contest Winner

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    Wow CRM to the DOW? What a milestone, people kept saying it is overvalued and the stock kept going higher :p
     
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  11. stock1234

    stock1234 2017 Stockaholics Contest Winner

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    Nice day for BEKE again :banana:
     
  12. anotherdevilsadvocate

    anotherdevilsadvocate Well-Known Member

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    Yeah a vaccine is just that: a vaccine.
    I'm hoping they can come out with a treatment once you actually do get the virus. But of course, there's more money to be made in vaccines because everyone takes a vaccine (possibly every 3 months) while only people who get sick will have to take the treatment. If the vaccine lacks durability, I'd rather skip it assuming that Work From Home continues.

    For TGT and WMT I think the key will be how their online sales grow; a transition is being made. We've used Amazon for years, but now thanks to this virus my family has fallen in love with Target's website for regular supplies.

    Anecdotally I am hearing a lot of people putting off plans for airline travel until second half of 2021. It depends on when/if we get COVID-19 infection under control. But then who's to say there won't be another pandemic, right?
     
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  13. stock1234

    stock1234 2017 Stockaholics Contest Winner

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    Is CROX a popular brand? This thing keeps going higher :p
     
  14. T0rm3nted

    T0rm3nted Moderator
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    I disagree with the bolded. There's a reason you always hear people talking about prevention is cheaper than reaction. Same concept can be applied to the life of anything. It's cheaper to pay for the oil change every 3-6 months than it is to replace the engine in a year. It's cheaper to pay for a monthly gym membership and eat healthy than it is to spend tens of thousands of dollars a month getting treatment in the hospital. There's a reason there's extra fees for smokers to have insurance often times, and it's because treatment cost more than up front health costs. Birth control is cheaper than having a baby, so many insurers do not mind paying for birth control for their clients.
     
  15. stock1234

    stock1234 2017 Stockaholics Contest Winner

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    Speaking of the vaccine, any biotech expert here? So far I am hearing the one PFE and BNTX are working on sounds pretty promising, I have some shares of MRNA, so I hope they will be an eventual winner :p
     
  16. stock1234

    stock1234 2017 Stockaholics Contest Winner

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    Well looks like as long as the FED keeps printing, this market will just continue to march higher :D
     
  17. anotherdevilsadvocate

    anotherdevilsadvocate Well-Known Member

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    I hear CROX is comfortable and people were ironically wearing those ugly things, so now people don't mind the looks.

    It is interesting that CRM made it to the Dow, because that was unprofitable 2 out of 4 quarters last fiscal year. Why not bring in Tesla already? CRM may never be bigger than TSLA.
     
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  18. stock1234

    stock1234 2017 Stockaholics Contest Winner

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    I guess TSLA has to be added to the S&P 500 first before they can consider adding it to the DOW :p I guess FB/AMZN/GOOGL could have replaced CSCO/INTC if they are paying dividend
     
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  19. stock1234

    stock1234 2017 Stockaholics Contest Winner

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    Actually maybe not for AMZN and GOOGL unless they do a stock splits, their stocks prices are too high and would have too much impact to the indexes :p
     
  20. pawel

    pawel New Member

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    Even the CEO of #FranklinTempleton Jenny Johnson admits officially that "the era of Star fund managers" is over (see below). Constant and mostly unsuccessful chase for outperformance of the market over a long period of time and the rise of cheap passive investing options like #ETFs and #IndexFunds keeps confirming that the times of heros like #PeterLynch or #MarkMobius is not coming back.
    That's why at #GlobalAlphaSearch we say:
    - count on yourself and your method, not on anyone else; we have our method - #SmartInvestingApproach (SIA),
    - don't make any index your benchmark, cos you'll possibly loose anyway; rather concentrate on repeatedly positive returns and protecting your capital in absolute terms, not relative to a benchmark; your only and ultimate benchmark should be protection of the purchasing power of your money; that's what #SIA is all about,
    - do not pay for delivering constant underperformance nor for no systematic protection from negative absolute returns; #SIA portfolios are a cycle-adjusted mix of assets with negative or no correlation having the right proportions of the right assets at the right time;

    " (Bloomberg) --

    Having a star fund manager is an easy way for an asset management firm to attract client money. But for Franklin Resources Inc.’s chief executive officer, it’s not worth the disruption when they leave.

    “Clients get nervous by a star manager, if you appoint one, because then it becomes a succession issue,” Jenny Johnson said in a Bloomberg “Front Row” interview.

    Franklin should know. The firm’s Franklin Templeton fund business was once synonymous with Mark Mobius, the investment guru who introduced emerging markets to a generation of investors. Mobius retired from Templeton in 2018 only to start his own firm a few months later. But, said Johnson, it’s rarely about one person making all the investment decisions. “The reality is they were always supported by a large team.”
     

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