The Long Term Investor

I will be real original.....Dax......a SP500 Index fund or ETF. To me.....the GUTS of the entire US economy.

 

I can tell we have pulled back a little bit....even without looking at my account.........simply by seeing my account balance. I can tell that there has been a slight drop from the morning gains. Kind of typical lately.

My opinion.......the rising markets and new highs during the day trigger the program trading and AI trading which than impacts the gains heading into the close. Rinse and repeat the next day.....as we have seen all this week.

 

For those that did not believe the FED yesterday.....here is the 501st REPEAT of the same thing they have been saying for the past 6 months.

Dow Jones Rallies, Nasdaq Leads, As Powell Warns Of This Risk; Apple Makes Bullish Move

https://www.investors.com/market-tr...eech-due-apple-stock-spikes-again/?src=A00220

(BOLD is my opinion OR what I consider important content)

"The Dow Jones Industrial Average rallied back into the green after initially being forced lower amid weak jobless claims data. Meanwhile, the Nasdaq led even after Federal Reserve Chairman Jerome Powell warned Covid-19 mutations could set back economic recovery. Also in the stock market today, Apple (AAPL) managed to force its way above a key benchmark, while Microsoft (MSFT) was another top-performing blue chip.

IBD 50 stock Etsy (ETSY) turned in the best performance on the S&P 500. Meme stock GameStop fell, despite announcing it plans to make Chewy (CHWY) co-founder Ryan Cohen the chairman of its board. Software stock PTC (PTC) passed a proper buy point.

Powell Issues Covid Warning; Jobless Claims Rise

Federal Reserve Chairman Jerome Powell said it is vital that Covid-19 vaccinations are issued on a global scale during an International Monetary Fund virtual debate on the global economy. He said global vaccination rates are being watched "very carefully," as it could put the U.S. economy's recovery at risk.

"Until the world really is vaccinated, we're all going to be at risk of new mutations and we won't be able to really resume activity with confidence all around the world," he said.

Fed chairman Powell said it is important people get vaccinated and continue to socially distance, for even if it does not cause as many deaths, it could still slow down the recovery.

He also reiterated the U.S. central bank's stance on its asset purchase program. He said they will be looking at inflation and "the indicators of maximal employment."


"What we've said about our asset purchases is that they would continue at the current pace until we see substantial further progress toward our goals. That will really mean actual progress. We're not looking at forecasts for this purpose, we're looking at actual progress toward our goals.

The minutes from the Fed's March 17 meeting indicated it would be "some time" before they begin removing aggressive monetary measures to support the economy, and will communicate well in advance any eventual move.

Meanwhile, the number of first-time applications for unemployment assistance rose to 744,000 in the week ended April 3, the Labor Department reported. That was above the prior week's 728,000 final tally. This disappointed expectations for a second straight decline to 680,000 claims."

MY COMMENT

Sounds very positive to me. Especially the fear language in regards to the virus. this sort of talk actually.....prolongs.......the bull market since it sounds likt the FED may need to continue their current stance EVEN LONGER.

 

HERE is the ULTIMATE indicator that the economy is in fact re-opening:

One of Costco's secret weapons is coming back

https://www.cnn.com/2021/04/08/business/costco-food-courts-hot-dogs/index.html

(BOLD is my opinion OR what I consider important content)

"Costco diehards, don't fret: The beloved food court, known for its $1.50 hot dog and soda combo and giant menu boards, is coming back to life, albeit slowly.

Costco shut down seating areas in food courts when the pandemic spread through the United States last March. It pared back the menu to hot dogs and pizza for takeout only.

Signs of life started to emerge in the summer when the chicken bake returned. Now, the return to normal is gaining steam. Costco (COST) recently began adding back ice cream and smoothies to the menu and is bringing back tables and chairs in stores that have outdoor seating areas. The company also is bringing back churros to the menu and plans to resume indoor seating as more states loosen Covid-19 safety restrictions.


Costco shut down seating areas in food courts last March.

Costco Chief Financial Officer Richard Galanti expects a full return for the food courts: "God willing. But it's going to take some time," he said in an interview Wednesday.

The company does not break out sales at food courts, but they are one of the perks that help persuade shoppers to dish out $60 or $120 for a Costco membership every year.

The food courts have gained a cult-like following over the years and become ingrained in pop culture. They have been referenced on TV shows like "Baskets" and "Modern Family." Bloggers track the menu closely, ranking their top choices and noting any changes.

"The food courts work. They're one of the things we're known for," Galanti said. "We're pleased that they're coming back."

'Known for that hot dog'

Food courts, anchored by the $1.50 hot dog-soda combo, are no gimmick at Costco.
The company sold 151 million hot dogs last year and hasn't raised the price in more than three decades.
"I know it sounds crazy making a big deal about a hot dog, but we spend a lot of time on it," Costco co-founder Jim Sinegal told The Seattle Times in 2009. "We're known for that hot dog. That's something you don't mess with."

Costco puts the food courts inside stores near the entrances. In warmer areas, like Arizona or Southern California, they are outside, near the front.

"We want to catch you either on the way in or out of your Costco shopping experience. You leave the food court satisfied," Galanti told CNN Business in a 2018 interview.

Stops at the food court get shoppers to hang around. That extra time increases the chance that they will make an unplanned purchase after they're finished with their food.

And for Costco members who don't want to spend money at the food court, there's hope: Costco is also slowly bringing back food samples— another perk for members—to stores. It's adding plexiglass stations at some stores where workers hand out prepared items like sandwiches, chips, cookies and crackers to customers one at a time.

Next, Costco will bring back cooked items for samples such as breakfast sandwiches, noodle dishes, and meatballs, Galanti said."

MY COMMENT

An ALL-AMERICAN cultural experience....making a come-back. Generations of kids have memories of going through Costco with their moms and getting the free food samples.

AND.....on the financial/income side......150MILLION hot dogs in a year. Not to mention the pizza, and all the other food items. AND....what about the Churros. That is some SERIOUS money toward the top and bottom line for Costco that will be coming back on-line soon.

 

YES WE DO........"free the food courts"......the rallying cry of the American re-opening.

A VERY solid day today.....like most people I am nicely in the green at the close. Plus....a bonus beat of the SP500 by .22%.

I need one more day tomorrow to hit a solid green week. As Picard would say......"make it so"

 

oldmanram......what is the other 5% in your wifes account?

 

OMG......NO.....NOT CASH......WTF......OH THE HUMANITY........HOW IN THE WORLD.....I AM MELTING......SAY IT ISNT TRUE.......ET TU BRUTE.....ok...never mind.

 

As usual these days.......OK BOOMER.....its all your fault. Now "we" have tanked the meme stocks and the small caps. Well.....someone had to do it.

Day Traders Go Big on Blue Chips as Meme Stocks Fad Cools

https://finance.yahoo.com/news/day-traders-big-blue-chips-183456919.html

(BOLD is my opinion OR what I consider important content)

"Retail day traders whose frenetic buying sent stocks like GameStop and AMC Entertainment soaring this year are tilting away from tiny memes in favor of mammoth old blue chips like GM and Microsoft.

That’s one explanation offered by analysts at JPMorgan and VandaTrack for why small-cap stocks have cooled, with the S&P 600 Smallcap Index falling about 5% from a March 12 record. Meanwhile, S&P’s large-cap benchmark advanced almost 4% over the same period to an intraday record on Thursday, with Microsoft Corp., General Motors Co. and Starbucks Corp. setting new highs this week.

VandaTrack posited that older investors with more conservative goals may be picking up some of the recent slack in volume left by younger cohorts.

“Wealthier individuals from the Boomer generation may have been responsible for the ramp-up in purchases,” VandaTrack analyst Giacomo Pierantoni wrote. “The average investors’ age in platforms like Schwab or TD Ameritrade is close to 50, and they’re a lot more wealthy than millennials.”

Pierantoni also pointed to large inflows into sovereign bond and credit ETFs. “While most Robinhooders tend to stay away from ‘boring’ fixed-income products, Boomers, who are closer to retirement, often prefer them to equities,” he said. Pierantoni cited Charles Schwab Corp.’s monthly data that show bond ETFs and mutual funds inflows were more than twice the amount for equities.

JPMorgan strategists similarly suggest individuals may have turned toward large companies over small, citing a recent imbalance of retail orders for ViacomCBS Inc. and GM. Discretionary and communications sectors have seen strong retail volumes, according to analysts led by Peng Cheng. The traders remain active in hot sectors like alternate energy and cryptocurrency, with Nasdaq exchange-traded funds still sparking interest.

Retail day traders whose frenetic buying sent stocks like GameStop and AMC Entertainment soaring this year are tilting away from tiny memes in favor of mammoth old blue chips like GM and Microsoft.

That’s one explanation offered by analysts at JPMorgan and VandaTrack for why small-cap stocks have cooled, with the S&P 600 Smallcap Index falling about 5% from a March 12 record. Meanwhile, S&P’s large-cap benchmark advanced almost 4% over the same period to an intraday record on Thursday, with Microsoft Corp., General Motors Co. and Starbucks Corp. setting new highs this week.

VandaTrack posited that older investors with more conservative goals may be picking up some of the recent slack in volume left by younger cohorts.

“Wealthier individuals from the Boomer generation may have been responsible for the ramp-up in purchases,” VandaTrack analyst Giacomo Pierantoni wrote. “The average investors’ age in platforms like Schwab or TD Ameritrade is close to 50, and they’re a lot more wealthy than millennials.”

Pierantoni also pointed to large inflows into sovereign bond and credit ETFs. “While most Robinhooders tend to stay away from ‘boring’ fixed-income products, Boomers, who are closer to retirement, often prefer them to equities,” he said. Pierantoni cited Charles Schwab Corp.’s monthly data that show bond ETFs and mutual funds inflows were more than twice the amount for equities.

JPMorgan strategists similarly suggest individuals may have turned toward large companies over small, citing a recent imbalance of retail orders for ViacomCBS Inc. and GM. Discretionary and communications sectors have seen strong retail volumes, according to analysts led by Peng Cheng. The traders remain active in hot sectors like alternate energy and cryptocurrency, with Nasdaq exchange-traded funds still sparking interest.

A recent survey of more than 1,000 investors from Charles Schwab shows that the newly minted daytraders that arose in 2020 earned less and were harder hit financially by the pandemic than more seasoned peers. What’s more, 72% of those new investors surveyed were more focused on buying and holding for the long-term, compared with 56% who were in it for the long-haul last year.

Whatever the cause, smaller stocks have been losing ground, after their rallies and surging volume that lit up the first quarter failed to reignite in April. Empire Financial Research’s Whitney Tilson has been tracking a basket of 25 short-squeeze bubble candidates since late January -- including GameStop Corp., AMC Entertainment Holdings Inc. and Express Inc. By his reckoning, they’ve peeled off a staggering $63 billion in value.

“Worse yet, the actual number is surely higher due to leverage and options,” Tilson said via email.

MY COMMENT

WELL......DUH. After they make a little bit of money on the CRAZY short term trades...they have the brains to suddenly become longer term investors. Once you actually have some....real money....to lose...the reality starts to sink in. I LOVE the following quote:

"A recent survey of more than 1,000 investors from Charles Schwab shows that the newly minted daytraders that arose in 2020 earned less and were harder hit financially by the pandemic than more seasoned peers. What’s more, 72% of those new investors surveyed were more focused on buying and holding for the long-term, compared with 56% who were in it for the long-haul last year."

I guess we just might be entering another.....NEW ERA.....another NEW NORMAL.......the era of the long term investor. Sooner or later EVERYONE grows up.....well at least most people. The more money you have....I would guess....the more likely you are to be a long term investor. BUT.....I could also see that the more money you have the more you have the ability to do a little trading.....for fun and for the mental challenge.....as long as you limit your exposure