This is the penultimate DD of common sense about the #MOASS involving highly shorted securities (ex: $AMC, $GME, $SPCE). This is going to be a worthwhile reading session separated into many parts covering the aftermath, the issuing speculated crash, and wealth preservation. Disclaimer: Anything from this thread is not financial advice and there will be underlying financial principles that are best applied for me. Your money is your responsibility and I am not held accountable for your individual decisions if something happens to your lost tendies.
(Part 1) The #MOASS is currently under preparation and $AMC is experiencing a wave of enormous FOMO and delta hedging which could drive the price up even more before shorts are forced to cover. A short squeeze does not start unless someone starts covering. Plain and simple.
(Part 2) Many generous apes and cats have access to analytical platforms such as #ORTEX giving us insight what is the current SI (Short Interest) including the shares on loans. It makes absolutely no sense to sell before all of these are covered.
(Part 3) Considering the movement was initiated to eliminate bad actors on the market, this became a war against Wall Street. It makes no sense to sell if we have not seen headlines about institutional bankruptcies. We are fighting fair and square based on their playing field.
(Part 4) We should be holding until most of these bad actors are gone giving a chance to the market having a clean slate with the new kings & queens dictating how the world should go: retail investors.
(Part 5) Truthfully told, once banks and clearing corporations are hurting, the FED would be forced to print to bailout these businesses including paying for our tendies. They are part of the foundation of that huge house of cards which would collapse entire markets.
(Part 6) When we're talking about bailouts, we're speaking about retail businesses as well as institutional secondary branches going bust. Literally millions of unemployment. For us, we are somewhat part of that huge house of cards because our wealth is buried in that rubble.
(Part 7) Consider ourselves to be modern explorers finding lost gold under a collapsing temple of an ancient civilization. And we would require builders to construct levers to hold founding structures until we get all the treasure out in time.
(Part 8) If you think the FED will be printing endlessly for our tendies, just consider international repercussions. The US is in a little predicament dealing with inflation where their target is 2%. They are way above that with 4.16% (April 2021)
(Part 9) As inflation goes up, the currency value decreases. It is absolutely stupid to think we all hold, even after most of the bad actors are gone, forcing the FED to print more while your tendies are decreasing in value. Hold that thought.
(Part 10) I don't think many people would be happy bringing a wheelbarrow worth of cash to buy a single loaf of bread. That's what happened in post WW1 Germany, post WW2 Hungary, North Korea, Zimbabwe, Venezuela and now we're talking about Argentina.
(Part 11) The original movement was created to eliminate bad actors of the market and we should all hold until these are gone and we should contribute to additional damage into the market and hurting more retail investors not partaking into the squeeze.
(Part 12) You want more money? Buy more shares. Every keen investor is expected to save 40-50% of their annual income, starting from a young age. Every person is in a different financial situation but saving is so important for passive income because hold that thought.
(Part 13) So you made it out from the squeeze? Congratulations! You have your tendies. But wait, don't forget about seeing a CPA, get your taxes done and solving your liabilities.
(Part 14) In this day and age, the average person, in terms of financial literacy and skills of personal financing, does not understand the differences between assets, equities, and liabilities.
(Part 15) Common investors need to kill off liabilities post-squeeze ASAP. These include credit cards, loans, mortgages, student loans.
(Part 16) The greatest minds of the finance game such as Ray Dalio, Michael Burry, and Harry Dent, are speculating, based on statistical data, that the world will be facing a severe bearish market reaching the near-levels of the Great Depression.
(Part 17) Considering the repo numbers and how the world has overextended themselves on margin, credit, and debt. We are overdue for a massive correction.
(Part 18) Based on the 2008 financial crisis, it took an ENTIRE year until the SP500 reached the very bottom (the true dip) until it took until around 2014 for its underlying stocks to recover from where they fell.
(Part 19) With the Great Depression, it took several years until index portfolios reached the bottom and even more years to recover from where they fell. Now, hold that thought.
(Part 20) Is it wise to reinvest into the market right away? Based on historical and present data, it won't be for a while. History tends to repeat itself with the financial world revisiting dark ages until we boom towards a new golden age. That's the cycle of the market.
(Part 21) What about dividend based stocks? Well, if you're impatient, be prepared to invest in the ATHs and face a dip of their stock value. The dividend amount should remain the same but a decrease of the stock value means less fund available.
(Part 22) Example: The ETF value drops but the dividend yield increases. The ETF value increases and the dividend yield decreases to keep the same dividend amount. Although, just keep in mind the less money the fund has, chances are the dividend amount will drop.
(Part 23) Just wait out for the storm to pass and buy the delicious dip. What about real estate? Should you invest into a house or take out a loan for one right after my tendies. Absolutely not.
Second part of the penultimate DD coming out soon.
Posted 28/05/2021
|
Thread abonnieren
