Share Picks 2020

voluntary

The time has come for cheap stocks, not the expensive ones.

I've mostly moved to already discounted cyclicals in the last few weeks which largely saved me in the last few days.

Plus cash looks like a winner candidate in November.

And Bank of America predicts 20% drop in stock valuations after elections.

Supercell

My crystal ball is telling me that COVID winter isnt priced in however if the election result in America is decisive we may have a relief rally to near the highs again but the worsening figures as we get into winter and COVID does its thing will mean another decline again.
That said if we have a vaccine with wide availability this side of Christmas who knows? I read one report that the CDC advised Governors to prepare for vaccine availability starting November 15th so it may happen.

Bruce Flatt (CEO of Brookfield Asset Management) reckons that this isn't the game changer everyone seems to think it is in terms of WFH and the big cities in decline. His main premise being that the weak will perish and the stronger will just get stronger.
Very interesting interview on Youtube worth a watch, I am a big fan of Mr Flatt.

voluntary

I wouldn't count on a vaccine wide availability. There's even no flu vaccines available and there are several manufacturers making them on a full steam. It will take years to have vaccine available for a wider population.

And then, how long will it be effective for? If less then 1 year then it may not become a game changer.

bfa1509

voluntary wrote: »

The same reason you will not sell on Monday even though deep down in your consciousnesses you know the blood in the markets have only started to flow.

I don't disagree. I'm waiting for the election -if it goes blue then I'm 100% out. The weakening of the dollar is enough incentive for me.

Someone said earlier that a Biden win may be good for the economy initially similar to when Obama was elected, but I think the market is wise to that this time.

If ever there is a positive, at least I'll have a nice cgt offset for all next year's gains...

One More Toy

bfa1509 wrote: »

I don't disagree. I'm waiting for the election -if it goes blue then I'm 100% out. The weakening of the dollar is enough incentive for me.

Someone said earlier that a Biden win may be good for the economy initially similar to when Obama was elected, but I think the market is wise to that this time.

If ever there is a positive, at least I'll have a nice cgt offset for all next year's gains...

I'm hanging in there as I've been doing the past 10 years. Presidents come and go, I've a 20 year time frame. Will it hurt seeing my stocks get battered? Sure.

I'll try and disconnect from cnbc and other media and hold out

Jim2007

bfa1509 wrote: »

Someone said earlier that a Biden win may be good for the economy initially similar to when Obama was elected, but I think the market is wise to that this time

And yet history show us that Republicans are really bad news for the market:




Betting on this kind of crap is what will cost people money in the long term.

Bob24

Pretty good decision matrix on the relevant economic policies influencing the markets, depending on who wins the presidency and who wins Congress!

https://twitter.com/ronstoeferle/status/1322264020628418560?s=21

Shedite27

Jim2007 wrote: »

And yet history show us that Republicans are really bad news for the market:




Betting on this kind of crap is what will cost people money in the long term.

Convenient you’ve left Trump out of that. I suspect no matter how far you go back, the market goes up with Republican presidents

sirboby

Shedite27 wrote: »

Convenient you’ve left Trump out of that. I suspect no matter how far you go back, the market goes up with Republican presidents

it says in the bottom
"Barack Obama's current term is incomplete"
So obviously the table was made during his second term, hence why Trump was excluded.

Democrats Historically do have a more positive impact on the stock market, that's not a debate.

That being said I don't know who would have a better impact over the next 4 years, Trump or Biden.

One More Toy

sirboby wrote: »

it says in the bottom
"Barack Obama's current term is incomplete"
So obviously the table was made during his second term, hence why Trump was excluded.

Democrats Historically do have a more positive impact on the stock market, that's not a debate.

That being said I don't know who would have a better impact over the next 4 years, Trump or Biden.

Isn't Biden all for increase in cgt in the states?

Jim2007

Shedite27 wrote: »

Convenient you’ve left Trump out of that. I suspect no matter how far you go back, the market goes up with Republican presidents

Well first of all I did not create the chart and secondly it does not matter if Trump is in it or not. The outcome will be the same - trying to time the market, following the talking heads, betting your gut etc will eventually cost you money.

Unfortunately though it takes about 20 years for people to prove it to themselves. Achieving an annualized return of 12.5% or so is very doable if one works at it. And if you achieve that you double your wealth every five years, so missing out of 20 years is a serious loss of wealth.

RIGOLO

Jim2007 wrote: »

Well first of all I did not create the chart and secondly it does not matter if Trump is in it or not. The outcome will be the same - trying to time the market, following the talking heads, betting your gut etc will eventually cost you money.

Unfortunately though it takes about 20 years for people to prove it to themselves. Achieving an annualized return of 12.5% or so is very doable if one works at it. And if you achieve that you double your wealth every five years, so missing out of 20 years is a serious loss of wealth.

any sign of a Share tip forthcoming ... :rolleyes:

RIGOLO

Supercell wrote: »

My crystal ball is telling me that COVID winter isnt priced in however if the election result in America is decisive we may have a relief rally to near the highs again but the worsening figures as we get into winter and COVID does its thing will mean another decline again.
That said if we have a vaccine with wide availability this side of Christmas who knows? I read one report that the CDC advised Governors to prepare for vaccine availability starting November 15th so it may happen.

Bruce Flatt (CEO of Brookfield Asset Management) reckons that this isn't the game changer everyone seems to think it is in terms of WFH and the big cities in decline. His main premise being that the weak will perish and the stronger will just get stronger.
Very interesting interview on Youtube worth a watch, I am a big fan of Mr Flatt.

Great interview. For a CEO he is very open and I expect he is good at his job and influencing country leaders to follow directions beneficial to his orgs portfolio.
Im not sure I buy into it all, but he delivered it with conviction and backup.
Real estate mogul says we will all be back in the office and expanding urban cities in the next 18 months... he couldnt very well say anything else.

Very interesting structure to their portfolio, they have huge interests in many areas renewables,property,infrastructure and all segregated, so which do you play BAM, BIP, BEP or BPY ?

Earnings coming up, BAM-Nov12 , BEP Nov4, BIP Nov12, BPY Nov6, defintely one to watch dependant on presidential result and as we exit this Covid thing in the next 6-18 months. Seems to have alot of its value already priced in. Cant see BPY doing much , but BIP and BEP could be good long term investments plus a healthy dividend.

ExMachina1000

Iv only just noticed that trading 212 offer pre and post hours in the cfd section. Extra time to over leverage yourselves. Margin call messages flying

Supercell

RIGOLO wrote: »

Great interview. For a CEO he is very open and I expect he is good at his job and influencing country leaders to follow directions beneficial to his orgs portfolio.
Im not sure I buy into it all, but he delivered it with conviction and backup.
Real estate mogul says we will all be back in the office and expanding urban cities in the next 18 months... he couldnt very well say anything else.

Very interesting structure to their portfolio, they have huge interests in many areas renewables,property,infrastructure and all segregated, so which do you play BAM, BIP, BEP or BPY ?

Earnings coming up, BAM-Nov12 , BEP Nov4, BIP Nov12, BPY Nov6, defintely one to watch dependant on presidential result and as we exit this Covid thing in the next 6-18 months. Seems to have alot of its value already priced in. Cant see BPY doing much , but BIP and BEP could be good long term investments plus a healthy dividend.

Yes, you are right, I thought the same myself, i'm not sure I am in full agreement with him about the WFH thing. Google has said its workers can permanently WFH if they want, my employer, another big American IT company has said the same, so I'm not so gung ho about office space returning to pre-covid levels. I do agree with him about the stronger retail outfits like SPG and probably MAC too will come out of this stronger though. MAC could easily become a multibagger as its really been hit hard, maybe too hard.
I'm in agreement with regards BPY, its had a great run from ~$10 to $14 recently mind you the dividends are still very tasty.
BEP has been having a great run recently and renewable are hot, I think there is plenty of runway left on that.

Of course the mother ship, BAM remains depressed and historically has outperformed the S&P500 for multiple years now, it was badly beaten in March so it maybe vulnerable to further declines in any overall market weakness, but for a longer term investment I think its pretty solid.

Timmaay

ExMachina1000 wrote: »

Iv only just noticed that trading 212 offer pre and post hours in the cfd section. Extra time to over leverage yourselves. Margin call messages flying

Only for the most popular of markets. If your going down that road your better of using the spread betting section on IG, it allows you leveraged and extended hours for some markets,and the big advantage, its tax free because its considered gambling lol. I use it regularly enough to swing trade, I get hit on fees for having to pay to keep position's open overnight but they add up to alot less than having to pay cgt. I generally keep the leverage low however, and aim to keep half the account in cash.

One More Toy

Timmaay wrote: »

Only for the most popular of markets. If your going down that road your better of using the spread betting section on IG, it allows you leveraged and extended hours for some markets,and the big advantage, its tax free because its considered gambling lol. I use it regularly enough to swing trade, I get hit on fees for having to pay to keep position's open overnight but they add up to alot less than having to pay cgt. I generally keep the leverage low however, and aim to keep half the account in cash.

Glas it's working out for you. I tried cfds and spread betting early in my career with outstanding failure, I'd warn anyone off them

Timmaay

One More Toy wrote: »

Glas it's working out for you. I tried cfds and spread betting early in my career with outstanding failure, I'd warn anyone off them

Trust me I've made enough silly silly mistakes with them, I've zero interest in any sort of scalping/daytrading, complete headwrecking rollercoaster, I simply use spread betting now to swing trade across afew days/weeks timeframe and as I said I'm cautious with the leverage. They absolutely aren't for any beginners and need to be respected.

sirboby

Interesting day in the market,

I am getting into CDProjekt's stock, CDR for a ~3-6 month play

I think the valuation is high from what I can tell, but that doesn't seem to matter these days.

Share price has dropped 25% from its peek in the start of September, because of repeat delays on Cyberpunk 2077.
But I don't think that is a very bad thing for this company in particular. It has a great history of good user experience and I think it will boom not bust.

It has a few other things in the pipeline such as a ar Witcher phone game, news of which may temporally pump the share price but I would not want to be holding when it gets released.

Also I don't see the US election affecting this really at all.

Nemeses2050

All the Big Oil names in Green, are they banking on orange man winning?

jams100

Nemeses2050 wrote: »

All the Big Oil names in Green, are they banking on orange man winning?

More likely a vaccine, i think the markets are expecting a Biden win judging by the infrastructure stocks...clean energy, caterpillar etc.

Oil has been beaten to a pulp so much so that its undervalued, maybe I'm focusing to much on shell (which I own) but I read their earnings over the weekend along with their conference call, they are a compelling case for an investment at current prices, in saying that they'll probably dip another bit again.

In 12 months time oil will be one of those stocks people will look back at and say why didn't I get in on that, might never be this cheap again as the small producers get bullied out and the big boys reduce their operational costs and close smaller refineries.

How many people will be wanting their holidays when this virus starts to peter out with a vaccine, how many family members in Australia, USA that people haven't seen in over a year will want to go visit them? Aviation will kick off quick enough, im holding shell for 12+ months and see how it goes, worst case your getting a 5% dividend, that they've said they'll continue raising

Nemeses2050

jams100 wrote: »

More likely a vaccine, i think the markets are expecting a Biden win judging by the infrastructure stocks...clean energy, caterpillar etc.

Oil has been beaten to a pulp so much so that its undervalued, maybe I'm focusing to much on shell (which I own) but I read their earnings over the weekend along with their conference call, they are a compelling case for an investment at current prices, in saying that they'll probably dip another bit again.

In 12 months time oil will be one of those stocks people will look back at and say why didn't I get in on that, might never be this cheap again as the small producers get bullied out and the big boys reduce their operational costs and close smaller refineries.

How many people will be wanting their holidays when this virus starts to peter out with a vaccine, how many family members in Australia, USA that people haven't seen in over a year will want to go visit them? Aviation will kick off quick enough, im holding shell for 12+ months and see how it goes, worst case your getting a 5% dividend, that they've said they'll continue raising

I agree they have been beaten down to death (Bankruptcy) and as you noted big names will become much stronger with consolidation and diversification...

IMO RDS is a solid stock and definitely one of the Oil stocks to own for the long term... they're up nearly 10% in the last few days...

Tech is under pressure today and probably will suffer when other sectors start rising...

littlevillage

Nemeses2050 wrote: »

I agree they have been beaten down to death (Bankruptcy) and as you noted big names will become much stronger with consolidation and diversification...

IMO RDS is a solid stock and definitely one of the Oil stocks to own for the long term... they're up nearly 10% in the last few days...

Tech is under pressure today and probably will suffer when other sectors start rising...

Soo

Shell
BP,
Exxon,
Chevron,
Total.

Any one that I am missing? And any particular favourite?

Nemeses2050

littlevillage wrote: »

Soo

Shell
BP,
Exxon,
Chevron,
Total.

Any one that I am missing? And any particular favourite?

All solid names however BP n EXXON slightly weaker of the pack

However I would go in the order of

RDS, Chevron, APA, MRO (last two High Risk, high growth)

Bob24

littlevillage wrote: »

Soo

Shell
BP,
Exxon,
Chevron,
Total.

Any one that I am missing? And any particular favourite?

I'd go for Total or Shell as my top choices.

I think Total is the best managed (and isn't too indebted comparatively to other players plus has a reasonable average production cost, which allowed them *not* to cut their dividend in spite of the massive crisis for the industry). IMO Shell has a problem with its current CEO, but still it is a solid company and if you buy the UK stock there is no withholding tax on dividends which is a nice bonus (particularly if you are not subject to income tax). Those 2 are also the ones which have made the most investments in renewables and energy distribution (still a small part on their business, but I find it positive that they are working on some diversification from oil).

Shedite27

I reckon today is one of those days to "buy when others are fearful"

AmberGold

On the subject of Oil, Tullow have sold their Uganda operation to Total and will be receiving $500M any day now. This combined with their hedging strategy @ $57 /bbl puts them in a good position to ride this out. Their new CEO seems to be very capable, worth a look.

outonawing

I'm surprised that Pfizer PFE hasn't moved higher, given the expectations about their vaccine.

MAJJ

Bob24 wrote: »

I'd go for Total or Shell as my top choices.

I think Total is the best managed (and isn't too indebted comparatively to other players plus has a reasonable average production cost, which allowed them *not* to cut their dividend in spite of the massive crisis for the industry). IMO Shell has a problem with its current CEO, but still it is a solid company and if you buy the UK stock there is no withholding tax on dividends which is a nice bonus (particularly if you are not subject to income tax). Those 2 are also the ones which have made the most investments in renewables and energy distribution (still a small part on their business, but I find it positive that they are working on some diversification from oil).

Hi Bob,
Would the EUR exchanges be the ones for Total and RDS. I know noob question and any action/ risk is my own, thank you.

treatyman

Is Shell RDSB.L or RSDB? Why is there 2? Sorry, newbie question.

Bob24

MAJJ wrote: »

Hi Bob,
Would the EUR exchanges be the ones for Total and RDS. I know noob question and any action/ risk is my own, thank you.

I'd suggest to buy Total on the Paris stock exchange (the symbol is FP).

Shell can be bought in London (in GBP) or Amsterdam (in EUR). But make sure you buy class B shares (symbol RDSB either in London or in Amsterdam). Class A shares are paying dividend from the Netherland meaning there is withholding tax applied, while class B shares are paying it from the UK which means no withholding tax.

Bob24

treatyman wrote: »

Is Shell RDSB.L or RSDB? Why is there 2? Sorry, newbie question.

RDSB is listed both in London and in Amsterdam for historical reasons (Shell being an Anglo-Dutch company).

Both are the exact same shares except one is listed in GBP and the other one in EUR (and the London listing is a bit more liquid). No other difference so you can buy on whichever exchange makes the most sense with your broker (if it makes no difference to you, go for London as it is the most liquid listing).

The key thing to pay attention to is to buy B shares rather than A shares (A and B are both dual-listed in London and Amsterdam). See reason in my above post.

PHG

have gone long Calnex, half the normal position size I take and it was on the upper limit of Spread and Minimum Market Cap size I will invest in.

Good increase in profit the last 2 years and IPO this year. Will add/Close based on results or Trading Statements.

They have Cash in the bank too. Summary of who they are and what they do below taken from Admission doc

Calnex designs, produces and markets test instrumentation and solutions for network synchronization and network emulation, enabling its customers to validate the performance of the critical infrastructure associated with telecoms networks. To date, Calnex has secured and delivered orders to over 600 customer sites in 68 countries across the world. Customers include BT, China Mobile, NTT, Ericsson, Nokia, Intel, Qualcomm, IBM and Facebook

Calnex benefits from high levels of repeat revenues, with over 80 per cent. of its revenue over the last three years coming from repeat customers and an average length of engagement with its top ten customers in FY20 of nine years. The Company's top ten customers accounted for over 50 per cent. of revenues in FY20. In recent years the Company's top ten customers have included Non-Telecoms customers. In FY20, these Non-Telecoms customers represented 14 per cent. of the top ten customer revenue."

And 5G is beginning its global roll out....

Calnex has a range of test and measurement solutions ready to meet the early requirements of 5G market participants. The Company is well placed to evolve its current products, alongside the introduction of new products, to meet its customers' future requirements as the roll out of 5G progresses.

It could g belly up very quickly though, DYOR

Nemeses2050

It's Green day, literally every stock bar few exceptions in Green

It seems market is assuming a clean majority to Biden...this rally might last a day or two before covid19 reality hits again....so play carefully

99nsr125

littlevillage wrote: »

Soo

Shell
BP,
Exxon,
Chevron,
Total.

Any one that I am missing? And any particular favourite?

Philips 66

OMV in Europe

Altagas

Enbridge

MikeSoys

Shedite27 wrote: »

I reckon today is one of those days to "buy when others are fearful"

.. Think you missed the boat on that..

MikeSoys

littlevillage wrote: »

Soo

Shell
BP,
Exxon,
Chevron,
Total.

Any one that I am missing? And any particular favourite?

What about BHP(Formally bhp billion).. Its unloved at the moment or one that day traders like is RIO TINTO--sorry commodities but sure don't have all your egs in one basket :-)

OwlsZat

Nice pop on Aptevo Therapeutics today one of my long term holds after they the announced complete remission of a leukaemia patient on their P1 trial.

peterofthebr

treatyman wrote: »

Is Shell RDSB.L or RSDB? Why is there 2? Sorry, newbie question.

https://www.shell.com/investors/share-price-information.html

padjocollins

wouldn't touch oil stocks that look like a bargain, you're swimming against a heavy tide. you might do allright in an individual stock (after doing your research) but swimming against big industry trends in energy and transport is in my view very risky

https://awealthofcommonsense.com/2020/09/is-exxon-the-next-general-electric/

jams100

Futures popping, doesn't always translate, I know. If futures hold current gains then its a day for some profit taking.
Nice to finally see what looks to be a significant green day for amazon after smashing earnings again in Q3!

ADZAM

ADZAM wrote: »

Long time lurker, I really enjoy the content, I created this account to comment on this board and share my portfolio and some thoughts.

Lemonade @$55 average
I bought this as I was intrigued by the Insurance disrupter taking on legacy insurance services with a recurring business model, sexy UI and a tech first approach. I did not sell when I should of when it hit the highs of ~$90 shortly after IPO (mistake). They are Certified B Corporation which "are a new kind of business that balances purpose and profit" (this could be a pro if it's good marketing for socially conscious millennials) but it does worry me as a shareholder that the company needs to balance purpose with Profit - what b*llox. The expansion plans are exciting, you can imagine market cap growing on entry to new Geos, new insurance services (Car, Health, other). I feel I know this stock well having watched it since IPO, I will average down $40-$50 range and NEXT TIME, set stop loss in the $70+ range

Slack @$26 average
I bought the day of the IPO for $42 and have been averaging down since. It haunts me that I choose Slack over Zoom and watched Zoom moon and Slack went down or sideways. I kept saying Zoom was overvalued at $100, $200, $300, $400 (a lot of FOMO here). Why I stick with Slack is, I feel I know this stock now watching the price action, CEO on CNBC etc and it *could* work out in the end as Slack is very sticky once its rolled out to employees and the pure hope that Slack could get acquired by a legacy tech company (Oracle, IBM) for $40-$50 if not get there themselves in 1-2 years with the headwind of Covid-19.

J&J @$144 average
They are working on a vaccine, they may not be the first to market but there will be UNLIMITED DEMAND for this vaccine - J&J will get their share of the market, and with the hand sanitizer recalls in schools today, maybe not being first could be a good thing. I will hold J&J as it's a pretty stable stock and dividend payout in December. Pharma plays are very speculative, I've been burned many times. Play safe with them!

Asana @$24 average
Collaboration software, recent IPO, I think it could be a 2x in 1-2 years, I will average down if it goes <$20

My biggest regret this year is missing out on Zoom, fannying around thinking it was overvalued at $100, $200, $300 and so on. Heartbreaking.

I've been watching ISE stocks, mainly Dalata - I was hoping with the level 5, they would break below €2 and I'd hold in anticipation of a recovery, they bounced around €2.25 this week and have popped a bit - anyone have any thoughts on Dalata Group? How is Ryanair not <€10? Would you put money in either of these in this climate? Buy when there's blood in the streets?

Phew, good to offload. Appreciate any advice, comments, observations.

Eventbrite [EB] - a risky-ish, post covid-19 recovery play
They are an event ticketing service - Physical events (remember them?) and virtual events
Eventbrite is one of the most used (loved?) ticketing platforms and integrates with many common systems.
Cut half their staff in April so should be a leaner machine
It was $22 in February 2020 precovid19 - earning call tomorrow - I bought in today @$9.46 (Market Cap $860 million)

I'm assuming the next week or so is gonna be pretty volatile but I couldn't resist buying today.

Updates:
Lemonade - held through some bad days in the $40 range - now in the green
Asana - added more in the $21 range in the last week or so
Slack - I sold Slack at $28.50 - someone here said to water flowers and cut the weeds so that's what I did - may re-enter in the lower $20's.
J&J - holding position - nice dividend coming up and expecting more good vaccine news

Thargor

Took another Amazon share when it dipped below 3k the other day, free money at that price. I might just change my investment plan to buying an Amazon share every month or two from now on.

RIGOLO

Taking an absolute bath on my short plays against the S&P , NASDAQ and Euro STOXX . Portfolio is green but cant rationalise whats going on .
Im both stubborn and old school, going to stick out the short another few weeks. Like all hedges its a safety net, sometimes turns out your didnt need it.

Covid lockdowns worldwiide, election in the balance still no stimulus plan but markets are booming .
At this point the FED and ECB are supporting a Universal Income policy by their countrys, free money for everyone ,
We are witnessing the worlds populations being paid to stay at home, but whilst at home most people cant stop spending. Somebody will have to ultimately pay for it.

Timing belt

RIGOLO wrote: »

Taking an absolute bath on my short plays against the S&P , NASDAQ and Euro STOXX . Portfolio is green but cant rationalise whats going on .
Im both stubborn and old school, going to stick out the short another few weeks. Like all hedges its a safety net, sometimes turns out your didnt need it.

Covid lockdowns worldwiide, election in the balance still no stimulus plan but markets are booming .
At this point the FED and ECB are supporting a Universal Income policy by their countrys, free money for everyone ,
We are witnessing the worlds populations being paid to stay at home, but whilst at home most people cant stop spending. Somebody will have to ultimately pay for it.

No stimulus now till the end of January in the US...covid will get worse in the USA as it has in Europe over the winter period. 3rd week in Nov is my bet for a correction in the tech stocks.

manonboard

Thargor wrote: »

Took another Amazon share when it dipped below 3k the other day, free money at that price. I might just change my investment plan to buying an Amazon share every month or two from now on.

I've a fair bit invested at 3300. I regret being impatient as the recent swings have been easy money to play as you say. <3050 is a very nice swing to take.

Thargor

manonboard wrote: »

I've a fair bit invested at 3300. I regret being impatient as the recent swings have been easy money to play as you say. <3050 is a very nice swing to take.

Its the share to hold for the next few years in my totally amateur opinion, even with recent gains and a post election dump.

manonboard

Thargor wrote: »

Its the share to hold for the next few years in my totally amateur opinion, even with recent gains and a post election dump.

I would agree, and its why i found it easy enough to incur recent losses. (i invested big in it). I work with their cloud tech, and i think people greatly underestimate what it's going to be come.. Not being in Microsoft cloud or AWS would be a crazy unimaginable decision to make for anything but the utmost sensitive information. I see the vast majority of companies putting thier IT in MS or AWS.. and i can hardly fathom the scale of such an enterprise.

Our rising costs each month in my company are 80k with a 1.2k increase each month. That is just for my department. We are happy to pay it for the incredible level of resources and services we are getting. Once you move into the cloud, which is just madness to not to, you are stuck in the cloud.

Shedite27

RIGOLO wrote: »

Taking an absolute bath on my short plays against the S&P , NASDAQ and Euro STOXX . Portfolio is green but cant rationalise whats going on .
Im both stubborn and old school, going to stick out the short another few weeks. Like all hedges its a safety net, sometimes turns out your didnt need it.

Covid lockdowns worldwiide, election in the balance still no stimulus plan but markets are booming .
At this point the FED and ECB are supporting a Universal Income policy by their countrys, free money for everyone ,
We are witnessing the worlds populations being paid to stay at home, but whilst at home most people cant stop spending. Somebody will have to ultimately pay for it.

Euro STOXX is the only one I'd have been hesitant to short, they haven't really run off the lows we had in March, and Biden being elected will clear to route for a Brexit deal which is a major hold on the economies.

Jesper

Timing belt wrote: »

No stimulus now till the end of January in the US...covid will get worse in the USA as it has in Europe over the winter period. 3rd week in Nov is my bet for a correction in the tech stocks.

It's a pretty sickening system that has a dramatic bounce on the market due to a 'split' election. Democrats highly likely to win the presidency and Republicans highly likely to win the Senate.
This all means that one side says 'Break up Big Tech' or 'Regulate medical and pharma pricing' and the other side says no. Ironically both sides agree on both strategies to a high extent. But in such a fractious environment the market understands that there will be no common agreements in the foreseeable future. Prescription drugs rose by 10% in 2020. What will they go up by next year with the headwind of Covid?

Bemused by it myself but I'd be happy to buy pharmaceuticals/Bio-Tech. BMS, J&J, Abbvie, Pfizer, MSD.