When Trump tweets, be ready

⚖ Active trading
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Just saying :stuck_out_tongue:

Probably my most favourite strat from last year, but if you see Trump tweet anything bad about the economy (such as most recently saying he can wait forever for a China deal), the stock prices drop a good amount for 1 or 2 days. This is usually followed by an opposite tweet from Trump (such as saying a China deal is very likely) sending stock prices in the opposite direction a day or two later (I wouldn’t be surprised if he’s dealing on the side lol).

Buy them when they are cheap and just wait for the short term recovery, usually brings an easy and healthy profit. Not always the case, as with anything but an interesting observation to say the least :slight_smile:

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We need some bad news soon, there is not many fair priced companies out there :open_mouth:

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The fact trump tweets are so effective is a rather depressing sign of just how gullible and easily mislead the typical retail investor can be. As for bad news, need not look further than sending him a leading question just to provoke a response, I am sure he will come up with something to send the market scrabbling once more.

I find the back and forth rather amusing to watch, another person to watch would be Boris Johnson. the UK equivalent. Not so much a tweeter but someone just as likely to make decisions that leave you scratching your head in confusion while prices react violently.

How people didn’t see his deadline coming is beyond me, he had been going on about the deadline for so long it should have been understood he would pass legislation despite it not being needed, just to act as following through on his word. It made a great day for me to sell off some stocks that gained 15% overnight and became too overvalued for my tastes and left me with free cash to invest on a stock that plummeted about 7% after releasing a poor performance report.

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Ye it is depressing and illegal too if he is dealing on the side.

But it makes sense for the big investors to be scared, he is the president of the USA after all. They would probably lose their jobs if they didn’t react to it.

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All of this tweeting occurs and people like Warren Buffett keep on doing business as usual. It’s more so those at the bottom (retail) or those who are managing other people’s money and cannot convince them that there is nothing wrong. Nowhere is there a tier of people involved in the stock market that will lose their jobs just for ignoring or going against the president.

from what I have seen, most professional traders opt to watch the reaction and act based on that whether there are profits to be made, rather than the tweet itself.

Investing focused people will see all this action and will just treat it as something that occurs in the short term rather than the long term. Long-term investors will only care if the tweet causes share prices of solid companies to drop suddenly, as that’s a prime opportunity to buy more shares at a discount.

I doubt Trump is personally profiting from messing with the markets, but I wouldn’t put it past his family to do so. Trump just isn’t that kind of businessman, if he can be called such. Trump already has his interests in the fact he continued to run his company despite taking office, something they expected him to stop doing according to tradition.

All that matters is that it works and it is effective. So absolutely monitor his twitter account to see what happens next and perhaps you can catch the next shock wave early on. :crossed_fingers: :grin: :+1:

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@Vedran, I have just seen this pre-Covid19 post.
Following from this, there obviously has been some dreadful news (terrible health/social and economic situation worldwide) and the stock Exchange has now fallen, and could continue to fall.
It is so bad that I do not think anyone knows really where to invest!

Any thoughts on market opportunities?

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Lol every Thursday Jobless claims spark a rally. WooHoo ! :smiley:

Crazy crazy world we live in.

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Well it is good time to seek only quality in stocks. Some example tickers I am following:

O - Realty Income
RTX - Raytheon Technologies
LOW - Low’s
FRT - Federal realty trust
GD - General Dynamics
ENB - Enbridge
EMR - Emerson Electric
BNS - Bank of Nova Scotia
RY - Royal Bank of Canada

Some of the companies on shortlist :slight_smile: anyway balance sheet is top priority nowdays :wink:

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I know the question was not for me haha… but here are my two cents.

I always follow Peter Lynch’s advice:
“You buy a company, these are not lottery tickets… do your research on every company.”

Followed by Warren Buffet:
“Buy what you know.”

So far, these are my mantras for investing. :pray:

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@Vedran Thanks, I will have a look at them :slight_smile: . Currently staying away from the Aerospace manufacturing/design sector due to the potential for companies freezing their plane requests, I do intend to invest a bit in Airlines, I think they will bounce back sooner. Real Estates are a good one as long the housing market, retail (if shops close) or even the market for offices does not collapse (which could happen if companies move towards working from home, I guess it depends on rental agreements and timeframes), I think some exposure to this is good but keeping it under tight scrutiny. From a quick look Emerson Electric seems good. Enbridge lookes good also, just to note that according to the balance sheet on T212 it has very limited Cash and Equivalents on its Balance Sheet.

With regards to the banks, do any of you think something similar may happen in the USA/Europe where the banks may go into a downward spiral?
I seem to remember that that has been happening in Japan for the last 10-20 years, which I guess could now be caused globally by low interest rates reducing profits as well as an increase in “bad debt”.

@laguiar I agree, I actually follow both of them particularly the “Invest in what you understand”. Regarding the research, i always research but lately I have potentially been a bit too focussed on cash and debt (%), the details of which are usually based on the end of 2019 balance sheet which is probably already out of date (particularly for the cash).

I must admit I struggle to find sigificant use to the P/E ratio, it varies alot between companies. I only find it useful when comparing very similar companies accross an industry eg. Telecomm providers, but broadly speaking it rarely is the defining factor for my investment, except when looking at investments in the USA (where I am even more cautious due to my reduced knowledge of the general circumstances at ay one time and of particular markets). Any thoughts (from anyone) on P/E ratio (and others) and how to improve my analysis/research of companies and decision?
I have had investments in stocks in the past, but I have only recently returned to investing in stocks. My other and new mantra for investing is “diversify” in companies, sectors and geographies, but yes, I also follow yours laguiar. On this topic, I was looking at some companies in the health sector/pharmaceuticals, but I do not understand their business model and Growth so I have been very reluctant to invest in them, on the other hand I have been considering a sector ETF, due to Covid-19 potentially leading to increased demand, but I have not made a decision to invest yet as I feel like the risk is quite high due to my limited knowledge of the sector.

And yes, the question was general. If anyone has any more companies they feel are currently good investments then please mention, and if possible why :slight_smile:.

I am currently awaiting a significant market drop prior to re-starting my investments (progressively, around 5-12% a week over a period of around 3 months) to try and hedge out Covid-19 related variations and get a good average price. I might miss out if the market starts to rise again without falling significantly, but it is a risk that I have decided to take.

Also, has anyone seen the latest from Trump?
It is not a Tweet, but it is still very surprising for a President of any country to just suggest something like that in a press conference… I do not think it helps as it may mislead the general public.
Coronavirus: Outcry after Trump suggests injecting disinfectant as treatment

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@EquityInvestor

You seem to have your head screwed on right, remember to always go by your own convictions, it’s easy getting swept up in the news/stories/BS etc right now.

Regarding P/E - I think this is a pretty useless stat. It just says what people think it’s valued at right now. If the P/E is low, I never see this as a instant buy signal … it just tells me it’s valued low for a reason, 90% of the time due to being a crappy company or badly managed. I’d rather buy the booming company with growth and good management with a slightly higher P/E than a company with a low P/E just because it “looks” cheap.

My strategy is a slow tortoise race one - diversified ETF’s and a 5% chuck of cash that is play money. When I want to take punts on companies (such as Airlines and Oil) I do it with this cash. The rest i drip feed into my ETFs.

Probs not going to make me super rich, but if I can steadly beat inflation and make a little, i’m happy. – This is just my approach as this suits my style, choose one for your own.

:slight_smile: Happy Trading :slight_smile:

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Does anybody know which companies produce desinfectans?

#AskingForAFriend

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Unfortunately I don’t know the answer, but there is a valuable thing to consider when looking some very specific products from any company… how much that product represents on their earnings/revenue pie.

Ex: let’s suppose that Pfizer produces disinfectants… but it represents only 3% of their revenue, so even if they double the production, it may not be someone significant for their earnings reports.

Cheers.

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Don’t take it too seriously when #AskingForAFriend :wink:

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I only know GOJO Industries which products I’m using from many years but I think it is private company