Stock Market Thread

[Steve85]

300M for Instagram
300M to keep Twitter from getting Instagram
300M worth of paranoia that something else will take your place. As you have already demonstrated in your own changes that photo sharing is the way forward.
100M of "f-you competitors - look at that number in the headlines"

[Evan]

so DUCATI is worth about the same as a stupid little phone image filter
<!-- m --><a class="postlink" href="http://www.autoblog.com/2012/04/17/audi-deal-to-buy-ducati-valued-at-1-1b/">http://www.autoblog.com/2012/04/17/audi-deal-to-buy-ducati-valued-at-1-1b/</a><!-- m -->

something is seriously wrong with this world

[BLINGMW]

so DUCATI is worth about the same as a stupid little phone image filter
<!-- m --><a class="postlink" href="http://www.autoblog.com/2012/04/17/audi-deal-to-buy-ducati-valued-at-1-1b/">http://www.autoblog.com/2012/04/17/audi-deal-to-buy-ducati-valued-at-1-1b/</a><!-- m -->

something is seriously wrong with this world

hmm. Interesting. Sad.

[Apoc]

Hype is a powerful machine.

[BLINGMW]

Hype is a powerful machine.

but more powerful than this? :dunno:

[Apoc]

Clearly about equal. :wink:

[Ryan T]

I know we lost all summer, but I refer to this as a financial thread. My question to you business/finance people; do you keep all your money at the same banking institution, or spread it out? Currently I have a checking account with 2 banks (only one of which I use) and savings/investment accounts with 4 different banks (2 of which are credit unions). My wife also has a separate checking account at a different bank. Should I combine all these accounts and investments into one banking institution or is it smart to keep it spread out? I'm seeing mostly equal amounts of growth from all of them.

[Apoc]

It's a good idea to keep your investments diversified, but that doesn't necessarily require different institutions. FWIW, I have all my checking and savings at the same place. I have a different institution for my mutual funds, one for my 401k and one for my stock market investments... but that's more about minimizing fees and/or maximizing return than trying to "spread it around."

[WRXtranceformed]

Yeah I agree with Chris. For just savings / money market accounts it doesn't really matter where you keep them. You might find somewhere that gives you 0.5% more interest or something like that, but I keep most everything including mortgage, car note, checking & savings with one bank. I have my investment accounts with a brokerage that diversifies for me.

[HAULN-SS]

Does anyone else hear that?

I think it's the sound of AAPL investors selling off in the not too distant future

[BLINGMW]

what'd I miss

I'm starting to get nervous as DJI approaches ~13.5. Silver's up, September's a historically bad month, I this this little climb is about over.

[HAULN-SS]

iPhone5 wildly average. When they have to start pushing apps instead of hardware at a reveal, I start thinking they're out of ideas.

Im with you on the stock market being nervous. If you had an impending big purchase, would you think of taking a loan on your 401k to get that money out of the market, but into something that has some potential to be a gainer over the long term? I have been trying to decide if that's a good idea, if you're looking at buying some land or a house or something.

[BLINGMW]

I'm starting to get nervous as DJI approaches ~13.5.

whoah. I guess I need to sell or shut up. What the hell is happening today?

*edit* Fed is buying more bad debt with our $. Yay! I sold everything in my IRA. I'll be changing my 401k to something very conservative tomorrow.

Sorry I have no advice for you on getting a loan against your 401k. I'm not *quite* sure how it's related though. If you need/want the money, and the loan against your 401k gives you a low rate, and you benefit more than that rate, sounds like a no brainer... ?

[HAULN-SS]

The rate is usually prime +1%, and you're really just paying yourself back the money. If your funds go up more than that, you "lost out" on those gains, however, if the market tanks, you're winning.

[davej]

hey, anybody have experience with short sales? haven't done one before, but FB is looking like a prime candidate given the flood of shares about to hit the market. are they easy to unload when you want, or are there some stipulations built into it?

[Mike]

they're just as "easy" as buying a regular stock.

there have been a flood of shares hitting the market for a couple months now (insiders and folks who got in on IPO) and it's only gone up a few percent.

would not advise.

[Dave]

hey, anybody have experience with short sales? haven't done one before, but FB is looking like a prime candidate given the flood of shares about to hit the market. are they easy to unload when you want, or are there some stipulations built into it?

It's just like a normal stock purchase, but instead of betting that the stock is going to get better you are hoping it tanks. There's no more or less protection in the market for shorts, however you often have to have a margin account in order to do shorts with your broker, so you need to read up on those and make sure you're comfortable with the stipulations of the margin account.
Oh yeah, and prepare for some pain if the stock doesn't go in the direction you want. Like, if you really understimate the demand; read up on the phenomenom called a "short squeeze".

[Evan]

with a short you are borrowing somebody elses shares.

so you borrow them, sell them, then later buy the shares back from the market and deliver them back to the owner. (hopefully at lower price than what you originally sold them for.)

like Dave said you do need a margin account which is an extra form to fill out, and you pay a small amount of interest per day to the brokerage for borrowing the shares. I dont personally think its a good idea to hold a short for an extended amount of time.

personally, I like options (or option spreads) a lot better. try buying a single put contract (covers 100 shares) at a lower strike price. if it goes against you, you do lose all of the money you spent on the contract, but contract cost is of course a lot less than 100 shares cost. if it goes your way, your profit is amplified x100.
so always set buy and sell stops, and be realistic with your profit target.

just remember, other traders are smart, so the market may have already "priced in" the news/event that you are talking about!

[Evan]

btw, anyone else now look at big acquisitions in terms of instagrams?

Lucasfilm, including the entire star wars franchise, all their facilities, the best special effects house in the industry etc....just sold for 4 instagrams.

[WRXtranceformed]

I would honestly rather play blackjack at a casino than play the short term ups and downs of the market for profit. Your odds and earning potential are probably about the same, and as long as you cash out less than $10K at a time you don't have to report it for taxes.