All things STOCKS

#6,651
#6,651
Thunder Good-Oil said:
Nice reversal today.

I keep hearing stuff like this V V V (Warning, MarketWatch limits the number of free views before requiring a subscription). It’s bothersome. Trading and using actively managed investment options might be the only way to see decent returns. I’d sure love to see a double every 4 or 5 years, but that is highly unlikely. I guess preserving capital for the foreseeable future might be the theme.

Why the S&P 500’s return over the next 10 years will be nothing like the last 10
Click to expand...

I also worry more broadly if/when reduced liquidity begins to pressure multiples. Many companies have leveraged themselves to survive this year, and they will be in a weaker position financially long after things return to normal.

On the flip side you have to think bond yields pinned at zero have resulted in so much more money flowing into equities that you have to pay a premium right now to get any kind of return.
 
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#6,652
#6,652
GoDucks349 said:
I think there is more to the story. Beyond Meat has worked with McD on a pilot project in Canada. It is possible that Beyond Meat will be the supplier to McD, the decision just hasn't been made yet and I think that's part of the issue for Beyond Meat.

Also, I think Beyond Meat suffered from people stock piling in the second quarter resulting in lower third quarter sales and revenues.
Click to expand...

I would think that their margin will continuously narrow. It can’t be that much more expensive to produce plant based food relative to animal. I guess right now economies of scale are very much a factor.

MCD might be strongly considering going it alone. Taking an equity position in BYND would make sense or even an entire buyout. I don’t know if BYND is already as hooked up with MCD’s competitors as Impossible is.

I think that demographics are favorable for plant based substitutes. The trend of healthier meal options and environmentally friendly has traction. But the legacy food suppliers are firmly entrenched.
 
#6,654
#6,654
TheColdVolTruth said:
I also worry more broadly if/when reduced liquidity begins to pressure multiples. Many companies have leveraged themselves to survive this year, and they will be in a weaker position financially long after things return to normal.

On the flip side you have to think bond yields pinned at zero have resulted in so much more money flowing into equities that you have to pay a premium right now to get any kind of return.
Click to expand...

Not much is attractive right now. Bonds, stocks, utilities, real estate, munis, foreign currencies, commodities, precious metals. There’s nowhere to hide. I guess cash, even without a return, isn’t a crazy place to be.
 
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#6,655
#6,655
TheColdVolTruth said:
I also worry more broadly if/when reduced liquidity begins to pressure multiples. Many companies have leveraged themselves to survive this year, and they will be in a weaker position financially long after things return to normal.

On the flip side you have to think bond yields pinned at zero have resulted in so much more money flowing into equities that you have to pay a premium right now to get any kind of return.
Click to expand...
And what do you do if you're in my shoes? Well into retirement, and would prudently like to move more money into bonds. No return so it's equities for any kind of return. I've put cash in blue chips with decent dividends.
What to expect from this economy is perplexing.
 
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#6,656
#6,656
TheColdVolTruth said:
I also worry more broadly if/when reduced liquidity begins to pressure multiples. Many companies have leveraged themselves to survive this year, and they will be in a weaker position financially long after things return to normal.

On the flip side you have to think bond yields pinned at zero have resulted in so much more money flowing into equities that you have to pay a premium right now to get any kind of return.
Click to expand...
...
 
#6,657
#6,657
TheColdVolTruth said:
I also worry more broadly if/when reduced liquidity begins to pressure multiples. Many companies have leveraged themselves to survive this year, and they will be in a weaker position financially long after things return to normal.

On the flip side you have to think bond yields pinned at zero have resulted in so much more money flowing into equities that you have to pay a premium right now to get any kind of return.
Click to expand...
...
 
#6,658
#6,658
TheColdVolTruth said:
I also worry more broadly if/when reduced liquidity begins to pressure multiples. Many companies have leveraged themselves to survive this year, and they will be in a weaker position financially long after things return to normal.

On the flip side you have to think bond yields pinned at zero have resulted in so much more money flowing into equities that you have to pay a premium right now to get any kind of return.
Click to expand...
......
 
#6,659
#6,659
Thunder Good-Oil said:
I would think that their margin will continuously narrow. It can’t be that much more expensive to produce plant based food relative to animal. I guess right now economies of scale are very much a factor.

MCD might be strongly considering going it alone. Taking an equity position in BYND would make sense or even an entire buyout. I don’t know if BYND is already as hooked up with MCD’s competitors as Impossible is.

I think that demographics are favorable for plant based substitutes. The trend of healthier meal options and environmentally friendly has traction. But the legacy food suppliers are firmly entrenched.
Click to expand...

I am primarily a pescatarian so I eat fish about once or twice a week. Haven't had beef more than three times in the last 15 years, I do eat chicken occasionally. I do love myself a "Burger" and BYND makes a great veggie burger!! So I am a fan and hope they do well. As an investment, it's not the type of company I typically invest in. I'm a value contrarian investor.
 
#6,661
#6,661
GoDucks349 said:
I am primarily a pescatarian so I eat fish about once or twice a week. Haven't had beef more than three times in the last 15 years, I do eat chicken occasionally. I do love myself a "Burger" and BYND makes a great veggie burger!! So I am a fan and hope they do well. As an investment, it's not the type of company I typically invest in. I'm a value contrarian investor.
Click to expand...

I'd much rather eat Duck than a BYND burger...
 
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#6,662
#6,662
Thunder Good-Oil said:
Nice reversal today.

I keep hearing stuff like this V V V (Warning, MarketWatch limits the number of free views before requiring a subscription). It’s bothersome. Trading and using actively managed investment options might be the only way to see decent returns. I’d sure love to see a double every 4 or 5 years, but that is highly unlikely. I guess preserving capital for the foreseeable future might be the theme.

Why the S&P 500’s return over the next 10 years will be nothing like the last 10
Click to expand...

In my opinion, the main thing to remember is that you're not allowed to pop the bubble. When it pops, it may never come down to as low as it is right now. The second most important thing to consider is whether you want a diversified portfolio. If the stock market just goes down and back up, you'd make some money by having something that's not stocks and using it to rebalance. This got easy for me to stomach when I got over 50.
 
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