Message from @SamanthaM
Discord ID: 496885988627578881
I don't have much perspective being rather new
Bonds are Jewish instruments to steal income from future generations to pay profits to investors today.
As for equities, the current political environment is very unstable. The country is also in extreme debt. Beyond that ...
P/E ratios at record high levels, over 25 when average is closer to 15.
Housing index has surpassed 2007 peak.
Half of children are on food stamps.
Over half of the country does not have the cash to cover a $500 unexpected expense.
@ThisIsChris what are you thoughts about investing in desalination and other water treatment solutions companies?
I was going to write something off the cuff but unsurprisingly @SamanthaM has a well researched response 😁
Yes. These stocks are basically penny stocks, but I wonder if they are worth it. One of the biggest companies is in OY VEY.
lol
I'm going to read Samantha's thing before commenting
The Saudis are screwed. They have a ton of desalination plants. Everyone in the region will be breaking down their gates in the next 50 years.
Check out the First Trust ISE Water Index Fund (FIW) ETF and the Guggenheim S&P Global Water Index ETF (CGW). Both are composed of companies (generally small/mid-cap-ish) involved in the infrastructure of water. 😃
Thanks @ThisIsChris !!
Thank you! The problem with energy companies, in my amateur opinion, is the Solyndra effect.
Alternative energy, I should say.
Good point. Great example of the Govt sinking money into a non-organic industry.
I wish I had invested in wind thirteen years ago. My entire part of the country is full of windmills
I don't even notice them anymore
It’s a fad industry that can capitalize on the political winds.
@Wood-Ape - OK/MN yeah. So many wind farms in TX area too.
Are you thinking Facebook will rebound @SamanthaM ?
Eh, maybe. Not worth following too closely. I’d buy a couple dozen shares if it ever dipped below $150.
Might get a boost after the gics reclassification moves FB to “Communications Services”
One of the amazing things these days is that you can trade in "weather futures" and in "electricity futures"
Right! It’s fascinating what can be considered a commodity
...weather futures?
isn't that literally gambling?
Yeah I love that about the markets. One of the things that has been mind bending for me is Volatility futures, and how they can be thought of as a commodity with cotango
@Jacob for one side of the trade it is probably a hedge against heating costs or poor growth conditions, or whatever else weather effects monetarily
That's brilliant
Let's say one industry is affected by weather that is too cold, and one is affected by weather that is too hot. That way both have an incentive to make the investment, and it ends up being kind of an insurance policy.
Yes! It's so interesting!
I worked at Dairy Queen, which was screwed when the weather was bad. So, a Dairy Queen owner could hedge against bad weather days in the Summer, while another business could hedge against air conditioning cost.
@ThisIsChris @Jacob What would be your opinion of creating a commodity portfolio based on the seasonal cycles rather than the traditional industry cycles?
Well, it depends what you're trying to do
I would love to try it, I'm looking forward to retail brokers having weather futures available.