Theoretical question: $20000

[OGputtnfool]

Exxon Mobile.

I bought a few weeks ago mid $30s. It's crazy on sale, even at $43.

Could also throw some at the JETS etf. Gamble, but also crazy cheap.

I hadn't thought of that. I lost a couple bucks on an XOM option that I bought right before COVID hit, I think. Could take this chance to make it back. I don't have $20k, but I could throw a few $ at it.

 

[Jeff58]

Just my overall impression of the market FWIW.

The challenge of stock trading generally is that it requires you to predict the future, and to do so more accurately than other traders, which is often difficult.
The current conditions make predictions far easier. As well, a significant portion of transactions are not occurring due to rational thought processes. Instead, they’re selling based on fear, making them easily manipulated.

Question 1. Who are the losers?
Answer: The little guys, and those whose operating margins and cash/credit reserves are inadequate.
Question 2. Who are the winners?
Answer 2. The opposite of answer 1.

Two obvious examples are Starbucks and CVX. The singular local coffee shops will in many cases be swept away, leaving a massive void for Starbucks, who is sitting on a pile of cash. Low oil prices are destroying the highly leveraged mid-level producers, who must constantly find new sites to maintain production. Not only do the majors not have to do that, they’re also end-product retailers. Notice that while crude prices have dropped by 2/3, the price at the pump has not. Although some component is fixed taxes, they’re far from linearly reducing prices to the consumer.

 

[Boone]

I'd strongly consider putting it into a cloud technology/data storage stock. Those needs are only going to grow and grow.

 

[Pr3cision]

Cloud technology is up there but I would say online retail (i.e. Amazon, Alibaba, etc) and cannabis. Cannabis for all purposes will likely be legal nationwide in the next 5 years and retail is going online in droves.

 

[OGputtnfool]

Cannabis for all purposes will likely be legal nationwide in the next 5 years and retail is going online in droves.

That's a very optimistic outlook. I hope you're right. It sucks being a federal employee and not being able to take advantage of the best treatment for any number of ailments because you don't wanna risk your job.

 

[Pr3cision]

That's a very optimistic outlook. I hope you're right. It sucks being a federal employee and not being able to take advantage of the best treatment for any number of ailments because you don't wanna risk your job.

Optimistic, true. I don’t see the federal government making it legal on their own, they’ll leave it up to the states for now. But people have to keep pushing their state legislature if they want it. A couple years ago here in Ohio, we voted on it but the law had many many gray areas and they were essential trying to monopolize it and have a very small handful of people in sole control of the entire states cultivation. Raised red flags for many who would have voted on it if written otherwise. Poorly written proposals aren’t helping right now. Colorado set it up very well.

 

[OGputtnfool]

Optimistic, true. I don’t see the federal government making it legal on their own, they’ll leave it up to the states for now. But people have to keep pushing their state legislature if they want it. A couple years ago here in Ohio, we voted on it but the law had many many gray areas and they were essential trying to monopolize it and have a very small handful of people in sole control of the entire states cultivation. Raised red flags for many who would have voted on it if written otherwise. Poorly written proposals aren’t helping right now. Colorado set it up very well.

The problem is, even if all 50 states make it legal, federal employees are still screwed. We can only hope that if/when a huge chunk of states make it legal, the feds will do the right thing.

 

[Mark_UK]

My wife works for fidelity, so honestly, I’d give it to her with orders to double it LOL.