 |
Home - Login - Register - Help  This is online community of international students studying in the USA. The site where students help students to survive and thrive during their stay in America. |
 |
|
Home - Login - Register - Help This is online community of international students studying in the USA. The site where students help students to survive and thrive during their stay in America. |
|
|
|
| AbroadPlanet Forums -> Brat-3: ACTR Students Community | Post new topic |
| Author |
|
|||||||||||
01-Feb-2001 03:45 AM |
|
|||||||||||
|
Commander |
Hey guys, thank you very much, but the situation is not as you think it to be, because, i have no any money to invest, (i have no stipend nothing at all, only head on shoulders...) by i am managing not my portfolio, actually one of my relatives, and they already have large investment vehicles at US market ( a few stosks, bonds, options and mutual funds shares too, CDs and T-bills) ...i've been analyzing the money and capital market for 1,5 years already...but now the situation is really different..
By the way Alina, interest rates announced with Federal Reserve Board have less to do with stock behavior, instead they influence US Treasure liquid instruments (T bills, T-notes ) and less risky instruments mouch more ...Of course that will have an impact on stock and corporate bonds but in general US market is recovering very quickly...and being rather "bullish"...recently. The point is, they have a large portion of that company stock...And taking to consederation the last market performance they ask me to help them to make a decision with order, to sell or to keep , if sell, than under limit order or on market??? That's the main problem, because i am sure they will do better off by selling those on market right now... By the way Beta = 2 and more that's high, but still could be worse. So, thank you very much and all my knowledge tells me to sell the stock...and better to reinvest in blue chips or mid-caps... Thank you guys, and nice to meet you Yerkin from Kazahstan. [Brat 3: Delaware University I] |
|||||||||||
|
01-Feb-2001 04:03 AM |
|
|||||||||||
|
Commander |
I am very sorry Yerkin, but i will argue with you and i am sure you are wrong about the result of interest rates cuts...Allan Grinspin decreases the rates only with one intension to lower the cost of borrowing money from banks and thrifts, in other words to ensure the expansion of loans and commercial investements, so now , with lower interest rates businesses can obtain those loans cheaper , thus the demand for capital goods will increase - resulting in expansion not in recession...
Moreover, lower interest rates can produce higher inflation, that's why it's wise to keep your savings in investment, but not too long maturity... -------------------- Sincerely Kiril Zuykov [Brat 3: Delaware University I] |
|||||||||||
|
01-Feb-2001 04:15 AM |
|
|||||||||||
|
yerkin |
told ya, Kiril, I'm a complete rookie in this area (before I went on to study biz on FSA I had *NO* biz or econ background whatsoever - T study in Politeh  )
Good to know your parents have advanced to this level. Mine would never venture to invest abroad. As for me, I'd better study more before I can confidently start trading stocks (it'll definitely take a loooooooooong time). EPKIH, EPKEH, Yerkin... KZ [Brat 3: Delaware University I] |
|||||||||||
|
01-Feb-2001 06:57 PM |
|
|||||||||||
|
Commander |
Thank you very much friend, but you are wrong the second time buddy: my parents are NOT investing in US markets nor in Ukrainian markets...those are my very far relatives, even better to say the friends of my family... my family have never been so rich to have savings to invest internationally (high risk and low information about US market in Ukraine)...
So, my parents earn just enough to cover our major expanses and that's it, but those "friends" have some stock, mostly because their children live abroad - Europe. ----------------------------- Kirill Zuykov - thank you so much anyway and try yo ivolve yourslef in finance field of study - that will give you lots of knowledge in business overall... [Brat 3: Delaware University I] |
|||||||||||
|
02-Feb-2001 03:30 AM |
|
|||||||||||
|
Alincho |
Hi again!!
Yerkin, I think Com is right in one thing, looks like you're a very smart guy, but the mistake you made right there was... interest cuts trigger expansion and/or inflation, not recession. Although, Kirill, he might be right in the sense that if the country is not in a stage which allows it to use the interest rate cuts as a booster for the economy, it can actually result in recession. So much for the interest cuts. Secondly, you're very controversial. You talk about managing and stock portfolio, and made a comment regarding my answer. You said that interest cuts influence corporate bonds more than corporate equity. And you are right, not only corporate, but all kinds of debt are influenced by the interest rate changes, because it changes the discount (or present) value of money. However, later you talk about as far as your knowledge tells you, they should sell the stock, because .... and investment in equity is profitable but highly risky and you should invest in stock of long maturity... BLIPPER!!!!! Right there! Stock doesn't have maturity, equity is claim against company's value and earnings, not a debt intstrument... Therefore, what I"m trying to say is that interest cuts are good for the stock, because it makes borrowing cheaper => encourages investment => higher expectation of profits (even if not for the first year, but for later time, it still pushes the stock prices up) => KEEP THE STOCK. Despite all these arguments however, the certain stock prices can go down, depending on how credible the company is, how big are expectations of new investments, and how well the management will do its job, or how well people THINK it will do it. (Castle-In-The-Air Theory, remember?) Therefore you should consider the last income statements, any important decisons by the management, and the whole tak skazat' bazar around the company for the last quarter or two. This I believe might have a great impact on why the stock went down and whether it will recover or not. Note also that all the indicators are UP, Nasdaq is up, Standard and Poor's is up, NYSE is up, Dow Jones is up. So.... I apologize to anybody else that is deeply bored with this. But looks like me and Kirill are obsessed with finance and there's nothing you can do about it.... 
XOXO Alincho-Who Sleeps And Dreams About An Office With A Great View On Wall Street. [Brat 3: Delaware University I] |
|||||||||||
|
02-Feb-2001 03:40 AM |
|
|||||||||||
|
yerkin |
Wow, financerZZZZz, KOOL! Keep goin'! As for me, I didn't get bored at all. Quite the opposite - too excited.
As far as I understood from what our Corporate Finance prof. was ranting about, the cut in interest rates should make stock prices go up, but this second cut wasn't as unexpected as the first one earlier in January. I even saw some tech stocks fall down a bit today (CNNfn). So what's the point in all those grandiloquent speeches trying to predict the market behavior... :\ I still gotta study. Kirich, ya kak-to ne usek, mne pokazalos', chto ty skazal rodaki investiruyut... Ladno, kakaya raznitsa. Glavnoe - prodvinutost'. Y [Brat 3: Delaware University I] |
|||||||||||
|
02-Feb-2001 03:15 PM |
|
|||||||||||
|
Commander |
Ok , Alina, I appreciate your knowledge in finance, but you are very strict with my way of thinking...I didn't mean that stock has a maturity, how could you expect such a mistake from me??? just meant to invest in something @ the capital market - thus the long term market, of course stock doesn't have any maturity at all!! You are right, i am not so good in English as you do, so sometimes i write not what i mean exactly...
but this time the stock has something like a trick, because i found out valuable inside info, about they (MAnhattan INc. )consider their stock to go too low and they are going to buy back some of it....assuming the prices will go up after they create the artificial demand and they will sell out the treasure stock then, making huge profits and showing others that the company is doing very good, because the prices are going up...! So, that's why i made a decision and advice to keep the stock , even taking to consederation the last drop of 5% during a day... Moreover, yesterday i did really good deal , catching some shares of AMD, for really low price, because they have had a 2-for-1 split a few days ago... Buy the way for the MAnhattan - i decided not only to keep them but to open a short position, that's i am going to sell the stock at today's price, and then to reaquire it @ very low price in a few days, so i will make a profit and than will do the long position, waiting for the firm to buy back stock, drive the prices up and then i am ready to sell some of them, because they won't be stable at that high price for long.... --------------------------------------------------- Thank you Alina for good understanding of finance objectvies and deep issues of the field... [Brat 3: Delaware University I] |
|||||||||||
|
02-Feb-2001 03:22 PM |
|
|||||||||||
|
Commander |
Thanks man, but i restate that my family have no any money to save even , not talking about investing, that' s why i am studying finance and i love finance, more than any other field of study...
This is my "bread" so i am hoping to earn money sometimes uderstanding finance deep aspects ... And my major in ukraine is also finance, so i am expanding my borders here...you and Alina help me to do that... Thank you very much man... -------------------- Kiril Ukraine. [Brat 3: Delaware University I] |
|||||||||||
|
04-Feb-2001 11:47 PM |
|
|||||||||||
|
Alincho |
Hi, Com.
How's it going?? I hope you realize that cutting deals based on certain types of insider info is illegal.... Assuming your humongous knowledge in the area of finance, you know those types and you are acting according to the effective legistation... Just kidding, trying to put some pressur into the discussion... You're smart, keep going, and may be one day our offices in Wall street will be next to each other.... ) Joke again
XOXO Alincho [Brat 3: Delaware University I] |
|||||||||||
| Posts: [1-8] [9-10] | ||||||||||||
| Community Moderators: Neo, LILKA | ||||||||||||
|
||||||||||||
| Web
development and hosting provided
by Netimpulses.Com This site is created by students for students. |
Copyright © 2000-2002, Abroadplanet.Com.
All rights reserved
|
