You say this like there is such a thing as something bad for stonks.
AMC might be going bankrupt. I might have wanted to do just a tad more research and pick the healthiest theater stonk - apparently Cinemark - before jumping into those waters.
Now I have to decide if I want to cut my losses or gamboool on a rebound.
At the individual company level its bad for STONKS when the company starts to turn a profit and pay a dividend. BORING. SELL PLEASE.
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DJIA down 400 points from those morning highs.
TSLA up 4.5% for the day because why the hell not.
How many Honda market caps is that?
That is .5 Honda market caps.
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And other EV stocks got crushed as well. I guess Tesla is impervious to downturns because they’re going to revolutionize every industry ergo if any sector is doing well so is Tesla. Right? That’s how you do it as a tesla permabull isn’t it?
Glad the CIA funded company is doing so well!
If you’re bullish on theatres stocks, just hold AMC vrs cinemark imo. It’s riskier ldo, but its also at least maybe ripe for a dead cat bounce with folks exiting and that I think we will know pretty damn soon if theatres will be a part of this decade
I feel like folks are going to be making up their lost time publicly somehow when the pendulum swings -not sure about theatres, though.
Or take the loss to offset some of the gainz this year, and slide it over to the better company.
That was my thinking. But industry consolidation through bankruptcy scares me. At this point I have 3% of my portfolio in AMC. So it’s not the end of the world. Still wish I’d put it in Cinemark. But no way in hell I’m exposing myself to two theater stonks at this point.
I know I’m not going to stop you but please stop fucking around with individual stocks.
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If you buy enough small pieces of individual stonks it’s pretty much like an index fund.
Also I’ve always been diverse array of index funds for 10 years and will go back to it as soon as my recovery stonks more or less recover. I only fuck around during black swans.
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3% of entire portfolio in a cinema stock (which I assume is small by SP500 standards) is not near an index funds diversification
I know that but it’s also not exactly gambooling my nest egg away. I also have a decent chunk of the rest of the nest egg in funds and Berkshire.
My thesis, which has served me well so far, is that there will be more or less a full recovery and these stonks (3 oil cos, 2 cruise lines, Delta, AMC) will get somewhere in the ballpark of their pre-covid levels. At that point I unload them and move back into funds.
There are also certain stonks like Amazon, Microsoft and Quest Diagnostics that it just seems dumb not to hold some of. I used to work for Quest and they seemed like a well-run non-rotten company.
I’m also ever so slightly worried about a big market downturn where the mindless inflows to the stonks in major index funds could start working in reverse. So I try to have a diverse group of US and International funds and not just all S&P 500 or something.
I must say I’m particularly interested in the cinema business given I worked for one for 7 years during high school and university. Was talking to a few friends who still work there (head office) and they were pretty grim on prospects of brick and mortar chains pre-covid due to streaming (and same-day releases) and post-covid they are already updating resumes etc for inevitable redundancy. Attendances, even with box office revenues rising, were falling considerably the whole time I worked there (and this is the biggest chain in Australia in a densely populated area). I’m curious as to what you see in AMC returning to pre-covid levels? Business reasons or just overall T.I.N.A. effect of the market (in particular cyclicals)?
Well if covid goes away they shouldn’t be much worse off than they were in Feb, in theory. But maybe not. AMC was kind of an impulse buy and not smart by me.
My theory has always been that if 1918 didn’t tank the market, covid won’t tank it long term. It’s harsh to say - but deaths don’t seem to phase the market. So just look for things that are still underwater and people will want to do a ton of the first chance they get.
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Did 1918’s pandemic result in this level of job losses and evictions? That’s more important to the market than death count
So I was a little worried that I had been missing out on all this TSLA goodness, but turns out it’s the #1 holding in my Vanguard extended market fund, and Zoom is #2. Feeling like an investment genius rn.
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