Stocks and Trading Thread - Channeling your inner Mono

[Phillip V]

I'm going to make a defense play when the market opens tomorrow.

How.

[Ed Anger]

Well, considering the thread title includes "stocks" in the title, it might have something to do with that.

[DGuller]

I know these billionaire guys don't have human feelings, but I wonder what it feels like to announce your retirement, and have the stock of your company rally.

[alfred russel]

I know these billionaire guys don't have human feelings, but I wonder what it feels like to announce your retirement, and have the stock of your company rally.

YES! ALL THOSE OPTIONS THEY HAVE BEEN GIVING ME ARE GOING TO BE IN THE MONEY AFTER ALL! 

[Ed Anger]

I know these billionaire guys don't have human feelings, but I wonder what it feels like to announce your retirement, and have the stock of your company rally.

YES! ALL THOSE OPTIONS THEY HAVE BEEN GIVING ME ARE GOING TO BE IN THE MONEY AFTER ALL! 

Your Ballmer impression is spot on. All screamy.   

[Ed Anger]

Raytheon up .28 

[Phillip V]

Big meeting soon.

Meanwhile, Larry Summers has withdrawn his name for consideration as the next Fed chief. Stock futures soaring.

I accumulated a large position in mREIT American Capital Agency (AGNC) during the past few months' selloff, so it may be a big win for me if the Fed decides not to taper this week.

[Admiral Yi]

You own AGNC too?  I think that makes 3 of us.

Do you understand exactly how they make money?  I've figured out their price goes up when rates are low and down when rates are expected to rise, but past that I'm in the dark.

[DGuller]

Why are the futures soaring?  Isn't Summers a big friend of casino capitalism?

[Tonitrus]

You own AGNC too?  I think that makes 3 of us.

Do you understand exactly how they make money?  I've figured out their price goes up when rates are low and down when rates are expected to rise, but past that I'm in the dark.

I own it also, but bought it when it was wee bit higher.  Just hoping to coast back into the black sometime on the dividend.

[Phillip V]

You own AGNC too?  I think that makes 3 of us.

Do you understand exactly how they make money?  I've figured out their price goes up when rates are low and down when rates are expected to rise, but past that I'm in the dark.

AGNC makes money off of the spread between short term interest rates (0%-1%) and long-term interest rates (3%+). Interest payments fund the fat dividends.

However, rapidly rising rates devalues the long-term portfolio of bonds/securities (?) that the company holds/maintains, causing a drop in book value (and thus market cap / share price) as well as limits recycling/intake (?) of new bonds/securities that keep the dividends coming, which results in dividend cuts.

However, Fed today will not taper as expected, thus causing AGNC to 

I believe the worst is behind us and am cautiously optimistic that AGNC will climb back towards $30 with healthy dividends.

[Admiral Yi]

Thanks dude.

[The Minsky Moment]

Why are the futures soaring?  Isn't Summers a big friend of casino capitalism?

He made statements expressing skepticism about the efficacy of QE and some musings about bubbles.
So the conclusion is that he was more likely to be hawkish on monetary policy.
I think that was probably a misunderstanding but Yellen is clearly the more known quantity and has backed the Bernanke line all the way.

[mongers]

Why are the futures soaring?  Isn't Summers a big friend of casino capitalism?

He made statements expressing skepticism about the efficacy of QE and some musings about bubbles.
So the conclusion is that he was more likely to be hawkish on monetary policy.
I think that was probably a misunderstanding but Yellen is clearly the more known quantity and has backed the Bernanke line all the way.

So that's a confirmation that a bubble is forming and plenty of people are going to make a good deal of money for quite some time as it inflates ? 

[Phillip V]

http://online.wsj.com/article/SB10001424127887324492604579083243936441418.html