SWEDEN'S LARGEST PENSION FUND HAS SOLD ITS ENTIRE POSITION IN FIRST REPUBLIC BANK FOR A LOSS OF OVER $728 MILLION.
Ooof. I can imagine those people just screaming SELL IT JUST SELL THEM ALL.
Which explains the massive drops in the share price.
What did they sell it for? Pennies on the dollar? They just locked in a huge loss - did they ever consider it might rebound especially if someone buys them out?
Market prices, so likely above $12 a share, aftermarket today was as low as $13.30. I would assume there is a belief in some quarters it gets zeroed out.
I’m seeing this in an ongoing micro and small cap portfolio experiment I’m doing. Lots and lots of companies with PEs of 10-14 - very cheap. once you get away from the tech giants valuations are much, much lower. Could give underlying strength to the broad market.
I sold all my small cap shorts Monday, yesterday and today plowed into semis, tech, and S&P 500. For better or worse. :-)
by plowed into, meaning short positions in those?
How did the short positions on small caps work out for you?
Yes, profit out of TZA into TECS, SOXS, and SPXS. Since I sold at various times between 10-25%. Higher last week at height of banking crisis, lows before, and today. Generally I take off, or add to manage risk. Currently down 10% on TECS, 9% on SOXS, and 2% on SPXS. I will not add a greater portfolio weight to shorts, currently about 10%. If tech and semis continue to rally I will pull from the S&P 500 fund. At some point, if the market breaks higher, I would tactically go to cash with this money. I have done this the last couple of years. Slightly down 2021, up big 2022, and down a bit 2023.
"Over the last 7 sessions, the S&P 500 Financials GICS sector has shed ~$453 bn of market cap .. so, where did it go?...... adding it up, AAPL, MSFT, GOOG, META, AMZN & NVDA added a combined ~$440 bn of market cap over this same stretch." - GS
How did the short positions on small caps work out for you?
Yes, profit out of TZA into TECS, SOXS, and SPXS. Since I sold at various times between 10-25%. Higher last week at height of banking crisis, lows before, and today. Generally I take off, or add to manage risk. Currently down 10% on TECS, 9% on SOXS, and 2% on SPXS. I will not add a greater portfolio weight to shorts, currently about 10%. If tech and semis continue to rally I will pull from the S&P 500 fund. At some point, if the market breaks higher, I would tactically go to cash with this money. I have done this the last couple of years. Slightly down 2021, up big 2022, and down a bit 2023.
thx.
I would really be careful. It just seems that dips are being met with support. Yes, there's always the possibility that the current path is unsustainable and we are in for a catastrophic reckoning. But the Fed has tremendous abilities to, at a minimum, kick the can down the road.
Maybe one can do some swing trading and play the volatility, but the market may be going higher.
Yes, profit out of TZA into TECS, SOXS, and SPXS. Since I sold at various times between 10-25%. Higher last week at height of banking crisis, lows before, and today. Generally I take off, or add to manage risk. Currently down 10% on TECS, 9% on SOXS, and 2% on SPXS. I will not add a greater portfolio weight to shorts, currently about 10%. If tech and semis continue to rally I will pull from the S&P 500 fund. At some point, if the market breaks higher, I would tactically go to cash with this money. I have done this the last couple of years. Slightly down 2021, up big 2022, and down a bit 2023.
thx.
I would really be careful. It just seems that dips are being met with support. Yes, there's always the possibility that the current path is unsustainable and we are in for a catastrophic reckoning. But the Fed has tremendous abilities to, at a minimum, kick the can down the road.
Maybe one can do some swing trading and play the volatility, but the market may be going higher.
Thanks. I am being careful. I have never played the swing well, at least not by changing my theme. I do though, by lowering exposure on sell offs, buying back on rallies. I was up what I am now down last Friday. I suspect we are back to 3,800 by next week, or the week after. If not, I will go to cash with this money, and wait.
In regards to your, and Flagpole’s posts, the two of you are guilty of relying upon meaningless statistics. NASDAQ loss in 2022 would required well over 50% return in 2023 to get back to even. During the time period of 2000-2016 the NASDAQ underperformed most asset classes, including Treasury Bills. If you look at the problems in SVB and First Republic banks, the tech layoffs, cyclical nature of tech, and stress in venture capital, I would think technology would be one of the last sectors to focus for a buy. A short, perhaps yes. But you two continue to go back to the last decade playbook, praying the next ten years will look the same. Doubtful, but I’m a “permabear” with a “75 IQ,” I mean “really.”
4) I GUARANTEE you that I have more money made from investments than you do, and I'm younger than you, so you have nothing to offer me, and your criticism of me is meaningless. I am wealthier beyond my wildest dreams due to heavy and unfettered investing since 1989. With your fraidy cat attitude, it is clear that you are NOT wealthier beyond your wildest dreams.
2) Not sure where the 75 IQ came from, but I never said you had a 75 IQ.
3) I am not relying on meaningless statistics at all. The market goes up 73% of the time on an annual basis and UP overall...that's all I need to know.
4) I GUARANTEE you that I have more money made from investments than you do, and I'm younger than you, so you have nothing to offer me, and your criticism of me is meaningless. I am wealthier beyond my wildest dreams due to heavy and unfettered investing since 1989. With your fraidy cat attitude, it is clear that you are NOT wealthier beyond your wildest dreams.
5) You doing your permabear thing by mentioning some current bad things in the marketplace...dude, there are ALWAYS bad things to be found in ANY market at ANY time. YOU focus on those constantly because you are a permabear.
Perhaps. I put NO value a car other than safety and reliability, and I have that in my 2022 AWD (switch to 4WD with push of a button) Hyundai Kona and the two other cars I have too. Whether I ever have a nicer car than the types I typically buy (Hyundai, Honda, Toyota), is only a choice at this point. I don't see ever wanting to buy anything beyond those types of great mass-produced cars.
Perhaps. I put NO value a car other than safety and reliability, and I have that in my 2022 AWD (switch to 4WD with push of a button) Hyundai Kona and the two other cars I have too. Whether I ever have a nicer car than the types I typically buy (Hyundai, Honda, Toyota), is only a choice at this point. I don't see ever wanting to buy anything beyond those types of great mass-produced cars.
PacWest is the next bank in focus: it says it secured a $1.4 billion line of credit after clients withdrew about 20% of the bank's deposits since the start of this year. It also has opted not to raise additional capital. via @theterminalpic.twitter.com/NZnooABzh7
the point is that if you have been wrong for 20+ years and still insist your views are worthy of media attention...you don't complain about someone else for being wrong a lot. I mean that's a definition of chutzpah.
Other than Pomboy being right on the Tweet I posted, I have no other dog in the fight.
On another note, FRC traded down in the aftermarket as reports of a rescue deal would require government backstop.
FRC now up on the day (wednesday)
This just doesn't feel like a systematic bank crisis....wouldn't we be hearing about more problems if it were systemic? Although I suppose a few days don't mean much, and pacwest is under fire now.
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