Investing General Discussion

Sanrith Descartes

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You’re not answering the question.

Will the number keep going up?
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Cad

scientia potentia est
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The will not start "buying more". They will just stop "buying less".

Its all in the nuance.
I mean, I know ha ha, but it’s QT actually selling stuff off the fed balance sheet, while QE is buying stuff off the fed balance sheet? So if they are ending QT, they are stopping selling stuff. Doesn’t mean they are going back to QE, they’re just going to hold steady.

Right?
 

Kithani

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I mean, I know ha ha, but it’s QT actually selling stuff off the fed balance sheet, while QE is buying stuff off the fed balance sheet? So if they are ending QT, they are stopping selling stuff. Doesn’t mean they are going back to QE, they’re just going to hold steady.

Right?
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Falstaff

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I mean, I know ha ha, but it’s QT actually selling stuff off the fed balance sheet, while QE is buying stuff off the fed balance sheet? So if they are ending QT, they are stopping selling stuff. Doesn’t mean they are going back to QE, they’re just going to hold steady.

Right?
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Sanrith Descartes

I was forced to self-deport from the /pol thread
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I mean, I know ha ha, but it’s QT actually selling bondsoff the fed balance sheet, while QE is buying bonds to add to the fed balance sheet? So if they are ending QT, they are stopping selling bonds Doesn’t mean they are going back to QE, they’re just going to hold steady.

Right?
Yes. Fixed some wording.

Also, consider QE and its predecessor Operation Twist was about buying bonds and in doing so injecting cash into the economy. Bank A has a billion of bonds taken in QE, the it now has a billion in cash to lend out. This is its true original purpose. To unfreeze credit markets. QT, is really about clearing all those shit bonds off the Fed balance sheet. One could say it is also tightening credit markets by sweeping cash out of the banks as they buy the bonds. Also keep in mind bond expiry, this can be a big factor. The idea is to be buying specific bonds that are close to expiry and thus they would mature and leave the Fed balance sheet. Or vice versa depending on what the intent is with cash in or out of the economy.

Operation Twist was more about swapping bonds with different maturities again with the intent of freeing up cash via maturity. Fed swaps out its bonds maturing in 3 months for bonds expiring in 10 years. Banks get the maturing bonds and are then flush with cash to lend to loosen credit markets.
 
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Cad

scientia potentia est
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Yes. Fixed some wording.

Also, consider QE and its predecessor Operation Twist was about buying bonds and in doing so injecting cash into the economy. Bank A has a billion of bonds taken in QE, the it now has a billion in cash to lend out. This is its true original purpose. To unfreeze credit markets. QT, is really about clearing all those shit bonds off the Fed balance sheet. One could say it is also tightening credit markets by sweeping cash out of the banks as they buy the bonds. Also keep in mind bond expiry, this can be a big factor. The idea is to be buying specific bonds that are close to expiry and thus they would mature and leave the Fed balance sheet. Or vice versa depending on what the intent is with cash in or out of the economy.

Operation Twist was more about swapping bonds with different maturities again with the intent of freeing up cash via maturity. Fed swaps out its bonds maturing in 3 months for bonds expiring in 10 years. Banks get the maturing bonds and are then flush with cash to lend to loosen credit markets.
Makes sense, thanks for the explanation.
 
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Blazin

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My advice to long term investors S&P index investors, look at your portfolio calculate it's value if you used the 200d moving average as the price. That is the number you should think of your investment as being at. The rest is future potential if price stays above. Current price is EZ come ez go , but the market won't give up your 200d price without a battle and it's a better representation of where you stand and can help with not overly responding to day to day prices. The cool benefit of doing this is almost every day is an up day as long as price is above. You could check every day and be like, "cool made more money today" even on days where maybe the current price dropped 1.5%
 
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Synj

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My advice to long term investors S&P index investors, look at your portfolio calculate it's value if you used the 200d moving average as the price. That is the number you should think of your investment as being at. The rest is future potential if price stays above. Current price is EZ come ez go , but the market won't give up your 200d price without a battle and it's a better representation of where you stand and can help with not overly responding to day to day prices. The cool benefit of doing this is almost every day is an up day as long as price is above. You could check every day and be like, "cool made more money today" even on days where maybe the current price dropped 1.5%
I got divorced in 2020 and that really changed a lot of things for me financially. That year I put a large allocation into FSPTX (tech fund) and FBGRX (growth fund), physical gold and silver and a small stake in NVDA and some other positions. My one miss was not buying BTC at $18k which was on my list but convinced myself to buy AMZN instead (🙄). Some of those positions did well, some were meh (PFE and DIS 😕) and obviously you know what NVDA did. But my number one super power was not selling on the dips. I got rid of some losers but my conviction stocks and positions were conviction and I stayed even when they dipped.

2022 was tough, and April’s Trumper Tantrum was another one, but I held. I expect to hold through the next one as well and hopefully we don’t have a lost decade or something stupid like that. Buy low, sell high etc. Everyone is a genius in a bull market.

FSPTX
  • 2025 (YTD): 24.85% (as of late October)
  • 2024: 35.28%
  • 2023: 59.83%
  • 2022: -36.91%
  • 2021: 21.99%
  • 2020: 63.95

  • FBGRX
  • Year Total Return
    202062.23%
    202122.71%
    2022-38.46%
    202355.60%
    202439.70%
    2025 (YTD)20.65%