Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Art of Investing -- Ignore unavailable to you. Want to Upgrade?

To: Sun Tzu who wrote (1852)	7/6/2021 8:40:46 PM
From: Jacob Snyder	Read Replies (1) \| Respond to of 10550

Yours and the initial Druckenmiller article have a lot to consider. Dividends are as good as stock buybacks. For instance, SCCO does not reduce (or increase) their share count, but they pay a 4.4% forward yield. Message 33387572 Agreed: As long as QE continues, hi-PE stocks will continue going higher. But when interest rates are allowed to rise, the value of their future earnings will decline a lot. Since I am not confident about predicting when the music stops, I will not take the risk. The price of commodities is decided by the supply/demand balance, which is independent of interest rates. Commodity producers cannot control the price of their product, which can swing wildly. The price of iron ore has been 50$ and 220$ in the last few years. So VALE and other iron ore miners should have strong balance sheets, or they will not survive downturns. Rising interest rates are going to kill a lot of hi-debt companies going forward. If the hi-growth is dependent on hi-debt, the risk/reward balance is not good. Debt is an addiction; you don’t want your stocks going cold turkey. In an oligopoly economy, there is less room for small companies. If the top 5 companies in an industry are taking 90% of available profits, and only they can charge monopoly prices, nobody else will do well.