Today is a good example of why you have to be very careful in the market

[Nuke And Juke]

You should read more accurately.
Do you buy a Tesla for doing spreadsheets? Or for moving yourself from point A to point B? Get back to me when your Model X needs a new CPU before it needs new tires.

Time to get educated..
Tesla makes their own computer chips. They dropped NVDA for many reasons. Most importantly, AI. Artificial Intelligence. So yeah, Im gonna say you'll want to take me up on this. Not putting you down. This is why I can write the stuff I write and back it up.
https://www.cnet.com/news/meet-tesla-self-driving-car-computer-and-its-two-ai-brains/
https://ark-invest.com/research/tesla-fsd

In your "nothing you replied is true" post, you didn't address the oil response I gave. You think $12/bbl oil is a good thing for the U.S. economy, long term?

Oil Price. You have my thoughts correct. Here are more of my thoughts. Oil Price is not determined by USA. Some studies has USA at 20% of the oil consumption. But since the Trump ERA, we are a net producer. So we produce more than we consume. There is a global drop in demand. So in essence, a drop in demand for oil says more about global economics than just oil price.

Do I think it's good? The answer, yes. It's always good. There will be many oil producers going out of business. There will be a lot of shuffling of mineral rights. Oil producers will change hands and etc. In economics, we call this the "invisible hand" of demand and supply. This creates efficiencies in the market.

In the 80/90s, we moved towards a service economy. In the last decade, we moved towards information/data economy. The world is changing. Just as GE is no longer the darling of S&P 500, we are seeing a changing of the guards.

Im saying you cant bank on old economics of the past to determine the future. As such, you can't bank on oil, retail and auto manufacturing to take your economy to the future.

Stick with Amazon, Apple/Google, Netflix and Tesla during times like these. Your money will go far

 

[rbstern]

Time to get educated..
Tesla makes their own computer chips. They dropped NVDA for many reasons. Most importantly, AI. Artificial Intelligence. So yeah, Im gonna say you'll want to take me up on this. Not putting you down. This is why I can write the stuff I write and back it up.
https://www.cnet.com/news/meet-tesla-self-driving-car-computer-and-its-two-ai-brains/
https://ark-invest.com/research/tesla-fsd

Do Tesla profits come from selling their technology to other car manufacturers, or are they in the business of profiting from car sales, including the technology they put in a Tesla branded car?

They sell cars. Not chips. Not AI. The latter may be competitive advantages, and may be touted by some analysts as a different way to justify a higher valuatation, but in the end, they still bolt a powerplant to a frame and wheels, so a customer may go from point A to point B. It's primary utility is transportation, no matter how good of an iPod it happens to be.

In your "nothing you replied is true" post, you didn't address the oil response I gave. You think $12/bbl oil is a good thing for the U.S. economy, long term?

Oil Price. You have my thoughts correct. Here are more of my thoughts. Oil Price is not determined by USA. Some studies has USA at 20% of the oil consumption. But since the Trump ERA, we are a net producer. So we produce more than we consume. There is a global drop in demand. So in essence, a drop in demand for oil says more about global economics than just oil price.

Do I think it's good? The answer, yes. It's always good. There will be many oil producers going out of business. There will be a lot of shuffling of mineral rights. Oil producers will change hands and etc. In economics, we call this the "invisible hand" of demand and supply. This creates efficiencies in the market.

Wow. You completely missed the boat on this.

We are a net producer when oil prices are above $40 to $50/bbl. The reason is, most of our production capability comes from shale oil, which cannot be produced at $12/bbl. Nobody produces shale oil at $12/bbl. Not even close. It would generate enormous losses. Meantime, Saudia Arabia's cost per barrel of production is about $3.

So, at the current price levels, the oil has to come from offshore.

If you want to lecture us on economics, you might want to study the supply side of the equation.

In the 80/90s, we moved towards a service economy. In the last decade, we moved towards information/data economy. The world is changing. Just as GE is no longer the darling of S&P 500, we are seeing a changing of the guards.

Im saying you cant bank on old economics of the past to determine the future. As such, you can't bank on oil, retail and auto manufacturing to take your economy to the future.

None of that is news to anybody. However, for the foreseeable future, we are still an oil driven economy. Americans aren't going to buy less washer-dryers or cars. They may get them differently, but they'll still buy them.

 

[Nuke And Juke]

Ok Boomer...
Is your phone a phone or is it a computer? Does it call a person you dial? Our can u look up your reservation or a your colonoscopy results.
Yeah. U missed the boat on changing of the guards. The OP is about being careful given the history.
All I’m saying is that the future companies are where u look and you will do just fine.

 

[rbstern]

Ok Boomer...

Not sure what that means.

Is your phone a phone or is it a computer? Does it call a person you dial? Our can u look up your reservation or a your colonoscopy results.

That's a crappy analogy. Just because smart phones have blurred the lines of communication and computing, doesn't mean Tesla isn't building and selling cars.

People don't buy a Tesla just so they can sit in their car and surf the web or edit Youtube videos. They buy it as an alterative to other forms of transportation.

"Hey, Ralph, you gonna buy a new laptop?"

"No, I'm gonna buy a Tesla Model S. It's the bomb for gaming!"

Yeah. U missed the boat on changing of the guards. The OP is about being careful given the history.
All I’m saying is that the future companies are where u look and you will do just fine.

No comment on the supply side economics of the oil biz? Still think $12/bbl oil is a win for Americans?

 

[GeauxLSU]

Still think $12/bbl oil is a win for Americans?

No. $14.57 at the moment (+23%), I predict will at least double by year's end. Market is up over 400.
My only hope in all this is that Russia and Iran suffer more than us. Which I suspect they are given their relative dependence on oil income. Ironically, our sanctions on Iran have made them less dependent on oil. Their budget (less than 10% projection for the year (vs almost 30% last year) assumed $50 bbl pricing. Ha!

 

[mtnsmith]

Apple, google, amazon, netflix, Tesla and a host of today's era companies are just not gonna fold. They will be bigger and stronger because of COVID.

I dont get why people arent happy about oil at $12 a barrel? Why is this a BAD thing? It means RV's are gonna sell and families will enjoy traveling more.

As an economist, Im not sure you can convince me that companies folding shop is a bad thing. Niemann Marcus (Retail) was doomed regardless of COVID. COVID was just the nail in the coffin. Best Buys Im sure is on the chopping block.

Back in the 80's I watched all the mom and pop movie rental places fold up and I felt bad for them. When Blockbuster started to close it's doors in mid 2000's, I certainly didnt have a bleeding heart for them.

If I were young again, I would drop all my monies into Amazon, Apple or Tesla. You may not hit the jackpot but you wont win what you dont slide into the middle of the dealer's table.

I would be "ALL IN" in this market on sure bets like Amazon, Apple or Tesla.

Amazon was up about 30% during the month of March while the major indexes were tanking.

 

[mtnsmith]

Time to get educated..
Tesla makes their own computer chips. They dropped NVDA for many reasons. Most importantly, AI. Artificial Intelligence. So yeah, Im gonna say you'll want to take me up on this. Not putting you down. This is why I can write the stuff I write and back it up.
https://www.cnet.com/news/meet-tesla-self-driving-car-computer-and-its-two-ai-brains/
https://ark-invest.com/research/tesla-fsd

In your "nothing you replied is true" post, you didn't address the oil response I gave. You think $12/bbl oil is a good thing for the U.S. economy, long term?

Oil Price. You have my thoughts correct. Here are more of my thoughts. Oil Price is not determined by USA. Some studies has USA at 20% of the oil consumption. But since the Trump ERA, we are a net producer. So we produce more than we consume. There is a global drop in demand. So in essence, a drop in demand for oil says more about global economics than just oil price.

Do I think it's good? The answer, yes. It's always good. There will be many oil producers going out of business. There will be a lot of shuffling of mineral rights. Oil producers will change hands and etc. In economics, we call this the "invisible hand" of demand and supply. This creates efficiencies in the market.

In the 80/90s, we moved towards a service economy. In the last decade, we moved towards information/data economy. The world is changing. Just as GE is no longer the darling of S&P 500, we are seeing a changing of the guards.

Im saying you cant bank on old economics of the past to determine the future. As such, you can't bank on oil, retail and auto manufacturing to take your economy to the future.

Stick with Amazon, Apple/Google, Netflix and Tesla during times like these. Your money will go far

And you don't have to pick which ones of those to buy, just buy the NASDAQ index.

 

[GeauxLSU]

And it's up 1,000 points since this thread started a week ago.

 

[rbstern]

And it's up 1,000 points since this thread started a week ago.

And I hope it keeps going, but this thread isn't about a week or a month. It's about a year or two.

 

[GeauxLSU]

And I hope it keeps going, but this thread isn't about a week or a month. It's about a year or two.

It was a one day event that caused the thread no?
I get your point. For once, I'm an optimist.