Gov. Polis ruined Colorado.

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Fogdog

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speaking of recessions, that one indicator that alot of people were concerned abotu the bond yields inverting ( i think?), is that still occurring?
Yep, yield curve inversion between long term and short term interest rates is still with us and it's still being touted as a sign of imminent recession.


An analyst who wrote an article on this subject (cited in the link below) posted a chart showing the difference between 10 year federal bond interest rate and short term fed funds rate over the past few months:

When long-term rates are lower than short-term rates, the yield curve is "inverted," which is a signal that has preceded recessions in the past with remarkable accuracy. Last Thursday, investors shifted the yield curve much further into inversion territory than we have seen since the last recession. I think worries about the trade war are mostly to blame.

Link to Investopedia article

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Why the yield curve inverts is difficult to explain, but one reason could be that investors aren't worried about inflation because they think future growth will be low. This is one of the most common explanations you will hear from analysts discussing the yield curve in the news. Another factor that can drive the yield curve into negative territory is if the Fed is expected to lower the short-term interest rate target. Bond investors will buy long-term bonds to keep the average yield within their portfolio high, which ironically raises the price of those bonds and lowers the yield preemptively.
 

doublejj

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Tesla (TSLA) rebounds as Model 3 sales start crushing ‘demand problem’ narrative
Tesla stock (NASDAQ:TSLA) continued its recovery on Thursday amid Wall Street’s seemingly improving sentiments on the company and the existing demand for its vehicles, particularly the Model 3. Far from the incredibly negative coverage that Tesla received in recent weeks, analysts such as Morgan Stanley’s Adam Jonas have revised their stance on the electric car maker, stating that Tesla could be poised to pleasantly surprise in the second quarter.
As of writing, Tesla stock is trading +5.55% at $207.51 per share.
https://www.teslarati.com/tesla-tsla-crushes-demand-problem-narrative/
 

ttystikk

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People are getting sucked into Tesla because they keep thinking it's a dot com style tech play. It's not; it's a car company, building cars, which is a long established, low margin business that won't change just because a high profile huckster showed up with an electric drivetrain.

It made 350,000 vehicles last year. For comparison, Chevrolet sold 291,074 Silverado pickups in 2018, a number that does not include any GMC trucks, SUVs or midsized trucks- to say nothing of their car business.

Tesla is racking up incredible debts on the sale of very few vehicles. It's a hole they will spend decades climbing out of, even if the rest of the industry left their niche alone... which of course they won't.
 

TacoMac

Well-Known Member
People are getting sucked into Tesla because they keep thinking it's a dot com style tech play. It's not; it's a car company, building cars, which is a long established, low margin business that won't change just because a high profile huckster showed up with an electric drivetrain.

It made 350,000 vehicles last year. For comparison, Chevrolet sold 291,074 Silverado pickups in 2018, a number that does not include any GMC trucks, SUVs or midsized trucks- to say nothing of their car business.

Tesla is racking up incredible debts on the sale of very few vehicles. It's a hole they will spend decades climbing out of, even if the rest of the industry left their niche alone... which of course they won't.
Add to that the market is about to become inundated with new EV offerings from the big automakers and it's a recipe for absolute disaster.
 

potroastV2

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The guy that's right is being asked to "give us a break"?

I have a better idea: Why don't you people face reality?

"OK, once again I'll try very hard to dumb this down to where you can get it."

Since you've said that you are right, there is no need to continue.

Closed.


:mrgreen:
 
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