CASH

Successful-Peace-457

You know what's crazy af! I got 18 down votes for something that's 100% true! 100%! 🤣 lmao When you sell a cash secured, put the premium pays to you is the difference in the strick price and the marketprice . This means the cash that's used to secure the puts that your selling, isn't enough to cover the shares at the strike of your assigned. That premium that you think you're getting paid is actually the extra amount needed to buy the shares! The brokerage will lock the premium up as collateral until the trade is closed. Becaue, if it goes AGAINST you and your put the shares(forced to buy them), they need the cash used to secure the position to open when selling the puts Plus, the premium that you lost in that moment . You DO NOT GET PAID IF YOU ARE PUT THE SHARES! THEY TALE THE PREMIUM PLUS THE COLATERAL CASH HOLDING YOU USED SECURE THE PUTS , AND TOGETHER THEY EQUAL THE COST OF THE SHARES AT THE DAMN STRIKE PRICE! YOUR ALL WRONG! PERIOD! I KNOW THIS FOR AN ABSOLUTE FACT! Go look at the options chain right now. Do the math! The only way you get to keep some of the primium is if you win and buy back to close early. Or you get it all if the puts expire worthless. But if they are assigned to you. YOU MAKE NOTHING! CAN YA HEAR ME KNOW!? 😁🫡🤏🖕

Only-Environment7550

despite your age get a budget sheet and figure your monthly living expenses and then put that amount x5 or x10 on let say ZMMK, HISA, CASH.TO etc etc and call it Emergency Found, after this get some amount that your are comfortable with not using for some time and invest it in some low cost ETF, 1, 2 or 5 ETFs not matter, but invest it and what is left of that money well you can pay some debts if any, go for a couple of weeks vacation and/or help someone in needs..

SubjectAfraid

CASH TF OUT NOW!!! This is how you can change your life: * Keep 25K to pay taxes (invest it in a high-yield savings account). * Keep 10K to get a decent but cheap car. * Keep 20K as emergency savings. * Keep 50K for a house downpayment. Then just keep working as usual and enjoy your new (easier) life. You’ll be way ahead of lots of people, given the current economy.

GettinFroggyHere

There is more wisdom and humility in this thread than any other post in this subreddit. When you've got wallstreetbets telling you to cash out, that's when you know you should CASH OUT!!!

robotpoet

CASH OUT

The-waitress-

One of my friends was proudly telling me about how he had his 60-year-old mother CASH OUT her 401k and he's so glad bc the market crashed. O\_o

Waythrowing04

monneeyyyyyyy! dollars CASH bread doubloon. making BUCKS net WORTH GO CASH. BUCKS!!!!

4Inv2est0

To the person yesterday that asked me how CRON could purchase OGI... Well that acquisition could happen a number of ways. CASH, Cash + CRON shares, or All share deal. Will they do it? I doubt it as OGI likely has an asking price far exceeding the current OGI market cap, so quite a premium would likely be required for BAT to sign off. To be totally fair, OGI has built out a much better cannabis business in Canada than CRON imo - but CRON does have that massive pile of cash to eventually utilize.

Salty-Ad6128

$CASH 😝

Chrg88

The house didn’t appraise so I got the pleasure of forking down an extra $50k CASH

Pitiful_Fox5681

*Call JG Wentworth 877-CASH-NOW"

CandidAssistance4906

I love coffee. I hate bad businesses in america. SBUX is the worst company in america today & an absolute shell of what it once was. Go to a starbucks today and you'll see within 10 seconds that its nothing like it used to be. Starbucks has lost its identity. It's lost its soul. This is what you short you fucking god damn morons Starbucks is a GIANT PILE OF CASH WAITING FOR YOU and you fucking dickheads continuousy fuck around losing money on options you can barely articulate outloud and keep the actual SHIT in america afloat. This is why the market is at RETARD STRENTGH. Bears are just not smart or bold enough to do amazing things anymore. Your generation just doesnt have the guts or the intelligence to do something that matters

Oxy_Moronico

Weekend **CASH GANG**

hgreenblatt

Yea , that is what I thought when I read it, but still you got voted down. Lets face it , Reddit is for buy and holders, that convince themselves they are option traders since they do Covered Calls in wait for it CASH ACCOUNTS. After 15 years with Sosnoff I never heard of CC until I came to Reddit.

Ok_Cry7572

Warren Buffett’s cash pile(360B) would make it the 25th largest company in the world if it was a stock. JUST HIS CASH ALONE…. They could buy any of these companies all cash no debt: ASML $360b COST $350b ORCL $340b KO $330b they already own 9% The list goes on: Toyota, Chevron, Merck, PepsiCo, etc. etc.

JoeDirtTrenchCoat

If you are betting on interest rates declining, you’d buy longer dated bonds (30 year) and have done it a while ago before cuts started. Berkshire js very clearly stockpiling CASH in shorter term treasuries in order to be able to quickly deploy it into equity markets.  He explicitly does NOT want exposure to interest rate risk.

WenMunSun

What posts like this always misrepresent is that Berkshire isn't actually holding CASH. Their "cash" is only about 10% of their current assets. Most of Berkshire's "cash" is invested in Treasuries which, while quickly convertible into cash, is not the same thing. The Treasuries Buffet is invested in are yielding 4-5% annually but the main reason for holding these treasuries is the longer-term (3-5 years) bet that interest rates will decline. For example, if Buffett puts $300B into 30yr Treasuries, and within 5 years the Fed lowers interest rates to 2%, then Buffett can then flip those Treasuries and earn around 70% on the nominal value , in addition to the 4-5% he earned each of those years. That would be nearly 100% return on his investment over 5 years. That would easily beat the long term avg of the S&P while also being nearly risk free. For someone with as much cash as he has, it's really the best bet he can make, and one of the only bets he can make. So when Buffett is holding "cash", he's actually investing in Treasuries, and he's betting that inflation will cool longer term, and that the Fed will eventually bring rates back down to the historical avg of 2%.

WenMunSun

No, he's probably not - unless we get a massive crash (unlikely). What posts like this always misunderstand is that Berkshire isn't actually holding CASH. Their "cash" is mostly invested in Treasuries which, while it is quickly and easily convertible into cash, is not the same as cash. The treasuries Buffet is invested in are yielding 4-5% annually but the main reason for holding these treasuries is the longer-term (3-5 years) bet that interest rates will decline. For example, if Buffett stuffs $300B into 30yr Treasuries, and within 5 years if the Fed lowers interest rates to around 2%, then Buffett can then flip those Treasuries and earn around 70% on the nominal value of the treasuries , in addition to the 4-5% he earned each of those years. That would be nearly 100% return on his cash over 5 years. So when Buffett is holding "cash", he's actually investing in Treasuries, and he's betting that inflation will cool longer term, and that the Fed will eventually bring rates back down to the historical avg of 2%.

narrowant341

BERKSHIRE HATHAWAY CASH PILE HITS RECORD $347.7B IN 1Q 

AdEnvironmental678

GO CASH GANG! Let the institutions take enough rope to do the thing!

superhappykid

If it's a prolonged recession the guy with 80k cash on reddit saying HEY GUYS IM 80% CASH AND WAITING FOR THE 50% CRASH is going to have bigger issues than the stock market.

MrsPhoenix91

You forgot this rule: 6. CASH IS A POSITION.

GomeBag

I need 🥭 to literally tweet: "SELL SELL SELL PANIC PANIC PANIC WITHDRAW YOUR CASH FROM THE BANK" or else I'll lose money today

HustViz

Remember kids Warren is still in CASH.

Apollo_Delphi

I am 1/2 in US Cash, no Stocks. I just Day Trade because it is easy right now. Today was Awesome CASH. I have the other half of my Cash in other Currencies. The US Dollar is gonna Crash by August or sooner.

SkoomaJunki3

WOULD YOU RATHER OWN CASH OR HAVE EQUITY IN COMPANIES THAT STORE THE POKÉMON CARDS AND TOILET PAPER. 

TheGoodCod

Mobius --whose focus is developing countries and Asia-- is 95% in CASH. I'm personally considering "Selling in May and Going Away" until closer to the end of the year. It's an old adage but one that saved my butt in 2008/09.

ta1no

Uneducated comment... Dividend paying cash value whole-life insurance is the best and most secure way to store cash. It has been proven for the last few CENTURIES. I'm not talking about universal life insurance... That's totally crap and is tied to the market, meaning you're not really investing, you'respeculating... But a dividend paying cash value whole-life insurance policy is completely different. All stocks, IRAs, 401k accounts are speculating, not investing... The market is volatile, and your portfolio goes down and up daily. NOBODY knows if a stock will be worth something or go to $0 in any given moment... Nobody. That's called speculating... Just remember that. Now, an insurance policy is NOT an investment either... It's simply a way to store cash with the highest protection against government and malicious actors. CASH you can then use to buy assets and other investments. Plus, it pays a death benefit to your loved ones!... Always buy assets that produce cash flow or appreciate in price over time. Never buy liabilities. Your money is NEVER tied or correlated with any markets like real-estate or the S&P 500 like an IRA. So there's no volatility. Your cash value is always liquid and available for you to use. Unlike a 401k or other qualified investment vehicles... Your cash value NEVER goes down unless you withdraw it. In fact, it grows and compounds every month TAX FREE. Your cash value can also be used as collateral, unlike the money in your savings account... If you have $50k in a savings account. It's not growing. It's losing value thanks to inflation and bank fees. If you have $50k in a cash value whole-life insurance policy and need to spend $20k, you don't have to withdraw it. You can borrow against it. You take a loan out using your cash value as collateral and you get your $20k while the $50k is untouched and still growing. Read books like "Live Your Life Insurance" and "Busting the Life Insurance lies" to learn more... ✌️Good luck.

AsAboveSoBelow322

$BIIB will go bananas 🍌 this earnings on 5/1. GROWING CASH RESERVE 💵 + GROWING REVENUE. DEMENTIA & Alzheimer’s Disease 🦠 is growing rapidly thanks to DIGITAL DEMENTIA. Its also been 119 years since the first Alzheimer’s patient 🤔

nerdsr

lol at all the people who thought the world was ending and sold it avoided investing during the lows. IF YOU’RE YOUNG AND HAVE CASH BUY THE DIP AND 5-10 YEARS FROM NOW YOU’LL BE GLAD

trainwreck001

IN A GLOBAL DEPRESSION... CASH IS KING. FAKE INTERNET MONEY IS A LIABILITY. 

Popular_Adeptness_12

I’m 25 years old. This is my portfolio allocation, but I like being fairly aggressive. I’ve grown my investments to 250K. 5% CASH 55% S and P 500 ETF(VOO) 20% Crypto 20% Individual Stocks Equity in real estate doesn’t really matter when you’re living in the real estate that you have, or if you’re trying to rent the real estate. Only time equity matters in real estate is when you sell, but I think selling any real estate should be avoided at all costs, except in very extreme circumstances. *Not Financial Advice*

East-Philosopher-274

Get a cash account and you can DAYTRADE! Margin is usually the default account and is subject to PDT Rules. CASH ACCOUNT will allow you to trade settled funds daily.

hgreenblatt

Then you ARE NOT SELLING CASH SEC. PUTS. The cash must be in the account. So for Selling a 160 Google Put you need 160\*100 = 16k CASH. In a Margin account maybe only 2k to open the trade. Sounds like you are following all the lemmings and only know about Cash Accounts. Here is some stuff on Margin accounts by Tasty. [https://www.tastylive.com/shows/tasty-extras/episodes/a-refresher-on-bpr-06-29-2020](https://www.tastylive.com/shows/tasty-extras/episodes/a-refresher-on-bpr-06-29-2020) A Refresher on BPR Jun 29, 2020 [https://ontt.tv/3jAf4Ba](https://ontt.tv/3jAf4Ba) Buying Power Factors Oct 28, 2020 [https://ontt.tv/2CLbOjn](https://ontt.tv/2CLbOjn) What Affects Buying Power? Nov 14, 2019 [https://ontt.tv/JeGVN](https://ontt.tv/JeGVN) Short Puts vs Covered Calls vs Poor Mans Covered Call Jul 9,2024

Emergency_Bother9837

You put your money in CASH.TO till it blows over, already essentially prevented tens of thousands of losses. I’m 32 for reference I can wait it out.

Ok-Isopod2755

you have to have 25k IN CASH if its not in cash; IE, in a position, it doesnt count! what you day trade has to be in addition to the 25k

GoZukkYourself

TXN Just Released Earnings ⚪TEXAS INSTRUMENTS Q1 REVENUE USD 4,069 MILLION VS. IBES ESTIMATE USD 3,911 MILLION ⚪TEXAS INSTRUMENTS Q1 NET INCOME USD 1,179 MILLION VS. IBES ESTIMATE USD 982.9 MILLION ⚪TEXAS INSTRUMENTS Q1 EPS USD 1.28 VS. IBES ESTIMATE USD 1.07 ⚪TEXAS INSTRUMENTS Q1 CASH FLOW FROM OPERATIONS USD 849 MILLION ⚪TEXAS INSTRUMENTS OUTLOOK Q2 EPS USD 1.21-1.47 ⚪TEXAS INSTRUMENTS OUTLOOK Q2 REVENUE USD 4,170-4,530 MILLION

Big-Sand5360

Nah, bought shares on CASH, no margin Will sell CC and collect CASH. If it drops below cost basis, will buy more.

Dear_Respond4522

877-CASH-NOW

Safe-Drag3878

AMERICA IS SUPPOSED TO BE A BUSINESS THAT GENERATES INFINITE CASH WHAT THE FUCK IS GOING ON!!!WHY ARE THEY CRASHING IT DELIBERATELY!!!!

Aware-Meaning-3366

🤣🤣🤣🤣🤣 Hear me out 🤣🤣🤣🤣 a Youtopian'like Philanthropic charity Crowdfunding app.....eliminate LOTTERY, KENO,CROWDFUNDING, CHARITIES and everything now......make my awesome idea to save humanity a resetting, perpetual Crowdfunding site example; WE THE PEOPLE are MILLIONS so example when 3 million people DONATE .10 cents 🤣 = 300k and now a RANDOM American citizen receives this 300k CASH because it's CHARITY no taxes. Reset Repeat Perpetually Basically we would make ONE American to receive 300k cash every 1 minute and my idea makes America Great Again better than any other realistic idea 🤣

ex_bandit

I really wish everyone who traded knew this. Ifyour account isn’t on margin, then you don’t need $25k to avoid the PDT rule. If your account is CASH basis, you can trade all you want with your settled cash. Once you’ve spend your money for the day you can’t trade anymore otherwise you could end up with a good faith violation (GFV).

Sunny1-5

Same. Just holding. Really, I made money in 2024, but expenses of life gobbled a lot of it up. Let’s see: pay for a wedding- $25k(on a budget), major car repair -$6k cash, family trip domestic-$3k. And that’s how you utterly piss away almost $40,000 IN CASH in 8 months.

Emergency_Bother9837

This is sort of why I just use CASH.TO.. works similar to gold but you can sell whenever you want with no risk of loss

ComingInSideways

Where can you use unsettled funds in a CASH account, even on spreads?

DK305007

CASH

julie78787

I think these are open questions, and my position is simply that these open questions create investment risk. To get back to the purpose of this sub, I do remember when most of my friends were down 4 or 5 percent in their 401 k)s and I was up 2 or 3 percent. My consistent behavior has been accumulating cash. I’m going long CASH and I’m HODLing my CASH.

Emergency_Bother9837

This is a very bad time to “buy the dip” imo, I have put 80k into CASH.TO. I’ll wait…

mt_beer

877 CASH NOW

OGuytheWhackJob

877-CASH-NOW!!!!

dezradeath

Call JG Wentworth, 877-CASH-NOW Kidding, this is what people take out mortgages for. If you don’t have enough down payment then your monthly mortgage payments will be higher. Depending on your timeline I would park the money in a HYSA and let it earn interest the safe way. I understand the need to get money quick but trust me do not try some scheme to get rich. Do not try to play the market, don’t go heavy into options, don’t day trade/swing trade. None of us are smarter than the market; you will lose your money. Dont gamble with money you need and can’t afford to lose if something goes wrong.

zephyy

THANK you for your ADVICE but most people do NOT have 500k in CASH

sol_beach

When you buy with 100% CASH the interest rates do NOT matter.

AInception

America is the propaganda network of the world, and Canadians have their 'news' and 'entertainment' networks droning in all their television sets. I think it's a bit more insidious than their elections affecting us. As well as you know, "Call JG Wentworth...877 CASH NOW" a large number of Canadians inherently "know" America is winning, just by watching the same networks or Hollywood films as them. A concerning amount of Canadians I've come across are convinced we need what DOGE is doing but in Canada. The evidence of DOGEs wrong-doing, fraud, or incompetence isn't difficult to find, except FOX isn't reporting on that. To millions of Canadians, they're doing great work. They have been led to believe their feelings matter over facts, and they're sheltered from the inevitable outcome of that thinking. I think their propaganda is going to turn nuclear before the end of Trump's term. AI depictions of utopia in America and dystopia everywhere else, but especially Canada and Mexico. People hardly go outside to face reality anymore. Canadians watching this will believe something is horrendously broken with our Country, and we must follow the same process as America to bring us close to utopia. The sort of shit that would make North Korea blush... What is our defence in this regard? I don't think we have the technological capabilities or social ability to prevent their propaganda from seeping into every faucet of our lives. When they go full delusion and depict all our government as cat-eating Nazis who must be ambigiously stopped... what then? I'm 100% on board with a drastic QoL reduction if it means eliminating US reliance, if that's what it takes for Canada's sovereignty. I just don't think it will be as simple as that if Canadians all willingly rely on Netflix/Fox/CNN and Facebook/X/Reddit today.

phoquenut

🎶Call JG Wentworth, 877.CASH.NOW🎶 🎶⁸⁷⁷ᶜᵃˢʰⁿᵒʷ🎶

jeffroavs

WE ARE MAKING SHIT TON OF CASH BY JOBING YOU IDIOTS! MY BUDDY CHUCK SCHWAB MADE 2.5 BILLION! Fuck you and your puny 401K's bitches!

Direct_Class_5973

NEVER SELL!!!!!!!!!!!!!!!!!!! it is not timing the market that matters but **time \*in\* the market**. so **STAY INVESTED**. there are two types of people; 1) those who think they can time the market 2) those who know they cant retail investor typical mistake is to sell when stocks are down, and buy when stocks are up. another retail mistake is a lot of buying & selling (going in and out of the market).. rather then just keeping it invested. So if the market crashes, DONT CASH OUT. look back at stock history; financial crisis, dot com bubble, covid, ukraine war.... stocks always recovered and then some! it went up as fast as it went down. so you gotta stay invested to take advantage of the bounce back! cause you never know when it will happen (unless you got inside info) 2023 and 2024 were super good years, so its no big deal if the markets drop another 30%, people who stayed invested would have still made money. do what the big boys (institutional investors) do, and buy the big dips. they buy when people panic. and they sell when people are high.

Quickoneonit

Everyone’s so confused about yields going up and stocks going down, it’s really simple. People are holding CASH cause this shits fucking CRAZY LOL

Away5827

You MAY lose your CASH MONEY in the Casino

lburnet6

The cruel irony is that they want to privatize social security so it folds into the stock market. Why would anyone want secure CASH thrown into the EASILY MANIPULATED stock market that the billionaires can wipe at their pleasure ?

EveryAd5472

It was MY CASH, I put the money into the account

izCS

CASH. And its better not be the US Dollar in your hand. I mean you can heat with it but ... most likely not too long.

Fragrant_Tutor_7368

THE PTSD TODAYS MARKET ACTION CREATED IN BERS AND PUT HOLDERS WILL HAVE THEM INVESTING THEIR CASH IN HYSAs UNTIL RETIREMENT.

PersonalityNo3031

What to do with CASH now? Scared to do calls or puts

Diamondhands4dagainz

CASH GANG LOOOOOOOOOL 

Albedo100

Time for all the "ALL CASH" crew to come out of the woodwork and claim they timed the bottom perfectly and bought in this morning.

RB-44

Yeh and? If that's the way it is then we should work to change it. It's not cheap labour it's children, women and men being forced to work. There was 3 million uyghur slaves in China as of 2020 and way more Chinese labourers who are forced to work under inhumane conditions. All so we can push the limit on how much a big corporation can win money. Apple has a crazy profit margin. Warren Buffet is literally sitting on 300 BILLION OF CASH not capital not assets but literal numbers on his bank account and he contributed nothing to Apple that can be considered pragmatic product wise. Fuck stock markets, fuck overinflated bubbles propagated by social media bots to rugpull every last cent of people's money. I'd rather work a normal job and go home everyday with a clean conscience than try to guess which minute of the day are they gonna screw over day traders so i can make a couple of hundred bucks while people are enslaved

fomoandyoloandnogrow

*I have a structured bankruptcy and I NEED CASH NOW.* **Call Donald J Trumpworth! 877-POORNOW**

SULT_4321

So what are the whales and hedgies going to do with all this CASH ON THE SIDELINES ?

Valueonthebridge

ALL TO CASH (no, seriously, buy you morons)

Painty_The_Pirate

If you have no idea what a company is truly worth, dont invest in that company. If a company’s cash flow looks like it could vanish overnight, dont invest in that company. If a company’s CEO has outplayed everyone else in the world at every turn, consider investing in that company. BRKB, AAPL, META, MSFT, GOOGL, and others went CASH months ago. Suspicious? Yea.

hgreenblatt

I am lost, you talked about SELLING PUTS. Yes you can ONLY BUY OPTIONS WITH CASH, NOT MARGIN , NOT BUYING POWER.

PHGAG

I liquidated everything at the top of he market after the election. Put everything in CASH. Now I am back to DCA in my usual ETFs. Catching it on the way down. And eventually will catch it on the way up. But TBH, the way things are going. I don't see this administration surviving the next 12 months unscathed. Whether its public pressure / unrest, industry lobbying, legal / criminal proceedings. It just seems like everything is in a tailspin and this administration is just firing blindly on all cylinders, hoping something sticks. But as long as this administration is in office, I don't think the international community will trust it given what they've done so far. I'd 100% bet on irreparable damage being done to the US economy as a lot of trading partners will divest This is coming form a Canadian 's perspective.

BIG_SCIENCE

Silencing people for talking about a company with $5 billion in cash on hand — and one that’s beaten EPS estimates three quarters in a row — is pure manipulation. It’s an effort to suppress facts and keep the rich and powerful who manipulate the stock market in power. Just two weeks ago, during the earnings call, the forecasted EPS was $0.09. GME crushed it, reporting $0.30 instead. And yet… no one on r/wallstreetbets said a word about it. The conversation was silenced into oblivion. 5 BILLION CASH ON HAND... holy fuck...

Parking_Note_8903

not naked but with credit spreads Also, they are CASH SETTLED EURO STYLE OPTIONS, you can go naked if you want, but the margin is nuts, way more efficient use of capital to throw a long to cover, even if it's silly wide

MutaliskGluon

This market CASH is alpha xD

ElectroMagnetsYo

My TSLA puts loved Thursday and Friday, up almost 93%. Rest of my portfolio is sitting in CASH.TO, so haven’t lost a single thing since January.

crashumbc

If you wern't in CASH for months that is on you...

ShayBuddha

Canadian investor here, looking for your suggestions. Large lump sum to invest within retirement accounts. Where would you put it if: * Currently invested in: VFV.TO, VAB.TO, VBG.TO, VOO, VSP.TP, VIU.TO, QQQ, QQC.TO, VEU, BNDX, and CASH.TO.  * Currently 0% Cdn Equity, 42% US Equity, 32% Int'l Equity, 20% US & Intl bonds, 4% Cdn bonds, and the balance in US & Cdn cash * 10 years from retirement (at 65), otherwise, a generally assertive, intermediate investor

SephLuna

877-CASH-NOW

Stockengineer

its up cause its purely in CASH... and if inflation up their interest rate on their cash goes up

momsickle

SPY Premiums are too expensive. CASH GANG now

TechnicalEntry

🎶I have a ~structured settlement~ crashing economy and I need cash now Call JG Wentworth 877-CASH-NOW 🎶

No_Cow_8702

CASH

Visual-Salt-808

You have your money in CASH? Like dollars? My guy, those are worthless

f-Z3R0x1x1x1

As others have said...what is going on right now is a bit unprecedented and we have a 'leader' who is self sabotaging our economy for who knows why....and it sounds like the trend is the dip will continue and who knows when it will stop. I have a rollover IRA I haven't touched in years since I haven't had to roll any 401k investments in for some time. I have a Roth I actively contribute to. Most of my investments are in FFNOX, FXAIX, FSELX, FBSOX. I'm down about 12k and it will be more by the end of today. Is there anything wrong just selling what I have and moving it into CASH inside Fidelity...almost all of it are long term positions dating back years.

zNatural

877-CASH-NOW

OoooohYes

I sold everything and bought all CASH.TO… fuck this noise

Bubbly-Trainer-5297

It’s insane LMAO Everyone is like DON’T TIME THE MARKET and then immediate THIS TIME IS DIFFERENT IM ALL IN CASH

garconcn

CASH

luso_warrior

ONLY CASH

K-space626

CASH IS 👑

KinnickHawk

877-CASH-NOW

jayxmor

CASH AND wait

BB_Fin

The price never goes up as much as the reduction in shares. The company's market cap is REDUCED by the SHARE REPURCHASE because THEY HAVE LESS MONEY. In your fictional situation, you have $50 that you have to reinvest - and your shares will only be worth $50, because the company just wiped out half its worth by giving out their market cap x 0.5 in CASH. You now have to reinvest the money, and you will have transaction fees and costs incurred for decision making. It's not free, it's stupidity. The only way the company (in your scenario) could "do better" is by replacing the cost of repurchases with loans of the same amount, but at a cost of capital that has lower requirements than shares. Even then, it's a stupid maneuvre, because you're ultimately signalling that you have shit ROI projects on the horizon. The only reason it was done - is to exploit ultra cheap capital, to artificially inflate EPS in the short term (for bonuses), and to hamstring the company with debt it can't repay at the current yields. It's a fucking disaster in waiting, and the fact that everyone did it simultaneously because they thought it would be fine, are going into the "find out" phase of this shitshow.

CathedralEngine

SO MUCH CASH. They're waiting for the bottom to scoop up billions worth at a discount.

MeepoSpam24-7

I am glad I sold all my stocks even if it was 3-4% down 2 weeks ago and put everything in CASH. I am glad

trainwreck001

IF YOU DIDN'T GO 100% CASH GANG YOU HAVE BIGGER BALLS THAN KING KONG AND I SALUTE YOU. 🫡 

TheBooneyBunes

877 CASH NOW!

abroadbroadband

Call J G Wentworth 877 CASH NOW