It Goes Down in the DM -- Activision Blizzard (NASDAQ:ATVI)

  

Investing In Yourself – Using Pillars to Build Your Core	https://urbanomics.blogspot.com/2015/04/urbanomics-pillars-path-set-for.html
Setting Budgets + Saving for Black Swans	https://urbanomics.blogspot.com/2013/02/personal-finance-budget-101-free-credit.html
	https://urbanomics.blogspot.com/2019/11/hey-henry-high-earner-not-yet-rich.html
How to Open My First Brokerage Account	https://urbanomics.blogspot.com/2015/04/personal-finance-101-starting.html
Diversify your Life (Mind, Body, Soul, + Investments) HOW TO SEARCH MY BLOG:	Get Updates to Your Email When I Create A New Post:

ACTIVISION BLIZZARD INC

Hello everyone, I hope you're enjoying a good summer. I've been laying low from the stock market as you guys have previously read. Some may say I've missed out on this year's rise in stocks and that is partially true. Many people don't know that the market has actually risen as a result of primary 7 stocks that have been very hot because of the latest buzzword AI - Artificial Intelligence. So if you've owned NVIDIA, MICROSOFT, META PLATFORMS (formerly FACEBOOK), APPLE, ALPHABET (aka GOOGLE), AMAZON, TESLA then you've done very well this year, however; all other stocks have just done BLAH. 

So I've opted for the slow and less risky approach while the government tries to still cool down what has been referred to as an overheating economy. As interest rates have gone up, I've focused more on taking advantage of those increased interest rates to collect 4 to 5% on the cash I'm sitting on in my retirement and personal bank accounts. I have stayed invested in investment account, but I've not been overly active. So what has worked for me:

I've continued to rely on my Mansa Musa network of friends. If you're not sure what this network is about, just run a search on my blog and get familiar with this approach. When there is uncertainty in the air, I believe in strength in numbers and invest with friends. Just over a year ago my 93-year-old buddy Warren Buffett started buying shares in Activision Blizzard. 

It Goes Down in the DM - Activision

I watched patiently after Microsoft slid into Activision DMs in January 2022 to the tune of $69 billion to hook up. As Buffett saw they were willing to 'put a ring on it', his company bought roughly 50 million. When we invest in companies hooking up, we hope they make it all the way to the alter. If you're a sports person, we hope the trade for the star player goes through. Two things subsequently happened that may me want to jump on board:

Back in May 2022, the stock market was falling and there was rumblings that these two were not going to make it to the alter. The trade might get cancelled. In the stock world, it's usually because US and international governments have to bless the deal to ensure it's not anticompetitive. This is like your parents blessing your marriage or the owners blessing the trade. This blessing was getting pushback in the US and UK. So there was VALUE as the stock dropped. What did I do, I decided to gamble with my Mansa Musa buddy Warren Buffet. I jumped in at the range of $69 - $75 a share.

I don't play poker but I and Warren Buffett were making a bet that the merger (aka hook up) would go through. If it did...if they made it to the alter the predetermined buyout price would be $95 a share. I like simplicity sometimes when I invest and I thought I was getting a discount on a great stock which I don't mind owning. The bonus or side bet is if this great stock gets the blessing to get married - then I get the guaranteed upside to $95 a share. In short Activision's stock should rise as long as Microsoft gets the blessing of it's parents (in the form of governments across the world). This got nasty like Real Housewives and went to court in the US, but the blessing finally happened. What happened to my simple thesis from over a year ago. 

Don't believe me, well go back look for yourself:

May 2022: First Post on Activision: https://urbanomics.blogspot.com/2022/05/the-stock-market-is-falling-will-i-be.html

July 2022: Second post: https://urbanomics.blogspot.com/2022/07/inflation-stagflation-recession-either.html

Where is Activision now:

The Stock Market is Falling - Will I Be Gone 'til November??

Every time I make a run

Girl, you turn around and cry

I ask myself why, oh why

See, you must understand, I can't work a 9 to 5

So I'll be gone 'til November

Said I'll be gone 'til November, I'll be gone 'til November

Yo, tell my girl, yo, I'll be gone 'til November

I'll be gone 'til November, I'll be gone 'til November

Yo, tell my girl, yo, I'll be gone 'til November

January, February, March, April, May

I see you cryin', but girl, I can't stay

I'll be gone 'til November, I'll be gone 'til November

And give a kiss to my mother

Lyrics by Wyclef Jean

Gone 'til November

Many investors are finally learning that stock markets do not go straight up. I've blogged that when the market was at its hottest, I was getting calls and text messages all day. Everyone was right and every stock they bought went straight up. I just hope that you took some of those profits off the table. Remember, we are building wealth and for some of us generational wealth for the first time and our goal is not to gamble. I learned the hard way many years ago that big gains should be pocketed or banked when you can and I use a crude but simple formula for selling some shares. If I've purchased a stock and it's gone up well, what's wrong with taking my initial investment OUT, then taking another 20% out, and finally letting the rest ride. Example:

Investment: $10,000

Say this Investment Goes up to 30% and you have $13,000 in your account

Sell $12,000 ($10K Initial Investment and $2K Profit Banked)

$1,000 - Let it Ride

I appreciate the calls when you get it right but I also want to hear about how you stacked your chips at the top. 

How did this work out for me? Well, I had help last year and a little bit of luck this year. Some of my largest positions were bought out. Again, a stock getting bought out is like a sports player getting a maximum salary offer from their team or being traded in free agency for a higher salary! So for me, I was luckily able to bank most of my gains. I somewhat listened to my own book because if you recall from a recent article, I showed some discipline and in October 2021 I moved 75% of my retirement account into safety. A few months ago, I moved the remaining 25% to safety as well. I know you want to know exactly what I moved them into. Well I surprisingly found out I have an Inflation Protection investment in my retirement account. If you're wondering whether this helped or hurt, it turns out that from the highs of Q3 2021, my stock portfolio was down roughly 10%...not great but less than what the market fell. That is about as much as I can ask for. In my personal portfolio, I learned that it was built in a barbell fashion and this was great when I wanted to take risk and not so great when the market turned down. I basically had half of my portfolio in what you may call value based safer stocks and roughly the other half were in the high flyer technology stocks.

Positive Positions:

Tegna - is being bought out so even while the market is down this position has not moved materially and should not until the acquisition is made in Q2 2022. I've actually played the ARBITRAGE and added to this position in a down market. This means I buy the stock as there is still a difference between the current price and the acquisition price. I monitor this stock closely but my last update was 87% of the shareholders just approved the merger so I think investment which I own in my personal and retirement account has a high likelihood of closing. 

Negative Positions:

ROKU - I'm glad I traded options against Roku because it was a very hot high flyer and as it went higher I made income trading against my position. Now as the market has dropped, that income trading is all I have to show for it, because Roku has fallen big time. 

Spotify - Spotify has fallen as well and the losses have been big.

When times get tough, I begin to move back to the basics. I look for trends that should work during these times and in my riskier personal portfolio this is where I consider buying stocks. Sometimes I simply do nothing at all. But here is what I'm doing:

1) Watching Warren Buffett - When the market is falling and people are scared, he has been cautious and now entering back in. But what is he buying or adding too, see this summary below:

a) I find it interesting; he is jumping into Paramount a stock I recently indicated had jumped on my radar because it was trading at a discount: Feb 2022 - Paramount Post

b) My Breakdown of Warren's Q1 Buys / Additions:

2) I am trading aggressively and trying to actively get out of any stocks that will not make up a core part of my portfolio. 

3) I've been more active than I've been in a long time. I've been trading:

Oil: Occidental Petroleum, Devon Energy

Arbitrage Plays: Twitter

Stocks that Benefit from Hard Times: Treehouse (maker of store brand products)

I copied Buffett and targeted Oil plays and want to build larger positions here as a hedge and I see he copied me by focusing on Arbitrage plays. I continue to buy Tegna until they get bought out and even purchased Twitter which hope Elon Musk will stop his shenanigans and agree to the original buyout of roughly $54. But is looking at Activision Blizzard, the video game maker, because he too is trying to identify high probability trades that will likely get bought out. I don't want high risk trades at this point and this could be why we both are looking at Arb plays. VMware may be one here shortly as Broadcom has been supposedly slidin' into it's DM and there are a few others bubbling out there.

I've spent way too much time on this post and have to get back at it, but a quick brain dump of what I'm thinking at the moment. Enjoy, trade safely, and #getthebag

When to Buy Stock | Prism - What Would U Do? | Tech + Finance | Music 2 My Ears

 

Investing In Yourself – Using Pillars to Build Your Core	https://urbanomics.blogspot.com/2015/04/urbanomics-pillars-path-set-for.html
Setting Budgets + Saving for Black Swans	https://urbanomics.blogspot.com/2013/02/personal-finance-budget-101-free-credit.html
	https://urbanomics.blogspot.com/2019/11/hey-henry-high-earner-not-yet-rich.html
How to Open My First Brokerage Account	https://urbanomics.blogspot.com/2015/04/personal-finance-101-starting.html
Diversify your Life (Mind, Body, Soul, + Investments) HOW TO SEARCH MY BLOG:	Get Updates to Your Email When I Create A New Post:

Coming soon is a post on Health -- The Body. You have to invest and know the data about your body. Like many people of color, I get nervous about hospitals and doctors. Thanks to my corporate job, I was exposed to annual exams and blood tests. Unfortunately, when I made the shift to being an entrepreneur I didn't keep up with my annual exams. And it may be costing me...stay tune for a future post on Health and how that impacts your Wealth. 

Also Coming Soon - a series on #HowtoInvest. People have been reaching especially after the spikes in Gamestop, AMC, and other stock to learn the basics. I self taught myself how to invest beginning at the age of roughly 18 and have never stopped. To be a good investor and ensure you are not gambling (speculating), I'll cover (hardest parts of investing in RED):

Budgeting 101 - How to Fund Ur Investments?

Why Stocks as an Investment?

What is Ur Investment Profile + Personality?

How to Pick Stocks?

When to Buy Stocks?

How to Enter My Trade?

How Many Stocks Should I Own?

When to Sell Stocks?

Am I Speculating (Gambling)?

When to Buy A Stock

Enough talking -- pictures and videos are worth a thousand words, so I plan to move into the digital age here soon. I'm an old soul in a millennial body with a 9-5 job and a side hustle empowering underrepresented groups to find employment in the technology field (and it's cash flowing almost better than my 9-5 job!). Oh by the way, I own real estate (with tenants) and trying to grow that portfolio. So be patient as I plan to do a video series that will help you invest in yourself and #getthebag. My best asset class is my stock portfolio and yes, it allowed me to semi-retire at 37. I've documented how I've done it here on my blog (mistakes and all) for the last 15+ years. Don't believe people that say it's easy --- Trust But Verify. If they are NOT teaching you how to do it yourself --- Then You Are The Product. #facts

Leading up to my video series, which you've been asking for, here is an example of how I hunt for stocks. Sometimes I rely on my network of friends in my #MansaMusa network. They've helped me build my mini empire and I appreciate all of them as they've support me in different ways. When I got started I had a few #whentobuy rules. So today I'm sharing Rule #2 - Follow Da Leader | Whale Watch | Griot Rule.  When I first started I read so many books from my mentor Warren Buffett...we just clicked personality wise. So it took me awhile to ease away from Rule #1 but after reading and reading about Warren I understood I had a job and could never dedicated as much time as he did to investing. So instead I incorporated Rule #2 of investing is assets to my stock game. Like in Africa, we place our elders in high regard, so my Griot Rule is to follow leaders that have dedicated their lives to investing. My Grade A college degree helped me realize that mathematically I'm not going to follow just anybody...I want to follow those leaders that have outperformed over time. Wall Street calls these people "Whales", I like to call then Griots. I've gotten so good at learning from these leaders over time that I've sometimes made an investment and come to find --- they made the same investment AFTER I did. Yes vindicating, but it shows me their is enough to grow the pie for everyone. I am not competing with Warren or the other leaders...we are planting seeds together.  Here are 3 Griots, I've learned to trust very much over time and hold in high regard:

Learning From Warren Buffett (Street Cred: #ABilliSquad Member, Net Worth: $100B, Patient, Philantropist, Teacher): Shareholder Letters (berkshirehathaway.com) - This link is to his shareholder letters, which teach you about life, investing, and stocks he buying.

Learning From Ray Dalio (Street Cred: #ABilliSquad Member, Net Worth: $20B, Hedge Fund Worth: $140B, Brutal Honesty, Teacher) : Top 3 Investments: ABBVIE (Ticker: ABBV); BlackRock (Ticker: BLK); Linde PLC (Ticker: LIN) - If you've not read Ray's work on Principles...please do. I to am brutally honest and Ray was a shining force for me NOT to change. Here are his top 3 investments.

Learning From Michael Blurry (Street Cred: Net Worth: $300M, Contrarian Views, Brutal Honesty, Wants People to Do the Right Thing : NOW Inc. (NYSE:DNOW); Wells Fargo (NYSE:WFC); GEO Group (NYSE:GEO); Molson Coors Beverage Co. (NYSE:TAP); CoreCivic Inc. (NYSE:CXW); HollyFrontier Corp. (NYSE:HFC); and he owned GameStop (NYSE:GME) before Ryan Cohen and I jumped in. - If you remember, I unfortunately called the beginnings of the Financial Crisis in this 2006 article: URBANOMICS: Huff, Puff, & Blow the houses down. Now fast forward to one of my favorite movies: "The Biggest Short". I, in my mid 20s didn't know how to invest in assets (housing) that I believed was going to fall hard from being overpriced --- guess who made hundreds of millions because he did -- Michael Blurry. My only solace was I bought my first property during the crisis at a steep steep discount.

Learning from a Griot is the way we've always done it. Elders have been there and done that. I then research on my on and try to understand why and make a decision for myself if I agree and should I invest. Remember my #LexusMentality - take the best from others especially when its not your main hustle.

Tech + Finance

1) Main Street America is "cashing out" or cashing in on their homes at the highest rates since the 2008 Financial Crisis.  

Why I'm Reading: I like to look at trends and I'm not a fan of debt so we'll see how this plays out. It didn't end well before and history has a strange way of repeating itself.

Link: https://www.google.com/amp/s/www.wsj.com/amp/articles/cash-out-refinancings-hit-highest-level-since-financial-crisis-11615458602

2) 3D Printing Homes of the Future

Why I'm Watching: Game changing trends of the future make for great investments and help the culture. I see affordable housing for the masses??

Prism

Why I'm Reading: For those that don't believe many of us face racism or unconscious bias on a daily basis need to read this story. I am a shareholder of Tegna Inc (NYSE: TGNA) stock and found this in my news feed. Read this story about Adonis Hoffman and then tell me --- What Would U Do?

Link: https://www.reuters.com/article/instant-article/idCAKBN2B11TP

Music 2 My Ears

Why I'm Reading: I like to dig for new artists like I do for stocks. The hard thing with Freddie Gibbs is deciding if he's new or at 39 just finally get his dues. Amazing story of one man's struggle to get to the top.

Link: https://www.theringer.com/platform/amp/features/2021/3/10/22319899/freddie-gibbs-grammy-nomination-profile-alfredo-alchemist

Mansa Musa Mentality - Building Your Investment Empire

This year I wanted to get back to the basics as I continue on my journey of independently building my investment empire. Back in college, I recall managers coming in from the Toyota car company and telling us how they came up with the concept for the brand, Lexus. Quite simply, they decided to take the best ideas from all the top car companies. I remember it like it was yesterday: German (engineering), Japanese (manufacturing + quality), American (design) produces luxury at a more affordable price. That stuck with me in a major way and I incorporated that into my life.

Mamba Mentality - For the things, I dedicate my life to I try to have a work ethic like Kobe Bryant or Michael Jordan, that Mamba Mentality that I am here to compete and win. I would argue I've received awards and recognition in athletics, academics, and for my execution in the corporate world. Feel free to ask anyone, I've worked with - they will say I'm tough, very competitive, but fair.

Lexus Mentality - For things that I am passionate about but cannot dedicate myself to that craft, I do spend a considerable amount of time learning about that subject but I also borrow or have on speed dial people that know more than me on those topics.

This duality helps me grow my empire which gets stronger as I build my "Network" of friends, colleagues, subject matter experts, confidants, and even detractors. These are people I can call, email, or text at the drop of a dime to help me make an informed decision. The area I'm most proud of is my network extends to virtual experts and confidants that I've catalogued over time. People I've come to trust after listening, reading, or researching their work. Here are a few:

Real Estate (Diana Olick, Sam Zell*, Jonathan Gray*); 

Economics (Mark Zandi, Jason Furman, Fed Governors); 

Healthcare (Dr. Scott Gottlieb);

Technology / Stock Investments (Kara Swisher, John Fortt) (Katie Stockton, Larry Fink*, Mohamed El-Erian, Bill Miller);  African-American Investors (Jay Z*, John Rogers of Ariel Funds, Robert F. Smith* of Vista Capital, Daymond John, Rick Ross, LeBron James, Dr. Dre, Junior Bridgeman, Shaq O'Neal); 

#A-Billi Squad: Warren Buffett*, Chamath Palihapitiya*, Seth Klarman*, Paul Singer*, Bill Ackman*, Carl Icahn*, Mario Gabelli*, Tilman Fertitti*, David Tepper*, Dan Loeb*, David Einhorn*, Ron Baron*, John Paulson*,

*represents my billionaire buddies

Funny thing is this was off the dome (in my head) and most listed here helped shape my thinking or we've made money together. When I combine all these concepts or mentalities into one you get the Mansa Musa Mentality. Arguably the richest person in history, Mansa Musa, ruled over a large empire and put cities like Timbuktu on the map as they were known for their cities and libraries.

In my upcoming posts, I'll be writing about #MansaMusaMentality and how I use my extended network to invest. Almost like case studies, I'll highlight how these contacts guide me on investments such as buying real estate, stocks, precious metals, cryptocurrencies, etc. And I want to foster a community culture, so I'll show you how I learn from them and maybe in the future we can crowdsource or here we call it #tribesource investment ideas for the future.

"Detail" - A Breakdown of my Burlington Northern Santa Fe (BNI) Investment

Year: 2007

Throwback Link: 2007 BNI Investment

I first wrote about BNI on August 15, 2007. This stock makes the #MansaHallofFame because I used my network, in particular Warren Buffett, to find this investment. Warren (part of #ABilliSquad) began making large purchases of the railroad company. I did some research on the company, the products they haul, and whether the stock was selling at a discount to it's long-term value. But it was my long-term relationship with Warren that helped me cement my decision. I knew that he often liked to own companies in entirety. So when he bought more, I repeatedly purchased this stock in large blocks. Don't believe me, click the link - in 2007 I called it my Juvenile "Back That Thang Up" trade. It's not uncommon that investors rally around similar stocks or ideas, so on occasions I join them: #HuntinPacks

Outcome: 

Ironically, because I have a 9-5 job I have never paid to much attention to the comments section. Well 13+ years later, I found this comment on the link I provided in above. The reader complimented my depth of knowledge and inquired whether I thought Warren would takeover OR buy the entire company. As mentioned above, I have researched and studied so many books on Mr. Buffett that I did in fact believe he would eventually buy the company out and I'm disappointed I never had a chance to share that with the reader. But he got his answer just two years after that post:

Warren Buffett made biggest purchase of career; buys Burlington Northern Santa Fe Corp for $26.3 Billion; Warren's company Berkshire agreed to purchase the railroad for $100 a share

Excerpts from Wall Street Journal (Nov. 4, 2009)

And I made roughly $20-25 for every share I owned:

Block Purchases:

08/15/2007  09:41:05 Bought *** BNI @ 79

08/16/2007  12:08:56 Bought *** BNI @ 76

01/22/2008  08:00:13 Bought *** BNI @ 75.61

Sale (due to Berkshire buying my shares):

02/17/2010  15:40:03 Sold *** BNI @ 100

Guess How I Found Out: 

A reader texted me at work and said "I bet you are having a great day". I responded, what in the world are you talking about...and he shared the great news. And this is not just any reader, this is an amazing friend and my mortgage broker, who I've kept in my network and stayed in touch with since my college days. I've purchased and refinanced all of my properties with him and consider him a confidant. Long Live The Empire

#MansaMusaHOF   - designates this stock pick was retired in my Hall of Fame

#ABilliSquad -  Billionaire investors from the Wall Street community that make up my squad. Ya Dig

#HuntinPacks - designates investments I made alongside someone in my network

#MansaMusaMentality

Store My Gold on Racks (GOLD, GDX, GDXJ, RXT)

Need for a Bubble

So in my last post you saw my brief tribute to Nas and Lauryn Hill. They are true giants, in my opinion, in lyrical expression and miseducation. Similar to Lauryn Hill, my blog is a miseducation on life because it asks you to wake the F%!# Up and think. I call my version of miseducation -- unplugging from the matrix. Don't get my blogs twisted, in order to wake up you need to ground yourself in the 4 Pillars we often cite here. One of the biggest being education and continuous learning...I call it SLAM +, please look up my post on Science, Legal, Arts, Math and + (technology and trades skills). I heard today COVID-19 has shown a disparity that I'm sure in negatively effectively some of my readers. College educated workers, especially those with 401K retirement type accounts are thriving in this pandemic. One of the root causes --group most likely to Work From Home.  Which then allows them to sit back and throw stones...like a common phrase I've heard: "Why were the unemployed getting an extra $600 a paycheck?"  This is the type of bs I can't believe we are still discussing...they must have been listening to Jay because --- they have no passion, no patience, and I guess they hate waiting --- on items like evictions, unemployment, safety of front line workers, etc.  Unbelievable, you want to send the less fortunate to the front lines while we can chill at the crib, reducing our risk, while watching the Federal Government bailout our 401K plans and re-inflating them past their previous levels. I guess main street doesn't get a bailout that rivals what your 401K got?  When I made a decision to WFH over 3 years ago, I vowed to never return to a physical office ever again. Many laughed at me when I gave them my risk assessment but look at where we are at now. I told you then and say it now, I can get my work done, take care of my family and better use my free time (while often working more hours) at home. But this benefit I've worked hard for, doesn't mean I should forsake my front line brothers and sisters. They need the best security, protections, and piece of mind for their families like WFH gives my family.  OHH did I mention, I am assisting my daughter with her virtual school program -- not exposing my baby to unnecessary risk when the National Basketball Association just showed all of America what is needed to survive and thrive in this pandemic --- A BUBBLE...sound familiar.  

Storing My Gold on Rack

I could give you my best Tyga, Rack City impression because I am a fan of his music but I think more importantly a fan of his mindset. If you recall, he was one of the first defectors from Cash Money Records when his L (in SLAM) - Legal contract appeared to be whack and NOT in his and his family's best interest. He was called names and the cancel culture told him be happy with what Baby (owner of Cash Money Records) gives you and did for you.  How did that turn out...well years later let's ask Lil Wayne who was also disgruntled and this led to The Carter V album release being delayed over disputes about...yep you guessed it his contract. At the end of the day, you have to do what best for you and your family and I have always rocked with Tyga before and definitely after that move. I'm not even going to touch the Kylie Jenner subject because at that time I was quoted as saying she was the most "down to earth" Kardashian Jenner AND I thought her then Social Media business empire was growing quite well. Fast forward to today and a company I owned Coty (cosmetics industry) bought a 51% for a roughly $500M stake cementing her Billionaire status. Now every hit song he writes, he gets a full "Taste" haha pun intended of the profits!

So Tyga let me tell you about my Rack City:

I have not been shy about owning GOLD in this economy. History has shown when the Federal Government prints money out of thin air to inflate the economy (and then does it at the fastest clip ever seen in history.) then it's time to put GOLD on my investment rack. My previous posts disclosed that I own shared in a small mining company called NOVAGOLD (NG) and I also like the Gold and Gold Miner ETFs. I've even disagreed with one of my first mentors Warren Buffett by owning GOLD since the 2008 financial crisis when my Billionaire Boy Club buddy John Paulson introduced me to NovaGold to hedge the pain of the financial crisis. Another time in history that we printed money like nobody's business. 

1) I agree with Warren that Gold has NO intrinsic value, and 

2) I agree that it should NOT be usually held as I technically have NO way to value this asset. 

However, assets like GOLD do have a place in this world and that is when there is FEAR in the water. While I am not fearful of much, I do think the US economy is at one of it's most dangerous crossroads possibly ever. The divineness is HIGH as people are diving the country along racial, economic, and social issues. So I am glad to hear that Warren the teacher, has done something that his pupil has done since 2008 --- buy GOLD!!! And he did in a major way:

1) Warren Buffett and the Berkshire team purchased a $562-million stake in Barrick Gold (GOLD)

2) He also SOLD --- most of the major US banks (JP Morgan Chase, Wells Fargo, Goldman Sachs)

Warren won't be speaking soon on TV soon because he doesn't want to scare the masses that follow what he says. But like systemic racism and oppression, I have a responsibility to speak out and keep it real. I would follow what he's doing BUT I already own GOLD, but will consider evaluating Barrick Gold. Investors make purchases like this when we see risk in the economy. Go back and search my posts using the term GOLD and you'll see I own:

Novagold (NG)
Gold Miners Juniors (GDXJ)

and like but do not own:

Barrick Gold (GOLD)
Gold Miners (GDX)
Gold ETF (GLD)
Gold ETF (IAU)

I'm even re-thinking my position on Bitcoin as its a useless asset but if I believe there is trouble in the water, I want to consider assets people will run to.

 In honor of Tyga, Mr. Rack City, I also purchased shares of this stock:

Rackspace (RTX) - around the $17.5 range, the word on the streets is Amazon is sniffing around this company. Time to take a flyer on my version of rack city!

Novagold (NG); Gold Miners Juniors (GDXJ); Barrick Gold (GOLD); Gold Miners (GDX); Gold ETF (GLD); Gold ETF (IAU); Rackspace (RTX) 

When it Comes to Bailouts --- Congress Be Nimble, Congress Be Quick

But if history is any example, Congress usually falls when jumping over the Candle Stick --- at least for the first few times. Take a look at what I wrote in 2009 and tell me if it sounds eerily similar to what is happening today. Does this mean that as humans we don't learn from our mistakes? I would hope not but wow the similarities cannot be overlooked. If you're lazy I'll paste a few excerpts here from the initial 2009 bailout response from Congress (https://urbanomics.blogspot.com/2008/11/bailout-tarp-abandoned.html):

2009: "Here goes another I told you so. The bailout money allocated to buy distressed assets was abandoned by the Treasury Department. 

Fundamentally I agree with the fact that a bailout is needed but I have noted that the government needs to address both the supply and demand side of our economy. On the Supply side, I don't mind the Treasury department injecting cash into banks but I do think that one of the strange things is that but private investors like Warren Buffett are brokering better deals then the GOVERNMENT is. Part of the problem is no oversight or poor oversight because these banks are not lending to the public!"

2020 - Fast forward to March 23, 2020, the bailout provision did not pass the Senate last night. This will undoubtedly cause the stock market to fall swiftly even further, and oh boy is it ever. With a majority of my investments in cash, you have to take history into account. Everyone I talk to NEEDS the market to go up I assume due the sheer amount of leverage they have in the system. While I am hopeful as well, risk management IS NOT about hope. It's about threats and likelihood. I am certain no matter what the climate is, politicians cannot do the right thing the first time around. Similar to the courageous fighters "300", that they are NOT --- until the markets are truly crashing and panic is all around will something finally get done. Look at 2009, same circumstances in 2020. Compromise, take care of people first, protect your companies but make then remember the pillars so we learn from our past mistakes. 

2009: "Where do we go from here:

The markets will continue to trend lower or remain in a trading pattern. When I first spoke of actions to take to address the direction of the markets I recommended most folks get a majority of their money out of the market and into bonds. Then the Dow Jones Industrial Average (basket of the 30 large stocks representing the US economy) was trading around 9000 and my guess was that we would head lower and test recession like lows. The last time we could compare lows like this was in roughly 2002-2003 when the market hit lows of roughly 7700 (I believe). My assumption is that this will be the prudent time to begin to reallocate your portfolio back into the market. Again that is an assumption because I don't really think that this last time can be effectively compared to now. We are facing a local recession, rising probability of a global recession (in most areas except for China), and if these conditions exist we could be facing a depression due to deflationary pressure. This could be the one area that I initially got wrong...I thought we would be facing inflationary pressures or rising costs but that appears to be far down the line. Right now deflation is running wild and that is evident is the sharp decline of prices across the board. Gas is down from $4.00 to now roughly $2.00 and everything is falling with it, stocks included. If this trend continues deflation could lead to an extended recession and Dow 7700 may not even be a legitimate floor for the market."

2020: Again striking similarities. Gas then dropped dramatically to $2. Where are we now in 2020... this exact same range. I have not looked at the charts but my gut tells me we are headed to the highs of PAST which are significant lows from where we were just a month ago. Let's flash back the good times in 2007 and 2013 as examples:

Before the Crash we topped 14,000 on the DOW in 2007: https://urbanomics.blogspot.com/2007/07/dow-take-bow.html

After the Crash we hit 14,000 in 2013: https://urbanomics.blogspot.com/2013/02/dow-at-14000-pt1-are-you-too-late-for.html


We will get a bailout package in the next few days. Then expect the markets to bounce with euphoria. But then we will have to live with the unwinding process. If many of us are trying to get by living paycheck to paycheck...not everyone can be bailed out. Usually you see/hear debt or margin calls (people calling say you owe them money), foreclosures, evictions, etc. I am proud of the companies that have stepped up and delayed these payments already. But its a band aid measure. But proud non the less. I have not looked at the charts yet so this is not a prediction...but this could be a psychological number that is tested as it has been in the past.