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    Thursday, May 3, 2018

    It's moronic Monday, the Wednesday edition, your chance to ask any of those questions that you're embarrassed to ask in real life. Investing

    It's moronic Monday, the Wednesday edition, your chance to ask any of those questions that you're embarrassed to ask in real life. Investing


    It's moronic Monday, the Wednesday edition, your chance to ask any of those questions that you're embarrassed to ask in real life.

    Posted: 02 May 2018 05:05 AM PDT

    We encourage all our visitors to ask those investing related questions they were always too afraid to ask.

    The members of /r/investing are here to answer and educate!

    NOTE If your question is "I have $10,000, what do I do?" or anything similar. There is no single answer to this question, but we will also need A LOT MORE information if we are to give some sort of answer

    • How old are you?
    • Are you employed/making income? How much?
    • What are your objectives with this money? (buy a house? Retirement savings?)
    • What is your risk tolerance? (Do you mind risking it at blackjack or do you need to know its 100% safe?)
    • What are you current holdings? (Do you already have exposure to specific funds and sectors?)
    • Any other assets? House paid off? Cars? Expensive girlfriend? (not really an asset)
    • What is your time horizon? Do you need this money next month? Next 20yrs?
    • Any big debts?
    • Any other relevant financial information will be useful to give you a proper answer.

    Be aware that these answers are just opinions of Redditors and should be used as a starting point for your research. You should strongly consider seeing a registered financial rep before making any financial decisions!

    submitted by /u/AutoModerator
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    45% of prime members surveyed said they're going to drop because of the $20 price hike

    Posted: 02 May 2018 10:23 AM PDT

    Elon cutting off analyst questions on conference call. Stock now heading lower

    Posted: 02 May 2018 03:38 PM PDT

    This is the worst conference call I've ever listened to. People need to go listen to this thing when it is made available. His rudeness to analysts was stunning - Tesla keeps having these Skilling moments but this was a big one.

    You can see what the stock is doing AH as the stock is going on. Whatever you think of analysts, you don't do what Elon did on the conference call when they are about to ask a question.

    Edit to add: https://www.bloomberg.com/news/articles/2018-05-02/musk-cuts-off-analysts-for-youtube-questioner-tesla-shares-fall

    submitted by /u/dvdmovie1
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    Spotify stock plunges after reporting earnings for the first time

    Posted: 02 May 2018 03:36 PM PDT

    Spotify shares fell nearly 8 percent in extended tradings Wednesday when it reported its first quarterly earnings as a public company and gave a disappointing outlook for revenue growth.

    https://www.cnbc.com/amp/2018/05/02/spotify-earnings-q1-2018.html

    submitted by /u/savvyfuck
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    Corporate debt

    Posted: 02 May 2018 06:16 AM PDT

    https://www.economist.com/news/business-and-finance/21741377-corporate-debt-could-be-culprit-where-will-next-crisis-occur

    One sign that the credit quality of the market has been deteriorating is that, globally, the median bond's rating has dropped steadily since 1980, from A- to BBB-. The corporate-bond market is divided into investment grade (debt with a high credit rating) and speculative, or "junk", bonds below that level. The dividing line is the BBB rating. So the median bond is now junk.

    At the same time, a prolonged period of low rates has made it very tempting to take on more debt. S&P, a credit-rating agency, says that as of 2017, 37% of global companies were highly indebted. That is five percentage points higher than the share in 2007, just before the financial crisis hit. By the same token, more private-equity deals are loading up on lots of debt than at any time since the crisis.

    Even within investment-grade debt, quality has gone down. According to PIMCO, a fund-management group, in America 48% of such bonds are now rated BBB, up from 25% in the 1990s. The companies that issue them are also more heavily indebted than they used to be. In 2000 the net leverage ratio for BBB issuers was 1.7. It is now 2.9.

    Investors are not demanding higher yields to compensate for the deteriorating quality of corporate debt; quite the reverse.

    https://www.bloomberg.com/news/articles/2018-05-02/lippmann-of-big-short-fame-says-corporates-will-cause-next-pain

    The former Deutsche Bank AG trader who now oversees about $3 billion at his LibreMax Capital LLC said in a Bloomberg Television interview that corporate debt and equities will face the biggest pain when the next downturn comes. Investments linked to consumer debt, unlike the last crisis, will be relatively safe because companies have been the ones gorging the most on the ultra cheap interest rates during the past decade.

    "If the first quarter's volatility is a harbinger of something bigger, I think that you're going to see a lot more trouble in the corporate market and the equity market than the structured products market," Lippmann said on the sidelines of the Milken Institute Global Conference in Beverly Hills, California. "The consumer is in much better shape than corporates. Consumers are less levered than they were pre-crisis. Corporates are more levered than they were pre-crisis, and I think structured products are not going to be the epicenter."

    submitted by /u/COMPUTER1313
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    Tesla Projects End to Cash-Burning Era With Model 3 Gaining Traction

    Posted: 02 May 2018 01:59 PM PDT

    Bloomberg Starts Charging Subscription Fee

    Posted: 02 May 2018 08:56 PM PDT

    Slightly off topic. But is anyone esle frustrated Bloomberg decided to stop streaming on Youtube?

    Posted: 02 May 2018 08:42 AM PDT

    They've stopped the live tv stream and switched it over to some pre-recorded nonsense stuff =(

    I know I can do it directly on their site. But Youtube is so much more convenient. Can watch on multiple devices and rewind the stream.

    submitted by /u/AlaskanSnowDragon
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    Paypal stock down on nexs of Amazon Pay

    Posted: 02 May 2018 05:05 PM PDT

    Would you buy Berkshire after Buffet's death?

    Posted: 02 May 2018 06:57 AM PDT

    Thoughts?

    submitted by /u/WHO_DlS
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    Inside the World’s Most Elite (and Secret) Traders’ Club. The nameless group confers “a hunting license” that lets an investor sit at the “big boy table and make high-level trades not available to stupid amateurs.”

    Posted: 03 May 2018 03:43 AM PDT

    Eurozone inflation lower than expected

    Posted: 03 May 2018 02:52 AM PDT

    https://www.bloomberg.com/news/articles/2018-05-03/euro-area-inflation-unexpectedly-slows-muddying-ecb-exit-debate

    Must feel like a big slap in the face for the ECB, who tied their own hands behind their backs and are now just a passenger on the wild ride that is eurozone macroeconomics.

    submitted by /u/legit_old_account_3
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    Why the hate against bonds?

    Posted: 02 May 2018 05:46 PM PDT

    Maybe I'm too new at this but why do so many people hate bonds? As I understand it, they're a fixed income so the coupon rate that you get (like 2 or 3 percent) is what you receive until maturity. If you buy municipal or treasury notes/bonds, and hold onto them you get that coupon rate every so often until eventually you get your full value back. Unless the company/government defaults I don't see how you could lose with that! It seems more stable than tossing everything into the stock market and hoping it moves in the way you want it to.

    submitted by /u/theidesofmargin
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    Tanger Outlets (SKT)

    Posted: 02 May 2018 08:03 PM PDT

    Hey everyone, what's your thoughts on the Tanger Outlets REIT (SKT)?

    It took a dive today and is down to $20.36. It's got an attractive dividend yield of 6.39% and I'm thinking about buying some in my Roth.

    Do you guys think it's got more room to go lower? Or is $20 a good buy in price?

    submitted by /u/jetty_life
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    Share an IBD subscription?

    Posted: 03 May 2018 12:42 AM PDT

    Hi - bit of a random one but would anybody be willing to go halves on an IBD subscription?

    I do not live in the US and have heard horror stories of non-US subscribers being charged after cancelling.

    If anyone is willing to share that would be amazing.

    Many thanks

    submitted by /u/billericayBatman
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    It appears China has stopped buying soybeans from the US altogether because of trade fight

    Posted: 02 May 2018 07:31 PM PDT

    "China canceled a net 62,690 metric tons of U.S. soybean purchases in the two weeks ended April 19, the Bloomberg article pointed out, citing USDA data for the current marketing year."

    ""They're buying beans in Canada, in Brazil, mostly Brazil, but very deliberately not buying anything from the U.S."

    Soybean futures fell 1 percent Wednesday, but are still up 8 percent on the year.

    Wonder if this will escalate to other industries

    https://www.cnbc.com/2018/05/02/it-appears-china-has-stopped-buying-soybeans-from-the-us-altogether-because-of-trade-fight.html

    submitted by /u/GopherFawkes
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    Taxes on Short Term Capital Gains, is day trading even worth it?!

    Posted: 02 May 2018 10:40 AM PDT

    So I've been doing pretty well for myself trading penny stocks this year, I've made ~$33,000 in capital Gains, and my Net Liquidation as of today is ~$70,000. However I only have ~$10,000 cash in my account, which is probably more or less what I will owe on my current capital gains. I'm starting to realize that if I continue like this I might end up paying more in taxes than I actually physically have. Is it even worth day trading even if you are fairly successful? I think I'm going to stop opening new positions and just exit all my short term ones I currently have(minus some long term investments) and then take stock of what money I actually have and pull out what I will owe in taxes and put it in my savings account.

    submitted by /u/LucefieD
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    I bought the stock - but do I own it?

    Posted: 02 May 2018 08:51 AM PDT

    I recently decided to take my first foray into the market, because I am young and tired of spending my money in foolish ways. I have the money to experiment with, and recently purchased a mere 15 shares in Barclays. Or at least I thought I had purchased Barclays - it turns out that since Barclays is a UK company, I purchased Barclays ADR, which is I believe a representation of stock in a non-US company. Then I go to my stocks app on my iPhone, look up Barclays, and discover there are two stocks listed - BCS(Barclays PLC) and BCS-PD(Barclays Bank PLC), the first trading at 11.35 and the second at 26.09. I went onto the Barclays website and discovered that the UK stock is trading at 205 GBp. Can anybody please explain to me what in the actual hell is going on, whether or not I own Barclays(UK) stock, a different stock, or if I even own any stock at all. Thank you, and I'm sorry for my follies, oh mighty Midas.

    submitted by /u/benitobrestfeedle
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    Hedging Citi Group ETN Risk

    Posted: 02 May 2018 09:45 PM PDT

    I would like to use an ETN issued by Citi Group, and I want to hedge the risk of Citi Group defaulting on the ETN.

    Citi Group January 2020 $37.5 puts are $0.78 (or cheaper), in other words, a 48x payout if Citi Group's price goes to $0. This is 20 months of insurance against Citi Group failing.

    My question's are, is this a valid hedge? In other words, if I purchase this put, is there any chance that before expiration citi group is both unable to pay off their ETN debt to me, and their price is not $0?

    Also, what's a good resource to determine their debt order of payment and other debts? According to their prospectus, the ETN is a "senior debt security".

    Edit: Additional question: how is it that Citi Group's nov 2020 bond has a yield of 2.1%, while the 2 year treasury yield is 2.4%

    submitted by /u/110101002
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    U.S. Lifts Debt Sales as Deficit Grows, Plans 2-Month Bills

    Posted: 02 May 2018 06:47 AM PDT

    https://www.bloomberg.com/news/articles/2018-05-02/treasury-lifts-long-term-debt-sales-as-u-s-budget-deficit-grows

    Text:

    The U.S. Treasury Department will boost the amount of long-term debt it sells to $73 billion this quarter as President Donald Trump's administration seeks to finance budget deficits set to widen further because of tax cuts and higher spending.

    In its quarterly refunding announcement on Wednesday, the department again lifted the auction sizes of coupon-bearing and floating-rate debt after doing so last quarter for the first time since 2009. It again left inflation-linked security sizes unchanged. Treasury also announced plans to issue a new two-month bill later in 2018.

    After keeping borrowing relatively stable in recent years, the Treasury announcement highlights the Trump administration's need to sell debt to help pay the government's bills as the deficit swells and the Federal Reserve allows maturing securities on its $4.4 trillion balance sheet to roll off gradually. The possible new bill maturity comes after a deluge of sales over the first quarter was partly to blame for money-market rates rising sharply.

    The Treasury will sell $31 billion in three-year notes on May 8, versus $30 billion it sold last month and $26 billion in February, according to a statement released in Washington. The government increased to $25 billion the sale of 10-year notes, from $24 billion last quarter, and the 30-year bonds to $17 billion from $16 billion, also to be auctioned next week. The sales will raise new cash of $33.9 billion.

    In the statement, the Treasury said it plans over the coming quarter to boost auction-sizes of other maturities.

    $27 Billion The department will notch higher sales of two- and three-year note auctions by $1 billion per month over the quarter, compared with monthly rises over the past quarter of $2 billion. It will also boost five-, seven-, 10-, and 30-year note sales by $1 billion starting in May and lift floating rate notes by $1 billion in May. The changes will result in an additional $27 billion of new issuance.

    Treasury plans to conduct small-value buyback this month, it said, adding details will come later. The department said the buyback shouldn't be seen as a change in policy.

    The U.S. budget deficit widened to $600 billion halfway through the fiscal year that began Oct. 1, as spending increased at three times the pace of revenue growth in the October-to-March period, according to Treasury figures released last month.

    Tax reductions and higher spending approved by Congress and Trump are expected to push the budget shortfall to $804 billion in the current fiscal year, from $665 billion in fiscal 2017, and then surpass $1 trillion by 2020, according to the Congressional Budget Office.

    The U.S. set a first-quarter record, by borrowing a net $488 billion, or $47 billion more than previously estimated, the Treasury said Monday in a quarterly announcement on its borrowing needs. Still, Treasury Secretary Steven Mnuchin has indicated he's unconcerned about the bond market's ability to absorb rising government debt.

    Earlier this week, bond dealers meeting with Treasury officials indicated that foreign demand for Treasuries "remained robust," according to minutes from the Treasury Borrowing Advisory Committee released Wednesday. That assessment echoed comments Mnuchin made on Monday.

    "It's a very large, robust market -- it's the most liquid market in the world, and there is a lot of supply," he said in the interview. "But I think the market can easily handle it."

    A recent report from the International Monetary Fund showed that the U.S.'s debt load by 2023 will be worse that the fiscal position of Italy, the perennial poor man of the Group of Seven industrial nations.

    submitted by /u/iamabigbrownbear
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    Is it possible to transfer value between two vanguard admiral funds without 'cashing out' and getting taxed on capital gains?

    Posted: 02 May 2018 02:33 PM PDT

    Question in title. I am thinking of diverting some of my VTSAX to VITAX, but I don't want to get hit with the capital gains tax due to that transaction. Does vanguard have any hooks to enable this?

    Thanks!

    submitted by /u/TangoCJuliet
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    Yield vs price for fixed income

    Posted: 02 May 2018 06:30 AM PDT

    I knew for long time about the inverse relation between yield and price of fixed income securities. But I haven't found a clear chart of the relation, is it linear? Is it elastic based on supply and demand?, does it change for credit rating?? Can a bond expert explain? Is there a chart that shows that relation yield vs price? Thanks.

    submitted by /u/sunole123
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    Daily advice thread. All questions about your personal situation should be asked here

    Posted: 02 May 2018 05:05 AM PDT

    If your question is "I have $10,000, what do I do?" or anything similar. There is no single answer to this question, but we will also need A LOT MORE information if we are to give some sort of answer

    • How old are you?
    • Are you employed/making income? How much?
    • What are your objectives with this money? (buy a house? Retirement savings?)
    • What is your risk tolerance? (Do you mind risking it at blackjack or do you need to know its 100% safe?)
    • What are you current holdings? (Do you already have exposure to specific funds and sectors?)
    • Any other assets? House paid off? Cars? Expensive girlfriend? (not really an asset)
    • What is your time horizon? Do you need this money next month? Next 20yrs?
    • Any big debts?
    • Any other relevant financial information will be useful to give you a proper answer.

    Be aware that these answers are just opinions of Redditors and should be used as a starting point for your research. You should strongly consider seeing a registered financial rep before making any financial decisions!

    submitted by /u/AutoModerator
    [link] [comments]

    How does Fed calculate inflation?

    Posted: 02 May 2018 01:40 PM PDT

    Houses are more expensive, food is more expensive, gas is more expensive. How is inflation only 2%?

    submitted by /u/vebmatematika2
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