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    Saturday, May 5, 2018

    Stock Markets Rally, Apple stocks hit record high after Warren Buffet's $75m purchase. Investing

    Stock Markets Rally, Apple stocks hit record high after Warren Buffet's $75m purchase. Investing


    Stock Markets Rally, Apple stocks hit record high after Warren Buffet's $75m purchase.

    Posted: 04 May 2018 11:49 AM PDT

    Seems a good day got better. News of Warren Buffet's purchase of an additional 75m shares in Apple stocks caused markets to rally and Apple stocks to hit record highs.

    https://finance.yahoo.com/news/apple-shares-hit-record-buffett-152434944.html

    (Sorry for mistake in title)

    submitted by /u/jsaranczak
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    Warren Buffett says Berkshire Hathaway has sold completely out of IBM. Amen!

    Posted: 04 May 2018 02:55 PM PDT

    U.S. Adds 164,000 Jobs in April; Unemployment Falls to 3.9%

    Posted: 04 May 2018 05:36 AM PDT

    Website or regularly-released report that summaries why a market behaved the way it did?

    Posted: 05 May 2018 02:11 AM PDT

    I'm looking for a credible website or report that summarizes what the prevailing drivers have been in the Canadian/US stock market (say on a monthly basis). Do any companies offer such concise reports?

    Thank you!

    submitted by /u/NiroXu
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    Was everyone talking about "the next dotcom crash" after the dotcom bubble the way that we talk about "the next 08 crash" now?

    Posted: 04 May 2018 06:34 PM PDT

    Do ETFs inadvertently manipulate markets, and if so can knowing how give investors leverage?

    Posted: 04 May 2018 08:56 PM PDT

    I'm a brand new subscriber here, but I've dabbled in /r/personalfinance for the past couple of years.

    One of the things I've learned about in /r/pf is ETFs, or index funds. I'm not going to claim 100% knowledge on how they work, but essentially from what I understand, a financial institution like Vanguard starts a fund designed to pattern itself after an index like the S&P 500, and instead of buying and selling each day based on market trends, as they get new cash from investors they allocate it in the specific ratios that mimic those indexes, and re-balance as necessary.

    So, that got me to thinking...

    As the trend shifts more and more towards ETFs for individual investing, these funds control more and more of the outstanding shares of many companies. Additionally, any stock which maintains a position in one or more large indexes essentially has a constant source of new buys as those funds add investor dollars, regardless of their company performance. The only thing they can do to lose that is jeopardize their placement in their index.

    Twenty years ago, this wasn't really such a big deal, but now these funds are growing exponentially and gain hundreds of billions of dollars each year in invested capital.

    So, let's say "Company X" is in the S&P 500 and a Tech company. One day, they announce their quarterly results and they miss projections causing their stock to drop as individuals and active funds sell positions to reduce damage. Then, what happens over the next few days? Well, IRAs and 401ks using VOO and other similar funds have the stock as an auto-buy to keep their ratios. They acquire the shares that the risk averse fund managers seek to discard, and when the supply is exhausted, they start getting their shares from other individuals and fund managers as their asking prices are met. They take what should be a bear, and get bullish on it due to the nature of the indexes and their need to consume.

    It's kind of like a small scale version of when Volkswagen became the highest valuation company a few years ago because their stocks were needed to fill an order but not available, so the price completely outgrew the performance of the company. These stocks aren't recession-proof but their constant demand keeps them inflated since performance and predictions aren't the only things creating demand.

    On the flip side, take a stock which is being purged from an index... If funds are dumping their positions in that stock because they no longer help pattern the index, that glut of supply is going to create a soft spot that outpaces whatever issue was causing the stock to get kicked out to begin with.

    If all of the above holds true, isn't there an advantage just in knowing which stocks are held by the most index funds (by volume)? It would seem like an individual investor would be inclined to buy into more widely held fund stocks knowing there is a set demand for them, and to abandon positions or short stocks which will be sold off as funds re-balance after an index change.

    Does this make sense? Is it fundamental knowledge for any investor already, or is there a flaw to my understanding which I'm missing? I feel like both are probably true. Watching the market hiccup these last couple of months makes me feel like there's something to it. Stocks drop, and then new money rushes in and they get back their losses. There are dips, and there was a "correction" but mostly the market feels like it's going to keep pushing forward even though it's already a year or two late for a bursting bubble according to many people. I feel like ETFs are the reason that bubble hasn't burst yet, and why when it does it won't burst as badly as expected for as long as it should.

    Thanks for your time and any discussion you add. I appreciate any criticisms and filling in any obvious blanks I missed along the way.

    submitted by /u/DevsMetsGmen
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    My stocks have dropped 15% in 10 days. What should I do?

    Posted: 04 May 2018 11:46 PM PDT

    Hi, I'm from Indonesia and new in stock investment. So about 10 days ago I decided to buy 3 stocks consisting of 3 of the 5 largest banks in Indonesia with nearly equal portions each.

    My reasoning was that:

    1. I wanted to be safe so let's buy large banks stocks. Historically, the 1-year return was very good, 30%-40% and had always grew YoY. There's no chance of these banks going bankrupt.

    2. I thought in May, the price would soar, so I decided to buy a lot because I thought now is a good entry point.

    3. At first I wanted to invest and not trade. So I thought I wouldn't mind the volatility but now it got scary.

    I decided to spend about 75% of my asset to these 3 stocks. Shockingly, once I bought, the price dropped ridiculously since the very same day until now. Many believe that it will continue to drop until about September. This is so frightening.

    My mistake was:

    1. I didn't set any cut loss point. I thought I was gonna go for long term and I didn't think it was gonna end up this bad anyway. My mentality was "I just lose money on paper, but one day the trend will reverse inevitably". I thought I was gonna go for long term, but apparently I need the money to make more money.

    2. I invested too much for the first time, instead of doing a trial first. I really thought It was gonna go up.

    Please help me how can I save these stocks? I'm thinking to average down once it reaches it's lowest point. I can't afford to lose this much as a beginner.

    Alternatively, should I stop thinking about these 3 stocks at the moment and use what's left for investing in good bullish stocks?

    Thanks so much in advance.

    EDIT: Here's the stocks that I bought.

    On 24/04 : https://www.bloomberg.com/quote/BNGA:IJ

    ON 25/04 : https://www.bloomberg.com/quote/BBNI:IJ, https://www.bloomberg.com/quote/BMRI:IJ

    submitted by /u/wannabemanwhore
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    What gives a low dividend stock intrinsic value?

    Posted: 04 May 2018 06:39 PM PDT

    I've been learning about and investing and participating in the market for a few months now, but have not really been able to wrap my mind around an answer to the question in the title.

    There have been some good explanations posted about how stock in a company represents ownership and the whole trading mechanisms built upon that. Based on my understanding and in very simple terms, companies can use profit either to pay dividends to stockholders, or expand the company. When most of the profits are dividends, the intrinsic value of the stock is very clear - the holder is receiving cash on a regular basis to do whatever they please with.

    However, it seems that most companies choose to put profits to work overwhelmingly for expansion, for obvious reasons. Now, as a holder of this stock, the value it has to me is only what someone else is willing to pay me for it. As far as I can tell (beyond having enough stock is actually influence decisions), this is the only value of the stock to any shareholder. So what forces this value to exist, what if people just universally decided to stop buying a perfectly good stock? The company, especially if controlled by just 1 or a few parties, could choose to never pay dividends and then I'm holding a stock I can't make any money off. I realize the company itself continues to get larger and worth more over time, but as an investor, how is that worth actually tied to me in any concrete way?

    Hope I got my question across clearly!

    submitted by /u/financewings
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    Is there anything that is a screaming buy to you right now? And why?

    Posted: 04 May 2018 08:36 AM PDT

    I'm currently thinking DIS, I'm only in with 3 shares but I'm still expecting good growth throughout the next few years

    submitted by /u/cpayne_10
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    S&P 500 is down 1.9% for the year

    Posted: 04 May 2018 06:54 AM PDT

    What's everyone's predictions for the end of 2018? I'm guessing about this: .5 to 3% loss overall. A lost year, despite major tax cuts.

    submitted by /u/ThisIsTheWater
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    Financial advisor opinions.

    Posted: 04 May 2018 05:26 PM PDT

    So I hired a FA at the beginning of feb (I know awesome timing) and I am/have been very happy with the services also set up a Roth IRA. But I just think I will go back to handling everything my self next year. Wanted others opinions. 95% of my money is now invested and it's really just a waiting game from here. Why pay 1% to somebody for them to wait with you? Opinions plz??

    submitted by /u/Heretolearn91
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    Curious about an idea. Could Warren Buffet's recent move be an insurance rather than an investment?

    Posted: 04 May 2018 03:14 PM PDT

    Just curious about an idea that came across my mind about the recent purchase by Warren Buffet.

    What if this 75mil share purchase wasn't an investment in future earnings, but an insurance on current and past purchases? With everyone speculating a downturn of the market, and the possibility of billions being lost if it happens, what if Buffet simply invested the $12bil to keep the market in a rally and secure his past investments?

    Him being "so sure" of the market that he'd invest that much would prevent any possible sell off by most investors and encourage those unsure to purchase more I'd think. Any thoughts on this?

    submitted by /u/jsaranczak
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    If you were given the chance to ask Warren Buffet a question, what would it be?

    Posted: 04 May 2018 09:53 PM PDT

    Walmart to Acquire majority stake in Flipkart.

    Posted: 04 May 2018 09:20 AM PDT

    73% for 14.6B Alphabet will contribute 3 Billion. (Don't know how that works exactly) and most the capital infusion with be invested in Grocery. Seems like a very interesting deal for Walmart.

    submitted by /u/Nooblevel1
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    Why is Google so intent on spitting in the face of Google Finance users?

    Posted: 04 May 2018 06:41 PM PDT

    The new update is horrendous. You can't search for many stocks easily, very hard to use on mobile, no custom portfolio's, etc.

    submitted by /u/Jeweled_Peasant
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    Tesla bear thesis goes mainstream. Late night talk show host Conan O'Brien jokes about Tesla's "financial woes" and Tesla's hype-based promises

    Posted: 04 May 2018 03:46 PM PDT

    https://www.youtube.com/watch?v=1mCPpWn2Dog&feature=youtu.be

    He talks about Tesla's 600 million losses and its inability to sell Model 3 after taking deposits 2 years back.

    I see a definite change in sentiment this week with late night talk shows hosts making fun of their losses, they running out of money by end of year and sarcastically accusing them of selling vaporware.

    submitted by /u/Old_Bit
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    Would do the bottom of the midcap category underperform the top of the small cap category by a significant margin?

    Posted: 04 May 2018 07:48 PM PDT

    I was looking into equally weighted ETFs when I came across this website. https://thecollegeinvestor.com/8610/equal-weighted-funds-outperform-benchmark-indexes/ The data shows that equal weight midcaps do not outperform cap weighted ones by a significant margin. Equal weighted small caps lost by a large margin. Yet data I see all over the internet shows that small caps typically outperform midcaps across long periods of time. It seems like there is a gap where the lowest midcaps underperform the top of the small caps? It this true? Why or why not? To me, it seems there is a disconnect so that investors so avoid the bottom midcaps!

    submitted by /u/MagFraggins
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    Question about buybacks and dividends

    Posted: 04 May 2018 04:00 PM PDT

    Sorry if this is a stupid question but if a company has a dividend and is buying back stock is it a safe bet that the dividend will increase as there are fewer shares to distribute the cash to or will the total amount of money spent on dividends decrease?

    submitted by /u/lawschoolbound
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    New to trading

    Posted: 04 May 2018 10:41 PM PDT

    I got money in last week and started trading this week. Got extremely lucky with Genprex GNPX stock as I bought at 5.9 and sold at 15.05 for a phenomenal score (also hit this morning with Blue Apron APRN and scored buying at 2.35 and selling at 2.48). I've been trading since, doing the minimal research that a new trader knows how to do (always looking for advice on what to read or watch to educate myself on becoming better) and have had successes and failures, but still money ahead. Targeting $30-$50/day gains right now as I trade prior to work, on my lunch hour, and take my last break of the day prior to market close. Not a lot of capital to invest big like ClayTrader (his YouTube videos blow me away buying 500 shares at a time for $30-$40/share), but taking it slow. Yeah yeah I'm a small fish, but we are not all sitting on those kinds of funds.

    What I'm really looking for is advice on software to help watch live/real time activity (much like the program that Clay runs in his videos). Anyone have good/tested apps or software they would recommend?

    Thanks in advance.

    submitted by /u/frankyfrankenfrank
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    How to view custom charts on fidelity?

    Posted: 04 May 2018 02:43 PM PDT

    I might be missing this but I'm not sure about how can someone view the balance chart for a custom range? The default chart shown on Summary tab only has options as YTD, 1 month and 1 year.

    submitted by /u/44ffb4fb
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    Is shorting Apple a bad idea?

    Posted: 04 May 2018 09:27 PM PDT

    Hear me out. AAPL is currently at it's all time high. I am confident that at some point it will dip 10% to $165. If I sell at that point, then I've earned 10% profit. And I'm guessing it will dip within a month, but I'm fine with holding it for years.

    However this would be my first time selling short, is there anything I need to know? (I have an E*Trade account)

    submitted by /u/84935
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    Bank deposit in a high inflation country (shower thought)

    Posted: 04 May 2018 10:46 AM PDT

    So I read that Argentina has 40% interest rates now. Why wouldn't I deposit there and have a massive capital gain?

    submitted by /u/aelaos1
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    Tesla hype is dying! Time to short tesla?

    Posted: 04 May 2018 08:48 PM PDT

    Apparently even the liberal media has decided to turn on tesla and Elon Musk. It's quite apparent that Musk hype is dying. Is it a good time to short Tesla?

    https://www.youtube.com/watch?v=1mCPpWn2Dog

    submitted by /u/Incelman
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    Could you recommend movie based on stocks?

    Posted: 04 May 2018 08:46 PM PDT

    I want to see succesful stock investor story. Is it exist?

    submitted by /u/zuelearth
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