• Breaking News

    Tuesday, October 30, 2018

    Home Unlabelled It's moronic Monday, your chance to ask any of those lingering questions without fear of harassment. Investing

    It's moronic Monday, your chance to ask any of those lingering questions without fear of harassment. Investing

    October 30, 2018

    It's moronic Monday, your chance to ask any of those lingering questions without fear of harassment. Investing

    It's moronic Monday, your chance to ask any of those lingering questions without fear of harassment.

    Posted: 29 Oct 2018 05:04 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
    [link] [comments]

    US reportedly planning tariffs on remaining $257 billion in Chinese goods if Trump-Xi talks fail

    Posted: 29 Oct 2018 11:26 AM PDT

    The United States is preparing new tariffs against all remaining Chinese imports if trade talks between Presidents Donald Trump and Xi Jinping fail to reconcile the ongoing trade dispute, according to Bloomberg News.

    The U.S. stock market fell immediately after the report, with shares of global aerospace and aircraft maker Boeing falling more than 5 percent. The Dow Jones Industrial Average traded more than 50 points lower, erasing a 350-point gain earlier in the session; the S&P 500 hovered at flatline.

    The White House did not immediately respond to CNBC's request for comment.

    https://www.cnbc.com/2018/10/29/us-plans-new-257-billion-china-tariff-wave-if-trump-xi-trade-talks-fail.html

    submitted by /u/NineteenEighty9
    [link] [comments]

    October 2018 is the fourth worst month for investors in the 21st Century!

    Posted: 29 Oct 2018 07:49 AM PDT

    The 10% correction, that has taken place in October 2018, is the forth largest stock market monthly drop since the year 2000. Here are the other monthly drops since 2000 that were over 10%:

    September 2002-- 10.10% loss (During a dot com recession of the early 2000s)

    October 2008- 17.48% loss (The month the investment banks went broke in the GREAT RECESSION)

    February 2009- 10.53% loss (During the GREAT RECESSION)

    This huge drop this month is not a simple stock market correction because it happened in such a short period of time and in a good economy. It is also very rare that the bond market drops too during a stock market correction like this month.

    submitted by /u/KillingTime56
    [link] [comments]

    This isn't a recession

    Posted: 29 Oct 2018 05:38 PM PDT

    I just want to make something clear. The definition of a recession includes:

    The technical indicator of a recession is two consecutive quarters of negative economic growth as measured by a country's gross domestic product (GDP)

    https://www.investopedia.com/terms/r/recession.asp

    The GDP of the US and Canada (I'm just gonna focus on North America) has been on fire for the last year showing no signs of weakness. This is why interest rates are moving up, and why the Fed and BoC is so hawkish.

    But GDP doesn't necessarily relate directly to the stock markets. What we're seeing is a crash (correction.. pick your term) and that's all we can say. To somehow imply we're entering a recession when most (not all) high level economic indicators are fairly positive is asinine at best, and destructive at worst.

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

    I Read The News So You Don't Have To - Market News (Oct. 30, 2018)

    Posted: 30 Oct 2018 04:21 AM PDT

    UNITED STATES

    • US core inflation met the feds expectations at 2.0%
    • Consumer spending is 5% higher this time around compared to last year
      • Meanwhile income growth fell shy of expectations by about half
    • The Dallas Fed reported very strong activity in their regional manufacturing report
      • Labor shortages are easing
      • Costs of inputs are still rising, but the pace is slowing
      • Delivery bottlenecks are easing

    OTHER

    • The S&P 500 closed yesterday hovering just above correction territory
      • Close to half of US stocks are in a bear market
      • In terms of market value loss - global stocks are having their worst run in a decade
    • As earnings season wraps up and the buyback blackout period comes to an end, institutional investors and share buybacks may buoy the market yet again
    • Energy shares shit the bed yesterday
      • Meanwhile US oil production continues to climb higher
      • If US shale output doesn't increase, global supply will not be able to meet demands (I posted a deep dive into US Shale last week, browse my history)
    • Coffee and Sugar futures are falling as the Brazilian real falls following the election of right wing populist as president of Brazil on Sunday
    • Mexican markets shit the bed after their president-elect held a vote to cancel a $13bn partially built airpot in Mexico City
    • New building approvals are falling rapidly in Australia (Actual -14.1%| Expected -9.0%)
    • South Korean business confidence has evaporated

    CHINA

    • The yuan remains at a ten year low
    • Peer-to-Peer lending is slowing fast
    submitted by /u/ogordained
    [link] [comments]

    GE Cuts Dividend to One Penny Per Share

    Posted: 30 Oct 2018 04:41 AM PDT

    Welp, we all saw that one coming.

    https://www.cnn.com/2018/10/30/investing/ge-dividend-cut-earnings-culp/index.html

    "GE revealed on Tuesday worse-than-expected results and a $22 billion accounting writedown for its beleaguered power division. Culp plans to split up the power division to accelerate a turnaround. In a bid to fix GE's debt-riddled balance sheet, Culp announced the company will cut its quarterly dividend from 12 cents a share starting in 2019. By paying just a token dividend, GE (GE) will save about $3.9 billion of cash per year. Analysts had been anticipating a potential dividend cut, though not one of this magnitude."

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

    Dow drops, led by Boeing, in 600-point decline from the highs of the day

    Posted: 29 Oct 2018 12:09 PM PDT

    Any beginners that are looking for a good source on getting started, or anyone who isn't an expert, may want to start here.

    Posted: 29 Oct 2018 07:14 PM PDT

    Fidelity has a lot of good reading material. You don't even have to have an account. Just download the app, hit the tab in the top left corner, select "learning center" and there is a plethora of information that's well organized and designed. This is like a micro-college course in itself. I haven't checked if it's the same on their website, but I wouldn't see why not.

    *I do not work for Fidelity, I just discovered this information and thought I'd spread the word. I'm sure other brokerages have similar material.

    These topics are set up in "exercises", broken down into modules, and reminds me of the template used in something like an intro to economics class, but specific to investing. I learn best by reading, most videos don't really do it for me. If you learn like me, this may be for you. I haven't gotten through all of them (barely got through the first few), but they seem to cover pretty much every beginner question there is. These are the topics:

    • Are You Ready to Invest

    • How to Start Investing

    • Where to Start Investing

    • What is a Mutual Fund

    • What is an ETF

    • Comparing Mutual Funds & ETFs

    • Evaluating a Stock

    • Building a Portfolio

    • Sector Investing

    • Intro to Technical Analysis

    • Common Trading Pitfalls

    • Intro to Fundamental Analysis

    • 5 Step Stock Trading Strategy

    • Managing a Trade

    • How Technical Indicators Work

    • Common Pitfalls for Technical Indicators

    • An Intro to Options

    • Breaking Down a Call Option

    • Breaking Down a Put Option

    • 5 Most Common ETFs Mistakes

    • Margin Trading: The Foundation

    • 6 Options Trading Pitfalls to Avoid

    If you're like me and don't know what you don't know, this is a good start.

    Edit: You do need an account with them, but I don't think you have to have any funds or link any bank accounts.

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

    Oil prices fall with signs of rising global supply. Saudi Arabia pledges to 'to produce as much as possible' and Russia indicates it’ll provide enough to meet demand when Iran sanctions hit Nov 4. WTI crude at $66.78, Brent crude at $76.78 per bbl

    Posted: 29 Oct 2018 06:44 PM PDT

    I Read The News So You Don't Have To - Market News (October 29, 2018)

    Posted: 29 Oct 2018 04:19 AM PDT

    America

    • Q3 GDP growth was stronger than expected (Actual 3.5% | Expected 3.3%)
      • Government spending, largely on defense purchases, was a large part of this
      • Consumer spending was especially strong (Actual 4.0% | Expected 3.3%)
        • Spending on apparel increased the most since 2005
      • Business investment slowed
    • Business's are borrowing from their future growth by accelerating their build up of inventories ahead of tariffs
    • Consumer sentiment is holding strong at multi year highs

    Other

    • Canada's stock market hit its lowest level since 2016
      • Household credit growth has slowed to pace not seen since 1983
    • Industrial production in Singapore has slowed to a stop
    • With low inventories, Iron ore prices hit an 8 month high

    China

    • The yuan remains at a multi year low
    • Industrial profits have dropped sharply
    • Growth in e-commerce is slowing
    submitted by /u/ogordained
    [link] [comments]

    Buffett's Berkshire Hathaway breaks from tradition with two fintech investments

    Posted: 29 Oct 2018 09:41 AM PDT

    Renault SA undervalued?

    Posted: 30 Oct 2018 02:12 AM PDT

    I looked at Renault SA, the share price is 66.35 Euro, whilst EPS is 17.44, Annual Div is 3.55.

    Doesn't this make the stock massively undervalued?! The P/E is 3.76 and Price/Book is 0.56. I can't even see any scandals or giant obligations, what am I missing in the markets valuation?

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

    Tuesday Oct 30th Facebook reports and it will likely disappoint. Be careful with tech

    Posted: 29 Oct 2018 03:22 PM PDT

    After the bell Facebook reports earnings and IMO it's very likely they will not have good guidance going forward.

    This is a FAANG stock, and FB can bring a whole sector down. It can make Wednesday a really ugly morning.

    Thoughts? Buy back in Thursday?

    submitted by /u/Rellim03
    [link] [comments]

    Market News - 30/10/18

    Posted: 30 Oct 2018 04:52 AM PDT

    Equities - SHCOMP, N225, FTSE all mildly rebounded (+1.45%, +1%, +0.25%), though market sentiment is generally bearish - China's security regulatory commission is prepared to commit state funds to support market - US restricts Chinese semiconductor firm Fujian Jinhua from purchasing from US firms. Positive for DRAM competitors?

    FICC - DXY highest since August at 96.91, key resistance at 97. Possible indication of risk-off sentiment? Though JPY under pressure - CNY weakest in 10 years, USDCNY 6.9628. Speculation on whether China well tolerate slide beyond 7; though I think it's unlikely given current tensions - Copper -1% on back of increasing trade tensions

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

    Ad-renaline rush: Amazon’s ambitious drive into digital-advertising (The Economist article)

    Posted: 29 Oct 2018 10:25 AM PDT

    Just thought I would share a recent article in The Economist for those interested.

    Link: https://www.economist.com/business/2018/10/27/amazons-ambitious-drive-into-digital-advertising

    Ad-renaline rush
    Amazon's ambitious drive into digital-advertising
    Building a big ad business will help the firm to keep expanding

    Print edition | Business Oct 27th 2018 | SAN FRANCISCO

    An award-winning series, "The Marvellous Mrs Maisel", follows the fortunes of a woman in the 1950s who undergoes an unlikely transformation from a typical housewife of the day into a talented standup comedian. It is produced by Amazon and can be viewed on Prime Video, the e-commerce giant's on-demand service. Since its birth in 1994, Amazon has starred in several dramatic metamorphoses of its own. It has pushed beyond retailing into fields as varied as electronic books, private-label goods and cloud computing, as well as online video. Now it is intent on becoming a force in digital advertising.

    Amazon has a long way to go before it catches up with the giants of the industry. It has 4% of an American market worth $111bn, compared with Google's 37% and Facebook's 21% (see chart). But Amazon started experimenting with ads only six years ago, and its young business is growing fast in a rapidly expanding market. By the end of the year it will overtake Microsoft, a software giant, and Verizon, a big telecoms firm, to rank third in America, according to eMarketer, a research firm.

    Despite trailing far behind the leaders, Amazon's ads are having an outsize effect on the company itself. Its revenues from ad sales worldwide in 2018 could hit $8bn, contributing perhaps $3bn in operating profit—over a quarter of the total. Michael Olson of Piper Jaffray, a brokerage, says that by 2021, it is "highly likely" that profits from Amazon's ad business will exceed those from its lucrative cloud-computing unit, Amazon Web Services. Amazon loses money on its core e-commerce business, but can use the fat profits from advertising in the same way as it has used the cash from cloud computing—to push into new businesses and countries, says Brian Nowak of Morgan Stanley, an investment bank.

    https://www.economist.com/sites/default/files/imagecache/640-width/images/print-edition/20181027_WBC623.png

    Closing the gap between Facebook and Google will be difficult but not impossible. Like those two, Amazon has a rich pool of data about users which it can use to aim its ads, including information about past purchases, which product reviews consumers have read, where they are and their online browsing behaviour. Amazon has a unique advantage, because consumers who are using the site usually intend to buy things right away. Some 56% of Americans start the search for any product on Amazon.

    That will help it to grow as brands shift marketing dollars away from physical retailers. "Trade spending"—payments to retailers by makers of soap, mouthwash, canned food and other household basics for prime shelf space and promotional offers—adds up to around $200bn in America alone. Amazon is especially attractive to makers of such consumer packaged goods. Brand loyalty is weak and buyers are more likely to be swayed by prominent ads.

    Amazon's ads will not appeal to all businesses. Firms that do not sell goods through the site, such as fashion brands, carmakers and travel companies, will not advertise there. But online video is one potential opportunity to attract more business. Amazon allows video ads on Twitch, its online-gaming site, but it could also put adverts onto Amazon Prime to win some of the advertising spending aimed at conventional television channels.

    Allowing advertising on Alexa, its voice-assistant, and Echo, its smart speakers, is another possibility. In the future, when people ask questions of Alexa or order something by voice, Amazon could incorporate advertising. Earlier this year it was reported that Amazon was in discussions with Procter & Gamble and Clorox about voice ads for their wares.

    As it chases growth, Amazon will face three obstacles. First, it must consider whether its advertising will put off customers. Voice ads butting in to conversations, even ones with inanimate objects such as smart speakers, are potentially irritating. And subscribers who have paid to watch online videos are unlikely to enjoy sitting through commercial breaks. Amazon must take care to avoid alienating the people it spends so much trying to please.

    Second, Amazon will have to balance its relationship with vendors and address potential conflicts of interest. Advertisers can buy space at the top of product searches or pay to sponsor products. In addition, some search results are labelled "Amazon's choice", which favour important vendors and advertisers, says Matti Littunen of Enders Analysis, a research firm. (Amazon does not disclose how products get this designation.) And as Amazon becomes a manufacturer and seller of more of its own private-label items, it will have to decide how much prominence to give paying advertisers and how much to its own goods.

    According to research by rbc Capital, an investment bank, of 100 product searches on Amazon's app, in only three instances was the top ranking result not a sponsored ad. Those were for three Amazon devices: two smart speakers and a Kindle e-reader. Makers of competing products will be unhappy if it appears that Amazon is favouring its own products on its site or discouraging competition by driving up the cost of ad space on products that directly challenge its private-label goods.

    Amazon will also have to contend with a more active regulatory environment. In September the European Commission announced a probe into its use of data and whether it could use information about third-party retailers on its site, which are also competitors, to boost its profits. As the inquiry progresses, advertising practices could become an area of interest.

    Amazon has so far avoided a privacy backlash from customers. "Facebook uses your personal life and friend graph to target ads. Amazon has a more clearly commercial relationship" with users, says Jonathan Nelson, the head of digital at Omnicom, a large advertising agency. But as its ad business grows, so will scrutiny. Amazon gives users little control over how much information they share for advertising purposes, which could violate new data-collection and privacy rules in Europe, says Mr Littunen.

    As it gathers more information about people in the physical world, including their spending habits at Whole Foods, the grocer it bought last year for $13.7bn, its dossier of data on consumers will become larger and more personal. That will propel Amazon's rise. Just as Mrs Maisel discovers she has a new talent for cracking jokes, Amazon has a chance to thrive in a new venture. Before long it could make the digital-ad duopoly a three-way affair.

    This article appeared in the Business section of the print edition under the headline "Amazon's ad-renaline rush"

    submitted by /u/eu1e
    [link] [comments]

    Whats the best stock that you hold in your portfolio?

    Posted: 29 Oct 2018 04:31 PM PDT

    Doubled my position in Enbridge recently after carefully going through the financials. Rockstar balance sheet, wide economic moat and the company has 50% upside based on current valuation.

    Whats the best stock that you hold in your portfolio?

    Edit: Best stock in terms of valuation and future potential.

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

    IBM/Redhat - RHT @ 174, proposed purchase 190. Why is there a 10% difference in share price and purchase price

    Posted: 29 Oct 2018 07:20 AM PDT

    Why is there such a difference in the current share price and IBM's purchase price? Is the purchase price not set in stone? Is there risk of the deal not going through beyond normal?

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

    Set It and Forget It Investing? Looking at Vanguard Funds

    Posted: 29 Oct 2018 04:52 PM PDT

    I've paid off my mortgage and want to get those unencumbered funds to work for me with a long term (15 years+) horizon goal of purchasing a retirement home.

    Outside of my existing traditional IRA (funded from old 401k rollovers and annual contributions, about $100k, currently in an S&P index fund) and some odd DRIP stock I don't have a lot of experience with investing, though I consider myself pretty well read. I would really like to set up investments where I contribute by direct deposit and the investments are balanced and managed appropriately without my active input. I know the market has ups and downs and I don't get myself worried about what is happening in my IRA today, or even this year.

    I'm looking hard at Vanguard Balanced Index Funds (VBIAX or VBINX). I'm also looking to transfer my existing traditional IRA to Vanguard, looking at their Vanguard Target Retirement 2040 Fund (VFORX) or 2045 (VTIVX) for that; again, same idea that I really don't want to fuss with rebalancing. This IRA will supplement a state pension and I hope not to even need to touch this until I am 70 1/2, in 2043.

    What exactly is the difference between the Admiral's and Investor's Shares (other than the upfront investment needed, which really isn't an issue)? Are these good investments for this hands-off approach, or are there smarter investment vehicles for this strategy?

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

    Buy SPY at -5%, -10%, -15%, -20% - thoughts?

    Posted: 29 Oct 2018 01:00 PM PDT

    What about a strategy of buying the SPY or similar ETF when market hits -5, -10, -15, -20% from its high? And buy in increasing amounts i.e. 500 at -5%, 1000 at -10%, etc.

    I feel like committing to this strategy overtime could do wonders.

    If market starts hitting -25, -30, etc. well then sure buying even more is good if you can stomach it!!!

    Thoughts?

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

    How can I short the inevitable subprime corporate debt crisis?

    Posted: 29 Oct 2018 10:42 PM PDT

    Thoughts on $EBAY long term?

    Posted: 29 Oct 2018 07:49 PM PDT

    Since earnings is coming up I figured I'd throw out some of my questions about holding. I expect them to beat expectations for Q3 but I have my doubts and was wondering if it'd be a good idea for me to sell before and buy back after earnings is released.

    My concern is that on the off chance they miss expectations they will tank, and if they beat earnings I will just wait a week to let it die down and buy back in. I'm just thinking that good news will result in a minor jump so buying in will be slightly more expensive but bad news will be catastrophic and will result in a better buying opportunity.

    Any advice will be appreciated as I am very novice in my trading experience. Thank you in advance

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

    I'd like to get into algorithmic trading, where do I start?

    Posted: 30 Oct 2018 01:24 AM PDT

    Hi guys,

    I'm a mathematician and for my dissertation I studied the Ito stochastic integral (the underlying mathematics that allows black-scholes-merton to be solved / make sense) so I believe I have the right background for this.

    At this point I'm just trying to learn as much as possible about algorithmic trading so that I might implement it in the future, can anybody recommend resources or platforms to learn more?

    Thank you very much

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

    Looking for a good example of a investment Philosophy by companies

    Posted: 30 Oct 2018 12:59 AM PDT

    • Do you have an example of a great investment philosophy?
    • Do you know any company that market their investment philosophy pretty good?
    • Do you believe in investment philosophy?

    Thanks for your replies!

    submitted by /u/baltsar777
    [link] [comments]

    Advice on laddering CD's? General tips?

    Posted: 30 Oct 2018 12:57 AM PDT

    Why did you get into investing?

    Posted: 29 Oct 2018 11:59 PM PDT
    Read more
    at

    No comments:

    Post a Comment