• Breaking News

    Saturday, October 27, 2018

    S&P 500 drops into correction territory, down 10% from its September record; Dow falls 450 points Investing

    S&P 500 drops into correction territory, down 10% from its September record; Dow falls 450 points Investing


    S&P 500 drops into correction territory, down 10% from its September record; Dow falls 450 points

    Posted: 26 Oct 2018 07:58 AM PDT

    I Read The News So You Don't Have To - Market News (Oct. 26, 2018)

    Posted: 26 Oct 2018 04:31 AM PDT

    United States

    • Durable Goods Orders report was positive, up 0.8%
      • Largely due to defense orders
      • Transport orders fell
      • Capital goods orders -machinery and whatnot- fell for the second straight month
    • The GDP report comes out today at 8:30 - growth is expected at 3.5%
    • The Kansas City Fed is showing business spending falling fast
    • Americans collecting unemployment hit its lowest level in decades

    Other

    • Alphabet fell about 5% after the company released revenue figures that were slightly below analysts' estimates.
    • Amazon reported record quarterly profits of about $2.9bn.
      • But its shares fell 9% in after-hours trading after the company warned that sales during the coming Christmas period might be lower than expected.
    • The price of Copper, Aluminum, and Nickel has fallen fast, bringing down the share price of mining firms - you can thank the rise of the USD for that
    • Trade and manufacturing confidence is crumbling in Germany, construction sentiment looks bright though
    • South Korean stocks continued their bearish descent
    • Argentina's consumer sentiment has been crushed
      • The executive board of the IMF meets in Washington, DC today to approve Argentina's revised $57bn credit line—the largest in the fund's history.
    • Mexico's retail sales beat expectations (Actual: 3.9% | Expected: 3.7%)
    • Shares of homebuilders may have finally bottomed out - look at Bloomberg's American Homebuilder Index

    China

    • Nothing new here as the yuan continues to fall, I feel like I write this everyday
    • Inflows into Chinese bonds are slowing dramatically
    submitted by /u/ogordained
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    Downvoting the bears will not prevent a bear market

    Posted: 27 Oct 2018 03:10 AM PDT

    I have seen every bearish post or comment downvoted in the last few days. That doesn't mean the bear market won't come, but it means you won't be as prepared or educated on why a bear market may come.

    submitted by /u/atherises
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    Chinese Government will step in, by using its reserves to stop Yuan slide to an important psychological level of $1=7 in order to prevent Currency Speculation, Capital Outflow from China. In the U.S. 1st read on Q3 GDP is up 3.5% vs 3.4% expected

    Posted: 26 Oct 2018 05:33 AM PDT

    FBI now investigating if TSLA has mislead investors regarding production figures since early 2017

    Posted: 26 Oct 2018 11:02 AM PDT

    Question - are digital payments a threat or opportunity for Visa/Mastercard?

    Posted: 27 Oct 2018 01:30 AM PDT

    Amazon shares crash a record 10%

    Posted: 26 Oct 2018 07:03 AM PDT

    Microsoft overtakes Amazon as second most valuable U.S. company

    Posted: 26 Oct 2018 10:20 AM PDT

    Buffett Indicator: Where Are We with Market Valuations?

    Posted: 26 Oct 2018 07:44 PM PDT

    https://www.gurufocus.com/stock-market-valuations.php

    As of 2018-10-26 The Stock Market is Significantly Overvalued. Based on historical ratio of total market cap over GDP (currently at 134.1%), it is likely to return -3.1% a year from this level of valuation, including dividends.

    submitted by /u/chillingniples
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    Dow dives 300 points, S&P 500 dips into correction levels in another wild day on Wall Street

    Posted: 26 Oct 2018 01:05 PM PDT

    GDP results in: U.S. Economy Grew at 3.5% Rate in Third Quarter

    Posted: 26 Oct 2018 05:46 AM PDT

    Dow down 400 points, tech selloff (again...)

    Posted: 26 Oct 2018 07:13 AM PDT

    Is the U.S. stock selloff over or is there a lot more to come?

    Posted: 27 Oct 2018 12:35 AM PDT

    Closing on a house next few days

    Posted: 27 Oct 2018 12:20 AM PDT

    US, DFW, Tx. Possibly closing on a house in the Dallas Fort Worth area next week, should I hold off and wait any further market corrections? I know little about its impacts on local real estate :/

    submitted by /u/Throwawaythegnome
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    Fortnite Maker Gets $1.25 Billion From New Investor Group

    Posted: 26 Oct 2018 03:09 PM PDT

    Global stocks are set for their worst week in more than five years

    Posted: 26 Oct 2018 10:06 AM PDT

    Poll: Did you know how the market cap of a company is determined before reading this post?

    Posted: 27 Oct 2018 03:01 AM PDT

    https://www.strawpoll.me/16723961

    The market cap of a company is the sum of all future discounted cash flows + cash - debt

    Edit: My main point for novice's is that the stock price is not and arbitrary figure

    submitted by /u/EmployerOfTheMonth
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    Here's a new one for you all.

    Posted: 27 Oct 2018 02:48 AM PDT

    Zimbabwe dollars went from being worth firewood to up to £100 a pop on ebay for the highest denomination (100 trillion). Venezuelans bolivars are projected to reach 1,000,000% inflation in 2018 so a relatively small amount of cash you could buy into denominations hoping there the highest however it's still risk free as the lower denominations of notes still sell for significantly more then cost assuming they have low denomination markers and are un-circulated.

    submitted by /u/Lightninglabs
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    A good investment approach now that we are in correction territory.

    Posted: 26 Oct 2018 05:52 PM PDT

    The first thing to really know is not to panic and sell. Personally I have set a goal to cut down on my spending so I can increase the amount of cash I have each that can go towards investing. I own shares in only seven large cap companies, and I'm planning to just increase my position in most companies each month. A lot of people change strategy and start putting more in different sectors such as utilities and consumer defensive. I feel like you can get burned with this strategy by missing out on the upside when things turn around, and for all we know things could turn around starting Monday.

    Right now the market sentiment is very bearish, and it's really easy to do something foolish in these times. It's a bear markets around the corner it's not out of the question to see at 5 to 10% drop in one day and on rare occasions even more. Its important to be mentally prepared for a recession just in case, and the best way to do that is by viewing such an event as a buying opportunity.

    submitted by /u/Encouragedissent
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    New to investments, underaged

    Posted: 27 Oct 2018 02:35 AM PDT

    Hello, My friend suggested stocks and investments because i dont do anything with my money. I dont have crazy amounts of money but would still wanna try to invest the money i do have.

    What are your best advice to a newbie like me?

    Im not sure how big of a problem this is, but i am underaged. Do i need my parents to sign anything or is it just to start out?

    Thanks alot!

    submitted by /u/poodieluverer
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    Thoughts on BUD?

    Posted: 27 Oct 2018 02:35 AM PDT

    They recently cut the div and the share price has been getting bashed recently. We all know they have a masterbrand in the beer industry but consumer trends are changing which could spell trouble. Good value play to buy or going lower? Thoughts?

    submitted by /u/Throwawayacct449393
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    $AMD is down 40% since the beginning of October, now below bear analysts estimate of $18.

    Posted: 26 Oct 2018 10:15 AM PDT

    While I understand the entire stock market has been tanking, it seem $AMD has 'corrected' the hardest. With Earnings report coming out Sunday, What is your out look on the immediate future of AMD?

    submitted by /u/squeeeeenis
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    Understanding the SEMI cycle.MU, NVDA, AMD, TXN, $SOX

    Posted: 26 Oct 2018 12:08 PM PDT

    I though I would write a short post for some of the youngins here who have never experienced a real correction or know what a market cycle is.

    1) The overall stock market is in correction mode now. That is pretty clear. How far it goes I dont know. Is this the start of a bear market i dont know either but I do know that if you look at times when the S&P 500 stays under the 200 day moving average, you need to be careful

    2) Specifically regarding semiconductor stocks, they are cyclical stocks and you have to know the rules to play by. When I see people saying buy MU bc its cheap I just laugh. Its always cheap at the top, thats how cyclical stocks work. While I do think MU is actually cheap based on their assets and LT potiential, looking at current or even foretasted earnings is not the right way. you need to understand that with cyclical stocks, you buy when things go from bad to good and you sell when things go from good to bad. For months there have been signs that the semi cycle is topping out. Suppliers like LAM and AMAT topped out a while ago as demand is slowing. And then you had KLAC at a conference a few weeks ago talking about order growth slowing and then TXN finally confirmed that we are in a semi slowdown. Why? Well basically the market was so tight the past 12 months that everyone double ordered, and the Book/Bill for the entire industry was around 2. Clearly there actually wasnt the amount of demand but suppliers had run out of stock so ppl want to make sure they got their orders. Now we also have a slowdown from China (some ppl front ran the tarrifs ) and autos are slowing big time. Look BWA and all the auto parts companies. You also had huge hyper scaler data center build-outs the past 2 years, which messed up the market. DRAM prices were rising for over a year. Thats not normal, prices usually always go down. Why bc MSFT , GOOGL and others wanted to catch up to AWS. They will keep spending but I would expect the market to be more prepared now.

    The good thing about the semi cycle nowadays is that there is a lot more demand than just PC's or smartphones. So eventually it will come back. And IMO we are probably half way through it already. Asian semi's and suppliers got the message a long time ago. Look to them for the first signs of a bottom.

    Happy trading

    submitted by /u/abeecrombie
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    Time to start doing some work

    Posted: 26 Oct 2018 04:05 PM PDT

    Many of my friends are financial advisors so I don't mean this in any disrespectful way even as the title may suggest but it feels like the era of easy investment advising is over. You can't just buy and hold the market and will have to truly possess a skill for managing investments. No more spending 100% of your time gathering assets like you could in the last 10 years.

    It just feels like stockbrokers in the late 90's or real estate agents in 2006, there's too many of them. I think things will get hard for advisors and predict there will be much fewer of them in a few years which is fantastic for the good ones.

    submitted by /u/DonnieBrascoTrading
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