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    Thursday, November 22, 2018

    How often does ethics come into your plays? Investing

    How often does ethics come into your plays? Investing


    How often does ethics come into your plays?

    Posted: 21 Nov 2018 05:22 PM PST

    Curious about the ethics that y'all have when investing. Will you invest in any industry that looks solid? Guns, war industry and the like?

    submitted by /u/fountaro
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    Danske Bank Laundromat Whistle-Blower Says Complex Web of Big Banks Involved, Deutsche Bank moved $150B through U.S. Unit

    Posted: 21 Nov 2018 05:32 AM PST

    https://www.bloomberg.com/news/articles/2018-11-19/danske-whistleblower-points-finger-at-deutsche-bank-in-testimony

    Deutsche Bank is being drawn deeper into the widening money-laundering scandal surrounding Danske Bank.

    Whistle-blower Howard Wilkinson, who stunned a parliamentary hearing with an assertion that he was offered hush money by the Danish lender, estimated that more than half the $230 billion in suspect funds handled by the bank was funneled through Deutsche Bank AG's U.S. unit. While he didn't identify the lender, a person familiar with the matter confirmed it was Deutsche Bank.

    https://www.bloomberg.com/news/articles/2018-11-21/laundromat-whistle-blower-testifies-in-brussels-danske-update

    Europe should take a long, hard look at the international correspondent banks and U.K.-based shell companies that greased the flow of dirty money in one of the biggest laundering scandals in history, according to the man who first brought the case to the light of day.

    Howard Wilkinson, a former Danske Bank A/S manager who blew the whistle on its multi-billion dollar laundromat, told lawmakers in Brussels that when it comes to shell companies, or limited liability partnerships, the U.K. is "worst of all." He said he was legally prevented from naming the other banks involved, but urged lawmakers to treat the Danske scandal as a case that goes well beyond its core in Estonia.

    This "wasn't just about Danske Bank in Estonia. Not even about Danske Bank in Denmark. There was a whole load of banks involved," he said. "The U.S. banks, including the U.S. subsidiary of a European Bank, were basically the last checks. Once the money got through them it was out, clean and into the global financial system."

    DB has fallen to all-time lows yesterday, trading at $9.23

    submitted by /u/J-LG
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    Last time everyone saw a crash coming?

    Posted: 21 Nov 2018 09:26 PM PST

    I find it funny how everyone, here and on tv, all of a sudden have become amazing market timers. They all know when we are crashing or that we have not bottomed yet because we have no seen real panic. Then there is the other consensus of a recession in 2020.

    When was the last time everyone saw a crash coming? Answer: never.

    So that more than anything else means it's not now or in 2020. It will be when almost nobody is calling for and one day we wake up to a catalyst that causes a massive move down.

    Then a couple years later everyone will again start becoming experts on timing next recession.

    submitted by /u/hokageace
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    Gap looking to close hundreds of stores at malls 'quickly and aggressively'

    Posted: 21 Nov 2018 10:56 AM PST

    I have overestimated my risk tolerance.

    Posted: 21 Nov 2018 08:23 AM PST

    34 years old, invested an unexpected windfall (about 5 times yearly income) all at once in May 2018. Was up 5 % in August, now down 8% in total. Looking at percentages, this is nothing to go crazy about. But looking at the actual numbers, I keep thinking 'I have lost a year's worth of savings', 'I'm losing money faster than I can save', etc.

    I haven't changed anything in my portfolio. Done what you're generally supposed to, picked a strategy and sticked with it. All I can say is, this goes not without serious stress, and you can't really anticipate your actual risk tolerance until you are forced to test it.

    I think this is generally not appreciated enough on this sub (and r/personalfinance likewise); knowing your personal risk tolerance, while being extremely important when setting your investment strategy, not only depends on your age and income situation, but also on the amount of money you have in relation to what you can save from your income. I am by all means in a healthy position financially, but I'll admit it; I felt less concerned about money before I got the windfall.

    EDIT; Wow, I really didn't expect such traction! Some very interesting comments, and definitely a good relief for my troubled mind. I realise some personal background info is missing which I'll give below, but perhaps I'll clarify my point first: besides age, general situation, living cost and anticipated expenses, simply the amount of investment can be (and sure is for me) a determinating factor for risk rolerance, which is not often talked about. If my portfolio consisted only of my personal savings, I would laugh at even a 15% decline. But if your stash suddenly includes your late uncle's life savings too, we may have more fear of fucking up because we can't just make up for the losses with savings in the same time frame. In other words, if you win the lottery, or if you look at the same amount after saving it up in a shit job for 10 years, would your strategy be the same? General wisdom tells us to be riskier with assets we don't really need, but our brain likely tells us the opposite..

    In my case, the portfolio is around 80/20 equities/bonds, well diversifed over growth/value and sectors through different funds (yes, some actively managed, but that's another discussion) and etfs. It is definitely not as well diversified geographically, which I might change at some point, but ironically that's what's limited my losses in the past weeks. I have no dependables, no debt, and won't need the money for at least 5 years. In other words, I'm confident my strategy fits my needs, but have yet to get to terms with temporary downturns..

    submitted by /u/gitwiz89
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    Honest Opinions, Is Cryptocurrencies Over?

    Posted: 21 Nov 2018 10:47 AM PST

    I haven't touch my bitcoin and cryptos since the beginning of the year, but I just checked and realized the hype has basically nearly died now, and it's almost gone from the news, compared to what it was last year. I was going to post in the crypto subreddit, but I figured everyone still there would be bias in support of it, so wanted to ask general investors what they think? Is crypto over? Do you guys think it will eventually bounce back? Long-term or short-term?

    submitted by /u/KryptoniteByKnight3
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    Morgan Stanley: The Worst is yet to come

    Posted: 21 Nov 2018 10:53 AM PST

    Not a gloom and doom guy but believe strongly that the market is cyclical and keeping interest rates at historical lows will just delay the inevitable and drive up inflation.

    https://www.investopedia.com/news/worst-yet-come-stocks-morgan-stanley/?utm_source=personalized&utm_campaign=topic-follow-widget&utm_term=15161484&utm_medium=email

    submitted by /u/DJwaynes
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    IKEA Group plans to cut 7,500 administrative jobs

    Posted: 21 Nov 2018 10:55 AM PST

    A way to protect against a drop in home prices?

    Posted: 22 Nov 2018 12:17 AM PST

    I own a home in US which has estimated market value of $600k, which I bought years back with $300k. I have a feeling that housing market is not going to look good next year, as well as the year after that, and I wouldn't be surprised if my current home value dips down back to high $400k or even low $400k.

    If this was stock, I could purchase put options with some premiums to protect myself from decrease in stock value & gain some income by selling call options at higher price. However, with housing prices, there is no concept of options or price protection/insurance.

    If I think housing market will be down overall 20~45% in two years, what is the best method to set some protections against that? Is there REIT that tracks residential housing prices & supports option tradings which I can actively trade? If no such method is available, selling my home is one option, but that comes with 6% fees as well as somewhat hassle to do the moving with my whole family.

    e.g. I am willing to pay $10k premiums to protect my housing price reduction from $600k to $450k.

    submitted by /u/sodapopper67
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    2018 so far is the first year that both a Total Stock Market and Total Bond Market Fund is down at the same time!

    Posted: 22 Nov 2018 01:29 AM PST

    Investment experts tell us that when the stock market is down, bond mutual funds go up. Generally.

    Some bond funds were down in 2008, during the worst stock market crash since the Great Depression. Though most were up for the year. During past stock market crashes and also in general corrections and bear markets we could always be assured that the money we had invested in bond funds would lower our total loss.

    For example, during the bear market of 2000-2003, the stock market had a drawdown of 44% but if you were 50% in total Bond and 50% total Stocks your drawdown was only 11.57%. Because a total Bond Market Fund went up 42.96% from January 1st 2000 and December 31st 2003, a terrible period for the stock market, you actually came out ahead in a 50-50 stock bond portfolio during the terrible stock bear market from 2000-2003.

    Looks like bond funds won't save us during the upcoming stock market crash. Agree?

    submitted by /u/KillingTime56
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    Lifetime ban from U.S travel for Canadian marijuana investor.

    Posted: 21 Nov 2018 09:55 AM PST

    £20,000 to invest, where/when should I be looking?

    Posted: 22 Nov 2018 03:54 AM PST

    Title, currently in a UK account and with Brexit looming unsure what to do. Any help would be much appreciated. Not looking for quick growth necessarily

    submitted by /u/Nungie
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    I am being offered this investment - too good to be true?

    Posted: 22 Nov 2018 03:06 AM PST

    Hi,
    I have been offered an investment opportunity through my colleague. Its a private investment club company incorporated in Sweden by his family member. Some of my colleagues already put in tens of thousands euros into it. In fact some have even taken out loans for this. I am staying away from it, because for me it sounds too good to be true but I would like to hear your input:

    • the Key Investor Information document mentions trading mostly FIAT currencies and some cryptocurrency
    • the (programmer) colleague told me that he coded a special trading algorithm for this company (owned by his family member) that does high frequency trading
    • access fee to be able to join the platform, 30€ or so + 2%/20% from investment/profit
    • they have several funds which are opened periodically and if you enter them, you cant exit them for a set period of time, else you would have to pay a 8% fee
    • look at the image here for the returns (its the return for the set amount of time), the average annualized return rate could be perhaps 80%!
    • the most shady thing - they have a graph of daily profits and the line is absolutely smooth, in fact there is not a single day with a loss, see the picture (the green line are the profits) and the profits are +- same every day. I have been told that its because they have been capped by the Swedish finance regulator - literally because they are "making too much profit" otherwise they would be making even bigger profits. Is that possible?
    • the colleague encourages more people to enter and always tells people that they should move their profits from one fund after it expires to a new fund in the dashboard
    • they insist that they know the founder etc. so I can trust this whole thing

    Could this be legit? Or is it a pyramid/ponzi scheme?

    submitted by /u/ponziornot
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    This is a bank I can get behind

    Posted: 22 Nov 2018 02:31 AM PST

    I've heard such great things about Ally bank and their rates and service. If I had any doubts about taking the plunge, this sealed the deal.

    Heartwarming to say the least. https://www.youtube.com/watch?v=C5VUCAxfzME&feature=youtu.be

    submitted by /u/willilikeit
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    value investing

    Posted: 21 Nov 2018 04:08 PM PST

    If someone was looking to move money into value investments would an actively managed ETF like this one be such a bad idea https://investor.vanguard.com/etf/profile/overview/VFVA/portfolio-holdings

    compared to a passive fund such as VTV? Would there be any advantage going with the factor fund over the passive in this situation? Does the lower expense ratio in VTV really make a difference in this situation?

    submitted by /u/Joe1234578964
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    Big Ups, Bigger Downs

    Posted: 22 Nov 2018 01:36 AM PST

    First time sharing my story on reddit...

    Just roughly two months ago or less, I had about 57k in my stock trading account, prior to that I had a week in early September where I made about 23k from playing options. What a thrill that was...it was crazy to see my options go up double digits every day, and sometimes even triple digits. I spent 5k and got 23k from it. Got hooked, it was crazy. My other stocks weren't doing bad either but nothing like what I was getting from options. YOY I was up 200% and most of it came in 1 week.

    Today, I have $0.85. Lost all of it playing options plus incredibly bad decisions with not cutting my losses with high beta stocks. Also got distracted from the birth of my son (too happy) to notice that my stocks were going down the crapper. Recently I started thinking about the money I could have had and just wondered what the hell I was thinking to let things get this bad. I guess I can't go back in time, but can't help but feel horrible about my decisions. Anyway, letting people know that this is a volatile market out there, and I gambled and lost. I guess I shouldn't be posting this in the "investing" thread... :S

    Hope to eventually get back up from where I fell and restart my account again.

    submitted by /u/ddot8000
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    Anyone else?..

    Posted: 22 Nov 2018 12:48 AM PST

    Anyone else have NOBODY to talk to about investing or stocks? Because your friends and family dont invest and you dont want them to start because either they are too dumb or afraid of the market? Yes there are those people.. just thought it would make a nice Thanksgiving dinner convo for my family but.. nobody invests in my family!.. stocks serve as a nice hobby for me but I can never talk about it.

    submitted by /u/relaxedallday
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    What exactly is a Broker Dealer for? I’m confused on how this all intertwines.

    Posted: 21 Nov 2018 06:18 PM PST

    I'm very confused about how this works. There's this company I have been interviewing with in order to gain entry financial experience. They are a Broker Dealer that handles security transactions for customers.

    Thing is, I'm confused about why exactly Broker Dealers do this. Why don't clients or companies simply buy their stocks through an online broker themselves? I have been playing around in the stock market for a few months and never had to go through anyone, other than the app, to make my transactions. If I were to get the position, I would be initiating and finalizing security purchases and things along those lines, so I really want to have a general understanding. Anything online I read about it makes no sense to me.

    What am I missing here?

    submitted by /u/Down_South_Donte
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    Why does Warren Buffett tell people not to check their stocks too often?

    Posted: 21 Nov 2018 09:25 AM PST

    Abu dhabi investors sues goldman sachs over alleged bribery scandal.

    Posted: 22 Nov 2018 12:00 AM PST

    Are stock prices likely to fall further after the Dec rate hike?

    Posted: 21 Nov 2018 11:36 PM PST

    Most sources are saying another rate hike in December is going to be guaranteed.

    submitted by /u/TridentClient
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    Grant's Interest Rate Observer

    Posted: 21 Nov 2018 06:14 PM PST

    Hello

    Does anyone know if its possible to split a Grant's Interest Rate Observer account?

    If it is possible, which I don't see why it wouldn't be, would anyone be interested in getting one with me?

    submitted by /u/blocklung
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    The impact of regional political instability on investment

    Posted: 21 Nov 2018 09:47 PM PST

    This article mentions countries like Venezuela when describing political instability. It's much more interesting if you swap in the USA instead.

    https://www.telegraph.co.uk/sponsored/finance/investments/climate-environment/11558100/impact-of-regional-political-instability-on-investments.html

    submitted by /u/alpacas_anonymous
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    Don't expect a crash

    Posted: 21 Nov 2018 02:10 PM PST

    I have seen so many posts/comments recently saying the market is obviously overvalued, we're 'due' for a crash, it is not a good time to buy the dip etc. I don't know where the crystal balls have come from!

    First of all, some of the greatest companies are already down 20-40%, expecting another 20-40% seems overzealous. Nobody knows how things will turn out - we could make a China deal, we could never cut a deal. Interest rates might be raised 5 times in 2019 they might not. Google or Apple or Amazon or someone else could roll out paradigm shifting technology in 3 years that fundamentally changes productivity, or they might not.

    I bought some AMZN yesterday because it was 25% of highs. I'm going to buy all my Christmas presents on AMZN like I always do, watch Netflix tonight which basically runs on AWS, go to work next week and run models on AWS EC2 instances. AMZN just rolled out plans for new HQs obviously they feel good about the future. My plan if we do continue dropping is DCAing a S&P500 index fund.

    Hubris is not an asset here.

    submitted by /u/m4329b
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