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    Monday, November 26, 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. Investing


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

    Posted: 26 Nov 2018 04:04 AM PST

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

    Posted: 26 Nov 2018 04:39 AM PST

    UNITED STATES

    • The InSight spacecraft lands on Mars today, you can watch live between 2:00 & 3:30 pm - hopefully, the markets go to the moon
    • Black Friday raked in a record $6.22bn in sales
    • New Housing Starts (Expected: 1,228 | Actual: 1,228) and Existing Home Sales (Expected: 5.20 | Actual 5.22) fell in line with expectations

    OTHER

    • Theresa May and EU leaders agreed on Brexit withdrawal terms yesterday
      • Now comes the difficult task of persuading the British Parliament to approve the deal
    • Saudi Arabia, The United Arab Emirates, and Houthi rebels are planning peace talks for next month to end the war in Yemen
    • Low oil prices continue to fuel a recovery in the Indian rupee
    • Russian warships fired on three Ukrainian ships in the Black Sea, today Ukraine will decide whether to declare martial law in response
    • Real wage growth in Russia didn't meet expectations (Expected 7.0% | Actual 4.4%)
      • Cargo activity (Expected 2.0% | Actual -0.1%) and retail sales (Expected 2.4% | Actual 1.9%) also slipped

    CHINA

    submitted by /u/ogordained
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    Why did the sentiment on this sub change so quickly?

    Posted: 25 Nov 2018 01:45 PM PST

    Just about three months ago, whenever people asked for advice on what to do in a shaky market, the most upvoted posts were "Hold. You can't time the market."

    But I noticed that recently, that has changed. Now you have threads like this

    https://www.reddit.com/r/investing/comments/a004l2/serious_smart_investors_of_rinvesting_what_are/

    Where posts that say they are holding their investments in cash because of all the bad signs are upvoted to the top.

    What happened to all the discpline /r/investing talked about? They preached about not selling and holding through downturns when the market was doing well. Now that the market is no longer bullish, everyone's selling because they can see a crash coming?

    submitted by /u/BuySPY
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    How does everyone here do their research on a stock? What's your process?

    Posted: 25 Nov 2018 05:17 AM PST

    So I'm 20 and studying finance and international business in college. I have a fair amount of knowledge about the market, enough to understand what is going on but not enough to make nuanced investments with my own money. I've read a few books, browse WSJ/Bloomberg daily, read investopedia and all.

    My dad has given me $50,000 to invest or spend as I wish (he's very wealthy and encourages these sort of things so i get some experience). I'm definitely going to invest it but I really want some advice on how to research a stock, position or a market sector from experienced investors. I don't want to squander the money and don't want to make baseless speculations.

    What research do y'all do before putting your own dollar on the line?

    Cheers and apologizes if it's a repetitive question.

    submitted by /u/clarkkent160
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    Facebook is going down in flames, time to place those bets gentleman...

    Posted: 25 Nov 2018 07:13 AM PST

    UK Parliament seized internal documents related to Facebook's privacy and data decisions.

    No one is going to like what the sausage factory actually does to make money...

    https://www.theverge.com/2018/11/25/18111007/uk-parliament-seized-internal-facebook-documents-app-developer-six4three-cambridge-analytica

    submitted by /u/caliphornian
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    The easiest way to learn about stocks - or - why Warren Buffett is a billionaire and you're not

    Posted: 25 Nov 2018 12:12 PM PST

    I have a bachelor's degree in finance from one of the best state business schools in the country. That's not to brag - in fact it may be the opposite - because after four years I can't say I understood the equity market that well. Part of it was my interests outside the classroom often competed and won against my interests inside the classroom, but part of it is that often information presented in the academic environment is just disconnected from the real world in some ways.

    I understood that a share meant share of a company and understood the concept of an exchange and stock split and general valuation principles, but not enough to put anything into practice. I didn't what activist investors did, or where the real pros started when analyzing a company, or how to value one ratio over another.

    But some time during my senior year at school I picked up "Buffett: The Making of an American Capitalist" at the recommendation of a friend. It goes through Buffett's life, as any biography does, and a detailed account of his journey from being a wildly successful newspaper boy to wildly successful multi-billionaire celebrity investor.

    I find a spoonful of sugar helps the medicine go down, and hidden in a fascinating story are numerous lessons about analyzing a company's financials, the powers that can be leveraged by shareholders, and simple advice about investing like buying solid brands and businesses that you understand, and avoiding the rest. Buffett really honed his ability under the teachings of Benjamin Graham to analyze the REAL financial state of companies under the surface of income statements and balance sheets and unlock that value in a way that suited his temperament. You will learn that investing professionally iis more than just understanding numbers. It's also a study in psychology and, at Buffett and Munger's level, an exercise in salesmanship.

    You will be tempted to go out and become a Benjamin Graham acolyte after reading this book, because Buffett makes it sound downright easy to become a billionaire. Just keep in mind that a) Warren Buffett is much, much smarter than you b) The Intelligent Investor is really boring and c) stock market information availability has changed drastically since his start in the late 50s.

    Whatever you think about Warren Buffett it's a powerful and inspiring read, and my number one recommendation to anyone who wants to learn about stocks, investing, and business but doesn't know where to start.

    submitted by /u/gslfrancisfrances
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    canada central bank buying mortgages?

    Posted: 26 Nov 2018 03:38 AM PST

    https://www.bankofcanada.ca/2018/11/expansion-assets-bank-canada-will-acquire-balance-sheet/

    These purchases will be conducted in the primary market, on a non-competitive basis, and are expected to commence in the latter part of 2018 or in the first half of 2019.

    however i heard about it from this you tuber

    https://www.youtube.com/watch?v=0IqKBlcXBGU

    Does this mean governments are bailing out the markets again?

    Will markets start to rise, or will it just be Canada that rises?

    submitted by /u/Good_Gifts
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    Seems to be a tough time to be new to the markets

    Posted: 25 Nov 2018 04:24 PM PST

    As a newer investor and a market being close to it's all time high with all the potential issues out there. It seems like a fools errand to be buying now. Anyone else feel this way?

    submitted by /u/Noboundss
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    Can someone help me understand futures?

    Posted: 26 Nov 2018 01:05 AM PST

    I'm currently invested in these

    EURO STOXX 50 Dec18 VGZ8 -7.43%

    S&P500 IMINFT Dec18 ESZ8 1.99%

    NASDAQ100 MIN Dec18 NQZ8 2.05%

    Due to a portfolio management investment, but at the moment I have no idea what these mean.

    I know that the negative percentage is the allocation percentage I have of that asset, I'm assuming futures work like this? I can't have negative something.

    So if I have -7.43% of Stoxx 50, it means it has to go down -7.43% for me to earn money?

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

    Posted: 26 Nov 2018 04:04 AM PST

    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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    Is there an asset class that has higher risk/reward than CDs/Bonds but lower than equities?

    Posted: 25 Nov 2018 09:02 PM PST

    While there are tensions with Iran & Saudia Arabia and rising interest rates is this a good time to invest into US Oil & Gas companies?

    Posted: 25 Nov 2018 07:01 AM PST

    My thinking goes even though oil price is dropping at the moment, the demand is still increasing. Most of Oil companies I looked at, even though they dropped 70%+ of their value since 2014, their price stayed consistent for 3 years now with hardly any volatility. Most of them offer a very good dividend.

    4 companies I looked at have >13 P/E, very positive ROE & ROI, with 0 debt. Cons being low share price, low market cap and low volume.
    $PBT $SJT $MVO $CHKR

    You could say well they havent grown for 3 years so its isnt a good long term investment but what if they do grow, due to them being low price share 10$> few cents up is already a big profit.

    If they stay same for another year well then dividend will be a nice profit.

    If they drop another 70% of their value, havent thought of that to be honest.

    But on positive say you invest $1200 into MVO (147 shares) a year from today it stays the same value around 8$, in last 3 years their dividend average is 0.846. Thats 124$, pretty much 10% annual profit on your initial 1200. If stock moves up few cents even better. Of course you could lose everything too, but thats the risk.

    Am I thinking this right or am I completely wrong and 10$> stocks are big risk not worth taking especially with oil and rising renewable energies?

    submitted by /u/emptyjarofcookies
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    International investing

    Posted: 25 Nov 2018 08:30 PM PST

    Hey peeps,

    I'm 21 years old and work part-time, earning around $1300-1500 after tax per fortnight. I recently started investing and have formed an investment plan (studying bachelor of finance/economics so i know some basics). However this investment plan is based solely around my investment into Vanguard's etf's.

    Currently i'm investing $600 per fortnight into Vanguard's etf's, with a split between VTS VAS VEU of 60% ,30%, 10% respectively and this is a 50 year plan to fund my retirement if all goes well.

    I've been doing some research on potential stocks that i could also create a healthy position on over the next decade and Microsoft is what i've decided upon with my focus being on their potential of growth in the cloud sector. I'm looking to dollar cost average Microsoft, what would be the best strategy to do this, how high of a frequency should i be looking to buy, should i be buying more frequently (on low's) with small $ transactions or big $ transactions infrequently on low's.

    For the Aussies, what's the best way to purchase shares listed on the US stock exchange. I've signed up for a commsec international account as thats where i do my domestic trading but i'm open to other options.

    What are your thoughts on the above, i'm happy to provide more specifics if it'd help you help me.

    submitted by /u/bison6969
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    I need help

    Posted: 25 Nov 2018 06:10 PM PST

    I'm fresh straight out of college dude who wants to learn stocks and everything around it, I want to learn us much as i can for 1 yr period before start to buy and sell or anything. Can yoy recommend youtubers,books or any free reading materials that i can easily grab on?

    submitted by /u/force_choked1
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    Another hike

    Posted: 25 Nov 2018 12:13 PM PST

    Feds are planning another hike in interest rate and another hawkish interest rate hike would effect the markets. As per GS and BOA analysis, another increase of 150 basis points or 1.5 percentage point, would boost the 10 year treasury yield by 45 basis point AND drop the stock market by 9%. Plus it will raise trade weighted US dollar by 4%. On the policy side it will increase the budget deficit by 1%. Goldman Sachs model reflects that fed hike will also increase the recession chance by 43% for three year horizon.

    submitted by /u/newstart3385
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    Acorns vs S&P 500

    Posted: 25 Nov 2018 10:08 PM PST

    Hello, I am debating on wether I should put my money in Acorns or an index fund. Both seem to be very safe investments. I am planning on investing in one for at least 8 years and maybe more. Acorns does seem to grow faster than the S&P 500, depending on which portfolio you choose. I chose 'moderately aggressive'.

    (Acorns is an auto investing app which invests in bonds, stocks, and real estate funds)

    Which would you pick?

    submitted by /u/Pepper808
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    What are some of the platforms that you use to track the performance of your portfolio?

    Posted: 25 Nov 2018 09:59 PM PST

    I want to create a stock portfolio and see how much I can earn with it. I also don't have any experience in investing.

    Which websites could you recommend to me if any?

    Thanks in advance :)

    submitted by /u/Elegant_Ingenuity
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    Are dividends a safe investment during war?

    Posted: 25 Nov 2018 05:55 PM PST

    Everyone knows that gold is a good investment during times of chaos when you have to flee. What about stocks?

    When Nazi Germany seized the property of German Jews, were their investments in non-German stocks safe?

    For example, Coca Cola paid a dividend during WW2. If you owned Coca Cola stock and had to flee Germany, were you able to just advise Coca Cola of your new address to receive the dividend cheques?

    submitted by /u/Throwawayinvesting87
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    Credit markets, real estate and climate change

    Posted: 25 Nov 2018 05:49 PM PST

    An article on how financial capital will destroy real estate values in cities threatened by climate change, and what that means for the economic well being of those cities.

    submitted by /u/CamiloCienfuegos_
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    Looking for good investing/ personal finance books

    Posted: 25 Nov 2018 09:14 PM PST

    I just finished reading Rich Dad Poor Dad and man was that an eye opener, have also read The millionaire next door.

    Any other good personal finance book recommendations? Would love to have a discussion!

    submitted by /u/Nohaaa97
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    What new things have you learned lately?

    Posted: 25 Nov 2018 01:40 PM PST

    A lot of posts are the same old adages reflecting modern portfolio theory: time in market beats timing the market, the relationship between risk and return, how bonds work and portfolio diversification.

    I'd love to hear about what new things people have been learning about or experiencing. Or maybe some new twist on the above. What are some new thoughts, ideas and experiences worth exploring?

    submitted by /u/mettle
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    How are people deriving Apple’s market capitalization?

    Posted: 25 Nov 2018 08:29 PM PST

    I'm sure you guys have heard the news: "Apple's market capitalization is now less then Microsoft's". That news surprised me because, on the trading platforms I use (Thinkorswim, Interactive brokers), Apple's market cap is listed at ~$817 billion. The article I was reading stated Apple's market cap at $746 billion so I checked on Google Finance and Yahoo Finance and – sure enough – Apple's market cap is listed at $746 billion. Apple has over 4.7 billion shares outstanding which, at the current share price, yields the market cap of around $817 billion which agrees with what the trading platforms I use say. I checked some other companies and the same sort of discrepancies exist. What's causing these discrepancies? I've been investing for over 5 years now and I'm just now learning there are different methods to derive a company's market cap.

    submitted by /u/Virus4762
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    Need help with school investing contest.

    Posted: 25 Nov 2018 08:12 PM PST

    Hello /r/investing! I am looking for help with my high schools investing competition, where we all start with 100,000 dollars and whoever has the most money at the end of January wins.

    The contest has been going on for about a month now, and I am down 11,000 dollars, and I need to make that money back before January. Any advice? Most of them have been me trying to profit off of earnings calls. The top person has 102,000, so i need a lot more money to win.

    submitted by /u/TheCakeIsALie0
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    Facebook/social media aren't going anywhere. The question is what will Facebook/social media look like after regulation?

    Posted: 25 Nov 2018 10:26 AM PST

    If the world adopts something like GDPR (which I think is fair), I think Facebook/social media will continue to be a great investment. I think it'll take a generation before people realize that social media isn't a fad, rather it's the primary way for humanity to communicate. Take my GF for example, born in Cuba, raised in New Mexico, lives in Michigan, with family in Las Vegas. Her entire family is on Facebook, and she communicates with them exclusively via Facebook. Even her mother calls her exclusively via the messenger app. If she didn't have Facebook she would never be in contact with family in Cuba for example, and there exists no other way for her to stay in contact with them as efficiently. She also doesn't want in depth conversations with everyone in her family, she communicates with most of them via a like/heart reaction, or a quick comment. Her next option would be emails, or text messages, and she would likely not keep in touch with them at all if that were the only option. In addition to this, people are heavily invested in social media. Celebrities, influencers, and brands have all built their communities on these platforms. People aren't going to leave the places where content in their interests are being created. There are a ton of other reasons I can list, but people should stop circle jerking to the thought of Facebook's funeral. If you want to make a serious play on the Facebook shit-storm, think of how regulation will impact the social media/advertising space. If you pay attention to what the countries involved in this are saying, they are clearly pointing towards regulation, not nuking Facebook.

    submitted by /u/GladObjective
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