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    Sunday, November 25, 2018

    Stocks - Is FANG maxed out? The most promising technologies of the next decade (2020 and beyond) and which companies to invest in?

    Stocks - Is FANG maxed out? The most promising technologies of the next decade (2020 and beyond) and which companies to invest in?


    Is FANG maxed out? The most promising technologies of the next decade (2020 and beyond) and which companies to invest in?

    Posted: 25 Nov 2018 10:31 AM PST

    During a bear market, tech and other growth companies are generally the ones that experience the biggest corrections in share prices due to poor fundamentals and high P/E ratios. However, it doesn't change the fact that investing in general is always about future value. Obviously 'future' is subjective and will vary from person to person, as some people are looking to invest for 5 years while others are looking to set-and-forget for 20+ years, but the point is - people are essentially making a long-term bet that the company will evolve into a stronger leader in its respective industry.

    FANG (Facebook ($FB), Amazon ($AMZN), Netflix ($NFLX), and Alphabet ($GOOG)) have been the 4 powerhouse tech stocks that consistently beat the market. As of August 10, 2017 — while the NASDAQ 100 was up 19 percent and the S&P 500 was up 8.9 percent year-to-date (YTD) — FANGs were up more than 2x that of the latter. Year-to-date, Facebook (FB) was up 45 percent, Amazon (AMZN) 27 percent, Netflix (NFLX) 36 percent and Alphabet's Google (GOOG) 16 percent, beating the returns of both indices. (Source: Yahoo Finance)

    As we reach the peak of the 'tech bubble', people have questioned whether the year-over-year growth for FANG is sustainable, while others added to their bullish sentiment with the inclusion of other industry leaders -- In Sept. 2018, CNBC published an article that said that Square ($SQ) should be part of the FANG group based on the hyper-bullish sentiment of a Nomura Instinet analyst, who also set a massive price target of $125 per share.

    October 2018 - The Motley Fool came out with an article (https://www.fool.com/investing/2018/10/09/forget-fang-stocks-meet-mana.aspx) titled *Forget FANG Stocks: Meet MANA* (Microsoft ($MSFT), Apple ($AAPL), Netflix ($NFLX), Amazon ($AMZN))

    Q3 ERs for most tech companies were disasters - most beat Q2 expectations, but they slipped on the Q4 guidance. Whether you believe that they are sandbagging is up to you, but people hoped that strong ER and Q4 guidance from FANG/FANGS/FAANG/MANA was going to prop up the market from further slide -- they didn't. If I recall correctly, Netflix was the one that had the strongest ER and jumped nearly 13% in the after hours. Apple bombed on their iPhone sales and announced that going forward, they would no longer be reporting iPhone sales unit numbers. People started to question whether FANG had enough innovation left in their tanks to continue to grow and drive expansion.

    **So what's next?** There are a number of advancements that are on the verge of a major breakthrough and adoption:

    * Robotics/AI

    * 5G

    * Quantum computing

    * Internet of Things (IoT)

    * Blockchain (this does not necessarily mean cryptocurrencies)

    * Gene editing/modification

    * Healthcare/Biotech/Pharmaceuticals

    What technologies are you bullish on for the future? Which companies are you investing for said tech?

    EDIT 1: totally forgot about VR/AR

    submitted by /u/ceud
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    Looking to buy stock as a gift

    Posted: 25 Nov 2018 07:06 AM PST

    Every years I'm always looking to make a nice gift to my girlfriend. This year I wanted to buy her stocks ! I wasn't exactly sure what would be the best way to buy it (Canada) and what stock should I look into ( will do my research before buying but I am looking at clues)

    Thank you and have a wonderful christmas season and hope you won't end up in wsb this year ;)

    submitted by /u/Lool324
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    Cumulative return for FAANG stocks in 2018

    Posted: 25 Nov 2018 10:22 AM PST

    Graph of this issue: https://pbs.twimg.com/media/DsvCoreUcAA1AIE.jpg

    FANG got wrecked this year - so far.

    Facebook, Amazon, Netflix, and Google parent Alphabet plummeted during 2018, compounding weakness that has plagued the broader tech space.

    At least one of those names could have hit a bottom, according to Matt Maley, equity strategist at Miller Tabak.

    "The stock that I think could be compelling down here is Facebook," Maley said on CNBC's "Trading Nation" on Thursday. "It's not a crowded trade any more. It's been washed out."

    Facebook is the only stock of the group negative for the year. It has dropped 10 percent in 2018, the bulk of those losses sustained after its notorious $120 billion drop in market cap in late July after its worrisome second-quarter earnings statement.

    While Maley says the fundamentals in other FANG stocks might be more constructive, their steep run-up means they're more vulnerable to a pullback than Facebook.

    "If the market begins to roll over, you're actually going to see the Googles and the Netflixes, some of that fast money, the momentum money, start to sell in a little bit of a panic move, but that money has already disappeared from Facebook," said Maley.

    Do you think the sell-off is over in the FANNG stocks?

    Are you personally buying FAANG stocks at these current prices?

    submitted by /u/gorillaz0e
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    Your opinion on Qualcomm (QCOM)

    Posted: 25 Nov 2018 06:12 AM PST

    Hi Reddit!

    I am looking to get in qcom for an investment at a reversal point of the recent drop because the company has shown a very steady bullish trend over the years. My only concern is the expiration of patents on wireless systems in the near future. I think this could lead to a fast decline in the stock as some of these patents hold concept used in almost every router. What is your opinion on this topic?

    submitted by /u/TisJeBoiJeroen
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    I think alibaba is very controlled stock

    Posted: 24 Nov 2018 10:27 PM PST

    At the end of Black Friday market there were very high volume of buys when all other tech stocks were dropping, what do you guys think,

    submitted by /u/AmericanEggroll
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    Thoughts on Inverse Bond ETFs

    Posted: 25 Nov 2018 11:32 AM PST

    Hi, first let me give some context about my situation and how I've come to consider inverse bond ETFs. I'm in my mid 20s and I have started investing recently (2018). I traded stocks earlier this year and I have made some money( my portfolio is <10k). Then towards late September I cashed out as I had a bad gut feeling about excessive valuations (that was mostly luck tbh). Now after seeing the performance of the stock market in October and November, and the calls for a recession in 2020 I remain pretty bearish. I am mostly in cash and considering save havens like gold (my risk tolerance is low).

    However doing some research, I saw that inverse bond ETFs and ETNs have had very good returns YTD (TBF: 9,23%; DTYS; 28,38%; TAPR:33,55%; DLBS: 35.85%; DFVS: 16,78% and several others). Now I am well aware that volatility kills returns in inverse ETFs if held for a long time but these numbers are hard to ignore. Anyhow I have a few questions for more seasoned investors who know these products better:

    1) Have these ETFs performed better than inverse stock ETFs like PSQ simply because the sell off in the bond market has been longer and more consistent in 2018?

    2) This is more subjective but do you think that the expectations of inflation and a hawkish Fed are enough to offset the decay from holding these ETFs long term? (By the way, I am only interested in inverse 1x)

    3) As a follow up to the previous question should I look into ETFs with longer maturities and if so how long 10,20 30 years?

    4) Considering all these factors as well as taxes, is it simply a better idea to hold these ETFs short term only?

    Thank you.

    submitted by /u/drumbf
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    Firstrade Opinion

    Posted: 25 Nov 2018 02:13 PM PST

    Hey, i´m new here, and im looking for a online broker for people outside the US, I found Firstrade, what do you think about it? is it trustful?

    submitted by /u/AlexTrrz
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    Thoughts on redfin, box stitchfix

    Posted: 25 Nov 2018 01:53 PM PST

    I recently picked these up as a little more on the spec side for me. I love the redfin app and think they have a chance of disrupting the industry.

    Box I picked up from recommendation from a friend. They have 70 percent of sandp 500 clients and are starting to pitch their newer ai tools

    Down a bit on both as recent pickups. My other kinda spec bet is stitch fix. Got it after the 50 percent dip post Cramer's recomdation

    submitted by /u/paulpierce1985
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    Anyone here a Dividend Growth Investor?

    Posted: 25 Nov 2018 01:42 PM PST

    I started investing about 5 years ago. When I was just starting out, my Dad was giving me guidance, and as an income investor, I followed his path and started investing in "blue chip" companies that pay a good dividend.

    Given that I'm Canadian, most of our market is based on Banks, Telecoms, Pipelines, and REIT's. So that's basically what I started with.

    Enbridge, Bell Canada, TD Bank, Fortis, Brookfield Infrastructure, etc. They all pay a healthy distribution, grow dividends each year, and are stable business that provide services people need. They aren't going anywhere anytime soon, and have all survived multiple recessions / business cycles.

    Most people have favoured growth stocks in the past decade, and I almost jumped into many of those attractive growth stocks at the peak of hype, especially when my dividend stocks didn't seem to be moving fast or at all. After some evaluation on my risk tolerance and my overall strategy, I decided that I like the idea of compounding dividends over decades, and then being able to live off those dividend payment in retirement. This obviously requires me to ensure the companies I invest in are safe, stable, wide moat, and not at risk of cutting the dividend.

    Now I'm trying to grow my Dividend Growth Portfolio, and I wanted to know if there are any others who like this strategy - I'd like to hear your thoughts!

    submitted by /u/LuxGang
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    Thoughts on $PRU as a value investment?

    Posted: 24 Nov 2018 10:19 PM PST

    I am relatively new to investing and I've decided to give the value investing approach a try. Looking into companies I am familiar with, I decided to evaluate Prudential Financial Inc. ($PRU). By most value investing metrics the company is attractive (Price, Earnings, Dividends). The debt on their balance sheet is a bit high, but I am told that somewhat typical for financial companies.

    Any thoughts on investing in $PRU? Does anyone out there hold shares?

    submitted by /u/Bladen001
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    Will centralization be the death of the stock market?

    Posted: 25 Nov 2018 01:39 PM PST

    It seems that in every avenue of life, centralization ends up being the ultimate death blow. Where an isolated minority controls and the majority are just along for the ride with little to no input. Just a thought.

    submitted by /u/SilverSpoonSoldier
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    Most promising Airline stocks for 5 year timeline

    Posted: 25 Nov 2018 07:41 AM PST

    I'm looking at airlines as have nothing in this sector. Of the USA airlines I was excited about southwest (LUV) but Delta (DAL) has a 2.5% dividend which makes it a little more attractive to me.

    I have done very little research on foreign airlines but way back int he day I did own some China Southern (ZNH) and still believe the premise of the growing wealth of the chinese middle class will fuel more travel, it also has a nice 2.3% dividend. Having traveled alot globally over the past 5 years I will tell you the Chinese are becoming more and more present. Any thoughts on foreign airlines and ZNH in particular?

    I know airlines are often tied somewhat to the performance of oil and I do have Exxon (XOM) as 1/20th of my portfolio

    submitted by /u/amoult20
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    Thoughts on SQ right now?

    Posted: 25 Nov 2018 09:35 AM PST

    I'm thinking it's a buy and I can really see it going far up again.

    submitted by /u/hzprods
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    How do you buy stocks premarket or exactly at 9:30am

    Posted: 25 Nov 2018 09:28 AM PST

    Let's say I know something is gonna go up right away because the after hours activity. I want to buy before the market opens or exactly at 9:30 in the morning. I know premarkets orders can be done but I don't see how it's done through my broker TD

    submitted by /u/kemar7856
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    Long-term stock investment?

    Posted: 25 Nov 2018 12:07 PM PST

    Hey all,

    In the past I have been working with stock exchange apps like "plus500" for example. It worked great for the most part and usually I was able to make the right call but the demand and attention to the app was quite heavy since since you were able to "lose" the stocks you bought/speculated on.

    I have always been about long term investing where I want to just "buy" stocks and more or less own it until the day I decide to sell it.

    So my question would be, is there an app, website or other service which allows you to buy stocks without being affected by the volatile swings of the market. So something I can just buy which I believe will turn out great in the course several weeks, months, years etc without worrying if a major dip will bite away my entire deposit.

    PS. I am aware that apps like "plus500" allow you to set a "safe stop" in case a price drops to a specific number to avoid your deposit being entirely swallowed up but then you basically lose the stocks you "bought/speculated" on, which is the entire opposite of what I am looking for.

    Please let me know if I'm unclear, the technical terms still largely surpass me!

    Thank you kindly in advance

    submitted by /u/LuckyGoomba_
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    Most Highly Regarded Broker? Or who is your favorite/do you use?

    Posted: 25 Nov 2018 10:55 AM PST

    I'm currently about to invest $50k with a broker and I'm a bit torn as to who I want to choose. I currently have my eye on three prospects and I'll put them in order from: Great, Greater, & Greatest (My personal favorites)

    Greatest: Zack's (I think this explains itself. I just love everything about Zack's...minus their horrendous mobile app) Greater: M1 (Love that I can buy partial shares in high dollar stocks & the whole layout is quite nice - actual trading tools sucks though) Great: Charles Schwab (really enjoy their mobile trading platform and options layout)

    I'd love to hear what everyone uses for actually investing. I'm also going to put approximately $15k into Firstrade, which is a pretty amazing broker. Had everything a normal/large broker has (and then dome) but they do not charge any trade fees. My trading has moved almost completely to options trading and this site is particularly well suited for this. I want to give a big shoutout to u/N3rd_01 for the hookup on this site! Very much appreciated!!

    Look forward to the responses!

    submitted by /u/1Dru
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    Thoughts on Apple (AAPL)

    Posted: 25 Nov 2018 10:46 AM PST

    Hey guys I invest most of my money in index funds and was looking into buying some individual stocks now that prices are low. I was wondering what your opinions are on Apple. Obviously apple is a safe stock to hold long term but after the last correction I wanted to know if you guys think it has room to continue downwards or if it will begin to bottom out.

    Thanks

    submitted by /u/albunting
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    Fictional Pension Fund, added value of a specific alternative asset class help

    Posted: 25 Nov 2018 08:37 AM PST

    Hey guys,

    I am working on a project where I look at the added value of a specific asset class (such as PE-Buyout) to a fictional pension fund's portfolio (now 65% equity, 35% bonds). Some things I am looking at:

    -Efficient frontier analyse

    -Cov. matrix

    But also, finding a good proxy for the liabilities of this fictional pension fund, and approximating the liabilities with a index-linked bond (30years).

    I have some specific questions, anyone experienced with this and willing to help me?

    submitted by /u/IamALoLFan
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    Investing with a new Roth IRA

    Posted: 24 Nov 2018 04:27 PM PST

    Hi all

    I am 22 and just opened a Roth IRA, as I just started coming into some actual money.

    I have done well investing with stocks, but I am interested in ETFs for my Roth IRA investments and don't know all too much about mutual funds.

    I have been looking at SPHD because of the dividends, but I honestly don't know if that's a good choice and am at a loss of what is a good move in general.

    Any advice would be greatly appreciated

    submitted by /u/Waggles0843
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    Thoughts into a short term investment into JC Penney?

    Posted: 25 Nov 2018 01:07 AM PST

    Saw this and go thinking that if JC Penney isn't going anywhere anytime soon, then it might be good to buy and wait for a small uptrend and sell.

    I don't see JCP going anywhere in the long term, but on the short-term, I see a new CEO (who is trying to bring back JCP to its roots) making some positive changes. If there is a strong up term I could also see this being a longer-term investment.

    New to investing so plz teach if there's something wrong with my strategy way of thinking. Still haven't put money on it yet and likely won't without more research

    submitted by /u/pippy3141
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    If you were to invest $1 million into the stock market right now how would you do it?

    Posted: 24 Nov 2018 08:49 PM PST

    Hi all,

    I am a college student looking to gain more clarity on how to invest in this current market. Given this, I was thinking about if I had $1 million right now, how would I invest it. Please let me know your thoughts. I don't have much investing experience and am just looking for a sense of direction as to indicators for stocks with potential to gain value even given the current economic state.

    submitted by /u/mkagan23
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    How much should I read into these seemingly sound bank/analyst projections?

    Posted: 24 Nov 2018 08:30 PM PST

    Some of them seem credible. For instance, Bank of America projects a yield curve inversion next year, and Goldman Sachs sees GDP growth slowing to 1.6% in 2020. Like I said, there's are accredited institutions, but should I listen to them or pass them up?

    submitted by /u/VitaminClean
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