• Breaking News

    Sunday, March 24, 2019

    Daily advice thread. All questions about your personal situation should be asked here Investing

    Daily advice thread. All questions about your personal situation should be asked here Investing


    Daily advice thread. All questions about your personal situation should be asked here

    Posted: 23 Mar 2019 05:14 AM PDT

    If your question is "I have $10,000, what do I do?" or other "advice for my personal situation" questions. If you are going to ask how to invest you should include relevant information, such as the following:

    • 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 significant other?
    • 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]

    What happens when the Fed has no more ammo to combat a recession?

    Posted: 23 Mar 2019 01:19 PM PDT

    u/Plaregold This user posted the following in a different post, full credit goes to him for inspiring this post.

    "1989: the rate was at nearly 10% when the yield inverted in March 1989. Between that time and March 1991, the rate dropped to approximately 6% and continued to drop to approximately 3% where it stayed until March 1993.

    2000: The rate was around 6% in April 2000. By September 2002, it was at approximately 1.7% and continued to drop to under 1% til April 2004.

    2006: The rate was around 4.5% in January 2006. Rates would continue to rise to approximately 5.25% in July 2007 and drop to zero or near zero rate and hold those rates until 2015 before it started to rise.

    Our current rate is between 2.25% and 2.5% and the Feds are already pressured to not raise the rates in the near term. If a recession hits, we have basically exhausted the Feds lowering rates as a tool to spark economic recovery."

    This is quite a disturbing trend, and if it continues, eventually we'll be at 0% interest rates in the middle of a massive recession. Then what?

    • The Fed prints money to reflate the economy and bring back liquidity?
    • Is the possibility of hyper inflation or even stagflation a reality we could be facing?
    • Could we be running into a "lost decade" like Japan did, or are demographics too different for that to happen in North America?

    This is a scary time to be an investor. My only solace is knowing the market has been through way worse and recovered. The difference this time though is our historically low interest rates. Not sure if we've ran into this problem before and how it was overcome if we did.

    These are questions I've been asking myself, and I'm not smart enough to know the answer. Hope someone here knows enough about economics and the stock market to provide some clarity on what we might experience in the next 2 years if we continue down this path.

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

    For the Panicked: A Closer Look at the Last Few Inversions (1989-2009)

    Posted: 23 Mar 2019 05:45 AM PDT

    Since some people are panicking about the 10 & 3 Treasury yield rates inverting, I thought it might be helpful to review history so people can get a sense of the time scale involved in these sorts of things.

    You can follow along here:

    https://fred.stlouisfed.org/series/T10Y3M

    https://www.tradingview.com/symbols/SPX/

    Please note, I'm eyeballing this from the charts above. All values and dates are rough estimates.

    1989:

    The yields invert in late March 1989. They bounce around for the next 9 months until the end of 1989.

    The S&P hit 290 in late March 1989. By October 1989, it hit 360. S&P then dipped to 320, then hit 370 by July 1990. The recession officially begins that same month. The S&P then dips to 300 and regains its value to 370 by February 1991 (roughly six months). Recession ends a month later, March 1991.

    1998:

    The yields invert in September. They bounce a few times over the next month.

    S&P is volatile, but there is no net loss/gain. No recession.

    2000:

    The yields invert in April 2000. They bounce for the next 10 months until February 2001.

    The S&P was at 1350 when the yields inverted. S&P hits 1520 in late August 2000 (a high it reached in March 2000, before the inversion). S&P would then begin a slow and volatile decent (four months after the initial inversion), dipping to a low of 800 by late September 2002. The recession officially began March 2001 and ended November 2001.

    2006:

    The yields invert in January 2006. They would bounce for 19 months, until mid August 2007.

    The S&P was 1280 in January 2006 (when they first inverted). By October 2007, the S&P hit 1560 (a couple of months after the inversion ended). S&P then began a mostly slow decent down. The recession officially began a couple months later in December 2007. The S&P dipped to a low of 670 around March 2009. Recession ends June 2009.

    The point?

    If you're panicking right now, consider slowing your roll. If history is our guide, you're freaking out waaaaaay too early and will most likely miss out.

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

    What would your portfolio look like if you inherited 10 million dollars?

    Posted: 23 Mar 2019 01:05 PM PDT

    15% Real-estate (a house to live in)

    15% Cash (want to be able to buy in low if a large recession hits)

    40% VTI

    15% VWO

    15% long term T-Bills

    Thoughts?

    submitted by /u/sfasdf2141
    [link] [comments]

    Besides stocks, what are some of the best ways you’ve invested in?

    Posted: 23 Mar 2019 07:51 AM PDT

    I just turned 30, I only make a bit more than $40,000 but I have about $20,000 in retirement (not bad for 3 years from finding a "real job", $17,000 in the money market, and another $10,000 in savings/checkings...so I know how to save money but I don't know how to invest in my money. I live below my means but still treat myself. Where I live has a reasonable cost of living.

    I bought a small house in a nice place, my long term boyfriend makes about $70k as a mechanic. I have no student loans, I'm finishing my Master's since it's 100% free tuition and the only debt is my house , I think I have a good deal going on. I just wish I can take it further.

    I don't understand stocks very well. Is there anything else I can do with me money? Buy a franchise? Rent my place once I get a bigger place?

    submitted by /u/Foodie1989
    [link] [comments]

    Where to invest 5-10k, if at all with market signs?

    Posted: 23 Mar 2019 09:06 PM PDT

    I'm relatively new to the investments beyond putting a couple hundred dollars in the S&P over my few years out of college. I have $8k to invest at the moment and have projections of creating a savings stockpile of about $30k by the end of the year.

    My initial thoughts are to take the money and put it on a down payment for an investment property as opposed to incrementally invest in the market. I'm worried, especially after a few of the recent market signs, that were headed for either a slow down or a recession so I'm hesitant of putting most of it in index funds, simply assuming I'm buying too high now.

    In my mind there are two options:

    1 start to incrementally invest in the market (mostly the S&P) and invest for the roughly 8-9% long term return

    Or

    2 stockpile my savings for to purchase property an investment property in a low cost of living state

    Any advice would be greatly appreciated.

    submitted by /u/LittleRaskol9
    [link] [comments]

    How much do you have in stocks, and how much are you paid in dividends per month?

    Posted: 23 Mar 2019 09:42 PM PDT

    Which stocks pay you the most?

    submitted by /u/CajunCrusader3
    [link] [comments]

    Has anyone played around with investopedia stock simulator ?

    Posted: 23 Mar 2019 10:26 PM PDT

    Great place to learn from your mistakes without actual money involved. Wanted to see if anyone has tried this service and if so what was your gain or loss ?

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

    US Markets News: Stocks Slip as the Federal Reserve Expresses Caution on Economic Slowdown

    Posted: 23 Mar 2019 11:43 PM PDT

    "There's a host of worries out there, and those worries continue to mount," said Peter Cardillo, a chief market economist at Spartan Capital Securities. "The fear of recession is increasing."
    https://blockchainreporter.net/2019/03/23/us-markets-news-stocks-federal-reserve-economic/

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

    Investment returns defined

    Posted: 23 Mar 2019 05:32 PM PDT

    If an investment fund goes up 10 percent in year 1 and another 10 percent in year two, how would the fund report 2 year earnings? Would they cite 20 percent or 21 percent (the compounded amount)? What is the terminology applied to each (eg return, yield, etc)?

    I believe the funds NAV is theoretically only up 20 percent though if an investor reinvested returns, they'd achieve the 21 figure. Correct me if that is wrong though.

    submitted by /u/ds1749320
    [link] [comments]

    How to auto-buy $250 of Vanguard ETF per week?

    Posted: 23 Mar 2019 06:43 AM PDT

    Is it possible to somehow set up an automatic schedule that sends $250 from my Savings to Trading account and then automatically places a bid order at market price for a Vanguard ETF (or any big ETF really).

    I'm in Australia
    Bank: Commonwealth
    Broker: Commsec

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

    Why do some people leave 100k plus in a savings account when they are not close to retirement?

    Posted: 23 Mar 2019 10:43 AM PDT

    It's seems like with a savings account from certain banks where it is under a 1% yield it seems pointless for one to just have their money sit around in a savings account instead of being put to work. What do you think is a safe alternative for one to park their cash while still making money. My thinking would be if they are worried about safety maybe take atleast half of that and put it in a government bond or bank CD.

    submitted by /u/legitcreed444
    [link] [comments]

    Don’t Sweat the Inverted Yield Curve: No One Really Knows What It Means (2006)

    Posted: 23 Mar 2019 03:55 AM PDT

    Are money market funds a good place to park your money if you need high liquidity?

    Posted: 23 Mar 2019 11:11 AM PDT

    I'm looking at the Schwab Value Advantage Money Fund Investor Shares (SWVXX).

    My need is to have the cash liquid and available within 1-3 days. I want low risk and a higher interest rate than Schwab's investor checking of .5% APY.

    Ally.com offers a higher rate but wondering if I can just buy money market shares and have a reasonably safe (i.e. not losing money) place to park capital.

    Is this a good fit for my profile? The expense ratios seem high (since it is actively managed). Should I be looking at funds outside Schwab (this one happens to have 0 commissions because it is Schwab fund).

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

    How do I invest in an S&P 500 index fund using Interactive Brokers?

    Posted: 24 Mar 2019 02:52 AM PDT

    Hi,

    I'm looking to put some money long term in an S&P500 index fund, but I'm lost in the product listings at IB. Can anyone point me at a specific index fund that is available to non-US residents at IB?

    submitted by /u/normie1990
    [link] [comments]

    Stadia and the Future of the Gaming Industry

    Posted: 24 Mar 2019 12:37 AM PDT

    So about Stadia.

    It feels like it is potentially a game-changer of the gaming industry, in a way like how Spotify changed the business model of the music industry.

    First of all if it rolls out successfully and is well-received, the consoles sales (Sony, Microsoft, Nintendo) are gonna be adversely affected. With Stadia you only need an average PC to play games at 4K, 60FPS, which consoles currently cannot do. Depending on the price tag of Stadia, it may come even cheaper than the console set (Game purchasing, online fee (e.g. PS Plus)). I am a loyal fan to the PS series but with Stadia I am seriously considering switching over.

    I am not sure how Stadia plans to release the games to its user. But at first it seems to me that whoever subscribed to Stadia is able to play the games under its wing. If that's the case then the game developers are to some extents "controlled" by Stadia as it will become the primary platform they release their game contents to.

    However there is the internet speed issue and the delay of input. FPS is gonna be the most sensitive to it and FPS is a big chunk of the current gaming market. This could be solved by having 5G generalized for the public but who knows how long we need to wait for it.

    Penny for thoughts. What do you think about the future of the gaming industry?

    submitted by /u/no_clue_guy14
    [link] [comments]

    Can a stock have an implied volatility if there are no options for that stock?

    Posted: 24 Mar 2019 12:12 AM PDT

    If not, is implied volatility of a stock the weighted average of all the options for that stock?

    submitted by /u/zeromodz12
    [link] [comments]

    Investing in canadian cannabis stocks.

    Posted: 23 Mar 2019 11:49 PM PDT

    Hi guys, Im right now i middle east and i would like to invest on US and Canadian markets, i heard cannabis market is on a boom right now and most likely will peak up on following years. Is it wise for me to invest on canadian or american cannabis stocks and how can i do that from here?

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

    What do you think will happen to GBP 5-10 years after Brexit? Assuming a deal is made with the EU

    Posted: 23 Mar 2019 10:00 PM PDT

    Title says it all

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

    Can anyone recommend good readings on investing in cyclical stocks? Specifically industrials and transportation? Or top investors in the space?

    Posted: 23 Mar 2019 08:26 PM PDT

    Thanks

    Trying to do a deep dive on the space.

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

    Was there many bears in 08?

    Posted: 23 Mar 2019 08:03 PM PDT

    I'm curious if the bear mentality in 08 was as strong as it is today?

    or aside from my homies from the big short, did the GFC just come out of the woodwork like nobody expected?

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

    Looking for advestment advice regarding diversification.

    Posted: 23 Mar 2019 07:54 PM PDT

    I am interested in developing my own portfolio and I've come up with a plan and I'm interested to hear some comments and maybe get some advice.

    I know that tech stocks potentially represent some of the biggest gains, but honestly I'm not really a fan of the majority of the big tech companies like Apple, Google, Facebook and Twitter. So I've decided that instead of purchasing a total US stock market ETF which is heavily weighted in tech, that I would instead purchase 10 or 15 different smaller ETF funds and try to cover the majority of the sectors that would normally be made up in a total US market ETF.

    I'm planning to purchase the following ETF's: Realestate, Utility, Energy, Materials, Goods, Healthcare, and Tech, and whatever else I can think of to make up a diversified portfolio of ETFs.

    I figure this way rather than having a single US market fund I will still have all the major funds, but with a finer grained approach, and if I see one sector has dipped I can purchase it on sale, or sell it if it seems overvalued.

    Does this seems like a good approach? What specific ETF's would you recommend that have low management fees and would provide me with good diversity corresponding to what one might get with a total US market ETF.

    Thanks

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

    Biogen Inc - Thoughts on BIIB's dip.

    Posted: 23 Mar 2019 05:36 AM PDT

    Biogen (BIIB) dipped ~35% this week because their Alzheimer's drug was a bust, but it has a P/E of 10 with decent financials.

    Do you think this is a good dip to buy or does it still have room to fall?

    submitted by /u/superandy241
    [link] [comments]

    No comments:

    Post a Comment