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    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: 31 Mar 2019 05:13 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
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    WSJ: ‘Fear of Missing Out’ Pushes Investors Toward Stocks

    Posted: 31 Mar 2019 07:45 AM PDT

    As major indexes continue to rise toward last year's records, investors say they are increasingly wary of missing further gains

    Optimism about trade talks and the Federal Reserve's signaled halt to interest-rate increases propelled the S&P 500 to its best quarter since September 2009, even as investors wrestle with issues ranging from slowing global growth to uncertainties surrounding Brexit. As the rally has continued, powering major indexes toward last year's records, investors say they are increasingly wary of missing out on further gains.

    Stocks quickly stabilized last week after longer-term Treasury yields fell below those on shorter-term debt, a development known as an inverted yield curve that often presages a recession. The shift rattled markets briefly earlier in the month, but the Dow Jones Industrial Average ended the quarter with a 1.7% weekly advance. One reason for the recovery: investors' wagers that a U.S.-China trade agreement will stabilize the world economy, boosting corporate earnings.

    Ed Leventhal, a 58-year old who manages a family investment office in New York, said he has been buying shares of some companies hurt by trade tensions such as Ford Motor Co.

    "There's no question we're going to get some resolution to this," Mr. Leventhal said. "There's reason to believe that the U.S. economy will continue to do well."

    Investors this week expect to monitor trade discussions that could further swing markets, with U.S. and Chinese officials meeting in Washington. Manufacturing data and retail sales figures could also shift expectations for U.S. growth.

    Many are also looking ahead to earnings season, which begins in earnest at the end of next week with reports from JPMorgan Chase & Co. and Wells Fargo & Co. S&P 500 companies are expected to report their first decline in quarterly profits from a year earlier since 2016.

    Despite downbeat earnings projections for the January-March quarter, some investors have already grown increasingly optimistic following the Fed's cautious shift. After investors pulled money from U.S. stock mutual and exchange-traded funds at the start of the year, more than $25 billion flowed in during the week ended March 13, the largest weekly inflow in a year, according to EPFR Global.

    Investors withdrew money from such funds again during the weeks ended March 20 and 27, but they still increased their allocation to both stock funds and stocks in February, according to an American Association of Individual Investors survey. More than 80% of active traders say it is a good time to invest in U.S. stocks, a Charles Schwab survey found.

    Some analysts say greater investor demand for stocks could join robust corporate buybacks in supporting major indexes. S&P 500 share repurchases in the fourth quarter rose to a record $223 billion, a 63% increase from a year earlier, according to S&P Dow Jones Indices.

    Buybacks make corporate profits appear stronger by lowering the number of shares outstanding, buoying per-share earnings beyond strong profit growth.

    Some analysts remain confident stocks will rise even though the Fed recently lowered its economic growth projections for 2019. In response to the slowdown, the central bank signaled it likely won't raise interest rates this year. Treasury yields, which fall when bond prices rise, have slumped to their lowest level in 15 months following the Fed statement.

    At the same time, several said growth is slowing but sturdy, and a pause in interest-rate increases could still lift major indexes.

    "There is that fear of missing out, which along with a tempered Fed creates the belief that we're not going to be retesting those December lows," said Leslie Thompson, managing principal at Spectrum Management Group.

    Ms. Thompson said she has been buying shares of companies that pay higher dividends such as Darden Restaurants Inc., as well as technology stocks like Apple Inc.

    After another weekly advance, the S&P 500 is up 13% for the year and sits just 3.3% below last September's all-time high. Some analysts have been caught off guard by the durability of the early-year rally because S&P 500 companies are expected to report a nearly 4% drop in first-quarter earnings from a year earlier, according to FactSet.

    Sectors that have led the market, such as technology, are expected to report double-digit percentage earnings declines. Even cyclical stocks tied to the health of the economy such as industrial and energy shares continue to power markets higher as growth slows, an illustration of the conflicting signals being sent by stock and bond markets.

    Craig Hodges, portfolio manager for Hodges Funds, said he has been buying shares of faster-growing technology companies such as Twilio Inc., in addition to beaten-down materials firms including Commercial Metals Co.

    "To me the backdrop is still pretty good," Mr. Hodges said. "There have been a lot of excuses for the market to go down and it really hasn't."

    With earnings estimates falling even as stocks surge, major indexes have gotten more expensive relative to companies' earnings for the next 12 months. The price/earnings ratio of the S&P 500 based on profit estimates for the next year, a common valuation measure, just logged its largest one-quarter increase since June 2009, according to a Dow Jones Market Data analysis of figures through Thursday.

    Still, some analysts say current valuations are appropriate following the fourth-quarter selloff and swift recovery. The steady nature of this year's gains also continues to placate nervous investors.

    The S&P 500 fell more than 1% in a session just three times in the first quarter, minimizing the outsize gyrations that made market observers so anxious late last year.

    "People are trying to get really aggressive now," said Benjamin Lau, chief investment officer of Apriem Advisors. "Clients do not want to miss out on the upswing in the market…The hard part is keeping their expectations in check."

    https://www.wsj.com/articles/fear-of-missing-out-pushes-investors-toward-stocks-11554030001?mod=mhp

    submitted by /u/LonelyThought9
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    Best dividend oriented ETFs?

    Posted: 31 Mar 2019 05:41 AM PDT

    I'm 19 and fairly new to investing but I recently started looking into building a dividend portfolio that could serve as another stream of income in the future. I figured an ETF would be safer than just buying a few individual stocks, so I was wondering what some of the best dividend oriented ETFs were. Any suggestions? Thanks!

    submitted by /u/throwaway_3021
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    Is Amazon underpriced or overpriced?

    Posted: 31 Mar 2019 03:13 PM PDT

    Will IBM go thru with the Red Hat acquisition?

    Posted: 31 Mar 2019 03:38 PM PDT

    Downturn in Europe Vs. Potential Downturns in US

    Posted: 31 Mar 2019 04:49 PM PDT

    I was reading a blog post that talked about how the downturn that occurred in Europe in the late thirties was devastating and that investors were wiped out, never to recover again. What factors are present in the US that may bring about a similar situation?

    - Sovereign debt crisis is one..

    - Others?

    Counter point to the first one - USD is still a reserve currency and US is still an economic powerhouse. The US still has international competitiveness? The US can always debase its currency to be in a better borrowing state?

    Interested in this question because everyone gets scared and pulls out money if they think the future is bleak, time and time again, the future isn't as bleak but there is potential for black swan events that may place the US in a late thirties Europe situation.

    submitted by /u/snailmailz
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    For those primarily skilled, experienced in equity research, what are the best 'exit strategy' careers due to concern of automated trading and MIFID?

    Posted: 31 Mar 2019 03:07 PM PDT

    What are the key things to look for when reading financial statements?

    Posted: 31 Mar 2019 12:41 PM PDT

    I'm learning to read and analyze financial statements before I start investing. What are the some stuff I should look out for?

    submitted by /u/4ce0f5pades
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    With net income of $111.1 Billion, Saudi Aramco Confirmed as World's most Profitable company

    Posted: 01 Apr 2019 04:55 AM PDT

    Rakuten says to book $990 mln gain on Lyft investment

    Posted: 31 Mar 2019 08:57 PM PDT

    https://www.cnbc.com/2019/03/31/reuters-america-rakuten-says-to-book-990-mln-gain-on-lyft-investment.html

    TOKYO, April 1 (Reuters) - Japan's Rakuten said on Monday it will book a 110 million yen ($989.74 million) gain in the quarter through March on its investment in Lyft following the U.S. ride-hailing firm's listing last week.

    Rakuten become Lyft's largest shareholder with a 13 percent stake ahead of its IPO. Lyft shares closed 9 percent higher at $78.29 in their market debut on Friday, giving the loss-making firm a market capitalisation of around $22.2 billion.

    submitted by /u/coolcomfort123
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    Was there news about a coming recession before the last time interest rate inverted?

    Posted: 31 Mar 2019 02:11 PM PDT

    If this news is new this time then maybe investors will act differently this time and the coming recession won't be as bad as the past?

    submitted by /u/Zurevu
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    Investing and Subjective Theory of Value

    Posted: 31 Mar 2019 06:14 PM PDT

    In what ways have economists attempted to reconcile traditional objective stock pricing based on financials with the idea that the value of a thing is not determined by any inherent property of the good but instead by the importance an individual places on a thing?

    Wouldn't this mean that the current price of a stock is always the correct price? The words overpriced and underpriced are thrown around a lot in the investing community but are these views not based in a false belief in an inherent objective price?

    submitted by /u/Sejanes
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    Corporate stock buybacks

    Posted: 31 Mar 2019 01:56 PM PDT

    Stock prices are currently being boosted by corporate buybacks across the board it feels like from reading the news the last few months. Can stock buybacks cause a bubble to form if they aren't investing that cash into their business growth?

    submitted by /u/kinglallak
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    Accumulator ETF Question : How are dividend taxed?

    Posted: 01 Apr 2019 01:56 AM PDT

    Hello,

    I live in an European country that taxes the dividend that I get from my VUSA, so I get both withholding taxes from source, and another round of taxes from the local tax man. While I can do some offsetting with the tax man, it is a pain.

    Does anyone know if accumulator ETF pay any taxes on the dividend they receive before they put in into the ETF? For example, the following ETF

    https://www.ishares.com/uk/individual/en/products/253743/ishares-sp-500-b-ucits-etf-acc-fund

    So let say a US company pays 100 USD in dividend to both a vanguard ETF the iShares ETF. The vanguard ETF works like this

    - Dividend - 30% withholding tax= 70 USD paid to me

    - 70 USD - 30% (local tax) = 49 USD

    Accumulator (option 1 )

    - Dividend = 100 USD put back into ETF

    or

    Accumulator (option 2 )

    - Dividend - 30% withholding tax= 70 USD put back into ETF

    I know there are ways to reduce taxes with pension shelters, tax relief, etc. Let just assume that I done all of that and I live in Finland.

    submitted by /u/KL_boy
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    Gold Buyin as an Investment or Hedge?

    Posted: 31 Mar 2019 05:05 PM PDT

    Recently I have been reading/watching Ray Dalio and his thoughts on Gold. Seems he doesn't consider it an investment as much as he considers it a hedge for if things go south with the dollar. But I've never heard him REALLY break down WHY I should own it. He just kinda says "you'd be crazy not to own some gold." Why not own silver or platinum?

    I have been a Buffett fan for my investing life and I know Buffett isn't a fan of gold, but when someone as respected as Dalio is talking about it, my ears kind of perk up.

    What do you think? Any harm in holding 5% of the portfolio in gold like Dalio recommends? What about silver- how does it factor in? Do I sound like a crazy doomsday person if I'd want it buried in the backyard before I'd want to buy the Gold Index even though I'm 99.9% sure it is actually backed by real life gold?

    I heard a story recently of a family fleeing Germany in WW2 and transferring all of their wealth to the US by stitching gold into a suit and wearing it over. I can't imagine a world where any of us would be doing that today. Thoughts? Links to further reading?

    submitted by /u/wc1048
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    Is it better to invest all your money at once or over time?

    Posted: 31 Mar 2019 03:02 PM PDT

    I'm 19 and very new to stocks but I have about 10k that I want to start investing with. I was planning on doing about 10% in a bond ETF and the rest in growth ETFs. I'm curious, would it be better for me to put all 10k in now, or would it be better to put an initial investment of say $1000 and contribute a few hundred each month until I hit 10k. Or does it not make much of a difference at all?

    submitted by /u/throwaway_3021
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    WTF is up with Insulet? ($PODD)

    Posted: 31 Mar 2019 08:09 PM PDT

    They have a PE ratio of 1,901, and most DCF valuations give a price of 20 max. Why is it valued so high at $95?

    submitted by /u/Nitraus
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    Contributing to Roth 401k if there is no match?

    Posted: 31 Mar 2019 07:38 PM PDT

    I am currently young in my early 30s. I've maxed out my Roth IRA every year. I just found out my company offers a roth 401k ( I believe it's actually a 403b as it is non-profit). I was previously contributing to the traditional 401k because the company matches up to 3% but there is no match for the roth 401k contributions. Is there any benefit to switching to contributing from the traditional 401k to the roth 401k? Is it possible to rollover the existing traditional 401k into the roth 401k?

    submitted by /u/fazeman9
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    What do you look for in a annual report

    Posted: 31 Mar 2019 09:02 AM PDT

    I'm trying to build an excel document to visually break down a companies annual report. Like the balance sheet and other financials in the report. So I was wondering for the people of r/investing, what do you look at and focus on in a company's annual report ?

    submitted by /u/willam6174
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    Looking for some value investing business

    Posted: 01 Apr 2019 02:48 AM PDT

    I am looking for any business which is about to launch legit IEO / ICO . A detailed business model along with whitepaper is a must have criteria.

    submitted by /u/neeltrips
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    Why is price of Brent Crude a little off on Yahoo Finance?

    Posted: 31 Mar 2019 10:58 PM PDT

    Sometimes the difference is more than $1 as compared to quotes on other websites. Yahoo Finance quote

    submitted by /u/--red
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    What's the case to using an industry's projected CAGR as a discount rate for DCF?

    Posted: 31 Mar 2019 01:48 PM PDT

    Are there any investors who use this as their main way of calculating cash flows? Is there a reason why someone should or shouldn't use a projected CAGR in a discount rate or use it as their only discount rate?

    submitted by /u/howtoreadspaghetti
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    (Roth) Should I contribute to 2018 before April 15, or start now with 2019?

    Posted: 31 Mar 2019 09:52 PM PDT

    I have already filed taxes. I came into a small amount of money, $1300. I can still contribute up to 3,000 for 2018. Should I go ahead and contribute to 2018, or should I contribute to 2019? What is the benefit of either?

    submitted by /u/helpmeinvest38
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    Rebalancing across multiple retirement accounts

    Posted: 31 Mar 2019 02:03 PM PDT

    I have two IRAs, a 401k, and a brokerage account. I find it challenging to rebalance (and find myself not rebalancing) because I have multiple accounts with different funds.

    I imagine I'm not the only person who struggles with this. I'm wondering: what strategies do you use to rebalance across multiple accounts?

    submitted by /u/BillNye69
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    Chicken Soup for the Soul Entertainment Defies Gravity, UP 36% on Friday.

    Posted: 31 Mar 2019 08:05 AM PDT

    Why?

    Bloomberg: Sony Pictures Sells Stake in Crackle TV Unit to Chicken Soup for the Soul

    (Bloomberg) -- Sony Pictures Television is selling its ad-supported video content network, Sony Crackle, to Chicken Soup for the Soul Entertainment Inc. in a joint-venture agreement.

    Chicken Soup, an advertising-video-on-demand (AVOD) network operator, will own a majority stake in the new streaming video service to be branded Crackle Plus. Chief Executive Officer Bill Rouhana anticipates the venture "will more than double the revenue" for Chicken Soup "and probably do the same for Ebitda."

    More: https://finance.yahoo.com/news/sony-pictures-sell-crackle-tv-202741093.html

    Side comment: Chicken Soup definitely far outperformed the widely publicized Lyft IPO.

    submitted by /u/markyu007
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