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    Thursday, April 4, 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: 03 Apr 2019 05:16 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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    What has been the dumbest investment you have seen someone make?

    Posted: 03 Apr 2019 03:47 PM PDT

    Warren Buffett: Banks will be worth more money 10 years from now

    Posted: 03 Apr 2019 05:04 AM PDT

    https://finance.yahoo.com/news/warren-buffett-bullish-on-banks-jpmorgan-jamie-dimon-095717582.html

    Warren Buffett's Berkshire Hathaway (BRK-A, BRK-B) is bullish on the banks.

    "They're a business I understand, and I like the price at which they're selling relative to their future prospects," Buffett said in a wide-ranging interview with Yahoo Finance's editor-in-chief Andy Serwer. "I think, ten years from now, that they'll be worth more money. And I feel there's a very high probability I'm right."

    submitted by /u/coolcomfort123
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    Tesla Q1 2019 Vehicle Production and Deliveries

    Posted: 03 Apr 2019 06:08 PM PDT

    Link: http://ir.tesla.com/news-releases/news-release-details/tesla-q1-2019-vehicle-production-deliveries

    I don't think there's any way to slice this one they hit very low on estimates right near the bottom of the bear camp numbers. Notable S and X declines too.

    submitted by /u/ObservationalHumor
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    Carl Icahn Sold Lyft Stake Prior to Initial Public Offering

    Posted: 03 Apr 2019 11:48 AM PDT

    Best way to get long exposure to AI / automation?

    Posted: 03 Apr 2019 10:22 PM PDT

    Hi there, first time poster.

    I'd like to get more exposure to assets that would gain value if/when AI or automation succeeds in capturing a lot of value in the next 10 - 15 years.

    Would my best choice be simply buying QQQ? What other options do I have?

    Thank you

    submitted by /u/throw39284725
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    Oil prices fall as US crude stockpiles surge by 7.2 million barrels

    Posted: 03 Apr 2019 07:37 AM PDT

    Brent crude oil nearly touches $70 a barrel, hitting its highest level since November.

    OPEC-led cuts and U.S. sanctions on Iran and Venezuela support oil prices.

    American Petroleum Institute survey shows an unexpected rise in U.S. crude stockpiles ahead of official figures from the U.S. Department of Energy.

    https://www.cnbc.com/2019/04/03/oil-market-us-sanctions-opec-supply-cuts-in-focus.html?__source=iosappshare%7Ccom.apple.UIKit.activity.CopyToPasteboard

    submitted by /u/NineteenEighty9
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    Cash flow of China’s 11,566 LGFVs can only cover 40% of their repayments and interest this year, says CICC

    Posted: 03 Apr 2019 10:32 AM PDT

    https://www.scmp.com/economy/china-economy/article/3004310/china-local-governments-forced-rob-peter-pay-paul-honour

    Long and interesting article on Chinese local gov't debt issues and some of the growing issues that are not really being covered by the media in any given way. The only headlines we ever seem to get on China are "trade war" and "stimulus".

    Research is coming directly from Chinese banks, which would if anything, be less likely to discuss "bad news" or challenges in the Chinese econ. So I tend to trust the "bad" news from Chinese sources at least somewhat.

    Despite these growing problems, China's stock markets have been on a tear this year. Chinese markets have seen enormous inflows during q1 2019, some of which is likely the result of having their domestic indexes for both equities and bonds now included in MSCI indexes, which has attracted a significant flow from passive funds.

    Some data has ticked up in China (PMI data) in the last month, so there are some positive signs for the economy in the near term and possibly longer term, although the question is whether those signs really matter that much in the bigger picture amidst the bigger structural debt issues.

    submitted by /u/cbus20122
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    Best hedge to everything going completely south.

    Posted: 03 Apr 2019 11:40 PM PDT

    What are the best hedge investments to things going very wrong (fill in the blanks however you like)? Any suggestions outside of cash, gold or bonds? P.S. 100% not interested in Bitcoin.

    submitted by /u/Lasttimeworsttime
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    Vanguard Admiral Shares vs ETF index funds

    Posted: 03 Apr 2019 07:20 PM PDT

    Hey guys! Would someone mind explaining to me the difference between Vaguard ETF index funds vs Vanguard admiral shares mutual funds? I know the minimum investment for the admiral shares is $3000. I started investing in ETF index funds a few months ago and I'm getting close to $3000 in shares in a few ETFs.

    Would I be able to roll these over into admiral shares? If so, is there a benefit to doing this or should I just keep doing what I'm doing?

    Thanks for the help guys! Sorry if this was a dumb question, still trying to learn the ropes.

    submitted by /u/blaze43432
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    Learning to Invest: What are the reasons for ever NOT using the cheapest online broker?

    Posted: 03 Apr 2019 05:55 AM PDT

    Hello everyone, I'm starting to learn about investing and as I'm reading through investopedia and random articles, I have some additional questions so I'll be posting them here from time to time.

    Why would you NOT use Robinhood(US) / Degiro(EU)? Degiro doesn't have forex trading, fair enough, but if you don't want to do that, then I don't see any other reason.

    The biggest value of more expensive brokers is probably the advice offered, but literally every piece of content about investing is saying that no expert can predict shit anyways, so why would you care for that? Maybe for day-trading(as opposed to long-term investing), where you need to watch trends and whatnot, but then does it make sense to listen to some random broker who is paid from your commissions? I don't see how.

    Second thing might be research tools. This, I don't know much about, but first, surely there are 3rd party research tools good enough, and second, how complex research tools does an investor with a few thousand really need? Isn't it 99% about reading cashflow/earning statements and articles?

    Feel free to bust my bubble, thanks!

    EDIT: I'm from EU so the current plan is to use Degiro

    EDIT2: Thank you all for explanations. I've decided to use Degiro(discount broker in EU) until I have more than 10k, at which point I'll do more in-depth research especially regarding order execution and then go more pro.

    submitted by /u/MrNiemand
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    Hedge Funds Are Loading up to Bet Against Lyft

    Posted: 03 Apr 2019 11:38 AM PDT

    I probably ended up being a victim of an online scam while I was looking for a flat to buy. Luckily I got it on time but now I want to avoid that someone else could be frauded. What shall I do?

    Posted: 04 Apr 2019 02:19 AM PDT

    [It is my conclusion after having matched several elements, so I will avoid writing down names for now]

    A few days ago I found the adv of a flat on sale in Barcelona. The price was great so I got in touch with the owner. She got me back explaining a bit who she was - a doctor who had to move in the UK for work - and she told me she hadn't enough time to handle the selling process so she would have passed it to an international real estate agency allegedly based in the UK.

    I wrote an email to the contact she gave me and the agent wrote me the following email:

    The property can be reserved in your name for a private visit; you further have the step-by-step description of the manner of scheduling a visit:
    \* In order to start the procedure, we will need the following details from you:

    # Your complete name**:**

    # Complete address:

    # Telephone number:

    # Fax number (if available):

    \ The next step is filling in a pre-contract for setting the private visit. I would mention that this contract shall not bind you by any means to purchase the property, only the terms of the transaction are specified in this document.
    *
    * You, as a potential purchaser, shall receive a notification containing a transaction identification number which shall give you access to the privatea area of the clients on our website.
    **\
    In your private area, you shall have access to all the details of your transaction, as well as the pre-contract signed and stamped by us.
    *
    * At this point, you, as potential purchaser, with an exclusive purchasing right, shall have to constitute an earnest money deposit at our agency, within maximum 72 hours from generating the contract. The payment must be made by bank transfer to one of the agency's trust accounts.The total value of the earnest money deposit has been set to 2,5% of the total purchasing price, i.e. € 4.275. Please note that the earnest money deposit is a deposit meant to prove your interest in purchasing the property, and should not be mistaken for a down payment for purchasing the property.* After initiating the transfer, you shall have to send the scanned document from the bank to our agency, together with the contract signed by you.
    **\
    After your payment is confirmed in one of our bank accounts (it usually does not exceed 2 working days), the visit shall be set, and I, as an agent in charge of your transaction, shall be delegated to organize the visit. I mention that I shall be accompanied by a legal representative of the owner. During the private visit, you can check all the property-related aspects, including the accompanying juridical documents.
    After visiting the property, there shall be 2 possible situations:
    *
    1) In case you decide not to purchase the property, the earnest money deposit shall be reimbursed into your bank account on the same day you visit the property. In this case, the pre-contract shall become null&void. All fees for our services are entirely paid for by the owner.2)** If you decide to buy the property, all the documents shall be signed in the presence of a local notary, and we shall authorize the release of the earnest money deposit to the owner, as a down payment for purchasing the property. They shall also set a certain deadline within which you shall have to pay for the rest of the amount in order to cover the entire price of the property. In this case, you will pay the notary fees; the fees for our services are completely paid for by the landlord who has hired us.

    So she was asking 4275€ of deposit to arrange a visit.

    I went on their website and the page looked terrible. an international real estate with such a horrible page does not sound right to me. Therefore I inspect the page and in the header i found the indexing tags muted:

    <meta name="Description" content=".">

    <meta name="robots" content="nofollow,noindex">

    <meta name="robots" content="noindex">

    <meta name="googlebot" content="noindex">

    <meta name="robots" content="NOODP">

    on top of that the website was using an http insecure connection.

    I couldn't even find any information about them googling their name, and the address provided in Street View didn't take me to a building I can say it looks an office.

    I even did few other tests to get more evidences.

    They got my data because I react naively without reading through the email (at first glance I thought they were just talking about their fees after the selling) .

    Quite frankly I don't care that much about myself, I'm sure I'll get by, but the entire process was very well thought that someone else could being caught.

    It is a suspect of course, but still...

    Question is, what shall I do know to avoid that?

    Thanks

    A.

    submitted by /u/andrixb85
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    Ethiopia report calls on Boeing to confirm that control issues are fixed before 737 Max 8 flies again

    Posted: 04 Apr 2019 01:46 AM PDT

    What do you think of Andreessen Horowitz renouncing its status as a venture-capital firm to be able to invest in riskier assets, including raising 2 Billion (Yes 2B!!!) USD venture fund for crypto/blockchain investments.

    Posted: 04 Apr 2019 12:19 AM PDT

    Negative Index?

    Posted: 03 Apr 2019 07:42 PM PDT

    Anticipating a drop in DJIA,S&P, etc. thinking of putting a small amount, $10,000, into an inversely related index fund. Is that crazy? Or am I thinking ahead of the curve?

    submitted by /u/itsthebdubb
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    Need help understanding etrade margin calculator

    Posted: 03 Apr 2019 05:10 PM PDT

    Here's a screenshot of an example trade I put up, just to understand what each of these numbers mean.

    https://imgur.com/a/DbkPoEY

    Can someone go through this and correct me if I'm wrong? I want to know how much margin loan i'd be using if I were to execute this trade, so I can calculate the interest I'll be charged. Also, is there a way to check how much margin interest you've been accruing so far on etrade?

    (This is a fake trade I used to purposely spend a lot of margin)

    thanks!

    1. This is how much of my existing stocks thats available as marginable assets
    2. Stocks that I own that cannot be used as margins.
    3. How much cash I have in my account right now
    4. The amount I can withdrawal at this instant, and pay back later.
    5. Looks like same as my cash available for withdrawal
    6. -72k in marginable securties if i make this trade. Is this same as a margin loan, being charged with 8% interest?
    7. I don't understand this part. Does this add to the above?
    8. Where is this number coming from?
    9. -36k in withdrawal amount
    10. 10
    11. 37.8k remaining in margin. Can I still make a trade worth 37k?
    12. does this add to the above? So i can make 37k + 18.9k total trades even after AMZN?
    submitted by /u/watermelontraded
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    When to sell or buy index funds

    Posted: 03 Apr 2019 10:59 PM PDT

    I'm a little lost. If I understand correctly index funds settle at the end of the trading day. So the price doesn't change during the day. So when is the best time to sell. When I check the account and see it says +.05% for example. Is that yesterday numbers or real time?

    submitted by /u/IGuessSomeLikeItHot
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    Tithing on capital gains and dividends

    Posted: 03 Apr 2019 01:10 PM PDT

    Do any Christians add to their giving based on gains from the stock market? If you sell stock for 20 dollars that you bought for 10, do you add a dollar to your church tithe, favorite charity, buy a stranger some lunch, etc.? What about dividends?

    submitted by /u/aptosshayds
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    30-year mortgage rates tomorrow and Friday

    Posted: 03 Apr 2019 10:33 PM PDT

    I am in the process of locking in a fixed rate, 30 year mortgage loan. The thing is, I need to lock in the rate soon and get the loan paperwork started. Rates have gone up about .125% in the last week. I know mortgage rates are tied to ten year treasury notes, so I'm now trying to read my crystal ball and predict what will happen to TNX tomorrow (Thursday, April 4) and Friday. If I have compelling reasons to believe rates will dip on Friday, I'll probably take the chance and wait until then to lock in my rate.

    I'm aware of USA-China trade talks making progress, a relatively weak jobs report, and a bullish stock market recently. What other factors would you look at in my situation and what would you do? Thank you!

    submitted by /u/TinaElwy
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    Global investors haven’t bought enough Asian stocks, Fidelity says

    Posted: 03 Apr 2019 09:59 PM PDT

    https://www.cnbc.com/2019/04/04/investing-fidelity-says-portfolios-need-more-china-india-asia-stocks.html

    "While Asia has strong economies, big ones like India, China, even the ASEAN region, showing high rates of growth, they're very under-allocated when it comes to their presence in global equity portfolios," Medha Samant, investment director at Fidelity International, told CNBC on Wednesday.

    Emerging markets have been on a tear this year. The emerging markets index under global index provider MSCI has jumped about 12 percent since the beginning of this year.

    submitted by /u/coolcomfort123
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    Goldman Sachs Wants to Pay Students $100,000 to Tackle Wall Street’s Technology Challenges

    Posted: 03 Apr 2019 11:36 AM PDT

    Russian Government Bonds

    Posted: 03 Apr 2019 08:24 PM PDT

    I'm looking at purchasing some Russian government bonds. I'm based in the US. Do any of you know any brokers that would allow me to purchase Russian government bonds?

    submitted by /u/UthmanAziz
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    (CHAP) Chaparral Energy

    Posted: 03 Apr 2019 08:11 PM PDT

    So I'm not a great security investor, but I like some educated gambling. My analysis usually doesn't go much further than looking up a company's latest 10K on EDGAR (SEC). But I've done a fair bit of research on Chaparral and I can't for the life of me figure out why it's trading so low. This is either an investment of a lifetime or I just threw away a lot of money.

    Market Price: fluctuating between 5.00 and 6.00 (currently 5.09) I bought at 5.07

    Book Price: (total assets - total liabilities)/common stock outstanding = ~24.00

    Already I'm smelling a deal. EPS this year was something like 0.14 cents, so it wasn't a loss.

    Price earnings ratio was something like 8 or 9. The oil/natural gas exploration/drilling sector has a norm of 20-25 PE ratio.

    They have more than enough current assets to cover debt interest etc. I realize we have an abundance of oil in the economy right now, but the price just does not seem to fit.

    Any insights?

    submitted by /u/ZordonTheGray
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    FT says the view of a firm "Yield curve nonlong related to economic growth"

    Posted: 03 Apr 2019 06:50 AM PDT

    https://www.ft.com/content/15d4048e-552f-11e9-91f9-b6515a54c5b1

    Are they glossing over the amount of corporate debt? When those interest rates rise only one thing happens to companies with debt; bye profit.

    Conversely; AT&T huge debt but almost 7% dividend. Interest rates rise, dividend falls, stock sky rockets. Or will it?

    submitted by /u/CookhouseOfCanada
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