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    Tuesday, April 9, 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: 08 Apr 2019 05:21 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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    The US Treasury is going to add an additional $11B to European products in countermeasures towards Airbus' subsidies negatively affecting the US

    Posted: 08 Apr 2019 04:08 PM PDT

    Source

    Here are the list of the products being tarriffed

    submitted by /u/jcarmona24
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    Pinterest sets IPO terms below last private valuation

    Posted: 08 Apr 2019 07:40 AM PDT

    https://www.axios.com/pinterest-ipo-terms-private-valuation-430d186d-56d5-4a07-acc0-dda415b11734.html

    This company is going to get bulldozed by Instagram. Reminder that within the same days Pinterest officially filed to go public, Instagram conveniently leaked this upcoming feature: https://techcrunch.com/2019/02/22/instagram-make-collection-public/

    Bazinga.

    submitted by /u/panoramicsummer
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    Recent rush of stock prices

    Posted: 09 Apr 2019 02:26 AM PDT

    Ive been researching for awhile now. I am slowly entering the market. Mostly in ETFs to keep a safe diversification foot in first. Now what I have noticed is a lot of companies since 2015 2016 have increased in price by a very large amounts (sometimes triple). When looking at the companys, there isn't a big introduction of a service, acquisition, etc to explain such an increase.

    To me, this says a lot of over valuation. It makes it difficult to look for companies that will have real growth. The only one I could find was CCI as an alright pick. Does anyone else feel the same way? Maybe I'm not looking at enough small caps.

    submitted by /u/CookhouseOfCanada
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    Basic Cash Management ETFs

    Posted: 08 Apr 2019 03:36 PM PDT

    A recurring post in this sub is what to do with cash I have sitting around as "dry powder". Instead of answering every single one of them. I thought of posting it here for all to see:

    Here is a list of ETFs that qualify you if you want to collect some yield on your cash with little market / IR risk.

    Cash Management with higher yields: These tend to move daily up and very little correlation to the rest of the market. JPST / MINT / FTSM / NEAR / JMST (Ultra Short term Muni) / ULST / ICSH

    US Government Short Term: These will move with treasuries, so slightly more volatile as you extend maturity/duration than the ones listed above, though there are some tax benefits.

    Ultra short term: GBIL / BIL / SHV / CLTL

    Short Term: VGSH / SCHO / SHY / SPTS

    Muni Short Term: SUB / SHM / JMST

    Short Term Corporates and Aggregate Funds: Higher correlation to equities but generally higher yields.

    Aggregate: BSV, BBSA, JAGG

    Mortgage Market: FTSD

    Corporate: SPSB, SLQD, VCSH, IBDK, BSCK

    OVERALL: You should try to look at products that have enough tight liquidity for a round trip investment if you plan to hold them for a shorter period of time.

    For longer periods of time, you may want to focus on shorter cost / tax advantages.

    VGSH / BSV / VCSH all vanguard products. Though all other issuers have been joining the management fee compression game on the rush to zero!

    Source: ETF market maker

    submitted by /u/xmCokeZero
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    Are Capital Gains/QDI Taxation Really This Good?

    Posted: 08 Apr 2019 10:04 PM PDT

    The tax bracket for capital gains of 38k is 0%. So suppose your unemployed, $0 income. If you sell and profit $38000 from shares, is it taxed at 0%? (Assuming no state/local taxes) And you can continue to do this every year to get 38k untaxed?

    submitted by /u/BobbyBryce
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    FWIW in economic commentary: Porsche sales are down 20% in China, its largest market.

    Posted: 09 Apr 2019 03:38 AM PDT

    Maybe they're waiting for the electric Taycan. Maybe the new 911. Or maybe something else? Anyway, just thought it was interesting news.

    https://newsroom.porsche.com/en/2019/company/porsche-deliveries-first-quarter-2019-17450.html

    submitted by /u/nmyunit
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    Macroeconomic prediction thread - 10 year view - where are we heading?

    Posted: 08 Apr 2019 07:12 PM PDT

    I'd like to see what the wisdom of the crowd has to say about this topic. Talk about whatever you want within the general topic but I've listed some example questions to get the ball rolling if you wish to address specific points:

    1. Do you think there will be a recession within the next 10 years?
    2. What countries are going to see the greatest growth?
    3. What developed countries are going to to see the least growth?
    4. What is your broad asset allocation for the next 10 years?
    5. How will markets react to the Trump presidency not being elected for a 2nd term?
    6. How will markets react to the Trump presidency being elected for a 2nd term?
    submitted by /u/123lac
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    Boeing Stock and Outlook From Here

    Posted: 08 Apr 2019 02:23 PM PDT

    Hi All,

    Did a pretty thorough search and didn't find much at all on Boeing and it's outlook due to the latest 2 tragic plane crashes recently. My question is what's the overall sentiments here on the stock now? It's been a big winner for the last several years, however while I know their overall a great company and a duopoly does this issue with the 737-8 Max give you all pause or is it a buying opportunity? Any and all feedback, thoughts and comments are welcomed. Thanks.

    submitted by /u/Laoban8
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    Another rubbish quarter for investment banks?

    Posted: 08 Apr 2019 02:33 PM PDT

    Just got Refinitiv's latest stats on Global IB in 1Q.

    GLOBAL INVESTMENT BANKING FEES TOTAL US$22.8 BILLION DURING FIRST QUARTER 2019 $120 Worldwide investment banking-related activities during the opening three months of 2019 generated an estimated US$22.8 billion in fees, a 14% downtick compared to the first quarter of 2018 and the weakest first quarter since 2016. The Americas led all other regions by share of fees, accounting for 52% of all fees or US$11.8 billion. The EMEA region totaled US$5.3 billion in fees, posting a 25% decline compared to a year ago driven by a 33% downtick in fees from France. Fees in the Asia-Pacific region fell by 14% to US$4.4 billion due to tepid activity in China and Hong Kong. IB fees generated in Japan hit US$1.3 billion, down 13% compared to the first three months of 2018.

    ECM FEES DOWN 41%; M&A DOWN 8%; LOANS DOWN 16%; DCM FLAT COMPARED TO 2018

    But you wouldn't be able to tell, looking at the stock price of Morgan Stanley or Goldmans!

    submitted by /u/shane_stockflare
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    Private shares - capital gains question

    Posted: 09 Apr 2019 02:57 AM PDT

    Can someone explain capital gains works for private shares going public? For example, if i have private shares of Pinterest that i bought say 4 years ago and it goes public this year, do those shares become long-term or short-term capital gains if i decide to sell right after they shares come off the 180 day lock-up? Thx

    submitted by /u/willjkim
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    Anyone use WealthSimple Trade?

    Posted: 08 Apr 2019 05:04 PM PDT

    It seems to be a commission free trading platform which looks ideal. Anyone use it? How is it? Any reason to avoid it?

    submitted by /u/red_shirt_bistr0
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    Coupon rates for government bonds that refinance at negative yields?

    Posted: 09 Apr 2019 02:39 AM PDT

    German bund yeld

    So the yields on several government bonds have turned negative, so what does it mean to refinance at negative market rates when bonds mature?

    Do coupon rates also turn negative when they refinance, since the yield needs to be close to the coupon rate?

    submitted by /u/ScandiSom
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    Is Costco too expensive right now with PE of 30?

    Posted: 08 Apr 2019 07:10 AM PDT

    what are their growth potential?

    submitted by /u/Aboly
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    Investing in US ETFs (from Mexico)

    Posted: 08 Apr 2019 07:41 PM PDT

    I'm interested in investing on Vanguard VTSAX but I'm in Mexico, so I have a few questions.

    • Can I open an account in US Vanguard as an alien?
    • How can I find Mexican brokers that can give me access to VTSAX? I've searched many but haven't been able to find the answer.
    • I've found two ETFs that are indexed one to the NASDAQ and the other one to the Dow Jones... Would you recommend buying ETFs that hold stock from these indices? (as opposed to buying VTSAX which is total market shares?)

    Thanks in advance.

    submitted by /u/rotsknoll
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    I receive Restricted Stock Units (RSU's) as part of compensation. Just discovered that each RSU granted by the company dilutes value of others. Is this typical policy?

    Posted: 09 Apr 2019 12:59 AM PDT

    I had assumed that the number of stock units was more or less fixed corresponding to x% equity in the company. However, digging through the financials I see that employee compensation RSU's and most of the series funding rounds are fueled with stock units generated out of thin air, diluting all others that currently hold the stock.

    Is fairly common for late stage companies to continually increase the number of shares without awarding existing owners more shares to compensate them (as in the case of a split)? It seems odd that a company can arbitrarily devalue your stake. I suppose the restoring force against doing this is that if it was well known the company does this, then very few people would buy the stock or heavily discount what they're willing to pay relative to the present financial fundamentals.

    submitted by /u/1e6throw
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    ETF without social media?

    Posted: 08 Apr 2019 09:36 AM PDT

    Hey there. I'm looking to put some of this years $5500 in my IRA into a tech ETF. At the moment, I have shares of QQQ. It has done well, but I don't want to invest in social media, and Facebook is a large percentage of that fund.

    Does anyone know of an ETF that has tech companies without social media? I've done some digging around but couldn't come up with much.

    Thanks

    submitted by /u/ZeSvensk
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    Pinterest down-round to be a DOOM for engagement dependent B2C’s

    Posted: 08 Apr 2019 11:39 PM PDT

    With an interesting product albeit funded with top engineering salary and a user base that shifts perception constantly as culture evolves, will this company be doing so great in 3-5 years? It doesn't seem so.

    Nearly $1 billion in revenue funded nearly exclusively through ads is a double edged sword — an engaged user base can sustain that, but on the other hand many buyers of these ads aren't just product marketers, they are data agencies that think they can find utility and insight for their clients from Pinterest user preferences.

    The effective public down-round brings Pinterest back to valuation levels seen in 2017 amidst a boom in venture funding that lifted similar startups multiples ahead. Uber's down-round was the culmination of many things imploding within the company culture that were affecting the business — this one comes at a time where competing products like Instagram Shopping and trends like app consolidation are putting extreme pressure on companies that depend on devote user engagement like Pinterest. Thoughts?

    submitted by /u/Elephant__Hero
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    Any rumors about when BYND will IPO?

    Posted: 08 Apr 2019 10:57 PM PDT

    I've been saving money instead of buying other funds/stocks since Beyond Meats announced their intention to offer shares publicly.

    Since then, I haven't heard any updates or rumors about expected dates.

    Has anyone got their ear to the ground on this?

    https://www.nasdaq.com/markets/ipos/company/beyond-meat-inc-977310-88416

    submitted by /u/sogladatwork
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    Mutual fund closings/re-openings

    Posted: 08 Apr 2019 03:12 PM PDT

    Is there any way to receive notice of mutual fund closings or re-openings?

    submitted by /u/D_Y_N_A_S_T_Y
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    Determining the present value of an accumulating ETF

    Posted: 08 Apr 2019 02:24 PM PDT

    Suppose that on 1 January 2018 you invested in IWDA, an ETF that re-invests dividend instead of distributing it.

    How can you determine its value today; i.e. the sum of the IWDA price and accumulated dividend, reduced with fees?

    So far I haven't found a definitive method to trace a) the value of the dividend upon accumulation, b) when the dividends were re-invested, and, consequently, c) how much they are worth now.

    Cheers.

    submitted by /u/cp6qd8c4
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    Why invest in Bonds over CDs in an IRA?

    Posted: 08 Apr 2019 06:44 AM PDT

    Is there a specific reason why it seems that people recommend investing in Bonds over traditional CDs within a traditional IRA retirement account?

    I'm assuming it is for lower taxation in the long run, but individual CDs of short duration seem simpler to me, and free up my money quicker, if I want to invest in stocks after a month or 2.

    Thanks for any advice.

    submitted by /u/FinanceAfter50
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    Taxable Brokerage Account

    Posted: 08 Apr 2019 07:20 PM PDT

    Quick question - If you buy and hold within a taxable brokerage account there will be no taxes owed, correct? You would only be taxed if/when you sell? Secondly would DRIPing the dividends also prevent any taxable event? For example a buy and hold 100 shares of MSFT and set the dividends to reinvest - no tax obligation until I choose to sell?

    submitted by /u/pnwjbird
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