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    Saturday, June 1, 2019

    Daily Advice Thread - All basic help or advice questions must be posted here. Investing

    Daily Advice Thread - All basic help or advice questions must be posted here. Investing


    Daily Advice Thread - All basic help or advice questions must be posted here.

    Posted: 01 Jun 2019 05:15 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.

    Please consider consulting our FAQ first - https://www.reddit.com/r/investing/wiki/faq

    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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    SAAS stocks just keeps going higher and higher

    Posted: 01 Jun 2019 10:26 AM PDT

    The market keeps going down but these low floats SAAS stocks TWLO, MDB, WIX, TTD, SHOP, VEEV, TEAM, HUBS just keep going higher. Some of them are trading at P/S of 26/28 times and have no profits. Most of them have gone straight up from 100-500% in last 12 months

    TWLO diluted last week 5% week but stock goes higher.

    VEEV, SHOP trading at P/S of 25+

    Any idea what is going on with these?

    I just know it's not sustainable and the bubble will burst and they all will lose 30-50%

    submitted by /u/nycbay
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    If Diversification is one of the top rules of investing, why not put 100% in an MSCI World ETF?

    Posted: 01 Jun 2019 10:23 AM PDT

    Wouldn't that be the best option, at least regarding diversification?

    Noob investor.

    Thanks!

    submitted by /u/bozakodin
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    US 10-year yield collapses to 2.16% as Trump’s surprise Mexico tariffs stoke recession worries

    Posted: 31 May 2019 11:28 AM PDT

    Why is Tangible Book Value Dropping for US Stocks?

    Posted: 01 Jun 2019 08:46 AM PDT

    I decided to take a look at the holdings of the US Total Market fund that Vanguard offers and I was shocked to see tangible book value dropping for so many of the top stocks! Tons of the top holdings have lower tangible book value in 2018 than in 2015! Why is tangible book value dropping for these profitable companies?! Are they making terrible acquisitions? This actually makes me pretty nervous about holding these companies. I thought companies should be growing book value over time if they are profitable and not paying everything out in dividends/buybacks?

    Examples:

    MSFT: 58.3 billion in 2015, 38.9 billion in 2018.

    AAPL: 110.3 billion in 2015, 107.1 billion in 2018.

    JNJ: 23.7 billion in 2015, NEGATIVE 18.3 billion in 2018.

    VISA: 6 billion in 2015, NEGATIVE 15.2 billion in 2018.

    PG: Negative 8.2 billion in 2015, negative 17.7 billion in 2018.

    CSCO: 32.8 billion in 2015, 8.9 billion in 2018.

    PFE: Negative 23.9 billion in 2015, negative 25.2 billion in 2018.

    MA: 3.3 billion in 2015, 1.5 billion in 2018.

    I could obviously go on and on down the list but roughly half the companies in the top 30 holdings (which makes up a huge percentage of the total market) have been LOSING tangible book value over the last four years. What is going on?

    submitted by /u/TheHypeKiller
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    Google Trends, market timing, and the 2008 Recession.

    Posted: 01 Jun 2019 10:06 AM PDT

    Interesting take on recessions on Google Trends.

    The S&P 500 peaked in October 2007. But you can see people started searching "recession" in September 2007.

    What's even more interesting is the search term "recession" peaked in January 2008, but the market hadn't even dropped anywhere near where it was in March 2009.

    You can see with the market selloff in December 2018 "recession" term was searched again.

    But in May, the term search actually went down during all this tariffs nonsense.

    Washington D.C. searches for the term the most.

    What's also worth noting is locations where real estate was hit hardest in the 2008 financial crisis: Phoenix, Las Vegas, etc. search the term "recession" more often than other states. Maybe we can assume people who live in areas that were hit hardest by the financial crisis tend to be more bearish.

    Cite: https://trends.google.com/trends/explore?date=all&geo=US&q=recession

    submitted by /u/askingbecause
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    Diversifying ETFs globally

    Posted: 01 Jun 2019 03:34 AM PDT

    Hello Investors! I am a quite new investor and i live in europe. I would like to build a balanced portfolio mainly composed of ETFs and i am looking to know from you guys the percentage you allocate to different countries. With the US almost always doing better than other economies, and also with the fact that i am not living in the US. Is it wise for me to go 100% S&P 500 and that's it, assuming that companies in s&p are well exposed to the world?

    submitted by /u/aswilam
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    Outcome of Mass Migration to Index Funds

    Posted: 01 Jun 2019 01:16 AM PDT

    tl;dr if everyone were to buy index funds, that would open up more opportunity for professional money managers and individual investors to have more chance at beating the market, ultimately reducing the amount of index fund investors while possibly increasing professional investor return performance

    longer tldr @ end

    ---

    so ive recently seen lots of people in discussions and blogs getting worried about impending mass-migration to index funds, typically blaming groups like FIRE etc that promote the simple investing into index funds like VTSAX, SPY, whatnot, rather than individual stock picking or buying mutual funds and investment company equity. the people that seem to be getting worried about this claim that if everyone was to only buy index funds, their prices would skyrocket and they'd become too "expensive", reducing their efficiency and total return. I see people that have some amount of their portfolio in a Total Market Fund, and then some of their portfolio in a similar Total Market Fund offered by another, different company (Vanguard/iShares/Blackrock whatever). while this would somewhat make sense if the primary company were at risk of collapsing, these people state that it is in case of one of the funds becoming too expensive due to an influx of passive investors.

    these kind of discussions remind me of Charles D. Ellis' 1995 article The Loser's Game and his subsequent '98 book Winning the Loser's Game. Ellis explains that during the mid-twentieth century professional investors were doing bloody well at beating the market, and the average Mr-and-Mrs-spare-cash were more than happy to invest with mutual funds and investment companies in order to retrieve these returns. although once people realised that there was money to be made in stock picking, many more small-time investors had a go at picking individual stocks and studying to become professional money managers. this increased influx of professional investors is what creates the Efficient Market Hypothesis, theorising that, on average, company stock prices are where they should be based on all publicly available information. This makes it extremely difficult to beat the market since you have exactly the same information about a company as anyone else. Ellis claims that, unless one is intent on becoming a professional investor in order to stock-pick themselves, individual investors could do much worse than "joining the market" via purchasing shares in an index fund or the like.

    evidently, FIRE communities advocate index funds as a way to retrieve [pretty darned good] stock market returns over the long run with relatively passive investing. some people are worried that increased numbers of investors [due to increased numbers of people joining these communities] will figure the benefits of index funds, thus retarding their efficiency. I include Ellis' theories that increased numbers of money managers reduces potential for outstanding portfolio performance; though I believe that an extremely drastic increase of index fund investors would then do the opposite and allow for the [reduced number of] professional money managers to come in and have more chance at garnering increased portfolio performance. this would evolve much like the increased numbers of passive investors in mutual funds allowed for professional managers to start their own successful funds a few decades ago.

    In short (though more of a longer tldr): in the late 1900s, money managers were doing very well at beating the market and retrieving high returns; this introduced many more professional money managers as they all wanted some of the action; increased number of professionals creates an Efficient Market and reduces potential for beating the market and achieving outstanding returns; many are currently realising that professional money managers are achieving substandard returns relative to the index total market; passive investors thus flock to low-cost index funds; some in FIRE and similar community discussions state that they are worried that mass migration to index funds will reduce their accuracy and efficiency of the market; i believe that mass migration to index funds will allow for professional money managers to come back into the picture and will allow for further possibility of them garnering increased returns; this creates a cycle of money managers being discouraged and a flock to index funds that become inefficient then a flock to money managers and a flock to index funds with probably many other factors like bond markets and interest rates/taxes etc affecting returns available that i dont know anything about though honestly i think we have nothing to worry about if we all buy index funds

    thoughts?

    submitted by /u/whalechasin
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    At what point do you just say "fuck it" and sell your stocks for a loss?

    Posted: 01 Jun 2019 01:27 PM PDT

    Justice Department Is Preparing Antitrust Investigation of Google

    Posted: 31 May 2019 05:43 PM PDT

    US oil falls 5.5% to $53.50 per barrel on fresh trade worries

    Posted: 31 May 2019 11:40 AM PDT

    Oil slumped over 3% on Friday, on track for its biggest monthly drop in six months, after U.S. President Donald Trump stoked global trade tensions by threatening tariffs on Mexico, one of the largest U.S. trade partners and major supplier of crude oil.

    Brent crude futures fell $2.34, or 3.5%, to $64.53 a barrel. U.S. West Texas Intermediate (WTI) crude futures fell $2.40 to $54.19 a barrel, also a 4.2% loss.

    Session lows for both contracts were the lowest since March 8.

    https://www.cnbc.com/2019/05/31/oil-market-us-tariffs-on-mexico-iranian-oil-sanctions-in-focus.html

    submitted by /u/pipsdontsqueak
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    What's your 2019 strategy?

    Posted: 01 Jun 2019 01:03 AM PDT

    ELI5 shares outstanding vs shares offered

    Posted: 01 Jun 2019 01:30 PM PDT

    Title. Thank you in advance!!!

    submitted by /u/ElphGod
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    Thoughts on offshore drilling stocks?

    Posted: 01 Jun 2019 06:36 AM PDT

    Market has been crushed the past few years. Transocean trading at 6.20. Thoughts on this market over the next 2-5 years for investing?

    submitted by /u/Bonzo101
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    [Question] What's a good way to prevent losses during a recession that might or might not occur in the following years

    Posted: 01 Jun 2019 02:55 PM PDT

    So, pretty self explanatory question. I have part of my scholarship invested in exclusively an s&p 500 fund. What would be some nice way to reduce risk during the next three or four years in case a recession happens.

    Also, I will use this question to ask. What are some recommended readings about economy and stocks? Any level below college entry level will do, a few numbers are not a problem.

    submitted by /u/CarlosElMago
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    Schwab robo-advisor opinions

    Posted: 01 Jun 2019 02:51 PM PDT

    Wife and I are looking for a less hands on investment approach, without paying a ton of fees to have our funds managed.

    So far we have been sticking to low cost index funds (generally S&P 500 funds), as well as target date retirement funds (2045/2050). We are both mid/late 20's so we have a lot of time to invest.

    We have been hearing a lot about the Schwab Robo-advisor, and that the lower tier option has $0 management fees. Is this a viable low fee investment option, or a gimmick with less than stellar returns?

    submitted by /u/FishHikeCamp
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    This is madness!

    Posted: 01 Jun 2019 01:55 PM PDT

    First a trade war with China, then Mexico, and now FAANG.

    Mix that with all the pressure of lowering rates and it's like the administration wants a higher and higher stock market pricing a weaker and weaker economy.

    Something is going to give.

    submitted by /u/Moonwardly
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    I am down a jaw dropping 20% in one year..

    Posted: 31 May 2019 11:01 AM PDT

    I fell into the hype of Chinese "garbage stocks" down 50% on YY and IQ and down 35% on JD. also fell for the pot hype train and down 20% on ACB. Also got crushed by CBEO down close to 30%. These stocks were half to portfolio

    I guess I should stick to index funds?

    submitted by /u/thelostgeologist
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    China Threatens Sweeping Blacklist of Firms After Huawei Ban [Bloomberg]

    Posted: 31 May 2019 04:34 AM PDT

    "China said it will establish a list of so-called "unreliable" entities it says damage the interests of domestic companies, a sweeping order that could potentially affect thousands of foreign firms as tensions escalate after the U.S. blacklisted Huawei Technologies Co."

    At this point in time this is just posturing since they haven't actually done anything yet and the announcement is by the state media and not official government spokespeople - although in China the media is run by the government. However what's interesting about this from an investing point of view is the following: "[the scope of Beijing's shit-list could extent] even non-American suppliers that have cut off China's largest technology company. Those run the gamut from Japan's Toshiba to Britain's Arm."

    In other words, the potential hit on equities if this latest escalation from China were to be realised might go beyond US companies and into Europe / Japan. With this latest move, the trade war rhetoric is expanding internationally. If the escalations keep coming there is a risk for tech stocks globally stocks to take a big hit, not just Chinese and US companies.

    https://www.bloomberg.com/news/articles/2019-05-31/china-to-set-up-unreliable-entity-list-after-u-s-huawei-ban

    submitted by /u/iced_maggot
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    How to tell if an entity is a beneficial owner?

    Posted: 01 Jun 2019 09:23 AM PDT

    Please guys, explain it all. Also, where can I find such information in sec.gov

    submitted by /u/dottedsquares
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    Seeking Alpha Article Spreads Rumor, Pumps Stock 400% Then Gets Deleted

    Posted: 31 May 2019 11:53 AM PDT

    FAKE NEWS? OBLN Gets Pumped On Seekingalpha

    According to Tanzeel Akhtar of Benzinga, the reason for OBLN's sudden price increase was due to a rumor started on SeekingAlpha which claimed Johnson and Johnson was considering buying OBLN for $8.00 per share.

    The article has since been removed, which raises some red flags. Also, if you go to OBLN's website and look at their news page, you don't see anything current. In fact, the last time OBLN reported a material event was almost 1 year ago..

    https://imgur.com/a/EZ9WAiK

    OBLN manufactures a novel weight loss product, what they call "The Obalon Balloon System", an inflatable balloon that stops you from eating.

    Video describing The Obalon Balloon System

    Honestly, before watching this video, the whole thing looked like a complete scam, but after watching it, you can kind of see how it might work– key word there might. This is America, and if that's what you wanna do, then that's what you wanna do.

    What is open to debate is whether this rumor is true. Did Johnson and Johnson put in a bid at $8 per share? If they did, why would the OP remove the post? Seems pretty strange don't you think? As it usually goes with online rumors in the stock market, there was no source, so we can never truly be sure what happened. If anybody can find the original article, please send it to us, we would love to read it. Until the time everyone, enjoy the rest of your day[

    source article: https://interactiveswingtrading.com/2019/05/31/fake-news-obln-gets-pumped-on-seekingalpha/

    submitted by /u/Stocks45
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    What are the odds the next recession is a minor one?

    Posted: 01 Jun 2019 07:36 AM PDT

    It seems like the assumption is that the next recession is going extremely painful.

    Interest rates are all time low, debt is all time high and you have trading instability all over the world. Oh and China.

    I strongly believe it's going to be a very very serious recession. It could be worse than 2008, if contagion spreads from China.

    submitted by /u/sunstersun
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    Buying all of the available company's stocks

    Posted: 31 May 2019 01:50 PM PDT

    LRT.UN has a market cap of around $200k. If I were to buy a large amount of stock everyday. Could I take control of the company? I'd like to do so, or at least buy enough shares to do funny stuff like trying to pass a vote to change the company name for something like Big Beautiful Buildings With Nice People Inside Real Estate Investment Trust.

    It is a shit post but I'm genuinely curious and want to know if it would be possible.

    submitted by /u/etienner
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    'Negotiations over tariffs have started': Mexico's foreign minister

    Posted: 31 May 2019 01:50 PM PDT

    Actively Managed ETF in Europe

    Posted: 01 Jun 2019 02:41 AM PDT

    Hi there,

    I am looking for a list of actively managed ETFs in Europe. I tried to look in a lot of different websites and even on Bloomberg but it seems that it is not possible to sort by "actively managed" or "active".

    Any help will be much appreciated.

    Thank you.

    submitted by /u/Cacaol
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    What is a good, medium and bad payback period for a corporate investment?

    Posted: 01 Jun 2019 05:30 AM PDT

    I'm looking to evaluate the success of Disney's investment with Star Wars, specifically the payback period. What's a good, medium and bad payback period for Disney to recoup their investment?

    Can somebody guide me? I'm searching for industry specific (ie. entertainment) and non-specific (the best and worst out there).

    Here's some initial assumptions:
    Great: achieves break-even within 9 years.

    Good: achieves break-even within 12 years.

    Bad: achieves break-even within 15 year.

    Fail: doesn't achieve break-even at all.

    Any feedback will be great, thanks!!

    submitted by /u/thales_reborn
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