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    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: 28 Jun 2019 05:19 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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    Trump, Xi Hit Pause on Trade War Again for Talks on Lasting Deal

    Posted: 28 Jun 2019 09:46 PM PDT

    DOJ probe expands beyond Boeing 737 MAX, includes 787 Dreamliner

    Posted: 28 Jun 2019 06:45 PM PDT

    Say I bought into an index fund on vanguard, $3,000 minimum, 50 or so shares. If I were to sell like half of my shares, what would the consequences be, Would you be penalized for no longer exceeding the minimum amount...

    Posted: 28 Jun 2019 08:06 PM PDT

    Jony Ive to leave Apple to form independent design company with Apple as client

    Posted: 28 Jun 2019 05:14 AM PDT

    Stocks rise to close out Dow's biggest June gain since 1938, S&P 500's best first half in 2 decades

    Posted: 28 Jun 2019 01:18 PM PDT

    "All eyes are on the G-20. It's all anyone's been talking about and focuses on all week," said James Masserio, head of equity derivatives trading of the Americas at Societe Generale. "We're definitely seeing a bid to short-term volatility. The market is bracing for a move one way or another."

    More Stocks rise to close out the S&P 500's best first half of a year in 2 decades - https://www.cnbc.com/2019/06/28/stock-market-trump-xi-meeting-at-the-g-20-summit-in-focus.html

    submitted by /u/markyu007
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    Trump and Xi agree to further trade talks at high-stakes meeting in Japan

    Posted: 28 Jun 2019 09:58 PM PDT

    https://www.cnbc.com/2019/06/29/us-china-trade-war-trump-and-xi-meet-at-g-20-summit-in-osaka.html

    Trump and Xi hold their highly anticipated bilateral meeting at the G-20 summit in Japan.

    The two leaders reportedly agreed to proceed with trade negotiations after a series of escalations to their nations' tariff battle threatened to disrupt the global economy.

    submitted by /u/coolcomfort123
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    Fed Rate Cut Question

    Posted: 28 Jun 2019 07:13 PM PDT

    My question is how does a rate cut by the Federal Reserve impact mortgage rates? Is it a one for one? For example, the fed cuts by 50 points and the average 30 year mortgage rate prior to the cut is 4.0%. Does the mortgage rate drop to 3.5%?

    submitted by /u/hershculez
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    Deutsche Bank Plans to Cut Up to Half of Global Equity Jobs. Stock is down 30% in the past year.

    Posted: 28 Jun 2019 07:53 AM PDT

    • German lender is said to plan global cuts as from early July
    • Equities cuts expected to be part of broader job dismissals

    https://bloom.bg/2FEEL2B

    submitted by /u/markyu007
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    Renewable energy companies?

    Posted: 28 Jun 2019 07:56 PM PDT

    I've been doing my best to research renewable energy companies that seem to be doing well. I would also like to support a good cause as I invest, however, since so many of the companies that produce solar and wind energy are so competitive and in their infancy right now, it seems like there's just too many choices. Does anyone have any recommendations or websites that might be informative on this topic? I apologize if this isn't the right sub for this question, I'm relatively new to the game. But my accounts are growing steadily and it makes me feel more confidant to branch out with my portfolio. Plus it feels good when something I support is doing well in the market.

    Thanks!

    submitted by /u/Waytwhat
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    Charlie Munger said paying a financial advisor 2% out of 5% per year will lead to a 90% reduction in the value of your portfolio. How did he calculate this? I’m calculating a 32% reduction.

    Posted: 28 Jun 2019 05:32 PM PDT

    Charlie Munger said paying a financial advisor 2% out of 5% per year will lead to a 90% reduction in the value of your portfolio. How did he calculate this? I'm calculating a 32% reduction.

    I'm calculating only a 32% drop. How's he getting 90%?

    I just used this calculator: http://www.moneychimp.com/calculator/compound\_interest\_calculator.htm

    He said this in the Berkshire Hathaway meeting during his speech February 14, 2019: https://www.ifa.com/media/audio/daily-journal-annual-meeting-full-audio-february-14-2019.mp3

    This is what he said at 27:30 of above recording: "If you stop to think about all the expense and blabber that she didn't have to listen to and all the trouble she avoided. Zero cost. And of course, what people don't realize because they're so mathematically illiterate is if you make five percent and pay two of it to your advisors, you're not losing forty percent of your future, you're losing ninety percent. Because over a long period of time that difference causes a ninety percent disadvantage to you. It's hugely important for somebody who's a long term holder not to be paying a big annual toll out of the performance."

    He used this as the rationale as to why personal financial advisors have no value added and are basically just scamming people because you're much better off just sticking your money in the Vanguard S&P 500 and having no advisor.

    Thanks in advance!

    submitted by /u/silly321
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    Why does fidelity treat reinvested dividends as cost basis?

    Posted: 29 Jun 2019 12:15 AM PDT

    Hi Guys,

    It seems that fidelity treats reinvested dividends as cost basis. Is this normal? In my head I feel like the cost basis should only be what I first put in so I can see how much value has changed.

    Thanks!

    submitted by /u/deten
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    European Market YT channel?

    Posted: 29 Jun 2019 03:30 AM PDT

    I know a fuck ton of videos to watch about American equities but I will be shifting half of my portfolio to European equities. Thus I would like to know about any YouTube channels that comment mainly on EU stocks, EU stock market... etc

    submitted by /u/xFantasi
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    Yum China, an obviously 100% business that is exposed to China, is up 38.8% YTD. Fast food knows no geopolotical issues.

    Posted: 28 Jun 2019 09:22 PM PDT

    geo-political*

    submitted by /u/markyu007
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    19 years old with decent knowledge of the market, looking for advice long term.

    Posted: 29 Jun 2019 12:26 AM PDT

    Hey everyone, I've got some money to play with in the market and I'm debating between funding it into a vanguard account or just putting everything I have into Disney. I see large growth potential long-term for Disney with Disney + releasing in the future and I wouldn't touch it for a long time if I was to purchase. Would you reccomend I go the Disney route or a vanguard index fund? Thank you everyone!

    submitted by /u/dustacheez
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    If the market system needs active investment to maintain efficiency, but the academic answer is to passively invest, do we reach a paradox?

    Posted: 28 Jun 2019 08:01 PM PDT

    Here's a great video for people that have no idea what I'm talking about in regard to the roles of each along with 80minutes of valuable starting points for the average Joe.

    https://youtu.be/SwkjqGd8NC4

    That said, the question stands. Are there any great resources or articles that tackle this paradox?

    submitted by /u/Timelapze
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    RealReal will go public today

    Posted: 28 Jun 2019 07:58 AM PDT

    Online luxury reseller The RealReal Inc. raised $300 million in its U.S. initial public offering, pricing its shares above a targeted range.

    The RealReal sold 15 million shares for $20 each after marketing them for $17 to $19, according to a statement. The IPO values the company at about $1.6 billion based on the outstanding shares -- excluding some restricted shares and options -- listed in its filings.

    Bloomberg

    submitted by /u/ChocolateTsar
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    How do passive funds handle IPOs?

    Posted: 28 Jun 2019 01:12 PM PDT

    Presumably they don't buy in at the offer price... do they wait for some set period of time to establish a "real" market cap? At what point do indices start including newly IPO'd stocks?

    submitted by /u/herplederple22
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    What Do You Think The SP500 Will Return Over The Next Decade

    Posted: 28 Jun 2019 06:44 PM PDT

    I realize it's hard to get it right, but What do you personally think it will be? Quite frankly I want it to be 7% nominally but I'm expecting 5-6% due to high valuations and high debt.

    submitted by /u/BobbyBryce
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    Bloomberg: Nike, a Wall Street Favorite, Gets Analysts' Pass After Miss

    Posted: 28 Jun 2019 09:53 AM PDT

    U.S. dominates second-quarter global M&A as mega deals roll on

    Posted: 28 Jun 2019 05:06 AM PDT

    https://finance.yahoo.com/news/u-dominates-second-quarter-global-052411365.html

    NEW YORK/LONDON (Reuters) - Mega deals set the pace for mergers and acquisitions (M&A) globally in the second quarter of 2019, as large U.S. companies defied trade row jitters and seized on strong equity and debt capital markets to agree on transformative combinations.

    Global M&A volume reached $842 billion in the second quarter, down 13% and 27% from the first quarter of 2019 and second quarter of 2018 respectively, according to preliminary data from financial data provider Refinitiv.

    Among the top deals this quarter were the $121 billion agreed merger of United Technologies Corp's airspace division with U.S. contractor Raytheon Co <RTN.N>, U.S. drugmaker AbbVie Inc's <ABBV.N> $63 billion agreement to acquire peer Allergan Plc <AGN.N>, and Occidental Petroleum Corp's <OXY.N> $38 billion deal to buy Anadarko Petroleum Corp <APC.N>.

    submitted by /u/coolcomfort123
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    Rates go down = Bond ETF value goes up?

    Posted: 28 Jun 2019 11:07 AM PDT

    I want to confirm my understanding. If the federal reserve lowers interest rates it will mean new issue federal debt will pay less and will trickle out causing other new bonds to lower. This will inflate the value of currently held, higher interest bonds. In medium/long term overall bonds will yield less payout.

    If interest goes up, the value of held bonds reduces as new bonds with higher rates come out. In medium/long term bonds overall will have a higher yield.

    I'm currently invested in corporate junk bind ETF (JNK) which has annual dividends around 6% and a share price at $109. So if interest drops the share price should go up, but disbursements will go down after a year+ as new bonds enter the ETF. If interest goes down the share price goes down but in a year+ disbursements go up.

    Is this the right overall assessment?

    EDIT: it seems I understand the relation between bonds and general interest rates but not what the "fed rate" is and how it affects the bond market. Hitting the books again, thanks.

    submitted by /u/gunsforfun
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    Looking for low risk investments with money sitting around

    Posted: 28 Jun 2019 04:51 PM PDT

    I have some extra cash lying around and don't have any stocks I'd like to invest in at the moment. I'm wondering what I should do with it in the meantime? Is there a low risk option that does not commit me to any terms? Maybe like SPDY or some other index funds?

    submitted by /u/1_niceguy
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    Considering the risk of publicly traded General Partnership Units: are they materially present to retail investors?

    Posted: 28 Jun 2019 02:17 PM PDT

    I'm analyzing several companies with high dividend yields. Many of them are publicly traded on the NASDAQ or NYSE and they have high yields (9-14%) because they have pass-through features, so I would be paying ordinary income taxes on the dividends. In their SEC 10-K filings, they specifically mention that the "limited liability partners" are not, in fact, subject to limited liabilities -- and that, in theory, an investor could be required to repay a share of damages from potential lawsuits.

    • Does anyone have experience investing in these?
    • Does anyone know of any cases where retail investors were ordered to repay earnings from their investments in general partnerships?

    Thoughts? Does this sound too good to be true as far as dividend stocks go?

    One of the companies is ARLP. Here is their filing: https://www.sec.gov/Archives/edgar/data/1086600/000155837019000892/arlp-20181231x10k.htm

    submitted by /u/4_20_blazeit_dot_gov
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