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    Friday, July 12, 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: 12 Jul 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.

    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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    Singapore’s GDP badly misses forecasts, shrinking 3.4% from the prior quarter

    Posted: 11 Jul 2019 10:16 PM PDT

    https://www.cnbc.com/2019/07/12/singapore-gdp-gross-domestic-product-data-for-second-quarter.html

    The second quarter flash numbers are "quite disastrous... way below even the worst street forecasts," said Selena Ling, head of treasury and strategy at OCBC Bank, adding that the main drag remains manufacturing.

    In the second quarter, manufacturing contracted 3.8% from a year earlier after shrinking 0.4% in the quarter earlier.

    Singapore authorities have previously said they will review their 2019 full-year GDP growth of 1.5%-2.5%, and some analysts say there might be a recession in 2020.

    Ling said she expects authorities to soon lower full-year growth forecasts to 0.5-1.5%.

    Electronics manufacturing output, the main driver of Singapore's economy in the last two years, declined for the sixth consecutive month in May while exports saw its biggest decline in more than three years.

    submitted by /u/mark000
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    Nordstrom is trading nearly $20 a share lower than a $50 a share offer it once rejected as too low

    Posted: 12 Jul 2019 04:41 AM PDT

    KEY POINTS

    • Nordstrom shares are trading nearly $20 a share lower than a $50 a share buyout offer it rejected as too low two years ago.
    • The slide doesn't mean the company won't be able to recover.
    • Part of the pressure on its shares is Nordstorm is making the investments it needs to survive, and being punished as a result.
    • https://cnb.cx/2xHyZsj
    submitted by /u/markyu007
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    Good explanation for why stock markets fundamentally rise over the long-term

    Posted: 11 Jul 2019 05:01 PM PDT

    With mainstream buzz around the S&P 500, where is the report (posted on reddit years ago) investigating the best time/times in history to begin an initial investment in the S&P 500?

    Posted: 11 Jul 2019 07:08 PM PDT

    I remember reading (years ago) a detailed report for beginner investors on when to make an initial investment in the S&P 500. The conclusions was simple, when the index is undervalued, but the results had significant data and to see how we know the index is undervalued, as well as examples of returns after (30 ish?) years with initial investments differing by small amounts of time (relatively) and garnering returns that were vastly different.

    Does anyone have a link to that report? Is it still useful? Were any studies built upon it?

    When would you say the best time to invest in an index like the S&P 500 is and how would we know when that time comes? Is this the best way to maximize passive investment returns?

    submitted by /u/GOPpenguin
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    Trump says China is 'letting us down' by not buying US agricultural products

    Posted: 11 Jul 2019 07:19 AM PDT

    Inflation Unexpectedly Rises in June to 2.1%

    Posted: 11 Jul 2019 08:48 AM PDT

    US core inflation unexpectedly accelerates to 2.1% in June as Fed decision nears Thursday, July 11, 2019 7:40 AM CT By Sakshi Maurya Market Intelligence Annual core inflation in the U.S. unexpectedly accelerated to 2.1% in June from 2.0% in May, data from the U.S. Bureau of Labor Statistics showed. The Econoday consensus estimate was for annual core inflation, which excludes food and energy, to remain at 2.0%. Month over month core inflation was 0.3%, the largest monthly increase since January 2018. The Econoday consensus estimate was 0.2%. The broader U.S. consumer price index rose 1.6% year over year in June, slowing from 1.8% in May, and in line with expectations. Month over month, CPI increased 0.1% in June, beating the consensus estimate of 0.0%. A rise in prices of shelter, apparel, used cars and trucks more than offset a decline in energy prices, which were down 2.3%. Energy prices fell 3.4% on a yearly basis, while food prices climbed 1.9%. The U.S. Federal Reserve targets 2% annual inflation. Its favorite measure of inflation, the core PCE price index, was at 1.6% in May. Many Federal Reserve officials said at their June meeting that the case for lowering interest rates this year "had strengthened," but the central bank was divided on whether rate cuts would end up being necessary, minutes of the meeting released On July 10 show. The minutes highlight a split among Fed officials as they consider cutting interest rates this year, potentially as soon as the next Federal Open Market Committee meeting at the end of July. The Fed's June meeting resulted in officials keeping the federal funds rate at a target range of 2.25% to 2.5% but signaling openness toward loosening monetary policy. Only a couple of Fed officials backed lowering the federal funds rate at the June meeting, the minutes show. That likely was St. Louis Fed President James Bullard and Minneapolis Fed President Neel Kashkari, who have called for lower rates to guard against downside risks and help get inflation back to the Fed's 2% goal. A handful of other Fed officials have " data-original-title="">said it may be too early for a rate cut. This article was published by S&P Global

    submitted by /u/RoteCapableSavant
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    As Fresh Water Grows Scarcer, It Could Become a Good Investment

    Posted: 12 Jul 2019 03:27 AM PDT

    https://www.nytimes.com/2019/07/11/business/fresh-water-shortage-invest.html

    Several mutual funds and ETFs are discussed in the article.

    Something that caught my eye was the discussion on Taiwan Semiconductors:

    "Taiwan is a water-scarce area, so Taiwan Semiconductor has developed innovative practices," Ms. Huang said. "They recapture, refilter and reuse their water three times." Semiconductor plants gulp down huge quantities of water, and, though Taiwan receives plenty of rainfall, it has little ability to store it. Ms. Huang said Calvert views smart water handling as prudent risk management for chip-makers like Taiwan Semiconductor. "It puts them in a better position competitively, and they're a market leader in the semiconductor space."

    The companies in the Calvert index are divided into four subgroups — utilities, infrastructure outfits, technology providers and efficient users like Taiwan Semiconductor.

    The scarcity of fresh water and it's relation to manufacturing processes is not something I'd been thinking about until now.

    submitted by /u/almondsesame
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    Does it make sense for Facebook to acquire Square?

    Posted: 12 Jul 2019 05:16 AM PDT

    Libra, Square applying for a license and Trump twitting about banking regulations got my attention.

    submitted by /u/pacosteles
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    AAPL NASDAQ VS EBS VS MEXI

    Posted: 12 Jul 2019 04:37 AM PDT

    I noticed that many stocks like AAPL are listed under NASDAQ, EBS, MEXI (shown on Interactive Brokers).

    - What is EBS?

    - MEXI appears to be the Mexican stock exchange. What is the tax implication if I purchase AAPL on MEXI instead of NASDAQ? I'm not a US resident so I have to pay 30% tax on US dividends. Would I be able to avoid that if I purchase AAPL on MEXI instead?

    submitted by /u/Olivia512
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    Interesting how small music industry "powerhouse" Big Machine is. $40 million in EBITDA on $100 million in sales. Nice margin tho.

    Posted: 12 Jul 2019 04:10 AM PDT

    Is too much diversity a bad thing?

    Posted: 12 Jul 2019 12:08 AM PDT

    I'm planning on retiring in 2050. I have a self-directed Wells Fargo retirement savings plan—of which 10% of my salary is going into quarterly. The current value of the plan is $84K. I feel like I have too many different investments. What do you guys think?

    https://imgur.com/a/8adB1FQ

    I was thinking if we ever have a crash I'd consolidate and move 90% to Baron, Blue and S&P w/ 10% in Pimco. Should I consolidate sooner?

    submitted by /u/davesdick
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    What’s the best way to value a REIT?

    Posted: 11 Jul 2019 07:17 AM PDT

    Recently I've started looking at adding specific REITs to my portfolio but it seems a bit daunting to me to figure out how they're valued. I'm wondering if there's rules of thumb for them? Does size matter? Any good resources that you guys recommend for this info?

    Specifically I'm looking at BTB REIT, BTB-UN.TO because it's based in Quebec. It's very small though so for comparison do I have to find another that's a similar size, or is there an industry standard that works for all sizes?

    I understand I'm supposed to look at AFFO, but is there a standard? What about debt?

    submitted by /u/luislovesmoney
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    What's the logic in constantly reducing rates when not in a recession?

    Posted: 11 Jul 2019 05:41 AM PDT

    I keep seeing on Apple's stock market app that investors are eagerly awaiting Powell's talks on rate cuts. I thought that cutting rates was to be used during a recession in order to influence more growth. If they are incredibly low like they are now, the only way they can go is up which will inhibit growth. I literally just saw an article that said Powell will probably cut rates because of a growing economic risk. Why not get the shit over with and have it not be as bad compared to when rates are at an even lower point and a recession hits?

    Can someone explain the logic here? What am I missing?

    submitted by /u/PM_Me_Your_Java_HW
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    Wealthfront vs Acorns? General opinions and thoughts

    Posted: 11 Jul 2019 06:26 PM PDT

    Hello.

    I've had acorns for about 6 months and with about $1500 invested throughout that period of time, I'm up $48 (3.22%).

    However, while I don't know much about the market, I know that 6 months ago the S&P was almost 500 points fewer from the new record of 3000. That being said, I am also hearing many people talk of an upcoming recession in 2019 or 2020. Considering the fact that I'm saving for something specific that I'm looking to purchase in the next year or two, I'm considering the idea of cashing out of acorns while I'm up almost $50 and move it into something like Wealthfront where I'm guaranteed 2.5% a year.

    As I said, I'm new to investing as I'm recently out of college, and these are just some thoughts/worries/ideas I'm thinking about.

    Any thoughts on my specific situation or just Wealthfront or Acorns in general are appreciated.

    submitted by /u/Stasher97
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    Covered calls question

    Posted: 11 Jul 2019 11:18 PM PDT

    Was thinking of increasing my ROI buy doing covered calls but the most profitable ones seem to be those in the 10g for the hundred shares range... was thinking of doing this for Microsoft. Which would be close to 14g which is nearly my entire savings. I'm 22(m). Is this something worthwhile or too risky? Maybe a different stock?

    Edit: added the question.

    submitted by /u/kingpuggo
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    What type of Bond Funds are you using today to protect yourself from the next huge bear market in stocks?

    Posted: 12 Jul 2019 02:45 AM PDT

    I used to have all my bond money in the boring total bond ETF called AGG. It was steady and boring and got me a steady 2-3 percent average return per year. I had about fifty percent of my assets in that fund.

    Recently I have been putting some of my bond fund money in what is known as a Multi-Sector Bond Fund. These mutual funds are managed and have a team of experts invest in a wide variety of bond options. Multisector bond portfolios seek income by diversifying their assets among several fixed-income sectors, usually U.S. government obligations, U.S. corporate bonds, foreign bonds, and high-yield U.S. debt securities. These portfolios typically hold 35% to 65% of bond assets in securities that are not rated or are rated by a major agency such as Standard & Poor's or Moody's at the level of BB (considered speculative for taxable bonds)

    These funds have historically had a low standard deviation, a low beta, a better return than 10-year treasuries ETF's and a good return- with little risk- in comparison to stocks.

    Currently, I own PONAX, BMSAX, PTIAX, FADMX, and JGIAX

    Your thoughts on Multi-Sector Bond Funds? Do you own any of these Mutual Funds?

    submitted by /u/KillingTime56
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    Powell testimony day 2 - Says U.S. economy was hit by ‘confidence shock’, has only partly recovered. Wants expansion to carry on as long as possible.

    Posted: 11 Jul 2019 10:05 AM PDT

    Why don’t people short inversed ETFs?

    Posted: 11 Jul 2019 03:43 PM PDT

    It seems like these things perform awfully over time. The inverse is supposed to gain the exact opposite of what's its tracking but because it's goal is to do that daily it has to rebalance causing a large drag. Leveraged inverse I imagine would have an even larger drag and I'm guessing terrible returns. I doubt anyone here would even consider a 3x leveraged inverse fund.

    So by my basic logic if it's so terrible why not just short it? I understand the risk of shorting is very high but on an inverse fund with a ton of leverage it just seems to have such a small chance of performing well 99% of the time.

    submitted by /u/csdspartans7
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    Want to invest in American ETFs as a European resident.

    Posted: 11 Jul 2019 04:18 PM PDT

    I know, I know. We've been through this already. I should not be able to invest in American ETFs, but since I believe in the smarts of Reddit, I'm here to ask you whether any of you know of any workaround. The only one I was able to come up with was my family in Canada and I'd rather not do that unless absolutely necessary. I'm looking to buy SPY, IEF, IYR and of the three I found only one equivalent compliying with the new amazing regualtion. So reddit, will you be able to save my ass on this one? Any and all responses appreciated.

    submitted by /u/Sheepish_Bull
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    How do expense ratios get deducted for gold ETFs?

    Posted: 11 Jul 2019 06:59 PM PDT

    I did some research online, and it seems like some ETFs deduct expense ratios by deducting the expense ratio from the dividend. I am pretty sure this is not the case with gold ETFs since gold ETFs do not pay dividends.

    For other ETFs, I read that the expense ratio gets deducted from the share price. I don't see how this could be the case for gold ETFs since for gold ETFs each share is fixed to a nice, round amount of gold. Each share of GLDM, for example, is fixed to 1/100th of an ounce of gold. If you were to deduct an expense ratio from the share price, then each share would no longer be worth 1/100th of an ounce of gold.

    So how/when does the expense ratio get deducted for gold ETFs?

    submitted by /u/trident765
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    Best Online Broker for long term ETF stocks EUROPE?

    Posted: 11 Jul 2019 05:57 PM PDT

    I would like you to share me your opinions about which brokerage is the best for that kind of investment.

    Basicly i am talking about few trades at most / month mostly for long term. (for months or even years). Basicly i am looking for a platform that doesn't milk me for not making enough trades or not having that much trade activity with decent or non existent fees/trades as possible.

    I made a lot of research already, but i am not quite sure yet. Thanks fellow investors. I am in EUROPE!

    submitted by /u/deserius
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    How does the DoubleLine Shiller Enhanced CAPE (Cyclically Adjusted PE Ratio) (Ticker: DSEEX) Fund beat the S&P 500 by a large margin while holding 45% bonds?

    Posted: 11 Jul 2019 02:26 PM PDT

    How does the DoubleLine Shiller Enhanced CAPE (Cyclically Adjusted PE Ratio) (Ticker: DSEEX) Fund beat the S&P 500 by a large margin while holding 45% bonds?

    DSEEX fact sheet: https://doublelinefunds.com/wp-content/uploads/shiller-enhanced-cape-fact-sheet.pdf?c=1562879858

    DSEEX overview: https://doublelinefunds.com/shiller-enhanced-cape/

    45% bonds source: https://www.morningstar.com/funds/xnas/dseex/quote.html

    The above DSEEX fact sheet gives a good overview of how the fund is ran.

    I would assume that it would be near impossible to beat the S&P 500 with a 45% bond holding due to bonds having a much lower expected return, but DSEEX has beaten the S&P 500 by a large margin consistently. Any idea how they are doing this with a 45% bond holding?

    Thanks in advance!

    submitted by /u/silly321
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