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    Monday, July 29, 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: 28 Jul 2019 05:17 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 says China is paying his tariffs, but U.S. companies keep getting the bill

    Posted: 28 Jul 2019 10:37 AM PDT

    https://www.washingtonpost.com/business/economy/trump-says-china-is-paying-his-tariffs-but-us-companies-keep-getting-the-bill/2019/07/22/cbe5a1e4-aca3-11e9-bc5c-e73b603e7f38_story.html

    Dozens of companies have begun shifting their supply chains from China to other locations, although most stay outside the United States, disappointing Trump's hopes of a large-scale reshoring of lost factory jobs.

    The president last week repeated his contested claim that Americans "aren't paying for" the tariffs. The most comprehensive analyses to date — a pair of studies by economists from institutions such as the Federal Reserve Bank of New York, Princeton University, the World Bank and Yale University — concluded that Americans are paying the entire bill.

    Yet for all the talk about tariffs, the aggregate economic effect has been modest. Inflation remains below the Federal Reserve's 2 percent target. And although some businesses have postponed planned investments, consumer spending in the factory and farm communities most exposed to the trade war has been unaffected, economists at Bank of America Merrill Lynch reported earlier this month.

    submitted by /u/coolcomfort123
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    How to overcome the fear of poor market timing?

    Posted: 28 Jul 2019 07:36 AM PDT

    I know time in the market beats timing the market, but I'm too scared to pull the trigger on my savings right now.

    I feel like poorly-planned US diplomacy and the Chinese regime in general is bound to cause conflict and economic disruption. I want to invest in both markets but I can't imagine them seeing eye-to-eye any time soon. How do I overcome this?

    I'm terrified, but every day I wait is another day I'm out of the market.

    submitted by /u/GlacialFox
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    Southeast Asia the next Economic investment boom?

    Posted: 28 Jul 2019 09:17 AM PDT

    With new sanctions against China, it's looking more and more likely Vietnam could be the next economic explosion.

    https://medium.com/@keithhilden/the-rerise-of-asia-those-who-read-history-too-much-are-ensured-to-repeat-it-63d9e54f8c72

    submitted by /u/HidingBehindAUserNam
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    What will happen to my Cobham PLC Shares?

    Posted: 29 Jul 2019 03:22 AM PDT

    A few days ago, Advent bought Cobham plc for an average 165p per share. The stock price immediately rose to this number. What will happen to my shares that I hold, will advent buy them off me for that price (in which case should i just sell now), or is that just the new price for the stock?

    I'm struggling to find useful information online.

    submitted by /u/Benjypap
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    Blackstone Made a Quick US$2Bn - US$4Bn from Reuters In Just About a year

    Posted: 28 Jul 2019 06:04 PM PDT

    The ink is barely dry on the deal (https://a-teaminsight.com/blackstone-closes-deal-to-take-55-stake-in-thomson-reuters-financial-risk-business/?brand=ati) Blackstone made to buy to the financial data arm of Reuters (now renamed Refinitiv) and they are doing another deal to sell the same company, thereby pocketing a quick 2-3 billion. https://www.reuters.com/article/us-refinitiv-m-a-lse/lse-refinitiv-deal-faces-long-antitrust-review-sources-idUSKCN1UN0O4

    submitted by /u/Star_girlz
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    Thoughts on CTST?

    Posted: 28 Jul 2019 07:41 PM PDT

    Any thoughts on the future of this company? Think HC will fuck them completely or do you think they'll skim by?

    submitted by /u/hlh4
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    How to get S&P/US stock index WITHOUT dividends?

    Posted: 29 Jul 2019 03:04 AM PDT

    I'm not from US, so I'm in 15% dividend tax bracket. I don't have 401, IRA and all that good stuff. Furthermore, my religion doesn't allow me to pay taxes, so I need a tax efficient option for stock index.

    Jokes aside, if you pay tax every time you receive a dividend and reinvest that dividend then you are effectively reducing your long term growth, since every div payout takes a 15% chunk out of the dividend automatically.

    I originally wanted to hold VOO or VTI for long term indexing. But realised that if I could get the same result WITHOUT the dividends I could decide when to pay tax upon cashing out when I'm 70 or so.

    Question is - are there any such stock indices?

    Maybe Berkshire Hathaway could be a solution? They pretty much follow S&P500 and don't pay dividends for the above mentioned reason.

    Please tell me all the reasons why this is a bad idea.

    submitted by /u/RealHedgeFund
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    Is it feasible to try and be an enterprising investor with a demanding full-time job?

    Posted: 29 Jul 2019 02:51 AM PDT

    I'm a doctor. I often have work weeks where my hours can be anywhere from 60-90 hours a week. It's easy for me to sit back and enjoy the fact that's it's so difficult to beat the market, that all anybody should be doing is passively investing in an index fund.

    However I really enjoy reading into the subject, and reading some of the success stories over here makes me quite interested in trying to be a little more active in my investments, and take a bet here and there.

    Is this feasible with such a demanding job? Am I just throwing my money away if I try and be a little more enterprising if I can't spend more than a couple of hours a week trying to get an edge in the market?

    I would still make index fund investing my priority. But it would be interesting, personally, to make some stakes with, let's say, 5-10% of my invested cash. I would stop short of doing that if I'd be effectively throwing my money away, however, with what little free time I have.

    submitted by /u/QPRCHOC
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    Reliability of financial markets in less developed countries

    Posted: 29 Jul 2019 02:36 AM PDT

    So I'm looking at CAPEs for national stock markets outside the US, and some are quite attractive (like Singapore, Spain, China or some Eastern European countries). What worries me is that the "E"arnings part of CAPE is unreliable, especially in countries like China or Russia. This is both in terms of what is really earned vs what is reported, but also because of potential cashgrabs by local governments.

    Any way to sensibly judge such risks there, other than saying "markets are always efficient, therefore ~50% lower CAPE than US means ~50% chance of theft"?

    submitted by /u/MakeoverBelly
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    First Timer

    Posted: 29 Jul 2019 01:59 AM PDT

    Hello! Soon to be first time investor. I was thinking about throwing myself into the roth IRA boat. Im young so there is time for it to grow. I was wondering however if anyone has any different idea and or opinions for young investors. Thank you for your help.

    submitted by /u/nmarano1030
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    A young couple invested half of their income in the stock market 10 years ago and now have 1.5 Million $ and can work part time from now on

    Posted: 29 Jul 2019 01:35 AM PDT

    I was looking at YOUTUBE and found a young couple who both worked as Engineers who decided to invest one half of their income in the stock market ten years ago and hope for the best.- and live frugally- Their goal was to be able to move to part-time and contract work by their late 30s. They invested $30K a piece out of their $70K salary ($140K Combined) for a combined annual investment of $60K. In ten years, they had $1.5 Million Dollars. (Due to the great stock market from 2009.)

    If you were in their shoes today what would you do now?

    1. Work part-time and in short term contracts, with a goal of making $35K in part-time income combined and live a more leisurely lifestyle while withdrawing 3.5% of the principal each year. That would give them an income of about $85K for working a few hours a week.
    2. Or keep investing but go to a more extravagant life and keep working full time?
    submitted by /u/KillingTime56
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    Convenient Method of Reading Financial Statements?

    Posted: 28 Jul 2019 06:03 PM PDT

    Is there any convenient way of comparing multiple quarters in different years for a company's financial statements or is the only way to open each one individually and manually entering the numbers into an excel spreadsheet? Would love to hear others suggestions and tips on how you personally do this when evaluating a company!

    If you don't mind sharing how you start from finding a company of potential interest to conducting the research (what do you read, what do you look for, etc) that would be perfect! Thanks!

    submitted by /u/twofacebluepenguin
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    Headlines like this just bother me.

    Posted: 28 Jul 2019 07:36 PM PDT

    "The S&P 500 Hit a New High Because the Market Still Expects the Federal Reserve to Cut Interest Rates"

    How can anybody say the S&P moves one way or the other because of one thing? That's just way too simplistic. There are countless other factors which likely played a part.

    And it's one thing to make a statement like this about one individual stock. But it seems even more overly simplistic to say this about the S&P, which is so much more broad and made up of so many smaller parts.

    submitted by /u/rascally1980
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    Thoughts on EID cutting out fundings for fossil fuels

    Posted: 29 Jul 2019 01:03 AM PDT

    Hey, the European investment bank is cutting all fossil fuel investment after 2020. Any thoughts on this subject? Say if you had investments in fossil fuels would you sell them asap or wait a little bit longer?

    Source: https://www.theguardian.com/environment/2019/jul/26/eib-plans-to-cut-all-funding-for-fossil-fuel-projects-by-2020 https://www.reuters.com/article/us-eib-climate-fossilfuels/european-investment-bank-proposes-end-to-fossil-fuel-lending-idUSKCN1UL1PX

    submitted by /u/Matennaa1er
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    Making a (mostly) free 3-fund portfolio as a first time investor

    Posted: 28 Jul 2019 11:33 AM PDT

    I recently started a Roth IRA account with Fidelity and I'm struggling to pull the trigger on investing my contributions. I keep thinking about just picking a target fund, but I'm worried it's not the best choice... so I research and research and get overwhelmed with everything. Right now this is what I'm looking at doing:

    • FZROX 60% [total market] (0.0% expense ratio)
    • FZILX 30% [international] (0.0% expense ratio)
    • FXNAX 10% [bonds] (0.025% expense ratio)

    I'm 37 (yes, a very late start on retirement) and planning to max out my Roth IRA every year going forward.

    submitted by /u/aerodeck
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    Cornerstone stocks of your portfolio

    Posted: 28 Jul 2019 04:46 PM PDT

    What are the cornerstone stocks in your portfolio or the few stocks that you own the most shares in? In my portfolio I consider Brk/b, microsoft, amazon and disney as the Cornerstones of my portfolio. They are equally allocated the highest percentages in my m1 brokerage account. I feel these are the most reliable and high quality among the 20 stocks I invest in.

    submitted by /u/mark44x
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    Thoughts on holding VXXB?

    Posted: 28 Jul 2019 10:47 PM PDT

    Thinking of holding the VXXB (iPath Series B S&P 500 VIX Short-Term Futures ETN) in the anticipation that the markets will correct in some shape or form in the next 12 months, causing the futures to spike in value. Thoughts?

    submitted by /u/PuffyCheek
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    The week ahead for earnings presentations and earnings expectations.

    Posted: 28 Jul 2019 07:16 PM PDT

    Going In the 2nd week of earnings season. See the major companies that will be conducting conference calls here: https://kpbco.org/onepir/going-into-this-earnings-week-the-us314bn-decline-in-q1-19-corporate-profits-to-weigh-on-these-industries Investors have huge expectations for Apple NASDAQ: AAPL given the company's more aggressive approach to the services business and particularly the launch of a new credit card.

    submitted by /u/Star_girlz
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    How likely is 3x leveraged S&P ETF to drop and lose all of it's value?

    Posted: 28 Jul 2019 11:22 AM PDT

    Hi, so I started investing in SPXL, a triple leveraged S&P index. I'm trying to understand what the likelyhood is that the fund would reach 0 and wipe me out of the market. The 2008 recession had a drop of 20 ish percent correct? So if we had repeat of 2008 I would still hold my equity but at a mere 40% of it's original value. I have heard that for other triple leveraged funds that a drop of 85% would close the fund, is this the same case for SPXL? How many corrections has the S&P that dropped it 28.3% (85÷3) or more?

    submitted by /u/pumpps
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    Difference between Vanguard 500 Index (VFINX) vs Vanguard S&P 500 (VOO)?

    Posted: 28 Jul 2019 06:22 PM PDT

    Been looking into investing in the S&P 500 fund index. Coming across Vanguard and they have VFINX and VOO which both seem to track the 500? What is the difference here?

    submitted by /u/Newyorkntilikina
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