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    Thursday, July 4, 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: 03 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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    10-year Treasury yield drops to lowest level since 2016, dipping further below 2%

    Posted: 03 Jul 2019 01:25 PM PDT

    Dow and Nasdaq close at record highs amid expectations for the Fed to lower rates

    Posted: 03 Jul 2019 10:09 AM PDT

    Be an Active Participant in your 401k Account

    Posted: 04 Jul 2019 01:44 AM PDT

    When you decide to invest for your retirement it is not something to be taken lightly. It is not a set it and forget it scenario. You need to be an active participant in the investing process and that not only means monitoring how your money is working for you, but it also means maintaining your accounts.

    For example if you change jobs you want to rollover you 401k investments into a new account such as an IRA or a new 401k plan.

    You will need to decide which is best for you, whether a 401k rollover into a new 401k or into an IRA. While 401k plans are great they also have some few drawbacks. One drawback is that your investment options are usually limited. They are chosen by your company and some employers choose a wide selection while others have only a few.

    Another drawback is that you may not be able to take a loan against your 401k funds and some employers do not allow you to roll your money into an IRA account if you still work there.

    Going with an IRA may give you more flexibility with your money. You can choose a brokerage IRA firm which will allow you more investing options such as index funds, mutual funds or even ETF's. The one thing to keep in mind though is that brokerage firms can get expensive with their fee's. Be sure to look into the cost, get a list of all their fees and shop around to make sure you are getting the best price.

    Be sure to do your homework before you make your decision. Weigh the pro's and con's of an IRA vs a new 401k to determine which is truly right for you. Sometimes only having a few options to choose from in a 401k can be a good thing for someone who is knew to investing.

    submitted by /u/NancyHealthy
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    Does anyone have a view on IBM's blockchain projects and how significant these are likely to be to the overall company in 5 or 10 years?

    Posted: 03 Jul 2019 09:30 PM PDT

    I see that IBM has had some progress in shipping applications as well as trade finance and projects with Nestle - do these make it the current leader in blockchain technology? Also any views on general outlook and potential for monetization would be very much appreciated.

    I understand that this is not an easy thing to do.

    Many thanks for any assistance..

    submitted by /u/InterestingNews1
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    New Joiner to the Stock Market

    Posted: 04 Jul 2019 03:13 AM PDT

    I am very interested in buying a few stocks and holding a diverse portfolio. However, every chart I viewseems to be at/near an ATH...thus I'm like WTF should I do!?

    submitted by /u/ChunkyLittleSquirrel
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    What is Alpha an Beta in the financial world?

    Posted: 03 Jul 2019 04:02 PM PDT

    I feel stupid for not knowing, but I haven't taken that subject in any class.

    submitted by /u/GilElCentauro
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    ADP: U.S. adds modest 102,000 private-sector jobs in June

    Posted: 03 Jul 2019 10:25 PM PDT

    Mexico Bonds 7%

    Posted: 04 Jul 2019 12:18 AM PDT

    I want to buy Mexican bonds that pay 7%. How and where do I buy these? Is there a minimum?

    submitted by /u/iron_butter11
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    What is this subreddit's consensus on using CAPE?

    Posted: 04 Jul 2019 12:05 AM PDT

    For example - per country levels:

    http://shiller.barclays.com/SM/12/en/indices/static/historic-ratios.app

    The idea is, of course, to buy some basket of "cheap" country market ETFs.

    submitted by /u/StrangeSpray
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    Trump to Tap Waller and Shelton for Fed Positions

    Posted: 03 Jul 2019 06:13 AM PDT

    https://www.apnews.com/d0a5e03b4edc45e1aca201daef6e8e3b

    Trump said he would name to the board Christopher Waller, who is executive vice president and research director at the Federal Reserve Bank of St. Louis, where he has worked since 2009. He also tapped Judy Shelton, the U.S. executive director for the European Bank of Reconstruction and Development.

    Shelton has a history of attacking the Fed's policies and has also supported the gold standard, under which the value of currencies like the dollar are fixed to a specific amount of gold.

    submitted by /u/guitmusic12
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    What are your favorite websites for news, research, or analysis (or anything useful for investment decisions)?

    Posted: 03 Jul 2019 05:08 AM PDT

    I like allsides, real clear markets, and Howard marks memos. What else should I be reading?

    submitted by /u/karakarafade
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    How to keep savings during recession?

    Posted: 04 Jul 2019 02:36 AM PDT

    Hello guys. Help me please with a theoretical question. Let's say, that next recession in coming in a 6 months. Right now, I have some savings, keeping it in a portfolio with stocks of different companies (tech, finance, energy sector, etc.). For sure, most of them are going to fail, when economy would fail.

    What would be the best option to

    - first: save money (including not to lose anything on inflation) ?

    - second: earn some more on a recession?

    submitted by /u/furie1024
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    which app to trade stocks with Merrill edge?

    Posted: 04 Jul 2019 02:29 AM PDT

    for those with a brokerage with Merrill, what app do you use to trade stocks in? Do you just use the website? the reviews on the app store for Merrill's app are so low. Can you trade stocks in the BOA app?

    submitted by /u/karbass
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    Charter communications (Spectrum)

    Posted: 04 Jul 2019 01:53 AM PDT

    It's a fucking dumpster fire. I've worked there for about 6 months now in business sales and I can assure you turn over is rampant. Toxic company culture is built in to who they are. Leadership is aware of turn over, and their reaction is to offer $500 bucks to hire more people as opposed to retaining the skilled employees. In their defense, from a numbers stand point it probably makes sense. Dump the senior employees that were making more before the merger that were grandfathered in. (They already cut pay drastically for them through the commission plans) The commission is taxed at 35% and in a good month you're lucky to bring home $2,500 after taxes. The people that typically do well have a "pipeline" of people that have been following up with them for years. There is no actual skill involved in the job as you are stuck taking the calls you get. (Most businesses only set up one account so its hard to make a pipeline) If you're considering a job there, just know you'll make just above minimum wage and be forced to show up to work for a company that shoves it in your face daily they don't give a shit about you. They have said things like this since I have been there to me or other employees I've over heard. One supervisor said "if you want to retain your morals work somewhere else, this is sales" when someone asked about the morals of pushing people into plans they don't need. My supervisor today essentially told me I should probably look for another job when I complained about things. And today another group of managers told an employee " you aren't as good as you think you are" when she asked about why she got the shift she got. I have NEVER worked in such a toxic company. The whole reason I'm writing this is to warn investors to stay away and far away. We started offering business cellphone plans today which may appeal to investors, but the company culture WILL cause issues. And the competition coming into the market (starry, Elon musk and Amazon's satellites, ect) will shit down a company that can't retain employees. Also the CEO is the highest or one of the highest paid in America. Sooner or later they will automate jobs away because they can't retain employees and customer experiences are going to be even lower than they are now.

    Anyways, sorry about the rant. Feel free to ask anymore questions and if I can answer them I will.

    submitted by /u/BathrobeBoogee
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    How can T-Bonds ETF's have such high yields

    Posted: 03 Jul 2019 10:24 AM PDT

    Please take a look: TRSX

    How can this ETF return:

    Time Return
    3M 3.54%
    YTD 9.42%
    1 12.94%

    When 30year US treasury bonds yields are at 2.47%?

    I understand this is an ETF and the gross yield is actually just 2.25%, but how can they ensure this for everybody?

    Is this riskier than US TBonds?

    Edit1:

    I just saw that last dividend they reported was 0.3469 which represents only 1.33% of 26€.

    Is this the realy yield of this ETF after costs and taxes? How can this crap return 12% a year lol?

    submitted by /u/throwaway388292828
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    This is not possible right?

    Posted: 03 Jul 2019 03:46 PM PDT

    So CEO of the startup I work at is only going to raise $600k for a big software product in the education sector.

    The product is not done at all and needs to be on two months.the company basically has no money rn.

    He is only going to one round he says.

    Do basically he is trying to cheat the whole ecosystem by:

    Paying me and the other developer 12$/h Only having invested tens of thousands of dollars so far. Not want to pay 2400$/month for servers Only doing one round of 600k. Expecting this fuckery to be profitable in 1.5 years.

    submitted by /u/tmp6284617
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    Pros and Cons of a Roth IRA?

    Posted: 03 Jul 2019 11:31 PM PDT

    I frequently put money either into my savings account or into my mutual funds and have recently been looking into opening a Roth IRA. Are there any drawbacks to a Roth IRA?

    submitted by /u/TigerTamer23
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    Zillow DD - Stock idea

    Posted: 03 Jul 2019 10:16 AM PDT

    Q1 2019: 454.1 Million Q4 2018: 365.9 Million 19 percent revenue growth

    Not a house flipping initiative, providing a service allowing sellers to get their house sold quicker for a fee and then marketing those houses back out to a massive audience. Win/Win for seller, allows them to get paid quicker and not have to worry about updates/selling process/typical real estate commissions.

    Zillow website/app is the 18th most visited website in the United States, most of those coming from mobile (easily accessible). 18th sounds good? that beats Netflix #19, Pinterest #23, Linkedin #25.

    -Zillow is able to constantly advertise their houses first and send emails to users/notifications, as well as the constant traffic they receive.

    -Zillow has mass amounts of data that will help them improve their system as time goes on. This will make their estimates better and can help them market houses out more efficiently. Think Netflix and how they leverage data to pick the perfect show for you! 195 Million monthly visitors

    Traditional Real Estate market is a massive opportunity and Zillow does not need the whole pie...only a piece of it.

    Younger generations will browse apps for homes, Zillow being the largest allows them to be ahead of the game.

    Zillow offers currently: Phoenix, Arizona Las Vegas, Nevada Atlanta, Georgia Denver, Colorado Charlotte, North Carolina Raleigh, North Carolina Houston, Texas Riverside, California Dallas-Fort Worth, Texas Minneapolis, Minnesota

    Zillow offers by q1 2020 Orlando, Florida Portland, Oregon Nashville, Tennessee Miami, Florida San Diego, California San Antonio, Texas Austin, Texas Sacramento, California Tampa, Florida Los Angeles, California

    Accelerated revenue opportunity. Not to mention that they still make a good portion of revenue from their underlying advertisement business. Sellers can use Zillow offers to get a ballpark value for their house, even if they do not sell with Zillow...Zillow can update data and fine tune.

    Obviously capital intensive and has its fair share of risk…but upside in my opinion is significant. Big data is important and they have mass amounts of data coming in. Look at the reports they are able to release on housing data…more detailed then what the government can even put together. The key point I like to push, is this does not need to kill of traditional real estate…I do not think it will…but it can definitely take a piece of the pie and more as time goes on. I know there is other companies that do this, but none have the traffic/user data that Zillow will be able to leverage as time goes on.

    It has had a nice run recently, so it may not be the ideal time to hop in..but that being said as of 6/14 it had 26million shares short, with only 2.8 million daily volume. There is definitely room for a large short squeeze if we see the positive momentum continue. I was lucky enough to get in around 35, but I am holding strong.

    Disclaimer: I can not make financial recommendations, this is just something to think about it!

    Edit: here is article on Zillow mortgages plan, as well as their relationship with agents. Zillow is going to try to put everything on one app and have purchased a mortgage company. More info here: https://www.gurufocus.com/news/903237/why-zillow-has-investment-potential

    submitted by /u/zspero
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    Confused on Covered Calls

    Posted: 03 Jul 2019 12:55 PM PDT

    Fellow Redditors,

    I'm having an issue understanding some basics regarding the covered call options strategy.

    By purchasing 100 shares of ABC company at $20 per share, and selling one contract of ABC at a strike price of 22.50 with a $0.50 premium, it seems losses only occur when the stock price goes below $19.50 (Stock purchase price - premium received).

    However, I don't understand how, if the stock price rose to $24 and the Option contract was exercised by the buyer, we wouldn't lose $2,250 ($22.50 x 100 shares) - $50 in premium.

    If that is true, wouldn't this be an incredibly risky trade with minimal room for positive return?

    Thanks so much; I appreciate your time and consideration. If you need any specification please let me know!

    submitted by /u/EJR2
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    Can anyone review the Morningstar Farms Grillers and possibly compare to the Impossible Burger or Beyond Meat?

    Posted: 03 Jul 2019 10:38 PM PDT

    I have to say the pictures in google images do not look good but then maybe this (and indeed the question of meat substitutes in general) is a question more of marketing rather than substance.

    Some interesting articles highlighting the fact that Kelloggs Moningstar Farms subsidiary is already selling more meat substitute burgers than Beyond Meat forecasts for this year. I suppose a bigger question is how is that number going to grow from here. That brings me back to the question of style over substance and whether Beyond Meat is really any better than whats out there already.

    https://www.marketwatch.com/story/kellogg-is-sitting-on-a-fake-meat-gold-mine-bigger-than-beyond-meat-2019-07-02?siteid=bulletrss

    submitted by /u/InterestingNews1
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    Question - why is Greenbrier's stock so much cheaper than Trinity Industries?

    Posted: 03 Jul 2019 09:55 PM PDT

    GBX has a PE/PS of c.10/0.4 compared to TRN on c.19/1. Thanks

    submitted by /u/InterestingNews1
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    I'm clueless when it comes to Bonds..

    Posted: 03 Jul 2019 01:09 PM PDT

    When you buy a bond, let's say it's trading at a slight premium. What yield are you getting exactly?

    Like if I invest 10,000 into a bond that has a coupon of 3.7%, a current yield of let's say 3.5% and YTC and YTM that are lower. What yield am I getting on that investment?

    submitted by /u/Jake102991
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    AMC

    Posted: 03 Jul 2019 09:03 AM PDT

    Been waiting to buy, will this thing ever stop going down? What is warranting this massive continuous decline?

    submitted by /u/virgo911
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    How do you come up with investment strategies?

    Posted: 03 Jul 2019 07:03 PM PDT

    I apologize in advance if this is a novice question or comes up a lot. I'm somewhat new here and just started my journey into investing last week (not counting the years I've put into 401k). However, I have done my research and I have a solid fundamental understanding of trading shares and options trading and have made a little money so far, roughly $70 out of an initial $1,500 investment. It's only been a week and I know that my gains probably aren't that great, but it's certainly enough motivation to keep me going.

    Ultimately my goal is to reach around $25K in 2 years so I can put a down payment on a house (and can finally afford to move out on my own), and I can throw in roughly $100 - $150/wk towards investments without creating any issues.

    That all being said, how can I develop an investment strategy that can help me meet my goals? I don't mind risky trades, and have set aside an emergency fund in the event anything does happen, but I want to make sure I educate myself first before making any rash decisions.

    Any advice or links to educational materials would be greatly appreciated!

    submitted by /u/CyberneticFennec
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