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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: 06 Jul 2019 05:12 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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    How would you invest if you knew a 20 year global famine was coming?

    Posted: 06 Jul 2019 05:30 PM PDT

    Let's say hypothetically that on July 1 2020 the planet's food productivity instantly decreased by 25% while our population increased by 25%. Return to status quo after 20 years, with food productivity scaled to meet population. What sorts of investments would you be looking at?

    For example, would having an agricultural ETF be good because demand has drastically increased, or bad because productivity has drastically decreased? Or both?

    What ways could you protect yourself from unknown government responses to the crisis?

    submitted by /u/Not_Michelle_Obama_
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    Investing in a industry you know well vs an index

    Posted: 06 Jul 2019 06:59 AM PDT

    This applies to personal investors who tried both, or anyone well informed enough to answer:

    In your opinion/experience, does investing in individual companies in an industry you know and keep up to date with well enough (energy, tech, etc) provide you with better returns than just an index (S&P500)?

    Assume you are already spending a fair amount of time staying up to date with what is going on & upcoming in the industry, so you can rule out the time factor.

    submitted by /u/__Alcibiades__
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    ROTH vs. TRADITIONAL IRA's

    Posted: 06 Jul 2019 06:47 PM PDT

    I keep seeing advice basically saying of you think your taxes will be higher in retirement go with a Roth, if you think they will be lower go with traditional.

    This doesn't make sense to me.

    Let's assume you have two people and one has a Roth and the other a traditional. And they both:

    1. Put 5k a year in for 20 years (totalling 100k)
    2. Invest in the exact same things
    3. Both accounts have 300k in them after 20 years.

    Now.... it seems to me the Roth IRA person has only paid taxes on 100k and is getting 200k tax free

    The traditional ira person didn't pay taxes on the first 100k... but now has to pay taxes on all 300k.

    So unless the traditional ira persons taxes are 3x lower than they were when they were contributing, it seems the Roth ira is the clear winner.

    Am I correct in this assessment or am I missing something? Because it seems like the Roth is an absolute no brainers in almost all circumstances since I cant really conceive of someone's tax bracket being 3x lower in retirement unless they are withdrawing almost nothing.

    Why would anyone go for a traditional IRA?

    submitted by /u/TheChadAmerican
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    Investing apps that allow you to create indices/invest in multiple stocks at once?

    Posted: 07 Jul 2019 02:38 AM PDT

    Hey just looking for a decent app (Android btw) to create and invest in indices of my own. Any good ones out there?

    submitted by /u/Ozymandias_01
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    How is index investing consistent with value investing if indices contain at least some bad companies?

    Posted: 06 Jul 2019 03:09 PM PDT

    I know Buffett recommends indices to individual investors, but doesn't value investing require picking quality companies?

    submitted by /u/infohawk
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    How does a market expecting a bubble to burst effect a bubble?

    Posted: 06 Jul 2019 09:50 AM PDT

    If we are indeed in a bubble, how does having a great number of people expecting the bubble to burst affect the outcome? Does it delay the pop? Does it it enhance the downturn?

    submitted by /u/Warpimp
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    Question - When short selling, how do voting shares work?

    Posted: 06 Jul 2019 10:32 AM PDT

    As per shortselling mechanism:
    1) person 1 (P1) owns 100 shares
    2) person 2 (P2) borrows 100 shares from P1
    3) person 2 sells 100 shares on the open market
    4) person 3 buys 100 shares on the market from P2.

    Person 1 thinks he owns the shares, and that is why Person 2 is responsible for paying dividends to P1 that company pays out for shares borrowed, during the borrowed time until P2 rebuys (hopefully at lower price) and return the shares to P1

    Question: Shares trading are voting shares, P1 expect to vote on company issues. And P3 bought shares on the open market, fully expecting to vote as well. How does this work? Do both get to vote? Wouldn't then number of votes come in at more than number of outstanding shares?

    submitted by /u/GenesisX75
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    Diversified Royalty Corp?

    Posted: 06 Jul 2019 12:13 PM PDT

    I was looking around for the highest yield I could get away with in a relatively safe asset and came across this:

    https://ca.finance.yahoo.com/quote/DIV.TO?ltr=1

    7.22% yield, if you chart it out to max it's been around since 1998 and it's been pretty steady apart from a few spikes, consistently pays its dividend and expects to continue to with rising revenues.

    What's the catch, if there is one? 7.22% return from a relatively safe asset sounds pretty great, though I'm aware dividends are taxed differently than stock appreciation which tamps down the reward.

    submitted by /u/ShaidarHaran2
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    Social Capital Hedosophia SPAC

    Posted: 07 Jul 2019 12:28 AM PDT

    So its almost been two years since they launched the SPAC. Any thoughts on whether they Ill complete a deal? And if so what company they may SPAC? Interested to hear your thoughts! Ps I am long IPO.A

    submitted by /u/leonardojohn147
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    If you were going to invest in a video game company who would it be and why ?

    Posted: 06 Jul 2019 08:23 PM PDT

    Is there any scenario where the Russian markets won’t be hurt by a democrat president win in US?

    Posted: 06 Jul 2019 10:30 AM PDT

    I'm interested in these markets and trying to figure out how much of the price is due to a bet that Trump will win 2020 vs other factors.

    Obviously Russian relations + sanctions are a point of huge disagreement between parties.

    Also, to what extent is their market resilient to this sort of action?

    submitted by /u/Synthetic_AI
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    Fed Debate Shifts From Large Cut to Whether to Cut at All

    Posted: 06 Jul 2019 06:18 AM PDT

    https://www.bloomberg.com/news/articles/2019-07-05/fed-debate-shifts-from-half-point-cut-to-whether-to-cut-at-all

    The Federal Reserve's debate shifted from how much to cut interest rates later this month to whether to move at all after hiring in June trumped the expectations of economists.

    Yields on two-year U.S. Treasuries jumped to 1.87% from 1.76% the day before, reflecting reduced odds of the Fed aggressively reducing borrowing costs in the near term. Fed funds futures, which had been indicating some possibility of a half-point rate cut in July before the Labor Department's data, are now pricing a quarter-point reduction this month, and at one point on Friday even showed that outcome was less than 100% certain.

    submitted by /u/coolcomfort123
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    Budweiser IPO in Hong Kong: AB InBev prepares for listing

    Posted: 06 Jul 2019 08:19 PM PDT

    The Budweiser brewer's upcoming initial public offering on the Hong Kong Stock Exchange could be the largest ever for a food or drink company.

    Anheuser-Busch InBev, the world's biggest brewer, announced in May that its Asia-Pacific subsidiary, Budweiser Brewing Company APAC Limited, had filed to list shares on the HKEX.

    The company is seeking to raise as much as $9.8 billion and began taking orders from investors Tuesday, The Wall Street Journal reported. The IPO would debut on July 19 and value the business at as much as $63.7 billion.

    J.P. Morgan Securities (Far East) Limited and Morgan Stanley Asia Limited are the joint sponsors for the IPO, AB InBev announced in May.

    In its first quarter earnings report, company management listed China as one of its "key markets" that drives growth. Its revenue in China grew by 7.8 percent. Also, they said the listing will accelerate efforts to pay off the company's large debt.

    AB InBev is worth about $172 billion, with Asian operations accounting for as much as a third of that, the Associated Press reported.

    In China, per capita beer consumption has declined recently, with consumers favoring craft beer, wine and local spirits, The Wall Street Journal reported. But revenues in the competitive market have still grown as drinkers choose more expensive options, helping brewers in the country trade at higher valuations than elsewhere, where beer volumes have slowed.

    AB InBev's portfolio of brands and position in the industry "provide an attractive platform" for potential mergers and acquisitions in the region, the company said in its earnings report. Pulling in more brands could help Budweiser APAC control a larger portion of the highly competitive Asian-Pacific beer market, where the top three brewers have less than half of the market share, the Journal reported.

    CLICK HERE TO GET THE FOX BUSINESS APP Budweiser Brewing Company APAC already produces, imports, markets and distributes more than 50 beer brands in Asia and Australia, including Budweiser, Stella Artois, Corona and Hoegaarden.

    https://finance.yahoo.com/news/budweiser-ipo-hong-kong-ab-154415902.html

    submitted by /u/Thevoleman
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    Index vs Active for taxable/tax advantaged accounts

    Posted: 06 Jul 2019 01:17 PM PDT

    I just want to make sure I understand why:

    Let's say I have 200k

    100k in an IRA 100k in a taxable account

    Suppose I want half in FCNTX (active) and half in FXAIX (s&p500). Assuming I want to take these funds out at the same time, it benefits me to have all IRA funds in FCNTX and all taxable funds in FXAIX rather than the other way around, right? Is this just because the actively managed fund creates more capital gains along the way, and if it is in a tax advantaged account, you don't have to pay along the way?

    Please let me know if I'm missing something. Thank you!

    submitted by /u/AxisPT
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    Quantifying Risk

    Posted: 06 Jul 2019 02:45 PM PDT

    I frequently hear about this concept of "risk adjusted returns" and I'm trying to understand how this is actually quantified. Seems to me this is a very fluid and arbitrary concept that would be very hard to actually put a number on, but high profile investors constantly throw out very specific numbers for their risk adjusted returns so obviously they are quantifying their risk in a very specific way. Is this something that I could do as a retail investor to try to refine my investment approach?

    Maybe a hypothetical would help to examine this: Say bob buys 10 shares of XYZ at $100 and at the same time Jim buys 10 shares of XYZ at $100, but puts a stop loss at $95 (effectively defining his risk). XYZ moves to $200 and they both sell. Bob makes 100% return but also exposed himself to (some amount?) of risk. Meanwhile Jim has made 100% returns but only exposed himself to 5% of risk. So from here is there a formula to calculate this? Is this even relevant to risk adjusted returns? Obviously simply setting a stop loss is probably the most crude method for risk management but regardless....am I just completely off in the weeds here?

    Any thoughts or suggestions for resources to learn more about this would be greatly appreciated.

    submitted by /u/mightyduck19
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    Please Audit My Crypto Exit Strategy

    Posted: 06 Jul 2019 05:44 PM PDT

    Hello,

    I'm a 36 year old in a well paying position where I max out my IRA & Roth every year, while also getting contributions to a pension in a field that I'm very happy in, and want to work in at least part-time until I die. I also usually take a few thousand from my savings and invest in index & individuals stocks after taxes each year.

    In early 2016, I got interested in crypto and put down at the time a substantial amount of my flex spending into Ethereum on coinbase over a few months. I watched the 2017 bubble come and go, and watched a %15000 return trickle back down into a %3000 return on roughly 600 coins in the course of a year. I've already sold my principal (about $10k) and am looking for advice on if my exit strategy sounds reasonable:

    When the market hits $1000/eth again, begin selling off 50k a day and don't stop until 1/2 my coins are sold

    I estimate this will give me a windfall of about $255,000 return after taxes.

    -Split between 3 separate FDIC insured banks.

    Hold for 1 year while consulting CPA in advance on minimizing tax burden.

    -Talk to a fee-only financial advisor about how to split investment

    among total market index funds/bonds

    -Repeat process each time price doubles past $1000 (i.e. 2,000 or 4,000)

    I understand that not selling at current prices (about 300/ea) is a significant risk, but based on my current retirement track it seems like a calculated one to me. I'm on track to retire with a comfortable nest egg at 60, but holding off and selling a little more strategically could shoot me into semi-retirement by my late 40's and give me a lot of flexibility on my shorter-term financial goals (traveling, more selective work projects, ect). What do you all think?

    submitted by /u/Financethrowaway998
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    Best way to get partial ownership in properties and collect “rent”?

    Posted: 06 Jul 2019 05:41 PM PDT

    Most REITs are for corporate or mortgage real estate, correct? Are there any vehicles out there that allow you to directly invest in rental properties and collect monthly dividends in the form of fractional rent?

    submitted by /u/manlymatt83
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    Has anyone heard of or used my constant p2p

    Posted: 06 Jul 2019 05:28 PM PDT

    The above site supposedly only let's you loan to people backed by 150% collateral incase of default with a 8 to 10 percent return Apr. Anyone had any experience with this company or can possibly point out where it's not as safe as it seems?

    submitted by /u/kerager8
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    Vanguard LifeStrategy Growth Fund Questions

    Posted: 06 Jul 2019 05:51 AM PDT

    Unlike the Target Retirement fund, I believe the Lifestrategy Growth Fund is fixed in its 80% Stock and 20% bond ratio. If that's the case, would it be more beneficial/good idea to buy its portfolio composition as ETF components to reduce the expense ratio? What would be some downsides to it? Should I buy a set amount of the Lifestrategy and forget about it or would it be more beneficial to continue to reinvest in the fund until I no longer feel like I can tolerate the risks involved with it?

    I'm a 22 y/o with 6K planning to use my Roth IRA account to contain this. Would it be better to hold the Lifestrategy fund outside of my Roth? Thanks a lot!

    submitted by /u/krapse
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    200 day moving average calculation

    Posted: 06 Jul 2019 02:36 PM PDT

    Is there a site that calculates this for stocks? All financial sites do the 52 week but I can't find a site that does 200 day moving average.

    submitted by /u/dizzytrix
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    High risk etfs?

    Posted: 06 Jul 2019 11:14 AM PDT

    Hi, I'm a 30 year old software engineer and am opening up a Fidelity Visa 2% reward credit card. I don't really have the time to be researching which stocks I want to invest in. Are there any high risk etfs that anyone would recommend, particularly in the tech, crypto or pharma sector? Should I maybe just pick a tech etf from this list or a crypto etf like this one? Ideally I would like to take my credit card rewards and apply them to the startup / tech market or the crypto market.

    submitted by /u/jimmyre23
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