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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: 25 Aug 2019 05:18 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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    WSJ: Trump Says U.S. and Japan Have Reached Trade Deal in Principle

    Posted: 25 Aug 2019 09:43 AM PDT

    Disney+?

    Posted: 25 Aug 2019 07:52 PM PDT

    Disney just released a bunch of trailers for content that is going to be on Disney+. All of it looks like it is very solid content and so far the trailers are getting a huge amount of views on youtube. Comments overall seem positive.

    Thoughts?

    submitted by /u/Throwawayacct449393
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    China ready to make a deal. Big old green Monday.

    Posted: 25 Aug 2019 08:57 PM PDT

    Ray Dalio's "gauges"

    Posted: 26 Aug 2019 01:02 AM PDT

    I'm reading the "Principles For Navigating Big Debt Crises" by Ray Dalio, and the book (as well as his interviews in various places online) often mentions various "gauges", such as bubble/depression, tightening/easing. Did he publish recipes for those gauges? I'd imagine those are some linear (perhaps with marginal amounts of nonlinearity) combinations of well known economic factors, such as debt/gdp, long/short term interest rates, unemployment levels etc.

    submitted by /u/MakeoverBelly
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    Can the fed just uninvert the yield curve? Would it be a bad idea?

    Posted: 25 Aug 2019 06:04 PM PDT

    The way I understand it is the fed only controls the short term interest rate. If I'm correct all they have to do is lower rates below the long term rate set by the banks I think? Inverted yield is bad and often a predictor of recessions so should the fed just drop the rates. What would be the consequences of this?

    submitted by /u/csdspartans7
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    Emerging Market funds and China

    Posted: 25 Aug 2019 08:34 PM PDT

    Hey everyone, with the recent turmoil in China and Hong Kong and with the emergence of a lot of information exposing the Chinese as being really shady in terms of honest business practices is it a wise idea to begin to pull personal investments out of china? Have any of you heard of "Ex-China" Funds which are traditional Emerging Market funds with no Chinese holdings, What do you all think?

    submitted by /u/KenanoReeves
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    Where can I look to find a detail explanation on learning how to read charts and indicators thoroughly?

    Posted: 26 Aug 2019 12:04 AM PDT

    I want to start options trading as I've done investing before and want to try something new. Yes, the money I have now is something I willing to risk and yes, I understand the risks. I want to learn how thoroughly read and understand charts but also learn how to chart myself and read indicators. Thanks!

    submitted by /u/okStevie
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    Why do people from China like investing in residential real estate?

    Posted: 25 Aug 2019 09:50 AM PDT

    The city I live in is flooded with money coming from China and the prices of residential real estate is sky high. I was talking with my neighbor who is from China, she said she owns 8 different apartments that has no one living in them and are just empty, because she believes that prices will ALWAYS go up.

    I asked her, how she can be sure that prices for apartments will never go down, she told me to not worry too much as everyone is buying apartments because it is a good way to make money.

    But I doubt prices WILL ALWAYS go up like she said, all bubbles come to an end. Literally in my building, only 30% of the units have people living in them. The rest are completely empty, and the owners are all living in China. They don't rent them out either, just sits empty. If interest rates goes up or the banks stop lending, then there will be so many apartment on the market, the bubble will burst very quickly. Whatever the appreciation in value is only on paper unless you can convert into real returns.

    It seems like such a waste of Capital, alot of that investment could be going into businesses or more productive parts of the economy. Instead they just put them into steel and concrete.

    Can someone explain to me why Chinese people think this way? Are there cultural reasons to this? Is this just a case of: "everybody does it, so I will to"? I don't see many white folks or other people lining up around the block to purchase apartments from the sales office when a new building is planned.

    Sure, not just Chinese people like investing in real estate, but they seem to take it to the extreme.

    submitted by /u/Throwaway312_416
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    Due Diligence Literature

    Posted: 25 Aug 2019 04:23 PM PDT

    Honorary first post; I usually lurk so I don't say stupid things (which I reserve for wsb, of course). This is going to be a stupid thing, because I'd like to be less stupid in my approach to investing. I'm here because WSB would tear me apart. Bear with me if you can.

    I'm looking for some decent literature on carrying out due diligence. I'm becoming less interested in restricting 100% of my investments into trading on companies that everybody knows has great long term value. I work in the IT world, and I see a lot of these publicly traded cloud companies that people are discussing, and have the opportunity of carrying out due diligence on them as investments while I evaluate and learn about their products.

    However, this poses a few questions. How does determining value of a company change from various sectors? What kind of scandal could be extremely negative for tech that would hardly impact retail outlets? Data breaches certainly affect cloud providers far more than credit companies, as we've recently realized. I understand there is no simple set out answer, but who are some good authors, articles, or podcasts (any medium is fine for me) that typically discuss this information.

    Now, I hate to ask this to begin with, as Google definitely exists. However, investing is so trendy nowadays; a lot of articles seem to be pretty skin deep and flood my search results. I would go with obvious books like The Intelligent Investor, but I'm not sure how the relevancy of Ben Graham has carried on after four decades of the guy being dead. I've heard the foundational knowledge is great, but not always applicable to current markets. Are there better, more relevant pieces written in respect to the modern market?

    If you can't recall any literature, what are the right questions to be asking in searching for methods of due diligence?

    Finally, I'm sorry this isn't as concise as I'd like it to be.

    TL;dr: I want to read, give me book. Is Ben Graham still OG? If not, who is?

    submitted by /u/emceebull
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    Do REITS buy properties on leverage?

    Posted: 25 Aug 2019 02:35 PM PDT

    Hi,

    If you invest in REITS do you still get the possible appreciation advantage of buying a property with leverage?

    One of the arguments I read about from proponents of real estate investing is that you can take advantage of leverage by using a mortgage. So if you put 20% down on a 300k home and it appreciates by 10% in the first year you would have a 50% return in one year (If you sold or refinanced hypothetically).

    But if REITS also buy on leverage, wouldn't you have the same advantage? In other words, if a REIT buys a property finances 80% of it, and 20 years later it sells it for a higher price, don't you, as a shareholder, get the appreciation from the property via a capital gains distribution?

    Let me know your thoughts. Thanks

    submitted by /u/Matt1251255
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    Opinions on this ETF trading service?

    Posted: 26 Aug 2019 03:48 AM PDT

    Hey, I am a bit intrigued by this guy here but I can't really decide how much of it is legit and how much is just throwing my money away. Do you guys have any thoughts you'd like to share?

    submitted by /u/boffum
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    What is the cheapest way to hedge against a market crash?

    Posted: 25 Aug 2019 03:37 PM PDT

    My portfolio are all long on stocks. What is the cheapest way to prepare for a crash? Out of the money puts? If so, which fund?

    submitted by /u/veteran299
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    Dividend portfolio. IRA or Taxed account?

    Posted: 25 Aug 2019 02:41 PM PDT

    Right not I'm using a Dividend portfolio in a taxed account and a mix of vanguard funds for my IRA. From what I'm gather in these discussions I might have them mixed up... Should my dividend portfolio be in the IRA and my vanguard funds be in the taxable? At some point before 59 I would like to use the income from the dividend portfolio ...Could someone point me towards some helpful links (mainly, tax implications)?

    submitted by /u/tofudiet
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    How much cash do you guys invest every month?

    Posted: 25 Aug 2019 06:41 AM PDT

    How do you diversify your investments % stocks, % bonds, % others.?

    Your age?

    submitted by /u/simon2424
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    Reducing risk in portfolio and its tax effects

    Posted: 26 Aug 2019 12:34 AM PDT

    I read this rather interesting article in Morningstar

    https://www.morningstar.com/articles/943466/the-taxman-says-stay-invested

    about the difficulty about moving portfolio allocations in taxable accounts. I have plenty of stocks in my portfolio that I have held for close to or over 10 years. In my country there are also laws that if an investment has been held for more than 10 years its purchase price for tax purposes is calculated to be either original or 50% of current value (which ever is higher), which means that the on paper tax burden is reducing with time. In the current market situation I would like to reduce my portfolio risks, but selling anything will result in very large tax effects and as is demonstrated in the article, that will in the end cause tax friction that will be money lost in the long term. What strategies are others using in these situations? I have a very basic strategy of keeping "new money" on the sidelines (mostly on short term bonds, which as an investment is pretty bad besides the low risk) when I see risks increasing and investing that into stock market when situation gets worse. In the current situation I have also been thinking of adding around 2 year hedge on the portfolio through either options/warrants/bear fund. That is pretty expensive often, but adding that for even 20-30% portfolio value would mean that when I want to get fully invested again I would have a lot of dry powder and I would not create the tax friction on my current investments.

    submitted by /u/InnocentiusLacrimosa
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    China willing to resolve trade dispute with U.S. via dialogue: newspaper

    Posted: 25 Aug 2019 08:38 PM PDT

    Your Top 10, plus reasoning

    Posted: 25 Aug 2019 06:11 AM PDT

    It doesn't have to be your top 10 holdings, just your best ideas, plus brief reasoning. You don't need to get serious. Just a few words, whatever pops into your head about why you like it.

    Let's share (excuse the pun)!

    1. The Trade Desk (TTD) cos Jeff Green is a legend. Profitable and fast growing company. The 2 things that are rare to see together.

    2. Intuitive Surgical (ISRG). Huge moat. Left everyone else in the dust.

    3. Illumina (ILMN). Cos I like ma genes sequenced, baby! And I'll fertilize those eggs fur ya!

    4. Mastercard (MA). Tollroad for money. Just sounds like a no-brainer.

    5. Amazon (AMZM). Cos I fear Bezos.

    6. Mercado Libre (MELI) cos I been loving this stock almost 4 years and she a giver!

    7. Intercontinental Exchange (ICE) cos I want a piece of your transactions!

    8. IDEXX Labs (IDXX) cuz pets need loving!

    9. Abbott Laboratories (ABT). Over a century of good business and it is my safety blanket.

    10. Canadian National Railway (CNI) cuz trains are magical.

    P.S. if you are lazy just give your top 5

    submitted by /u/WeeWillieWinkieHODLr
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    What do you think about Buffett's import certificate tariff plan?

    Posted: 25 Aug 2019 06:15 AM PDT

    How accurate is a balance sheet an income statement of big Chinese company like alibaba, can they be trusted?

    Posted: 25 Aug 2019 11:30 AM PDT

    How can I I easily track the 2-10 Treasury Yield Spread over time

    Posted: 25 Aug 2019 11:18 AM PDT

    I know you can track it here

    https://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yield But I can't easily see the history and have to "math" everytime, and be actively watching it.

    I'm looking for a chart (ticker symbols?) that I can easily track its history over time.

    I also use TradingView but doing see any formulas for this specifically.

    What do u guys use?

    submitted by /u/RobinGoods
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    There are gold and silver miners listed

    Posted: 25 Aug 2019 06:40 PM PDT

    Due to the massive number of comments I have read here about metals, I would just like to let you know that there are miners that mine these metals. And they are listed and make money. They have gone up anywhere from 100-1000%. You don't have to just buy physical and realize a gain of 20%.

    submitted by /u/SpicyBagholder
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    Won't Uber and Lyft simply raise prices?

    Posted: 25 Aug 2019 05:29 PM PDT

    I keep seeing threads about how they are doomed. At some point won't they just charge the consumer more to increase margins? It's still like 4x cheaper than taking a cab and many would be willing to pay more. Self driving shit is still years away.

    submitted by /u/skifreeme
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    SoftBank stock, Vision Fund, how to invest from the US

    Posted: 25 Aug 2019 05:03 PM PDT

    I'm looking for long term stocks, funds to invest in. SoftBank keeps climbing to the top of my list. Can someone break down how the ADR works?

    submitted by /u/stiziani
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