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.
- Chinese Auditors Are on the Hook After Clients Are Caught Cooking the Books: “There has long been suspicion that Chinese companies have a tendency to fabricate results when necessary. And that seems to be a well-grounded concern”
- Germany's Whole Yield Curve Dives Below 0% for the First Time
- Have I lost money due to currency devaluation
- Alternatives to M1 Finanace Ireland
- Is the solar industry dying?
- Is anyone else questioning whether the markets are capable of yielding that fabled 7% over the next decades?
- Payrolls rise 164,000 as labor force hits a new record
- What are the valuation metrics that look promising for the US stock market?
- What makes you guys choose to actively invest vs passively?
- GameStop (GME) short squeeze is coming
- What's the big deal with bonds with negative yield?
- Brokerage vs Online
- Technical Analysts/Factor Quants, how do you plan for news based market shifts?
- Investing in same stock as retirement?
- Roth 403(b) Retirement Options
- FHA moves to limit cash-out refinances
- Are ETFs required to pass on all distributed dividends to shareholders?
- Quick question on capital gains taxes
- Doesn't it make logical sense to replace US index and non-US index with combined world index in long term portfolio?
- Please talk me out of buying aphria.
- Looking into Roth IRA
- What are some of the biggest indicators a company will issue stock in the near future?
- Foreign company stock, avoiding ADRs
| Daily Advice Thread - All basic help or advice questions must be posted here. Posted: 02 Aug 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:
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! [link] [comments]  |
| Posted: 02 Aug 2019 09:17 AM PDT SHANGHAI—An accounting scandal has disrupted dozens of initial public offerings and other fundraising plans in China, intensifying investor concerns about the amount of trust they can place in audited financial results in the country. In recent weeks, a string of Chinese companies have halted financing plans, with many saying the China Securities Regulatory Commission was investigating their auditor, Ruihua Certified Public Accountants, for suspected violation of securities law. The regulator and Ruihua officials didn't respond to requests for comment. The apparent investigation into Ruihua, China's second-largest homegrown accounting firm by revenue, follows revelations of overstated earnings by a client. In May, the securities commission began a probe of Ruihua's smaller rival GP Certified Public Accountants Co., after finding that GP client Kangmei Pharmaceutical Co. had inflated cash holdings by more than $4 billion. With economic growth at its slowest since at least 1992, investors and analysts say many companies are experiencing financial distress, which in turn is revealing accounting problems that were easier to hide when credit was freely available and businesses were growing rapidly. Beijing is probably also pressuring accountants to be more rigorous, they say, especially since foreign investors are now playing a larger role in China's financial markets. Economic and market weakness has prompted greater scrutiny of listed companies and auditors, as regulators seek to contain financial risk and "purify the market environment," said Landing Zhang, chief executive of Shanghai asset-management firm CYAMLAN Investment. The reliability of financial statements is one of several challenges facing investors in China. There are also question marks over the quality of local credit ratings and official economic data, while critical commentary by analysts and investors is often censored. Chinese bookkeeping is also a sore point in Washington, since Beijing doesn't allow U.S. authorities to inspect audits of Chinese companies listed in New York. "There has long been suspicion that Chinese companies have a tendency to fabricate results when necessary. And that seems to be a well-grounded concern," said Paul Gillis, an accounting professor at Peking University's Guanghua School of Management. Mr. Gillis said part of the reason is that it is extremely difficult to bet against companies by selling stocks short in China. "It's short sellers who tend to identify most of the fraudulent companies because they have the incentives to do so." Auditors declined to endorse—or endorsed only partially—a record 219 annual reports last year, nearly double the 113 in the previous year, according to Wind Information Co., a data provider. These actions suggest an auditor has found issues with the results or has doubts about the company's status as a going concern. Earlier this year, the securities commission found a Ruihua client, Kangde Xin Composite Material Group Co., had overstated profits for the four years through 2018 by $1.7 billion. After endorsing Kangde Xin's financial statements for three years, Ruihua said it couldn't express any opinion about the most recent annual report. Ruihua has said it completely fulfilled its auditing duties. Since then, at least 23 listed companies that are Ruihua clients have flagged delays to refinancing plans, which can mean selling shares or convertible bonds, as have 28 IPO candidates. The Shanghai Stock Exchange has also postponed reviews of four Ruihua-linked applications to list on its new Science and Technology Innovation Board. This is isn't the first time Ruihua and peers have gotten into trouble. In 2017, the Ministry of Finance and the CSRC suspended Ruihua and rival BDO China from auditing public companies for roughly two months, according to the ministry's website, after each was hit by two disciplinary actions within two years. Ruihua was also fined by the market regulator in December 2018 because of problems with a client's annual reports, and three years ago, served a one-year ban for some work related to the interbank bond market, after failing to assist a regulatory probe into a client that defaulted. The local arms of international accountancy networks are the largest players in China, but vie with many local outfits, to whom they have lost market share in recent years, according to the Asian Corporate Governance Association. Firms affiliated with the Big Four—PricewaterhouseCoopers, Deloitte Touche Tohmatsu, Ernst & Young and KPMG—and midtier player BDO are the five largest players. Their combined revenue made up 26% of the total Chinese accounting market, according to a 2018 report by the Chinese Institute of Certified Public Accountants. In the U.S., arms of the Big Four and BDO audit about half of all listed companies, according to Audit Analytics. Amy Lin, a Shanghai-based senior analyst at Capital Securities, said the cost of breaking the law was too low in China. The maximum fine for false financial disclosures is 600,000 yuan ($87,000), while the top criminal punishment for hiding or destroying accounting records is a prison term of five years and a fine of up to 200,000 yuan. On July 26, the market regulator said it would increase prison terms and fines for capital-markets misdeeds, and would revoke licenses of intermediaries, including accounting firms, that failed to fulfill their duties. "The authorities have a clear intention to use the outburst of financial fraud as an opportunity to clean up the market, partly because they have limited capacity to bail out all the troubled companies," said Shen Meng, director at Chanson & Co., a Beijing-based boutique investment bank. [link] [comments]  |
| Germany's Whole Yield Curve Dives Below 0% for the First Time Posted: 02 Aug 2019 04:47 AM PDT Pretty crazy times we're in... https://www.bnnbloomberg.ca/germany-s-whole-yield-curve-dives-below-0-for-the-first-time-1.1296327 [link] [comments]  |
| Have I lost money due to currency devaluation Posted: 02 Aug 2019 09:04 PM PDT In 2007, my family farm land in India was acquired for a thermal power project and we were paid the market price at that time Our family invested that amount in a bank FD @8%(average) from 2007 to 2019 with recurring option in which the interest will be added to the principal after 365 days after deducting 30% from interest accumulated towards taxes In 2007, 1 USD=41 INR (mean price) In 2019, 1 USD=69 INR Our family was compensated in INR to the tune of INR 1,68,10,000 ( USD 4,10,000 in 2007 value) and it was invested in FD @8% and in 2019 the investment value is INR 3,41,35,000 In 2019, 1 USD=69 INR so 3,41,35,000 amounted to USD 4,94,710 In INR we made a gain @6.08 compounded from 2007 to 2019 but in USD the gain falls to 1.58% compounded from 2007 to 2019. Why does the Indian government devalues currency and How should I invest to overcome currency devaluation. [link] [comments]  |
| Alternatives to M1 Finanace Ireland Posted: 03 Aug 2019 03:00 AM PDT Hi, I am wondering if there is any word to investment brokers such as that of M1 Finance available in Ireland. I have degiro but I love watching videos in the subject and the usefulness and the automation that the app provides? [link] [comments]  |
| Posted: 03 Aug 2019 02:59 AM PDT |
| Posted: 02 Aug 2019 10:05 AM PDT X-post from r/personalfinance, where this got banned for some reason. If I had a dollar for every time I read that putting your money in an index fund will yield 7% (before or after inflation, depending on the source) and allow you to live off the 4% draw rate, I'd probably be financially independent by now. It's been working well for the S&P 500, but not so well for the Nikkei 225. I've seen how dollar cost averaging your money in an index for 30 years could leave you worse off than just holding cash. Not only is it possible, but it has actually happened. In a successful, developed economy, no less. Even ignoring Japan and looking at the bigger picture, I've seen how the real GDP growth worldwide has been slowing down from around 6% in the 60s, to around 4% in the 80s, to around 3% now. The world is becoming more developed and developed countries just don't grow as fast. So long story short, what do you think about the next decades being low growth, low inflation and the S&P yielding less than 4% annually? [link] [comments]  |
| Payrolls rise 164,000 as labor force hits a new record Posted: 02 Aug 2019 05:35 AM PDT https://www.cnbc.com/2019/08/02/us-jobs-report-july-2019.html Payroll growth rose in line with expectations in July and the unemployment rate remained at 3.7% amid a sharp jump in the size of the labor force to its highest level ever. Economists had expected the unemployment rate to drop to 3.6%, which would have tied a 50-year low, but an influx of 370,000 new workers to the labor force brought the participation rate up to 63% The Labor Department reported Friday that payrolls increased 164,000 during the month, just 1,000 below the 165,000 Dow Jones forecast that also matched the average monthly gain for the year. [link] [comments]  |
| What are the valuation metrics that look promising for the US stock market? Posted: 03 Aug 2019 04:17 AM PDT |
| What makes you guys choose to actively invest vs passively? Posted: 02 Aug 2019 03:04 PM PDT I'm just curious about what motivates you to use a more hands-on approach to investing rather than something passive like Betterment. [link] [comments]  |
| GameStop (GME) short squeeze is coming Posted: 03 Aug 2019 03:12 AM PDT High chance of monumental short squeeze for GME. Short positions are over 80% from float if we consider that we had an actual short of 76% on July 15th if we take out the 12m shares bought back in the Dutch auction and consider that shorts continued to sell over the last 15 days...this is without considering the options. The company is having available around 230+m from the buyback program which would buy more than 65% from float at current price...I currently do not know another share with higher chance for a short squeeze. There are so many other things that could accelerate the squeeze. Maybe shorts will make an offer to take it private. Soon some shorts will realize that is better to cover as soon as possible considering the current valuation...it's dangerous to wait for others to cover. GME #GameStop #short #squeeze[link] [comments]  |
| What's the big deal with bonds with negative yield? Posted: 02 Aug 2019 08:31 AM PDT What is the big deal with those bonds. Of course, it's something we have never seen before. But the fact that a bond returns -0.25% vs 0.25% is still a small .50% difference. I feel like the fact that it's under zero looks scary, but in reality, nominal rates don't really matter right? If inflation is 1% and bonds yield -0.25%, that's a -1.25% real return. If inflation is 4% and bonds yield 2% it's a -2% real return. Yet I feel like most people would still choose the bond yielding 2% even if it's real return is lower. So, except the fact that it's under 0, does it really change things? [link] [comments]  |
| Posted: 03 Aug 2019 01:47 AM PDT It seems that a brokerage is more costly than an online trading platform, since the brokerage offers other services more tailored to you. Can someone explain the difference between the two? All I know is that brokerage firms provide more services, I am unsure of what these services are, and if the extra cost is actually worth it (especially for someone that does not know much about finance). [link] [comments]  |
| Technical Analysts/Factor Quants, how do you plan for news based market shifts? Posted: 02 Aug 2019 09:44 PM PDT |
| Investing in same stock as retirement? Posted: 02 Aug 2019 09:32 PM PDT I am currently enrolled in a deferred competition (457b) retirement plan through prudential. I was just reviewing my investment overview, which includes investments in: Columbia Dividend Income Fund Institutional Class, Pioneer Fundamental Growth Fund Y, Hartford Midcap, etc. I also have a Schwab account where I just mess around and purchase my own stocks. However, I just realized that all of the stocks associated with my prudential account are available on Schwab. Since I am having a positive return in my prudential account, would it benefit me to also do additional investments through Schwab with my personal accounts. In addition, I know next to nothing about retirement and stocks. I'm slowly learning as I go so you may have to explain like I'm 5. [link] [comments]  |
| Roth 403(b) Retirement Options Posted: 02 Aug 2019 03:22 PM PDT Recently turned 50 and realize I need to be even more aggressive about saving for retirement. My employer (state government agency) has a pension plan that should provide roughly 60% of my salary assuming I work until 63 (when my retirement plan caps out at 2.4%/year worked) and our state remains solvent (which is always in doubt!). I am already maxing out a Roth IRA for myself ($7k) and my wife ($6k, under age 50) but want to begin contributing substantially to my employer's Roth 403(b) (max of $25k/year). I've looked through the fund options in my employer's plan and many are the typically terrible, high expense ratio funds, but there are some Vanguard options mixed in. They are:
The good news is I have access to the classic big 3 funds of VTSAX, VTIAX & VBTLX. I could also sprinkle in some small cap, REIT, etc. if it was advisable. I've played around some with Portfolio Visualizer, but wanted some real human suggestions. (Because who knows your financial situation better than a bunch of complete strangers on the internet? ;) ) Q1: Because my pension already gives me stability and a 'baseline', I'm considering going 100% equities for my Roth 403(b). But is some bond exposure still wise or is it unnecessary given my pension? Q2: Of the given fund options, what would be your recommended allocation? Thank you in advance! [link] [comments]  |
| FHA moves to limit cash-out refinances Posted: 02 Aug 2019 09:13 AM PDT https://www.housingwire.com/articles/49756-fha-moves-to-limit-cash-out-refinances
Emphasis mine. https://www.newyorkfed.org/microeconomics/hhdc.html Household Debt Climbs for 19th Consecutive Quarter The CMD's latest Quarterly Report on Household Debt and Credit reveals that total household debt rose by $124 billion to reach $13.67 trillion in the first quarter of 2019—an increase of 0.9 percent, compared to a rise of 0.2 percent in the fourth quarter of 2018. This past quarter, balances climbed by 1.3 percent on mortgages, 0.5 percent on auto loans, and 2.0 percent on student loans, while total credit card balances fell by 2.5 percent. [link] [comments]  |
| Are ETFs required to pass on all distributed dividends to shareholders? Posted: 03 Aug 2019 12:52 AM PDT So for example - if you own a VOO stock, every time one of the 500 companies pays a dividend, you receive the entire proportional amount? I always assumed the fund managers would reinvest them, turning what should be a high-yield into more growth and less dividends [link] [comments]  |
| Quick question on capital gains taxes Posted: 02 Aug 2019 08:37 PM PDT I've got some stocks I want to unload and they'll be a long-term capital gain. And my understanding is past ~$37,000 in annual income I get taxed at 15% versus 0% under that, correct? Is that calculated by end-of-year income? Meaning the entire gain will be taxed at the same rate? Or does the gain itself add to my income and move me into different tax brackets potentially, which might mean if I sell earlier in the year when I haven't made as much I could be taxed differently? One of my clients is having cash flow issues, is it tax evasion to tell them to not worry about paying me for a few months so I can reduce my 2019 income level to get under that $37k threshold to avoid capital gains? [link] [comments]  |
| Posted: 02 Aug 2019 07:37 AM PDT
...wouldn't it be more simple to just combine both of those funds into one single world stock index fund like VT? Why isn't this a good idea if you aren't a trader and just want to hold stocks for longer term compounding growth, but want not only US, but international exposure? [link] [comments]  |
| Please talk me out of buying aphria. Posted: 02 Aug 2019 08:38 PM PDT Tell me why I shouldn't. Seems to check out and seems like it's going to be big. Why should I not buy It? [link] [comments]  |
| Posted: 02 Aug 2019 07:57 PM PDT I'm new to the subreddit and I'm looking to do some research because I want to open a Roth IRA, and was wondering if the r/investing community to point me in the right direction. Youtube videos, general information, and articles. If possible could someone explain the requirements, pro/cons, and how to open one up. (Super new and wanting to learn) [link] [comments]  |
| What are some of the biggest indicators a company will issue stock in the near future? Posted: 02 Aug 2019 08:29 AM PDT |
| Foreign company stock, avoiding ADRs Posted: 02 Aug 2019 06:52 PM PDT I am in the US and I am interested in buying foreign company stock, but I want to avoid ADRs. The reason is that the ADRs charge fees and I plan to hold small positions, thus the fees eat up too large of a portion of the returns. Are all of the non-ADR foreign stocks traded OTC? I understand that there can be low trading volumes, which I am ok with (Looking for the volumes not to be super low, though). What is a good way to search for such shares? I am not finding web browser search engines to be giving good, focused, results. [link] [comments]  |
| You are subscribed to email updates from Lose money with friends!. To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
| Google, 1600 Amphitheatre Parkway, Mountain View, CA 94043, United States | |
No comments:
Post a Comment