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    Tuesday, August 6, 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: 05 Aug 2019 05:20 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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    US Treasury designates China as a currency manipulator

    Posted: 05 Aug 2019 03:01 PM PDT

    The U.S. Treasury Department on Monday designated China as currency manipulator, a historic move that no White House had exercised since the Clinton administration.

    "Secretary Mnuchin, under the auspices of President Trump, has today determined that China is a Currency Manipulator," the Treasury Department said in a release. "As a result of this determination, Secretary Mnuchin will engage with the International Monetary Fund to eliminate the unfair competitive advantage created by China's latest actions."

    https://www.cnbc.com/2019/08/05/us-treasury-designates-china-as-a-currency-manipulator.html

    submitted by /u/closingbell
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    Dow futures tumble more than 300 points after China devalues its currency

    Posted: 05 Aug 2019 05:26 AM PDT

    China confirms it is suspending agricultural product purchases in response to Trump’s new tariffs

    Posted: 05 Aug 2019 03:52 PM PDT

    China confirmed reports that it was pulling out of U.S. agriculture as a weapon in the ongoing trade war.

    China is one of the largest buyer of U.S. agriculture. Bloomberg News reported that Beijing may stop importing them completely in response to new tariffs by the United States. According to reports by Chinese State media, it may also slap tariffs on U.S. agricultural products that it already bought.

    https://www.cnbc.com/2019/08/05/china-confirms-it-is-suspending-agricultural-product-purchases-in-response-to-trumps-new-tariffs.html

    submitted by /u/closingbell
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    The luckiest investor of 2018 or how much you could have earned by just knowing the future.

    Posted: 06 Aug 2019 12:07 AM PDT

    Hi folks! I was curious to see how much one could earn during 2018 by investing perfectly (i.e. knowing daily prices for the entire year in advance). This does not make much practical sense, but I couldn't resist my curiosity.

    First, I made a bunch of assumptions (to make the problem tractable):

    1. one starts with 1000$
    2. one can do only 1 action per day
      1. buy 1 item at the lowest price with all your money
      2. sell all your stock at the highest price
      3. do nothing
    3. no fees
    4. fractional shares
    5. all transactions succeed
    6. only securities available at iextrading.com (I needed to get the data somewhere, AFAIK, they might have removed the public access already)

    And the answer is....

    2235976324368894910070981708437303314132384811588503138465677325225209962386423808 USD (2.2e+81 USD or 63.93% return on investment, daily). To achieve this one needed to do just these 107 transactions, easy peasy.

    Obviously that's more than I expected, so I looked into why it was so large. Penny stocks... Then I decided to forbid anything cheaper than 5 USD per share. This brings the number down to 1537713047211124526310105417510931136512 USD (i.e. 1.5e+39, daily ROI 25.64%, transactions).

    Still a lot and I didn't recognize any of these companies. Let's go full conservative here and restrict ourselves to S&P 500 only. This gives us 30 853 548 412.13 USD (i.e. 3.1e+10, i.e. just almost 31 billions, ROI 3.1e+09%, daily 4.84%). So what did you have to do? Just these dozen of dozens transactions.

    I don't want to get you bored, so if you want to read about my methodology, datasets and the process, you are welcome to do so in this post in my blog. TL DR: I did run dynamic programming to do the optimization. Yes, it is optimal (modulo the assumptions above) and I can formally prove it. I somewhat touched this in the post.

    Did you have any crazy ideas like this? If so, please share, I would love to do more similar calculations.

    submitted by /u/merely_curious_
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    Them are rookie numbers, you gotta pump those numbers up! Dow flirting with down 1,000

    Posted: 05 Aug 2019 11:53 AM PDT

    SPX officially finishes with worst day (-2.98%) since Dec '18 (3.24%)

    Posted: 05 Aug 2019 01:24 PM PDT

    Worst days in the past 365 days:

    Date Close Change
    10-Oct-18 2,785.68 -3.29%
    4-Dec-18 2,700.06 -3.24%
    24-Oct-18 2,656.10 -3.09%
    5-Aug-19 2,844.74 -2.98%
    24-Dec-18 2,351.10 -2.71%
    3-Jan-19 2,447.89 -2.48%
    13-May-19 2,811.87 -2.41%
    7-Dec-18 2,633.08 -2.33%
    17-Dec-18 2,545.94 -2.08%
    21-Dec-18 2,416.62 -2.06%
    11-Oct-18 2,728.37 -2.06%
    submitted by /u/pikindaguy
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    China PBOC Sets Yuan Midpoint at Stronger than 7 per dollar - US futures bounce off lows

    Posted: 05 Aug 2019 06:32 PM PDT

    World's Richest Lose $117 Billion in One-Day Market Meltdown

    Posted: 05 Aug 2019 07:29 PM PDT

    The wealthiest 500 people on Earth lost 2.1% of their collective net worth on Monday as U.S. stocks plunged in their biggest drop this year.

    Twenty-one members of the Bloomberg Billionaires Indexlost $1 billion or more as investors reacted to stepped-up tensions between the U.S. and China. Amazon.com Inc. founder Jeff Bezos declined the most, shedding $3.4 billion as shares of the online retailer tumbled. But he's still the richest person on the planet with $110 billion.

    The loss is an abrupt reversal for the world's richest, who up until today had experienced steady gains.

    more

    https://bloom.bg/2GQGAdb

    submitted by /u/markyu007
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    Selling intensifies in stock futures overnight with the Dow now set to fall 630 points on Tuesday

    Posted: 05 Aug 2019 04:53 PM PDT

    How does the Yuan devaluation impact the US?

    Posted: 05 Aug 2019 09:54 AM PDT

    Please ELI5.

    submitted by /u/gymaliz
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    Fed to develop real-time payments system for launch in 2023 or 2024

    Posted: 05 Aug 2019 09:40 PM PDT

    https://www.cnbc.com/2019/08/05/fed-to-develop-real-time-payments-system-for-launch-in-2023-or-2024.html

    The U.S. Federal Reserve announced on Monday it planned to develop its own round-the-clock real-time payments and settlement service, with an expected launch in 2023 or 2024.

    The Fed has studied real-time payments for several years, establishing a task force in 2015. And in October, it solicited public comment on building its own real-time payments system.

    submitted by /u/coolcomfort123
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    Asia shares tumble, with Japan falling almost 3%

    Posted: 05 Aug 2019 05:16 PM PDT

    Does SPY's status as a unit investment trust pose a serious risk?

    Posted: 05 Aug 2019 06:55 PM PDT

    Just discovered today that SPY is a unit investment trust with the following termination clause:

    "The Trust is scheduled to terminate on the first to occur of (a) January 22, 2118 or (b) the date 20 years after the death of the last survivor of eleven persons named in the Trust Agreement, the oldest of whom was born in 1990 and the youngest of whom was born in 1993"

    source: https://us.spdrs.com/public/SPDR_500%20TRUST_PROSPECTUS.pdf (page 49)

    Part b seems troubling to me...if all "eleven persons named in the Trust Agreement" got hit by a bus tomorrow, does that really mean SPY would be terminated in 20 years? Or are there failsafes to keep the fund alive that I'm not aware of?

    I've been considering making SPY my main portfolio holding for a long term buy-and-hold strategy, and I'm wondering if this weird clause has the potential to completely derail things. Any insight appreciated, thanks!

    submitted by /u/throwaway3w4e5r
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    How serious is today?

    Posted: 05 Aug 2019 10:13 AM PDT

    Would like to hear your opinions

    submitted by /u/AwakenedBeast83
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    Is investing in bonds really that detrimental to US debt

    Posted: 06 Aug 2019 12:31 AM PDT

    I'm 18 and I would like to start investing in the stock market. I researched alot of things about the stock market. I saw that bonds were more guaranteed profit then stocks. Eventually I would like to go into stocks but I'm trying to go easy. I might buy a couple of stocks of a company I'ved researched and do long term investing.

    The us is in growing debt. I was just wondering how bad is me basicly adding to debt.

    submitted by /u/SxnDrick
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    New Wrinkle: China Suspends Agricultural Purchases from U.S.

    Posted: 05 Aug 2019 08:11 PM PDT

    "China confirmed reports that it was pulling out of U.S. agriculture as a weapon in the ongoing trade war," CNBC reports.

    "A spokesperson for the Chinese Ministry of Commerce said Chinese companies have stopped purchasing U.S. agricultural products in response to President Trump's new 10% tariffs on $300 billion of Chinese goods."

    submitted by /u/Evergreen3
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    Thoughts on buying gold and long-term treasuries at the moment?

    Posted: 05 Aug 2019 12:15 PM PDT

    I recently sold around 15% of my stocks to buy gold (IAU) and long term treasuries (TLT), what are your thoughts on both assets considering the fact that the market still expect a few rate cuts and leading economic indicators are becoming weaker every month?

    E: My goal isn't to hold forever, I will hold until the trend reverses and stocks become more attractive based on a simple 6m moving average, so my strategy is a little bit like dual momentum

    submitted by /u/etienner
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    Bond ETF prices vs interest rates — questions

    Posted: 05 Aug 2019 05:50 PM PDT

    Just trying to get a handle on this stuff. Any insight is appreciated.

    1) What resource / chart best explains the what percentage price increase in bonds can be expected for every % interest rate decrease? (for LT / I / ST)? I remember seeing it was around 1% price increase for every 100 basis points for every year of duration (eg 10% price increase in the 10 year treasury for every 1% decrease in rate), but I can't remember the exact resource/chart.

    2) What's the best place to look to tell how much of a future rate increase is priced into the bond market (e.g,, 10 year treasury) already at each duration?

    Basically I moved everything into some ETFs (EDV, VGLT, BLV) a few weeks ago. The 10 year treasury rate stands at around 1.75, so the funds have done well. Some of the analysis I've seen puts the floor at 1.3 to 1.4 or so in the next 3 months. I'm wondering, if I assume that's accurate, how much movement is left on prices?

    submitted by /u/rymor
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    Where to be in the market during this tariff frenzy

    Posted: 05 Aug 2019 09:58 AM PDT

    After Trump's recent announcing of another set of Chinese tariffs, I've just lost 100% of my gains over the past 6 months. I'm admittedly too tech heavy in my portfolio. I'm learning my lessons on diversification. Does anyone have any recommended holdings for the current time?

    submitted by /u/Sloooop
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    Bezos Sells More Amazon Stock to Take Proceeds to $2.8 Billion

    Posted: 06 Aug 2019 03:00 AM PDT

    Jeff Bezos sold an additional $1 billion worth of Amazon.com Inc. shares last week, shortly after cashing in $1.8 billion, stock exchange filings show.

    He disposed of 532,120 shares on Thursday and Friday after selling nearly a million shares earlier in the week.

    Read more: Bezos Sells $2 Billion of Amazon Stock After 4% Stake Transfer

    While last week's disposals were his only sales of 2019, they were enough to make it his biggest-ever year of selling stock. Bezos sold $33 million worth of stock in 2018 and $2 billion in 2017. He still owns a 12% stake in Amazon, valued at about $100 billion.

    Source

    submitted by /u/Cuza
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    The cache wallet investment app. User experience sharing.

    Posted: 06 Aug 2019 02:57 AM PDT

    Hi! Does anyone have experience with Cache wallet investment app? It looks new and there are not any considerable reviews around. Thanks.

    submitted by /u/psawas
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    What is FOMO - Google query volume from trends.google.com

    Posted: 06 Aug 2019 02:05 AM PDT

    How Q4 2018 played out in case you have forgotten....

    Posted: 06 Aug 2019 01:30 AM PDT

    FOMC in September not dovish
    ATH in first week of October
    Powell says many more rate hikes to come at some interview, market wants no more hikes
    6 sessions after ATH we were -6%ATH
    9 weeks later (December 13) we were still only -8%ATH after lots of funtimes on the stock market roller coaster
    Then 4 days later was Dec'18 FOMC and we closed at -13%ATH
    FOMC failed to be dovish enough, and 3 sessions later we saw -20%ATH
    Bottom was in because around then the FFF priced out all rate hikes for 2019, within a week the Fed confirmed as much and the all clear was official.

    Similarities to today:
    ATH in late July
    Then FOMC not dovish enough
    9 sessions later -5%ATH

    submitted by /u/mark000
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    Will Nvidia recover significantly this year?

    Posted: 06 Aug 2019 12:58 AM PDT

    I've been wondering if Nvidia will restore some of its former glory as a stock and go beyond the 200 mark any time in the foreseeable future, what's your take on it?

    submitted by /u/ThePrimalDragon
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