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    Daily Advice Thread - All basic help or advice questions must be posted here. Investing

    September 28, 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.

    Posted: 28 Sep 2019 05:08 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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    Stock prices drop as White House deliberates on blocking all US investments in China.

    Posted: 27 Sep 2019 09:31 AM PDT

    The booming stock market is up a massive 1.3% since September 1, 2018!

    Posted: 28 Sep 2019 03:25 AM PDT

    Everyone is talking about the booming stock market and how crazy the gains have been.

    According to the great website Portfolio Visualizer, the total stock market has gained an incredible 1.3% from September 1st, 2018 to August 31, 2019. What an impressive number! 1.3% (This includes dividends reinvested.) :)

    Once September figures come out we may see that the stock market has been about unchanged since September 1st, 2018.

    If someone had put their money instead in a total bond market ETF (AGG) their return since last September would have been 10.58%.

    submitted by /u/chargum
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    Tesla dilution over the past 5 years: The company is worth 39% more but each share is worth 3% LESS

    Posted: 27 Sep 2019 08:34 PM PDT

    Chart: https://i.redd.it/nlwafoz8c0o31.png

    (Thanks and credit to u/Pieerre)

    Tesla's market value has increased by 39% over the past 5 years, but Tesla shareholders have not benefited because Tesla has created so many new shares

    Tesla creates an extraordinarily large number of new shares, far more than a normal company. Over the past 5 years, the number of Tesla shares rose from ~125M to ~180M (that's 44% more shares)

    Put simply, the company is divided into pieces (called "shares") and every time a new share is created, the existing shares become smaller (because each share is a smaller piece of the pie)

    The pie grew by 39% over the past 5 years, but each piece of the pie is 3% smaller (because the pie has been divided into so many more pieces). Even though the pie is getting bigger, each piece is getting smaller

    Essentially, Tesla is funding it's operations by draining ownership of earnings and assets away from existing shareholders

    Many Tesla shareholders don't realize this is happening to them. The company is growing but they are being left behind

    submitted by /u/nooorol
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    Class action lawsuit claims retirement fund paying between 0.11% and 0.14% expense ratios is unreasonable and should be closer to 0.015%.

    Posted: 27 Sep 2019 06:45 PM PDT

    From the WSJ

    So says a class-action lawsuit filed this month against H-E-B LP, which alleges that the San Antonio-based company has been overpaying for index funds in its employees' retirement plan. Annual expenses on some of those market-matching funds run between 0.11% and 0.14%—but should instead be as low as 0.015%, the lawsuit argues.

    It's starting to look as if any fee you don't need a microscope to see may be too big to last. The suit against H-E-B is among the newest of several recent cases to contend that merely cheap isn't good enough for retirement investors. And it's the latest sign that the cost of investment management is on its way to zero.

    ...

    How low should the fees on retirement funds be? In 2018, says the Investment Company Institute, a trade group for the asset-management industry, 401(k) investors paid an average of 0.41% in annual expenses on stock funds and 0.34% on bond funds.

    By that standard, H-E-B's index-fund expenses between 0.11% to 0.14% seem like a bargain. But costs have fallen so far in recent years that those low-sounding fees are up to seven times higher than essentially identical funds charge, the suit alleges.

    Fees in 401(k) and other federally regulated retirement plans must be reasonable—although the law doesn't define what that means. In deciding such cases, "the courts have not said 'the cheapest option is the only thing that's reasonable,'" says David Levine, a principal at the Groom Law Group in Washington, D.C., who advises retirement-plan sponsors. Several other factors, such as the quality of service and the possibility of superior investing results, can justify fees above rock-bottom.

    submitted by /u/VCUBNFO
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    Trump Officials Weighing Limits on U.S. Investors Portfolio Flows Into China

    Posted: 27 Sep 2019 08:43 AM PDT

    I'm 20 years old and I'm trying to start my path to retirment any advice?

    Posted: 28 Sep 2019 12:00 AM PDT

    I put around $200-$300 in a Roth IRA (VTSAX) and that's all I'm doing right now. I'm a college student so I hope the investment on myself will be worth the time (I go to college for free with scholarships and grants). I work a minimum wage job and it pays my expenses with just enough for me to save. Once I have a job with a salary I do plan on taking advantage of a 401k match if that is an option. The savings plan for when I start to make a decent salary goes as follows:(6 months expenses saved) 401k up to matching➝ Roth IRA ➝ HSA➝ taxable investments (Vanguard ETF's). I was specifically wondering what your thoughts are on MPI (maximum premium indexing) as an investment option and the pros and cons to compared to the savings plan I laid out?

    submitted by /u/bigchease
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    Information Platforms For Investing

    Posted: 27 Sep 2019 11:24 PM PDT

    Hello,

    I'm looking for informations sources for all things investing that are either free or cheap.I'm aware that multiple platforms are needed for different things and that it's bad to rely completely on anyone website. Here's what I'd like -

    1.A Platform that has all the latest market data as well as detailed metrics.

    1. One that has detailed information company wise.

    2. One which has the latest news in real time.

    Basically I'm looking for a collection of sources that will give me all the information I need to responsibly invest.

    submitted by /u/elfjsc
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    Initial position sizing: what are some golden rules?

    Posted: 28 Sep 2019 12:13 AM PDT

    Hey folks,

    Trying to crowdsource general wisdom on first position opening. I recently came across the "Kelly Criterion" (https://www.investopedia.com/terms/k/kellycriterion.asp) but i bet if someone was to ask Munger whether he is ever applied the Kelly Criterion, I fear we might be blessed with one of his witty insightful comment :).

    That being said, I have always gone with the recommended 5% rule of the total portfolio. Just curious what the veterans and pros on this sub tend to follow.

    Thanks

    submitted by /u/crosmaxal
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    I feel like I'm being ripped off with the expense ratios in my 401(k)

    Posted: 27 Sep 2019 10:10 PM PDT

    Every 3 months I apparently get charged ~$20 for some obscure fee that is ostensibly based on earnings.

    That on top of the fact that the expense ratios for the funds I'm offered are fucking crazy.

    The Large Cap Growth fund that I'm offered has an expense ratio of 1.16%. No, not 16 basis points. ONE HUNDRED and sixteen basis points.

    The REIT fund I'm offered has a whopping 1.54% expense ratio.

    I'm already maxing out my HSA and IRA, so it seems like I have no other choice than to continue eating these expense ratios to take advantage of packing a tax-advantaged 401k account. Hopefully someday I can roll it into something that doesn't have such abysmal options.

    My company had a meeting with the 401k rep not long ago and I asked about expense ratios and they said they would look into seeing if they could offer some lower expense funds.

    My confidence in the guy is pretty low though because he told the group the income limit for a roth ira was $60k. I don't know if he was just plain ignorant or intentionally lying to get people to open a roth 401k instead.

    submitted by /u/RiverYuppy
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    Noob question regarding Small ETF's

    Posted: 28 Sep 2019 05:00 AM PDT

    i live in Australia and lately ive been taking a look at peoples post / recommendations for people investing in the ASX , and i do understand its safer to go with the Vanguard type of shares / the bigger type market caps companies because its less risky,

    but what about all the other small single individual companies like oil / gold / energy explorers that are in the 1c -5c range and could be about too take off due to Significant discovery's / findings ... What are these Type of ETF called? is it " Nano - cap " or " micro cap " or " Speculative stock " ? cheers for the help.

    ( P.s i know these ETF's are alot more risky compared too Vanguard and bigger type of ETF's, But you can make a Big return picking the right ones. i Know if you dont do proper research on the company, you are wasting your time. i Always make sure they are debt free, have cash flow / on going projects, etc. i am just wondering what these type of small ETF's are known as in the investing world )

    submitted by /u/drbrugger
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    The recent problems with IPOs are changing the way people are looking at ‘disruptor’ companies

    Posted: 27 Sep 2019 12:12 PM PDT

    https://www.cnbc.com/2019/09/27/ipos-recent-problems-changing-perceptions-of-disruptor-companies.html

    A series of so-called disruptor companies have run into trouble, either with falling stock prices or poorly received IPOs.

    Peloton is one example, with its stock price down sharply since its Thursday debut.

    "I think the path of profitability has to be fairly clear right now," former Nasdaq CEO Bob Greifeld said. "It has to be a line that you can see and not just a story that you have to believe in."

    submitted by /u/coolcomfort123
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    S&P500 Close 27th September: Bearish Engulfing Pattern

    Posted: 28 Sep 2019 04:09 AM PDT

    S&P500 Daily Candles Forecasts and Reports;

    September 23rd - 24th- 25th - 26th

    ​

    ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

    I am not going to engage with people telling me these things can not be forecast. We're past that now. I am not forecasting. I am reporting what has happened with previous forecasts. If you want to say what is isn't ... Do you.

    ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

    ​

    ​

    In the same trading patterns of recent days, the S&P500 rose a bit in the Asia and European sessions, and then started to sell off in the US session. This was apparent within the first hour of the New York open.

    After a first sell off and attempted break of 2970 there was a retrace to 2980. From 2980, price made a big one ,minute candle breaking under 2970, and then in the following momentum down trended through 2960. The low was made around 2945 before the market closed close to the 2960 level.

    Attempts at breaking recent highs failed, and new lows were made. Although I've been saying this looks like a bear market for over a month now, this was the first time the market has strongly confirmed this.

    If the pattern is to continue, we should have a sideways week ahead of us. Price should hold a general range of 2940 - 2970 and not do much more in the coming week. We're looking for little holding pattern / consolidation and indecision candles. Things like spinning tops, dojis and the like.

    For day traders (like me), the following week may be quite a boring one, but it is it it does at least give extra time to allocate to preparing trade plans, and they'll be needed. The week after, the storm begins.

    submitted by /u/whatthefx
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    Investing under 18 online

    Posted: 28 Sep 2019 02:11 AM PDT

    Hi, I've read about investing and did a research about it for a long time. I belive I can start investing and make the right decisions.

    I am under 18 with paypal account with 50 euros. Is there a LEGAL way to invest under 18 without I'd and only with a paypal account?(online ofc)

    submitted by /u/yuval270
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    Interactive Brokers to Launch IBKR Lite - No commissions platform

    Posted: 27 Sep 2019 06:44 AM PDT

    https://www.businesswire.com/news/home/20190926005753/en/Interactive-Brokers-Launch-IBKR-Lite

    "Interactive Brokers to launch IBKR Lite. New service will provide commission-free, unlimited trades on US exchange-listed stocks and ETFs - plus no account minimums or inactivity fees and free market data for US exchange-traded stocks."

    submitted by /u/pscoutou
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    Interactive Brokers launches commission free trading account

    Posted: 27 Sep 2019 01:38 PM PDT

    Why one analyst thinks Peloton should sell itself to 'another luxury brand' — Apple

    Posted: 27 Sep 2019 10:30 PM PDT

    https://finance.yahoo.com/news/peloton-apple-sale-191309406.html

    Peloton labels itself as a variety of different things: an exercise, tech, software, design, and retail company. But in order to capitalize in these categories, John Meyer, Managing Partner of Starship Capital, believes it has a ways to go. "Peloton is a company that doesn't yet have a robust retail exposure," Meyer said. "And so without that, it's very difficult to sell these things unless there are stores everywhere where people can try them."

    That equipment is pricey: Internet-connected bikes start at $2,245 while treadmills run $4,295. Because of these high costs, Meyer suggested that Peloton align itself with another brand known for high-end hardware: Apple (AAPL).

    "When you're selling these expensive devices, the first thing people are going to stop buying if we hit a recession are these luxury, high-end devices," Meyer said. "And so I think that's another key attribute that's going into the investor decision making here at this point."

    submitted by /u/coolcomfort123
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    What sectors/firms would do well in a deflationary environment?

    Posted: 27 Sep 2019 05:25 PM PDT

    Just what it says. Assume we are about to enter a sustained deflationary period marked by negative interest rate.

    Cui bono?

    submitted by /u/aurelorba
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    Investing in Stocks

    Posted: 27 Sep 2019 09:04 PM PDT

    Hi All,

    Wanted some advice on investing in stocks. I want to be doing an initial investment of a few thousand than additional amount of approximately 100-200 per month for the next 10-20 years. I understand that I will be compounding the funds as well as growing it naturally but I find CBA to be $2.50 approx per quarter per share which seems very minimal.

    I've looked into high yield vanguard , anyone have recommendations or what would be the best option?

    I'm setting it up for my daughter so that when she is approximately 20-25 years old. I'll have funds for her which will benefit her from a young age.

    Thank you

    submitted by /u/Muratanar92
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    Shorting IPOs Once the Lock Out Period Expires

    Posted: 27 Sep 2019 04:39 PM PDT

    It seems like a no brainer to me to short struggling IPOS six months past the IPO date. This is because at six months post IPO, employees can finally sell their shares. Slack, Lyft, Uber, Peloton all seem like good bets to have a significant dip at the six month mark, with employees unloading a lot of shares.

    This strategy was used on SNAP a few years ago, and the short sellers did very well. What am I missing?

    submitted by /u/ZealousidealAide7
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    Blackrock Core Allocation ETFs good option for easy diversified portfolio

    Posted: 27 Sep 2019 11:27 AM PDT

    I've been increasingly using Blackrock's allocation ETFs. It provides automatic asset allocation based on the S&P Target Risk Indexes, which range from conservative to aggressive. A while ago, I did a backtest of all major investment firm's model portfolios and they performed within a reasonable standard deviation over a 10 year period. I figure these allocation ETFs is good option for my lazy rear. I can focus more on my short-term, swing strategies.

    For the investment newbies, and this is subjective, not accounting for risk tolerance, these are my personal recommended minimal holding period for each allocation model: 3 years for Conservative, 4-5 years for Moderate, 6-7 years Growth, 7+ years for Aggressive. These minimal holding period is based on my backtests and simulations.

    What do you guys think? Link to information sheet: https://www.blackrock.com/us/individual/literature/product-brief/ishares-core-allocation-etfs-product-brief-en-us.pdf

    EDIT: I have two portfolios. This is for the long term, so I can retire early. The other portfolio is for my trading, which is different subject and strategy.

    submitted by /u/hunter360
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    What have been your biggest financial blunders?

    Posted: 27 Sep 2019 11:24 AM PDT
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