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    Friday, October 11, 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: 11 Oct 2019 05:11 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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    Brief history of stocks by Warren Buffett

    Posted: 11 Oct 2019 03:59 AM PDT

    SAP CEO Bill McDermott stepping down after over nine years leading software giant

    Posted: 10 Oct 2019 08:54 PM PDT

    WSJ Survey: Majority of Economists Say Manufacturing Sector in Recession

    Posted: 10 Oct 2019 09:19 AM PDT

    https://www.wsj.com/articles/wsj-survey-majority-of-economists-say-manufacturing-sector-in-recession-11570716000?mod=hp_listb_pos2

    Oct. 10, 2019 10:00 am ET

    U.S. manufacturing is in recession, two-thirds of economic forecasters said in a survey, and overall growth in the second half of 2019 is expected to further slow.

    In a Wall Street Journal economic survey conducted in recent days, 65.3% of private-sector forecasters said the manufacturing sector was in recession, or two or more consecutive quarters of contraction.

    Forecasters' estimates for economic growth in the second half of 2019 also ticked lower, with U.S. economic output to grow, on average, at a 1.82% pace in the third quarter and a 1.77% rate in the fourth quarter. Those figures are down from a September survey predicting 1.92% and 1.81% growth rates, respectively.

    Respondents largely cited the uncertain trade picture, weak global growth and U.S. political developments in their comments on the economic outlook.

    "It's a laundry list of 'shocks' that are coming one after the other: global growth hiccups, Boeing Max fiasco, IPO market fizzle, GM strike, election cycle swoon and getting compounded by the impeachment drama," said Georgia State University economist Rajeev Dhawan.

    He is among the 55 economists the Journal surveyed from Oct. 4 to Oct. 8, although not every respondent answered every question.

    U.S. Worker Demand Softened Over the Summer

    Manufacturing data is closely watched not just for what it says about factories, but for the signal it sends about demand in the wider economy. U.S. factory activity contracted for the second straight month in September and hit a 10-year low, the Institute for Supply Management reported earlier this month.

    New orders for durable goods—products designed to last at least three years, such as computers and machinery—were down 4.2% in August from a year earlier, the Commerce Department said last month.

    Manufacturing data is closely watched not just for what it says about factories, but for the signal it sends about demand in the wider economy. PHOTO: SCOTT OLSON/GETTY IMAGES

    "But factory employment is still among the highest we've seen in more than a decade, so it's premature to say it is in recession," said Bernard Baumohl, chief global economist at the Economic Outlook Group, in the survey.

    Chad Moutray, the National Association of Manufacturers' chief economist, said manufacturing business leaders are pushing for greater certainty on trade, including a reworked trade agreement with Mexico and Canada and a bilateral trade agreement with China.

    Manufacturing makes up a relatively small slice of GDP, accounting for about 11% of total output and about 10% of total private employment. A contraction in the sector doesn't necessarily mean the 10-year-old expansion is about to end.

    submitted by /u/beck2047
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    "The China Hustle"

    Posted: 11 Oct 2019 07:04 AM PDT

    The China Hustle is a documentary that follows a series of unfolding events after the 2008 financial crisis, where investors seeking new alternatives for high returns found a gold mine in China, at least until the discovery of a massive web of fraud begins to call things into question.

    Having just finished watching this documentary, and especially with the recent ongoing trade situation, it's definitely been an eye opening experience. I highly recommend anyone currently invested or looking into investing into Chinese stocks to heavily scrutinize your existing portfolio and consider carefully what exactly it is that you might actually be buying into.

    A link to the documentary can be found here - https://www.youtube.com/watch?v=55892jT06aI

    submitted by /u/ilikepancakez
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    U.S. Consumer Prices Trail Forecasts as Used-Car Costs Drop

    Posted: 10 Oct 2019 08:09 AM PDT

    https://www.bloomberg.com/news/articles/2019-10-10/u-s-consumer-prices-trail-projections-as-used-car-costs-tumble

    A key measure of U.S. consumer prices rose by less than expected in September as used-car costs fell by the most in a year, potentially bolstering the case for the Federal Reserve to cut interest rates for the third time in three months.

    The core consumer price index, which excludes food and energy, increased 0.1% from the prior month, a Labor Department report showed Thursday, below the median estimate of economists. The annual gain of 2.4% matched projections as well as the August increase. The broader CPI was unchanged on the month and up 1.7% annually, trailing projections.

    submitted by /u/coolcomfort123
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    Real Stock Simulator

    Posted: 11 Oct 2019 02:07 AM PDT

    Good day to all!

    Do you know any app for Android that literally simulates all calls and puts in stock/indexes/futures market? I've searched for one but all I could find are apps with basic BUY/SELL orders. I'd like something more extensive than that.

    submitted by /u/sdafx
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    Rising old used car prices help push poor Americans over the edge

    Posted: 11 Oct 2019 06:55 AM PDT

    https://www.reuters.com/article/us-autos-usa-used-analysis/rising-old-used-car-prices-help-push-poor-americans-over-the-edge-idUSKBN1WQ1AP

    FREEPORT, Ill. (Reuters) - For America's working poor, an often essential ingredient for getting and keeping a job – having a car – has rarely been more costly, and millions of people are finding it impossible to keep up with payments despite prolonged economic growth and low unemployment.

    More than 7 million Americans are already 90 or more days behind on their car loans, according to the New York Federal Reserve, and serious delinquency rates among borrowers with the lowest credit scores have by far seen the fastest acceleration.

    According to data provided to Reuters by industry consultant and car shopping website Edmunds, the average price of that vintage of vehicle is $8,657, still nearly 75% higher than in 2010 despite some softening in prices over the last year. The average new car, in contrast, has seen a price rise of 25% in that same time period.

    submitted by /u/coolcomfort123
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    SoftBank backed $VIR IPO

    Posted: 11 Oct 2019 06:37 AM PDT

    VIR Biotechnology IPOs today at ~2.2 B$ valuation. $VIR has couple of immunology drugs in phase2, some in phase 1, none in phase 3. Since it's SoftBank backed, obviously valuation is very steep compared to its peers. Reportedly Son paid 18$ per share to own 21% stake, $VIR has been priced at 20$. The way biotech IPOs are performing; Son is in for another shock.

    https://www.cnbc.com/2019/10/10/softbank-backed-vir-biotechnology-prices-ipo-at-low-end-of-expected-range.html

    What do you guys think?

    submitted by /u/rjsh927
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    Why is $ADP so high?

    Posted: 10 Oct 2019 02:10 PM PDT

    Automatic Data Processing, Inc., commonly known as ADP, is an American provider of human resources management software and services.

    As far as I can tell, ADP still uses humans to manually process payroll for thousands of companies. They seem like they'll be the first to go with the rise of companies like Gusto, Workday, etc. So why are they still so high? Because HR switching costs are high?

    submitted by /u/i47
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    Questions about understanding equity

    Posted: 11 Oct 2019 02:59 AM PDT

    This is going to be a long post so hang on tight. I recently came across a project that I'm interested in investing in. A small operation, The is a hospitality and event space is being built and looking for potential investors. The things is, that while I expect this to succeed, it's hard to evaluate the value of the business at such an early stage in the process. I'm looking to make a small investment of around $5,000, which is something I could take a hit on if things went south, but as it's my first time making an investment like this, I'm curious as to what things I should be paying attention to/ how I should structure a contract to see a return. Is it something that I should seek equity in, because it's possible to see this business really take off, or does it make more sense to look at it as a loan, to be paid off with interest and see a return that way? I'm so new to this and I want to make a smart move, but I don't know what is an appropriate amount to ask for in either case. Also how to you evaluate a business that's in such easy stages?

    submitted by /u/Lovecraftian-Ink
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    Canadian Brokers cutting fees?

    Posted: 10 Oct 2019 07:55 AM PDT

    Do you think with the current move to zero fees will be followed suit in Canada? Right now TDs fees are 9.99 flat rate plus for options $1.25 per contract....

    submitted by /u/RogarTK
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    'Stocks rose to their session highs on Thursday after President Donald Trump said he will meet with Chinese Vice Premier Liu He on Friday, raising hope the two countries could make progress on the trade front.'

    Posted: 10 Oct 2019 08:05 AM PDT

    I need your help, short survey (under 5 minutes)

    Posted: 11 Oct 2019 06:33 AM PDT

    # # # THANK YOU FOR YOUR TIME # # #

    Survey is over google docs and it is anonymous.

    All questions are optional, so you can choose not to answer.

    Link:

    https://docs.google.com/forms/d/e/1FAIpQLSdmne7ViHuYL3phpV5-YU-iDTCo71Jb7cSVp2r2VCwH81CRPw/viewform?usp=sf_link

    submitted by /u/InvestWise89
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    How would you structure a investment pool for income?

    Posted: 11 Oct 2019 12:06 AM PDT

    I'm new to this whole money managing thing and hope to get some realistic advice. I looked at some annuity calculators and it's kind of disappointing what they pay, but I like the idea of not having to work at it, so now I'm wondering if maybe owning rental property would be the smarter approach. But I'm guessing I should wait for the impending recession before buying anything. In any case, I'm at the theoretical stage right now.

    What's a realistic and smart way to use (let's say $1m for easy numbers) capital for income? I will have no heirs so that's not really important. Not having to know the intricacies of MM and portfolio allocations etc is a real consideration in the long run (mental acuity decrease in older age).

    Thanks

    submitted by /u/Tossmeanewone
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    U.S. and China May Be Headed for Mini-Deal on Trade This Week

    Posted: 10 Oct 2019 12:26 PM PDT

    Schwab brokerage/checking account

    Posted: 10 Oct 2019 07:56 PM PDT

    I just opened a brokerage account. It automatically comes with a checking account but can't find it on their website. Does withdrawals from one account pull from the other?

    submitted by /u/Tenesmus83
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    Distribution Yield vs. SEC Yield. Can someone explain the difference in simple terms? Thanks!

    Posted: 10 Oct 2019 11:43 AM PDT

    How do you guys know when to sell?

    Posted: 10 Oct 2019 10:22 AM PDT

    Hey guys, started stock picking about a year ago and I've worked up to a 10 company portfolio in that time.

    As I have learned, I've picked up some strong winners and losers in that time period. I'm a long term minded investor but since it is my first year in picking I have 2 out of the 10 stocks that I have a question if I want to be holding them long term. They aren't bad companies they just aren't companies I would put money into today if I had they same knowledge I do now when I picked them.

    My question for you all is how do you know whether it's time to cut losses on a loser investment or hold it for the upswing? I've been dollar cost averaging down in some companies I have that have gone down some in volatile market that I believe in but I haven't in two of them as I'd like to see more stability before putting more money in them.

    Any advice would be helpful. Thank you

    submitted by /u/vhindy
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    Brokerage without settlement fund

    Posted: 10 Oct 2019 09:01 PM PDT

    I am going to switch my "play money" from robinhood to one of the larger brokerages. But I'm wondering, is there a brokerage that lets you buy stock directly without having to first transfer funds to a settlement fund and then purchasing stock using that fund's money?

    submitted by /u/lubrogold
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    PG&E: Panic selling again?

    Posted: 10 Oct 2019 12:12 PM PDT

    You might have noticed, PG&E is down again substantially. Same old bankruptcy concerns over power outages.

    But to me this looks like a replay of last year's selling. I just see a strong bull case for a speculator.

    What do you guys think? Am I playing too risky, or are we in for a great run?

    submitted by /u/projomni
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    Target’s Chief Merchant Quits to Run Bed Bath & Beyond

    Posted: 10 Oct 2019 06:55 AM PDT

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