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    Saturday, October 26, 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: 25 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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    JEDI goes Microsoft

    Posted: 25 Oct 2019 04:08 PM PDT

    Microsoft Wins Pentagon's $10 Billion JEDI Contract, Thwarting Amazon https://nyti.ms/2BLDJzn

    submitted by /u/Kosher-Bacon
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    Robert Shiller sees bubbles in the stock market, bond market and the housing market. He expects just 4.4% average annual returns in U.S. stocks over the next 30 years.

    Posted: 25 Oct 2019 03:09 PM PDT

    Robert Shiller, who won the Nobel Prize in economics in 2013, told Investor's
    Business Daily he expects just 4.4% average annual returns in U.S. stocks
    over the next 30 years. That's a disappointing return expectation — less
    than half the market's long-term return and well short of what pensions
    are calling for. The S&P 500's long-term return is 9.84%, says Index
    Fund Advisors.

    https://www.investors.com/etfs-and-funds/sectors/stock-market-crash-robert-shiller-i-see-bubbles-everywhere/?src=A00220&yptr=yahoo#

    submitted by /u/4BigData
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    Subprime Auto Loans Blow Up, 60-Day Delinquencies Shoot Past Financial Crisis Peak

    Posted: 25 Oct 2019 03:10 PM PDT

    MSFT wins $10B contract from the Pentagon

    Posted: 25 Oct 2019 04:17 PM PDT

    A Crash Will Come. And That’s OK.

    Posted: 25 Oct 2019 06:18 AM PDT

    Bitcoin approaches $10,000, with a 30% daily gain at time of writing.

    Posted: 25 Oct 2019 06:53 PM PDT

    This price movement is accompanied by very high volume, which tends to indicate momentum in the direction of the change in price.

    submitted by /u/DoItYrselfLiberation
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    Microsoft wins Pentagon’s $10 billion JEDI cloud contract, beating Amazon

    Posted: 25 Oct 2019 08:13 PM PDT

    What scared Jerome Powell in December 2018 [video]

    Posted: 25 Oct 2019 09:07 AM PDT

    Why Jerome Powell did the 180 degree turn in monetary policy in December 2018, by Danielle DiMartino, former advisor at the Dallas branch of the FED.

    https://youtu.be/I-BE8JQwCS0?t=1495

    submitted by /u/MakeoverBelly
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    Amazon Stock Has Nearly Rebounded from Its Earnings Selloff. Here’s Why.

    Posted: 25 Oct 2019 07:05 PM PDT

    So how bad was Amazon's third-quarter earnings report, really? Turns out Wall Street isn't all that worried.

    Yes, the company missed EPS estimates, as the costs of expanding one-day delivery ate into operating margins. And fourth-quarter sales guidance was below Street estimates. But what looked like a rout in Amazon shares late Thursday and early Friday has turned into practically a nonevent. By Friday afternoon, Amazon (ticker: AMZN) shares were down just 1.6% to $1751.52.

    And here's why: Amazon has a long history of investing in its business at the expense of short-term profitability, and investors for the most part have been willing to indulge management's aggressive share grabbing behavior—it tends to pay off, eventually.

    Amazon Web Services, once something of a science experiment, now likely accounts for half of Amazon's market cap and maybe more. A few analysts trimmed price targets Friday as they tweaked their models for the light guidance, and there are pockets of concern about that lack of clarity around the outlook miss. The company pointed to an increased consumption tax in Japan, and a shift in the date of Diwali affecting sales in India. But the main theme in the analyst coverage is simply that Amazon is being Amazon, and its investment will eventually pay off.

    "Amazon leans into investment spending when it is encouraged by the results," D.A. Davidson analyst Tom Forte writes in a research note Friday. "In general, when it is not satisfied it scales it back. We see the current heightened spending on advancing its one-day Prime shipping efforts as the latest example. Additionally, the increase in spending often results in investor anxiety, which can put short-term pressure on its stock. Conversely, we believe it creates a buying opportunity, as it has in the past. Therefore, we recommend investors purchase shares and are reiterating our Buy rating."

    Canaccord Genuity's Maria Ripps isn't worried, either. She repeated her Buy rating and $2,250 price target this morning. Her view: "Q3 results reflected accelerating revenue growth due to the expansion of one-day shipping while ongoing investments in the program contributed to a contraction of operating margin." As for AWS, she cites management's comment on the call that price reductions are being negotiated in exchange for long-term commitments. "The revenue growth acceleration this quarter gives us more confidence in the wisdom of one-day shipping investments, and we expect an extended period of high growth to continue to attract investors to the stock over the long-term," she writes.

    Ronald Josey, of JMP Securities, agrees that the investment strategy is justified. "Amazon is clearly seeing demand for Prime One Day shipping, as paid unit growth, online stores, and third-party seller services revenue growth all reaccelerated in the quarter," he writes in a research note. "And while this growth comes at a cost, with Amazon expecting to spend ~$1.5 billion in Q4 to further expand Prime One Day, we believe the longer-term benefits of greater share of wallet outweigh any short-term costs." He keeps his Market Outperform rating, though trims his target slightly to $2,250, from $2,275.

    Agrees Oppenheimer's Jason Helfstein, who keeps his Outperform rating on the shares: "Given AMZN's success making investments, we expect investors to look through near-term margin pressure."

    RBC Capital's Mark Mahaney thinks investors ought to be more focused on AWS. "We went 37 questions into the EPS call before someone finally asked about AWS...huh?!" he writes. "Of all the AMZN pieces, the AWS growth and profit outlook probably deserves the most investor attention right now. The rest of the AMZN long thesis is fully intact. And we strongly doubt AWS is at a negative inflection point." Mahaney, who has been bullish on Amazon shares for more than a decade, isn't changing views now. He keeps a Buy rating, with a slightly reduced price target of $2,500, down from $2,600.

    Credit Suisse analyst Stephen Ju, who has an Outperform rating and slightly trimmed $2,100 price target, writes that there was "noise" around third-quarter results and fourth-quarter guidance but says "the more important signals are the absolute unit growth and revenue acceleration that One-Day Prime is delivering, as well as the step-up in capitalized leases for AWS." Adds Ju: "We continue to favor this more aggressive stance from the company as it endeavors to put greater distance between its consumer value proposition and that of its competitors."

    Source: Barron's

    submitted by /u/coolcomfort123
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    I am from Singapore and can anyone teach me how to use the tools for investing, preferably in the context of my country?

    Posted: 26 Oct 2019 03:28 AM PDT

    When I search for how to invest, I only get advice on 'what you should do with your money in your 20s' and the likes of that. I can't seem to find any guides on how to actually go about starting my investing journey. I know that I need to set-up a brokerage account, how do I do it? What do I click on after I get an account? I hope someone is able to walk me through the menial and technical aspects of starting to investing. Have a good day to those reading this!

    submitted by /u/Manofbat125
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    Activision Blizzard’s annual convention begins next week. Bank of America analysts say investors should look out for these events.

    Posted: 25 Oct 2019 01:45 PM PDT

    General Summary:

    Watch out for Diablo, Overwatch, and Warcraft announcements.

    Blizzard's banning of Hearthstone players for supporting Hong Kong's liberation has already prompted backlash from gamers, protesters, and even members of the House of Representatives. One group already plans to protest the decision at BlizzCon, and the widespread disappointment toward the developer's actions could prompt additional demonstrations.

    The publicity could harm the company's image and endanger growth of Hearthstone's user base, the BAML analysts said.

    "Threats of a boycott on Blizzard games come when year-over-year declines for Hearthstone have begun to stabilize," they wrote. "The commercial impact is unclear."

    https://markets.businessinsider.com/news/stocks/bank-of-america-investors-follow-5-things-blizzcon-diablo-overwatch-2019-10-1028629099#double-diablo-reveals1

    submitted by /u/ilikepancakez
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    I learned about investing, then I looked at my dads finances and now I'm seriously concerned

    Posted: 25 Oct 2019 08:38 PM PDT

    My dad has been a very high earner throughout most of his life. At his peak he earned around 350k a year about 10ish years ago. He made some decisions since then like taking some off years, and unability to get employed after wiped him out. Currently in his retirement account he thinks he has about 85k and is 54. After divorce he basically is responsible financially for me and my 2 brothers for college, me and my brother only have 2 years left, I think about 40k student debt to pay plus he takes care of all of our living expenses. Other brother has yet to start college. Also 3 cars for us he has to pay off, not sure on the amounts but is about 5 years from paying me and my middle brothers off, all IK is my youngest brothers car cost 22k.

    At the moment I think my dad is earning a little over 100k gross income. He enjoys work and thinks he will do it for about another 15 years. As smart as he is I came to the painful realization that I just know way more about finance then him and am very concerned. His goal is 1 million in 15 years ( no idea how he reached that but apparently hes confident he can reach it). He was confident he could reach it and thought it was enough but I just talked to him about the CV of 1M then and the withdraw rate and he was in disbelief. At 3% inflation thats over 1.5 million and at 2% thats over 1.3 million. He was in disbelief and it got worse when I told him about the 3-4% withdraw rate.

    Trying to make it better I explained he won't need nearly as much with no kids to pay for and not need to save money. He however has no idea of how much he will spend without it so I can not give anything close to an accurate estimation of how much he will need. The good news I think though is he will have a big SS check with his past earnings but that could be cut. Also does not own a house so he will either have a mortgage or rent to pay through retirement. At least he does not care too much about the size of his house so that is a plus.

    Im just looking for some hope or anything I can pass onto my dad to help him out, I'm just crushed right now with my dads financial situation.

    submitted by /u/csdspartans7
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    Businesses Fear U.S., China Won’t Reach Deal on Core Issues

    Posted: 25 Oct 2019 06:14 AM PDT

    How Long Can This Expansion Last?

    Posted: 25 Oct 2019 02:49 PM PDT

    I'm seeing a lot of people getting quite bearish and expecting crash or a recession in 2020/2021. I'm also not feeling super bullish but I don't think it's a good idea to sell when so many people feel like stock market is about to crash (as I think the herd is mostly wrong). Is it possible this bull market lasts another 10 years? Has there ever been a 20 year bull market? How long can a bull market go on for in theory? Is there some upper limit?

    submitted by /u/furrypurpledinosaur
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    Nearly every analyst covering Amazon says buy the dip, except one

    Posted: 25 Oct 2019 06:32 AM PDT

    https://www.cnbc.com/2019/10/25/nearly-every-analyst-covering-amazon-says-buy-the-dip-except-one.html

    Barclays told clients it's "still early" to buy the dip on Amazon, as the e-commerce giant's period of heavy investment could hurt financials further before things get better.

    Shares of Jeff Bezos-led Amazon plunged as much as 9% about reporting third-quarters earning that fell short of Wall Street's expectations.

    Almost every other Wall Street analyst recommended buying the dip.

    submitted by /u/coolcomfort123
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    PG&E Shares Tumble as Wildfire Complicates Bankruptcy Case

    Posted: 25 Oct 2019 08:23 AM PDT

    https://www.wsj.com/articles/pg-e-shares-tumble-as-wildfire-complicates-bankruptcy-case-11572013663?mod=hp_lead_pos1

    PG&E Corp. PCG -25.07% stock and bond prices tumbled on Friday, as Wall Street wagered that the damage from the Kincade Wildfire will likely complicate the utility firm's attempts to emerge from bankruptcy.

    PG&E shares dropped 24%, tumbling $1.70 to $5.50 each in early New York Stock Exchange trading, after the Kincade fire spread through Sonoma County in northern California. The company's $3 billion bond due 2034 fell about 3.5% to 106.63 cents on the dollar and was the third most actively traded bond Friday with $130 million changing hands, according to data from MarketAxess.

    The action reflects expectations that the firm may face some liability for starting the blaze, traders said—an outcome that would likely reduce any potential recoveries by investors in PG&E's Chapter 11 bankruptcy proceeding.

    Officials haven't determined the cause of the blaze, but PG&E filed a public report Thursday stating it became aware of a broken wire on one of its transmission lines in the area seven minutes before the fire began.

    Among the issues at hand Friday: PG&E could be solely responsible for wildfire claims that arise before it emerges from bankruptcy, while payment for postbankruptcy claims could be shared through a statewide wildfire fund that is being set up to help shore up the finances of California utilities.

    Close to 2,000 residents of the county in Northern California have been evacuated as the fire quickly grew to over 10,000 acres, fueled by strong winds and dry conditions. PG&E has been under intense pressure in the state for its role in previous fires and for a program of blackouts that aim to limit the likelihood of blazes.

    submitted by /u/beck2047
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    US and China are close to finalizing some sections of trade deal, US trade representative says

    Posted: 25 Oct 2019 08:19 AM PDT

    What's up with the Wiki? it gives me a 404

    Posted: 26 Oct 2019 03:40 AM PDT

    What should I do with a windfall of 60k

    Posted: 25 Oct 2019 11:49 PM PDT

    Why was the market so green today?

    Posted: 25 Oct 2019 09:11 PM PDT

    With all the market fears and what seemed like a lack of new information to cause a market rally, why was the market so green today? Am I missing any bullish information since yesterday?

    submitted by /u/scionburry
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    IRA Portfolio

    Posted: 25 Oct 2019 05:19 PM PDT

    When I graduated college (2012) I was given a set of mutual fund accounts (T Rowe Price) by my grandparents at a value of $8k. It's up to $34k now and I've added another mutual fund and a Roth IRA. I added the IRA out of ignorance and failed to seek out help on how best to approach retirement savings.

    For your retirement accounts, do you have just one IRA or are you building a larger portfolio? I read how people say to diversify but I don't know if that means diversify for multiple funds within the portfolio or one fund that is diversified. I'd say i'm very much a novice in this realm and looking for a bit of insight. Thanks!

    submitted by /u/BackpackandBrains
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    Anyone who got started investing with aTarget Date Fund but then eventually exchanged out into something else, what funds did you end up switching to?

    Posted: 25 Oct 2019 08:20 AM PDT

    TDFs seem to be known as good options to get started investing with. What did you switch to eventually, if you did, and why?

    submitted by /u/nutbutterguy
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    Does Ally investment allow mutual fund. Is there $0 commission mutual funds?

    Posted: 25 Oct 2019 08:01 PM PDT

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