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    Saturday, October 5, 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: 04 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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    US created 136,000 jobs in September, vs 145,000 expected

    Posted: 04 Oct 2019 05:32 AM PDT

    Robinhood is offering a free year of Gold if you initiate an ACATS transfer

    Posted: 04 Oct 2019 02:20 PM PDT

    Since the no fee announcements from most of the big brokers, I've seen many posts about people wanting to switch over.

    Yesterday I initiated the transfer from Robinhood to Schwab and today I got a call from the retention department, they offered me a year of free Robinhood Gold. I declined as I don't really need any of the gold features and I seldom trade(when I do I generally hold most of what I buy).

    She was also asking me if there was anything that they could do to retain my account. I politely declined.

    So anyone who is sticking with Robinhood, this may be a good time to get free Gold or anything else they offer outside the free service.

    submitted by /u/omnamahshivay
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    Global Semiconductor Sales Down 15.9 Percent Year-to-Year in August

    Posted: 04 Oct 2019 11:27 PM PDT

    Anyone feel bad for Robinhood?

    Posted: 04 Oct 2019 02:09 PM PDT

    They absolutely initiated and inspired the movement to zero commission. They represent the competitive innovation of the free market. Now everybody else is following suit, and Robinhood has little competitive advantage. They'll likely take a gigantic hit, all because everyone's doing what they did first.

    submitted by /u/garrettmortara
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    What's in it for the banks when they offer high(er) interest CDs?

    Posted: 04 Oct 2019 11:41 PM PDT

    What do they do with the money put into CDs, as opposed to the money put in regular savings or checking accounts?

    submitted by /u/speedco
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    What charting/watchlist software do you recommend?

    Posted: 04 Oct 2019 08:56 PM PDT

    Hi I'm just trying to see if there's any good programs out there (preferably not web-based) that you guys use for charting or just for simple watchlists? I'm currently using TC2000 which isn't bad but it feels a bit outdated for me.

    submitted by /u/StockTock
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    I messaged Fidelity - they say they're not planning to match 0 commission trades

    Posted: 04 Oct 2019 10:51 AM PDT

    With the recent announcements from most of the major discount brokerages matching 0 commission trades in response to IKBR and Schwab, I sent an email to Fidelity asking if they would match. Here's the reply...

    Thank you for contacting us in regard to the recent announcement by other brokerage firms that they are eliminating trading commissions for stock trades. I am happy to assist you today!

    At this time, Fidelity does not plan to match their elimination of commission trading fees. We continue to offer the best value for traders, including our industry-best order execution and price improvement, accepting no payment for order flow for stock and ETF trades, zero mutual fund investment minimums, zero account minimums, the industry's lowest index mutual fund expense ratios, more than 500 commission-free ETFs, and an award-winning brokerage trading platform.

    Fidelity clients also benefit from our unmatched value through a number of recent industry-leading moves such as offering a cash sweep rate more than 10 times higher than Schwab and making investing free with Fidelity ZERO Index Funds.

    You can find more information on our commitment to order execution and price improvement, which can save you more than the cost of our commission, by accessing this page on our site:

    https://www.fidelity.com/trading/execution-quality/overview

    We remain confident in our current offering, but we are always evaluating our services to ensure we continue to provide the best possible value and experience to our customers.

    Thank you for your continued trust in Fidelity, *****. Thank you for choosing Fidelity and have a wonderful day!

    So it sounds like Fidelity is going to try and hold out on this, which is a shame because I do have like 5% of my portfolio in individual stocks for semi-gambling purposes. Bummer.

    submitted by /u/rapier7
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    Does listing currency of ETF matter if buying on margin?

    Posted: 04 Oct 2019 07:37 PM PDT

    Several articles claim that the listing currency of an ETF dos not matter.
    Eg. investing in QQQ (Nasdaq-100 in USD) and EQQQ (Nasdaq-100 in EUR) should yield identical return (apart from minor forex spread/fees) if you convert the fund back to your original currency in the end.

    However, does it still apply if I'm buying on margin? If not, wouldn't it always advantageous to buy the ETF that is listed in a currency with lowest margin interest rate (eg. EUR rather than USD)?

    submitted by /u/Olivia512
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    New York Fed extends daily repo operations to November 4

    Posted: 04 Oct 2019 11:16 PM PDT

    https://www.reuters.com/article/us-usa-fed-repo/new-york-fed-extends-daily-repo-operations-to-november-4-idUSKBN1WJ29L

    The bank will offer daily repurchase agreement, or repo, operations, offering at least $75 billion a day in daily cash injections through Nov. 4. The Fed also announced term repos for firms wanting to borrow cash for longer, with most offerings lasting two weeks. This extends a policy that was initially supposed to end next week.

    submitted by /u/MrCrickets
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    Companies like “Regal Assets” are complete scams and are a giant waste of money. DD Inside.

    Posted: 04 Oct 2019 03:50 PM PDT

    https://militarymoneymanual.com/regal-assets-thrift-savings-plan-gold-ira-scam/

    This article perfectly sums up why companies like Regal Assets are a complete scam. Why am I bringing this up? Because I was just spammed by a user who tried to get me to sign up to be an "affiliate" (i.e. a loser salesman who tries to scam morons/elderly people out of their money to invest in something dumb like "gold IRAs" and other bullshit.

    I'm sure most of you are aware of this, just make sure none of your parents or grand-parents get hoodwinked into this bullshit. As a PSA, you should call them right now to check.

    submitted by /u/Theorymeltfool1
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    Can somebody explain this article to me?

    Posted: 05 Oct 2019 03:40 AM PDT

    Mario Draghi and the ECB confront a slowing euro zone

    As the risk of recession in Europe rises, the ECB must act

    If mario draghi had been hoping for a quiet few months before he retires from the European Central Bank (ecb) at the end of October, he has been disappointed. He has been in charge for eight high-wire years. In 2012 he quelled panic about the break-up of the euro zone by pledging to do "whatever it takes" to save the single currency. In 2015 he introduced quantitative easing (qe, creating money to buy bonds) in the face of fierce opposition from northern member states. Now the euro zone is flirting with recession and governments are not helping by being slow to loosen fiscal policy. At the central bank's meeting on September 12th, Mr Draghi must dust himself down one last time.

    Investors' jitters about a recession and the impact of the trade war have sent bond yields tumbling. The ecb's hawks—such as Jens Weidmann, the head of the Bundesbank, and Klaas Knot, of the Dutch central bank—caution against overreacting with a large stimulus. But the economic data are dreadful. Output in Germany shrank in the second quarter, and some economists are pencilling in another contraction in the third. Italy is stagnating. According to a survey of purchasing managers released on September 2nd, Europe's manufacturing decline shows no sign of abating. The deeper it is and the longer it lasts, the more likely that trouble brims over into the rest of the economy. In Germany retail sales are already slipping and firms are planning to hire fewer workers.

    Inflation is dangerously low. Both the headline figure and the "core" measure—which strips away volatile food and energy prices—are stuck at around 1%, below the ecb's target of inflation below, but close to, 2%. Investors' medium-term expectations, as measured by swap rates, have drifted down to 1.2%, well below levels in 2014-15, when the bank prepared to launch qe. The views of professional forecasters surveyed by the ecb have fallen to their bleakest since polling began in 1999. In an attempt to bolster its credibility, the bank has tweaked its language to emphasise that it does not want to undershoot the target of 2% consistently. But without action, those words count for little.

    Some economists, among them Larry Summers of Harvard University, argue that, with little ammunition left, central banks should refrain from action so as to force governments to step into the breach with fiscal policy. They are right that the root cause of the economic woe is a shortfall of demand. Sovereign borrowing costs in much of the euro area are near zero or below it. In an ideal world governments would leap at the chance to borrow so cheaply in order to invest. And it is also true that monetary policy is likely to be less effective because rates are so low. The ecb's deposit rate is already -0.4%. At some point the benefits of further cuts will be offset by their costs, for example if customers begin to withdraw funds from banks and thus destabilise them. With financial conditions already much looser, qe will not be as 📷
    effective as it was in 2015.

    But for the ecb to stand back and do nothing would be irresponsible. It is legally obliged to achieve price stability. Germany's government shows little appetite to borrow to spend, even if its entire bond yield-curve is submerged below zero. There is even less sign of co-ordinated regional fiscal stimulus in the offing. Until governments loosen the purse-strings, the ecb has no choice but to act. It is the only game in town.

    Mr Draghi must therefore be bold on September 12th. Although the scope for interest-rate cuts is limited, it still exists. The important thing is to mitigate the impact on financial stability by, say, "tiering" deposit rates—giving banks a rebate on some of the interest they would otherwise have to pay to park spare cash with the central bank. This would signal that the ecb can cut rates further without blowing up the banking system.

    He should also restart qe and commit the bank to buying bonds until underlying inflation shows a meaningful recovery. Mr Draghi has said before that he views asset purchases as particularly helpful in reviving inflation expectations. One constraint is the ecb's self-imposed limit on the share of a country's government bonds that the bank can buy. This should be lifted from a third to a half, sending a powerful signal that the ecb means business. The legality of qe is still being questioned in Germany's constitutional court, but a ruling by the European Court of Justice last year appears to give the ecb room to raise those limits in its quest for price stability. The promise of lower borrowing costs for longer might even prompt national treasuries into issuing more debt.

    Last, Mr Draghi must use the bully pulpit to urge governments to exercise their fiscal powers to fend off a recession. You might think that he should avoid taking action at the end of his tenure, so as not to bind the hands of his successor, Christine Lagarde. Not so. A determined response now will save her much work later. Mr Draghi is in a unique position. His stature with investors and governments gives him real clout. And since he departs in a few weeks he can be blunter than he has been in putting across the message that governments, not just the ecb, must act. That would cement his legacy as the man who saved the euro.

    submitted by /u/MrPeanutBeL
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    Ally Invest to follow suit with free trading starting October 9th

    Posted: 04 Oct 2019 10:46 AM PDT

    I reached out to Ally Invest about the possibility of fee restructuring, and a representative confirmed that starting October 9th there will be zero commission fees. For the mean time, Ally was able to extend $500 of commission 'credits' to my account until the change is made October 9th

    Edit: Spelling

    submitted by /u/collinburris
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    I want to get into S&P 500 investing

    Posted: 05 Oct 2019 02:46 AM PDT

    Hi! I am a complete beginner and I have about 10 000 $ that I am willing to put in. How should I start and are there any tips or tricks?

    submitted by /u/hannesmees
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    Understanding the margin account

    Posted: 05 Oct 2019 01:32 AM PDT

    I am trying to understand the accounting that my broker does. My account is a margin account but I have not been using the margin aspect of it, for the most part. I'd like to understand better how their accounting works.

    Is it something like this:

    1) all transactions hit the margin account (regardless of whether it's a fee, dividend, security purchase, or security sale)?

    2) there is a transfer to set the margin account to zero, using the money in my cash account?

    Is it useful to think of these as 2 separate accounts, to understand clearly what's going on?

    submitted by /u/chunkeroo37
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    With so much money in the S&P500 for example, is there a big valuation difference between the 500th and 501st biggest company? Do companies get a 'boost' in valuation once they join the S&P500 because of a boost in demand?

    Posted: 04 Oct 2019 04:58 AM PDT

    How is this 15% return YTD? Aside of knowing I am stupid, am I being stupid?

    Posted: 04 Oct 2019 12:48 PM PDT

    The price is lower today than it was on Jan 2. How does that translate into 15% YTD Return? I must be missing something, but it just doesn't make any sense.

    https://imgur.com/fpvdKK0

    submitted by /u/OldEquivalent4
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    New to investing.. Where to start?

    Posted: 04 Oct 2019 11:21 PM PDT

    Hi there, I'm a 19 year old student in Canada currently learning truck mechanics, i can foresee a not so wealthy future with a job like the latter and im very interested in investing some money. I have heard about TFSA's and would like to know if that's a good option, is it an investment or more of a savings account? I make roughly 1k per month with minimal expenses (phone bill and gas). What do you guys suggest i do in terms of actually investing? Where should i start? I'm really interested in actually buying stocks and see what I can do from there aswell (what platform/website should i use?) . Any advice will be greatly appreciated! Thanks

    submitted by /u/CarpaccioSalad
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    Can someone explain to me how order filling is a loser for $0 commission trades now?

    Posted: 04 Oct 2019 01:07 PM PDT

    I understand how the brokerage can use routing to harvest money from trades you make, getting you a slightly worse price. But there is something I do not understand.

    TD is $0 commission now. With both the website and TOS I can give each trade a defined routing if I want, or leave it at auto. It didn't cost me anything to enable defined routing, I just had to accept the terms of the exchanges that I would be routing to.

    So... if I were concerned about TD routing poorly to harvest part of the margin on my fill, I could instead tell them to route it directly.

    Am I misunderstanding something here?

    submitted by /u/JordanLeDoux
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    Hedge-Fund Style Investment Reading Recommendations?

    Posted: 04 Oct 2019 01:10 PM PDT

    There seem to be plenty of books around on traditional value style investing (securities analysis, intelligent investor, margin of safety etc.). But I'm very interested in learning more about short term investing, specifically thinking like a L/S hedge fund would. Have you guys got any reading along those lines?

    submitted by /u/hex72
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    NBEV in Japan market

    Posted: 04 Oct 2019 08:21 PM PDT

    Isn't NBEV gonna do great in Japan? Perfect market for their products and they're the first in. Don't understand why its dropped.

    submitted by /u/Jaynestown44
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    Best place to learn investing for beginners?

    Posted: 04 Oct 2019 08:13 PM PDT

    What is the best place/resources to learn about investing for free? I am particularly interested in day trading. Thank you all!

    submitted by /u/Picklesnizzz__
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    TD Ameritrade (AMTD) is a great short-term buy

    Posted: 04 Oct 2019 04:24 PM PDT

    TD Ameritrade (AMTD) dropped almost 30% in the past week because of brokerages zeroing out commissions. Does anyone else think that this doesn't make any sense and that this is just an overreaction? Sure trade commissions make up a part of their revenue but it's not a major loss. They have other revenue streams, and the fact that they were able to announce so quickly that they too are offering $0 trades suggests they have other plans in place to make up for the losses of commission-free trades. AMTD also has a great balance sheet, decent management, and a good track record. I think AMTD is oversold and a great short-term buy, and I expect it to bounce to around $40 in the coming weeks.

    tldr; buy AMTD shares and calls

    submitted by /u/HornyAsianBro98
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    Need investment help! No debt. Just started retirement savings. Need investment advice! PLEASE!

    Posted: 04 Oct 2019 07:50 PM PDT

    I'm in my early 40's. Totally paid off home and no debt. I have 220k in the bank. I JUST started saving for retirement. I feel stupid for not starting earlier.... but now is now.

    I opened a Vanguard Roth IRA and maxed it out at $6k for the year.

    220k left. I really don't need to buy anything or spend much of it. I'll budget out an emergency fund etc.

    I am TOTALLY NAIVE and STUPID when it comes to investing.

    But I'm here to lose money with friends so here goes. :o)

    I'm looking for something fairly safe that will grow for retirement. I'm looking at Vanguard ETF's but honestly, I really don't know jack about what that is other than I basically am giving Vanguard a bunch of my money to invest possibly thousands of things.... They already have my Roth IRA which I put into "retire by 2045" fund.

    I know almost anything is probably better than my banks 1.9% on CD's. LOL.

    I think I could also handle buying a couple of rental homes as I'm very handy with repairs.

    I have the ability also to add $26k/year to an investment. I'm planning on 6k of that to max out every year the Vanguard IRA that I started. The other 20k I can add to investments.

    I really need advice on what to invest in. Again I like "fairly safe things - but not as safe as CD's". I VERY much appreciate it.

    submitted by /u/threetractors
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