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    Monday, October 7, 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: 06 Oct 2019 05:10 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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    Uber's next stop: Delivering food and pills to needy patients

    Posted: 06 Oct 2019 03:14 PM PDT

    https://finance.yahoo.com/news/uber-health-eyes-moves-into-the-health-care-sector-120011497.html

    Uber (UBER) is planning to use its dominance in the fast-growing food delivery industry to carve a toehold in the vast and complex health services sector.

    At the CB Insights Future of Health conference this week, the ride-sharing giant's health chief explained how the company is moving to leverage Uber Eats to address very specific needs of patients that lack access to reliable transportation, or simply can't get around on their own.

    Uber Health's focus has been on partnering with providers and transportation brokers to get patients to and from appointments. Currently, the company doesn't have the infrastructure to bill health plans or a government payor, Trigub said.

    submitted by /u/coolcomfort123
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    General Motors: Undervalued and easy 8% upside over the next month?

    Posted: 06 Oct 2019 12:24 PM PDT

    GM stock was riding around 40 just a month ago even while being heavily exposed to the US China trade war.

    Recently, their stock price has dipped to 34 due to the UAW strike.

    I have a strong feeling that there will be a deal eventually between GM and the UAW. So at 34 - isn't this just an easy buy and hold and ride it back to 40 once a deal has been reached?

    submitted by /u/askingbecause
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    HSBC plans to cut 10,000 more jobs worldwide, says report

    Posted: 06 Oct 2019 11:43 PM PDT

    https://www.theguardian.com/business/2019/oct/07/hsbc-plans-to-cut-10000-more-jobs-worldwide-says-report

    The cuts are reported to mostly be in high-paid roles and would form part of a fresh cost-cutting drive by new boss, Noel Quinn, as the bank struggles to adjust to falling interest rates, Brexit and the long-running trade war, the Financial Times reported.

    submitted by /u/MrCrickets
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    China narrows scope for trade deal with U.S. ahead of talks

    Posted: 06 Oct 2019 04:58 PM PDT

    Mutual Fund advertisement talks mostly about past return success!

    Posted: 07 Oct 2019 02:43 AM PDT

    Certain Mutual Funds seem to do better than peer funds and beat the market- year after year after year. They are advertised as successful investments because they have a history of success.

    At the same time, many posters on financial message boards say past return is not an indicator of future results. So I have ignored the successful mutual funds that have done well in the past. But many successful funds then continue to do well and because I didn't purchase these "successful in the past funds" I lost money.

    Maybe in the future, I will accept that "many but not all" mutual funds that have a track record of historical success will continue to do better than their peers in the future and I should invest in them. An example of a mutual fund that has done well historically and will likely beat its peers in the future is FCNTX (Fidelity Contra).

    submitted by /u/chargum
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    What is a monthly 5% out of the money option? hedge against a correction ?

    Posted: 06 Oct 2019 07:39 AM PDT

    Read this somewhere. Can you discuss this idea?

    5% put means the strike price is 5% above current market price.

    So, you make money if the market drops by more than 5% in a given month?

    http://www.cboe.com/products/strategy-benchmark-indexes/put-protection-index

    submitted by /u/CortexExport
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    What drugs do you need to be on to believe there is going to be any sort of trade deal this week?

    Posted: 07 Oct 2019 02:06 AM PDT

    Where can I get this "hopium"?

    submitted by /u/mark000
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    German factory orders slump as investor confidence hits six-year low - business live

    Posted: 07 Oct 2019 01:55 AM PDT

    A damning take on some big name disruptors

    Posted: 06 Oct 2019 07:24 PM PDT

    https://www.profgalloway.com/mdma

    I think post this might prompt some decent discussion, a lot of companies I see discussed around here are mentioned. Galloway, a Clinical Professor of Marketing at NYU, is decidedly unimpressed with the adoration heaped upon many of these companies. I hope the post is read before comments, there are nuggets of truth regardless of what side you stand on the matter. His predictions:

    Overvalued unicorns:

    • Pinterest
    • Snap
    • Twitter
    • Peloton
    • Slack
    • DoorDash
    • Lime
    • Palantir
    • Uber
    • Compass

    Companies that could lose 80% of their value or disappear entirely:

    • Tesla
    • WeWork
    • Lyft
    • Robinhood
    • OYO

    Here's a response: https://www.teslarati.com/tesla-elon-musk-disappear-lose-80-percent-value-nyu-professor/

    submitted by /u/Fearspect
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    GE stock surges as GE will freeze its US pension plan for about 20k employees w/salaried benefits and expects to reduce its pension deficit by $5bn to $8bn. Will offer about 100k eligible former employees a limited-time option to receive lump sum.

    Posted: 07 Oct 2019 04:10 AM PDT

    https://www.businesswire.com/news/home/20191007005406/en/GE-Announces-U.S.-Pension-Plan-Actions

    BOSTON--(BUSINESS WIRE)--GE (NYSE:GE) announced today that it is taking three actions related to its U.S. retirement benefits as part of its strategic priority to improve its financial position:

    Freezing the U.S. GE Pension Plan for approximately 20,000 employees with salaried benefits, and U.S. Supplementary Pension benefits for approximately 700 employees.

    Pre-funding approximately $4-5 billion of estimated minimum ERISA funding requirements for 2021 and 2022.

    Offering a limited time lump-sum payment option to ~100,000 eligible former employees who have not started their monthly U.S. GE Pension Plan payments.

    submitted by /u/retardedbutlovesdogs
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    GM contract talks take turn for the worse; no end to strike in sight

    Posted: 07 Oct 2019 02:07 AM PDT

    https://www.marketwatch.com/story/gm-contract-talks-take-turn-for-the-worse-no-end-to-strike-in-sight-2019-10-06?mod=newsviewer_click_seemore

    DETROIT — Contract talks aimed at ending a 21-day strike by the United Auto Workers against General Motors have taken a turn for the worse, hitting a big snag over product commitments for U.S. factories, a union official wrote in an email to members.

    The letter from UAW Vice President Terry Dittes casts doubt on whether there will be a quick settlement in the contract dispute, which sent 49,000 workers to the picket lines on Sept. 16, crippling GM's factories.

    submitted by /u/MrCrickets
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    Flight shaming hits air travel as 'Greta effect' takes off

    Posted: 07 Oct 2019 01:34 AM PDT

    https://www.reuters.com/article/us-travel-flying-climate/flight-shaming-hits-air-travel-as-greta-effect-takes-off-idUSKBN1WH23G

    LONDON (Thomson Reuters Foundation) - One in five travelers is flying less as "flight shaming" propels travelers to shun air travel for the sake of the planet, according to a survey of 6,000 Western travelers.

    The survey predicted environmental concerns would keep denting air traffic, as activists such as Swedish teenager Greta Thunberg lead the way and turn people off planes.

    submitted by /u/MrCrickets
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    Grim Start to U.S. Auto Sales Stirs Alarm That Collapse Is Here

    Posted: 07 Oct 2019 01:30 AM PDT

    https://www.bloomberg.com/news/articles/2019-10-01/toyota-typifies-ugly-month-with-16-slide-auto-sales-update

    Results were disastrous for leading Asian automakers Toyota Motor Corp. and Honda Motor Co., which both suffered double-digit declines that were worse than analysts anticipated. While a fuller picture will emerge Wednesday when General Motors Co. and Ford Motor Co. are due to report, the poor performance suggests that overall deliveries of cars and light trucks could come in worse than the 12% drop anticipated by analysts, based on six estimates.

    submitted by /u/MrCrickets
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    Funding my Interactive Brokers account.

    Posted: 07 Oct 2019 01:25 AM PDT

    I have recently opened my interactive broker's account. Currently, I am facing difficulty in funding my account. I basically do freelancing and want to transfer funds. I tried Transferwise but they do not do such transfers anymore.

    Can you suggest any alternatives to transfer funds from Master Debitcard to Interactive brokers?

    submitted by /u/EndlessMisery
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    discount rate used for DCF

    Posted: 06 Oct 2019 02:47 PM PDT

    hey guys, how do you determine what discount rate to use for your DCFs? i've seen a huge variety of answers, from using WACC, to the bond yields, to 10% as a standard. Using WACC seems to have given me the most sensible valuations, but i'm very new to dcfs and would really appreciate someone who is a bit more experienced giving me some advice. Thank you!

    submitted by /u/whossayn
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    Where do I put it ?

    Posted: 06 Oct 2019 05:50 AM PDT

    Selling my condo , so will net around $550000, suggestions on where to put this for income generation?

    submitted by /u/Justlookingq
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    Good time to invest?

    Posted: 06 Oct 2019 12:30 PM PDT

    Tried opening an investment account a week ago for my mother. She does not have a retirement account and almost all her expenses are covered by me and my siblings. She has some money in a savings account. Was told by a Merrill Edge banker that this is not a good time to invest because the market is volatile due to the whole impeachment inquiry. I'm not looking for super aggressive growth. Will probably put it in an index fund.

    Do you guys agree? Should I wait until the political situation calms down?

    submitted by /u/shaarm
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    Thinking about switching to Schwab from Robinhood.

    Posted: 06 Oct 2019 04:35 PM PDT

    Can I link outside bank accounts to my brokerage account with schwab? any extra need to know info about external bank linking? And since I've had taxable events with robinhood this year will I have to request that info from robinhood at the end of the year (last year they gave me a document which very easily imports to turbo tax) or will Schwab absorb this paperwork and present me the full list of transactions? The 2nd question is the one I'm more intimidated by to be honest.

    Repost from rSchwab, sadly no responses there.

    submitted by /u/scarabking117
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    When looking at Free Cash flow, can you remove changes from working capital?

    Posted: 06 Oct 2019 06:22 PM PDT

    If you want to see a company's free cash flow by taking cash from operations and subtracting any capital expenditures, should working capital changes also be removed to get a more accurate number?

    submitted by /u/ThaTruth_24
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    Good stocks for October?

    Posted: 06 Oct 2019 04:06 PM PDT

    My university is hosting its annual paper trading competition, starting from today to the first of november.

    Each of us has been given 10k USD + everyday we get another 1K USD. We can only trade with S&P 500 stocks + BYND, TSLA, BABA, UBER and WORK.

    What stocks/strategies should I be eyeballing this month?

    submitted by /u/Flared6
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    New to Investing/ Acorns

    Posted: 06 Oct 2019 01:00 PM PDT

    Very new to investing. Downloaded Acorns and messing around with the app. Any words of advice for someone that's trying to invest? And/or on that specific app?

    submitted by /u/dannyrobles719
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    Is The Candlestick course still relevant? (Stock Trading)

    Posted: 06 Oct 2019 09:22 PM PDT

    Hi. I'm a 20 y/o guy who has invested some money in stocks and earned some profit

    Now I'm considering day trading. People usually recommend watching videos, reading blogs but I'm somewhat old school. Should I read this 2003 book?

    submitted by /u/makeearthgreenagain
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    Do I sell or hold solid gains if i like the stock/company?

    Posted: 06 Oct 2019 06:01 PM PDT

    I am no expert by any means and this money is part of a 401k rollover to an IRA. For reference I got in on $ENPH @ 5.05 a share (360%+ gain) and almost up 100% on $TER. I'm in it for the long run but don't want to lose any + I've made thus far. There are other index funds I would like to put $ into but with all the talk of a recession I'm learning towards sell and just holding the cash....any advice for a 40yr old noob would be much appreciated.

    submitted by /u/bigdigdoug
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    14 years old, making $700 a week. What do I spend it on?

    Posted: 06 Oct 2019 07:43 PM PDT

    I'm currently making about $100-200 a day in sales via my eBay business, and most of that is profit. I've only had the business for a week, but it's pretty consistent in how much I make so far.

    This is the first time I've ever made this type of money before, and I need some advice on what I should be doing with it.

    Proof: http://imgur.com/yOhWU2Q

    (PS: this is my first post on Reddit, go easy on me please, haha.)

    submitted by /u/Earthpineapple
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