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.
- Do Not leave cash sitting in your Schwab brokerage account
- Goldman Sachs: The economic run is not over and the US ‘is not close to recession’
- Hong Kong Stock Exchange Drops Nearly $37 Billion Bid for London Rival
- Do more people expecting a recession help the severity and length of it, or worsen it?
- More than Half of All Stock Buybacks are Now Financed by Debt. Here’s Why That’s a Problem
- Alphabet-owned Waymo is mapping Los Angeles before determining if it can operate there
- MCD Mcdonalds P/B is -23.63. What does that mean?
- Samsung warns its profit fell 56%, but the worst could be over
- I want to switch from Robinhood to Ally for investing with the added bonus of it being a bank.
- German Lenders Pass Pain of Negative Rates to Retail Clients
- Index funds invest trillions but rarely challenge management - Reuters
- SCHWAB extended hours?
- Is American Electric Power (AEP) The Best Dividend Utility Stock For Your Portfolio?
- Startengine
- How to get a commision out of getting investors to put their money on a business?
- With brokerages switching over to commission free trading, what does Fidelity have that makes it worth picking over others?
- Airline bankruptcies surge, leaving rivals vying for planes
- Are there any logic reasons reasons that the stock market will continue going up for a couple more years?
- How to invest in US as a foreigner
- Which mobile app allows you to select specific lots to sell?
- Motley Fool Paid Advice Worthwhile?
- Biggest loss or biggest gain?
- An End To DRIP
| Daily Advice Thread - All basic help or advice questions must be posted here. Posted: 07 Oct 2019 05:15 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:
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! [link] [comments]  |
| Do Not leave cash sitting in your Schwab brokerage account Posted: 07 Oct 2019 08:07 PM PDT I understand that businesses need to make money, but I think that all the cards should be on the table as far as one of the biggest trade-offs investors are making in return for getting commission free trading with Schwab. People who trade stocks often might buy stocks more now that trading is free, but they also might sell them more, therefore leaving funds sitting in cash for a longer amount of time. Fidelity, which has yet to jump on the commission free bandwagon offers money market mutual funds as sweep accounts, so your uninvested cash will earn 1.6%-1.8% (as of October 2019) while it is sitting on the cash sweep account. Schwab on the other hand does not offer money market sweep accounts and rather you get a paltry 0.12% yielding FDIC insured sweep account. Do a quick google search and you will see how many people are hoarding cash and it starts to make sense how Interest Revenue is one of Schwab's biggest revenue drivers and therefore part of the reason they are able to offer commission free trades. Rather than let your money sit in cash, move it into Schwab's prime or federal money market funds (SWVXX or SNVXX), or ultra short-term ETFs (i.e., "cash management ETFs") like BIL, ICSH, or JPST. Schwab's money market funds actually pay a similar or slightly higher yield than the comparable Fidelity mutual fund at the moment. Vanguard still wins in this department though by offering the highest yielding money market funds which can also serve as sweep accounts. I don't keep much cash in my checking account and none in my brokerage accounts and rather I use the ETF ICSH (2.3% SEC yield as of October 2019) as my short to intermediate term savings account. If you need to sell one of these ETFs or a money market fund to buy stocks, you will have to watch out for timing and free riding rules, but it shouldn't be a huge problem. Sorry if this has already been brought up....I understand this won't affect many people who constantly stay invested, and even still, it only has a small effect on your portfolio, but I figured I'd make a post about it just in case. I also don't mean to bash Schwab...but you have to acknowledge that they are knowingly and needlessly adding a step between your sweep account and a higher yielding money market fund for the purpose of higher revenue. Yes, ultimately it falls on the individual to handle their investments as needed, but there's no way Schwab is really doing what's in the best interest of it's customers even though they are being praised for "democratized investing" for their move to commission free trading. Fidelity has a history of paying high interest on it's sweep accounts and they have constantly been mentioning it's higher yielding default money market sweep accounts but I'm afraid it's falling on deaf ears...doesn't really have the same ring as "commission free stock trading". TLDR; Schwab is making money on you by pocketing the spread between the rate on brokerage sweep accounts and market rates as part of a trade-off for commission free trading. This amounts to about $160/yr in lost interest for every $10,000 you leave sitting in cash. Move your cash into a money market fund or cash management ETF instead. Schwab's money market mutual funds listed here Other options are BIL, ICSH, JPST [link] [comments]  |
| Goldman Sachs: The economic run is not over and the US ‘is not close to recession’ Posted: 07 Oct 2019 07:28 AM PDT |
| Hong Kong Stock Exchange Drops Nearly $37 Billion Bid for London Rival Posted: 07 Oct 2019 10:09 PM PDT Hong Kong's stock exchange pulled a $36.6 billion bid for its London rival, a deal that would have united two major trading hubs even as both are clouded in political turmoil. Less than a month after it first unveiled the surprise proposal, Hong Kong Exchanges & Clearing Ltd. said it couldn't pursue a takeover of London Stock Exchange Group PLC without any input from LSE's management. The target's board had quickly rejected the approach. The Hong Kong company had hoped a tie-up would solidify its role as a gateway for the flow of capital between mainland China and Western markets. But it said in a statement Tuesday that it was now "not in the best interests of HKEX shareholders to pursue this proposal." Hong Kong is reeling from months of protests over concerns about China's encroachment on the semiautonomous city. Over the weekend, the Hong Kong's government invoked emergency powers for the first time in half a century in an attempt to quell the unrest. When LSE rejected HKEX's offer last month, it questioned Hong Kong's future as a financial gateway to China. Britain, meanwhile, is negotiating a messy divorce from the European Union. Deal or No Deal The London Stock Exchange has been a favorite target and an active acquiror in the deal market, though many attempts failed. In walking away from the deal, HKEX clears the way for LSE to conclude its own $14.5 billion plan to acquire financial-information and terminal company Refinitiv Holdings Ltd. from a Blackstone Group Inc.-led group. The Hong Kong group's bid was contingent on its London rival scrapping that transaction. Two days after HKEX publicly released its proposal on Sept. 11, the LSE rejected the offer. It said the Refinitiv deal made more strategic sense and would face a less challenging regulatory review. LSE and rivals are increasingly focusing on selling financial data to help counteract the pressure on fees from stock-trading services and other more mature businesses. HKEX had sought to create an Asian-European exchange giant offering trading, clearing, settlement, data and risk-management services spanning different asset classes, time zones and continents. In a blog post on Tuesday, HKEX Chief Executive Charles Li said the "vision for the business looking forward is to build upon the role we already play in Hong Kong, China, Asia and more widely." HKEX declined to make Mr. Li available for further comment. Chinese acquisitions of foreign companies face growing scrutiny from the Committee on Foreign Investment in the U.S., the U.K., and other Western governments worried that Beijing could gain access to sensitive data and financial information. HKEX had tried to address some of these concerns, noting its ownership since 2012 of the London Metal Exchange. It said the primary regulators of LSE's trading, clearing, data and other operations would continue to oversee those businesses, and the merged group would maintain a secondary listing in London. The Hong Kong group could have launched a formal hostile offer, taking its proposal directly to LSE shareholders. But that would have been an uphill battle without obvious support for the deal from HKEX's own shareholders and given the market's positive reaction to the LSE-Refinitiv tie-up. Larry Tabb, founder and research chairman of the financial markets research and advisory firm Tabb Group, said it wasn't surprising that HKEX pulled the offer, particularly with the Refinitiv bid already on the table. "It would have been a herculean effort to get it across the line," he said. Shares of HKEX rose 2.6% in Tuesday midday trading in Asia. The stock had dropped 8.2% from when the proposal was first made public through its last close. The deal was worth $36.6 billion at announcement, and about $34.4 billion based on HKEX's last closing share price and recent exchange rates. The London Stock Exchange has been involved in a string of attempted mergers and takeovers over the past two decades. It is wary of cross-border exchange deals after failing in 2011 to merge with Canada's TMX Group Ltd. and then in 2017 to join forces with Germany's Deutsche Börse AG. [link] [comments]  |
| Do more people expecting a recession help the severity and length of it, or worsen it? Posted: 07 Oct 2019 03:22 PM PDT Two scenarios that I can imagine:
As a result consumer spend is lower, less money is being circulated, which makes the eventual recession worse.
This isn't even accounting for the stock sell offs either. [link] [comments]  |
| More than Half of All Stock Buybacks are Now Financed by Debt. Here’s Why That’s a Problem Posted: 07 Oct 2019 05:10 AM PDT https://fortune.com/2019/08/20/stock-buybacks-debt-financed/ The era of cheap borrowing is fostering corporate America's favorite investor-pleasing activity: Share buybacks. Indeed, more than half of all buybacks are now funded by debt. And while there's an argument that repurchases benefit share prices and investors, at least in the short run, it's questionable whether highly indebted companies should be doing this. Sort of like mortaging your house to the hilt, then using it to throw a lavish party. But once a recession inevitably arrives, the result may not be pretty for companies with lots of leverage, in no small part due to buybacks. With corporate debt now higher than its peak in scary late-2008, Dallas Fed President Robert Kaplan has warned, overly leveraged companies "could amplify the severity of a recession." [link] [comments]  |
| Alphabet-owned Waymo is mapping Los Angeles before determining if it can operate there Posted: 07 Oct 2019 11:45 AM PDT Waymo says it will enter Los Angeles to begin 3-D mapping of the city. The company will study LA's driving infrastructure and traffic congestion. [link] [comments]  |
| MCD Mcdonalds P/B is -23.63. What does that mean? Posted: 07 Oct 2019 09:51 PM PDT I'm fairly new to the investing game. I've been starting to look at companies and try to gain an understanding of their value. I've been putting together a spreadsheet with some data that is automatically updated. I've calculated the Price/Book value of McDonalds to -23.63. What does a Negative P/B mean? This is because the data I'm getting (Yahoo Finance) has MCD's Book value per share as -8.97. Is this right? What does this value being negative say about MCD? Since I'm here, the other stock that has similar behavior is HD (Home Depot) with a P/B of -213! Can someone help explain what this means? [link] [comments]  |
| Samsung warns its profit fell 56%, but the worst could be over Posted: 08 Oct 2019 03:29 AM PDT https://www.cnn.com/2019/10/07/tech/samsung-earnings-profit/index.html
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| I want to switch from Robinhood to Ally for investing with the added bonus of it being a bank. Posted: 07 Oct 2019 10:15 AM PDT Basically title. I currently use Robinhood for investing and have Chase bank for all my bank needs. I don't really like Chase's investing tool and it's not free like Ally will be in a couple of days. I do plan to continue using Chase to hold my money in a checking account. The savings will be moved to Ally. The reason for this post is I want to know what else Ally offers that I should know about this bank/investment tool. Thanks all. [link] [comments]  |
| German Lenders Pass Pain of Negative Rates to Retail Clients Posted: 07 Oct 2019 08:23 AM PDT A growing number of German banks are passing on negative interest rates to their retail customers as the costs become too high to bear on their own... https://finance.yahoo.com/news/german-lenders-pass-pain-negative-090000979.html [link] [comments]  |
| Index funds invest trillions but rarely challenge management - Reuters Posted: 08 Oct 2019 04:42 AM PDT (Reuters) - Index funds now control half the U.S. stock mutual fund market, giving the biggest funds enormous power to influence decisions and demand better returns at the companies in which they invest trillions of dollars. But the leading U.S. index fund firms, BlackRock Inc, Vanguard Group and State Street Corp, rarely use that clout. Instead, they overwhelmingly support the decisions and pay packages of executives at the companies in their portfolios, including the worst performers, according to a Reuters analysis of their shareholder-voting records. [link] [comments]  |
| Posted: 08 Oct 2019 04:41 AM PDT Does schwab mobile app not reflect extended hours quotes? It's 7:40am est and all the quotes on my watchlist are just reflecting yesterday's close. New user, 1st day on app. Thanks [link] [comments]  |
| Is American Electric Power (AEP) The Best Dividend Utility Stock For Your Portfolio? Posted: 07 Oct 2019 07:49 PM PDT I have been looking to invest more into AEP Stock. American Electric Power has been a staple of my portfolio for years. I recently sold half for a 40% gain this year but wish I had hold onto it and I would be up more like 70% not including dividends. I predict that the S&P will go into a drawdown soon and want to make sure that I am positioned correctly. Yeild Curve is inverted, and I feel we are at a cyclical high in market. Are utilities safe even in a recession? [link] [comments]  |
| Posted: 08 Oct 2019 04:33 AM PDT Does it worth it to invest thru this platform, how much of you guys invest here? [link] [comments]  |
| How to get a commision out of getting investors to put their money on a business? Posted: 08 Oct 2019 03:24 AM PDT About a year ago I convinced some family and friends to invest in the expansion of the company that I was working for at the time. It's a healthcare company and they make money left and right so everybody's happy so far. The same company are now starting a new line of business which seems also profitable and I was offered to re-invest the loan of the previous investment which I'm 80% convinced to do, I'm just waiting for the GM's pitch. Actually my family and friends were also offered to do so but only me and one close friend will as everyone else seem to need the money for other things at the moment. Incidentally I met a guy who is a member of an investment group of about 25 investors who are always searching for sound investment opportunities and I think they would be interested on this project so I have asked the GM if he'd be interested in pitching them too. I'm not really familiar with business or investments except for the fact that I was in the right place in the right moment and I don't know the best way of getting some sort of commision out of bringing this group of investors onboard. I'd appreciate any advice from someone who's experienced on this matters. [link] [comments]  |
| Posted: 07 Oct 2019 02:42 PM PDT |
| Airline bankruptcies surge, leaving rivals vying for planes Posted: 07 Oct 2019 09:18 PM PDT
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| Posted: 07 Oct 2019 11:44 PM PDT Recession this, recession that. It's all I read about here in the US. But I never read about the idea of stocks continuing to climb higher and higher. [link] [comments]  |
| How to invest in US as a foreigner Posted: 07 Oct 2019 11:40 AM PDT I do not live in US nor am a citizen, but recently I got a payment of a few thousand bucks in Transferwise, and I am feeling bad because I have a good amount of money that is in my Transferwise account but could be working for me! Have you ever invested with US dollars as a Foreigner? Please give me some advice. I can not create an account in a home broker without Social Security number. [link] [comments]  |
| Which mobile app allows you to select specific lots to sell? Posted: 07 Oct 2019 07:58 PM PDT I'm looking for a brokerage that has a mobile app which is friendly for tax loss harvesting. It's difficult to find specific information about which offers the ability to sell specific lots of shares. For example I know that Merrill edge does not allow you to do it on the app, but you can do or on the website Fidelity's mobile app also doesn't seem to be capable of doing it. Vanguard's app allows you to easily select which lots you want to sell. Does anyone know if the Schwab mobile app lets you do it? [link] [comments]  |
| Motley Fool Paid Advice Worthwhile? Posted: 07 Oct 2019 07:57 PM PDT I've been mostly an index fund investor with Schwab. I read Motley Fool free articles on the market but have never subscribed to their investment advice. Now that Schwab is offering free trades, I'm thinking of trying some individual stocks. Is Motley worth it? I even found a person trying to sell advice of how to invest with Motley and cut 50% off their prices, which seems crazy (https://blog.wallstreetsurvivor.com/2018/10/11/motley-fool-review/). I didn't buy so I don't know but he does say in his pitch that Motley offers advice only on large, established company stock, which doesn't seem a way to make big capital gains. Anyone use Motley and found it profitable? Thenks [link] [comments]  |
| Posted: 07 Oct 2019 06:45 PM PDT What's your biggest lost in the stock market or biggest gain? What would you have done differently? [link] [comments]  |
| Posted: 07 Oct 2019 06:47 AM PDT I currently am holding multiple high dividend yield stocks in an Etrade account. I like Etrade especially for their DRIP. Now that Etrade is offering free online stock trades, I see no reason to continue using DRIP. Instead, I'll just let the dividends accumulate, and reinvest them when I feel the price is right. That's one thing I disliked about using the DRIP; it seemed like the price would spike at about the time the DRIP shares were purchased. As long as I'm disciplined in my approach, can anyone see a drawback to my thinking? [link] [comments]  |
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