EBay, Stripe and Mastercard abandon Facebook’s libra cryptocurrency Investing |
- EBay, Stripe and Mastercard abandon Facebook’s libra cryptocurrency
- Fed to Start Buying $60 Billion of Treasury Bills a Month From Oct. 15
- Boeing Strips CEO Of Chairman’s Job
- U.S., China Said to Reach Partial Deal
- The Fed is extending its overnight funding operations through January 2020
- If brokers can sell our order flow then what's stopping them from selling data about our positions?
- Five companies, led by Mastercard, Visa and eBay, pulled out of Facebook’s planned digital currency Libra
- Robinhood is offering 120% of stock's value in exchange for the stock itself because of ADR fees
- Trying to "catch a falling knife" during a stock market crash can be so painful!
- Investment losses even when market is going up?!? Confused, please explain.
- How important is overvaluation in reliable companies?
- gold and debt
- If I could only get one ETF or mutual fund, what would you suggest?
- Can anyone recommend an international ETF that doesn't hold Nestle?
- Why hasn't mobile payments taken off in the U.S. like in China?
- Some questions on stock buybacks
- Are there any real advantages to putting money in a CD?
- Calculating cash:debt ratio using balance sheets
- Intel vs AMD vs TSM? which would you choose to buy and why?
- What are some of your stock picks that the market is pessimistic about right now?
- Trump says trade deal with China! ����
| EBay, Stripe and Mastercard abandon Facebook’s libra cryptocurrency Posted: 11 Oct 2019 01:16 PM PDT
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| Fed to Start Buying $60 Billion of Treasury Bills a Month From Oct. 15 Posted: 11 Oct 2019 10:10 AM PDT |
| Boeing Strips CEO Of Chairman’s Job Posted: 11 Oct 2019 06:00 PM PDT |
| U.S., China Said to Reach Partial Deal Posted: 11 Oct 2019 11:22 AM PDT US - China Partial Trade Deal is propping the stock market today [link] [comments]  |
| The Fed is extending its overnight funding operations through January 2020 Posted: 11 Oct 2019 08:11 AM PDT The Federal Reserve will be continuing its overnight funding operations through at least January 2020 and will buy Treasury bills through the second quarter, the central bank announced Friday. Following a disruption in short-term lending markets in mid-September that sent interest rates soaring, the Fed begin conducting its own operations to provide financial institutions with cash in exchange for ultra-safe assets like government bonds. [link] [comments]  |
| If brokers can sell our order flow then what's stopping them from selling data about our positions? Posted: 11 Oct 2019 11:31 PM PDT Brokers know our positions, free cash, leverage and trade history. What's really stopping them from selling that information to the highest bidder? I imagine this data giving a definite edge to someone with deep enough pockets. During times of zero commissions you have to stop and wonder if the brokers would be tempted to do something like this and if they are in fact already doing it. [link] [comments]  |
| Posted: 11 Oct 2019 05:48 PM PDT https://www.ft.com/content/a3e952dc-ec5c-11e9-85f4-d00e5018f061 Five companies, led by Mastercard, Visa and eBay, pulled out of Facebook's planned digital currency Libra on Friday, following sustained political pressure and just days before the project's backers are due to meet for their first board meeting. The exit of Visa, Mastercard, eBay, Stripe and Mercado Pago came as a major blow to Facebook's ambitions to shake up the global payments market and follows one week after PayPal announced it was also pulling out of the project. The withdrawals follow intense scrutiny from international regulators and politicians, some of which have called for the project to be halted altogether, citing money laundering concerns and worries about wider financial stability. "We will continue to evaluate and our ultimate decision will be determined by a number of factors, including the Association's ability to fully satisfy all requisite regulatory expectations," a Visa company spokesperson said on Friday. "Visa's continued interest in Libra stems from our belief that well-regulated blockchain-based networks could extend the value of secure digital payments to a greater number of people and places, particularly in emerging and developing markets," the spokesperson added. An eBay spokesperson said in a statement to the Financial Times that it had made the decision in order to "[focus] on rolling out eBay's managed payments experience for our customers". Payments group Stripe said that in spite of its exit it still believed Libra had "potential" to "make online commerce more accessible for people around the world" and remained open to working with the project "at a later stage". Two people familiar with the decisions said that Mastercard and Mercado Pago had also quit Libra. The Libra alliance, a group largely made up of finance and technology companies, had each decided to put at least $10m behind the scheme. The remaining members are due to meet in Geneva on Monday to nominate the board for the project. Some of the initial members were spooked after it emerged that Mark Zuckerberg, Facebook's founder, will testify in front of Congress about the plans later this month, according to several people familiar with the project. In addition, earlier this week, two Democratic senators wrote to Mastercard, Visa and Stripe to express concern about the project and urge them to reconsider the risks the project poses to the government and the financial system as a whole. Sherrod Brown and Brian Schatz, two members of the Senate banking committee, wrote in their letters: "If you take this on, you can expect a high level of scrutiny from regulators not only on Libra-related payment activities, but on all payment activities." Mr Brown said on Friday: "Large payment companies are wise to avoid legitimising Facebook's private, global currency. Facebook is too big and too powerful, and it is unconscionable for financial companies to aid it in monopolising our economic infrastructure. I trust others will see the wisdom of avoiding this ill-conceived undertaking." People close to the companies said all three of the companies addressed by the senators were concerned about the threat of closer regulatory scrutiny on their business. PayPal had said when it dropped out that it wanted to "focus on our existing mission". People close to the companies said all three of the companies addressed by the senators were concerned about the threat of closer regulatory scrutiny on their business. PayPal had said when it dropped out that it wanted to "focus on our existing mission". A Libra spokesperson said: "We look forward to the inaugural Libra Association council meeting in just three days and announcing the initial members of the Libra Association." [link] [comments]  |
| Robinhood is offering 120% of stock's value in exchange for the stock itself because of ADR fees Posted: 11 Oct 2019 12:17 PM PDT My friend received this email this afternoon. What should he do? 'We noticed that you . . NIO through our stock ... Since NIO is a foreign security, maintaining this position will result in American Depository Receipt ("ADR") fees—small fees (usually 1 to 3 cents per share) charged as a result of making a foreign stock available in the United States. These fees will reduce the value of your account, and may result in a margin call. As an alternative, we'd like to offer you a cash credit equivalent to 120% of the stock's value in exchange for each share of NIO. This will give you a premium for your shares, prevent you from being charged the ADR fee, and no action is required to receive this credit. If you'd like to keep your foreign referral share(s) and accept the associated ADR fees, please reply to this email by Tuesday, October 15. We will use the close price on October 15 to determine the credit you are owed.' [link] [comments]  |
| Trying to "catch a falling knife" during a stock market crash can be so painful! Posted: 11 Oct 2019 02:02 PM PDT In November of 2008, the stock market was in free fall and the brave investors were buying stocks because they were on sale. We bought stocks we thought were "on-sale" thinking they would quickly go back up and we would make a killing. Some of us were even buying on margin because we thought the stock market prices were so crazy and this was a once in a lifetime chance to make real money. So I bought lots of stocks using borrowed funds. Then the stock market really started to crash! DOWN, DOWN, DOWN! By January 2009, I could not sleep at night I was a nervous wreck. I had bought so many falling knives and was bloody and in extreme pain. By February I could not take it anymore and sold these falling knives and went to cash. Lost a fortune! I wish I had a crystal ball because the stock market bottomed out in March 2009 and went up 300% afterwords. But the media was telling us in 2009-2010-2011-2012 and 2013 that we would have a double-dip recession and another huge stock market crash. I stayed in cash and licked my wounds. I learned my lesson, don't try to catch a falling knife! (I just got back into investing at a time I fear is the tail end of the bull market. Lucky me!) [link] [comments]  |
| Investment losses even when market is going up?!? Confused, please explain. Posted: 12 Oct 2019 12:06 AM PDT Hi, I'm a UK investor and I have a portfolio of various funds including index and managed funds. This is with Hargreaves Lansdown, and they are all GBP funds. For example: Legal and General International Index: https://online.hl.co.uk/my-accounts/security_details/sedol/BG0QP60 Fidelity Global Technology: https://online.hl.co.uk/my-accounts/security_details/sedol/BJVDZ16 Yesterday (Friday 11th) the news was all joyous about stock markets rallying over positive trade talk news, the S&P, Dow, FTSE were all posted gains around 1%. Why is it that my portfolio yesterday is showing a loss of 1.5%? The human irrational part of me finds this very unfair, storming all the bad news weather and as soon as it turns positive my portfolio doesn't seem to reap any of those rewards. I imagine it's to do with either valuation point, so the gains will be reflected on Monday? Or it's because the funds are in GBP and GBP strengthened against the USD on Friday, where most of the stocks in those three funds are US stocks so the currency movement is actually adverse? Still seems odd, clicking into the top 10 shares in each of the funds, those shares are all posting very healthy gains for the day but the fund as a whole is down 2%. Specifically the fundsmith one which only has 27 shares, and the top 10 shares which constitute almost 50% of the fund are all way up, I can't believe that the bottom 50% of the fund are all down to counter the top 10's gains. If this is an adverse currency movement, what can I do as a UK investor to protect against this? THANKYOU! [link] [comments]  |
| How important is overvaluation in reliable companies? Posted: 12 Oct 2019 03:52 AM PDT I've been reviewing some stocks to purchase, and have been seeing reliable companies like Microsoft and Adobe showing decent steady growth with good ratings. The only thing stopping me from buying, is that a lot of these companies are overvalued. For instance, Adobe has a trailing P/E of 49.52. My question is, since reliable companies like Adobe show steady results over a number of years, should the overvaluation stop me from investing in that company? [link] [comments]  |
| Posted: 12 Oct 2019 03:52 AM PDT I have red this about gold: Gold could reach be 8k per oz , to eliminate debt This assumes that gold standard would be restored. I have 2 questions... what is meant 1) What does the term debt refer to in this case? And why should an introduction of the gold standard repair the debt? what is meant by debt in this case? 2) ''money gets it's value from that debt''....what does this sentence mean? Why FIAT GETS value from that debt? [link] [comments]  |
| If I could only get one ETF or mutual fund, what would you suggest? Posted: 11 Oct 2019 03:50 PM PDT Just wanted to start with a long term investment. I presume tech ETF or one that follows the SP500. Sorry if this isn't the right place for this. [link] [comments]  |
| Can anyone recommend an international ETF that doesn't hold Nestle? Posted: 11 Oct 2019 10:33 PM PDT |
| Why hasn't mobile payments taken off in the U.S. like in China? Posted: 11 Oct 2019 10:32 AM PDT Mobile payments are extremely convenient and smartphones are ubiquitous in America. Why have Americans been so slow to adopt this technology? [link] [comments]  |
| Some questions on stock buybacks Posted: 11 Oct 2019 11:57 PM PDT Stock buybacks reduce the amount of shares in the market therefore raising the stock price. Why does this happen because the money spent on buying all the stocks should have completely offset the buyback. Secondly who gets the stock during a buyback, is it destroyed? If it goes to the CEO or something what's the point, the CEO is getting free shares then at company expense. [link] [comments]  |
| Are there any real advantages to putting money in a CD? Posted: 11 Oct 2019 02:06 PM PDT I've been looking at online CDs that don't have a huge minimum, and it seems like they offer about 2.25% I haven't had too much success being super proactive with investing, so I thought maybe I should throw a bit of money into something passive and hands-free like a CD However, it seems like everyone is saying that I can make 5% or more just by putting my money in the S&P500 or buying into a few different ETFs The way I see it . . . there are three ways to go: 1 I could put my money into a CD for a year and collect this 2.25% 2 I could put my money into the S&P500 and possibly make 5%. However, if we enter a recession, I might actually lose like 10% or more this year. I'm sure I'll recover those losses eventually, but it isn't the best plan for the next year or eighteen months if we're entering a recession. 3 I could keep my money in a brokerage account as cash. If we enter a recession, I could buy into the S&P500 or various ETFs at a discount and profit off the gradual recovery from the recession. On the other hand, if this recession never comes, my money will sit there doing nothing. I know that cash in a brokerage account is supposed to gain interest, but I'm only using Charles Schwab and Robinhood right now. Charles Schwab offers a pitiful 0.34% on idle cash, and Robinhood says that they're going to roll out their cash management with 2% on idle cash, but that hasn't happened yet. What do you guys think? [link] [comments]  |
| Calculating cash:debt ratio using balance sheets Posted: 11 Oct 2019 05:44 PM PDT I am doing some DD on $MELI. I know the company is modeling itself loosely to Amazon, pumping profits directly back into the company to fuel rapid growth. I figured looking at cash:debt ratios to see if they have changed their corporate behavior over the recent years would be a good first place, but I need to know which line to use to calculate cash:debt ratios. I read that 2:1 is the preferable ratio, but this balance sheet indicates 1:1 cash to liabilities which certainly does not seem right. [link] [comments]  |
| Intel vs AMD vs TSM? which would you choose to buy and why? Posted: 11 Oct 2019 02:58 PM PDT |
| What are some of your stock picks that the market is pessimistic about right now? Posted: 11 Oct 2019 11:40 AM PDT This post about Buffett got me thinking about what stocks Mr. Market is pessimistic about right now and I thought I'd share some of my picks. These are stocks that have trailed the market the last few years, but not without reason. With the exception of BRK.B, I will list dividend paying stocks that I believe can continue paying a growing dividend until their stock price recovers. BRK.B has trailed SPY for most of the this bull market and that's understandably upset some investors. I think a big part of it is because a lot of companies have been aggressive with buybacks while BRK.B is extremely conservative when it comes to repurchasing shares (they only just recently started buying back small chunks). Their KHC stake hasn't panned out well so far. They've got huge positions in financials which have trailed the broader market (maybe a case can be made for them being undervalued?) However, their operating businesses and dividends from the stock portfolio have been piling cash into their war chest which helps them broker deals like this. It's only a matter of when (not if), the next recession comes along Buffet and Munger (or their management team if they are no more) deploy that cash for other favorable deals. MO is ranked as one of the best performing stocks of all time because it goes through extended periods of undervaluation which allows dividends to pick up shares at dirt cheap prices. MO has been beaten down because of declining cigarette volumes and because it appears they overpaid for JUUL. If you take out the BUD stake and assign a value of $0 to their JUUL and CRON stakes, their legacy tobacco business (cigarettes, smokeless tobacco, cigars), trades for a FCF yield of over 11%. The dividend is safe and will continue to grow, but I don't expect the stock price to recover until JUUL starts to contribute to their FCF and cig volume declines stabilize. What they lack in geographic diversity, they more than make up in the diversity of their investments and businesses. BTI has been beaten down for similar reasons. Shortly after they took over RAI (after taking on significant debt) in 2017, the US cig market started showing accelerated volume declines. They are also the dominant player in menthol cigarettes in the US, which makes them more vulnerable than Altria to a menthol ban. That being said, at its current price, they generate around $10 billion in FCF which amounts to a FCF yield of 12.5%. About 60% of that is paid in dividends, while the rest can goes towards debt reduction. They are the second largest tobacco company after PM and often hold a dominant position in certain developing economies (They own roughly 30% of ITC, Indian Tobacco Company which runs a cigarette monopoly in India). Their most recent earnings report showed a strong underlying business that's also poised for growth. They are also well diversified in terms of product offerings (cigs, smokeless tobacco, vapes and heat not burn) PM while not as cheap as the other two, it earns a premium because of the Marlboro brand and their lack of exposure to the US in the cigarette market. The stock initially dropped last year because IQOS showed slowing growth. When talks of a merger with Altria surfaced, the stock dropped some more. However, the talks are now off and their most recent earnings report indicates that IQOS sales have picked up again. The company has been hurt by a strong USD, but their underlying business has shown currency neutral earnings growth that's 8-10% which shows the strength of their business. As IQOS has now been approved for sale in the US by the FDA, it should alleviate their currency issues a bit. Not to mention, any future weakness in the USD will benefit PM. The stock currently has a 6% dividend yield that is safe. This is a slightly dated post, but still mostly relevant for BTI and PM today. XOM is sporting a dividend yield of over 5% (the largest it's been in 20 years). The oil and gas industry as a whole has suffered over the last decade from two oil crashes and growing concerns about climate change. XOM has also had issues with meeting their production goals the last few years. That being said, they are one of the best run companies in the oil and gas sector. They have paid a growing dividend for 35 years and despite two oil crashes in the last decade, they have managed to grow their dividend 6% annually while still maintaining the best balance sheet in the industry (many other either froze or cut their dividend). They have been selling off old assets to invest in growth and are confident they can double their earnings by 2025 assuming oil is $60 a barrel. Here's an informative post about investing in Oil by Joshua Kennon. Also, here's a really good book that talks about the amount of political power the company has in the US and abroad. The stock price will fluctuate with the price of oil, but the dividend will continue to grow. WFC used to be considered one of the best large banks in the US until the fraudulent accounts scandal surfaced a few years ago. The fed has imposed an asset cap which has causing the bank to miss out on a strong economy. The stock will likely trade sideways until the asset cap is lifted, but until then, the bank plans on rewarding shareholders with dividends and buybacks. They pan on buying back 10% of all outstanding shares over the course of a year in addition to a 4% dividend. This will supercharge returns when the asset cap is lifted and WFC can make more loans again. Also, WFC and USB are less susceptible to interest rates as they earn a significant chunk of their revenues in fees, unlike their peers. It's currently trading at a P/B of 1.2. The dividend is safe and will continue to grow at 10% or so. With a starting yield of 4%, it makes for a good entry point. ABBV, BMY and PFE are some stocks in the pharma sector that deserve some notice, but I haven't looked into them much. The uncertainty around these stocks revolve around expiring patents/pipeline concerns and leverage taken on for mergers. Pharma stocks like oil can be volatile but can provide tremendous returns over the long run. With consumer staples and tobacco, pharmaceuticals have been one of the best performing industries (all three of these stocks are on the original list). Nothing is guaranteed, but I feel like at these prices, there is a decent margin of safety in these stocks. Hopefully a few of them pay off moving forward. What are some of your picks? [link] [comments]  |
| Trump says trade deal with China! ���� Posted: 11 Oct 2019 12:43 PM PDT |
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