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    Thursday, October 24, 2019

    Telsa shares surge after beating earnings. Investing

    Telsa shares surge after beating earnings. Investing


    Telsa shares surge after beating earnings.

    Posted: 23 Oct 2019 02:00 PM PDT

    CNBC: The Fed is sharply increasing the amount of help it is providing to the financial system. (to $120 billion from $75 billion overnight)

    Posted: 23 Oct 2019 08:02 PM PDT

    CNBC: The Fed is sharply increasing the amount of help it is providing to the financial system. https://www.cnbc.com/2019/10/23/fed-repo-overnight-operations-level-to-increase-to-120-billion.html

    A "temporary" operation just became more interesting. At this point, it's probably only newsworthy if the fed stops these operations

    submitted by /u/photowanderer
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    Microsoft beats on revenue and earnings; stock is little changed

    Posted: 23 Oct 2019 01:10 PM PDT

    https://www.cnbc.com/2019/10/23/microsoft-msft-earnings-q1-2020.html

    Earnings: $1.38 per share, excluding certain items, vs. $1.25 per share as expected by analysts, according to Refinitiv.

    Revenue: $33.06 billion, vs. $32.23 billion as expected by analysts, according to Refinitiv.

    submitted by /u/coolcomfort123
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    Since 1972 an even mix of small, mid and large caps beat a total stock market fund by 36%

    Posted: 24 Oct 2019 02:42 AM PDT

    Jim puts a thousand dollars in a total stock market fund in 1972 and never touches the money other than reinvesting the dividends. As of September 30th, 2019 he has $107,958

    Larry puts a thousand dollars in an investment that mirrors 1/3 small-cap, 1/3 mid-cap, and 1/3 large-cap and he now has $169,811

    Looking back at the decades since 1972 some times the portfolio with the small and mid-caps did better other times a total large-cap fund did better but over the 47 years since 1972, the diversified portfolio of 1/3 small-cap, 1/3 mid-cap, and 1/3 large-cap did significantly better.

    This should encourage young people to diversify their portfolio instead of just going with a total stock market fund which leans towards large caps.

    submitted by /u/chargum
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    Federal Reserve Repo Operations is Quantitative Easing

    Posted: 23 Oct 2019 12:49 PM PDT

    I keep hearing that these are just overnight operations and only involve treasuries.

    They are not all overnight loans. Looking at the Federal Reserves website there is numerous longer repo loans "term repos". https://apps.newyorkfed.org/markets/autorates/tomo-results-display?SHOWMORE=TRUE&startDate=01/01/2000&enddate=01/01/2000

    In fact, looking at the last 25 Repo operations 25% has been longer than 1 day (not counting the Friday ones that are not paid back until Monday).

    October 10 - 2 weeks (42.6 Billion), October 11 - 6 days (21.150 Billion), October 15 - 2 weeks (20.1 Billion), October 17 - 15 days (30.650 Billion), October 22 - 2 weeks (35 Billion)

    Less than 2 weeks the Federal reserve has injected more than 100 Billion (not counting the overnight repos) and I didn't go back further to add more. In addition, they released a statement today that they are increasing the "term repos" (next one tomorrow, and then Oct 29th) to "at least $45 billion." So this number will be increasing. https://www.newyorkfed.org/markets/opolicy/operating_policy_191023

    This probably explains the recent uptick in the Federal Reserve Balance Sheet:

    https://www.federalreserve.gov/monetarypolicy/bst_recenttrends.htm

    This looks very similar to past QE based on the chart. Where do you draw the line? 1 day lending? 1 week? 1 month? 1 year?

    I am worried because according to the fed the overnight Repos are not just treasuries. It includes "Treasury, agency debt, or agency mortgage-backed securities (MBS)." https://www.newyorkfed.org/markets/domestic-market-operations/monetary-policy-implementation/repo-reverse-repo-agreements

    I would wager that the trading being attempted is not treasuries and either agency debt or MBS that banks are not willing to take on because of some risk involved and the low interest rate. And, of course we cannot trust the Federal Reserve they are not going to come out screaming about a problem and send the market into a panic.

    submitted by /u/JDTAS
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    Peer-to-peer lender FundingSecure enters administration. Second British P2P lender to collapse in six months. Losers: about 3,500 investors.

    Posted: 23 Oct 2019 08:02 AM PDT

    Can anyone explain bond index funds?

    Posted: 23 Oct 2019 05:27 PM PDT

    I think i get it but hoping someone can confirm.

    normally, if you buy a bond, at say 3% yeild, you will never "lose" money assuming its in treasury/govt safe stuff. you will earn 3% a year till maturity.

    meanwhile, bond index funds keep going up and down, im guessing its because if interest rates go up, the dollar is worth more hence the index drops because the bonds are (when compared to inflation/potential interest on your money) losing money? and in a real bond, you dont see inflation happen as visibly?

    submitted by /u/Slay3d
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    To retire at 65, millennials will need to save nearly half of their paycheck

    Posted: 24 Oct 2019 02:49 AM PDT

    Blackbird and Pipestone merger question

    Posted: 24 Oct 2019 02:12 AM PDT

    I owned 1200 shares of BBI Blackbird energy inc. Now after the merger, I have 120 shares of the new company (Pipestone energy) and 1200 shares of Stage Holdco Class A. What is that Stage Holdco and what do I do with it? Seems like it isn't listed anywhere

    submitted by /u/BozzzzzzMan
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    TSLA Profit

    Posted: 23 Oct 2019 05:27 PM PDT

    Tesla absolutely crushed it's financials today, but I have one question. If their cost to make their cars are greater than their selling price, how did they make a profit? Maybe I am missing something.

    submitted by /u/olympic_gem
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    How would US hyperinflation affect long term investments portfolios?

    Posted: 23 Oct 2019 04:14 PM PDT

    Say, the US dollar entered hyperinflation. What would this mean for our portfolios with stocks both within the US and other markets? Is there a way to guard our portfolios from it?

    submitted by /u/gourai117
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    Yahoo Finance premium

    Posted: 23 Oct 2019 10:04 PM PDT

    Have you guys used Yahoo Finance premium? It's supposed to tell you fair values of stocks... has anyone done any backtest on how good it is? The subscription is $34.99...

    submitted by /u/realn00b
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    Tesla shares soar after crushing third-quarter earnings

    Posted: 23 Oct 2019 02:26 PM PDT

    How do you find the percentage of a company's earnings that's being paid out?

    Posted: 23 Oct 2019 09:43 PM PDT

    I heard that even if a company has a strong dividend yield, you have to find out how much of their earnings are being paid out as dividends before you conclude that it's a good dividend stock.

    submitted by /u/focusrunner79
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    Which ETF to chose? US vs international?

    Posted: 23 Oct 2019 04:39 PM PDT

    I am 25 years old and I have about $43k that I am interested in investing. I am working with fidelity and an agent there recommended the AOA ETF. It looks to be a mix of the S&P500, international, mid&small cap, and bonds. I was also considering just buying ETFs myself that incorporate these categories but because I am new to investing I am worried I won't chose proper ratios. He told me that because we are in an economic slowdown and eventually a recession it is better to invest more in international right now than you would do otherwise. He also told me to go for the ETFs over index funds because they are more tax efficient.

    Is the AOA ETF a decent option? Or should I just invest in the individual ETFs myself? What is a good ratio of US stocks to international at this point in the economic cycle? I'm really new to this and still trying to learn. Thanks for any advice you can give me!

    submitted by /u/aspiringesl789
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    Tesla Delivers a Surprising Profit

    Posted: 23 Oct 2019 05:51 PM PDT

    https://www.wsj.com/articles/teslas-quarterly-profit-drops-54-11571866532?mod=hp_lead_pos2

    Updated Oct. 23, 2019 8:07 pm ET

    Tesla Inc. TSLA -0.35% posted a surprise profit for the third quarter, easing investor fears that the electric car maker's pursuit of growth and record production figures would come at the expense of the bottom line.

    The electric-car maker said Wednesday that it would continue to be profitable, but cautioned that new products could affect the company's margins.

    Tesla's shares climbed 20% in after-hours trading.

    The company said trial production of its compact Model 3 car has started at a new facility in China, and production on its new Model Y compact sport-utility vehicle is ahead of schedule, with a launch set for next summer. The China facility is another sign of Tesla's ambition to become a global force in car production.

    Tesla posted earnings of 78 cents a share for the three months ended Sept. 30, upending analysts' predictions for a loss of 46 cents a share. For the year-earlier quarter, the company reported earnings of $1.75 a share.

    A record delivery figure helped lift Tesla's bottom line, as customers largely flocked to the lower-price Model 3.

    But even as Tesla ramps up Model 3 production, sales of its premium cars have declined.

    Third-quarter revenue fell to $6.3 billion from $6.82 billion a year earlier, as deliveries of the Model S and Model X vehicles dropped 37%.

    Analysts polled by FactSet had predicted revenue of $6.43 billion.

    The company said it is on track to deliver more than 360,000 vehicles in 2019, the lower end of its targeted range of 360,000 to 400,000.

    Tesla has had back-to-back quarters of record vehicle deliveries this year after failing to meet estimates earlier in 2019. The company needs to deliver at least 104,800 vehicles in the three months through Dec. 31 to meet the lower end of the projected range.

    Tesla has made significant gains in its yearly production—a crucial part of Mr. Musk's strategy to become a mass-market auto maker. The lower end of the projected range compares with deliveries last year of almost 250,000 cars. Tesla will have to finish the year with another production record to meet its target of at least 360,000 deliveries this year.

    But even as Tesla gets closer to showing it can consistently produce large volumes of cars, it faces the prospect that market dynamics might be shifting as demand slows. Tesla faces the elimination next year of a federal tax credit to its customers, a change that analysts say could affect demand.

    What's more, industry experts fear overall demand for new vehicles might be about to slump after a prolonged growth period. Demand in China and Europe already is showing signs of weakness and the appetite for new vehicles in the U.S. could be in jeopardy, analysts have said.

    New vehicles often help generate sales interest among reluctant vehicle buyers. Tesla said it will produce limited volumes next year of an all-electric semi truck the company unveiled in 2017 and is starting to install equipment for the Model Y. The car maker also said it would soon announce the location of a new factory in Europe.

    Tesla, which initially rolled out the luxury Model S large sedan and Model X SUV, has shifted its focus to the Model 3. That smaller car accounted for about 82% of the 97,000 deliveries the company made in the third quarter.

    Tesla has said it wants the Model 3 to be a mass-market car and has priced the vehicles accordingly. They cost less than half the price of the premium models.

    The starting price of the Model 3, which Tesla has been working to bring down to $35,000 by shedding jobs and closing facilities, is currently listed at roughly $39,000 on the company's website, excluding projected savings from gasoline and tax credits.

    Despite price reductions, Tesla said its gross margins improved through cuts to manufacturing and material-related costs. Its operating expenses are at the lowest level since Model 3 production began, the company said.

    Sales of the Model 3 boosted Tesla's free cash flow, a metric considered important for the company's health because it supports operations and helps the company maintain its assets.

    Tesla recorded $371 million in cash flow for the third quarter, compared with $614 million for the three months ended June 30. The car maker's cash reserves totaled $5.3 billion

    The opening of Tesla's China facility comes as car sales in the country, the world's largest auto market, have slumped.

    A slowing Chinese economy has pinched sales for major car makers, including in the electric-vehicle market, where sales fell 11% in the third quarter.

    submitted by /u/beck2047
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    Capital gains question

    Posted: 23 Oct 2019 03:08 PM PDT

    Does capital gains tax take effect a year after the position within a stock has begun or is it determined by the individual shares purchased? For example, if I began a position in Apple one year ago but have added shares during that year will I have to pay income tax on the returns if I sell one year after starting my position?

    I hope this makes sense, and thanks in advance for any help!

    submitted by /u/DCgator44
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    Big Oil Hit Hard By Supreme Court Rejection

    Posted: 23 Oct 2019 01:08 PM PDT

    Accurate yield for ETF?

    Posted: 23 Oct 2019 07:52 PM PDT

    Why are there so many versions of an ETF's yield? Is there an accepted standard way to get the TTM or forward yield?

    Let's take VXUS as an example:

    www.etf.com/VXUS: 5.39%
    etfdb.com/etf/VXUS/: 2.98%
    seekingalpha.com/symbol/VXUS/dividends/scorecard: 2.98%
    www.morningstar.com/etfs/xnas/vxus/quote: 3.05%
    finance.yahoo.com/quote/VXUS: 3.05%
    www.google.com/search?q=vxus: 2.91%
    institutional.vanguard.com/web/c1/product-details/fund/3369: 3.19%

    I assume the etf.com one is an error, but even the others have a significant difference between them.

    submitted by /u/mattparlane
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