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    Friday, November 29, 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: 28 Nov 2019 04:09 AM PST

    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 recession indicator falls from 30% to 10% according to Morgan Stanley

    Posted: 28 Nov 2019 05:01 AM PST

    China Financial Warning Signs Are Flashing Almost Everywhere

    Posted: 28 Nov 2019 09:27 PM PST

    Trading too much of a Roth IRA; can it force a "re-characterization"?

    Posted: 28 Nov 2019 11:22 PM PST

    I ran across this article regarding Canadian tax free savings accounts (roughly their equivalent of an American Roth IRA), which basically says if you're trading too much (day trading) and/or aren't invested in anything other than an index fund, your TFSA could be characterized as taxable.

    Anyone know if there's something similar going on for Roth IRAs?

    submitted by /u/Ban2Delete
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    Are 2019/11/06 316$ SPY calls a good buy for 131$ ?

    Posted: 29 Nov 2019 02:29 AM PST

    Hedge funds control 35-45% of Osram shares in headache for suitor AMS: source

    Posted: 28 Nov 2019 10:31 PM PST

    MUNICH (Reuters) - Hedge funds control 35-45% of the shares of German lighting group Osram (OSRn.DE), posing a headache for Austrian suitor AMS (AMS.VI) as the investors may press for the $5 billion offer to be sweetened, a person close to the matter said on Thursday.

    FILE PHOTO: The logo of German lighting manufacturer Osram is illuminated at the company's headquarters in Munich, Germany, September 16, 2019. REUTERS/Andreas Gebert/File Photo

    An initial bid by AMS to create a global leader in sensors and lights stumbled last month when it fell short of the necessary shareholder backing. Since then AMS has lowered the acceptance threshold to 55% to try to get the deal over the line, while keeping the offer price at 41 euros a share.

    Osram Chief Executive Olaf Berlien told German daily Sueddeutsche Zeitung that some investors seem to have no intention of tendering their shares by the Dec. 5 deadline.

    "It appears that a number of hedge funds have acquired shares with the aim of selling them at a later date and at a higher price," he told the newspaper, which first reported the stakes held by hedge funds.

    German law allows for courts to determine that minority investors be compensated at a higher price for their shares when an acquirer and a target company strike a so-called domination agreement, which regularly prompts hedge funds to hold back shares aiming to benefit from a deferred sale.

    However, if too many speculative investors decide to hold back shares that can lead to deals falling apart, as seen in initial failed attempts for a leveraged buyout of generics firm Stada. That deal eventually went through in 2017 after the offer price was bumped up.

    AMS - which already controls 20% of Osram - said on Wednesday that 3.3% of Osram shares have been tendered so far.

    On Oct 31, hedge fund Sand Grove Capital Management disclosed a 5.75% Osram stake.

    Around 10% of Osram shares are held by exchange-traded funds, which according to German law, are not allowed to sell their stake as long as the takeover is not completed, banking sources have said.

    Retail investors, which often ignore tender offers, hold 20%-25%, the sources have said.

    submitted by /u/researchmind
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    Anyone here invested in a research chemicals company?��

    Posted: 28 Nov 2019 06:41 PM PST

    Legal drug analogues

    submitted by /u/lollipopfun
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    World stocks stall as U.S.-China tensions flare again

    Posted: 28 Nov 2019 05:03 AM PST

    https://www.reuters.com/article/global-markets/global-markets-world-stocks-stall-as-u-s-china-tensions-flare-again-idUSL8N28830G

    LONDON (Reuters) - A four-day rally that had lifted world stocks to near-record highs stalled on Thursday after China said it would retaliate for U.S. legislation backing Hong Kong's protesters, leaving investors concerned as to the extent of the Chinese response.

    Fading hopes of a rapprochement between the world's two biggest economies before additional, potentially damaging tariff hikes kick in has lowered risk appetite, pushing the benchmark German 10-year government yield to its lowest since Nov. 1 DE10YT=RR.

    The yen - a safe-haven currency - gained against the U.S. dollar, recovering from six-month lows JPY=EBS.

    submitted by /u/coolcomfort123
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    Looking for Thesis Ideas (Private Equity)

    Posted: 28 Nov 2019 01:05 PM PST

    I'm finishing my undergrad degree this year and need to write a 20-30 page thesis. I want to do something on Private Equity, but I'm open to work on any interesting topic. All ideas welcome :)

    submitted by /u/matpere
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    What are some macro data points actually worth paying attention to?

    Posted: 28 Nov 2019 10:34 AM PST

    As you all know already investing in 2019 is packed full of white noise, buy and hold, recession is coming, the Fed is messing up the market, yield curve inversions etc.

    So was wondering in this sea of information what are the key data points you guys listen to when actually trying to make sense of when & how to invest.

    It seems to me that in today's investment cycle central bank policy is the main driver of asset prices, in Q4 it was a the tightening of financial conditions that lead to a 20% drop, then the Fed started another rate cutting cycle which made 2019 one of the best years for global markets + a restart of QE in October 2019 and we haven't had a single down week since, a straight line up.

    submitted by /u/nothrowaway4me
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    StreetShares?

    Posted: 28 Nov 2019 11:34 PM PST

    Has anyone invested in StreetShares 5% bonds, or have insight into them? They seem to be growing over the years, but I can't tell if they're as "recession-proof" as they claim to be.

    submitted by /u/churnboi323
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    How does one calculate Value at Risk?

    Posted: 28 Nov 2019 10:25 PM PST

    I've been working on optimizing my portfolio's asset distribution and am wondering how complex some of the risk models are. Is it a Monte Carlo simulation with a correlation matrix of asset price movements generally accepted? What about companies with massive portfolios - is there a generally accepted closed-form solution to computing, say, 95% VaR?

    submitted by /u/Individual_Koala
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    Favorite ark etf?

    Posted: 28 Nov 2019 10:24 PM PST

    Very interested in buying into an ark etf, I like that its actively managed, to me it justifies the higher expense ratio. I was wondering what everyones preferred ark etf was: ARKK, ARKF, ARKQ, or ARKW?

    submitted by /u/RosarioCentral
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    I want an honest forex broker

    Posted: 29 Nov 2019 01:56 AM PST

    I want an honest forex broker company because I want to deposit money to invest cryptocurrencies

    submitted by /u/omernadhim
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    Switching from Vanguard to Schwab

    Posted: 28 Nov 2019 06:08 AM PST

    If my portfolio is made up of VTI what should I do when I switch over to Schwab? Should I keep buying VTI, switch to SCHB or make the leap over to mutual funds and start buying SWSTX? What are the pros and cons of those 3 options?

    submitted by /u/ONll_CHAN
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    Fundamental Analysis & Valuation Modeling Community?

    Posted: 28 Nov 2019 11:15 AM PST

    Does anybody know of a r/ or online community for fundamental analysis and/or valuation modeling?

    I'm trying to practice more and I think if I found something like this it would give me more of a reason/structure for practicing.

    Hoping at least one out of the 840k members will know of such a thing because I am struggling to find one. Thx.

    submitted by /u/TTURedRaiderz
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    Expense Ratios on Mutual Funds

    Posted: 28 Nov 2019 08:57 PM PST

    When you see a 0.70 or 0.65 expense ratio, how much is that really? To me that seems to be okay. It isn't that high. I know the arguement between ETFs and Mutual Funds, but my Mutual Funds seem to be doing actually very well. I see no need to liquidate it and move them into ETFs. Their expense ratios are all under 0.70. Basically, I want to know "when" the fund managers "take" my money by means of the expense ratio. When does that take place? Is that at the end of the year? I never see any statement that says that my money is being withdrawn to give to the fund manager. Thanks.

    submitted by /u/zertox3000
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    Fresh out of highschool, should I put some money into robo advisors?

    Posted: 28 Nov 2019 05:11 PM PST

    I have around 1.5k USD saved atm, but I have no expenses or debts. Additionally, my bank account gives but 0.25% yearly interest, which makes me consider investing it somewhere. Uni is being paid by parents (and just saving would get me like another 1k, so might as well as grow it)

    The main issue lies that I'm in the Dominican Republic, and most services rely on being in the United States. Are there any international robo advisors? Or is there something else I should follow—I 've already set aside an emergency fund too.

    submitted by /u/LeoTessa
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    what stocks/sectors usually tank in recessions?

    Posted: 28 Nov 2019 10:53 AM PST

    TD Ameritrade EFT commission?

    Posted: 28 Nov 2019 07:52 PM PST

    When I look at certain EFTs like SPY on the Ameritrade app it says commission free: NO . Does this mean they charge commission on these or was it just never changed from when they WERE charging commission?

    submitted by /u/AdAstraAmerica
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    Logistics of rollover from Voya to JPM

    Posted: 28 Nov 2019 04:01 PM PST

    Hi, this question is probably pretty basic but I've looked elsewhere online and couldn't find any useful info. I'm 19 years old and left my job I had in high school. I ended up racking up ~$1200 in my employers 401K and Roth 401K plan and at the same time saved some money I got for graduation in a chase youinvest Roth IRA. I opened a conventional IRA when I realized I was leaving this job. My employers plan was through voya and requesting a rollover through their website keeps resulting in an error message. can I have Chase request the rollover or do I have to do it directly ? Basically I'm just looking for the most simple steps to get this done. Thanks

    submitted by /u/OtherwiseIdeal
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    The Economist - Business this week 11/30/19 Edition

    Posted: 28 Nov 2019 07:41 PM PST

    Link for those not bothered by paywalls

    In the biggest-ever takeover in the luxury-goods industry, lvmh, a French global conglomerate, announced its acquisition of Tiffany, an American jeweller founded in 1837 and known for its flagship store on Fifth Avenue in New York. lvmh is paying $16.9bn, more than the roughly $14.5bn that was suggested when the transaction was first mooted in late October. The deal represents a success for Bernard Arnault, lvmh's boss and controlling shareholder, who had courted Tiffany for some time. See article.

    The magic trick

    The flotation of Alibaba's shares on the Hong Kong stockmarket raised $11.2bn, making it the most valuable share offering this year, ahead of the $8.1bn that Uber raked in at its ipo in May. The stock rose by 6.6% on the first day of trading in what is a secondary listing in Alibaba. Its shares are also listed in New York. See article.

    Uber lost its licence to operate in London, again. The ride-hailing company has 45,000 drivers in the city, one of its biggest markets. London's transport regulator raised more concerns about safety, including 14,000 fraudulent trips by unauthorised drivers. Uber is appealing against the decision and can continue to operate while it does so. See article.

    The chief executive of Westpac resigned and the chairman said he would step down next year, as Australia's second-largest bank faced mounting criticism about its response to a money-laundering scandal. A regulator has accused Westpac of failing to monitor more than 23m suspect transactions, some of which enabled child exploitation in the Philippines. The bank has found itself in politicians' cross-hairs. Australia's treasurer said it had been indifferent to the scandal; the attorney-general noted that it was an "unbelievably serious" matter. Westpac has reportedly cancelled its Christmas party.

    Charles Schwab, America's biggest discount broker, struck a $26bn deal to acquire td Ameritrade, a rival. The pair had recently been engaged in a price war, both ditching the transaction fees they charged customers. The combined group will have around $5trn in client assets. See article.

    The Brazilian real fell to a new low against the dollar, after Brazil's finance minister said he was "not worried" about a strong greenback. The slide prompted a brief intervention by the central bank to prop up the currency. The country's current-account deficit has risen sharply this year, and interest rates have tumbled.

    Google reportedly fired four employees who had been active in organising protests at the company and had apparently tried to gain access to private internal documents. The tech giant pioneered an office culture that mixes politics with work, which it may now regret. Vociferous staff have pressed management to drop an ai contract for the Pentagon and have walked out over sexual harassment and a search-engine project for the Chinese government. Their latest gripe is Google's work for immigration enforcement. Google has told employees to tone it down and reduced staff meetings to one a month.

    In an effort to boost profits and its feeble share price, Telefónica announced a plan to hive off its operations in Spanish-speaking Latin America and focus on its core markets in Spain, Brazil, Germany and Britain, where it brands itself as O2. The telecoms group also wants to expand its business in the internet of things and cloud computing.

    On the lookout for new superdrugs that will replenish its portfolio, Novartis offered to buy The Medicines Company for $9.7bn. tmc's crown jewel is inclisiran, a treatment that has been found to be highly effective in drug trials at reducing "bad" cholesterol, and which a patient needs to inject only twice a year. See article.

    America's Federal Aviation Administration said it alone would inspect the 737 max before it is returned to service, relieving Boeing of the exercise and signalling that it will sign off each jet individually. That could potentially extend the time frame that Boeing has in mind for resuming deliveries of the grounded aircraft to airlines.

    Tesla's share price struggled to recover from the drubbing it took after an unforeseen event at the launch of its new Cybertruck, which has been described as a cross between a futuristic car from "Blade Runner" and a SpongeBob SquarePants character. The vehicle's supposedly armoured-glass windows shattered when a steel ball was hurled at them during a demonstration. "Maybe that was a little too hard," said a startled Elon Musk, Tesla's boss.

    Sedol, going, gone

    Lee Sedol, a Go champion, who in 2016 lost a celebrated match against AlphaGo, an artificial-intelligence program, announced his retirement. ai programs now compete in tournaments. Mr Lee reflected: "Even if I become number one, there is an entity that cannot be defeated."

    submitted by /u/aaron4400
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    What's the opinion on battery manufacturers or raw battery material mining, such as $FCC? Is graphene going to be hot?

    Posted: 28 Nov 2019 07:18 PM PST

    Having a little fun with investing

    Posted: 28 Nov 2019 07:13 AM PST

    Back in 2018 I was participating in a paper trading game on a forum. It was OK but the rules of the contest (no options trading, 30 min delay on purchases) plus the fact it was paper made me lose interest fairly quickly.

    I discovered Robinhood and in June 2018 I decided to start my own contest using real money. I tried to get others interested, but they were skeptical of Robinhood. I then decided to just set a goal. Start off with $2,500 (I figured I needed at least $2000 to stay above min levels for buying power) and try to turn it into $250,000 in a ten year contest time frame. This sounds very difficult at first until you realize it is only a 60% return needed each year, compounded yearly.

    Fast forward to today and I am at $16,200. I have not YOLO'd any trades or used short term options. I have used LEAPs and have invested in some biotech, which is quite volatile. Hitting the $25,000 mark will be nice because it will open up the account past the 3 trade limit. I am not super happy with the volatility but I am happy with the gain. I usually try for only a couple hundred dollar gain per trade, taking advantage of the zero commissions and high volatility in biotech.

    I know this doesn't really fit in r/investing but it doesn't really qualify for r/wallstreetbets either. It is from someone who has 99% of their investments in index funds and just has a tiny gambling itch they want to scratch. I don't even have a plan for the $250,000 but it needs to be something worthy, like a trip to Antarctica or a ride on Virgin Galactic.

    https://imgur.com/a/94mIZBC

    submitted by /u/Yottahz
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    Why do people make their stocks available for being borrowed by someone who wants to short? What do they get?

    Posted: 28 Nov 2019 09:36 AM PST

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