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.
- The government should allow you to invest tax free until you reach a maximum like $2mil. Ira stipulations are BS.
- Netflix CEO Reed Hastings says subscriber numbers aren’t the right metric to track competition
- Why the prospective $70 billion buyout of Walgreens may signal the stock-market rally is about to end
- Square has fallen 40% since it 2018 peak. The company reported, yesterday after the bell, Q3 sales growth of 43% and a 42% increase in gross profits
- Chesapeake Energy, once a Major Fortune 500 Energy Giant, Trades as Penny Stock After Going Concern Statement.
- Has China's relentless housing boom finally peaked? Tier 1 cities starting to show a decline in prices and people are furious.
- How to invest in an inflated world? - Thoughts
- for folks holding gold out there, pay attention to the 30 year treasury yield
- China Says It Agreed With U.S. to Roll Back Tariffs in Phases
- 401(k) contribution limit increases to $19,500 for 2020; catch-up limit rises to $6,500
- Roku shares fall as company reports Q3 earnings
- Ray Dalio Wrote a new Post: "The World Has Gone Mad and the System Is Broken"
- National Bureau of Economic Research: Misclassification of Bond Mutual Funds
- What's a decent broker for Europeans looking to invest in US ETFs?
- Square beats on Revenue & EPS
- I think I'm starting to really get the hang of this
- Parcelpal PKG sees 50% increase since record revenue day last week.
- No credit, cant open brokerage account?
- [QUESTION] I just submitted a purchase of $200 worth of 4-week Bills on TREASURY DIRECT. It says it’s an auction so I’m confused how this is supposed to go down... Could someone familiar with the process help me out please
- Strange activity with dividend reinvesting
- Selling ETFs to buy individual stocks - Tax question
- Uber down -4%, Lyft up +4% . Is Lyft overtaking Uber a possibility?
- Carvana EPS misses by $0.17, beats on revenue, share price tanks after hours
- Government Bonds are a no-brainer?
| Daily Advice Thread - All basic help or advice questions must be posted here. Posted: 07 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:
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]  | ||||||||||||||||||||||||||||||||||||
| Posted: 06 Nov 2019 12:02 PM PST This is probably too political, but I think this is the only subreddit with people who actually care about their money...Stipulations on IRAs are BS and a good sign that they don't want you to save money...They should encourage investing by allowing people to invest tax free until you make a certain amount that allows you retire comfortably. I'd say $2m is good enough....What do you guys think? [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| Netflix CEO Reed Hastings says subscriber numbers aren’t the right metric to track competition Posted: 06 Nov 2019 05:08 PM PST Netflix CEO Reed Hastings said Wednesday that subscriber totals aren't the best way of measuring who is winning "The Streaming Wars" Hastings said total viewing time was a better way of understanding which services customers preferred. Hastings predicted most consumers would subscribe to "a couple" of streaming services, similar to how they buy several news publications. [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| Posted: 07 Nov 2019 01:41 AM PST | ||||||||||||||||||||||||||||||||||||
| Posted: 06 Nov 2019 10:32 PM PST Square's stock dropped in August after guidance for adjusted revenue fell short of analyst expectations of $599 million. Yesterday's print show adjusted revenue of $602 million. Investors should bear in mind that Square continues to grow revenue at an impressive rate in a total addressable market that Square estimates (in the US alone) at almost 30x current GPV/revenues. Additionally Square has yet to enter markets abroad. There are over 125 million businesses around the world that can potentially use Square's services, so the company's growth has the potential to accelerate once it targets international expansion. The current valuation of $26 billion looks very reasonable at 6.5x sales. This is not a recommendation to buy or sell. Stocks are risky and not suitable for everybody. Please do your own research. https://www.fool.com/investing/2019/10/10/down-28-in-past-year-is-now-time-to-buy-square.aspx [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| Posted: 06 Nov 2019 12:49 PM PST | ||||||||||||||||||||||||||||||||||||
| Posted: 06 Nov 2019 10:15 AM PST TL;DR: Bad debt coupled with an economic slowdown is starting to crack China's relentless housing boom. I was prompted by this article yesterday in The Wall Street Journal A lot of this post is going to be plagiarized from /u/cbus20122 who did the real DD on China's insane private debt load, but I wanted to add a little bit to it and also get some discussion started. For those unfamiliar I thought I'd lay this out starting with how the current housing market came to be and layout the events that appear to be leading to some potential issues for China's housing market. Want to be treated as an adult? You need a house Rapid urbanization through relocation of farmers and other rural Chinese combined with incredible social pressure to purchase a home has fed the incredible real estate boom China has experience over the past several years. Speculative investing leads to empty houses and poor construction Additionally due to monetary controls by the Chinese government and the housing boom real estate has been by far the best and biggest investment for Chinese. This has led to explosive construction and also The highest vacancy rate in the world at 22% as people by second, third and fourth homes in speculation. Additionally this rapid growth decreased the already lax oversight on construction quality and materials leading to dangerous shortcuts and an unknown number of buildings being constructed using sea sand concrete, which could cause buildings to collapse in a few decades "Prices only go up, so insane prices are okay" Because of the social pressure to buy a house and a belief that the longer you wait, the more you'll pay has led to many Chinese to pay prices that would be inconceivable anywhere else in the world (relative to their income). Many Chinese are spending over half of their gross income on mortgage payments and scraping together downpayments from friends, family and online financing. Housing in the largest Chinese cities has reached 23x price to income ratio or over twice as high compared to cities like NYC and Tokyo. Private debt levels have reached scary proportions This is where I'll leave it to /u/cbus20122 and their detailed explanation on Chinese debt. The TL;DR version however is China is reporting that total credit to the non-financial sector is 32.58 trillion dollars (USD) but there is also 37.78 trillion USD of credit in "shadow banking" (I'm assuming these are the private loans) for a grand total of 70.35 trillion in debt. Given their reported (likely inflated) GDP of 12.238 trillion this gives a debt to GDP ratio of 574%. /u/cbus20122 suspects that this is a conservative estimate though and the real number is closer to 800%. it is also pointed out that this debt bubble is multiple times larger than anything seen in history including the great depression (230% debt to GDP ratio). Bad debt, and defaults are becoming a problem Almost 5% of all lending in China is in default, and bad debt has climbed 10% over the past 6 months. China has had to nationalize several smaller banks due to no other banks wanting to buy the bad debt. The Chinese government is urging major banks to dispose of bad debt, "Yet bad debt continues to rise as loans go sour faster than banks can dispose of them. Defaults on corporate debt topped 80 billion yuan by late August, on track to beat the full-year record of more than 120 billion yuan set just last year." While China is trying to get rid of bad debt, they are also trying to fight a slowing economy and have cut the required reserve ratios in order to free up money for additional loans Turns out, housing can go down ...and people's reaction shows utter disbelief. Just this week the WSJ reported that housing prices in Beijing, Shanghai, Tianjin, and Guangzhou have all been dropping month-over-moth for the past three months. some people suddenly have found themselves underwater on houses that haven't been constructed and they are outraged (in China houses are typically sold during the planning phase). Outside pressure is increasing Between Hong Kong, the trade war, and a slowing global economy China is feeling a lot of pressure. That said China is unlike any other market and they have been able to maintain this far longer than most have speculated so it is impossible to say if this is the beginning of a larger bubble burst or if it is just a minor speed bump. The main questions that come to my mind now are if prices continue to drop and more people find themselves underwater how will the public react? Will speculative investors that own the 50 million vacant apartments try to get out at the top and bring it all down? Will the Chinese government step in? *edit: added some extra info at the top and more of an explanation about my format [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| How to invest in an inflated world? - Thoughts Posted: 06 Nov 2019 10:48 PM PST Came across the recent Ray Dalio post discussing his views of the global economy. I felt that a lot of his thoughts were absolutely spot on. I have some experience "investing" and usually don't put money towards any form of equity that I don't a) feel like I'm getting for a really good price for & b) feel like I have a really solid grasp of what I'm investing in. I don't feel like I have an edge in investing in the stock market so I generally stay away from it. I have found good success finding real estate deals - condos, multi-units, land, etc. in distressed situations that were purchased at a discount and cash flowed with a big enough margin to where I felt comfortable in "bad" conditions that I could service the debt. However, I am finding that low interest rates have caused a melting up of real estate asset prices. It's getting harder and harder to find good deals. My question to the reddit community is how do you guys invest in climates where asset prices are generally high - not just in real estate but also stock market, bond market etc. Where have you found success and what are some suggestions you might have to new investors in weathering these sorts of climates? [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| for folks holding gold out there, pay attention to the 30 year treasury yield Posted: 07 Nov 2019 03:44 AM PST I've been looking at some charts of gold and the 30 year treasury yield. If the 30 year treasury yield continues its rise up, that is really bad for gold. I've looked at the gold tops in 2016 and early 2018. Both had a rising 30 year treasury yield that really got gold to be bearish. For the folks who want a good investment option on pullbacks, look at oil with the USO etf. I wouldn't buy right now. Look for pullbacks in the coming days or weeks. [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| China Says It Agreed With U.S. to Roll Back Tariffs in Phases Posted: 06 Nov 2019 11:44 PM PST | ||||||||||||||||||||||||||||||||||||
| 401(k) contribution limit increases to $19,500 for 2020; catch-up limit rises to $6,500 Posted: 06 Nov 2019 08:42 AM PST IR-2019-179, November 6, 2019 WASHINGTON — The Internal Revenue Service today announced that employees in 401(k) plans will be able to contribute up to $19,500 next year. The IRS announced this and other changes in Notice 2019-59 (PDF), posted today on IRS.gov. This guidance provides cost‑of‑living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2020. Highlights of changes for 2020 The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government's Thrift Savings Plan is increased from $19,000 to $19,500. The catch-up contribution limit for employees aged 50 and over who participate in these plans is increased from $6,000 to $6,500. The limitation regarding SIMPLE retirement accounts for 2020 is increased to $13,500, up from $13,000 for 2019. The income ranges for determining eligibility to make deductible contributions to traditional Individual Retirement Arrangements (IRAs), to contribute to Roth IRAs and to claim the Saver's Credit all increased for 2020. Taxpayers can deduct contributions to a traditional IRA if they meet certain conditions. If during the year either the taxpayer or his or her spouse was covered by a retirement plan at work, the deduction may be reduced, or phased out, until it is eliminated, depending on filing status and income. (If neither the taxpayer nor his or her spouse is covered by a retirement plan at work, the phase-outs of the deduction do not apply.) Here are the phase-out ranges for 2020: For single taxpayers covered by a workplace retirement plan, the phase-out range is $65,000 to $75,000, up from $64,000 to $74,000. For married couples filing jointly, where the spouse making the IRA contribution is covered by a workplace retirement plan, the phase-out range is $104,000 to $124,000, up from $103,000 to $123,000. For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the deduction is phased out if the couple's income is between $196,000 and $206,000, up from $193,000 and $203,000. For a married individual filing a separate return who is covered by a workplace retirement plan, the phase-out range is not subject to an annual cost-of-living adjustment and remains $0 to $10,000. The income phase-out range for taxpayers making contributions to a Roth IRA is $124,000 to $139,000 for singles and heads of household, up from $122,000 to $137,000. For married couples filing jointly, the income phase-out range is $196,000 to $206,000, up from $193,000 to $203,000. The phase-out range for a married individual filing a separate return who makes contributions to a Roth IRA is not subject to an annual cost-of-living adjustment and remains $0 to $10,000. The income limit for the Saver's Credit (also known as the Retirement Savings Contributions Credit) for low- and moderate-income workers is $65,000 for married couples filing jointly, up from $64,000; $48,750 for heads of household, up from $48,000; and $32,500 for singles and married individuals filing separately, up from $32,000. Key limit remains unchanged The limit on annual contributions to an IRA remains unchanged at $6,000. The additional catch-up contribution limit for individuals aged 50 and over is not subject to an annual cost-of-living adjustment and remains $1,000. Details on these and other retirement-related cost-of-living adjustments for 2020 are in Notice 2019-59 (PDF), available on IRS.gov. [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| Roku shares fall as company reports Q3 earnings Posted: 06 Nov 2019 01:27 PM PST https://www.cnbc.com/2019/11/06/roku-roku-earnings-q3-2019.html Adjusted loss per share: 22 cents Revenue: $261 million vs $256.9 million, according to Refinitiv consensus estimates [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| Ray Dalio Wrote a new Post: "The World Has Gone Mad and the System Is Broken" Posted: 06 Nov 2019 06:36 AM PST https://www.linkedin.com/pulse/world-has-gone-mad-system-broken-ray-dalio/ Discuss here. Worth a read regardless of your stance on this. [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| National Bureau of Economic Research: Misclassification of Bond Mutual Funds Posted: 06 Nov 2019 06:59 PM PST Anyone have access to the full report? Below is the summary --> https://www.nber.org/papers/w26423 Don't Take Their Word For It: The Misclassification of Bond Mutual Funds We provide evidence that mutual fund managers misclassify their holdings, and that these misclassifications have a real and significant impact on investor capital flows. In particular, we provide the first systematic study of bond funds' reported asset profiles to Morningstar against their actual portfolios. Many funds report more investment grade assets than are actually held in their portfolios, making these funds appear significantly less risky. This results in pervasive misclassifications across the universe of US fixed income mutual funds by Morningstar, who relies on these reported holdings. The problem is widespread- resulting in about 30% of funds being misclassified with safer profiles, when compared against their actual, publicly reported holdings. "Misclassified funds" – i.e., those that hold risky bonds, but claim to hold safer bonds– outperform the actual low-risk funds in their peer groups. "Misclassified funds" therefore receive higher Morningstar Ratings (significantly more Morningstar Stars) and higher investor flows due to this perceived outperformance. However, when we correctly classify them based on their actual risk, these funds are mediocre performers. Misreporting is stronger following several quarters of large negative returns, and it is strong at the fund family level. We report those families that have the highest percentage of misreported funds in the sample. [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| What's a decent broker for Europeans looking to invest in US ETFs? Posted: 07 Nov 2019 01:59 AM PST I've been going through what seems like all the brokers on the planet but they all either don't allow EU customers, don't offer US ETFs or have insanely high fees. I don't need anything educational or any research tools, I just need something simple and cheap like Robinhood. Anyone got any tips? [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| Posted: 06 Nov 2019 01:37 PM PST Square (NYSE:SQ): Q3 Non-GAAP EPS of $0.25 beats by $0.05; GAAP EPS of $0.06 beats by $0.06. Revenue of $602.22M (+39.7% Y/Y) beats by $5.37M. [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| I think I'm starting to really get the hang of this Posted: 06 Nov 2019 05:53 PM PST It's not too hard to be having a strong year, but I'm pleased to be outpacing the S&P (and other indices) by a reasonable margin. How are others doing this year? For reference, this is an all stock account, but I'm interested to hear about other types of portfolios as well. EDIT: Some of my holdings -> https://imgur.com/D5SWB9W [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| Parcelpal PKG sees 50% increase since record revenue day last week. Posted: 06 Nov 2019 07:57 PM PST Parcelpal PKG since they hit a record revenue day last week they've realized almost 50% increase, they hold no debt and are currently expanding in Toronto, Washington and Seattle. With their biggest quarter ever coming up I think it's worth a look. https://finance.yahoo.com/news/parcelpal-announces-record-revenue-day-113000578.html?.tsrc=applewf [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| No credit, cant open brokerage account? Posted: 06 Nov 2019 07:50 PM PST Do i need credit to open a brokerage account in the US? I was told by Robinhood that i did. [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| Posted: 06 Nov 2019 02:40 PM PST I just want to make sure I didn't do anything wrong... [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| Strange activity with dividend reinvesting Posted: 06 Nov 2019 07:05 PM PST I currently own 11.5 shares of VCR, Vanguard Consumer Discretionary. It's dividend yield is 1.1% and pays quarterly. I see some strange activity when looking at my "Lot Details", reviewing the prices it bought using dividend reinvesting. The prices are all over the place and it buys twice in 2 days rather than once. I would like to draw your attention to the ones with **. The price paid is no where close to the actual stock price, even taking into account fluctuations within the day, there is no way it is jumping up or down that much. I didn't put it on this chart, but I also looked at the day high/low and these are not timing. What is this, why is it so off, and why is it paying dividends twice? Does it have to do with the volume and should I turn dividend reinvest off for my lower volume stocks?
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| Selling ETFs to buy individual stocks - Tax question Posted: 06 Nov 2019 06:48 PM PST I am selling part of my ETFs to buy individual stocks in a taxable account. Am I going to be taxed on capital gains since I made some profit from the ETFs? Also is what I am doing a bad idea? I am buying blue chips companies (solid companies). P.S: I sold a few shares I have in SCHB to buy MSFT and few other stocks. [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| Uber down -4%, Lyft up +4% . Is Lyft overtaking Uber a possibility? Posted: 06 Nov 2019 08:33 PM PST $UBER seems to be suffering from significant downwards pressure. It was down -15% yesterday, and today went down another -4%. $LYFT however seems to be bottoming around $43 and went up +4% today. Is Lyft overtaking or doing better than Uber a good possibility? I feel like people have lower expectations of Lyft so it's easier for them to beat estimates; also Lyft management seems more mature; they also have significant investment from Google (so at worst they will be acquired). What would have to go right for Lyft to overtake Uber? [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| Carvana EPS misses by $0.17, beats on revenue, share price tanks after hours Posted: 06 Nov 2019 02:25 PM PST
https://seekingalpha.com/news/3515684-carvana-eps-misses-0_17-beats-revenue [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| Government Bonds are a no-brainer? Posted: 06 Nov 2019 11:14 PM PST I'm largely invested in some risky assets. With my remaining capital I would ideally like to grow it above inflation but not much else, preserving purchasing power would be fine. Looking at the fact that the fed and most western countries (I'm from the U.K.) are likely to use whatever financial tools they have to prevent a recession, interest rates being further cut in the next few years seems infinitely more likely than rises. Thus, would 10+ bonds in US/U.K. not be an effective hedge with potential gains, as per Q1-3 this year? [link] [comments]  |
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