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    Monday, December 2, 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: 01 Dec 2019 04:13 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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    Robinhood makes a statement in wallstreetbets, gets banned

    Posted: 02 Dec 2019 01:51 AM PST

    US exported 89,000 more barrels of crude oil and refined petroleum products a day than it imported in September = 1st full month of a positive oil trade balance since the 1940s. Ten years ago imports exceeded exports by 12m barrels a day a decade ago.

    Posted: 01 Dec 2019 09:32 AM PST

    ‘Infinite money glitch’ found second time on Robin Hood

    Posted: 02 Dec 2019 02:55 AM PST

    America's stock market is shrinking. NYSE has a plan for that

    Posted: 01 Dec 2019 05:49 AM PST

    https://www.cnn.com/2019/11/29/investing/nyse-direct-listings-spotify-slack/index.html

    New York(CNN Business) America's stock market is shrinking. The number of public companies has been cut roughly in half over the past two decades, mostly by choice.

    Some don't want to deal with the pressure and reporting requirements. Others are avoiding the hassle and expense of an IPO. And a lucky few just don't need the money.

    Now, the New York Stock Exchange is trying to lure more companies back to the public market, even if it involves taking a less traveled route.

    submitted by /u/coolcomfort123
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    Is Joe Kernan the most irritating and misinformed anchor on CNBC?

    Posted: 01 Dec 2019 12:36 PM PST

    I stopped watching CNBC because of this guy. He interrupts people who are far smarter and successful than him, talks a lot and says nothing of substance. Watch him interrupt Warren Buffett in this interview (skip to 10:00) about not tweeting before going on the show:

    https://www.youtube.com/watch?v=Qm0jktMIYlk

    Is he trying to be funny? he needs to shut up a little bit in my opinion. What do you guys think?

    submitted by /u/SFWorkRedditaccount
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    Investing in clean energy

    Posted: 01 Dec 2019 07:52 PM PST

    Im 22 and looking to invest in ETF's that are focused on clean energy. I think this is a good investment because the world obviously has to make the switch at some point. If I am focused on buying and holding for the long term what ETF's do people recommend? So far I am looking at ICLN, PBW, and QCLN. Any input would be greatly appreciated. Thanks!

    submitted by /u/ProudResident
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    How is trying to beat the market by timing it any more difficult than try to beat the market by choosing individual stocks?

    Posted: 01 Dec 2019 03:00 PM PST

    My understanding is that the "easiest" way for a layperson to make money investing is to invest money long term in broad market index funds. To improve returns beyond that, an investor needs to either try to anticipate market movements (i.e., time the market) or invest in a narrower range of investments (e.g., individual stocks rather than broad mutual funds). Generally, this sub seems to more strongly warn investors against trying to time the market than trying to pick individual stocks. Why is that? Is there something fundamentally more difficult about timing the market?

    submitted by /u/RosmarysBabyBjorn
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    What does Tesla produce or will produce apart from cars?

    Posted: 01 Dec 2019 10:48 PM PST

    Specialty REITs: Datacenter, Indoor Farming, Cloud Kitchens, Cold Storage

    Posted: 01 Dec 2019 02:39 PM PST

    I've recently learned a bit about REITs and am looking to diversify my portfolio with some exposure to them. The theses I'm excited about (or specialties I think profitability and growth with being strong) are Datacenters, Indoor Farming, Cloud Kitchens (e.g. United Kitchens or Cloud Storage Solutions), and Cold Storage.

    Any recommendations in this space? Are there any specialty REITs that focus on this sort of thing?

    EDIT: See Findings Below

    Datacenter REITs: Equinix, CyrusOne, Digital Realty

    Cold Storage: Americold (COLD)

    Indoor/Vertical Farming: N/A

    Cloud Kitchens: N/A

    submitted by /u/ILoveCrime
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    What are your steps involved in picking a stock to invest in?

    Posted: 02 Dec 2019 01:26 AM PST

    Forgive me I know this question has been asked before, but there are some specific questions I would like to ask. I understand looking at the fundamentals and technical analysis. But first and foremost, how do you find a stock to look at? Do you look at the largest cap companies? Do you use a screener? Do you look stocks reported in the news?

    I also hear people say that they'll watch the company for a few months before deciding to invest in it. But wouldn't the opportunity be gone to invest in it? How would watching the company for a few months help you decide whether it is a beneficial investment?

    submitted by /u/VanHouzen
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    Do you see the s&p 500 going down if the USA/China deal doesn't go through?

    Posted: 01 Dec 2019 10:13 PM PST

    About to invest in IPO

    Posted: 02 Dec 2019 03:43 AM PST

    I am about to invest in a company that is going to IPO this week. I live and work in the UK and the asset management firm that will get the shares for me is in the US (and the company I will get the shares from is also in the US). Am I meant to pay any taxes either in UK or US for this? Thanks for any information!

    submitted by /u/kikii89
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    Can you help explain eToro's "You may lose more than your initial investment" disclaimer?

    Posted: 01 Dec 2019 07:42 PM PST

    Hey everyone, new to stocks and eToro but while signing up I saw this disclaimer "You may lose more than your initial investment" on eToro's website. Now I understand the risks of margin trading, and how if you're X10 you can get liquidated if the market moves just 10% on you, but how can you lose more than your initial investment even if your margin trading? I just want to be safe and make sure only the initial amount I invest can be lost and nothing more. Thanks so much!

    submitted by /u/fackyuu
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    Are bonds still a safe hedge?

    Posted: 01 Dec 2019 07:03 AM PST

    I have been doing a ton of reading trying to better understand many aspects of investing, even though I still have the bulk of my savings (taxable and exempt) in just a few ETF's and funds through Vanguard.

    As I work on allocations I am curious if bonds still play the role of the "hedge" as they used to. If I understand things correctly, bond values rise as the yield drops. With such low yields now, is there anyplace for yields to go that would cause a significant uptick in bond prices? It seems like what helped bonds in the 2008 market was the lowering of yields, which pushed the bond prices higher.

    Is it better to split the bond portion of my investment into half bond/half VDC (Consumer Staples), which also seems to handle price drops better than the overall market? Or even a few dividend champion individual stocks like XOM and MO, etc...?

    There's also a great chance I am not thinking about this on a deep enough level.

    Any help and thoughts would be appreciated!

    submitted by /u/Kareem-Mahpants
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    Tactical Asset Allocation/TAA: how you measure monthly momentum matters -- a lot. (Code provided for the programming inclined.)

    Posted: 01 Dec 2019 11:56 AM PST

    Post with code

    There's an interesting insight in this post that deals with tactical asset allocation strategies (EG Antonacci's Dual Momentum, ReSolve's Adaptive Asset Allocation)--namely in how one measures momentum. Long story short, there's a pretty substantial difference between using a formal monthly measurement, first to last day, and letting month lengths vary, and using a static 21-trading-days-per-month approximation. The former outperforms by a non-negligible amount.

    submitted by /u/IlyaKipnis
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    Should I switch from Robinhood to Charles Schwab

    Posted: 01 Dec 2019 09:38 AM PST

    I have been using Robinhood for 2 years now. I don't plan on engaging in weird options like calls and puts and all the complex forms of investing. I'm just your basic buy and sell investor. My only gripe is that sometimes my buy and sell orders are a few cents off from when I placed them. Not a big deal. Im playing with around $1000 anyway.

    However, I see a LOT of hate towards Robinhood. Apparently the customer service is really bad, which does worry me if I choose to continue using them in the long term. Still, I really like the charts, the simplicity, and the platform as a whole. I also really like the new lists they provide, such as all the stocks in the video game category, tech category, food categories, and so on.

    I heard Charles Schwab now has free transactions though. I don't really know anything about it, aside from the fact that it's considered the best platform to invest on nowadays. Is it worth changing platforms? I really don't want to transfer all my money if it's not beneficial to me. But maybe there's some advantages to Charles Schwab that would make me stupid to not change brokers immediately. Let me know your guys' thoughts.

    submitted by /u/focusrunner79
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    Notable insider buying at five firms during November (Matinas BioPharma, Assured Guaranty, Nesco Holdings, Comscore and Zovio)

    Posted: 01 Dec 2019 10:35 PM PST

    In November, both the CFO and Vice Chairman at Matinas BioPharma made $100,000+ purchases of stock. Matinas is an interesting company that has a prescription-only omega-3 fatty acid-based composition (similar to Vascepa) under development for reducing triglycerides (named MAT9001). Importantly it has shown superiority versus Amarin's Vascepa for the same indications..

    Amarin's stock has risen 10x over the past year as it has successfully progressed towards approval for Vascepa. Most recently an FDA expert panel unanimously to recommend Amarin's Vascepa for reducing the risk of cardiovascular events including heart attack and stroke.

    However back in 2015, Matinas was conducting a phase I trial of its own omega 3 drug MAT9001, comparing it directly with Vascepa. It found that MAT9001 was much more effective than Vascepa at reducing triglycerides and VLDL-C. MAT9001 saw a 33.2% reduction from baseline versus 10.5% for Vascepa, and VLDL-C reduction was at 32.5% versus 8.1% for Vascepa. Despite that trial's success, Matinas put MAT9001 on the backburner while it used its resources to develop its lead antifungal candidate.

    The company has since revived MAT9001 with a 100-patient Phase II crossover head-to-head trial against Vascepa on patients with high triglycerides that will begin dosing next quarter, with results expected by the end of 2020.

    There is no guarantee that it will succeed and even if it does the approval process will probably take a while. However the results so far are encouraging and the insider purchases send a clear signal that senior management is confident in success.

    The stock price has increased almost 100% but, with a market valuation of just $200 million compared to $7.63 billion for Amarin, there could be a lot more upside for investors who join the CFO and Vice Chairman.

    More insider buying at Assured Guaranty Ltd on November 25th & 26th as Chief Investment Officer, Andrew Feldstein, purchase another $1.9 million of stock. That brings the total number of purchases over the past month to 10.

    The company is a monoline guarantor that insures municipal and structured debt issuance. It ran into trouble during the great recession but has staged something of a recovery and Mr Feldstein seems to be highly confident in its future.

    Two points of interest that caught my eye;

    1. The company estimates it's non GAAP adjusted book value at $90.18 compared to Fridays close at $49.65 (GAAP valuation of $68.94 also compares well)

    2. The company CEO said on the Q2 earnings call that he believed the firm had $3.2 billion of excess capital beyond what was required to maintain its AAA rating. A meaningful amount for a company with a market capitalization of $4.7 billion.

    On November 20th, Chief Executive Officer Lee Jacobson purchased $352,154 worth of Nesco Holdings, picking up the stock after a drop of almost 70% this year.

    Nesco is one of the largest specialty equipment rental providers to the electric utility transmission and distribution, telecom and rail industries in North America. It reported mixed Q3 results a couple of weeks ago with revenues down 2.6% and a loss of $18 million but the company generated solid revenue growth in both the equipment rental (up 7.3%) and parts, tools, and accessories businesses (up 51.2%), as well as the 13th consecutive quarter of growth in adjusted EBITDA (up 7.5%).

    At the time Lee Jacobson, CEO of Nesco, remarked "We continue to see considerable opportunities for organic growth, supported by growing customer backlogs within our core electric utility markets, increased market penetration of the rail and telecom markets and further penetration of the parts tools and accessories offering across our existing equipment rental customer base. Shortages for specialty rental equipment in the markets we serve have continued and our customer rental contract periods have lengthened to record levels, further supporting our planned investment in fleet growth."

    That looks like a good outlook from Mr Jacobson and, having almost doubled his shareholding, he has backed that up with his own cash. The stock has dropped a further 10% and, trading on 0.6x revenues, other investors may want to have a look too.

    Comscore's new CEO, Bill Livek, snapped up $1 million of stock on November 12th (along with a few other insider purchases) following Q3 results. That should only enhance the strong incentives already in place for him to deliver a sale of the company at an advantageous value for investors. Livek, a 30-year veteran of the media and data measurement market, will receive a $1 million cash bonus from a sale. However, he will get an additional cash bonus (based on a percentage of the gross transaction if the sale yields $500 million or more in proceeds). That's a 75% premium to Friday's closing market capitalization of $286 million.

    There was insider buying at Zovio on November 5th, by Chief Executive Officer Andrew S. Clark who purchased 150,000 shares for a cost of $2.58 each, for a total investment of $386,505. Zovio has fallen back to $2.30 since then but is up 44% since reporting Q3 results on October 31.

    On that call the education technology services company (and owner of online Ashford University) outlined a restructuring plan to drive cost savings totalling $51 million in 2020 and drive the company back to profitability with guidance for adjusted EPS of $0.50 to$0.90. If successful the current stock price of $2.02 would be a bargain. The CEO's purchase is an encouraging endorsement.

    "FOLLOW" me if you would like to see my regular updates during the week.

    This is not a recommendation to buy or sell. Stocks are risky and not suitable for everybody. Please do your own research.

    submitted by /u/InterestingNews1
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    My ABC (Google) shares are down 32%

    Posted: 02 Dec 2019 01:11 AM PST

    I looked at my portfolio and it's showing a loss of 32% in my Google stocks since last week. I asked the broker (212) why this was and he said:

    I would like to inform you that your account currency is GBP, but the instrument you trade with is traded in USD, therefore the devaluation of the USD compared to the GBP resulted in a change which has affected the result of your position. The price of the opening of your position was 1205.54 and was opened on 09.09.2019. The GBP/USD ratio at that time was 1.23601. The current GBP/USD ratio is a bit more than 1.29190. Basically, the current GBP/USD ratio is higher than the one when the position was placed which is why your result is slightly negative even though the current price of Alphabet Inc. Class A is lower than the price of opening. I hope that clarifies the matter for you!

    I said I didn't understand and he said

    I completely understand you, however, the spread has widened dramatically due to the drastic drop in the liquidity in the context of the early close on Friday.

    Please could someone explain in noob terms how I lost 32% over the weekend. I don't understand. Thanks.

    submitted by /u/GodIsAPizza
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    Opinions on CLOs?

    Posted: 02 Dec 2019 12:44 AM PST

    Obviously slightly different to CDOs and are meant to be more secure, but was wondering whether anyone has much knowledge or experience in investing in these structured products and if they are as safe as they are marketed to be?

    submitted by /u/red_r0b0
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    Investment Grade Corporate Bond Sector Ideas

    Posted: 01 Dec 2019 02:04 PM PST

    I'm currently designing my first portfolio and I was wondering on what business sectors in the investment grade corporate bond market are likely to hold up in a crisis, whilst still generating a decent overall returns in a normal climate?

    Am currently looking at tobacco and utilities, but such bonds usually have very low GRYs.

    submitted by /u/red_r0b0
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    Looking for investment mentor

    Posted: 01 Dec 2019 01:58 PM PST

    I'm very new to investing but I would like to start having my money make money while I'm not making much. If anyone is willing to help/become investment friends I would appreciate it.

    submitted by /u/Throwmeawayplznthx
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    Export from scanner (using Finviz currently)

    Posted: 01 Dec 2019 03:04 PM PST

    I swing trade pullbacks. I use a scanner to identify stocks that are in an uptrend and are near support/resistance levels. I have been using finviz, but came to understand that my scans that I run weekly are really redundant. I am returning a lot of stocks that are already on my watch list or that I have already set alarms for when they near S/R. I would like to add efficiency to this process so I am not scanning stocks that I have already set alarms for. My thought was to export the list of stocks from week to week and compare any new stocks that showed up. Finviz does not allow you to export without paying for elite which I am not going to do. I pay for the cheapest TradingView plan, but I am not sure their scanner works well.

    In essence, I am trying to reduce the amount of time and effort I spend when scanning stocks from week to week. I would like to minimize the time I spend looking at charts that I already have alarms set for or are already on my watch list. Any ideas or guidance are very much appreciated!

    submitted by /u/allbusi
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    Why is Tesla Stock considered Bearish?

    Posted: 01 Dec 2019 07:18 PM PST

    I feel like Tesla is in a good place right now, but couldn't help but notice on Fidelity that this stock it is considered Bearish and that it is recommended as a sell. I can see why. It's doing well. But why Bearish? Can someone who has experience with stocks tell me what I should be thinking when I see something like this?

    Also, when I look at stocks in Ford, it looks like it's just been going down for the past 10 years. I see that it is considered undervalued by investors. Does this mean it is recommended to invest in it because we could anticipate a change?

    Yes, I understand that I'm not asking for financial advice on reddit. I need to learn how to do this though and think the same way you experienced traders think to get better.

    Thank you.

    submitted by /u/zertox3000
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    Are dividends from municipal bonds taxed at all?

    Posted: 01 Dec 2019 06:17 PM PST

    I keep getting mixed responses so I wish to ask on reddit, are the monthly dividends from municipal bonds taxed at all? I am looking at VCADX, which is Vanguard's California Intermediate-Term municipal bond index and it shows a monthly dividend payout of 2.5% or so...assuming I buy and hold, are these monthly dividends taxed at all?

    submitted by /u/thesecondrei
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    Harvesting gains while in the 0% cap gains bracket?

    Posted: 01 Dec 2019 03:48 PM PST

    This year my taxiable income will be in $0-$78,750 capital gains bracket (married, filing jointly); pay 0% tax on gains for securities held for longer than one year.

    The plan: I'd like to sell my mutual funds but only sell the shares I've held for over a year and just repurchase them in a month (once the frequency trading rule expires). Anyone do this to "lock in" long term gains yet pay no tax? Because these are all index funds, the fund manager has certainly been doing some buying/selling to meet the funds objectives. Even if I've held that share for over a year, are there short term gains which might be irrevocably baked into the security due to this inner-fund purchasing? I plan on using a cost basis method of SpecID and just selling the lots I've held for over a year. Anything else I'm missing? I use vanguard fyi. I ready max my retirement tax deferred accounts. This is strictly a brokerage account.

    submitted by /u/tmwme
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