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    Tuesday, December 31, 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: 31 Dec 2019 04:10 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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    Majority of bitcoin trading is a hoax, new study finds

    Posted: 30 Dec 2019 06:05 AM PST

    Article: https://www.cnbc.com/amp/2019/03/22/majority-of-bitcoin-trading-is-a-hoax-new-study-finds.html?__twitter_impression=true

    KEY POINTS

    • Ninety-five percent of spot bitcoin trading volume is faked by unregulated exchanges, according to a study from Bitwise this week.

    • The firm analyzed the top 81 crypto exchanges by volume on industry site CoinMarketCap.com. They report an aggregated $6 billion in average daily bitcoin volume. The study finds that only $273 million of that is legitimate.

    • "People looked at cryptocurrency and said this market is a mess; that's because they were looking at data that was manipulated," says Matthew Hougan, global head of research at Bitwise. "When you cut away the echo chamber of these nonsense numbers, it should be an efficient, well-arbitraged market."

    • The analysis showed that "substantially all of the volume" reported on 71 out of the 81 exchanges was wash trading, a term that describes a person simultaneously selling and buying the same stock, or bitcoin in this case, to create the appearance of activity in the market. In other words, it's not real.

    submitted by /u/bennzo1238
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    Just noticed that total startup fundraising in NYC in 2019 was more than France, Germany, and Canada *combined*

    Posted: 30 Dec 2019 05:39 PM PST

    Source: https://techcrunch.com/2019/12/19/despite-winters-chill-the-northeasts-tech-ecosystem-is-white-hot/

    Is the US tech industry that much of an overachieving outlier, or is Europe's tech industry that weak? If the latter, what does the future hold for their economy if this continues?

    submitted by /u/gh0bs
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    Huawei: 'Survival will be our priority' in 2020

    Posted: 30 Dec 2019 07:10 PM PST

    Citibank Brokerage "N/A" commissions and fees actually mean $4.95 - I feel duped

    Posted: 30 Dec 2019 03:12 PM PST

    I keep money in citibank for the added banking service, but asked for a brokerage account to invest in. They started with 9.95 fees for trades, but then went to 4.95 and then last year with the commission war, dropped them to "N/A". I then started seeing a $4.95 commission on stop orders last month but not on market so I placed market orders. I look back at my recap and see that every one of the "N/A" orders actually charged $4.95. Every "N/A" commission regardless of the order type, platform, etc.

    Here's a screenshot of tonight for 1 share stop order in C with the $4.95 commission. https://imgur.com/a/FN3S3di

    Here's a market order for the same share with N/A commission https://imgur.com/a/CTqG8QC

    To me "N/A" means "not applicable". I called citibank and they said there's nothing wrong. I feel like its fraud bc 5 bucks is a lot if you're trading a few stocks or even just 1 or 2. Yeah, I should have checked every trade I made, to see if a commission was taken out, but then again, should I if I see "N/A" like they stated in the screenshots?

    Any input, advice, comments are appreciated.

    submitted by /u/SaintCharlieSheen
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    Max out 401k and IRA before other investing?

    Posted: 30 Dec 2019 02:55 PM PST

    Should you focus on maxing out tax incentivized accounts before putting money in other types of investing accounts?

    Or should I open a brokerage account and invest in a non retirement account alongside them?

    I know this is probably going to be a preference type of thing but if I am looking at long term growth and not short term (generally speaking) is this wise to do?

    submitted by /u/David_Westfield
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    If you're bearish for the next 2-3 years, what would you do?

    Posted: 30 Dec 2019 12:48 PM PST

    I'm in my mid 20's with med-high risk tolerance and here's my financial situation:

    • 401K: maxed out on a target-date fund
    • Traditional IRA: total market / international index funds
    • Roth IRA: maxed out on total market / international index funds
    • Brokerage acct / play money: individual stocks (mostly blue chip)

    I have remaining ~$30K I want to invest but not sure what to do:

    • Option A: Park in 12 mo CD for ~2% APY
    • Option B: Since I'm bearish on the market in the next 2-3 years, park in my savings acct (1.6% APY) and wait for market to dip (I know I can't time the market, dollar cost averaging yadda yadda).
    • Other options?

    I'm learning towards option A but would love outside input.

    submitted by /u/kharn4ge
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    Since yall wanted some business analysis. - CWCO

    Posted: 30 Dec 2019 08:18 AM PST

    Keep in mind that this is just a quick type up. It's not the complete picture. Do your own research.

    Name: Consolidated Water Co. Ltd.

    Ticker: CWCO

    Quick Stats

    • Marketcap: $250 Million
    • Net Income: $10 Million (continuing operations TTM)
    • Total Current Assets: $73 Million ($42 Million in Cash)
    • Total Liabilities: $10 Million
    • Dividend Yield: 2%

    **What does this company do?** The company develops and operates seawater desalination plants and water distribution systems primarily in the Cayman Islands, The Bahamas and the British Virgin Islands. In addition, the company manufactures and services a range of water-related products.

    Seawater Destilation (80% of gross profit)

    Adjust for ownership holding the company currently has a production capacity for 24 million gallons/day of drinkable water. Most of this production is in the Bahamas and Cayman islands. Most of the water produced (roughly 80%) is sold to goverments the exception being retail contracts in the Cayman islands.

    Risks:

    Water production experiences seasonality dependends on rainfall. Also note that the retail contracts have expired and that the company is currently negotating with goverment and that recently in july a new contract went in effect in the cayman islands for bulk production that resulted in a significant decrease in profit. This creates some uncertainty about future peformance.

    Upside:

    The company is in a joint venture with other companies for the construction of a new 100 million gallons/day destilation plant in Baja California mexico. Exactly how big stake in the project will be is not yet certain but it will be between 25% and 35%. The project is still far from here (around 5 years away) but for the patient investor this project will offer plenty of growth.

    Manfacturing & Acquisitons. (20% of gross profit)

    Since 2016 the company has been expanding into water equipment manufacturing with the acquisition of Aerex industries. The company thesis that secular demand growth will increase profits. The company also recently acquired PERC Acquisition. It's hard to make an assement about this section of the company. There is not as much information as I would like. The trackrecorded is mixed with bad peformance intiality but good growth recently

    Conclusion

    This company is definetly worth following. I'm not completely sure if the company is worth buying or not but the risk rewards defenitely seems attractive. If the mexico project and the manufacturing expansion pay off this stock could be a real winner. The stock isn't expensive either for a company with no debt, cash and growth plans.

    submitted by /u/Jeroen_Jrn
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    Are Schwab index funds good? Currently using VTI on Merril but wanted to give Schwab a try so I opened a brokerage account with them and I love it so far. My only concern is that sometimes I read they are good and sometimes I read they are not and to stick with Vanguard.

    Posted: 31 Dec 2019 02:57 AM PST

    Thanks in advance, wish you all a happy and successful 2020!

    submitted by /u/K3rn3l_pAn1k
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    If I sell mutual funds tomorrow Dec 31, that's 2019 (not 2020) capital gains, right?

    Posted: 30 Dec 2019 04:43 PM PST

    Since mutual funds sell at market close, the sell date would still be Dec 31 and not Jan 1, correct? Or is there some processing time that will put the date later?

    I want to make sure these long term capital gains are recorded on my 2019 income.

    Thanks!

    submitted by /u/AxisPT
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    Best place to learn fundamentals of investing, valuing businesses, macroeconomics etc

    Posted: 30 Dec 2019 09:09 AM PST

    I'm a complete financial-industry outsider (and too old to want to retrain formally in a business school or something) but want to learn more about the fundamentals of how to value companies, basic accounting, macro economics etc.

    I think 90% of what I want to learn is in the average business school MBA program, but that's not practical for me right now. Does anyone have any good recommendations on how to learn this stuff on their own initiative? E.g. any well-respected online business school programs I could dip in and out of? Maybe a particular youtube channel that teaches this stuff well?! Right now I'm thinking of just trawling through the Harvard MBA syllabus and googling each topic but that feels unlikely to be anywhere near as effective as a curated learning resource.

    I don't care about an accreditation, and don't want to do coursework, exams etc - I just want to learn this stuff on my own time and don't mind paying for access to high quality material. Thanks for any advice!

    submitted by /u/punchbagged
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    TVIX/UVXY.. just hear me out please

    Posted: 31 Dec 2019 01:43 AM PST

    In theory is it possible to short these and just hold them? I mean it seems a little too good to be true, these are almost always going down with the exception of a short term volatility spike.. and even then they drop hard after. Like say you keep your allocation in them to like 10% of your total equity portfolio, you wouldn't even risk getting a margin call.

    submitted by /u/Jake102991
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    When tax-gain harvesting, should you repurchase the same stock immediately after selling it (as in, within minutes?) or do you need to wait a certain amount of time.

    Posted: 30 Dec 2019 09:52 PM PST

    This is referring to the practice of selling a winning investment, and then re-buying that same investment in order to step up your cost basis and avoid LTCG taxes. It's my first time doing this and I'm doing it tonight, want to make sure I'm not missing something important thank you.

    submitted by /u/EliteAlmondMilk
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    Bid/ask spread and quote confusion

    Posted: 31 Dec 2019 12:55 AM PST

    I am a little bit confused about what I am currently seeing on Interactive Broker (screenshot here). According to Google Finance, AGGU is currently traded around 5.53 per share, which is what I see as last traded price in IB. As far as I understand, this should be in the range specified by the bid and ask spread. However, the bid/ask is 5.48/5.51 currently, which does not include 5.53. What am I missing here? Cheers

    submitted by /u/Jinsramen
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    15 year old and want to start investing for future

    Posted: 30 Dec 2019 08:59 PM PST

    As my title says I'm 15 and I want to start investing for things in the future like a house or retirement. I have a little over 1000 dollars and want to know where and how to put that money to work. Unfortunately I don't have very much available time to watch stocks daily so I would prefer something where the money just sits and makes me money. Thanks in advance

    submitted by /u/joe8225
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    Robinhood vs Charles Schwab

    Posted: 30 Dec 2019 08:37 AM PST

    I'm getting tired of RH being behind on stock time prices. I already opened my CS account, but will I notice any difference in order executions? What are the advantages of CS?

    submitted by /u/Malverde116
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    Need to withdraw a RMD by tomorrow from vanguard, yet sold the stock this morning and funds wont be settled by tomorrow dec 31st. Any suggestions?

    Posted: 30 Dec 2019 11:16 PM PST

    A lot of things happened that caused us to withdraw at end of the year instead of beginning of the year but by the time I realized it was time to withdraw it was already saturday.. I'll try not to make the same mistake next year best I can do, but I'm hoping for some advise or suggestions for my current problem.

    submitted by /u/diff2
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    real estate money

    Posted: 30 Dec 2019 07:29 PM PST

    i'm planning on putting a down payment on a duplex within the next 6 months, should I keep my money already invested in a few businesses invested, or should I pull it out now

    submitted by /u/fleeting-egg16
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    Want to enable margin trading to avoid waiting for cash to settle, good idea?

    Posted: 30 Dec 2019 01:13 PM PST

    I was even told by a Fidelity rep to do this. I have $28k in my Fidelity and I use that to day trade. I purchase a security with all $28k and then the same day sell when it goes up 1-3%. If I wish to buy back the security on the same day I can not as I used up all of my cash and it is still pending/not settled.

    If I enable margin trading would I be able to buy and sell the security and then buy it again on the same day? Or, not have to wait for my cash to be "settled"? I read I have to have at least $25k in my account, I have $28k but if all of that is pending does that mean I need another $25k sitting idle?

    submitted by /u/SadVacation5
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    Best short-term investments for this insane QE world we're in?

    Posted: 30 Dec 2019 09:45 PM PST

    I'm generally bearish, but considering it's clear that constant economic growth is the priority now, what are some good short-term investments to take advantage of more possible rate cuts and repo money?

    submitted by /u/AJ_LA1313
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    I don't understand my E*Trade sweep account. Is the sweep total counted as income? And where can I see the sweep account?

    Posted: 30 Dec 2019 09:21 PM PST

    I'm looking at the transaction history / reports / transactions by tax status for the year, and it lists all the transfers from margin to cash, then all the dividends paid, and then "sweep" it says "total sweep: (x) amount."

    Listed in the "sweep" list it's mostly all negative amounts, it will list -19.25 or -6.05 for example, but also included are 2 large *positive* amounts, which were withdraws that I took from the net cash balance. These are listed as "extended insurance sweep deposit account."

    Basically, I just don't understand this at all. Is the sweep account a separate account that I can see somewhere? Because I don't see it. Any help appreciated thanks.

    submitted by /u/EliteAlmondMilk
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    Having a debate with some friends, can use your advise.

    Posted: 30 Dec 2019 09:10 PM PST

    Which of the below is a better book for a beginner:

    1. One up on wall street - Peter Lynch
    2. How to make money in stocks - William J O'Neil

    And why?

    I think one up, but would love to hear your reasons.

    submitted by /u/godakati
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    [Discussion] Do you believe the us-china trade deal will get signed?

    Posted: 30 Dec 2019 07:50 AM PST

    Many recent activities point to yes, however someone may back out in hopes to getting a better deal later on. Thoughts?

    submitted by /u/BobLordOfTheCows
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    Why does RSI not consider volume?

    Posted: 30 Dec 2019 05:57 AM PST

    Shouldn't the indicator for overbought or oversold conditions factor in volume???

    submitted by /u/zeromodz12
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