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    Tuesday, January 7, 2020

    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: 07 Jan 2020 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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    Dow recovers from 200-point drop to finish higher as investors shake off geopolitical concerns

    Posted: 06 Jan 2020 02:12 PM PST

    https://www.cnbc.com/2020/01/06/dow-futures-drop-amid-geopolitical-tensions.html

    "If you were looking for a reason to sell, you got one," said Art Hogan, chief market strategist at National Securities. "But the fundamental backdrop hasn't changed in front of our eyes."

    "The market has done exactly what it should do," he added.

    Could not have said it better. Hogan is 100% correct here.

    submitted by /u/FortyYearOldVirgin
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    What is the benifit of buying physical gold?

    Posted: 06 Jan 2020 06:06 AM PST

    Why would you choose physical gold over a gold etf? It looks like with physical gold there is a premium you pay to a dealer. Then once you have it and need to sell it, wouldn't you need to go to a dealer once again selling it heavily discounted? Is the physical gold in the off chance the economy crumbled? Sorry if this is a stupid question, I'm just curious before I make a purchase myself.

    submitted by /u/laminin1
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    S&P overvalued? Not so fast... A quick look at long term trend

    Posted: 06 Jan 2020 09:54 AM PST

    I saw this analysis mentioned in today's Bloomberg email. I thought it was interesting enough to share here.

    Tim Duy (University of Oregon) did a quick analysis of stock valuations and trends over the last 40+ years, as you can see here

    Summary:

    In my view, the behavior of equities this year is not an unexplainable deviation from fundamentals but an expected recovery from excessive pessimism. Is there excessive optimism now? Nothing dramatic relative to my expectations given the ongoing expansion. That doesn't rule out a correction, but absent a recession I would tend to view it only as noise around the trend.

    Bottom Line: I don't think you need to fall back on "it's all QE" to explain the behavior of equities this past year or this cycle. It appears to me that the general path of equities is what should have been anticipated given continued expansion. To the extent the Fed is involved, it is because policy moves have sustained the economic expansion.

    It seems pretty simple... look at the S&P 500 on a log scale over many decades and everything that has happened the last several years is mostly just a continuation of the norm.

    submitted by /u/manofthewild07
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    AAPL well positioned to outperform in 2020 despite its massive run in 2019

    Posted: 06 Jan 2020 10:55 AM PST

    The FAANGs are increasingly competing against each other, and are likely to start seeing divergent performance after largely moving together the last few years. It will be a battle of the network effects, and AAPL is well positioned to win/outperform because:

    1) it has direct relationships with 900m or 15% of the world's wealthiest consumers;

    2) its successful transition from a product-based company to an ecosystem company means its relationship with users is becoming increasingly sticky and a product-based company (e.g. Samsung) can no longer disrupt AAPL; only another ecosystem company (e.g. Google) could compete;

    3) AAPL's increasingly recurring-revenue business model is driving its valuation multiple expansion;

    4) AAPL has the best data for machine learning and AI to drive long-term data network effects, because its closed ecosystem greatly limits fraud;

    5) its enormous net cash position provides the flexibility to invest strategically and return of capital.

    submitted by /u/street-guru
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    What company basically has a monopoly?

    Posted: 06 Jan 2020 10:43 PM PST

    What company basically has a monopoly?

    submitted by /u/Greenjuice154
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    What happens when your Broker goes broke?

    Posted: 07 Jan 2020 12:23 AM PST

    When you have your depot at some broker and this broker goes out of business, how do prove that you own stock xyz and how to you transfer your portfolio to another broker?

    Thanks in advance, happy investing :)

    submitted by /u/whatusernameisntal
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    ETFs with small set of holdings

    Posted: 07 Jan 2020 02:15 AM PST

    Maybe this is a dumb question...Why not just buy the stocks held in an ETF? I know for something like VTI that doesn't make sense. But looking at some financial services ETFs and I wonder what could be lost by buying a set of say 10 stocks (that's how many are in IAI for example) instead of the index. This would save on fees right?

    I know BRK has special deals and preferred stock in their holdings. Do ETF managers work out similar deals or special agreements to make funds better than a DIY approach?

    submitted by /u/friscosaratoga
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    can I go ahead and contribute 6k for the 2020 roth ira if I anticipate to make that much

    Posted: 06 Jan 2020 06:03 PM PST

    I only made about 700 for the last year and contributed that much but can I go ahead and contribute the 6k for 2020?

    submitted by /u/asmonbold
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    General Electric - Trading above $12

    Posted: 06 Jan 2020 07:49 AM PST

    Anyone else think GE will continue it's comeback? I think Culp is doing a good job so far given the situation that he was handed in 2018.

    submitted by /u/zzoar13
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    Asking advice for a young investor

    Posted: 07 Jan 2020 04:05 AM PST

    Hey guys, I have been dabbing into stocks a bit here and there and have built a portfolio of around $200 over the last 12 months. Starting 2020 I have roughly $60-75 to spend monthly and I am looking to diversify a bit.

    As of now I have a position in $AMD, $BAC, $NIO, and $AML and would like to know what would be good stock recommendations that also meet the requirement of diversifying the portfolio. Preferably do not suggest ETF's as I like to actively manage my own portfolio, I appreciate any advice!

    submitted by /u/LelovenaLoL
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    Other EV manufacturers?

    Posted: 07 Jan 2020 04:03 AM PST

    What do you think of other-than-tesla EV manufacturers, like NIO for instance? Worth it to go in now, potential growth? Another one will try to IPO in the US this year apparently. What are your thoughts?

    submitted by /u/flovlgd
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    US stock markets pause as Middle East fears recede

    Posted: 07 Jan 2020 03:58 AM PST

    https://www.cnbc.com/2020/01/07/dow-futures-middle-east-fears-recede-oil-prices-fall.html

    U.S. stock index futures were hovering around the flatline Tuesday morning.

    • Market players are now waiting to see if the situation will escalate with a potential retaliation from Iranian forces.
    • Oil prices fell Tuesday morning after recent gains.
    • There will be U.S. trade deficit figures out at 8:30 a.m. ET.
    submitted by /u/FortyYearOldVirgin
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    Unable to find Costco's debt-to-equity ratio. Please help

    Posted: 07 Jan 2020 12:05 AM PST

    Debt-to-Equity is Total Liabilities ÷ Total Shareholders' Equity as pointed out in Investopedia.

    When calculating Costco's 2019 debt to equity ratio using their 2019 Financial Statement,I end up with 1.91 (29,816 ÷ 15,243). However, when verifying if this is correct, I am finding numerous sources saying otherwise.

    Yahoo finance says Costco's d/e = 48%

    Zackz says Costco's d/e = 46%

    This really frustrating could someone please explain what I'm doing wrong.

    submitted by /u/augustopinochet101
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    Google Sheets Finance Return Stock All Time Highs?

    Posted: 06 Jan 2020 05:59 PM PST

    https://imgur.com/a/M5w0Neq

    How do I get all time highs for stocks? I try this formula but I get REF. I'm not sure why it's wrong as I followed the instructions.

    "High52" only works for the last 52 weeks. I want all time high prices for all of time.

    Same for dividend yield. I use "yieldpct" and it doesn't work.

    submitted by /u/kotachendoge
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    A portfolio with just four funds

    Posted: 06 Jan 2020 05:56 PM PST

    I've seen information recently about building a portfolio with just 4 funds: VTI, VXUS, BND, and BNDX. This gives access to US equities via VTI, ex-US via VXUS, US bonds via BND and international bonds via BNDX. These are all low fee, highly diversified funds. I'm assuming this would be a great set of investments for someone that doesn't want to try to cherry pick stocks and bonds. Agree? Do you see any big issues with such strategies?

    submitted by /u/mateoverano
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    Why isn't the Buffet Indicator or the Shiller P/E ratio valid any more? Why do people think this time is different?

    Posted: 06 Jan 2020 04:45 PM PST

    I'm not a stock market expert, but I'm looking at charts like this that show stock prices compared to the GDP: https://www.gurufocus.com/stock-market-valuations.php (Total Market Cap / GDP fair value has historically been < 90%, today it's at a record high of 153%).

    And this about the P/E ratio: https://www.gurufocus.com/shiller-PE.php ("Shiller P/E is 31, that's 82.4% higher than the historical mean of 17").

    And it sure does look to me like stock prices compared to the GDP or earnings are at an all-time extraordinary high ratio, and every time we've seen anything close to this happen in the past, it was always followed by a major market downturn.

    I can't figure out why people think this time is unique and different than the past. Whenever someone has mentioned this here, the most common response seems to be that "people have been saying that the stock market is overvalued for the past 1-2 years but it just keeps on going up so those people were wrong and everything is fine". But that just makes me think the coming inevitable crash is going to be even worse when it does finally come because stocks are just even more insanely overvalued.

    What am I missing here? Why isn't there more concern about this? When I watch documentaries about past market crashes there's always the part where they talk about how the warning signs were there, but people ignored them and kept on pouring every more money into stocks regardless of the price. This sure does seem a lot like that once again.

    submitted by /u/thbt101
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    How much of the stock market movement is emotional?

    Posted: 06 Jan 2020 02:45 PM PST

    People say everything is 'priced-in' to the stock market, but this assumes that current prices are based 100% on logic and nothing on emotion. Is this true, or is there any element of emotion at play here? Just kind of thinking of the minor drop during the Iran tensions as an example.

    submitted by /u/J1mmy5463
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    Can't decide between QQQ and VGT for my 401k

    Posted: 06 Jan 2020 06:09 PM PST

    Hi everyone,

    I have recently made the decision to re-balance my 401k (and IRA) to as much tech as possible. I believe that the big tech companies would simply eat more market share and thrive even in a recession environment, and that they are really the backbone of the US economy.

    With that said, I am conflicted on whether to buy VGT or QQQ for my retirement accounts. QQQ has more of the tech companies I am interested in (such as Amazon & Google) but its recent and medium term (5 years) term performance is lagging my other competitor (VGT).

    VGT is a lower cost fund which emphasizes tech 100%, unlike QQQ. However, ironically enough, its missing a lot of the tech companies I would consider to be "tech" companies, such as Google or Amazon, because those are defined in other economic categories. It has outperformed QQQ in the short and medium term, only slightly losing out in the long term. However, I question if that trend will continue going forward, seeing as the tech re-classification was a recent change and most of VGT's recent success comes from Apple and Microsoft having explosive growth.

    So with that said, fellow tech enthusiasts out there- which is your preferred ETF?

    Thanks!

    submitted by /u/ahsanali65
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    Bullish on QSR? Thoughts?

    Posted: 06 Jan 2020 06:07 PM PST

    It's been trickling down. Picked up some of this along the way.

    I know that restaurant businesses are suffering but it's P/E isn't crazy, over 3% dividend, BK and Popeyes doing well, expansion strategies, etc. All seems promising?

    Despite all the hatred over Timmy's, every TH store I've seen over the last quarter had at least 5-10 lined up. I tried their blueberry donuts and they're the best thing TH's had in a while. Some stores were actually out of them.

    Not sure why the stock is so bearish? There are better stock picks out there right now, but am I the only one who thinks this stock will skyrocket with the Q4 results in February? Or am I missing something here?

    submitted by /u/tooo_spicy
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    Hello, Is there a free chat rooms to discuss with other trader about penny stocks??

    Posted: 07 Jan 2020 01:38 AM PST

    Hello,

    Is there a free chat rooms to discuss with other trader about penny stocks??

    submitted by /u/forumdime
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    Easiest way to create/manage your own personal "mutual fund" ?

    Posted: 06 Jan 2020 06:40 PM PST

    Now that commissions are widely $0, I would like to essentially create my own tiny, personal mutual fund.

    I use Ameritrade, so preferably would like to know if there's something I can do within Ameritrade, but am open to considering other brokerages if they offer what I need.

    For example, I want to take about 25k and purchase $500 worth of 50 stocks that I have identified. If I did that in my current Ameritrade account, it would be hard to 'separate' these from other stocks that I own. So tracking the performance of this bundle of 50 as a package would not be super easy. The only thing I can think is I'd have to open a separate brokerage account thru Ameritrade, deposit the 25k to it, then buy the stocks and manage the accounts separately.

    Anyone know any better ways to do this? Or is 'new separate account' basically the only option?

    submitted by /u/firecat245
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    There's a thing I dont understand, is the stock price the company's value dividend by the number of outstanding stocks, or does the stock live his own life?

    Posted: 06 Jan 2020 10:17 PM PST

    AMD call

    Posted: 06 Jan 2020 02:37 PM PST

    My 55c expires 1/17, should I sell tomorrow or after supposed trade deal?

    submitted by /u/cd_root
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    Investing in Africa

    Posted: 06 Jan 2020 03:52 PM PST

    Anyone have suggestions on low-cost ETFs that have broad based exposure to Africa?

    submitted by /u/ladroux4597
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