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    Saturday, February 1, 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: 01 Feb 2020 04:11 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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    Apple temporarily shuts all stores and offices in mainland China

    Posted: 01 Feb 2020 12:05 AM PST

    https://www.cnbc.com/2020/02/01/apple-temporarily-shuts-all-stores-and-offices-in-mainland-china.html

    Looks like the analysts calling an even sharper dip as things worsened weren't kidding.

    submitted by /u/ElRamenKnight
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    Airbus to pay $4 billion to settle corruption probe

    Posted: 31 Jan 2020 07:59 AM PST

    PARIS (Reuters) - European planemaker Airbus (PA:AIR) will pay 3.6 billion euros ($4 billion) to settle corruption probes by U.S., British and French authorities into contract dealings, lifting a legal cloud that has hung over the world's largest aircraft maker for years.

    Announcing the agreement - effectively a corporate plea bargain - France's financial prosecutor said the company had also agreed to three years "light compliance monitoring" by the country's anti-corruption agency.

    https://affportal.jaagnet.com/JAAGNet-Groups/investment-community/blog/airbus-to-pay-4-billion-to-settle-corruption-probe

    submitted by /u/Nillabean1988
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    Dow plunges 650 points as Friday’s sell-off tied to the coronavirus accelerates into the close

    Posted: 31 Jan 2020 12:45 PM PST

    Why is the stock market tanking today?

    Posted: 31 Jan 2020 08:07 AM PST

    Will you be selling your oil stocks?

    Posted: 31 Jan 2020 03:51 PM PST

    Oil stocks account for 85% of all my losses. I was hoping oil prices would fall slowly enough over time to at least be counterbalanced by their dividends....

    submitted by /u/cute-girl-in-a-dress
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    India removes dividend distribution tax for corporations in the 2020 government budget presented today

    Posted: 01 Feb 2020 12:25 AM PST

    NYT: The Fed Wants to Loosen Rules Around Big Banks and Venture Capital

    Posted: 31 Jan 2020 07:50 AM PST

    Link to NYT article

    It sounds like smaller banks aren't entirely sold on this proposal. From the article:

    Chris Cole, the senior regulatory counsel for the Independent Community Bankers Association, a trade group that represents small banks, said the group was taking Ms. Brainard's concerns seriously and studying the proposal to try to decide whether the loosening of restrictions on big banks' venture capital investments went too far.

    The group's biggest concern is that if big banks' venture capital investments went belly up and destabilized the banks themselves, the Federal Deposit Insurance Corporation would end up having to bail them out using money collected for the deposit insurance fund. After that, the premiums on the deposit insurance that all banks are required to pay would go up.

    "That would mean that the small banks would get hurt," Mr. Cole said.

    A few questions for those who work in the industry and/or are more knowledgeable about this than I am:

    • Do you share the concerns that the ICBA rep mentioned above? What changes could remedy those concerns, assuming that this rule change goes through?

    • Do you agree with the rule change?

    submitted by /u/YesThisIsBare
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    "Dow drops 500 points!" ... So what?

    Posted: 31 Jan 2020 11:18 AM PST

    I've been seeing headlines in the news today about the Dow dropping 500-550 points throughout the day. Personally, I think it's an antiquated benchmark, and everybody needs to have a bit of a change in mindset.

    500 points is relative, which is why I look at things in terms of percentages. Is 500 points a lot? Well that depends:

    On October 9, 2007, the Dow peaked at close at $14,164. During the 2008 recession, I remember people making a big deal out of the Dow dropping 500 points. On 10/9/07, 500 points would have been roughly 3.5%. So is 500 points a lot? It sure is! Any other day that the Dow dropped 500 points during that time period would have been AT LEAST 3.5%.

    Fast forward to today. The Dow right now (around 2:15 PM ET) is down 527 points, or 1.83%. So is 500 points a lot? Relatively speaking, no. Markets can and do routinely swing by 2% either way throughout the day.

    What am I trying to say here? Numbers don't tell you anything, they are relative. A 500 point swing (at least in this market right now) is an antiquated benchmark that doesn't really mean anything, and we should all be looking at things more in terms of percentages rather than numbers.

    submitted by /u/WanderingGhost30
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    What's the best (cheap, easy, safe, etc) way to leverage a Roth IRA?

    Posted: 01 Feb 2020 02:04 AM PST

    As I understand it, margin and options are usually restricted, but I'm not sure.

    Why are non-resetting leveraged ETPs like SFLAF not more popular, and why is it an ETN, rather than an ETF?

    A non resetting leveraged ETF with a leverage ratio low enough that it won't go to zero in a recession seems like it would be the perfect investment for maximum returns in the long term.

    I realize that varying leverage ratio might be undesirable for some, but that seems like a small price to pay for avoiding leverage decay.

    I also realize that the risk of going to zero would be a concern, but that wouldn't be a problem at lower levels of leverage.

    Any insight is appreciated.

    submitted by /u/benjaminikuta
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    Is selling my $11k rolex and investing in BTC a good idea?

    Posted: 01 Feb 2020 04:50 AM PST

    GT (Goodyear Tire) valuation with little to no historic growth

    Posted: 31 Jan 2020 07:47 PM PST

    I admit I invested in goodyear tire stock (GT) as a noob thinking it was a cheap value stock. I didn't look too far back into financial statements. But I finally have, I went back all the way to 1993.

    Net sales today, are almost consistently the same as back in the early 90s. Net income as well, for this cyclical business.

    How should you value a company like this that has seemingly no growth for decades? Is there even a point at which you are getting a bargain? I understand the concept of buying companies trading below book value, but at what point would an investor even see a return(aside from a meager dividend). Would the company's assets have to be sold off and if so, why wouldn't this have already happened at the hands of an activist investor?

    I just can't understand how anyone could profit let alone keep this company afloat with practically zero growth.

    submitted by /u/howdope
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    Luckin Coffee stock sinks after anonymous report alleges fraud

    Posted: 31 Jan 2020 08:54 AM PST

    Luckin Coffee Inc. LK, -17.53% is down 12% in Friday trading after an anonymous report received by short seller Muddy Waters Research that alleges the company is fabricating its financial and operating figures, beginning with Q3 2019. MarketWatch cannot confirm the authenticity of the report, which is 89 pages long. The report alleges the number of items per store was bumped up 69% in the third quarter and 88% in the fourth quarter, based on 11,260 hours of store video that the anonymous authors claimed to have viewed. Luckin Coffee stock is down 20.6% for the week, taking a hit from the coronavirus outbreak that has been declared a public health emergency of international concern by the World Health Organization. Luckin shares have soared 64.3% over the last three months while the S&P 500 index SPX, -1.24% has gained 6.7% for the period.

    https://www.marketwatch.com/story/luckin-coffee-stock-sinks-after-anonymous-report-alleges-fraud-2020-01-31?mod=home-page

    submitted by /u/n0tfakenews
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    At Least Two-Thirds of China Economy to Stay Shut Next Week

    Posted: 31 Jan 2020 06:20 AM PST

    Source

    The main risk comes not from the drop in production, which China can make up for later in the year, but the disruption in the supply chains causing the uncertainty in production output of the companies not explicitly associated with China. Most companies build supply chains with very little redundancy in order to improve efficiency, so any gaps will seriously affect them. And there's always a risk that shutdown in China may be extended even further.

    submitted by /u/accidentally_right
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    What are possible hedges/uncorrelated investments for climatic risks?

    Posted: 01 Feb 2020 03:17 AM PST

    Assume an investor owning equity indices believes that tail risks such as climatic risks are undervalued. What are possible steps they can take to hedge these risks and which asset classes will not be affected by these risks?

    Which industries are probably more exposed to these risks?

    Do you personally believe that these risks are currently correctly priced in, especially in more exposed emerging markets?

    I'm looking for different perspectives and opinions, I do not want to get into political debates. Data shows that extreme climatic events are more frequent in certain regions of the world and are difficult to predict and that is sufficient in my opinion to have this debate as an investor.

    submitted by /u/Tryrshaugh
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    Good sub for options

    Posted: 01 Feb 2020 02:51 AM PST

    [Question] £10k in savings to invest - UK

    Posted: 01 Feb 2020 02:45 AM PST

    Hi,

    So I'm very new to this, and I'm looking for the most lucrative ways to invest £10k. I've been saving for a while now and am thinking I'd rather start investing rather than keep saving - does anyone have any tips or advice for beginners? Is there a more UK appropriate subreddit for this? Cheers.

    submitted by /u/xMazz
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    Opinions on NVIDIA

    Posted: 01 Feb 2020 02:41 AM PST

    Hello guys, how are you looking at NVIDIA with of course the Coronavirus but also the upcoming earnings report which will be published on February 13th?

    submitted by /u/Blacklistedb
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    Any primer for investing?

    Posted: 01 Feb 2020 01:26 AM PST

    I imagine this subreddit and forums like it get these questions on a regular basis but I feel like my situation is different since I'm only starting to invest at this late stage of my life.

    About 5 years ago I opened my first Tax Free Savings Account here in Canada which has only seen very small growth. That said I only put in about $5000 and forgot about it. Today I have but just $200 or so to show for.

    Not long ago, roughly last week I did another first, opened a retirement savings account. I think these go by different names but it's called a Rehistered Retirement Savings Plan or RRSP here. My company slperiodixslly sends me reports about my contributions my pay check makes and if I work another 20 years until retirement I'll pull in a paltry $8000 a year. I don't think I'll be working here much longer.

    At any rate my RRSP has an initial $10000 deposited in and in about 5 days I made $6!

    So clearly I'm trying to find something with a little more growth potential.

    My GIC which I can't remember what it stands for has made very little headway as well.

    So all my investments and savings I barely have $500 ROI. I have about $20000 ties up and plan on contributing annually to my RRSP but aside from that is there anything else I can do? I'm really terrible at investing, duh!

    Thanks

    submitted by /u/Ditheringoscilator
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    Discussion: "Cash is Trash"?

    Posted: 31 Jan 2020 01:43 PM PST

    in this Video, Ray Dalio states how the market is entering a new paradigm and how traditional fundamentals are being overlooked by growth and "dreams". He outlines a scenario in which when the market eventually does correct itself, this would lead to an increase in printing of money..

    So does that mean if one sits out with cash during this bull run because they feel unsafe, they're actually still losing money since the cash will become devalued during a big correction?

    He discusses Gold as a hedge but I thought gold does not protect against recessions, only inflation?

    submitted by /u/idkman93
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    SPY vs IVV - difference in returns.

    Posted: 31 Jan 2020 11:59 PM PST

    Can anyone tell me as to why do SPY and IVV have slightly different returns when they both track the S&P 500 index? Did a bit of research but can't understand the conclusion. Thoughts?

    submitted by /u/FireOnIce30
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    Where can I find interactive historical charts for international bond yields?

    Posted: 31 Jan 2020 04:20 PM PST

    About a month ago, I was looking at interactive historical charts for Italian/British/German bond yields but now I can't find the website where I found these interactive charts. Can anyone refer me to a website that has something like this? Thanks.

    submitted by /u/Virus4762
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    What is your opinion on Plug Power future outlook? Are hydrogen batteries scalable/cost effective?

    Posted: 31 Jan 2020 11:50 PM PST

    Facebook and it's 5 years outlook

    Posted: 31 Jan 2020 10:56 PM PST

    What do you guys think of Facebook? I think there's some regulatory risk on the horizon especially with elections coming. Slow growth in users is also an issue since they can't seem to capture the youth market?

    submitted by /u/drjelt
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    Can I replicate something like TESL or TQQQ without the daily reset by using options, futures, etc?

    Posted: 31 Jan 2020 10:54 PM PST

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