• Breaking News

    Friday, February 28, 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: 28 Feb 2020 04:12 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
    [link] [comments]

    Dow closes down 1,200 points, stoic /r/investing denizens say they don't get out of bed for less than down 6%.

    Posted: 27 Feb 2020 01:02 PM PST

    Concise explanation of why stocks could fall 20% more from here

    Posted: 27 Feb 2020 04:59 PM PST

    I see so many comments on here anytime the market drops like "stocks are on sale" or "if you loved stocks last week, then you should love them even more this week," which seem to focus only on the price, without understanding what the price of a stock or the market consists of: future earnings expectations.

    Just because the price of a stock was X last week doesn't mean that price has any relevance to the price this week. And just because a stock rose 100% last year, doesn't mean that the stock is any more or less attractive today based on its past history, at least from a fundamental perspective.

    When you are only factoring in past prices (without analyzing new, forward-looking information) you are engaging in anchoring, a psychological concept that overweights initial information you are presented with.

    Here is a relatively concise analysis of the current market's outlook from Frank Curzio, who like every analyst, has had his hits and misses, but is usually quite bullish that actually displays analysis based on new information related to earnings. I would link, but this came from an email update.

    ***

    According to Capital IQ, S&P's research division, companies in the S&P 500 are expected to generate a combined $181 in earnings per share (EPS) in 2020. That's 14% higher than the $159 in combined EPS the S&P 500 generated in 2019.

    Now that the coronavirus has spread... there's no way earnings are growing 14% this year. In fact, Goldman Sachs—which once called the virus a "short-term problem"—just published a report saying earnings will not grow in 2020.

    I think this is conservative, given the number of companies that have lowered earnings over the past two weeks (including Apple and Microsoft, two of the biggest names in the S&P 500). But it's important that investors understand these numbers.

    If we see no earnings growth in 2020... that means 2020 earnings will come in at $159 a share, at most. But if we divide the current price of the S&P 500 (about $3,050) by the $159 in combined earnings... we can see that the S&P 500 is already trading at 19x forward earnings.

    In other words, even though the market pulled back more than 10%... the S&P 500 is still trading like there's no coronavirus. (Remember, earnings are falling alongside the markets... that's why the market is still expensive despite its 10% correction).

    At 19x forward earnings, the markets are still pricing in significant growth. Yet, earnings probably won't grow at all in 2020...

    What does this mean?

    There's likely another 20% downside from here.

    With no actual growth forecast for 2020, the market should be trading closer to 15x—the 10-year average... and more than 20% lower than current levels.

    Of course, this downside could be limited if we find a vaccine for the coronavirus in the short term... or if we see massive government intervention to help backstop the markets. (Things like lowering interest rates, preventing short selling, or injecting cash directly into the markets.)

    ***

    So anytime someone says stocks are on sale, or cheap, or a good time to buy, you should ask them, "what are you basing that information on?" The fact that the price is cheaper than it was last week/month/year means nothing without understanding the earnings picture.

    submitted by /u/Jackovdajakoff
    [link] [comments]

    Oil drops nearly 5%, breaking below $47 as collapse continues

    Posted: 27 Feb 2020 06:22 AM PST

    The amount of people who think investing $100,000 today would be more than $1M in 10 years is alarming

    Posted: 27 Feb 2020 11:58 AM PST

    Yesterday's popular askreddit post: https://old.reddit.com/r/AskReddit/comments/fa00m2/if_you_could_pick_between_100000_tomorrow_or/?sort=new

    So many people seem to think they can average better than 26% increases over the next 10 years. Either people don't under the math or are widely over estimating how well you can realistically do in the stock market game.

    How do you not take the guaranteed 26% APR over 10 years??

    submitted by /u/hokaythxbai
    [link] [comments]

    Corona beer takes a hit from coronavirus as brand image suffers

    Posted: 27 Feb 2020 06:48 AM PST

    https://www.bnnbloomberg.ca/corona-beer-takes-a-hit-from-coronavirus-as-brand-image-suffers-1.1396526

    The novel coronavirus has an unlikely victim -- one of the world's most popular beers.

    Corona has become the subject of memes and videos shared on social media as the toll from the virus climbs worldwide. Reports of an increase in online searches for "corona beer virus" and "beer coronavirus" show the Mexican beer hasn't been able to escape the association. The so-called purchase intent among adults in the U.S. has plunged to the lowest in two years, according to data from YouGov Plc.

    The damage has become more severe in recent days as infections spread. Shares of Corona-maker Constellation Brands Inc. dived 8 per cent this week in New York. Corona's buzz score -- which tracks whether American adults aware of the brand have heard positive or negative things about it -- has tumbled to 51 from a high of 75 at the beginning of the year, YouGov said.

    Corona, which derives its name from the Sun's corona and has nothing to do with the virus, is the third-most popular beer in the U.S., according to YouGov rankings. Guinness is first and Heineken is second.

    Another reason for the drop in purchase intent could be the perception of Corona as a summer beverage associated with beach holidays, YouGov business data journalist Graeme Bruce wrote in an article published Wednesday. It therefore has substantial seasonal fluctuations, he said.

    submitted by /u/cannainform2
    [link] [comments]

    CNBC: There have been 26 market corrections (not including Thursday) since World War II with an average decline of 13.7%; recoveries have taken four months on average.

    Posted: 27 Feb 2020 06:12 PM PST

    Copying and pasting in the text won't do this article justice as it provides some important context & has some easy to read graphs, so the link is below:

    https://www.cnbc.com/2020/02/27/heres-how-long-stock-market-corrections-last-and-how-bad-they-can-get.html

    submitted by /u/__justsayin__
    [link] [comments]

    Just watched the DOW drop 450 points in about 10 minutes

    Posted: 27 Feb 2020 01:07 PM PST

    Watching on my Yahoo app live. Damn. Went from about -750 to 1200 in the space of about 10 minutes right before market close.

    submitted by /u/fckRnbaMods
    [link] [comments]

    SPX closes with worst single day % drop since 2011

    Posted: 27 Feb 2020 01:08 PM PST

    Date Close Change
    8-Aug-11 1,119.46 -6.66%
    4-Aug-11 1,200.07 -4.78%
    18-Aug-11 1,140.65 -4.46%
    27-Feb-20 2,978.49 -4.42%
    10-Aug-11 1,120.76 -4.42%
    5-Feb-18 2,648.94 -4.10%
    24-Aug-15 1,893.21 -3.94%
    20-May-10 1,071.59 -3.90%
    8-Feb-18 2,581.00 -3.75%

    If there's no change tomorrow it'll be the 3rd worst week looking at 2010-current

    Date Close* change
    2-Feb-18 2,581.00 -8.54%
    28-Jul-11 1,200.07 -7.73%
    21-Feb-20 3,116.39 -7.61%
    13-May-10 1,071.59 -7.42%
    14-Dec-18 2,467.42 -6.91%
    15-Sep-11 1,129.56 -6.58%
    29-Apr-10 1,128.15 -6.52%
    4-Oct-18 2,728.37 -5.97%
    1-Jan-16 1,943.09 -4.93%
    5-Feb-16 1,829.08 -4.51%
    submitted by /u/pikindaguy
    [link] [comments]

    As an observer of this sub, i noticed typical traits here

    Posted: 27 Feb 2020 04:49 PM PST

    1) US stocks = good, international = bad or no point

    2) Its always Buy!Buy!Buy!, regardless what conditions

    3) Anything non equity = bad.. such as commods

    For sure getting downvoted, but yea groupthink and tunnel vision seems pretty strong in here..

    submitted by /u/ckysg
    [link] [comments]

    It only took ten days for the market to go from all time highs to a correction

    Posted: 27 Feb 2020 07:37 AM PST

    who else is holding cash right now getting ready?

    Posted: 28 Feb 2020 12:47 AM PST

    I'm around 55% cash right now sitting preparing to get in if a bigger correction happens (5-10 more percent down)

    submitted by /u/notthesuspct
    [link] [comments]

    The Toronto Stock Exchange has halted trading, citing "Order entry problem".

    Posted: 27 Feb 2020 12:32 PM PST

    Goldman sees zero earnings growth for US companies this year because of coronavirus

    Posted: 27 Feb 2020 06:43 AM PST

    https://www.cnbc.com/2020/02/27/goldman-sees-zero-earnings-growth-for-us-companies-this-year-because-of-coronavirus.html

    • Goldman Sachs revised its earnings estimate for the year for U.S. companies to $165 per share, representing 0% growth in 2020.
    • This is a dramatic break from the consensus forecast of Wall Street, which still calls for earnings to climb 7% this year.
    • "Our reduced profit forecasts reflect the severe decline in Chinese economic activity in 1Q, lower end-demand for US exporters, disruption to the supply chain for many US firms, a slowdown in US economic activity, and elevated business uncertainty," the firm's chief U.S. equity strategist David Kostin said in a note to clients
    submitted by /u/FortyYearOldVirgin
    [link] [comments]

    Japan and Shenzhen markets dive 4% on open

    Posted: 27 Feb 2020 09:51 PM PST

    PSA - Saying it's "priced in" doesn't mean anything

    Posted: 27 Feb 2020 01:45 PM PST

    This is, 99% of the time, the most useless phrase in all of r/investing. And this is coming from a guy who believes that the US stock (and bond) market is efficient. Saying that any bit of news is "priced in" is meaningless because although investors do supposedly price in "everything" into the current value of the stock market, that doesn't mean that the market can predict the future.

    This recent coronavirus thing has half of this sub saying "the disease is already priced in, calm yer tits". That doesn't mean that the market knows exactly how the coronavirus is gonna play out. All that means is that the "average" view of what the entire investor pool thinks the coronavirus is going to do to has been priced in. That means that in the future, the coronavirus can either meet, exceed, or underperform the market's expectations. When there's evidence of that, that information will be priced in too.

    tl;dr: The market can't predict the future. Saying "it's priced in" only means that the market is aware of news, which, duh.

    submitted by /u/rapier7
    [link] [comments]

    Dow records largest point decline ever: -$1199.39

    Posted: 27 Feb 2020 01:06 PM PST

    We have exceeded the fastest decline in US stock market history should fund managers and investors keep dumping more shares tomorrow. Keep in mind that we're NOT in a recession yet.

    Posted: 27 Feb 2020 06:08 PM PST

    We have exceeded the fastest decline in US stock market history. Keep in mind that we're NOT in a recession yet.

    submitted by /u/markyu008
    [link] [comments]

    this should be required watching for every HS student, american or otherwise

    Posted: 27 Feb 2020 04:05 PM PST

    Bought 6k worth of S&P500 on Friday before markets crashed.

    Posted: 27 Feb 2020 09:58 PM PST

    Bought 6k worth of S&P500 on Friday before markets crashed. Im down over 10%. Since Im here longterm I dont even really care. Moreover, I want to invest more. What strategy would be smarter. Invest weekly or a bigger onetime investment soon? Since market dipped I think its a good point to reinvest some capital. Even though it might go further down.

    submitted by /u/elpatron12345
    [link] [comments]

    What is your paper loss percentage tolerance before you start losing sleep at night? (mine: -40%; currently at -12%)

    Posted: 27 Feb 2020 06:18 PM PST

    Moderna

    Posted: 28 Feb 2020 04:11 AM PST

    Moderna did very will two days ago when there earnings came out and got a big bump with the coronavirus the same day. How do you think moderna will do today after there price dropped to 26.75?

    submitted by /u/Riverrat402
    [link] [comments]

    Starbucks (SBUX) said on Thursday it has re-opened 85 percent of its China stores after closing them amid the coronavirus (COVID-19) outbreak.

    Posted: 27 Feb 2020 08:24 AM PST

    Dow set to drop more than 500 points after Thursday’s massive tumble amid coronavirus fears

    Posted: 27 Feb 2020 10:04 PM PST

    Best stock screener for USA stocks?

    Posted: 28 Feb 2020 02:59 AM PST

    Hello! What site/platform is the handiest to use to screen for stocks, say, that are in the sp500 list. I would like to be able to sort by biggest losers of the month, for example. Being able to sort by biggest losers in terms of a special time period, such as a month, seems to tricky to find. Most are easily available to sort by daily changes obviously.

    Thanks!

    submitted by /u/FinnPharma
    [link] [comments]

    I'm new to trading and have 200k available to invest

    Posted: 28 Feb 2020 12:09 AM PST

    I've been very "conservative" and have mostly purchased bonds and CDs in the past.

    I'm 28, own a home, have a stable job and have no outstanding debts (besides my mortgage).

    I picked an interesting time to enter the market but this could be a good opportunity for me.

    Anyone have some really good tips for what to do in this scenario?

    Are there any recommended resources for strategies to making money in a situation like this?

    Any help is appreciated. Thanks

    submitted by /u/Wild-Explorer
    [link] [comments]

    1 comment:

    1. As stated by Stanford Medical, It is really the one and ONLY reason women in this country live 10 years more and weigh 42 pounds less than we do.

      (And really, it has NOTHING to do with genetics or some secret-exercise and absolutely EVERYTHING around "how" they are eating.)

      BTW, I said "HOW", and not "WHAT"...

      Click this link to determine if this brief test can help you decipher your real weight loss possibility

      ReplyDelete