Tesla can get support for German factory: Economy Minister Investing |
- Tesla can get support for German factory: Economy Minister
- Tesla (TSLA) to resume production on Monday
- Bitcoin just hit $10000 again! Bubble 2.0 in the works?
- Modeled 65 Years of S&P 500 w dividends coupled with a variable bond component. This is what I learned...
- Bridgewater's report on Coronavirus market impact
- China’s return to work on Monday will be very limited. Guangzhou has reportedly asked companies to “voluntarily” delay restarting until March 1. Severe punishment for those that open before then.
- Investing = Addictive
- Cruise industry and Coronavirus? Buy or not?
- 100% Microsoft Portfolio Talk
- Is it possible to build wealth using only public REITs?
- Researching about a company's internals.
- Anyone online services that have enough of a following to cause stock movements?
- Help understanding/calculating Call options
- Fidelity Robo ranked "Best Overall Robo" for 3rd consecutive time
- Snowflake now at $12.4B Valuation after new round of funding from Salesforce
- Where can I find historical yearly alpha and beta data points for various mutual funds? Or how can I calculate it myself?
- Shifting allocation from equity to bonds over time
- Dividend Investing
- Research on the 1918 Spanish Flu for Coronavirus parellels on economic performance
- What role, if any, should junk bonds play in a portfolio?
- Have I Beat the S&P500 for 10 years now?
- Throw all the books at me.
- Options purchase
- Anyone think there will be a rush of Money/investment flowing from China into US, Canada and Australia after the coronavirus outbreak eventually settles down?
- When will Mid Cap Index and ETFs get back on track?
| Tesla can get support for German factory: Economy Minister Posted: 08 Feb 2020 05:51 PM PST |
| Tesla (TSLA) to resume production on Monday Posted: 08 Feb 2020 05:57 AM PST |
| Bitcoin just hit $10000 again! Bubble 2.0 in the works? Posted: 08 Feb 2020 10:28 PM PST Interesting news. Bitcoin just hit $10k again! This breaks a psychological barrier and I can imagine the price getting a nice boost in the coming days. I am curious what this sub thinks of Bitcoin. Bitcoin has been regarded by most seasoned investors as a bubble, going from $1 to a decade ago to $20000 in 2017, before crashing down to $6000, and now going back to $10000. However, during the dotcom bubble, many stocks crashed including Amazon and Apple. Looked how they turned out today. Point is, even with a bubble there are many winners and losers. Could Bitcoin actually be a long term winner? [link] [comments]  |
| Posted: 08 Feb 2020 04:15 PM PST THE THEORY According the The Intelligent Investor By Benjamin Graham, the Investor should have a substantial bond component to counteract the dips in the volatile stock component. He should seek to have anywhere from 25% - 75% of his money in the bond component - preferentially a 50/50 split. His method suggested that you rebalance on some long-term frequency (quarterly, annually, etc.) so as to keep the balance. In doing so the theory goes that you would have money to re-invest during the dips in the market and thus come out ahead of the person who would solely invest in stocks. THE DATA
THE MODEL
(1) Re-balancing on a predetermined frequency. (2) Re-balancing reactively to market conditions. Specifically, in this model it would be to dips in the market. So only rebalance when the market tumbles. THE RESULTS - Prefatory Comments As we all know the general market goes up readily year over year. Over this 65 year period to present, it has gone up 7.6% year over year. The bond component is steady given its user inputted, but in general it has decreased. The real money in these situations has been selling bonds and not waiting for them to mature. There is no easy way to track the market price for individual bonds across the years, so I will have to have an update at a later time providing additional info. THE RESULTS - Actually this time... So plain and simple, it proved to be a fruitless endeavor to have a bond component whatsoever. No matter which method of rebalancing chosen, it was better to have 100% of your money in the general market. (In-fact the reactive method of rebalancing your portfolio worked out worse than doing it on a schedule) The returns realized were far more than the market average given the dividend re-investment OVERALL RETURN ~44,000% :: COMPOUNDED RATE ~6% Year over Year (Some of you may be confused a little as to how you can have the market go up 7.6% year over Year on average and still do better than the market at a 6% Year over Year return with dividends, and thats because the trailing end of the model is not reflective of the averages and will both skew and distort the information. Additionally, the money recently invested will show a 0% return in the immediate; money really needs to be in the market for a while for it to be entirely reflective.) One might be asking at this time, ok well these numbers entirely depend on the coupon rate selected for bonds, and I would totally agree. Thats why I over-estimated the bond coupon rate at 7% or more, and still it was optimal to put 100% into stocks. For more information. Excel would change both the balance as well as the frequency in the first model and it always landed on 100% stock component as being the most optimal. In the second model it would optimize the balance as well as how much the market had to drop before rebalancing. Similarly, 100% was the most optimal. What was determined from graphing the data was that unless one had foresight into coming crashes it was only optimal to keep all of your money in the market. A future analysis will have to be done to determine about how much foresight would be needed. To elaborate further, if you could sense a market recession coming on it would be beneficial to skew your balance (something Graham recommends if possible) and this model didnt show that. This is obvious but difficult to put into practice for fear of losing out. Graham advised this for a few reasons that were not elaborated, in his day the index funds available to us today were not available and his advice wasnt as simple as... rain or shine you are to rebalance... as mentioned in the last paragraph, you were to use an understanding of the market to determine what ratio of stocks to bonds you should have and not keep it a set ratio. FINAL COMMENTS If you are to invest in bonds, do so not as a consistent strategy or reactively. It should be done as a hedge against future crashes if you are to make money from it. Another analysis will soon look at foresight hedging your portfolio and then returning post-crash to a predominate stock based portfolio. Also, a 100% index fund into the S&P 500 proves to work out just fine and shouldnt be looked down upon as a great way to make money for your retirement. [link] [comments]  |
| Bridgewater's report on Coronavirus market impact Posted: 08 Feb 2020 05:43 PM PST This the best report yet on how the Coronavirus is impacting markets today and is compared to SARS. [link] [comments]  |
| Posted: 08 Feb 2020 08:15 PM PST
Guangzhou is just outside of Shenzhen and Hong Kong, within 50 miles. Guangzhou is a center for automobiles and electronics. Shenzhen is more of a high tech display/electronics hub. If they shut down Guangzhou and Shenzhen, I think it might be nearly impossible to build anything with any electronic/chip/display components in it. [link] [comments]  |
| Posted: 08 Feb 2020 03:44 PM PST I'm not sure about anyone else here but even if the market goes down or up or stays flat, the fact that I'm investing in the market and continually investing, is somewhat addicting. Again, I'm not sure how it is for anyone else here but personally, investing is super addictive, just seeing that big number grow over time and knowing that eventually later in the future (hopefully) you can be financially stable once you're ready to retire. [link] [comments]  |
| Cruise industry and Coronavirus? Buy or not? Posted: 08 Feb 2020 10:09 PM PST $CCL, as well as $RCL, have taken a 10%+ hit over the past month due to Coronavirus. Worth buying the dip? My timeframe is at least a few years of holding. [link] [comments]  |
| Posted: 09 Feb 2020 12:19 AM PST Real talk. 100% of my portfolio is MSFT calls. I don't own a single stock. Am i an idiot? Secondly. My knowledge is quite limited on options aside from puts/calls. Where should i go to learn more? I'd like to employ some safter strategies once my MSFT high wears off. Should i keep going YOLO or take a step back and look at what i'm doing? How much of your portfolio is involved in options? Which stock has the largest percentage and why? What broker do you use? [link] [comments]  |
| Is it possible to build wealth using only public REITs? Posted: 08 Feb 2020 11:40 AM PST I'm interested in building a large amount of wealth ($1+) in real estate and having livable passive income from it. I want to do that with REITs, not directly investing. As I have a full time job, owning real estate sounds like a big hurdle that I don't have the time, knowledge or capital to do at the moment. When I talked to my financial advisor, he told me that I needed to talk to a broker, find the property, get an accountant, set up legal structures, talk to a lawyer, find a property manager, get financing from the bank and so on. My financial advisor said REITs were just as good and you could even make a passive income off then. They seem great from what I've read online. I have bought any just yet, though. Would it be possible to build wealth with REITs the same way direct investors do? They almost sound too good to be true but I'm not an expert. [link] [comments]  |
| Researching about a company's internals. Posted: 08 Feb 2020 09:09 PM PST How do I find out information about a company's management, structure and culture in depth using the internet alone? Or are there other better ways of doing so? [link] [comments]  |
| Anyone online services that have enough of a following to cause stock movements? Posted: 08 Feb 2020 01:47 PM PST Other than the Motley Fool? I've noticed that whenever MF recommends a stock, in the following 1 or 2 minutes the stock price spikes up. For example, last recommendation the stock shot up by 15%, and the one prior to that by 10%, and in both cases it was in the matter of minutes. Apparently, they have over 600,000 members, so if everyone blindly buys their recommendation, especially when it's a stock with less volume, I can see why this would cause such a surge... Are there other services out there that have enough of a following to create such a material impact on stock prices? Edit: Title should've read: Any online serives* [link] [comments]  |
| Help understanding/calculating Call options Posted: 08 Feb 2020 07:01 PM PST Would love some help in understanding a potential call option. I'm looking at a stock currently priced at just under $10/share that I expect to increase by 20% by September or October. I am not able to buy options yet but, through my account at Fidelity, have access to their Strategy Evaluator to figure out how much I could potentially make (or lose) by buying Call options. I have read a little bit about options (I know - a little knowledge is dangerous) but I am willing to lose up to $2,500 on this 'bet'. I just have no clue what I could potentially gain... Also, I plan on doing this inside of my SEP-IRA account if that matters. So the Strategy Evaluator has the following fields to fill out: Underlying - put in the stock ticker If anyone is willing to help me fill out these fields just so I have a sense of how much this might earn, I would appreciate it. I know I don't want a 'naked' call or anything else that has the potential for huge downside risk (ie more than $2,500) Thanks! [link] [comments]  |
| Fidelity Robo ranked "Best Overall Robo" for 3rd consecutive time Posted: 08 Feb 2020 10:15 AM PST Backend Benchmarking just released their Q4 2019 Robo Adviser report. "The Robo Ranking™ grades the robos across more than 45 specific metrics and is the only examina- tion that includes real and reliable performance data. We scored each robo on various high-level categories, such as features, financial planning, customer experience, access to live advisors, trans- parency and conflicts of interest, size and tenure, account minimums, costs, and performance. Each metric that we grade is specific and unambiguous." Fidelity Go was once again recognized as the "Best Overall Robo" for the following reasons: "Consistent performance, a competi- tive fee structure, and strong digital planning tools are why we ranked Fidelity Go as the Best Overall Robo." Check out the full report here: [link] [comments]  |
| Snowflake now at $12.4B Valuation after new round of funding from Salesforce Posted: 08 Feb 2020 06:28 AM PST |
| Posted: 08 Feb 2020 09:33 PM PST |
| Shifting allocation from equity to bonds over time Posted: 09 Feb 2020 02:57 AM PST Hi all, First post here (I believe), so hi everyone. Simple enough question; I currently have an aggressive equity/bond split of something like 85/15 (3 ETFs, typical simple plan). I'm aware of the wisdom to shift towards bonds over time, and currently I'm handling this by adjusting that ratio over time. The way I had intended to do this was to increase my bond spend over time (spreadsheet calculated). Therefore the ratio would change. This seems to make sense, but I had wondered if this might start to get strange over time; I.e. I would eventually stop buying equity at all and only bonds. However the alternative would be to sell equity to shift to bonds. Since this is taxable, seems to make no sense So overall, was just looking for clarification that this indeed the typical way to do things. Hope you can help! Thanks [link] [comments]  |
| Posted: 08 Feb 2020 08:14 AM PST What is your opinion on dividend investing, do you guys think it is a legitimate way of investing? Do you guys love or hate dividend investing? Personally, I think it is a great vehicle to build passive income and was wondering what your criticism of it you people have and whether or not you think dividends are a good way to gain profit? [link] [comments]  |
| Research on the 1918 Spanish Flu for Coronavirus parellels on economic performance Posted: 09 Feb 2020 02:06 AM PST Hello all, with the Coronavirus looking more and more like the Spanish flu of 1918 by fatality rate and infectivity, or more so comparedto other relatively modern pandemics, I decided to do some research to find information about the economic effects. Here is a summary of what I found:
Notes: For 3-5, I used information from a Stlouisfed.org .pdf titled "Economic Effects of the 1918 Influenza Pandemic". Also, it is difficult to tell how much of the stock performance and inflation was due to the ending of WWI. I hope somebody finds this information useful in their future investing endeavors. [link] [comments]  |
| What role, if any, should junk bonds play in a portfolio? Posted: 08 Feb 2020 09:12 PM PST In a bull market, junk bonds do reasonably well due to low credit risk, but this is tempered by inflation risk and possible interest rate hikes. In general, during good times, junk bonds would be expected to under-perform the stock market. During bad times, credit risk becomes problematic, so junk bonds will underperform investment-grade bonds. So while junk bonds are not the ideal asset to hold during a bear market or a bull market, they'll have better returns than investment-grade bonds during a bull market, and they won't incur as much loss as stocks during a bear market (unless, of course, a very bad downturn leads to a wave of defaults). Thus, they seem like a good "stabilizer" for any scenario except a very bad credit crisis. It seems to me, that there are a couple scenarios where junk bonds would be a particularly good asset to hold. I'd expect them to do well (relative to stocks and investment-grade bonds) during a stagnant period, or during a stock market correction amidst a reasonably healthy economy. Am I correct in my view that a 10%-ish allocation to junk bonds is appropriate for a young investor with a long time horizon? The risk/reward characteristics of junk bonds seem pretty similar to REITs, so I'm wondering whether it would make sense to think of junk bonds and REITs as jointly constituting a "stabilizer" portion of a portfolio, in addition to the investment-grade bond and equity portions. [link] [comments]  |
| Have I Beat the S&P500 for 10 years now? Posted: 08 Feb 2020 07:58 AM PST I've been digging around in my Fidelity account today and found my performance tab. I've included a screen shot of it and was curious, have I been beating the SP500 by 3-7% for the last year? My 10 year annualized returns have been 16.75% vs 13.97% for the SP500 while my cumulative return shows 370% vs the S&P at 269%. These analytic documents are pretty interesting but I'm still trying to learn how to read everything. [link] [comments]  |
| Posted: 09 Feb 2020 12:29 AM PST Alright I'm a beginner and what's to know more about this. Throw me books that you recommend on investing, what the terms are, option trading, analytics and stuff. I already have the intelligent investor and I want to learn more. So throw it at me. Source: 14 year old [link] [comments]  |
| Posted: 08 Feb 2020 04:27 PM PST I'm learning about Options. If I own an get option, stock value goes up and I want to make some money on it, do I need to buy 100 shares to realize that earnings? It can end up being a LOT of money to do that. Take TSLA recently, an option for strike at 750, goes up to 950 (again) and I have 10 options (Each 100 shares). Do I need to 'buy' the stock 1000 shares at 750, for three quarter million, then sell those shares to make almost a quarter million? I don't have that kinda cash... Or do people just sell the option for a lesser haul? [link] [comments]  |
| Posted: 08 Feb 2020 12:22 PM PST Anyone think there will be a rush of Money/investment flowing from China into US, Canada and Australia after the coronavirus outbreak eventually settles down? US, Canada, and, in recent years, Australia have been the most popular places where the rich people in China love to send their kids, invest or purchase real estate. Would the coronavirus outlook, as well as Chinas handling of the outbreak, spurs a new rush of the rich Chineses to settle their families outside and move money/investment into These three countries? [link] [comments]  |
| When will Mid Cap Index and ETFs get back on track? Posted: 08 Feb 2020 09:15 PM PST I absolutely miss my old POAGX mid cap fund. I stopped contributing to it at the beginning of this year after being disappointed with what was happening to it. Anyone know if these will be as solid as they once were? [link] [comments]  |
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