The market has been on such an insane run that even after losing over 1500 points in the recent sessions, the DOW is only back down to about where it was in mid-November 2019. Investing |
- The market has been on such an insane run that even after losing over 1500 points in the recent sessions, the DOW is only back down to about where it was in mid-November 2019.
- Attn newcomers: Not all advice you get in here will be good advice. Keep your thoughts based on logic, and don’t get caught up in irrational exuberance because DragonLord123 is excited.
- Warren Buffett calls Apple ‘probably the best business I know in the world’
- Warren Buffett: Don’t 'buy or sell’ stocks on coronavirus fears
- Picking stocks based on personal consumption
- Dow plunges nearly 1,000 points, gives up gain for the year
- Millions of Chinese Firms Face Collapse If Banks Don’t Act
- Dow futures rise more than 200 points in overnight trading following the measure’s worst drop in 2 years
- United Airlines and Mastercard suspend FY '20 Guidance
- How did 2008 feel in the moment?
- Inverse ETFs
- The Dow tumbled more than 1,000 points and marked its third-worst point drop in history — here’s how the stock market tends to perform after big drops
- Fidelity, Schwab say some clients experienced technical issues amid 800-point Dow plunge
- What do you think is the next big industry as we go into the 2020s
- British fintech Revolut hits $5.5 billion valuation after funding round
- What were the primary reasons behind the large stock market drop on Dec 24, 2018?
- Are you a patient investor?
- $AMD drops 12 percent in 2 days and 5% pre-market
- Gilead stock rises after WHO points to remdesivir as a possible treatment. Trial ongoing in China, results are pending.
- Mac with ARM processor = Intel is going down
- Class A common stock investment advice
- Question about short term investing in Canada regarding taxes and potential gains offset by taxes?
- How to leverage and benefit 2x on small price movements of 2-3% ? Looking to bet on overall market movement. Any advice?
| Posted: 24 Feb 2020 01:28 PM PST Chart here: https://www.cnbc.com/quotes/?symbol=.DJI Obviously, it can keep falling if coronavirus continues to spread, I get that. But I wonder if part of this isn't JUST the virus, although that was the major causative factor. I think people were generally thinking this market needed a bit of a correction, and the virus, while a major danger to markets in its own right, provided everyone an opportunity to unload all of their anxieties. We'll see how far down it goes. [link] [comments]  | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 24 Feb 2020 03:57 PM PST I may get a truck load of downvotes for this, but I really think this is important to acknowledge. The sheer amount of terrible advice and lack of knowledge in this sub is astounding. Sure, a lot of you are very knowledgeable and make great contributions, but for every one of those people it seems there's 3 that have no idea, and unfortunately those 3 usually shout the loudest. It's dangerous for people new to investing that are reading these threads. I am no expert, I don't claim to be an expert, and freely admit that there is a lot that I don't know. Yet, I can confidently say that a lot of people in here either don't know or understand basic finance/ economics, or (perhaps worse), do know better but completely ignore their knowledge. Now, I'm not tell you to think either which way. I am a staunch advocate for people making decisions based on logic, facts, and REALITY. I'm not fussed what your opinion is, as long as it's based on reality. So please, if you're a newcomer jumping in to equities markets because of recent, all time highs (bar the past 2 days), where valuations are sky-rocketing all over the place, don't make any big financial decisions based on what DragonLord123 says in a reddit thread. You need to look beyond the flashing numbers on a screen and decide if those numbers are justified. I think it's absolutely no coincidence that so many finance experts seem to appear while markets are at record highs and there are eye watering valuations across equities markets. A whole host of people here have just received their fresh Finance degree from this mornings cereal box. After looking at stock tickers for 2 weeks and nothing else, they've decided now is the best possible time you could buy into equities and they're ready to advise others. Buy high, sell low, right? .....right? Everyone's man, their dog, and their grandma is piling into equities markets over the past month, just because prices have rocketed. Spoiler alert: that's a great piece of evidence that perhaps now, more then ever, you should think about what you're doing before you do it, and maybe get some real advice. When the shoeshiner is giving you stock tips, take a step back and consider the scenario. [link] [comments]  | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Warren Buffett calls Apple ‘probably the best business I know in the world’ Posted: 24 Feb 2020 05:51 AM PST | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Warren Buffett: Don’t 'buy or sell’ stocks on coronavirus fears Posted: 24 Feb 2020 09:27 AM PST Just wanted to put it out that for all fellow passive, index fund investors - Dont sell, we are meant to ride through dips even recession inducing ones. more indepth comments at https://www.cnbc.com/2020/02/24/warren-buffet-interview-live-updates.html and more https://finance.yahoo.com/news/warren-buffett-coronavirus-net-buyer-stocks-120743935.html Edit: I'm putting a personal anecdote here I have a friend who has a nice decent index investment plan going on for about 5 years now whose panicky husband is being a pain in the ass arguing with her daily to sell because the coronavirus is going to trigger a major recession. If your investment horizon is 30 years - this dip even if it's a few months or a year or a few years really doesnt matter. Edit 2: I'm removing my initial comment to maybe even consider buying stocks on discount as it's just creating more confusion and detracting from the main point which is basically for passive investors - dont sell. Just stick to the plan, buy at your regularly scheduled intervals and hold. None of this applies to active traders - you guys do you. Edit 3: also see this very wise comment https://www.reddit.com/r/investing/comments/f8un4b/-/finorbm [link] [comments]  | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Picking stocks based on personal consumption Posted: 24 Feb 2020 08:48 PM PST The other day someone mentioned to me that I was a bit frugal. That got me thinking about the relationship between my personal consumption and investment. I wondered whether it would be a good idea to invest in companies that I personally did business with. I figured that these companies would either have such a strong service/product or position in the market that a long-term investment would be justified. So I tested it. The first thing I had to do was determine the criteria which companies needed to meet to get a spot on my list. The following is what I decided upon:
After compiling a list of companies, I looked at the growth(or loss) they experienced over the last 5 years. In my model, I would invest approximately $1,000 into each of the listed companies, rounding to the nearest whole number to determine the number of shares purchased. For example, if I could buy 9.6 shares of $DIS with my $1,000 I would record an investment of 10 shares, while if I could buy 23.26 shares of $KO with my $1,000 I would record an investment of 23 shares. American Stocks (priced in USD)
We saw average annual growth of 35.85% on our American investment. By comparison, the $SPY index saw average annual growth of just 10.6% over this same period. Canadian Stocks (priced in CAD)
We saw an average annual growth of 7.16% on our Canadian investment. By comparison, the TSX Composite Index saw average annual growth of 3.06% over this same period. Observations In both Canada and the United States, the stocks chosen based my consumption crushed the market indexes they were compared against. The American stocks saw >3x greater returns than the $SPY while the Canadian stocks saw >2x greater returns than the TSX. Only one chosen stock in each market saw a decrease in value over the modeled period. Across both markets, nine stocks more than doubled their value. A majority(56%) of chosen Canadian stocks outperformed the Canadian market over this period. A majority(58%) of chosen American stocks outperformed the American market over this period. Guesses If I had to guess, I would attribute the success of the chosen stocks to any combination of the following:
I'd really like to hear some comments about this. Let me know what you think, maybe even try it for yourself! [link] [comments]  | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dow plunges nearly 1,000 points, gives up gain for the year Posted: 24 Feb 2020 09:58 AM PST | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Millions of Chinese Firms Face Collapse If Banks Don’t Act Posted: 24 Feb 2020 05:21 PM PST (Bloomberg) -- Brigita, a director at one of China's largest car dealers, is running out of options. Her firm's 100 outlets have been closed for about a month because of the coronavirus, cash reserves are dwindling and banks are reluctant to extend deadlines on billions of yuan in debt coming due over the next few months. There are also other creditors to think about. "If we can't pay back the bonds, it will be very, very bad," said Brigita, whose company has 10,000 employees and sells mid- to high-end car brands such as BMWs. She asked that only her first name be used and that her firm not be identified because she isn't authorized to speak to the press. With much of China's economy still idled as authorities try to contain an epidemic that has infected more than 75,000 people, millions of companies across the country are in a race against the clock to stay afloat. A survey of small- and medium-sized Chinese companies conducted this month showed that a third of respondents only had enough cash to cover fixed expenses for a month, with another third running out within two months. Only 30% of such firms have managed to resume operations due to a complicated local government approval procedure as well as a lack of employees and financing, a government official said at a press conference on Monday. While China's government has cut interest rates, ordered banks to boost lending and loosened criteria for companies to restart operations, many of the nation's private businesses say they've been unable to access the funding they need to meet upcoming deadlines for debt and salary payments. Without more financial support or a sudden rebound in China's economy, some may have to shut for good. "If China fails to contain the virus in the first quarter, I expect a vast number of small businesses would go under," said Lv Changshun, an analyst at Beijing Zhonghe Yingtai Management Consultant Co. Despite accounting for 60% of the economy and 80% of jobs in China, private businesses have long struggled to tap funding to help them expand during booms and survive crises. About two-thirds of the country's 80 million small businesses, including many mom-and-pop shops, lacked access to loans as of 2018, according to China's National Institution for Finance & Development. President Xi Jinping over the weekend pledged a greater focus on reviving the economy, with a more proactive fiscal policy, accelerated construction projects and freer reserves for commercial lenders to unleash more funding. Support from China's banking giants in response to the outbreak has so far been piecemeal, mostly earmarked for directly combating the virus. Industrial & Commercial Bank of China Ltd., the nation's largest lender, has offered relief to about 5% of its small business clients. In an emailed response to questions from Bloomberg News, ICBC said it has allocated 5.4 billion yuan ($770 million) to help companies fight the virus. "We approve qualified small businesses' loan applications as soon as they arrive," the bank said. As a group, Chinese banks had offered about 794 billion yuan in loans related to the containment effort as of Feb. 20, according to the banking industry association, with foreign lenders such as Citigroup Inc. also lowering rates. To put that into perspective, China's small businesses typically face interest payments on about 36.9 trillion yuan of loans every quarter. Stringent requirements and shortlists restrict who can access special loans earmarked by the central bank for virus-related businesses, while local governments and banks have imposed caps on the amounts, according to people familiar with the matter. A debt banker at one of China's largest brokerages said his firm opened a fast lane to ease debt sales by businesses involved in the containment effort, with borrowers required to prove they will use at least 10% of the proceeds to fight the disease. That's of little help to a car dealership. Brigita, whose firm owes money to dozens of banks, said she has so far only reached an agreement with a handful to extend payment deadlines by two months. For now, the company is still paying salaries. Many of China's businesses were already grasping for lifelines before the virus hit, pummeled by a trade war and lending crackdown that sent economic growth to a three-decade low last year. At most risk are the labor-intensive catering and restaurant industries, travel agencies, airlines, hotels and shopping malls, according to Lianhe Rating. Yang, a property manager of a seven-story mall in Shanghai, says a tenant who runs a 150-room hotel that's usually busy has called asking for a month's rent waiver after business dried up. She expects the massage parlor that rents space in the mall is also struggling and is open to extending some help. A deputy financing director at a small developer in central Anhui province said his firm is even being denied loans under existing credit lines. A drop in sales has hurt the company's credit profile and a dearth of new projects means there's no collateral to put up. Without access to credit, the business can survive for about four months, or maybe longer if some payments can be delayed, he said. Banks are hardly any better off themselves. Many are under-capitalized and on the ropes after two years of record debt defaults. Rating firm S&P Global has estimated that a prolonged emergency could cause the banking system's bad loan ratio to more than triple to about 6.3%, amounting to an increase of 5.6 trillion yuan. Wu Hai, owner of Mei KTV, a chain of 100 Karaoke bars across China, took to the nation's premier outlet of discontent, social media platform WeChat, to voice his despair. KTV's bars have been closed by the government because of the virus, choking off its cash flow. The special loans from the authorities will be of little help and no bank will provide a loan without enough collateral and cash flow, he said on his official WeChat account earlier this month. Wu couldn't be reached for a direct comment, but on WeChat he gave himself two months before he has to shutter his business. https://finance.yahoo.com/news/millions-chinese-firms-face-collapse-000000184.html [link] [comments]  | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 24 Feb 2020 05:55 PM PST | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| United Airlines and Mastercard suspend FY '20 Guidance Posted: 24 Feb 2020 02:44 PM PST United Airlines and Mastercard suspend FY '20 Guidance after hours today. Clearly have no idea what to expect in 2020. I'm sure CFO's are looking at revenues right now and trying to create patterns. [link] [comments]  | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| How did 2008 feel in the moment? Posted: 24 Feb 2020 06:41 PM PST Curious how people who were on the front lines of the market collapse in 2008 knew it was different from a normal swing in the market? Let me state, I don't think today was anywhere close to a Black Monday/sub prime/'29 crisis. Im just using it as a jumping off point for discussion, if you were working in securities/CDOs, at what point did you realize that what was happening was unusual and wouldn't bounce back in a few weeks time? [link] [comments]  | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 25 Feb 2020 12:14 AM PST Will inverse ETFs always return positive gains when the market goes down? For example one Australia inverse ETF says this "The fund invests in cash and cash equivalents and sells equity index futures contracts (ASX SPI 200 Futures). Selling these futures can typically be expected to generate a positive return when the S&P/ASX 200 Accumulation Index declines..." Emphasis mine. Is there a possible scenario where it wouldn't increase in response to a drop in the ASX value? I don't want to deal with shorting because investing in Australia is ridiculously shit. So buying an inverse ETF seems like a simple way to do it. [link] [comments]  | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 24 Feb 2020 02:17 PM PST
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| Fidelity, Schwab say some clients experienced technical issues amid 800-point Dow plunge Posted: 24 Feb 2020 08:53 AM PST | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| What do you think is the next big industry as we go into the 2020s Posted: 24 Feb 2020 04:49 PM PST | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| British fintech Revolut hits $5.5 billion valuation after funding round Posted: 24 Feb 2020 11:40 PM PST Digital banking app Revolut has raised $500 million in a fresh funding round, confirming the British-based business as one of the world's most valuable financial technology firms with a valuation of $5.5 billion. [link] [comments]  | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| What were the primary reasons behind the large stock market drop on Dec 24, 2018? Posted: 24 Feb 2020 07:51 PM PST It seems like every stock market news article claims to know "why" the stock went up or down. However most of it seems correlational at best, and there could easily be hidden factors they completely overlook. Does anyone have any good theories (preferably backed by data) as to why the stock market dropped so far on Christmas Eve 2018? [link] [comments]  | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 24 Feb 2020 05:33 PM PST How much are you bothered by a dip in the markets? We were just at all time highs.. a patient investor would not panic. Don't sell everything to go into gold... Just stay calm. Did you invest more than you are comfortable losing in the short term? Did you chase after gains on a meme stock? Are you a smart investor or are you just trying to get rich quick? How financially mature are you? Can you handle your portfolio going down? If you're investing wisely it's no big deal. Stay the course. When I first started investing it caused me real stress when my decisions didn't work out. I'm happy to say that dealing with financial losses helped me grow on my path to being mature about my investments. Now I don't sweat the day to day. Being a patient investor will bring much peace of mind over the long term. [link] [comments]  | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| $AMD drops 12 percent in 2 days and 5% pre-market Posted: 24 Feb 2020 06:09 AM PST | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 24 Feb 2020 07:58 AM PST Gilead stock rises as the World Health Organization points to its experimental drug, Remdesivir, as a possible coronavirus treatment. This spike is almost certainly temporary and premature, as the drug is still in trials, and quinine (an older antimalaria generic antiviral) is also possibly an effective treatment, according to WHO. There have also been concerns in the past 2 weeks that China may be maneuvering to steal the drugs IP from Gilead. [link] [comments]  | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Mac with ARM processor = Intel is going down Posted: 25 Feb 2020 12:04 AM PST I predict Intel stocks are going down in the coming months. They struggle for a long time with their own processors and when Apple finally uses ARM processors it would also be a huge signal for Microsoft to make the next step in the ARM direction. Intel will loose so much money one the way down, they don't have the financial power to come up again in the ARM section. Apple using ARM processor prediction: https://9to5mac.com/2020/02/24/apple-to-release-first-arm-mac-without-intel-processor-in-next-18-months-predicts-kuo/ (9to5mac) [link] [comments]  | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Class A common stock investment advice Posted: 25 Feb 2020 03:14 AM PST I bought shares in a company that offers class A common stocks, in their offering circular, and the rules of this type of stocks there is a limit of how much shares you can buy: you cannot invest more than 10% of your income or networth......however I did invest more than 10%(oops) I just recently realized that there was a limit, but the company still let me invest more than the limit, so my question is what should I do now? [link] [comments]  | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Question about short term investing in Canada regarding taxes and potential gains offset by taxes? Posted: 24 Feb 2020 11:12 PM PST Just a quick question about say investing 2.5k into Coca-Cola (KO ticker) for 6 months. With a short term investment in a stable company where I can reasonably expect the company to slightly increase in value would any profits I would see from this within six months be offset by taxes to the point that I actually come out with less than the 2.5k that I started with or can you only be taxed on the profit made from the 2.5k? For example if my 2.5k investment became worth 3k in 6 months and I took it out would I only be taxed on the $500 profit or would I be taxed on the 3k as a whole? [link] [comments]  | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 24 Feb 2020 07:15 PM PST |
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