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.
- Macau's gaming revenues tumble 87.8% in February over coronavirus impact
- Am I the only one thinking I'd rather have a recession caused this virus, than the alternative?
- Too many people asking what is safe...here's your answer.
- Sold stock in a private company that got acquired, a little confused about the process
- WSJ: The invisible forces exacerbating market swings
- Saudi Aramco shares hit lowest since IPO, down over 2%
- On one side, we got the report that China PMI sunk to a level that’s significantly worse than expect, on a historical level. On the other hand, it is also reported that factory activity in China has been around (or possibly restored to) 60%, instead of the 30% estimated by analyst. Any thoughts?
- Impact of Interest Rate Cuts on Demand Shock vs Supply Shock
- LDP: building diverse portfolios with hrp
- Should I buy leveraged ETFs as the market goes down?
- Thoughts on the future of ride sharing/ self driving cars and who has exposure?
- How do I play the ballon risk tolerance game?
- WHO chief on coronavirus: Global markets 'should calm down and try to see the reality'
- UK Online Investment Broker Recommendations
- How do you best capitalise on the virus outbreak?
- What are some stocks other than Big tech companies to add to a portfolio.
- Why are BRK.A & BRK.B falling in sync with the rest of the market?
- Is ING weekend Wall Street accurate?
- Work at a fancy NYC law firm. There's a Bloomberg Terminal and I have subscriptions to (CapitalIQ, Intelligize, etc). How do I best take advantage of these resources?
- Should you encourage others to invest if it means they'll spend less money on things they dont need to invest instead?
- Post time posting a thread (loan officer)
| Daily Advice Thread - All basic help or advice questions must be posted here. Posted: 01 Mar 2020 04:14 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:
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! [link] [comments]  |
| Macau's gaming revenues tumble 87.8% in February over coronavirus impact Posted: 01 Mar 2020 01:15 AM PST |
| Am I the only one thinking I'd rather have a recession caused this virus, than the alternative? Posted: 29 Feb 2020 12:12 PM PST I think because of the great recession in '08, when people hear about a coming 'recession' they think it will basically be a collapse like the last time. In reality, a recession is literally just 2 consecutive quarters of negative GDP growth. Now since we have to assume bull markets and awesome economies can't last forever, something will eventually have to cause a recession. Often times, such as the great recession and great depression, it's caused by unmitigated greed and delusion. Then the delusional euphoria for 'no reason' is followed by people shutting down (financially) because of fear, and no other reason. Things are great and then all of a sudden things collapse when delusion reaches a maximum. In that case, it's a self fulfilling prophecy. When confidence returns, and all the nonsensical businesses are purged, things can return. BUT, say we get a recession because of this virus. Would that even be surprise at all? Obviously people are going to not want to go outside, or buy a new car for a trip they no longer want to go on, and suddenly people are more concerned with staying healthy than having the latest new dumb gadget or fancy clothes. It's a recession that has a reason. And I think it will be a lot easier to swallow for the general public. Like, "of course we had a recession, no one was buying anything because of the virus!" But I'd argue the result is the same. The crappy unnecessary businesses and products will fail because they can't sustain themselves through any significant downturn, and the higher quality stuff remains. But once things cool down, like if we get a vaccine after a year, it's possible we'll come out of the other end with the benefits of having the fat cut, but way less uncertainty, and dare I say optimism. There will be a light at the end of the tunnel so to speak. I don't know if I really have a point, I was just wondering what thoughts everyone else had and it might make a good discussion. Edit: Title should say "caused by this virus" [link] [comments]  |
| Too many people asking what is safe...here's your answer. Posted: 29 Feb 2020 01:25 PM PST Nothing is safe in this market, except for the one thing that is safe. Treasuries. Yes, the yield has lowered, but demand has gone through the roof. You don't have to physically go out and buy notes to get a return on this. Many ETF's are out there and are growing rapidly as the market collapses. $GOVT is one example of a Treasury ETF that is doing well. Not only do you gain a dividend, but you also gain value in the market. Guess what else, they don't collapse when the market goes back up, so you don't have to worry about timing the market as it recovers. For those of you who feel the need to gamble some of your money like me, the low volitility also makes options on these very cheap. $27 6/19 calls are very cheap, and likely to break even by next week and don't expire for another 4 months. I only have a small amount of money in the options, most of it is in the ETF, but screencapped some of my earnings for reference. http://imgur.com/gallery/wqz1oJ6 Here is a simplified excerpt from Investopedia that explains this a bit better than I can. https://www.investopedia.com/articles/08/recession.asp Specifically the section where it states this... "Fixed-Income Recession Strategy Fixed-income markets are no exception to the general risk aversion of recessionary environments. Investors tend to shy away from credit risks, such as corporate bonds (especially high-yield bonds) and mortgage-backed securities (MBS) since these investments have higher default rates than government securities. As the economy weakens, businesses have a more difficult time generating revenue and profits, which can make debt repayment difficult and, in the worst-case scenario, lead to bankruptcy. As investors sell these risky assets, they seek safety and move into U.S. Treasury bonds." [link] [comments]  |
| Sold stock in a private company that got acquired, a little confused about the process Posted: 29 Feb 2020 05:19 PM PST Hi, Just to give a bit of background, I had a previous post that I got a lot of very helpful responses on--thank you--definitely related because it is the same company , but the previous endeavor fell through: https://www.reddit.com/r/investing/comments/c1d91t/private_company_asking_to_repurchase_shares_prior/ I got a merger agreement this time w/ a letter of transmittal and w9 request. I signed it and got money wired. The amount wired matches-almost precisely-the 'valuation' of the company listed in the merger doc, but not the estimated per share compensation (listed as well, nearly 25% more). I was a little confused about this as I was expecting that estimated price (Which the doc seemed to indicate was pretty much just due to odds and ends beyond the settled acquisition price), and not sure if there had been witholding, or there is still money in the holdback fund (which was stated as about 12% of the purchase price), so I emailed the lawyer who was handling this and asked if i would be getting some statement on the trade, if there had been any witholding, and if the holdback had been dispersed, but ended up getting bounced around between other lawyers and bankers. The result was that so far they have avoided answering these questions other than letting me know I'll get a 1099 form at year's end. One banker noted he could send me a note on the bank's letterhead that would list the ' share type, quantity of shares and payment amount' (but not the per share price). I said sure--haven't received it yet, but it doesn't sound like it is going to be the information I'd like, as I can deduce that from the wire and my share certificate. From my perspective it seems a little unusual. When I sell stock on etrade I always get a trade confirmation right away. When I get stock through my company and some is sold for taxes, i get a statement on that as well. If I need to pay estimated taxes to avoid an underpayment penalty, it is kind of critical to know what my gains are before the end of the year. So I guess I am asking if I am legally entitled to get the specific details of this transaction? thank you [link] [comments]  |
| WSJ: The invisible forces exacerbating market swings Posted: 29 Feb 2020 10:08 AM PST https://www.wsj.com/articles/the-invisible-forces-exacerbating-market-swings-11582804802 Sharing this article because it's a very good high level view on the behavior of markets over the past 2 years. The TLDR is that options activity has become more and more prevalent in markets. This is caused by search for alternative strategies to increase yield in a very low yield world. The problem of course is that this leads to more dramatic shifts in market behavior in shifting from low volatility grinding higher "ignoring" bad news to sudden volatility shocks as market makers get forced to hedge their short put positions by selling (shorting) equity positions. This is the basic reason why markets seemed to not be reacting at all to coronavirus fears through most of February, only to see a sudden shock downward as the market moved enough to force this shift in behavior. [link] [comments]  |
| Saudi Aramco shares hit lowest since IPO, down over 2% Posted: 01 Mar 2020 01:13 AM PST |
| Posted: 29 Feb 2020 11:09 AM PST On one side, we got the report that China PMI sunk to a level that's significantly worse than expect, on a historical level. On the other hand, it is also reported that factory activity in China has been around (or possibly restored to) 60%, instead of the 30% estimated by analyst. Any thoughts? [link] [comments]  |
| Impact of Interest Rate Cuts on Demand Shock vs Supply Shock Posted: 29 Feb 2020 12:41 PM PST I don't think we're on the cusp of another Great Recession and after reading these two paragraphs (quote below), I wonder if further rate cuts will really move the needle for the economy. Basically, the Fed (and PBOC et al.) can further flood the market with even more cheap money, and with less consumables available (thanks beer flu, manufacturing slowdown, etc.) and consumer confidence being a big factor in propping up the economy, will further rate cuts really help? With the 11% slide of the S&P in the last seven sessions, and the markets betting that a 25-50 basis point cut is almost a guarantee, rate cuts seem like they're bound to happen. I just question the efficacy of lower rates in a supply-shocked economy - though, it may be great for the stock market in the near term. But 1-2 years...? I know there are a lot of factors to consider and am genuinely curious on everyone's take. Quote:
Source: https://www.nytimes.com/2020/02/28/business/economy/coronavirus-economy.html [link] [comments]  |
| LDP: building diverse portfolios with hrp Posted: 01 Mar 2020 03:38 AM PST https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2708678 Real Quant stuff for those interested. [link] [comments]  |
| Should I buy leveraged ETFs as the market goes down? Posted: 29 Feb 2020 04:25 PM PST I have some money (not much) sitting in my Roth IRA, and I want to buy something as the market drops. I can afford to wait a long time before selling, so it doesn't matter if the ETF goes down before coming back up. Should I buy leveraged ETFs? Why or why not? If so, which ones do you recommend? [link] [comments]  |
| Thoughts on the future of ride sharing/ self driving cars and who has exposure? Posted: 29 Feb 2020 08:58 PM PST You were all a huge help when I asked about selling covered call options so I wanted to run another idea by this community. I think that 20 years from now ride sharing and autonomous vehicles will be the norm, I'm sure I am not the only one. So how do I gain exposure to this market? The obvious choices are Uber, Lyft, Tesla and Alphabet. I'm going to start build positions in the first 3, but not Alphabet because autonomous driving is a relatively small portion of Google's business. So the question is, what other companies have exposure to this market and stand to gain as these technologies become the norm? This is going to be a buy and hold for 10+ years strategy so I'm not worried about short term risks, just where they end up in the long term. [link] [comments]  |
| How do I play the ballon risk tolerance game? Posted: 01 Mar 2020 04:22 AM PST I'm trying to figure out what is the best strategy to play this game. The task involves earning income by inflating a ballon. The large you pump the ballon the higher your return will be but if you don't cash your earnings before the ballon randomly bursts you will lose all your money for that round. So you also have to manage the risk of a ballon popping. Having played the game many times, I feel like it's better to go for quality versus quantity meaning suffer many small losses at the expense of large returns. In practice this will be you pumping the ballon as large as you can until you get large returns and store those). But an alternative strategy is to take lots of small returns as you don't know when the ballon will pop thus don't want to risk losing your potential earnings. Which strategies would you advise to go with? [link] [comments]  |
| WHO chief on coronavirus: Global markets 'should calm down and try to see the reality' Posted: 01 Mar 2020 12:08 AM PST |
| UK Online Investment Broker Recommendations Posted: 01 Mar 2020 03:37 AM PST I have been getting into investing money to hold long term and am using a particular UK online investment broker. Not going to name them because I'm wondering if this sub has enough people from the UK to offer opinions on the available brokers for UK residents. I'm not unhappy with them and I'm fairly sure most of their fees will be similar but without having used their interfaces etc I don't have a good idea of the differences between their offerings. Any informed opinions would be great. [link] [comments]  |
| How do you best capitalise on the virus outbreak? Posted: 01 Mar 2020 03:36 AM PST Thinking of buying index CFDs on Monday open, what are your takes, there are definitely some money to be made or to hedge [link] [comments]  |
| What are some stocks other than Big tech companies to add to a portfolio. Posted: 29 Feb 2020 01:32 PM PST I am building a portfolio and will obviously have stocks like apple and amazon and nvidia, amd, tesla, msft, etc. but I need to diversify and I don't know what to diversify with [link] [comments]  |
| Why are BRK.A & BRK.B falling in sync with the rest of the market? Posted: 29 Feb 2020 03:53 PM PST Probably a very dumb question, but... [link] [comments]  |
| Is ING weekend Wall Street accurate? Posted: 29 Feb 2020 08:24 PM PST I saw someone mention that Dow futures are down over 600 points according to ING. But futures are closed until tomorrow night. Is that number even accurate? [link] [comments]  |
| Posted: 29 Feb 2020 10:34 PM PST Like the title says. I'm a transactional lawyer at a NYC biglaw firm. I have about 1.5x my salary in a Roth that I invest in equities and occasionally options. I also pay attention (IE, am intellectually interested in, but not interested in trading) to restructurings/distressed/special situations. There's a Bloomberg Terminal on my floor that I've never seen anyone use and we have a bunch of subscriptions to Capital IQ, Intelligize, CovReview, Reorg, etc. How should I go about using these to my advantage? How would you use these resources if you had access to them? I already had a Bloomberg rep come in and give me a tutorial for an hour on how to use the Terminal. [link] [comments]  |
| Posted: 29 Feb 2020 08:56 PM PST and the earnings of companies go down if everyone adopted this mindset? [link] [comments]  |
| Post time posting a thread (loan officer) Posted: 29 Feb 2020 11:58 PM PST Hello everyone, first post time. I was wondering if this was a great time to post this since I've been in the industry for 3 years. 2 years as an Underwriter and 1 year as a sale. I work for loanDepot and not selling anything just giving you info. As home prices goes up and you plan on living there. You might was well cash out and take as much lender credit as you can get from a lender. That means taking a higher rate to cover prepaid. Than after you close that cash out loan you can do a rate and term and get into the 3 if not lower with another company. You can't refi we with the same company because (lender) they have pay an EPO (early pay off) if you were to refi with another lender. within 120 days. I say take the lowest rate and get the most lender credit pay off bills and your credit score going to be 740 or higher hopefully than do a rate and term refinance. I did that too one client and he went from a 4.5 cash out to 3.25 rate and term. Sorry if it was confusing, let me know if you have any question. :) [link] [comments]  |
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