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    Sunday, March 22, 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: 22 Mar 2020 05:12 AM PDT

    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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    Amazon CEO Jeff Bezos asks laid-off workers from BARS and RESTAURANTS to come join the company . Amazon has also raised overtime pay for us workers . Bezos says " Things are gonna get much worse " .

    Posted: 22 Mar 2020 05:10 AM PDT

    Where are all my Dollar Cost Averagers?

    Posted: 21 Mar 2020 10:08 PM PDT

    Prior to shit hitting the fan, DCA was like the Bible around here, and rightfully so. It has been proven in more posts, blogs, etc. than I can count as a diversified, relatively safe way to reach respectable long-term YoY gains.

    I will assume everyone is familiar with the concept.

    Now it seems everyone in this subreddit has changed their strategy - most seem to be shorting or waiting - or those who are still DCAing are just staying quiet.

    I understand the fear. I get the temptation to find the bottom, or to short. But let's take a step back and realize at the end of the day, as retail investors, we just are not privy to information on an institutional scale. Everyone knows about the Coronavirus, and everyone with half a brain knows it's going to get worse, and it's going to affect the economy (see: already is). The question is: is this priced in? Do the valuations of stock represent an accurate depiction of the expected future cash flows? How drastic will the impact actually be? What are the macroeconomic effects, both short and long-term? How will this change life as we know it?

    All these questions are beyond the scope of 99% of retail investors, myself included. I know this is a bad situation, and I know it's going to get worse - but so does everyone else. Who's to say we're not already at the bottom? Who's to say we're properly priced in now? I'd venture to guess most people claiming it's going to get worse and to wait to buy have never run a DCF model in their life.

    DCA works because it removes emotion from investing. I put in some this past Monday, and will do the same on my set date in a few weeks, no matter what happens between now and then. Y'all can continue to short and wait, but just know that there is a probability that things get better from here, and the premium on the options you're paying - or the gains you miss out until you realize things have turned around - are priced in to your purchase into that option or approach.

    submitted by /u/FreemanRuinedSeasons
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    What is Warren Buffett doing?

    Posted: 21 Mar 2020 10:57 AM PDT

    Warren Buffett's company was sitting on $128 billion in cash at the end of 2019. He's in the perfect position to buy at a discount. Is he buying like crazy and we just don't know it yet? Or is he holding off buying because he's expecting prices to drop a significant more?

    submitted by /u/anotherfakeloginname
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    Collaborative "Corona stocks" spreadsheet list - Improvements welcome

    Posted: 21 Mar 2020 08:32 PM PDT

    A part of my strategy is to allocate a small percent of my portfolio on some stocks that could have great return because of the current corona crisis situation. I've made a collaborative spreadsheet with stocks that will potentially make great returns

    Feel free to reorganize, add your stock , comments. it's in free edit mode, so everyone can contribute.

    Link to the spreadsheet

    🙏 Edit: I'm staying awake to keep the spreadsheet clean and avoid people to miss-edit things. anyone interesting in helping me please Direct message me

    submitted by /u/bledfeet
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    If there is a bailout for the airline and cruise industry (amongst others), how is it possible that while the companies don’t go bankrupt, shareholders can go to 0?

    Posted: 21 Mar 2020 10:40 PM PDT

    Federal Reserve to Lend Additional $1 Trillion a Day to Large Banks — https://www.pbs.org/newshour/economy/federal-reserve-to-lend-additional-1-trillion-a-day-to-large-banks

    Posted: 21 Mar 2020 02:36 PM PDT

    Can we talk about credit crunches in both corporate debt and repo markets and the effect on exponentially increasing recession?

    Posted: 21 Mar 2020 07:28 PM PDT

    All day I see post after post talking about the corona virus recession and people are already discussing what to start buying. Am I the only one who thinks this could be just the tip of the iceberg and we could be sitting on the edge of a MUCH larger economic and financial crisis? Is there a thought that the markets have priced in the above mentioned risks? Explain like I'm Five if you must but please, let's talk about this.

    submitted by /u/nthanharris
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    Panic buying, lockdowns may drive world food inflation - FAO, analysts

    Posted: 21 Mar 2020 11:27 PM PDT

    Where do you get your macro data sources?

    Posted: 21 Mar 2020 11:41 PM PDT

    As a current student in debt with not a lot of funds, I have no access to Bloomberg terminals, but do have access to some paid databases.

    What would you suggest to be good sources for macroeconomic data, preferably free? Open to paid suggestions too as I may have them in my school database!

    For example, I was watching the Big Short and was wondering how Michael Burry had all of his information. Where did he get those paper-bound books on securities such as bonds, and such intricate data on default rates within each mortgage within each bond?

    submitted by /u/darealgeezer
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    I found this doc on 1929 to be a useful retrospective

    Posted: 21 Mar 2020 07:44 PM PDT

    https://www.youtube.com/watch?v=FAZjlxWNszw

    Unsurprisingly there's a lot of parallels to our current situation. An era of new technologies, purchased on credit by workers whose wages remain unchanged. An ever widening wage gap. A manipulated market that seems only to move up, eventually disconnecting from the fundamentals of the underlying economy. A surge in volume as people buy in on margin. A president that vows not to interfere with business. Some things never change.

    One interesting difference was that back in the 20s it was the bankers that stepped in to provide credit/liquidity to keep the market moving up because the fed refused to do it.

    Anyway, now that this record long bull market has met the mother of all downturns, I think everyone needs to brush up on their history because we can't use 2008 as a precedent.

    submitted by /u/bingo_bango_zongo
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    Fed bailing everyone out: do you expect above-average inflation? I certainly do.

    Posted: 21 Mar 2020 07:53 PM PDT

    I'm expecting deflation on used consumer goods, (I buy most things used [within reason] on eBay/Craigslist), automobiles and real estate. I expect inflation on general consumer goods, with the actual rate of inflation above average due to all of the money the Fed has to print to bail everyone out.

    submitted by /u/ConsistentCell1
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    Want a little input investing $10k I can afford to lose.

    Posted: 21 Mar 2020 10:30 AM PDT

    Here's the deal:

    Worked at a warehouse (Amazon) for a little over 3 years.

    Managed to save over $50k so far.

    I've been wanting to invest for some time, and given the way the market is looking due to the pandemic (COVID-19), I feel now is a better time than any to get started.

    My job has given me a couple of free stock that's being "managed/held" by Morgan Stanley. I plan on keeping these long term.

    I've been doing some research on where's best to invest (i.e. ETFs, Index funds, Options, mutual funds, etc.).

    My plan right now is to take $10k that I have in cold hard cash (I don't keep my money in a bank - this might not be the best thing) and put it in the bank (Chase). I know Chase has a You Invest Now option for investing but I don't know if I'll use it.

    I then plan on opening a brokerage account first with Fidelity because I feel it's a great all-around broker for beginners. I've read about TOS, IB, Schwab, and some of the others but I feel fidelity is a great start. If anyone has any reason why some of the others are better than Fidelity please tell me why.

    I also want to get into trading options - not right away - so I thought about opening an account with tastyworks.

    I'm looking to make both short-term (aggressive) and long-term (conservative) moves.

    I really want to take advantage of the market right now, and I feel I can stand to risk/lose about 5-10k.

    What do you think?

    Detailed advise is much appreciated.

    submitted by /u/e3b5
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    Which Chinese companies produce protective gear / masks?

    Posted: 22 Mar 2020 06:14 AM PDT

    I just found out that 2 planes arrive in Austria with Chinese gear to fight the virus.
    Which Chinese companies export those goods currently? Any public ones I could invest in?

    submitted by /u/stvaccount
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    Moved tax day affect on IRA contribution?

    Posted: 21 Mar 2020 12:42 PM PDT

    With tax day officially moved to July 15th does this mean extra time to contribute to an IRA for 2019? Since any contributions can count towards last year if done before tax day, does this mean I'll have a longer opportunity to contribute?

    submitted by /u/Recon14193
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    The Dow is on pace for its worst month since the Great Depression, but here’s why all hope isn’t lost amid the coronavirus stock rout

    Posted: 21 Mar 2020 02:46 PM PDT

    What to do when I’m older to keep my 401K safe from something like this?

    Posted: 22 Mar 2020 06:27 AM PDT

    I'm 30, so this crash isn't going to bother me by the time I retire, but if something like this happens when I'm older, it could.

    Up until a few months ago I had 100% of my 401K in stocks.

    • 34% Large Cap Vanguard
    • 33% Med Cap Vanguard
    • 33% Small Cap Vanguard

    I posted a few months ago about minimizing risk as I got older and wanted to take 20-30% of my 401K and move it into bonds.

    I wanted to do this to follow the 110 minus your age (30 in my case) with the final result being 80...which is the percentage I should have in stocks in my 401K.

    Luckily, I made that move a few months ago and everyone was getting on me for trying to "time" the market...but I essentially want to avoid risk as I got older.

    A lot of 50-60+ people are getting destroyed right now in the market. To me, this is a life lesson I want to learn from now, to protect myself from something like this when I get older.

    As you can see, even though I thought I was being safer, my 401K is still getting destroyed.

    What should I be doing as I get older to avoid risking my 401K from this type of crash?

    submitted by /u/ghsNICK
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    What signs would you watch for as a leading indicator of inflation/reversal of the USD demand trade?

    Posted: 22 Mar 2020 06:19 AM PDT

    Across the board CB expansion to satisfy USD demand, and a general removal of underperforming assets we know is inflationary (QE raises the long end). This leads to a significant increase on the asset side of balance sheets (banks, hedge funds...). What moves that cash into the market though? People getting back to work, optimism turning into exuberance?

    Broad UBI hitting the streets, obviously inflationary.

    Supply restrictions also inflationary (but it does look like China is picking back up production (disinflationary)).

    Lastly, Stagflation on the horizon?

    submitted by /u/erikyouahole
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    What broker is more suitable ?

    Posted: 22 Mar 2020 03:49 AM PDT

    Best broker for long therm investing for a big amount of money (not day trading but rather holding)

    Interactive broker, TD amitrade, DeGiro,... ? Thanks

    submitted by /u/Clipz_glOBOXx
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    (article) Silver prices in uncharted waters as they decouple from gold

    Posted: 21 Mar 2020 10:31 AM PDT

    https://smallcaps.com.au/silver-prices-uncharted-waters-decouple-gold-ratio/

    Interesting premise.

    I'm more willing to believe that gold is going through a bubble more than that silver is undervalued. May be a smart move to transfer gold into silver if that's true.

    submitted by /u/nolan1971
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    How can I buy intel stocks with leverage?

    Posted: 22 Mar 2020 05:08 AM PDT

    Like the title says :) What is the best platform to do that?

    submitted by /u/RelativeDragonfly0
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    How can governments afford all of this economic stimulus? How will they pay for it?

    Posted: 21 Mar 2020 03:16 PM PDT

    Spending in governments across the world is ballooning, with many governments considering legislation to pay workers directly for their lost wages.

    Obviously a tax increase would be the first option on how to pay, but governments have been cutting taxes to stimulate the economy, will taxes then skyrocket after the crisis?

    submitted by /u/loganpaulsucks1
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    What were the early indicators that the 2008 crash was over?

    Posted: 22 Mar 2020 06:40 AM PDT

    There was a turning point so where would one look to see the like this time?

    submitted by /u/plawwell
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    Can non American report to SEC?

    Posted: 22 Mar 2020 06:30 AM PDT

    I want to report eToro to SEC, I am not American nor resident in the US. Can I still report it to the SEC for investigation?

    submitted by /u/kxa5
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    is Bill Ackman the new COVID-19 crusader?

    Posted: 22 Mar 2020 06:28 AM PDT

    What's going on with the guy? his tweeter feed is full of COVID-19 charts? massive shutdown recommendation etc.

    submitted by /u/crosmaxal
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