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.
- US 1 Month treasury just went negative
- Airlines, UPS, FedEx promise zero dividends and no share buy backs for $29b in aid
- Coca-Cola (KO) hit an almost 7 year low today. Why is it getting hammered more than others in its industry?
- NYU Stern Professor Asawath Damodaran gives his analysis of the current market
- The US dollar may just be consolidating before another surge upward.
- Gold gains more than $80 an ounce to mark largest daily dollar climb on record
- Recent events in oil geopolitics.
- Exxon (XOM) hasn't seen this low since Feb 1998
- Video: Damodaran looking beyond the crisis (Viral Market Update #4)
- China's economic slowdown and nascent recovery in charts
- Reuters: PG&E utility to plead guilty to involuntary manslaughter over 2018 fire
- who thinks house prices will tank, particularly in seattle?
- Reuters: SoftBank plans $41 billion of asset sales to expand buyback and cut debt
- If QE and Fed stimulus works to help the economy during times of recession/depression, why not just do it all the time?
- ELI5 - Printing money, adverse effects
- Drawing credit lines vs issuing bonds
- Why is VPU (Vanguard Utilities ETF) considered a high risk investment?
- As India shuts down, are there any big companies reliant on outsourced help centers that could tank?
- Which companies do you think are oversold?
- What are the pros and cons of LEAPS vs leveraged ETFs, in terms of implied financing cost, leverage decay, etc?
- Interesting to see what everyone’s living room/home office looks like that work at CNBC/Bloomberg
- Gold prices going up
- Option question
| Daily Advice Thread - All basic help or advice questions must be posted here. Posted: 24 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:
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]  |
| US 1 Month treasury just went negative Posted: 23 Mar 2020 08:21 PM PDT |
| Airlines, UPS, FedEx promise zero dividends and no share buy backs for $29b in aid Posted: 23 Mar 2020 08:46 AM PDT If the corporations who signed the letter do get at least $29b in government aid, and do follow-through on their promise, it seems the stock prices could drop quite a bit. It seems value to the shareholders, especially any investors for retired persons who depend on the dividends, is shot until the "loan" is paid back. The only way I can calculate a fair price for the stock is by using the FCFE method as the Dividend Discount Model with buybacks would give an answer of $0. What are people's thoughts on if this goes through and what will happen to the stocks of those companies in the letter? [link] [comments]  |
| Posted: 23 Mar 2020 01:09 PM PDT |
| NYU Stern Professor Asawath Damodaran gives his analysis of the current market Posted: 23 Mar 2020 06:15 PM PDT https://www.youtube.com/watch?v=Q_ZFRyeN_iU Highly recommend people watch his videos. [link] [comments]  |
| The US dollar may just be consolidating before another surge upward. Posted: 24 Mar 2020 03:32 AM PDT https://www.cnbc.com/2020/03/24/us-dollar-to-test-105-against-basket-of-currencies-says-analyst.html 'Khoon Goh, head of research at Melbourne-based ANZ Bank, thinks the greenback will rise to 105 on the dollar index in the short term. As of Tuesday it stands near 102, and last was at 105 in late 2002. "The swap lines will help to some extent. However, it is unlikely to be sufficient given the extent of dollar demand. From a technical perspective, the dollar looks overbought, so some consolidation can be expected. However, this is likely just a pause before another push higher," Goh told CNBC in an email.' [link] [comments]  |
| Gold gains more than $80 an ounce to mark largest daily dollar climb on record Posted: 23 Mar 2020 11:23 AM PDT Gold futures rallied on Monday, sending prices up by more than $80 an ounce, or 5.6%. That marked the biggest daily dollar climb for the most-active contact, based on records dating back to 1984, and largest one-day percentage rise since March 2009, according to Dow Jones Market Data. Weakness in the dollar, which dropped in the wake of the Federal Reserve's decision to purchase an unlimited amount of Treasurys and securities to support the financial market, provided a boost for the precious metal. April gold GCJ20, 5.059% rose $83, or 5.6%, to settle at $1,567.60 an ounce. [link] [comments]  |
| Recent events in oil geopolitics. Posted: 23 Mar 2020 01:39 PM PDT So just another oil update here. Things seem to be coming to a head quickly as major oil refiners like Exxon are opting to reduce refinery output. This might prove problematic for Saudi Arabia's strategy of flooding the market with oil as there's literally no one to buy it and their decision to reserve a huge number of tankers has made freight rates too expensive. Additionally so far there has been no increase in product supplied out of Saudi Arabia, which is technically in line with their guidance and maintenance of the prior cut agreement but might is bringing some doubt about their willingness to follow through. Article: https://www.reuters.com/article/us-oil-saudi/despite-opec-deal-collapse-saudi-oil-exports-yet-to-rise-sources-idUSKBN21A321 Additionally Russia might already be backtracking a bit from their previously aggressive posture about immediately raising production in April. Saudi Arabia and the United States are also in talks to find some other way to stabilize the oil market which might include an alliance between the two: https://www.reuters.com/article/us-global-oil-usa-saudi/u-s-saudi-alliance-one-of-many-ideas-being-discussed-u-s-energy-secretary-idUSKBN21A2WW We're still early into this by any measure but it does seem like it's less and less likely that anyone has the resolve or really the ability to actually hike output in the current demand environment. I suspect we might see everyone reapproaching the table sooner than expected if the US can get shale producers to reduce output by even 5-10% which they might be doing anyways at this point given the cuts to capex budgets and layoffs we've already seen. Things could fall apart again tomorrow but it does seem like there's some reasons to believe this might not end up being quite as bad as previously threatened at this point. [link] [comments]  |
| Exxon (XOM) hasn't seen this low since Feb 1998 Posted: 23 Mar 2020 01:57 PM PDT Never in my life have I seen such an important, well managed, and successful company tank so much so quickly. A global pandemic with a simultaneous price war between two juggernaut oil producers? What kind of bullshit is this. This isn't like pets dot com or jds uniphase back in 1999. We are talking Exxon here. Even electric utilities are getting hammered. I am not giving away my shares at these prices, no way. [link] [comments]  |
| Video: Damodaran looking beyond the crisis (Viral Market Update #4) Posted: 23 Mar 2020 07:08 PM PDT https://www.youtube.com/watch?v=Q_ZFRyeN_iU Summary:
[link] [comments]  |
| China's economic slowdown and nascent recovery in charts Posted: 23 Mar 2020 09:34 PM PDT FT China economic activity index https://ig.ft.com/autograph/graphics/china-economic-activity-indicator.svg?frame=webM FT China subindices https://ig.ft.com/autograph/graphics/china-economic-activity-indicator-subindices.svg?frame=webL Shanghai composite stock index stood at 3115 on Jan 13 before China shutdown. Then it fell to a short term bottom of 2746 on Feb 3, recovered to 3071 on March 5, before plummeting past it's nadir now (2660 right now on March 23). Perhaps we'll see parallels in the US stock market reaction to the scattered lockdowns and economic data to come (sustained dead cat bounce from its brief bottom of sub 2200 in ES futures last night, followed by a plunge below 2000 on the SP500 in a couple weeks) see also: https://www.ft.com/coronavirus-latest [link] [comments]  |
| Reuters: PG&E utility to plead guilty to involuntary manslaughter over 2018 fire Posted: 23 Mar 2020 09:27 AM PDT
[link] [comments]  |
| who thinks house prices will tank, particularly in seattle? Posted: 23 Mar 2020 02:35 PM PDT |
| Reuters: SoftBank plans $41 billion of asset sales to expand buyback and cut debt Posted: 23 Mar 2020 09:32 AM PDT
On a side note, Saudi Arabia was a major investor of Softbank's funds:
[link] [comments]  |
| Posted: 23 Mar 2020 11:12 AM PDT |
| ELI5 - Printing money, adverse effects Posted: 24 Mar 2020 05:17 AM PDT Can someone elaborate on the result of printing too much money? My understanding is that it will cause a rise in prices for the not-so-distant future. What other adverse effects are there? On the fed, the banks, and the individual. How does it affect trade? [link] [comments]  |
| Drawing credit lines vs issuing bonds Posted: 23 Mar 2020 08:30 PM PDT Many companies are drawing down their entire credit lines to raise cash to sustain them through this crisis. It seems there are three ways for companies to raise cash right now: 1) Draw down credit lines 2) Bailout 3) Bond issuance I'm wondering why we haven't heard of anyone doing #3. #1 would probably be the cheapest and fastest, so they've done it. #2 will likely have burdensome strings attached. Why haven't I heard of anyone doing #3? For example, why is Boeing asking for a bailout over issuing bonds? I understand the bond market is pretty seized up right now, but what are the other reasons companies aren't using it as an avenue to survive? I don't know how long it takes for a company to go through the process of issuing new bonds so maybe it's not an option. What am I missing? [link] [comments]  |
| Why is VPU (Vanguard Utilities ETF) considered a high risk investment? Posted: 23 Mar 2020 07:48 PM PDT I am a newbie investor, but I have been learning more about the financial world as of late. It was my understanding that, in general, utility companies are seen as lower risk, low growth, high dividend yielding companies. That information seems controdictary to the fact that over the past 10 years, this ETF has yielded 12% annualy, and vanguard classifies it as a high risk investment. It isn't leveraged, and the companies that are held would probably qualify as large cap utility companies. That specific ETF is getting crushed right now, but most stocks are in general. So, is my understanding about utility companies incomplete or wrong? A quick google search on this topic iterates my initial understanding. What am I missing, and what do you think about utility ETFs in general? [link] [comments]  |
| As India shuts down, are there any big companies reliant on outsourced help centers that could tank? Posted: 23 Mar 2020 12:17 PM PDT |
| Which companies do you think are oversold? Posted: 23 Mar 2020 06:40 PM PDT Thought we could have a fun little game and see which one of us are right in a few quarters or a year or so. I think KO is oversold right now. They haven't hit lows like this in years. Coca Cola has been a solid company. After all this blows over my expectations is it will bounce back up, regardless on whether there is a recession or no. Yes much of their sales were driven by amusement parks and theaters which WILL be hit if a recession hits. But I think they will go up from their current numbers. [link] [comments]  |
| Posted: 23 Mar 2020 12:22 PM PDT What are the pros and cons of LEAPS vs leveraged ETFs, in terms of implied financing cost, leverage decay, etc? Has anyone backtested this? Would one do better in some markets but not others? [link] [comments]  |
| Interesting to see what everyone’s living room/home office looks like that work at CNBC/Bloomberg Posted: 23 Mar 2020 11:26 AM PDT |
| Posted: 23 Mar 2020 11:52 PM PDT Why would gold be going up at times like this, and is this trend likely to continue? What are the driving factors? [link] [comments]  |
| Posted: 23 Mar 2020 03:40 PM PDT I need to do more reserach on options, but eventually the stock market will rebound, and stocks will start to follow an increasing pattern. So why isn't making calls on stocks a year ir two from now, " money in the bank"? [link] [comments]  |
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