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.
- IMF head confirms global economy is now in recession
- What’s everyone buying during the 2020 crash?
- P/E RATIOS: BEWARE
- Pioneer Natural Resources CEO: "86% of Independent Oil and Gas Companies will Go Bust by 2021 under current low oil price enviornment"
- How/when will the U.S. housing market be affected?
- "Strong balance sheet"
- What metrics should you always check before buying shares of a company?
- What happened to Lehman Brother’s customer’s money when the bank collapsed?
- What happens if Buffett makes an "elephant-sized" stock purchase?
- During uncertainty, stick to your plan!
- AIRLINE BAILOUTS: Would the prices be driven up or down.
- Was in all cash before this market crash. Want to build a diversified portfolio now that all stocks so low priced. What should I buy and hold for 10 yrs?
- Market decline is just getting started
- Am I crazy for thinking the stocks will not go much more down.
- Where to Find List of Potential BBB Downgrades?
- Does the USO ETF hold 50% cash?
- I keep hearing that cheap doesn't mean the prices are good?
- Where do press releases appear first?
- Leveraged ETFs for younger investors. (follow up from earlier discussion)
- Obtaining professional client status with Interactive Brokers (MiFID Categorisation)
- Where can I self learn how to fundamentally analyze stocks?
- Coronavirus Sparks a Global Gold Rush
| Daily Advice Thread - All basic help or advice questions must be posted here. Posted: 28 Mar 2020 05:10 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]  |
| IMF head confirms global economy is now in recession Posted: 28 Mar 2020 02:09 PM PDT The head of the International Monetary Fund said Friday it is clear that the global economy has now entered a recession that could be as bad or worse than the 2009 downturn. IMF Managing Director Kristalina Georgieva said the 189-nation lending agency was forecasting a recovery in 2021, saying it could be a "sizable rebound." But she said this would only occur if nations succeed in containing the coronavirus and limiting the economic damage. "A key concern about a long-lasting impact of the sudden stop of the world economy is the risk of a wave of bankruptcies and layoffs that not only can undermine the recovery but erode the fabric of our societies," she told reporters at a news conference following a telephone conference with finance officials from the 24 nations that make up the IMF's policy-setting panel. She said the IMF was updating its economic outlook now and it would be released in a few weeks, allowing the agency more time to assess the economic impacts of the virus. Asked if the United States was now in recession, she noted that Federal Reserve Chairman Jerome Powell had said Thursday that America " may well be in a recession." She said she believed not only the United States but many other advanced economies and a number of developing countries had already entered downturns. Georgieva said lower income countries were being hit hard by the spreading coronavirus, with 81 nations now seeking support from an IMF emergency financing program being used to provide aid. https://www.nytimes.com/aponline/2020/03/27/business/bc-us-virus-outbreak-imf.html [link] [comments]  |
| What’s everyone buying during the 2020 crash? Posted: 28 Mar 2020 12:53 PM PDT What stocks are everyone looking to buy during this period of the coronavirus outbreak? Very curious and explain why! [link] [comments]  |
| Posted: 28 Mar 2020 05:19 PM PDT Just wanted to point out that many stocks are looking crazy cheap from a price to earnings perspective. Just note that many of the earnings figures in those ratios are not accounting for the complete economic shutdown we are currently encountering. When earnings start to come out forward looking PE ratios will get adjusted and some stocks may look more expensive than initially thought. Most likely why someone like Warren Buffet is waiting. He thinks there will be more value to extract somewhere in the future. Or maybe I'm just a clown who's looking for any reason not to buy because the thought still makes Me sick. [link] [comments]  |
| Posted: 28 Mar 2020 10:03 PM PDT Pioneer is one of the largest oil producers in Texas, specifically shale basins. Huge eye opener. [link] [comments]  |
| How/when will the U.S. housing market be affected? Posted: 28 Mar 2020 09:11 PM PDT Home and rent have gone up substantially the past few years. Now with unemployment rising, and negative sentiment, when will real estate prices reflect what's happening? [link] [comments]  |
| Posted: 28 Mar 2020 04:38 PM PDT Every smart person says looking for a company with a "strong balance sheet" is important when investing. What specific line items/ratios in the balance sheet are the most important in evaluating an investment? My guess would be total cash and current ratio? [link] [comments]  |
| What metrics should you always check before buying shares of a company? Posted: 28 Mar 2020 06:54 PM PDT What metrics are indicators of a good company/stock? Why? [link] [comments]  |
| What happened to Lehman Brother’s customer’s money when the bank collapsed? Posted: 28 Mar 2020 03:59 PM PDT Been thinking about this since the market is down. I know that Lehman Brothers was one of the biggest banks to fail. Do we know what happened to the money that account holders had in the bank? Did they just lose all their money? Did Lehman Brothers have to pay them back? Did they get a percent of their money? Did the get to keep whatever securities they had invested in and have it moved to a different bank? Like how did it all go down? [link] [comments]  |
| What happens if Buffett makes an "elephant-sized" stock purchase? Posted: 28 Mar 2020 08:25 PM PDT Though Berkshire's 13F doesn't come until much later so we won't know if Buffett made an "elephant-sized" acquisition but let's say he does on Day X, wouldn't the price of that stock go up dramatically enough where people would think "oh.....someone must be buying them out at a premium?" 🧐 [link] [comments]  |
| During uncertainty, stick to your plan! Posted: 28 Mar 2020 03:37 PM PDT A big reason for this post is to reaffirm myself. Much like someone who is going to stop drinking or start eating healthy, I want to reaffirm my strategy and also hear feedback from the reddit investing community. 1) strategy: "buy the dip." Or DCA. This is the common advice provided for investors on reddit but it is so much more easier said than done. It is so hard to watch one week old stock purchases or ETF purchases start to lose value at an alarming rate. The way to combat this is to remember; any money I throw in the market these coming weeks I will not need in the short term to pay bills or buy food. 2) market direction: NOBODY knows what direction we are headed. I'll repeat: nobody. Yes, the reddit sub gangs are 100% sure we are headed toward a hunger games or mad max dystopia where you will have to sell your pubic hair as coronavirus mask materials. While that is intriguing, and entirely possible, I'm not growing my pubes out in anticipation. Guys we've either hit bottom, or we have not. THATS IT. Let me remind you, fear and uncertainty drive markets down, NOT NECESSARILY BAD NEWS. If you don't think billion dollar hedge funds aren't factoring economic risk for the next 5 years and beyond, you are foolish. Another way of saying this is with a popular reddit phrase, "it's all priced in bro." 3) my investments: I'm super conservative, I would be happy with a 5% long term gain on my money over a year or three if necessary, I'm not a r/wallstreetbets guy and will never be. That being said, I like ETFs. I believe ETFs have their downsides like anything else, but what I believe their largest vulnerability was "how will ETFs react to a super volatile market?" Turns out, they functioned alright. Another downside is your locked into what the ETF firm has decided to include, you can't jump ship on one or two of the bad investments within the ETF. On the upside, I am comfortable buying riskier investments such as oil through an ETF because I can probably avoid getting totally screwed due to bankruptcy, mismanagement or trade war. Anyway, hope this helps someone. I am not an experienced investor who knows all, please, let's discuss! [link] [comments]  |
| AIRLINE BAILOUTS: Would the prices be driven up or down. Posted: 29 Mar 2020 02:44 AM PDT So I'm sure we're all very aware that the airlines are being bailed out. However, do you think it may still drive the prices down since the 1) The bailout money is federally regulated so the airlines can't use the money for buybacks, and 2) no one wants to fly right now due to the risks involved [link] [comments]  |
| Posted: 29 Mar 2020 02:18 AM PDT |
| Market decline is just getting started Posted: 28 Mar 2020 09:59 AM PDT As massive as 2T sounds, the loans to struggling companies is not a great news for shareholders. While their equity is less likely now to go to 0, the chances of getting any payback for share ownership are now much further removed. Loans to companies prevent any share buy-back and dividends until 1 year after repayment of government loans. The money borrowed now are like a shield between shareholders and any benefit of share ownership. Obviously as long as they are taking the debt on they are removing that payoff to shareholder further into the future. Imagine that businesses will recover (to some extent) and start repaying the debt in a year, maybe finish paying it off in 5-10 years? Never? In addition to having to deal with debt repayment, borrower companies will be restricted in bonus payments and salaries. This could hurt them competitively against new entrants where applicable (nobody is starting another boeing or another airline). This could spur a new business where we will see new nimble companies come to market, but only some familiar tickers will be from today. Even Facebook and Google are projecting decline of 20% plus in earnings, and they are "indirectly-hit". There will be massive revision in earnings for now as well as 9 months from now. All this makes equities so much less attractive with questionable payoff. I say this market is worth less than 1/2 of what it was before (could be even less) [link] [comments]  |
| Am I crazy for thinking the stocks will not go much more down. Posted: 28 Mar 2020 09:29 PM PDT I get all the arguments as to why the stocks are going to tank ... explosion in number of unemployed, world economy coming to a stand still, etc etc. However, here is why I think the stocks are going to not tank much. Where will people park their money? Of all the option CDs, Cash, Gold/Silver, Real Estate and Stocks I still think stocks are the most attractive option. With the recent dip, some of the evaluations are starting to look very attractive. Since 2009 the Fed has pumped pushed so much money in the system. That money hasn't dissipated into thin air. It's still waiting to get re-invested. So yes, while I do believe the market will dip in the short term, I don't think it will dip a whole lot.... just coz there aren't too many better options out there. Thoughts... [link] [comments]  |
| Where to Find List of Potential BBB Downgrades? Posted: 28 Mar 2020 08:42 PM PDT TL;DR for my WSB lurkers, SPY $220p 5/15. Also F $5p 4/17. Brrrr. We all have a general feeling of how fucked things can get with coronavirus so I'm not too interested in that portion. I'm more interested in how coronavirus will effect corporate debt. Now normally I'd just say fuck it and invest in an inverse high yield ETF or go short on an ETF with enough option liquidity, and call it a day. However, this still doesn't feel like I'm getting close enough to the issue. Since we can identify companies that are on Moody/S&P/Fitch watchlist for BBB downgrades... now we're talking. From there you can check out 10K for debt covenants and quarterly financials to see who is bigly fucked. Like Ford for example. I know you can create an account on Moody's, etc. and check out their ratings/downgrades as they happen, but do you know of any other resources that can easily identify downgrade potential, as well as sector the company is in? Sifting through Moody's shitty web interface makes me think there has to be something easier or more sophisticated. I promise I'll be responsible with my IRA. Pray for my TD account though. [link] [comments]  |
| Does the USO ETF hold 50% cash? Posted: 28 Mar 2020 07:58 PM PDT The Yahoo! Finance listing for USO holdings says:
For a total of 51.25%. But it doesn't say what the rest is. This listing here seems to indicate it's holding the rest in cash which seems really strange. Anyone know what's going on here? [link] [comments]  |
| I keep hearing that cheap doesn't mean the prices are good? Posted: 28 Mar 2020 06:44 PM PDT I might have gotten that title a bit wrong, it's not an exact quote but basically I've heard people say that stocks are cheap and on sale now which seems to be true when initially looking at it. However, the counterpoint I've heard is that, that doesn't mean that the prices of those stocks will ever get back to it's former price. Essentially, expressing the difference between price and value. Question here is how can a novice tell what stock is valuable. Stocks like AMD, Microsoft, Intel dropped by half or close to that. I think these companies have a good enough foundation that they will recover and continue growing. Is investing in them a bad idea? Am I just better off investing 100% into index funds like S&P 500 (like VOO for example), which might net me less in the short-term but would get me enough later in life? PS: I'm 24 so I'm assuming 100% equities asset allocation (which is pretty aggressive) is where I want to be now since the money I'm investing is money I don't need in the near future. [link] [comments]  |
| Where do press releases appear first? Posted: 28 Mar 2020 03:15 PM PDT I'd like to know the rough timeline of the first 60 seconds of a press release. I have done some initial research and, until now, I believed that news items would first appear on the news agency's website. Then, the first ones to pick up the news (within 1-2 seconds) would be the players that have direct agreements with the news agencies, such as Bloomberg Terminal (whenever a news item is disseminated, the agency would send the item to Bloomberg). This would be followed by any scraping bots that noticed the news item on the website (within 30 seconds) and individual observers (within 5 minutes, albeit they would probably have been alerted by an automated system that got the news before). However, I have been noticing that those items sometimes appear on the news agency's website up to 30 seconds after the news item's creation timestamp and the underlying security's price had already begun to move accordingly. I do not understand how that is possible, however, since that would imply that news are disseminated to select entities before being made public, violating SEC rules. Does anyone have any more insights on this? Where do news items first appear? Where do they go next? [link] [comments]  |
| Leveraged ETFs for younger investors. (follow up from earlier discussion) Posted: 28 Mar 2020 10:02 PM PDT So 2 months ago this post/study were mentioned: https://www.reddit.com/r/investing/comments/enr9xg/yale_economists_argue_that_the_most_financially/ Which basically stated that, despite the negativity surrounding the concept of investing in leveraged ETFs long-term, they were still a better buy ROI wise over an extended period of time. Well, here we are in the middle of a crash, and what better time to re-examine the possibility of going with an aggressive investing approach at time where funds are going to be dirt cheap. So there are a few major, more obvious risks associated with these funds. If you take a 3x leveraged fund and its underlying has a -33% day, you're totally cleaned out. Done. This happened with $XIV back in 2018, a fund people thought was a free money train for years. Accordingly, I've decided to restrict my options to 2x funds as I'm not willing to entertain that possibility. There is also the oft-cited assertion that their high expense ratios and daily rebalancing eat into their gains and your ROI when compared to the base fund, but in any tool that I've used to compare the growth of a hypothetical $10,000 over a period of 10 and 20 years it has well outdone the non-leveraged fund. For example, even at the bottom of the bear market during the GFC, $SSO was still up over $SPY had you invested the same amount in both 15 years prior. So that leaves me to believe that the only serious criticism of a 2x leveraged fund would be the risk in that you could find yourself with your pants down during a time where you needed your money? Welcoming any and all discussion about this again as I think this is a potentially great buy for the many younger investors on this sub. We aren't retiring anytime soon and can afford to take an aggressive approach in our 20's and 30's, and what better time than the bottom of a recession. [link] [comments]  |
| Obtaining professional client status with Interactive Brokers (MiFID Categorisation) Posted: 28 Mar 2020 03:32 PM PDT Hello, Has anyone obtained professional client status, from Interactive Brokers? I hope links are allowed here, so I will post couple links with details, below I want to know how strict IB is, when they check that professional (MiFID) application? I am not working at some investment company etc., and also I don't have enough assets/trades to meet requirements for "Elective Professional Client" (see 1st link) At the same time, regarding to 2nd link, I may state that I have both of them in "another account". Did anyone try that? Does it work? I mean, if I gave answers 2-2-3, on that 2nd link application form. Would I be given professional status, or at least how high the chances would be? I would try it by myself of course, but I wonder if IB might do some sort of investigation, and/or will not only reject my application but also disallow me trying to apply again in the future. Any thoughts? Links: https://ibkr.info/article/3298 https://www.interactivebrokers.com/en/software/am3/am/settings/mifid_category.htm Thanks everyone! P.S. All the hassle is because of that PRIIPS/MIFID law which prohibits EU citizens from buying US ETFs. Obtaining professional status seems to be the only way (without switching country and some others). This is only FYI; I wouldn't like to discuss PRIIPs itself, or other ways to bypass it etc. Only obtaining IB professional status. [link] [comments]  |
| Where can I self learn how to fundamentally analyze stocks? Posted: 28 Mar 2020 05:29 PM PDT I'm new to all this and any pointers to any resources would be great. [link] [comments]  |
| Coronavirus Sparks a Global Gold Rush Posted: 28 Mar 2020 05:54 PM PDT
... [link] [comments]  |
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