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    Tuesday, March 3, 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: 03 Mar 2020 04:10 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:

    • 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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    Dow Jones posting its best one day gain since 2009 on hopes central bankers will find a vaccine

    Posted: 02 Mar 2020 01:07 PM PST

    Robinhood says it’s experiencing a ‘system-wide outage’ as markets rebound in heavy volume Monday

    Posted: 02 Mar 2020 07:20 AM PST

    KEY POINTS

    • Silicon-Valley start-up trading app said it was experienced an outage on Monday.

    • The technical problems come amid the market's attempt at a rebound from the worst week for stocks since the financial crisis fueled by investor panic surrounding the fast-spreading coronavirus.

    • "We are experiencing a system-wide outage. We are working to resolve this issue as soon as possible," the company said in a message to clients on Monday.

    CNBC

    submitted by /u/ChocolateTsar
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    This is why timing the market is hard

    Posted: 02 Mar 2020 01:03 PM PST

    Damn up 5% in one day, how crazy is this?

    The deals disappear so quickly!

    submitted by /u/timeinthemarket
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    My market outlook

    Posted: 02 Mar 2020 09:41 PM PST

    Hey everyone, new contributor here, but no stranger to investing! I'm looking to practice developing/writing my own ideas. Thought this could be a good place to test the waters. Feedback and disagreements are always welcomed.

    Here's my market outlook in brief (TLDR): I'm cautious on risk assets in the near-term amid COVID-19 and believe investors are expecting too much from central banks.

    More detail: This is a fairly remarkable point in history. The recent outbreak has garnered more attention than any other major public health threat since 2008, according to my Google search analysis (https://imgur.com/a/FnWc4bR ). China's large share of world GDP and the globalization of supply chains are reasons why we shouldn't gloss over coronavirus. In my view, global economic activity and earnings growth could take a heavy hit, albeit temporarily, due to the containment efforts of governments and corporations. We already saw a sharp tumble in Chinese manufacturing activity on Sunday, in fact the worst since the global financial crisis. While textbooks tell us that the stock market is a discounting mechanism looking far into the future, I believe investors are near sighted. With that said, a 10-15% selloff isn't the worst we could see. Furthermore, last week's repricing only brings the S&P 500 index level back to where it was in October 2019 - not bad at all. U.S. stocks somewhat rebounded this Monday on hopes for central bankers to come and save the day with rate cuts. I highly doubt monetary policy is an effective solution in this event - while the Fed can provide market liquidity, they cannot mobilize people to travel and get on planes. While I expect some policy intervention, I don't believe central bankers will cut as much as investors want them to, which could be a headwind for stocks.

    submitted by /u/CanadianStrategist
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    Berkshire Boosts Delta Air Stake by $45 Million Amid Market Rout

    Posted: 03 Mar 2020 12:27 AM PST

    Warren Buffett's Berkshire Hathaway Inc. boosted its stake in Delta Air Lines Inc. last week, taking advantage of bargain prices amid market declines.

    Berkshire acquired more than 976,000 shares for about $45.3 million, or an average price of $46.40, according to a filing Monday. Delta stock dropped about 20% last week as markets plummeted on concern about the coronavirus.

    Buffett, Berkshire's chairman and chief executive officer, is famous for buying during declines, saying he's betting on the long-term health of the U.S. economy. Berkshire's holding in Delta swelled to about 71.9 million shares with the Feb. 27 purchases, the filing shows.

    https://www.bloomberg.com/news/articles/2020-03-03/berkshire-boosts-delta-air-stake-by-45-million-amid-market-rout

    submitted by /u/jacquesopper
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    if it isn't obvious by now... a good layout of reasons to leave RH for ToS

    Posted: 02 Mar 2020 12:47 PM PST

    Jack Welch, former chairman and CEO of GE, dies at 84

    Posted: 02 Mar 2020 05:38 AM PST

    Jack Welch was a railroad conductor's son who rose to chairman and CEO of General Electric.

    During the 20 years he led the conglomerate, its market value grew from $12 billion to $410 billion.

    Fortune magazine once called him "manager of the century," but he also was known as "Neutron Jack" for slashing tens of thousands of jobs.

    Jack Welch, a railroad conductor's son who became chairman and CEO of General Electric and led it for two decades, growing its market value from $12 billion to $410 billion, has died. He was 84.

    His death was announced Monday by his wife, Suzy.

    With a determination to win by busting up bureaucratic complacency, Welch earned two titles — "manager of the century," and "Neutron Jack" for slashing tens of thousands of jobs. Under his leadership, GE became the world's most valuable company, after Microsoft. Its fortunes later turned south.

    While at the helm, Welch bought and sold scores of businesses, expanding the industrial giant into financial services and consulting. GE Capital Bank was founded seven years into his tenure. His acquisitions included RCA — then-owner of NBC — and Kidder Peabody, the brokerage that became entangled in an insider trading scandal.

    He also streamlined the conglomerate's bloated bureaucracy by giving managers free rein to make changes they deemed beneficial to the bottom line.

    He invented the "vitality curve," in which managers were ranked into three groups. The top 20% "A" group was "filled with passion, committed to making things happen." The "vital" 70% "B" group was essential to the company and encouraged to join the A's. Then there was the bottom 10% "C" group. "The underperformers generally had to go," Welch said in his 2001 book, "Jack: Straight From the Gut."

    According to the book, "the workforce went from 411,000 to 299,000 during his first five years as chief. With such cuts, he acquired the derisive moniker named after the neutron bomb, which was designed to kill multitudes without destroying cities.

    Welch retired from GE in September 2001, days before the 9/11 attacks. Upon his retirement, The New York Times published an editorial that gushed over his professional record.

    "Mr. Welch was a white-collar revolutionary, bent throughout his career at G.E. on championing radical change and smashing the complacency of the established order," the editorial said. "His legacy is not only a changed G.E., but a changed American corporate ethos, one that prizes nimbleness, speed and regeneration over older ideals like stability, loyalty and permanence."

    For GE, the accolades turned to disbelief over the next decade and a half. Welch's hand-picked successor, Jeffrey Immelt, had to grapple with an era that included the dot-com bust, 9/11 and the Great Recession. As the company's fortunes evaporated, Immelt had to shed NBCUniversal and most of the once-too-big-to-fail GE Capital. He resigned in 2017.

    GE would get two more CEOs, John Flannery, who lasted a little more than a year and saw the company removed from the blue chip Dow Jones Industrial Average after 110 years, and Lawrence Culp Jr., who has been in charge since fall 2018. As of Monday, GE's stock was trading around $11 a share and its market capitalization was down to $95.1 billion.

    The house that Jack built — a sprawling global conglomerate that encompassed diverse parts including industrial manufacturing, entertainment, technology, finance and health care — fell out of fashion with investors, in favor of more focused enterprises.

    "Did the Jack Welch Model Sow Seeds of G.E.'s Decline?"' a headline in the Times read after Immelt's resignation.

    "It's always tough to follow a legend," New York University finance professor Aswath Damodaran said in that Times article.

    After leaving GE, Welch became a business consultant, engaged in public speaking and TV appearances, including on CNBC, wrote a column and books and opened a for-profit management institute.

    A staunch Republican, he accused President Barack Obama's economics team of cooking the books on employment data a month before the 2012 presidential election. The Labor Department reported that unemployment had fallen below 8% in September for the first time since the Great Recession.

    On Twitter, Welch blasted the data.

    "I wasn't kidding," Welch told The Wall Street Journal later that day.

    Survivors include his third wife, the former Suzy Wetlaufer, whom he married in 2004. He filed for divorce from his second wife, Jane, after reports surfaced that he was having an extramarital affair with journalist Wetlaufer. Four days before the divorce trial was to begin, Jack and Jane Beasley Welch reached a settlement that reports said was worth $180 million. He divorced his first wife, Carolyn, the mother of his four children, in 1987.

    https://www.cnbc.com/2020/03/02/jack-welch-obit-ge.html

    submitted by /u/__justsayin__
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    Foxconn expects iPhone production to return to normal this month

    Posted: 03 Mar 2020 05:13 AM PST

    https://www.cnn.com/2020/03/03/tech/foxconn-coronavirus-apple/index.html

    Hong Kong (CNN Business)Foxconn, the main assembler of Apple (AAPL) products such as the iPhone and iPad, expects to resume normal production by the end of the month after the coronavirus outbreak forced it to close factories in China in late January.

    submitted by /u/FortyYearOldVirgin
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    Volatility works both ways.

    Posted: 02 Mar 2020 01:16 PM PST

    https://www.investopedia.com/terms/v/volatility.asp

    "In the securities markets, volatility is often associated with big swings in either direction. For example, when the stock market rises and falls more than one percent over a sustained period of time, it is called a "volatile" market."

    submitted by /u/AvgWeirdo
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    Why hasn’t China’s market crashed?

    Posted: 03 Mar 2020 01:35 AM PST

    I shorted China's market (MCHI) right after the initial 8% drop from coronavirus thinking 8% wasn't enough. The virus has only gotten worse since I entered the position yet the China market is slightly up from then. What in the world is going on? Half of the country is sitting at home for two months and only a 5% drop??? Does anybody have any idea what is going on?

    submitted by /u/jshshhahah
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    So is pretty much everyone gonna switch away from Robinhood now? Or would they still be a safe bet to use?

    Posted: 02 Mar 2020 10:36 PM PST

    NEL - Investing in NEL

    Posted: 03 Mar 2020 02:55 AM PST

    RBA CUT 25bp - point out global growth weaker in 1H than expected. ASX200 unchanged

    Posted: 02 Mar 2020 07:59 PM PST

    RBA Cut 25bp. Key points below. I imagine this is the start of globally coordinated easing which will flow through to equity markets/valuations for the foreseeable future. You read the cut as bullish/bearish for equities?

    **03MAR2020**

    14:23:16 *AUSTRALIA SAYS 21 OF 34 CORONAVIRUS PATIENTS HAVE RECOVERED

    14:25:03 *MORRISON: FISCAL RESPONSE TO BE TARGETED, MEASURABLE, SCALABLE

    14:26:59 *MORRISON: GOVERNMENT `HIGHLY ALIGNED' WITH RBA ON RESPONSE

    14:28:37 *MORRISON: IF RBA MOVES, GOVERNMENT EXPECTS BANKS TO PASS ON CUT

    16:30:12 *RBA CUTS CASH RATE TARGET QUARTER POINT TO 0.50%

    16:30:21 *RBA: PREPARED TO EASE MONETARY POLICY FURTHER

    16:30:24 *RBA: CORONAVIRUS HAVING `SIGNIFICANT EFFECT' ON ECONOMY

    16:30:53 *RBA: CORONAVIRUS UNCERTAINTY LIKELY TO AFFECT DOMESTIC SPEND

    16:31:02 *RBA SAYS OUTBREAK CLOUDS NEAR TERM OUTLOOK FOR GLOBAL ECONOMY

    16:31:32 *WESTPAC CUTS VARIABLE INTEREST RATES BY 0.25% PA

    16:31:34 *RBA: VIRUS TO DELAY PROGRESS TO REACHING INFLATION TARGET

    16:31:37 *RBA: GLOBAL GROWTH IN 1H WILL BE LOWER THAN EARLIER EXPECTED

    16:31:39 *RBA: AUSTRALIA GOVERNMENT HAS INDICATED WILL ASSIST ECONOMY

    16:31:54 *RBA: BOARD JUDGED APPROPRIATE TO CUT RATES TO SUPPORT ECONOMY

    16:32:01 *RBA: MARCH QTR GDP GROWTH LIKELY TO BE `NOTICEABLY WEAKER'

    16:32:04 *RBA: TOO EARLY TO SAY HOW PERSISTENT VIRUS EFFECTS WILL BE

    16:33:00 *RBA: WAGES NOT EXPECTED TO PICK UP FOR SOME TIME

    16:33:19 *RBA: DIFFICULT TO PREDICT HOW LARGE, LONG-LASTING VIRUS EFFECT

    16:33:39 *RBA SEES VIRUS DELAYING PROGRESS TOWARD JOBS, INFLATION TARGETS

    16:34:31 *RBA: ONCE VIRUS CONTAINED, ECONOMY SEEN ON IMPROVING TREND

    16:40:57 *ASB BANK NOW SEES RBNZ RATE CUTS IN MARCH, MAY

    submitted by /u/compoundgrowth
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    Dow jumps 800 points in volatile trading as Wall Street tries to recover from massive sell-off

    Posted: 02 Mar 2020 10:27 AM PST

    I lost 8k+ over the RH lock out. Did anyone else have issues?

    Posted: 03 Mar 2020 05:13 AM PST

    I'm down $20,000 from shorting Tesla stock since last week. What do I do?

    Posted: 03 Mar 2020 05:07 AM PST

    A few months back I shorted Tesla and sold for a very small profit (few hundred) and it kept going down so I kicked myself for selling too early. After the drops last week I shorted 125 shares thinking it would continue to go down, and I do believe it id overvalued and a hype stock.

    Since I shorted it, the stock has shot almost straight up in value, leaving me with a $20,000 loss. If I sell I'll take the loss and if I don't I can continue to bet it'll go back down, but I am honestly afraid of making either decision. My entire portfolio is only $100,000 so this has wiped out a decade of gains from normal investing. I'm kicking myself, cried myself to sleep last night, and woke up seeing the stock was up even more today.

    I've learned to never short again. I've learned to invest and not gamble/trade. I know I made a bad decision and I'm looking for help. Thanks

    submitted by /u/alltime_pf_guru
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    Please help a noob. Apple split 7:1 in 2014. Why did the stock price not reduce to 1/7th after the split was effective?

    Posted: 02 Mar 2020 04:52 AM PST

    I'm new to investing, I've done some research and I can't find a decent explanation for this. Apple traded in the $60-80 range in 2013, $80-110 in 2014, $110-130 in 2015. Why didn't the price per share decrease to $10-15 after the 7:1 split? I'm so curious to understand this. Thank you.

    submitted by /u/remember_the_
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    G7 Leaders said....nothing new

    Posted: 03 Mar 2020 05:05 AM PST

    Expect a sell off

    I think it's just momentary though. The markets will continue to go up next sessions

    submitted by /u/traderchile
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    CNBC has DOW futures up 100, yet directly under that DOW expected -300.

    Posted: 03 Mar 2020 04:58 AM PST

    What gives? The second story says Europe isn't going to lower rates so the markets are looking to go down. Just not updated fast enough or mixed signals?

    submitted by /u/reddituseranyonymous
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    China starting to recover from Coronavirus

    Posted: 02 Mar 2020 08:06 PM PST

    Traffic from major coastal cities:

    Shenzhen - unlike last week, it appears that improved traffic on Monday will continue through the week

    Shanghai - much improved

    Guangzhou - still below average but much improved over last week

    Others:

    Beijing - like Guangzhou

    Chongqing - improved but still weak

    Chengdu - back to normal

    Wuhan - locked down

    Changsha (next to Wuhan) - pretty normal considering location

    Interestingly:

    Milan - bad last week but seems to have started recovering too

    Ofc, we could be about to get another outbreak which kind of depends on the response of govts but there is definite improvement over last week.

    Fwiw, and I haven't been tracking this as closely, I think container ship arrivals started ticking up at Shanghai. Ports are still much weaker than usual though with many ships in port (although this effect is non-existent outside China, activity at Singapore for example still looks good).

    submitted by /u/bananarepubliccat
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    OECD warns coronavirus could halve global growth

    Posted: 02 Mar 2020 04:01 AM PST

    It's just the beginning but already so my much hype

    https://www.ft.com/content/1356af8c-5c6c-11ea-8033-fa40a0d65a98

    submitted by /u/praetserge
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    Promotion offers for transferring stocks

    Posted: 02 Mar 2020 10:29 PM PST

    As it says, you could guess why I'm asking. I'm fed up with Robinhood, this isn't the first time orders won't fill and thier whole app malfunctioned on important trade days. Now, that's out the way, is there a platform that is currently promoting a bonus for transfering stocks over to thier platform? 0 commission would be ideal. Thanks all.

    submitted by /u/liao24
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    $PTN Palatin Technologies

    Posted: 02 Mar 2020 07:56 PM PST

    Micro cap stock

    -130 million market cap

    -$96 million in cash

    -Little expenses except for R&D

    -License agreement with AMAG pharmaceticals to market Vyleesi

    -Vyleesi is a drug to treat HDD a disorder that effects 1/10 menopausal women nicknamed "viagra for women"

    -Earnings results haven't been fully priced in since the license pays irregularly which as of right now is their only FDA approved drug but could potentially be huge

    submitted by /u/Litquidity88
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