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    Monday, May 4, 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 May 2020 05:13 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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    Soo are you buying or selling your airline stocks tomorrow?

    Posted: 03 May 2020 10:13 PM PDT

    I wonder whats going to happen. Will they crash or will they come back up. I wonder what will happen

    submitted by /u/ewrwerefewrgewrg
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    Intel in talks to buy Israel's Moovit public transit app for $1 billion

    Posted: 03 May 2020 06:53 AM PDT

    https://www.reuters.com/article/us-moovit-m-a-intel/intel-in-talks-to-buy-israels-moovit-public-transit-app-for-1-billion-media-idUSKBN22F0GS

    Moovit's free mobile navigation app provides transit information to more than 750 million users in 100 countries.

    Last month it launched an emergency mobilization service, which was created for transit agencies and enterprises during the COVID-19 pandemic. The technology transforms vehicle fleets into an on-demand service to get essential employees safely to work and has been implemented in a number of cities by large corporations.

    Intel has made significant investments already in Israel, having acquired autonomous vehicle technology provider Mobileye for $15.3 billion in 2017. In December it bought Israeli artificial intelligence firm Habana Labs for $2 billion.

    submitted by /u/vulcan_on_earth
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    My stock study watchlist. would appreciate criticisms or red flags

    Posted: 04 May 2020 01:59 AM PDT

    Core

    - FB ecosystem

    This is the stock that i believe is invested in the right places and has a path forward in the global market. I work as a React developer in fintech and I greatly enjoy their technology. The reason I stopped using snapchat was because I couldn't use it on low connection in Mexico, but Instagram worked marvelously. I use Whatsapp to stay in touch with my family in mexico and Facebook to stay in touch with my mom. There's something extremely powerful about that in my opinion.

    They're conservative with their push and development of camera and VR technology which is wise in my opinion give the many opportunities that exist in that space. They're pushing along with fintech in India, again with small business through Whatsapp. And they provide a suite of customer services for small business and entrepeneurs.

    - Microsoft

    I think they will have a great run during the cloud era of software development. Their acquiring of Github AND NPM goes to show how in touch they are with developer servicing.

    - Paypal

    Paypal has a marvelous history and is a battle tested pioneer in the fintech space. I see them repeating their previous successes by acquiring Honey. I work with Honey in the fintech space and now I'm understanding that Paypal has an auto coupon scraper on my Amazon purchases while my Visa ones don't. This is the forward thinking I love from Paypal despite not being as flashy as Square.

    - Disney

    Disney is quintessential american entertainment. I believe their deep roots in American culture and the entertainment industry will provide a solid bedrock for them for the generations to come.

    - Waste Management

    Sanitation and environmental, like internet connection technology, are about the same when it comes to market penetration. It is a scarcity. Sanitation is a critical part of any society's development and wellbeing. I think WM will be there to benefit from increased urbanization and industriousness from technology and wealth growth.

    - Kansas City Southern

    I'm Mexican and my family are avocado farmers. I believe in the future prospects of Mexico and its relationship with its neighbors. Mexico is a bustling nation and many youth are international students that carry degrees. This is a far cry from having military policing streets in rural neighborhoods decades ago. Kansas city southern is part of the supply chain that connects Mexico to main industrious Mexican states like Monterrey, Jalisco, and Michaocan. I like rail in this regard because it's a lot of weight in one operation of heavy materials. So Canadians that use Mexican mining will also benefit from this railroad.

    - Nintendo

    I believe in the future of gaming as a market and if I were to take a shot at who would be the most stable, I would vote for Nintendo. Like Facebook, they approach the family unit and grow generationally. I love their curveball approach to gaming and I think that creativity, along with it's customers trust, will be something I can hold onto for a long time versus companies that have a history of developing games like Call of Duty or World of Warcraft. Nintendo can take different forms: in the living room, at sweaty tournaments, online, mobile, on your phone, on a TV, in the movies, etc.

    Closely watching

    - United Health or Cigna

    This is only going to grow and wont change due to American politics for 8 years at a minimum.

    - Cisco

    Same as Microsoft but for IT.

    - Impossible Foods IPO

    I've been vegetarian for 10 years and Impossible Burgers has been one of the most mindblowing experiences of my life. The product is phenomenal and on a league of its owned compared to Beyond Meat. IMHO Beyond taste like cheap school lunchroom burgers and Impossible tastes like something I would be excited to feed my family. If their pork products are great then I am ALL in because Chicken products are by far the easiest thing to replicate. I'm extremely excited about this product.

    - Visa

    They make a ton of money on transactions. I saw them hiring for blockchain development so it leads me to believe that they're adapting.

    - Square

    I work in the fintech space and I like their modest approach to financial services. Their acquiring of a bank charter is actually incredibly important due to all the procurement and legal processes that go behind being a fintech company (abiding by federal security laws, etc). The one reason I like Chase banking is because I enjoy their app. I see Square as a competitor to Chase, surprisingly.

    - Apple

    Apple designs its products with customer service in mind. I think the future of education technology will likely go to Apple because of this. Their screens and cameras are wonderful and I can see them pioneering computer vision products because of this. They are THE American Tech company.

    - TMobile

    Aggressive as hell and grew to be a large player through savvy moves across time. Their customer service is a highlight for me.

    - JPM

    Customer service for banking is unmatched IMO. If any legacy banker will make it across changes, I believe Chase is doing what it takes to adapt and think forward.

    - Planet Fitness

    $10 gyms, clean, and casual enough for the general population. You can't beat $10 gym membership when you're broke as fuck. I've been a heavy lifter before and still used Planet fitness in my transitions across states and whatnot. I need to look at their numbers more closely.

    - Volkwagen

    I trust Europe and Japan to take EVs more seriously. I don't know who will seriously come close to competing with Tesla in the long run but they'll have to.

    - Panasonic

    Panasonic, much like AMD, did not immediately reflect the value of what they have produced. AMD did not explode inline with bitcoin or cheaper GPU consumption, in the same way Panasonic did not reflect a massive spike in price after speculation in Tesla grew. They're an important arm to the EV market that spreads across many players ranging from Tesla to Toyota to big tech.

    - Lyft

    I think Lyft's focus on customer service and regional clientele will pay off against Uber, who is growing too quickly and spreading thin. Lyft will benefit from the development of computer vision and Big tech's interest in automanufacturing.

    - Crypto (Bitcoin or XRP)

    I like crypto as a technology as a software engineer. I see the value in a faster process for procuring and exchanging legal tender that does not have to go through the bottleneck of the ACH process or through legal issues like the PATRIOT ACT or the Bank Secrecy Act. It still fundamentally respects those laws without the frustrations of banking service bottlenecks. I think the halvening protocol has an interesting affect on Bitcoin and supply and the market that it's trying to generate.

    -

    submitted by /u/codingprofessor
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    Putting 80% of 401k in QQQ for next 20 years

    Posted: 03 May 2020 11:35 PM PDT

    I want a ETF with better returns than VTI.

    I am thinking of putting 80% of my 401k in QQQ for the next 20 years. Is this a terrible plan?

    I also looked at VGT or VOO, but decided QQQ was better, because I want a good amount of holdings in Amazon, Google & Facebook (none of which are in VGTs top 10 holdings).

    One potential negative over 20 years would be the higher expense ratio 0.20% (QQQ) compared to VOO 0.03%, but on the other hand the performance of QQQ could potential more than pay the difference.

    The other 20% would be bonds.

    submitted by /u/blackice71
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    J. Crew Files for Bankruptcy Protection

    Posted: 04 May 2020 02:17 AM PDT

    J. Crew Group Inc. filed for bankruptcy, unable to revive flagging sales of its preppy clothing line amid the coronavirus pandemic and crushed by debt rooted in a long-ago leveraged buyout.

    Source: https://www.bloomberg.com/news/articles/2020-05-04/j-crew-files-bankruptcy-felled-by-pandemic-and-crushing-debt?utm_source=facebook&utm_campaign=socialflow-organic

    submitted by /u/Cuza
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    How is value of futures determined?

    Posted: 03 May 2020 03:46 PM PDT

    Futures for indexes starts at 6pm sunday. Since indexes like S&P500 are made up of stocks, which are closed with no future market, how is the value determined?

    When the pre market opens monday, how is +/‐ of the futures split between the underlying stocks?

    Apologize in advance if I am not using correct terms.

    submitted by /u/stocker0504
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    Under what circumstances could international equities out perform US?

    Posted: 04 May 2020 12:58 AM PDT

    Looking at this chart by Fidelity, International and US seem to go periods of years where one out performs the other: https://www.fidelity.com/viewpoints/investing-ideas/international-investing-myths

    With the US dominating since the financial crisis.

    Do you think post corona, international could pull ahead? Under what circumstances are could international equities out perform US again?

    submitted by /u/CD_Johanna
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    Capturing ETF decay

    Posted: 04 May 2020 03:26 AM PDT

    I had someone ask me some stuff about some levered ETFs and had to explain decay to him. But one thing that he asked me was how he could profit from such decay. So:
    You short an ETF and the corresponding inverse ETF
    This way your market position should be neutral and over time you would capture decay, but what are all the risks associated with this potential strategy as it seems to good to be true. Apart from them having tracking errors and not inversely correlating what other risks are there?

    submitted by /u/Expensive_Growth
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    How to calculate a stocks target price?

    Posted: 03 May 2020 04:42 PM PDT

    I understand this may be a very complicated answer but I'm hoping someone can point me to a general idea of how stock target prices are calculated or at least a resource that can give me a good idea. For instance how does Warren Buffet get an idea of what a company should be valued at and how does this connect with number of shares, etc. what financials should I be looking for in a company such a Microsoft

    submitted by /u/cameron9980
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    Robert Shiller and beating the market long term.

    Posted: 03 May 2020 12:15 PM PDT

    Ok, so with the rise of ETF investing and many different "Robo" investing platforms available today, a lot are offering the same thing.

    I found this video interesting: https://www.youtube.com/watch?v=Tn-A7eCUrYk

    At the 3:45 minute mark, he uses the example of just doing a value investing strategy for most individuals and over the long term value invest will beat the overall market. Anyone have any personal opinions about this?

    I think what he's saying is that say you took allocations from these major robo investing companies and instead of going into a Total market large cap fund, say for 40% (or whatever allocation the benchmark is) and put it into a "Total Value Large Cap Fund", then over the next say 30 years, you would beat the market. Then replace Small Cap allocation with Small cap value ETF etc.

    Does anyone think this is true? I've never studied the statistics for this or maybe Value over the long run just got lucky and the next 100 years will be different.

    Any one have thoughts on this?

    submitted by /u/fobreezee
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    Credible sources for investment tips?

    Posted: 04 May 2020 01:39 AM PDT

    Hi all, so I've just set up a trading account and am looking to invest in stocks and shares and want to get into this long term. However I am currently a complete novice.

    Are there any easy to use and free sources online which give out solid advice on what to buy when and what to avoid? For example specific companies, specific industries and when to buy.

    I am UK based if that makes any difference.

    submitted by /u/Frasercomp1
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    What happened to Interactive Brokers margin accounts during the 2008 financial crisis?

    Posted: 03 May 2020 03:25 PM PDT

    Did interest rates go up significantly? Did the terms of the loan change? Were investors who were in compliance even after the 50% drop hit with margin calls because of changing requirements?

    submitted by /u/throwaway474673637
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    why does low yield influence on the Fed's monetary support?

    Posted: 04 May 2020 01:25 AM PDT

    From Bloomberg, I read a part as below.

    https://www.bloomberg.com/news/articles/2020-05-01/treasuries-rise-after-trump-revives-u-s-china-trade-war-fears

    "I would expect this to drive a large bout of risk-off, pushing U.S. Treasury yields lower, and may also mean the Federal Reserve increases its monetary support, having slowed it from its recent peak."

    I get why treasury yield goes low if Fed slow buying treasury bills (monetary support), but don't get why low yields make feds buy treasury bills fast. Could anyone explain to me?

    Thanks

    submitted by /u/propark5194
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    What's the next bubble in your opinion?

    Posted: 03 May 2020 03:15 PM PDT

    Ignoring what's going on with covid, if things were running as they were before what fields do you think will see a bubble in the next 5-10 years? I've heard anything from sports betting to weed to 5G but i personally have a reasonable amount of faith in augmented reality once the use cases become clear. (Imagine pointing your phone at your car engine and having a step by step guide helping you repair, so much more could be done)

    submitted by /u/21issasavage
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    I’m new, does my portfolio look okay?

    Posted: 04 May 2020 03:50 AM PDT

    Hey, I've been interested and studying the stock market for a while and been researching my options. I've opened an ISA account on trading212 and have deposited an amount between £500-5000 with a monthly deposit schedule of £250 a month.

    Using recommended portfolios that I've found online along with my own adaption I have come up with the following:

    VUSA (s&p500) 50%

    VEUR (Europe) 15%

    VHYL (world high dividend) 15%

    VFEM (emerging markets) 10%

    Short term 10%

    Does this look like a reasonable portfolio option for a long term investment (10-20+ years)?

    Any input or suggestions welcome!

    submitted by /u/ImAWildling
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    To who buffet sold his airline stake

    Posted: 03 May 2020 10:48 AM PDT

    Like most of you know, buffet sold his stake in airlines. My question is, to who? The stake is so big I assume the individual market wouldnt be able to take this on (if you would find individuals who are currently interested) so do banks take this on or...?

    Thanks

    submitted by /u/elp202
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    Just made my first IRA and I want to put a bunch of my set aside cash into mutual funds. But I have no idea how to identify any.

    Posted: 03 May 2020 11:28 PM PDT

    First off, I tried looking at the sidebar and search function and Googling, but I feel like I may have been phrasing my question poorly because I never got a good answer through those, so I apologize if this is simpler than I'm making it out to be.

    The actual problem: A few weeks ago I opened a Roth IRA with Merill (since I bank with BoA). I know the general concepts of the different places I can put my money, like stocks, bonds, and mutual funds. Based on loose definitions and the understanding that this is for retirement, i'm pretty okay dumping deep into mutual funds (will have a $2,500 starter, but unsure how regularly I'll be adding to it or if I'll hit my $6k every year).

    What was new to me was the idea that mutual funds also have symbols like stocks do, but I have no idea how to identify any of them or where to look for this information.

    Like I said, I may have just done a very poor job on phrasing my question when searching, but any assistance in the right direction would be great. Thanks a lot for your time!

    submitted by /u/Sand_Coffin
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    Covid-19 housing market

    Posted: 03 May 2020 11:20 PM PDT

    Are millionaires and states protecting their real estate portfolio by saying the housing market wont crash?(to keep people from scaring into selling) Might be a dumb question but it seems logical to me it will, but news and media sites all say it wont.

    Pardon my bad english.

    submitted by /u/classig10
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    Picking winners

    Posted: 04 May 2020 04:55 AM PDT

    Just curious about which battered stocks you guys think will come out on top when this mess is eventually cleared up, right now seems like a decent entry point for long plays with many of these companies nearing all time lows. But there is the obvious risk of bankruptcy for companies with bad balance sheets. Here's my picks:

    Airlines: LUV, UAL, ALK Oil: XOM, CVX, FANG Real estate: SPG, BAM Cruise lines: CCL, RCL Movie theaters: CNK Auto makers: GM, TM Hotels: ??? Rental cars: ???

    submitted by /u/rickythecrazy
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    TD Ameritrade estimates trade amount is negative?

    Posted: 04 May 2020 03:56 AM PDT

    Stock shows at .51, I requested 10k shares and amount is negative ?

    submitted by /u/Lolaindisguise
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    Reviews on Value Investing Bootcamp

    Posted: 04 May 2020 01:55 AM PDT

    Hi, anyone here who is a MIP/VIB graduate from VI College? That means you had taken the 3-day Value Investing Bootcamp (VIB) conducted by VI College before? If so, could you share what contents this 3-day bootcamp covers? And how useful do you find this program? Is their post-program support good? Do they try to do other selling during this 3-day program?

    submitted by /u/HappyIndex
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    Is now a good time to put a little bit of money into index funds?

    Posted: 04 May 2020 12:44 AM PDT

    Investing noob here. For long term investment am wondering if now is a good time to put money into index funds like the S&P 500 and not plan to touch for the next 10-15 years. I'm pretty hands off and am thinking of putting in up to $5k over the course of a few months. Any thoughts on this plan? What should I research or think of first?

    submitted by /u/stgrdr
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