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.
- Goldman: Goldman Sachs official says companies switching to Zoom instead of business travel could hit oil demand by up to 3 million barrels per day
- A dangerous gap: The market v the real economy — The Economist, May 7 2020 edn.
- Top JPMorgan Investment Officer: It Will Take '10 to 12 Years' for U.S. Employment Levels to Return
- Sweden has Avoided a Coronavirus Lockdown. Its Economy Is Hurting Anyway.
- Perhaps the most relevant excerpt from one of Ray Dalio's book
- "over-allocation of smart people in finance and law"
- US weekly jobless claims total 3.169 million, bringing seven-week tally to 33.5 million
- Neiman Marcus files for Chapter 11
- Investing in bitcoin without technical failure risk or theft risk
- Nasdaq rallies more than 1%, closes positive for 2020
- There might be a logical reason to why the markets keep going up
- Who is buying right now and why?
- Uber loses 3 billion - Stock up after hours.
- Why would someone buy negative yield bonds to hedge deflation?
- Airline Companies unlimited flights question.
- Looking for something entertaining to watch related to markets/investing. Any good movie/documentary recommendations?
- Real estate investors, what are some tips for someone just starting out?
- Uber Sees Path to Profitability After Blow From Coronavirus
- Zoom Acquires Keybase and Announces Goal of Developing the Most Broadly Used Enterprise End-to-End Encryption Offering
- $ENPH long term investment?
- Marketrip's Mobiletrader? Is anyone using it?
- Great Article on the Basics of QE and Inflation
- Why are margin rates so bad at major brokerages?
| Daily Advice Thread - All basic help or advice questions must be posted here. Posted: 07 May 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]  |
| Posted: 07 May 2020 09:52 AM PDT What I've been saying on here. If you are investing in airlines, you have to ponder how much business travel is going to be replaced in the future by virtual meetings. Conventions aren't going to be happening for a while, too. "But while demand returns to normal, it will be from a base with less business travel. "Before we used to have these internal meetings and things of that nature, and I think this is going to be way more Zoom-oriented, other types of substitutes," he said. "Look at the routes that the airlines are planning when they come back, they're not going to be at the same level that they were previously." [link] [comments]  |
| A dangerous gap: The market v the real economy — The Economist, May 7 2020 edn. Posted: 08 May 2020 01:32 AM PDT I pasted the article, to exempt you from registering an account to read it. Financial markets have got out of whack with the economy. Something has to giveSTOCK MARKET HISTORY is packed with drama: the 1929 crash; Black Monday in 1987, when share prices lost 20% in a day; the dotcom mania in 1999. With such precedents, nothing should come as a surprise, but the past eight weeks have been remarkable, nonetheless. A gut-wrenching sell-off in shares has been followed by a delirious rally in America. Between February 19th and March 23rd, the S&P 500 index lost a third of its value. With barely a pause it has since rocketed, recovering more than half its loss. The catalyst was news that the Federal Reserve would buy corporate bonds, helping big firms finance their debts. Investors shifted from panic to optimism without missing a beat. This rosy view from Wall Street should make you uneasy (see article). It contrasts with markets elsewhere. Shares in Britain and continental Europe, for example, have recovered more sluggishly. And it is a world away from life on Main Street. Even as the lockdown eases in America, the blow to jobs has been savage, with unemployment rising from 4% to about 16%, the highest rate since records began in 1948. While big firms' shares soar and they get help from the Fed, small businesses are struggling to get cash from Uncle Sam. Wounds from the financial crisis of 2007-09 are being reopened. "This is the second time we've bailed their asses out," grumbled Joe Biden, the Democratic presidential candidate, last month. The battle over who pays for the fiscal burdens of the pandemic is just beginning. On the present trajectory, a backlash against big business is likely. Start with events in the markets. Much of the improved mood is because of the Fed, which has acted more dramatically than other central banks, buying up assets on an unimagined scale. It is committed to purchasing even more corporate debt, including high-yield "junk" bonds. The market for new issues of corporate bonds, which froze in February, has reopened in spectacular style. Companies have issued $560bn of bonds in the past six weeks, double the normal level. Even beached cruise-line firms have been able to raise cash, albeit at a high price. A cascade of bankruptcies at big firms has been forestalled. The central bank has, in effect, backstopped the cashflow of America Inc. The stockmarket has taken the hint and climbed. The Fed has little choice—a run on the corporate-bond market would worsen a deep recession. Investors have cheered it on by piling into shares. They have nowhere else good to put their cash. Government-bond yields are barely positive in America. They are negative in Japan and much of Europe. You are guaranteed to lose money by holding them to maturity, and if inflation rises the losses would be painful. So stocks are appealing. By late March prices had fallen by enough to tempt the braver sort. They steeled themselves with the observation that much of the stockmarket's value is tied to profits that will be made long after the covid-19 slump has given way to recovery. Tellingly, though, the recent rise in share prices has been uneven. Even before the pandemic the market was lopsided, and it has become more so. Bourses in Britain and continental Europe, chock-full of troubled industries like carmaking, banking and energy, have lagged behind, and there are renewed jitters over the single currency (see article). In America investors have put even more faith in a tiny group of tech darlings—Alphabet, Amazon, Apple, Facebook and Microsoft—which now make up a fifth of the S&P 500 index. There is little euphoria, just a despairing reach for the handful of businesses judged to be all-weather survivors. At one level, this makes good sense. Asset managers have to put money to work as best they can. But there is something wrong with how fast stock prices have moved and where they have got back to. American shares are now higher than they were in August. This would seem to imply that commerce and the broader economy can get back to business as usual. There are countless threats to such a prospect, but three stand out. The first is the risk of an aftershock. It is entirely possible that there will be a second wave of infections. And there are also the consequences of a steep recession to contend with—American GDP is expected to drop by about 10% in the second quarter compared with a year earlier. Many individual bosses hope that ruthless cost-cutting can help protect their margins and pay down the debts accumulated through the furlough. But in aggregate this corporate austerity will depress demand. The likely outcome is a 90% economy, running far below normal levels. A second hazard to reckon with is fraud. Extended booms tend to encourage shifty behaviour, and the expansion before the covid crash was the longest on record. Years of cheap money and financial engineering mean that accounting shenanigans may now be laid bare. Already there have been two notable scandals in Asia in recent weeks, at Luckin Coffee, a Chinese Starbucks wannabe, and Hin Leong, a Singaporean energy trader that has been hiding giant losses (see article). A big fraud or corporate collapse in America could rock the markets' confidence, much as the demise of Enron shredded investors' nerves in 2001 and Lehman Brothers led the stockmarket down in 2008. The most overlooked risk is of a political backlash. The slump will hurt smaller firms and leave the bigger corporate survivors in a stronger position, increasing the concentration of some industries that was already a problem before the pandemic. A crisis demands sacrifice and will leave behind a big bill. The clamour for payback will only grow louder if big business has hogged more than its share of the subsidies on offer. It is easy to imagine windfall taxes on bailed-out industries, or a sharp reversal of the steady drop in the statutory federal corporate-tax rate, which fell to 21% in 2017 after President Donald Trump's tax reforms, from a long-term average of well over 30%. Some Democrats want to limit mergers and stop firms returning cash to their owners. For now, equity investors judge that the Fed has their back. But the mood of the markets can shift suddenly, as an extraordinary couple of months has proved. A one-month bear market scarcely seems enough time to absorb all the possible bad news from the pandemic and the huge uncertainty it has created. This stock market drama has a few more acts yet.■ [link] [comments]  |
| Top JPMorgan Investment Officer: It Will Take '10 to 12 Years' for U.S. Employment Levels to Return Posted: 07 May 2020 04:06 PM PDT |
| Sweden has Avoided a Coronavirus Lockdown. Its Economy Is Hurting Anyway. Posted: 07 May 2020 07:05 PM PDT So Sweden, the country everyone uses as the 'open' comparison in the Western World, is only fairing slightly better that the rest of the European economy. [link] [comments]  |
| Perhaps the most relevant excerpt from one of Ray Dalio's book Posted: 07 May 2020 10:44 PM PDT "In the early stages of a bubble bursting, when stock prices fall and earnings have not yet declined, people mistakenly judge the decline to be a buying opportunity and find stocks cheap in relation to both past earnings and expected earnings, failing to account for the amount of decline in earnings that is likely to result from what's to come. But the reversal is self-reinforcing. As wealth falls first and incomes fall later, creditworthiness worsens, which constricts lending activity, which hurts spending and lowers investment rates while also making it less appealing to borrow to buy financial assets. This in turn worsens the fundamentals of the asset (e.g., the weaker economic activity leads corporate earnings to chronically disappoint), leading people to sell and driving down prices further. This has an accelerating downward impact on asset prices, income, and wealth." Big Debt Crises, Ray Dalio [link] [comments]  |
| "over-allocation of smart people in finance and law" Posted: 08 May 2020 01:52 AM PDT Elon was on Rogans podcast again and Elon said something interesting about how many smart people start working within the realms of finance instead of something that actually produces something like engineers etc. Because moving money around the stock market dosen't really create anything but profits/losses. Is he right about this or is he missing something? [link] [comments]  |
| US weekly jobless claims total 3.169 million, bringing seven-week tally to 33.5 million Posted: 07 May 2020 09:13 AM PDT
[link] [comments]  |
| Neiman Marcus files for Chapter 11 Posted: 07 May 2020 07:29 AM PDT https://www.wsj.com/articles/neiman-marcus-the-retailer-to-the-rich-stumbles-into-bankruptcy-11588860617?shareToken=st0c3b5fd320da42bfa2097c4e9e3d23e2, Sorry about the paywall -Neiman Marcus, the Retailer to the Rich, Stumbles Into Bankruptcy -Squeezed by debt and closed stores, luxury retailer files for chapter 11 during coronavirus pandemic The bankruptcy filing, in the Southern District of Texas, Houston Division, seeks to eliminate $4 billion of roughly $5.1 billion in debt. The creditors will become majority owners of the retailer, which has been controlled by private-equity firms. Neiman isn't planning mass store closings or asset sales as part of the restructuring. [link] [comments]  |
| Investing in bitcoin without technical failure risk or theft risk Posted: 08 May 2020 12:11 AM PDT I think bitcoin is a solid hedge. However, I don't want to store any serious amount on my own hardware (an electrical problem destroying thousands and thousands in bitcoin sounds like a nightmare) I've also seen enough issues with stuff like Mt.Gox in the past to online wallets. That being said, maybe it's mainstream enough and enough government interest to provide more security in trust in online platforms? Is there an online platform these days (coinbase, robinhood, etoro, whatever...) that could be used with confidence for serious investments? Another thought would be to use something like an ETP to invest in it. Bonus points if it's something where there is less tax concern. [link] [comments]  |
| Nasdaq rallies more than 1%, closes positive for 2020 Posted: 07 May 2020 01:03 PM PDT |
| There might be a logical reason to why the markets keep going up Posted: 08 May 2020 12:26 AM PDT Many people seem perplexed about this fact. Bad news should mean that the market should go down. Problem is, bad news means more action from the state/fed. One action is as we all know 0% interest rates. What return do you need to make a profit with 0% interest rates? Anything above 0. This means that if you can borrow money at 0% and expect a return of 0,000001% you are making a profit. The Fed saying that they will do everything to get full emplyment back means that some investors see the doom and gloom headlines as a confirmation that the Fed will keep rates low. This signals that it's worth borrowing money to put into the market, because any return above 0 is worth it. The only question is how long this will last. My guess is when positive news starts taking the overhand, investors will scale back their risk. Simply because the 0% interest rate and state action is less likely to last as long the more positive the sentiment gets on the economy. Sentiment will be more positive in the news and stocks will be going down. People will say that it's rigged - but it's not. It's just how the markets work, even if you hate it. At least this is how I interpret the current situation and I am short on the market. Unless Fed and State turns positive in their sentiment, my investment is pretty much screwed. But I'm aware of this and I could of course be wrong. No clue if anyone agrees with me on this, but this is what I think is happening currently. [link] [comments]  |
| Who is buying right now and why? Posted: 07 May 2020 05:08 PM PDT Can a bull please explain to me why you are so bullish right now? Are any bulls just riding the wave and planning to take profits before Q2 earnings? I feel like everyone is so lost as too why the market is going up and a ton of people are on the sidelines. Is the FED really this powerful? I just don't see any value out there right now with all the uncertainty ahead of us. [link] [comments]  |
| Uber loses 3 billion - Stock up after hours. Posted: 07 May 2020 04:15 PM PDT 3 billion is pocket change loss in a quarter as they did talk about the rebound..atleast 30 billion loss a qtr then (maybe) the stock will go down. [link] [comments]  |
| Why would someone buy negative yield bonds to hedge deflation? Posted: 07 May 2020 09:27 PM PDT In a deflationary environment, wouldn't cash be better than a negative yield bond because of the increased purchasing power of the dollar? Example: You have $100 and prices fall 2 percent in one year You now effectively have $102 You spend $100 on a 1 year bond with a - .25% yield in the same deflation environment You now have $99.75 which effectively becomes ~ $101.75 Am I missing something? [link] [comments]  |
| Airline Companies unlimited flights question. Posted: 07 May 2020 04:36 PM PDT I remember back in the day Jet Blue offered unlimited flights anywhere they flew for like $600/month. I think you still had to pay for bags, but I am not sure what the exact term were. Does anyone remember the promotion and why it did not work? Do you think that airlines will or may offer a similar type plan. Do you think the public will bite. [link] [comments]  |
| Posted: 07 May 2020 08:07 PM PDT Would ideally like to both learn something and be entertained! [link] [comments]  |
| Real estate investors, what are some tips for someone just starting out? Posted: 07 May 2020 03:52 PM PDT Tell us your story with real estate and how it's going for you ? What are someone things you wish you knew before you started? [link] [comments]  |
| Uber Sees Path to Profitability After Blow From Coronavirus Posted: 07 May 2020 07:11 PM PDT |
| Posted: 07 May 2020 07:31 AM PDT |
| Posted: 07 May 2020 04:03 PM PDT What are your thoughts about this stock? I understand that oil is still the major player for when it comes to the energy sector, do you think its going to take over oil like oil taking over coal? [link] [comments]  |
| Marketrip's Mobiletrader? Is anyone using it? Posted: 08 May 2020 01:19 AM PDT I am a newbie at Marketrip and I have never used their Mobiletrader before. This is what they claim: Trading at your fingertips, wherever, whenever. You can have all the benefits of the web platform, directly on your mobile. Download the Marketrip mobile app for iOS and Android, and enjoy the same cutting-edge design, functionality, tools and features that you are used to! I need some real advice here. Is it the same as the desktop experience or far from it? [link] [comments]  |
| Great Article on the Basics of QE and Inflation Posted: 07 May 2020 09:19 AM PDT SeekingAlpha can be hit or miss, but here's a phenomenal piece around how quantitative easing compares to other forms of financing governments employ. It also includes a discussion of why a variety of factors (e.g., technology, labor trends, asset prices, demographics, etc.) are preventing the inflation we'd normally expect with so much QE. It's a long article, but definitely worth the read. [link] [comments]  |
| Why are margin rates so bad at major brokerages? Posted: 07 May 2020 10:50 PM PDT When I look into investing with margin as say Shwab or Vanguard the rates are somewhere between 6-10%. However at smaller places like m1finance I can get rates around 2%. So what is the deal, is there extra security somehow through insurance at these big firms or are they just charging more to discourage using margin? [link] [comments]  |
| You are subscribed to email updates from Lose money with friends!. To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
| Google, 1600 Amphitheatre Parkway, Mountain View, CA 94043, United States | |
No comments:
Post a Comment