• Breaking News

    Saturday, May 2, 2020

    Musk tweet knocks $14bn off Tesla market value Investing

    Musk tweet knocks $14bn off Tesla market value Investing


    Musk tweet knocks $14bn off Tesla market value

    Posted: 01 May 2020 10:57 AM PDT

    Article: https://www.ft.com/content/90eca82e-498e-4145-91a7-6b19cfe49170

    Elon Musk tweeted a complaint about Tesla's share price that wiped $14bn off the company's stock market value on Friday morning.

    Tesla did not immediately confirm whether Mr Musk's tweet had been given legal clearance, and did not respond to a question about whether the company currently has a general counsel. Tesla lost three general counsels last year, one of them quitting after only two months. The Tesla boss, who has 33m followers on Twitter, issued his curt verdict on his company's shares early in the morning in California on Friday, writing: "Tesla stock price is too high imo." 

    Within moments the Tesla share price started sinking, dropping 10 per cent over the course of an hour before recovering slightly. The sharp move comes in what has been a hugely volatile period for Tesla's shares. They slumped more than 60 per cent after coronavirus hit, but then rebounded by 120 per cent.

    submitted by /u/bennzo1238
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    Berkshire Hathaway, with a portfolio of value investments and $100B+ cash on hand, has under-performed the market during the Covid crisis.

    Posted: 01 May 2020 08:52 AM PDT

    I think it has to be considered a personal milestone when your portfolio could buy 1 share of BRK-A. Today is that day for me!

    But while noticing that, I also noticed that BRK-A, which has tracked the S&P 500 fairly closely in recent years has lagged in the last month of the recovery. BRK-A put in its all-time high close on the same day the market peaked (February 19) at 344k vs. 3386 for the market. However BRK-A is currently trading at 276k vs. 2843 for the market, which represents about a 3.5% under-performance, all of which accrued during the month of April. Berkshire's defensive posture paid off during the crash, as it bottomed at around -30% vs. the market's -35%, but that seems to have reversed in April. I'm not sure what that means for the market, but I found it interesting.

    submitted by /u/msnf
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    Jeffrey Gundlach: "I am told the Fed has not actually bought any Corporate Bonds"

    Posted: 01 May 2020 11:30 PM PDT

    "I am told the Fed has not actually bought any Corporate Bonds via the shell company set up to circumvent the restrictions of the Federal Reserve Act of 1913. Must be the most effective jawboning success in Fed history if that is true." - Jeffrey Gundlach

    Twitter link: https://twitter.com/TruthGundlach/status/1256352949787176960?s=20

    Once this is more widely reported expect it to affect the stock market. Maybe the Fed is just waiting to step in once there is more volatility? Who knows.

    Perhaps this is one of the reason why there has been some market activity. After all JNK is down over 2% today.

    submitted by /u/951052736
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    Does The Fed cutting interest rates cut both ways?

    Posted: 01 May 2020 11:11 PM PDT

    So I had a little bit of an aha moment looking back at previous crashes, and reading news articles from 2008 and 2009. This may have been obvious to most of you guys, but it wasn't immediately to me.

    So The Fed is cutting interest rates and doing QE to encourage lending and trying to maintain liquidity in the credit market. This drives down the yeilds on basically everything. There was been a pretty consistent downward trend in 10Y Treasuries since 2001 (maybe even earlier?).

    10Y Treasuries had 5% yields when folks were experiencing the 2008 crash. Am I right in assuming that investors back then may have been more likely to rebalance their portfolios into safer assets because yields were still semi attractive, over just holding cash or equities? Would that temper volatility at all?

    In low yeild environments are people encouraged to just switch back and forth between equities and cash, trying to time the markets? Have crashes over time become more steep and violent because of this?

    submitted by /u/Meegs25
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    With 57% of companies reporting, projected corporate earnings on the S&P 500 for Q1 are 23% lower than Q1 2019.

    Posted: 01 May 2020 08:54 AM PDT

    Hertz stock has plummeted, and now they are initiating a fire sale. What does this mean for investors?

    Posted: 01 May 2020 09:21 AM PDT

    Recently I was considering buying a bunch of stock at Hertz because the price of the stock was $3, and it really seemed like the company was going to recover after the coronavirus epidemic was over. But now that they have missed their lease payment and are initiating a fire sale, I'm very uncertain of the value of their stock. They're basically selling a lot of their inventory on May 4th, much of their used cars, at extremely low rates. obviously that doesn't spell out good things for the company because they are going to lose a ton of money, but they are just trying to get as much as I possibly can.

    are they prepping for bankruptcy, or is this some sort of tactic that businesses use to get back on good footing??

    submitted by /u/verdict0224
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    Are there any long term value investors here?

    Posted: 01 May 2020 01:17 PM PDT

    I feel like this sub is pretty much dominated by people looking to make a quick buck as appose to holding equities for 5+ years.

    Are there any other subs that focus more on value investing then day/swing trading?

    submitted by /u/BuyLowSellNever
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    Which assets are negatively correlated to the S&P 500 but have positive returns over the long run?

    Posted: 01 May 2020 10:40 AM PDT

    Do you guys know of any assets that are negatively correlated to the S&P 500 over long time periods but have positive returns? I'm looking to further diversify my portfolio.

    Note: I'm not looking for assets that are not correlated to the S&P 500, I'm specifically looking for assets that are negatively (if possible almost perfectly negatively) correlated to the S&P 500. I'm not looking for short positions either. Simply assets (stocks, bonds, etc...) that are different from the S&P 500 but negatively correlated to it.

    submitted by /u/ChengSkwatalot
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    Non-EU broker available for EU citizens

    Posted: 02 May 2020 02:53 AM PDT

    Hello,I would like to buy some dividend ETFs which doesn't follow EU regulations, so it's not possible to buy them with roker from EU.

    Can you please recommend me any non-EU broker where I can create account as a EU citizen and use it without any problems? My requirements:

    • Offer ETFs which don't follow EU rules (e.g. $SPY, $VYM, $DVY, ...).
    • Creation of account from EU without any problems.
    • Fees suitable for small (but periodic) investments.
    • Reliability (the broker has some history, good experiences from EU investors, your own experience).

    Thank you very much for your recommendations.

    submitted by /u/michalmcz
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    Home in shelter and need your advice with IRA

    Posted: 01 May 2020 10:58 PM PDT

    With only $1,000 in money market for Vangaurd Roth IRA, how would you allocate this? I have a 401(k) that sits in a target 20xx fund.

    submitted by /u/mangocasio
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    Best platform to consolidate most of your finances

    Posted: 02 May 2020 02:39 AM PDT

    I was trying to create a list for a "One stop shop" for all financial needs, but I noticed something is always missing. Either the savings account is bad, day trading platform is bad, or Option trading is bad. Below are my best picks (Not in any order), but I want Reddit's input.

    • Charles Schwab: Checking, home loans, premium travel credit card, IRAs, taxable brokerage account, Option trading, and Day trading.

    • Bank of America: Checking, cashback credit cards, car loans, home loans, IRAs, taxable brokerage account, Option trading, and Day trading.

    • Alley Bank: Checking, high interest savings account, IRAs, taxable brokerage account, Option trading, and Day trading.

    • SoFi: Checking, personal loans, home loans, IRAs, taxable brokerage account, and Day trading.

    submitted by /u/InvestingNerd2020
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    Remdesivir approved for Emergency Use Act by FDA

    Posted: 01 May 2020 01:36 PM PDT

    Do hedge funds trade futures derivatives?

    Posted: 02 May 2020 02:31 AM PDT

    I mostly hear hedge funds trading options and a lot of other stuff hence the question.

    submitted by /u/fearofunknown1
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    MPC, XOM & CCL

    Posted: 02 May 2020 02:24 AM PDT

    What's everyone's thoughts on investing in companies such as MPC, XOM and CCL In this current time? I'm new to the world of investing, but to me it'd look like an obvious buying opportunity?

    submitted by /u/Bennknowles1
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    Gold vs Bonds

    Posted: 01 May 2020 08:11 PM PDT

    I don't see the point of owning bonds. The return rate is so low they barely beat inflation if that. A gold trust seems like a much better investment if you want to balance out your portfolio. Ray Dalio's fund currently has 6% of its portfolio in a gold trust.

    submitted by /u/BoxingChamp28
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    Hedge Funds and the S&P500

    Posted: 02 May 2020 04:09 AM PDT

    How much are hedge funds expected to beat the S&P500 to keep clients happy? I know this is fairly subjective because each client will have different needs, but I often hear of the S&P500 performing better than most hedge funds over any 5 year period. Warren Buffett even had that famous bet in which he ended up winning saying an index fund could beat Hedge Fund returns. And yet institutional clients and money continue to throw money at most hedge funds. So what is like an acceptable return for a hedge fund manager?

    For example, let's say the S&P500 finishes down 10% this year. Would a hedge fund breaking even YTD be considered good?

    submitted by /u/GrahamWillis95
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    Infrastructure Bill

    Posted: 01 May 2020 09:22 PM PDT

    Obviously a lot of infighting within congress about what the future holds but with talks of an infrastructure bill in the trillions, is there any insight from you guys on a long term buy in stocks like CAT, ASTE (price of oil so cheap lots of asphalt projects become more viable which lead to heavy sales of asphalt plants) , John Deere and other heavy equipment manufacturers??

    submitted by /u/CMISF350
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    The case for shorting Intel.

    Posted: 01 May 2020 07:12 AM PDT

    While Intel has had a great run over the past decade, I believe we've reached an inflection point. They've already had to start laying off employees: https://investorplace.com/2020/01/intel-layoffs-2020-things-to-know/

    With AMD breathing down their back, Intel is lowering prices on their server chips lowering profit margins which won't be coming back anytime soon: https://www.anandtech.com/show/15405/intel-cuts-xeon-prices

    Intel is constantly talking about how they're going to be shipping 7nm in 2021 when they have failed to get their 10nm process working for almost 4 years now past its original expected release date. It's clear Intel's process has stagnated, and their choice to stick with manufacturing their own CPUs has now turned from advantage to disadvantage as it's competitors are able to focus on design while leaving the process improvements to TSMC: https://www.pcworld.com/article/3394398/intel-commits-to-shipping-7nm-chips-by-2021-an-aggressive-change-of-pace.html

    I'll be honest in saying that I'm probably somewhat biased here in that I don't trust business CEOs to know how to run a tech company properly. As an engineer, I know how important it is that you actually understand your products and the engineering that goes into CPU design, and so I prefer when the CEO actually has that capability.

    Intel hasn't been run by an engineer for quite some time at this point. Just look at Intel's current CEO Bob Swan. He is literally the definition of the "MBA business type executive". We compare that to companies like AMD and Nvidia, which are both headed by strong technically minded engineers and the differences in management are like night and day.

    All of these are reasons why I believe Intel has largely peaked as a company, and my thesis for why Intel is a good stock to go short on right now

    submitted by /u/ilikepancakez
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    HTZ is going bankrupt, but what about their sister company HRI?

    Posted: 01 May 2020 08:03 PM PDT

    Hertz rental cars is falling pretty hard.

    I have stock in Herc holdings. I was wondering if I should sell that shit, or stay in long term?

    It's only 10 shares, but still

    submitted by /u/Yossi25
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    2020 Berkshire Hathaway Annual Meeting

    Posted: 01 May 2020 08:45 AM PDT

    The 2020 Berkshire Hathaway Meeting is tomorrow. As someone who enjoys going to this event every year, I'm disappointed the in person aspect is cancelled. However it will be streamed online at yahoo finance. The link to register for the 2020 stream is below. I also included a link to last years Q/A session from CNBC for those interested.

    https://youtu.be/69rm13iUUgE

    https://youtu.be/cfEC88E2R08

    submitted by /u/gmoney75757
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    Forward thinkers, what are the next up and coming low cap tech firms you place bets on?

    Posted: 01 May 2020 12:35 PM PDT

    With all the COVID news circulating, I thought it be fun to change it up and talk about which up and coming tech firms you're looking forward to investing in.

    submitted by /u/UpgradeNotSure
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    Should you mainly invest in the country/market where you are based?

    Posted: 02 May 2020 04:32 AM PDT

    Hi!

    Sorry if the title is confusing and if the question is stupid.

    I'm obviously a beginner and have been building my portfolio mainly with ETFs. I'm based in Sweden but I find the US market more interesting and was planning to invest a majority of my portfolio in the SPY and a bit of QQQ (or the EU equivalents).

    However, since I'm based in Sweden, are there any reasons that my portfolio should focus on my home market instead, for example a Swedish index? I understand that there is a currency risk when investing abroad, but not sure if there is something else to consider.

    TLDR: Are there any reasons that a portfolio should be based on ETFs and companies in your home country simply because that is where you are based? Or is a portfolio with 80% in the US and 20% internationally fine for a non-US investor?

    Thanks!

    submitted by /u/Horrawful
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