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    Home Unlabelled US personal savings rate hits record 33% in April, up from 12.7% in March Investing

    US personal savings rate hits record 33% in April, up from 12.7% in March Investing

    May 30, 2020

    US personal savings rate hits record 33% in April, up from 12.7% in March Investing

    US personal savings rate hits record 33% in April, up from 12.7% in March

    Posted: 29 May 2020 05:48 AM PDT

    For Book lovers, few good investment books

    Posted: 29 May 2020 11:51 PM PDT

    1. The Intelligent Investor
    2. A Random Walk Down Wall Street
    3. Rich Dad Poor Dad
    4. The Warren Buffett Way
    5. One Up On Wall Street
    6. Money: Master The Game
    7. Coffee Can Investing (my fav)

    Reading is good but be dynamic in thoughts

    submitted by /u/Mr_Jeewantha
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    Is there an alternative to SPY/VTI/VOO/etc that pay ~0.1% dividends instead of ~1.5%?

    Posted: 29 May 2020 06:38 PM PDT

    Is there an alternative to SPY/VTI/VOO/etc that pay ~0.1% dividends instead of ~1.5%?

    I ask this for tax purposes.

    Maybe its possible with a different domicile?

    Question 2:

    (I'm not very familiar with long term investing)

    say, i am retired. because of my tax residency, i pay 0% tax on capital gains. i pay 50% tax on dividends. my portfolio is my only source of income. what would you do if you were me?

    if i was taxed 25% on dividends and capital gains, i'd just buy SPY and hold long term, unless i learn something better. it seems idiot proof.

    submitted by /u/KeyFondant6
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    Tax Question from a youngster

    Posted: 30 May 2020 12:52 AM PDT

    Hey everyone, question about income taxes with trading.

    Question might sound silly, but I have to say it is very confusing- to look up trustworthy trading related taxation information on the internet. They are all so contradicting. So here I am, looking for answers.

    Let's say I deposit $10k to my account, and at some point I am up at 20k. Then I am down to 3k and I withdraw the amount (3k) from my account. All these are day trades within 2-3 months with only few symbols. (SPY, DIS, BABA and few more).

    Would I have to pay taxes on $10k profit? Or I won't be taxed, as in reality I realized $7,000 loss?

    Now I can see what happens when you do something without actually knowing it :) But this will be a lesson for the future.

    Thank You for your time!

    submitted by /u/Seaside101
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    AbbVie had a new med FDA approved today

    Posted: 29 May 2020 09:59 PM PDT

    I learned much more than I ever wanted to know about menstrual bleeding and fibroids after googling it. AbbVie just had a new med given FDA approval shortly before the marker closed today. I asked my wife, a nurse, how common this condition was and she said it's very common and if it really works, it will be a home run. https://www.fiercepharma.com/pharma/abbvie-scores-game-changer-nod-for-oriahnn-uterine-fibroids This article taught me things I never wanted to know BUT this is HUGE market with a huge upside for AbbVie. Call prices skyrocketed about 30 minutes after the news was released.

    submitted by /u/Phenom462
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    List of Headwinds the Current Liquidity Rally is Ignoring

    Posted: 29 May 2020 10:08 PM PDT

    Not sure if these will ever come to a head and affect the markets, but here's stuff that is negative but have not been reacted to:

    1. The forward outlook now is much worse than it was before the pandemic at the same equity prices. Market seems to be taking "better than expected" news way too far. The current rally is 100% P/E expansion. Otherwise, you would need to argue that the market is pricing in something like 50% earnings growth over the next 2 years, which is a joke.

    2. Virus cases are spiking again. We are now seeing a 3rd global wave (past two days have shown record number of new cases). First wave was China and parts of Asia. Second wave was US and Europe. Now, we're seeing Russia, India, and South America getting hammered. Will this ping pong back to us in a 4th wave? Nobody knows for sure. Also, US cases have been ticking up these past couple of days. Will see in a week if reopening will cause another spike.

    3. Despite all the Fed pumping, these are mostly loans, not grants. As a result, we're continuing to see bankruptcies, with Hertz being the most notable recent casualty. When these loans come due, and all the deferred rent and mortgage payments get called, we'll see if things will seize up. Also, Fed liquidity will run out at some point. It's kind of a catch-22. If markets are going up, the Fed is not going to do anything. Eventually, that money will run out. We'll need another crash before they step back in. If inflation ever spikes, then the Fed is done.

    4. The market is acting as if US/China relations are not worsening. The crazy rally today after no immediate sanctions and tariffs is ignoring the direction things are going. Despite the lack of action, the language used today by Trump made it sound like he was declaring war. The Chinese care a lot about face and won't simply ignore this. Hong Kong is going to become a tinderbox, particularly in June when the Security Law becomes official. The recent language regarding Taiwan is not promising either (a general said earlier today that they would use military force if peaceful annexation becomes impossible).

    submitted by /u/Blizzgrarg
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    Is 10% ownership with respect to the class of stock you own or total shares of any class?

    Posted: 29 May 2020 10:32 PM PDT

    Ex.

    Company ABC has 70mm Class A shares outstanding, and 30mm Class B shares outstanding with voting power the only difference between them. A fund F owns 7.1mm Class A shares. My current understanding based on reading form 4s, is that they must file a form 4 for any transaction involving the specific security for which they breach the 10% threshold, i.e., Class A shares. So even though they own less than 10% of the entire float, they do own more than 10% of total Class A shares, and are thus an insider with all the obligations that come with it. Is this correct?

    submitted by /u/Itdoesntmatteronebit
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    Lululemon - why the lack of share price growth from 2011-2017?

    Posted: 29 May 2020 05:54 PM PDT

    Hi everyone.

    I'm curious as to why Lululemon's share price failed to grow from 2011 to 2017, but suddenly rocketed in 2018.

    2011..... .....2019

    179 287 376 391 376 369 421 456 706

    This is their history of net income. In 2012 they reached a share price of approx $75. This remained stagnant over the next 4 or so years, which is understandable because net income growth was essentially non existent after 2013. After 2016, their net income started to grow again. In 2019, it reached 706.

    The growth from 179 to 287 (2011 to 2012) is about 60%. The growth from 421 to 706 is roughly 70%.

    Yet the share price growth from 2011 to 2012 was about 120%, compared to the share price growth from 2017 to just before covid of 358% ish.

    Would someone be able to give me some insight into why the share price growth is so different, even though earnings growth was relatively strong in both? Or is this a case of the market being inefficient?

    Thanks!

    submitted by /u/ltdan1999
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    Does Vanguard put Personal and Employer sponsored plans under the same account?

    Posted: 29 May 2020 04:25 PM PDT

    Hi all,

    I currently have a 401K through Vanguard that my employer and I contribute to. If I were to open a personal Roth IRA through Vanguard would I be able to have both the 401K and IRA on the same account, or would I need two sets of login info?

    Thank you

    submitted by /u/26Jalapeno
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    Levi Strauss - Is it a buy?

    Posted: 29 May 2020 01:21 PM PDT

    Hi everyone. I'd love to have some counter points to what I've found out about Levi's so far.

    It seems to me that this is a great business at a decent price. It has an economic moat, its brand. Levi's is instantly recognisable and has been around for nearly 170 years. When people think of jeans, they think of Levi's, and I don't see this going away anytime soon. People will always buy jeans and it would take alot for someone to dethrone them as the king of denim. I've seen some mentions online of 'athleisure' being a potential threat to Levi's. However, for me, these are two different purchases for a consumer. People like to be comfortable when out and about - going to the gym, going to get some food/going to a cafe - and this is where athleisure comes in. But I do believe that there will always be a place for jeans. People won't always want to be wearing athleisure wear.

    Financials:

    • Impressive return on equity in the past few years. ROIC has also been solid. To me, this says that management knows what they are doing.
    • Current ratio of nearly 2.5 (2019). Nearly enough cash to pay off long term debt.
    • Long term debt was quite high in 2015, however management has managed to bring it down quite steadily. D/E is around 0.7 now, which isn't perfect, but isn't high.
    • Gross margin has increased around 4% in the past 10 years, demonstrating that competition is not too much of a concern and that consumer loyalty is strong.
    • Sales and net income has increased nicely over the past few years (and still grew in Q1 2020 despite covid)

    Management:

    • Levi's CEO Chip Bergh is very experienced and was very successful while working at P&G. In April 2019, he was named one of the World's Greatest Leaders by Fortune Magazine, coming in at No. 16

    Levi's also have international diversification. Roughly half of their revenues come from outside the US. They have been able to adapt their product to different countries effectively.

    In addition to their strong business performance, it seems Levi's is adopting a broader business purpose. Management is taking sustainability seriously and this is something that investors are starting to care more about. They have been progressive with respect to the LGBTQ community and have called for changes in the way guns can be purchased.

    All in all, it seems like a great business that has a bright future ahead. At a price of approx $13 (and p/e of 14), I think Levi's could be a good buy. Other companies, such as VF corp and Ralph Lauren have a much higher p/e (around 40 and 23 respectively). So in comparison, Levi's seems like a good deal.

    Anyway, it would be great to have a discussion around this. I'm not very experienced at analysing companies, but I do understand the principles behind picking businesses with a long term perspective (value investing). Thanks!

    submitted by /u/ltdan1999
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    When Should the Fed announce that Infinite QE is Done?

    Posted: 29 May 2020 03:53 PM PDT

    We all know the famous line from 2008 "If everyone knows you have a bazooka in your pocket, you might not have to use it".

    When is the right time for the Fed to announce they are putting the bazooka(Infinite QE) back in safe storage?

    submitted by /u/amygdalad
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    Why Spy will reach 320 next week and ATH by mid June

    Posted: 29 May 2020 01:13 PM PDT

    1. Tons of bad news over the past few days only brought Spy down -0.50% and right when the Officer got arrested and Trump news wasn't as bad the market pumped 4$ in 1 min to 304 meaning Good news pumps much more than dumps

    2. FOMO tons of people are jumping on stocks rn watching the market grow without drops causing the market to inflate more which will only continue

    3. Alot more re opening news is coming in June (Disney, more states, NYC) these will be massive pumps likely to 320

    4. Fed has hinted at more stimulus and likely more packages for business's (PPP) more pumping, also unemployment benefit sill have another 2 months left

    5. Stores are reopening and the Virus news is dying, people are out and shopping without care, more positive outlook on the horizon

    submitted by /u/flarereddit1
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    Bond funds: what's inside?

    Posted: 30 May 2020 03:15 AM PDT

    Where do you find content of bond funds and the credit of the bonds? I am looking at the Morgan Stanley Euro Corporate Bonds but the documentation does not seem very transparent to me (there is only a general risk rating based on the historic performance, very useful with the today situation....... ).

    Do you know if the proper documentation to see what's inside the fund is available?

    https://morganstanleyinvestmentfunds-website.publifund.com/en_CH

    submitted by /u/cenaluc
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    Based on past evidence and unbiased reasoning, how will the election results potentially impact markets?

    Posted: 30 May 2020 02:49 AM PDT

    Not really wanting this to become some tedious political debate: I'm investing in ETFs and wondering what impact, if any, the US election will have on markets.

    submitted by /u/SubjectsNotObjects
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    Was anyone net short and got burned?

    Posted: 29 May 2020 04:18 PM PDT

    I was. It's been painful. I was short mostly individual stocks with crappy business models and high cash burn, but the last month or so has been painful. I'm not closing out my shorts as I still think there's fragility in the markets, but I'm curious to see what other bears are actually doing/thinking.

    submitted by /u/time2roll
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    Uber's Italian division put under external administration by the italian government

    Posted: 29 May 2020 08:38 AM PDT

    Source:https://www.ansa.it/sito/notizie/economia/2020/05/29/caporalato-su-rider-tribunale-commissaria-uber-italy_6223c980-e5f8-4356-92db-4547553147a7.html

    The investigation is about Uber Eats' riders supposedly being illegally hired and mistreated.

    submitted by /u/ip15
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    Option trading on same day in Robinhood?

    Posted: 30 May 2020 01:03 AM PDT

    I usually do option trading like purchase option trading contract and sell upon profit if stock gains. I Don't wait for contract expiration. My Question is am I allowed to buy option contract and sell it on same day on robinhood app? Suppose if I buy 1 FB call option on monday can I sell that contract on same day? and if how many times am I allowed?

    submitted by /u/amitabhbachan1
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    Are the markets going to shrug off the civil unrest?

    Posted: 30 May 2020 12:51 AM PDT

    Would it be insane to think that markets are going to start shuddering among a 4 day (possibly plus) protest that has lead to complete anarchy? A lot more municipal damage has been done that private sector damage, but just asking if investors would get spooked from the complete chaos the US is spinning into or not?

    submitted by /u/thenotoriousbull
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    How do stock gain work if I only buy?

    Posted: 30 May 2020 12:27 AM PDT

    I am just getting started on investing and am doing tons of reading. for the most part I got the basics (I think.) Here is one I don't quite get yet:

    I opened a Roth IRA and I am not really interested in playing the game of buying low and selling high in this account seeing as this is my retirement plan and I am not trying to be too aggressive. Im investing in index funds with low cost and I shooting for 5%-6% percent annual average over let's say 30 years (which historically is more than doable with the funds I am looking at)

    Seeing as I am only interested in investing the $5500 limit I have an year, my question is when are those annual gain (hopefully the stock is up from when I bought it) distributed back into my account so I can reinvest it? Is it a specific date? Is that date the same for everyone? Again, I am talking scenario where I do NOT sell. Buying selling percentage I can calculate myself.

    Thank you all

    submitted by /u/thebarguys
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    Tax implications for Chinese stocks. K1 form?

    Posted: 29 May 2020 06:21 PM PDT

    Hello, I recently purchased Tencent stock (TCEHY) because I wanted to diversify my portfolio. However, I purchased this stock in a taxable brokerage account. I purposely purchased this stock after the ex-dividend date because I do not know what tax form I need to report this income. So, for the people who own tencent, what form (k1 or 1099-div) do you get from this company. Thanks.

    submitted by /u/Mryop42
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