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    Wednesday, June 10, 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: 09 Jun 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:

    • 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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    Small trader call buying made up more than 50% of total volume last week, the highest since 2000. Sundial Capital Research

    Posted: 09 Jun 2020 04:41 PM PDT

    Retail investors may have more of an impact than you guys think.

    Speculative excess has surged to the highest in at least 20 years among U.S. options traders -- and that's a negative for stocks over the medium term, according to Sundial Capital Research Inc.

    Traders established fresh bullish positions last week by buying 35.6 million new call options on equities, according to Sundial founder Jason Goepfert. That's up from a peak of 28.7 million in February, when speculative activity was rampant, he wrote in a note Monday.

    "Options traders make stunning bets on rising prices," Goepfert wrote. "This kind of activity has a strong tendency to lead to negative returns in the S&P 500 and other indexes over a multi-week to multi-month time frame."

    ...

    At the heart of the speculative activity are smaller investors, according to Sundial. Small trader call buying made up more than 50% of total volume last week, the highest since 2000, it said.

    Past instances when bullish small trader positions made up 45% or more of volume preceded a median loss for U.S. stocks of about 3% in two months time and 15% in a year, according to the note.

    "Small traders are pushing their luck in a major way," said Goepfert. "It seems increasingly risky to try to chase this rally along with traders who have traditionally been extremely reliable contrary indicators."

    Source: https://www.bloomberg.com/news/articles/2020-06-09/speculative-fervor-in-u-s-stocks-surges-to-stunning-levels

    submitted by /u/mikwow
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    [CNBC] Robinhood traders cash in on the market comeback that billionaire investors missed. One Chicago-resident flipped his sister’s stimulus check into nearly $10,000.

    Posted: 09 Jun 2020 08:30 AM PDT

    https://www.cnbc.com/2020/06/09/robinhood-traders-cash-in-on-the-market-comeback-that-billionaire-investors-missed.html

    One 26-year-old Robinhood trader made $1,500 in less than 24 hours betting on a beaten-down airline stock, while many so-called experts on Wall Street warned about buying into an overvalued stock market that was bound to tumble again amid the coronavirus pandemic.

    Last Thursday, Lequon Godbolt, purchased a call option for American Airlines that made him $200 on the millennial-favored stock trading app.

    After seeing reports that the airline was increasing domestic flying for summer travel, Godbolt bought another call option minutes before the close. When the market opened higher last Friday after a surprisingly positive jobs report, Godbolt raked in his profits.

    "I just started taking it seriously about two months ago," Godbolt — a New York resident— told CNBC. "I've been watching AAL since the beginning of that time and I felt eventually, once Covid relaxed, markets would move up."

    Godbolt is not alone is his success trading this market. One Chicago-resident flipped his sister's stimulus check into nearly $10,000.

    Robinhood traders lived up to their outlaw name during the coronavirus market downturn. The young investors booked profits — trading stocks with some of the best returns in the past two months — while other Wall Street veterans were left scratching their heads.

    "There's nothing like momentum begetting momentum," Tim Welsh, founder and CEO of wealth management consulting firm Nexus Strategy, told CNBC. "The aspect of just access is really driving a lot of this and the whole upward tick in the markets, again, just fuels demand."

    Young investors, like Godbolt, appeared to have a prescient understanding of the market, unlike the billionaire hedge fund managers who said stocks would retest their lows. Longtime investor Stanley Druckenmiller — who misjudged equities' comeback — said Monday that the market's strong performance over the last three weeks has "humbled" him and that he underestimated the power of the Federal Reserve.

    Even legendary investor Warren Buffett sold his stake in airlines during the pandemic. Of course, the Berkshire Hathaway chairman is a long-term, bargain shopper and the airline industry's long-term outlook is yet to be determined.

    V-shape after all? Signs are pointing to a V-shaped recovery — a sharp fall in economic activity followed by a dramatic rise — in the economy. This theory was rejected by economists and investors who found it unrealistic due to the detrimental ramifications of the mandated shutdown of the U.S. economy.

    Stocks have soared in June, helped by the historic Labor Department jobs report that showed the U.S. economy added a record 2.5 million jobs in May. Wall Street was calling for a decline of 8.3 million. The unemployment rate dropped to 13.3%, far better than the expected 19.5% rate.

    submitted by /u/uncle_dirk
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    160,000 Robinhood Traders Now Own Hertz Stock

    Posted: 09 Jun 2020 05:32 PM PDT

    https://blockworksgroup.io/blog/this-is-what-caused-hertz-to-pump-890-in-two-weeks

    TL;DR - Central bank policy and an influx of bored day traders have led to some truly whacky prices in markets, including recently bankrupt Hertz stock to pump 880%

    submitted by /u/MippoBWG
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    Cloud Data Firm Snowflake Confidentially Files for IPO

    Posted: 09 Jun 2020 12:23 PM PDT

    "Apple will announce move to ARM-based Macs later this month, says report"

    Posted: 09 Jun 2020 04:27 AM PDT

    https://www.theverge.com/2020/6/9/21284960/apple-arm-based-macs-wwdc-2020-report-intel-laptops-desktops-power-efficiency

    This could be rumors, but the writing has been on the wall for quite a while. This doesn't look too good for Intel but then again Intel has been struggling for quite some time. Does anyone think Intel may try to make a stronger push toward the datacenter market as it starts to cede in the PC chip area? Or do you think Intel's PC customers are not very likely to follow Apple's footsteps either?

    submitted by /u/bigchungusmode96
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    Does anyone understand the Chinese stock market ? Historically?

    Posted: 09 Jun 2020 10:53 PM PDT

    Specifically I'm asking about 2 instances where their SSE composite surged then abruptly crashed.

    In October 2006 their SSE composite index was at 1700.00 it effectively tripled in one year so in October 2007 it was 5818.00

    In May 2014 the SSE composite was 2026.50 in exactly 1 year it was at 5000.00

    Both of these led to unnatural peaks and abrupt crashes .

    Does anyone know what exactly occurred in these instances and why ?

    submitted by /u/Philosothink
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    Do you think Robinhood and Stash app will last for years?

    Posted: 10 Jun 2020 02:02 AM PDT

    I literally just started investing on June 5. I put $2000 in various stocks between Stash and Robinhood, and already gained $200.

    My husband is more risk averse than I am, so he's refusing to let me put more money in atleast until we both start working again (I'll admit the $2000 was from unemployment), which is a shame because clearly the $7000 we have in the bank isn't collecting interest. I understand where he's coming from, better to have 6 months of expenses saved, and rest in investing.

    Anyhow, I love the ease of using these apps, but I'm worried about using them for long term investing because I'm concerned that one day Stash and Robinhood will shut down, and there goes the money.

    I plan to invest long term atleast 20 years. I REALLY started late at age 33, so I'm trying to play catch up with building our networth. My dream is to have both of our kids well off, I'd be fine dying in poverty if it means my kids are "Fuck you money" rich.

    If the apps disappear, say tomorrow, is there another way I can invest? So far the only thing I know is to maybe go to my local bank and ask them for investing help, but I don't think banks are the way to go.

    submitted by /u/Distinct_Recognition
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    Can someone with a more sophisticated understanding of finance explain to me why inflation is not projected?

    Posted: 09 Jun 2020 11:53 PM PDT

    I'm looking at the money supply charts from FRED (https://fred.stlouisfed.org/series/M2) and it's pretty clear that a lot of new money is entering the system because of relief efforts by the US fed. In addition, GDP has contracted. I always thought inflation rate was roughly supposed to be a function of an increase in money supply (more dollars equals less value per dollar) as well as productivity measured in GDP (more GDP means more supply of goods and services, counteracting inflation). Yet despite a dramatic surge in money supply and drop in GDP, most articles I'm reading are forecasting either low inflation or even deflation for 2020.

    submitted by /u/mikhael4440
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    Looking For Exposure To Olive Oil!

    Posted: 09 Jun 2020 07:24 PM PDT

    Anyone know of publicly traded companies that produce olive oil? Overproduction across the world has kept prices low for a while now, but I believe it may have hit a bottom!

    Olive oil prices for reference: https://fred.stlouisfed.org/series/POLVOILUSDM

    •Tunisia suffering from oversupply/less demand.

    https://www.google.com/amp/s/www.washingtonpost.com/world/middle_east/tunisia-is-one-of-the-worlds-top-olive-oil-producers-but-now-its-facing-a-crisis-of-too-much/2020/03/07/b75d868e-58e1-11ea-8efd-0f904bdd8057_story.html

    •Overproduction across the EU

    https://www.google.com/amp/s/www.wsj.com/amp/articles/trade-tensions-market-glut-press-upon-olive-oil-prices-11575196201

    Recent signs of possible supply issues:

    •Warmer weather in Greece negatively impacting olives.

    https://www.google.com/amp/s/www.oliveoiltimes.com/production/unusual-spring-heat-brings-early-problems-for-greek-farms/82845/amp

    •Economic crisis in Syria may have a negative impact on its top export, olive oil.

    submitted by /u/jejakqmqm
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    Alibaba group

    Posted: 10 Jun 2020 12:12 AM PDT

    I am able to invest/save up to 500$ per month. Right now I am oriented on cash(no one knows what will be next) and investing around 100-200$ on stocks per month. I am thinking about buying BABA stock for long term 10+ years. What do you guys think? Will it continue to grow? My overall experience in investing is around 1 year.

    submitted by /u/paskalnikita
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    The price of the dollar

    Posted: 10 Jun 2020 01:17 AM PDT

    Hi.

    I'm from Denmark and I am relatively deep into US stocks at the moment. All my stocks are green, but I am a bit afraid of want the FED's pumping of the market, the unrest in the US and potential election year etc. is doing to the dollar. Is it inevitable that with the current monetary politics carried out by the FED, that the dollar won't take a hit? The 20th of March, (I know that the price of the dollar was particularly high that time, but still) the dollar has fallen 7% compared to the Euro, which means that all my US stocks, have lost 7% of its value essentially. What are your "predictions" for the future price of the dollar compared to the euro? The thing is, the eurozone is not really doing better at all, to the contrary, but the euro has performed better lately? My background isn't finance/economics as you probably can tell :-)

    submitted by /u/chrillefar
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    Really interested in biomedical stocks

    Posted: 09 Jun 2020 08:44 PM PDT

    Hey guys! very new here.

    I have been interested in investing in a few industries that I strongly believe will be profitable in the future. I have always been interested in CRISPR and believe it will be the next big thing in medicine with all of its promising results.

    Which are some companies you think are worth looking into? And if you could kindly explain why?

    submitted by /u/Grose040791
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    Do you think AMC Theatres can survive the pandemic without going bankrupt?

    Posted: 09 Jun 2020 03:04 PM PDT

    https://www.marketwatch.com/story/amc-reports-22-billion-q1-loss-2020-06-09?mod=mw_quote_news

    I should note that I'm an investing n00b, but I don't see how AMC can survive the pandemic without bankruptcy. Per the above article, AMC Entertainment Holdings Inc. reported a Q1 2020 loss of $2.2 billion. If I remember correctly, shutdowns didn't really start occurring until mid-March, so that means they were operational for 2.5 months, and still losing money. Also,

    "In our two largest territories, we are currently planning to reopen almost all of our U.S. and U.K. theatres in July" to be ready to show the new film "Tenet" that is slated for release on July 17 and "Mulan," the Walt Disney Co. film slated to be released July 24.

    That sounds good, but I'm pretty sure that to keep patrons safe, full capacity in theatres will not be allowed until the pandemic is over. Also, even with heavy cleaning after each movie showing, I'm not sure how many people will be willing to risk the virus to see a movie. I think there were also several "big" movies that were moved from a 2020 release, to 2021 or 2022.

    If AMC can come out of this pandemic without bankruptcy, maybe it's worth putting a few dollars in their stock? What are your thoughts?

    submitted by /u/Force_Hammer
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    Corporate Bonds on TD Ameritrade

    Posted: 09 Jun 2020 09:14 PM PDT

    Has anyone purchased any corporate bonds on TD Ameritrade? They make it really easy to see bond ratings as well as their yield, and the minimum purchase is around 5k. Just wondering if anyone has bought some and if there's anything I should know in advanced.

    submitted by /u/ConstructivePlayer
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    How long do you guys hold onto your stocks?

    Posted: 09 Jun 2020 05:41 PM PDT

    Hey all, u/crunchymemes_v1 here to ask: How long do you guys hold onto your stocks? Do you sell monthly? Quarterly? Annually? I have seen on this subreddit of people selling their shares monthly, and putting some of it back in, and I have also heard people cash out annually and play the long game. When I look at charts, some companies rise and fall around certain quarters, so I could see why people would cash out quarterly. If you cash out annually/monthly/quarterly, why?

    submitted by /u/Crunchymemes_v1
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    FMCI and FMCIW can be the next NKLA ����

    Posted: 09 Jun 2020 12:13 PM PDT

    Alright boys time to let the people that don't already know in on another beautiful SPAC play that has ridiculous potential. FMCI, or Forum Merger II Corp announced on May 13, 2020 that they have signed a letter of intent with "a high-growth, plant-based food company with a broad portfolio of innovative products that are aligned with major food trends and sold through leading retailers and distributors across the United States." They also stated that the Target's disruptive strategy is focused on addressing the growing consumer demand for nutritious, great tasting, better-for-you products with plant-based food. The Target's alignment with today's secular food trends, combined with its robust, plant-based offerings that feature unique ingredients, innovative recipes and creative branding, has allowed it to establish a meaningful market presence in a short period of time. Best case scenario is a merger with Impossible Foods. Impossible also just recently had a job listing for a "Stock admin" which is something a publicly traded company would be looking for. They are looking for a company valued between $500 million-2b. Impossible is a bit outside of that range but it's still a possibility. (Valued around $2.5b)

    FMCI had a stockholder meeting today to vote to extend the SPAC that expires on June 10th to the end of September. They also stated at their meeting that they will be officially signing with and announcing the company they intend to merge within the next couple of weeks. In connection with the extension, none of the Company's public shares were redeemed by stockholders. (very bullish imo)

    Other possible companies include Just, Inc, Before the Butcher, Follow Your Heart, Turtle Island, etc.

    Currently, Beyond Meat $BYND is the one and only stock in the plant-based meat market that is publicly traded with a current market cap of 8.4 Billion, but this has been as high as 15 Billion back in July less than 3 months after their IPO. Even if it's not Impossible, I think giving Beyond a competitor on the market will help both companies. You guys remember what happened not long after Beyond IPO'd, and it's still doing great to this day.

    Also: https://www.bloomberg.com/news/articles/2020-06-05/half-of-americans-want-meat-free-options-after-industry-s-crisis Don't forget the U.S. is also dealing with a HUGE meat shortage at the moment.

    Do what you want with this information. Good luck gentlemen.

    submitted by /u/alexl_4
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    Started investing for my kids savings account. Slow and steady or increase risk?

    Posted: 10 Jun 2020 04:11 AM PDT

    I opened a M1 portfolio (under my name) for each of my kids. (3 mo, 11 yo, 13 yo) I deposit $12.50 weekly into each, and they are 95% VTI, 5% VOO. My kids enjoy the fact that they have money growing, and give me money occasionally to add to it. The purpose is for when they are older, to help pay for a used car, buy clothes for the first job interview, furnish a new apartment, or 1st months rent type of thing. Basically things I would have to pay for myself anyway.

    Is my current allocation good, or should I add something to increase the risk to get more gains? (specially for the 3 mo)

    submitted by /u/MaxPowers5
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    Dumb question: does anyone use WellsTrade? Difference between unrealized gain/loss Vs "client inv gain/loss"?

    Posted: 10 Jun 2020 01:29 AM PDT

    So on my wellstrade app (Wells Fargo version of RH no commission trading platform) under one of my mutual fund's it says at the top "unrealized gain/loss % 23.59% but underneath it says "Client inv gain/loss % 99.8%. why are these two numbers drastically different if they both sound like they mean the same thing?

    submitted by /u/CoffeeQID
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    Series 57 difficulty?

    Posted: 09 Jun 2020 08:23 PM PDT

    Hi, I was hoping somebody who's recently taken the new series 57 in the last year or two could tell me how difficult it is. I've been studying with STC, watching the videos, taking notes, doing the custom exams etc.

    My test is the 11th.

    Anyone got experiences to share? What areas it focuses on most? I appreciate it.

    I searched and a lot of the old posts are several years out of date since the early days back in 2016 and 17.

    submitted by /u/MJ12_Bob_Page
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    Is Financials lagging behind the recent bull run? Will there be Gems inside? (e.g. WFC, JPM, C?)

    Posted: 09 Jun 2020 08:58 PM PDT

    Was looking through all the different sectors that investors are rotating through in the past few days and noticed financials being the one that didn't get much love. I still see most of the banks being <50% of what they are prior to COVID while tech are making ATH on a daily basis. I am wondering what's everyone though on this and what are the value stock we can start accumulating? We have beaten down stock like WFC to JPM or even ETF XLF.

    submitted by /u/fedprintbrrrrrrr
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    Do you subscribe to premium newsletters and services?

    Posted: 10 Jun 2020 02:43 AM PDT

    I've been making some money through trading for a while and thought it would be worth it to invest some more money for better information, or at least to save time researching.

    I've got a couple that look somewhat interesting (Benzinga's Breakout Opportunity Letter, Benzinga's Stocks to Watch annual subscription), but there doesn't really seem to be reviews or anything similar of this type of services. The reviews I've found are more descriptions of what the service does (which you can already read where you're buying the thing...) than critics of the quality of the information.

    Do you use this kind of stuff? How much money do you invest in information (relative to the amounts you're trading)? Can you recommend me some? Maybe some of you have experience with this Breakout Opportunity Letter thing?

    Thanks!

    submitted by /u/Nomapos
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    What have you learned over the years?

    Posted: 10 Jun 2020 01:54 AM PDT

    I have learned to take profits more when things are going great. After a lot of green, take some profits. As the old saying goes, "Bulls make money, bears make money, pigs get slaughtered" or you could say, "Be fearful when others are greedy"

    I am not suggesting to sell all, but if you are amazed at how much your portfolio just increased over a short period, take a bit of cash back.

    Having said that I was never an investor at any "bottom" (e.g. 2001, 2009) so maybe if you invest at times like that this strategy would be useless.

    Anyway....what have you learned?

    submitted by /u/NuthinButFarangThang
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    Why invest in something like $T, when $SPY gives greater annual returns?

    Posted: 09 Jun 2020 05:48 PM PDT

    Mainly title, but even accounting for the dividends $T has an average annual return of 8.18% from the last 10 years while $SPY has an annual return of 8.93%. Furthermore, you can literally just "buy and forget" with $SPY more so than $T, so why buy something like AT&T over $SPY?

    Is there anything I am missing? I just mentioned $T because that is just a reputable company with a high dividend that many people preach about holding long term.

    submitted by /u/Snoo_83
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    How much weight do you give to robinhood/webull analyst ratings?

    Posted: 10 Jun 2020 04:13 AM PDT

    I've started buying stocks in the s&p 500 that went up 200% or more in the last 5 years and started to limit that to companies that are rated at 80% or better by the analysts. Also investing a third of my portfolio in stocks that went up at a steady rate of around 20% a year over 10-15 years amt, cci, eqix, ice, basically reits and a strong exchange I like

    submitted by /u/aguywithapanda
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