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.
- Jeffrey Gundlach, the CEO of $135 billion DoubleLine Capital: "A 'wave' of layoffs is coming for $100,000/year white-collar jobs"
- Fed sees interest rates staying near zero through 2022, GDP bouncing to 5% next year
- TSLA shatters $1000 ceiling (market close at $1025.05), what is going on???
- California regulators say Uber, Lyft drivers are employees
- I DON'T RECOMMEND ETORO: Etoro's withdrawal system is BROKEN! Etoro ignores your withdrawal method you submit and send money to whatever payment method you used previously.
- [California Public Utilities Commission] Officially ruled Uber and Lyft drivers are classified as employees and must provide workers’ compensatio by July 1st. If they don’t comply, it could revoke their operating authority under state law.
- Dow and S&P 500 post back-to-back losses, but Nasdaq closes above 10,000 for the first time
- Finnair has surged today over 100%
- A comparison of rebounds after market crashes of the last 100 years
- Uber shares tumble 5% as reports indicate it will lose Grubhub deal to European rival
- A convincing(?) explanation for why the stock market has gone up like crazy in the tumultuous two months we’ve had
- Why are North American banks trading at higher book values than others?
- Is there a current day equivalent to gifting savings bonds to newborns similar to what was common in the early 90s?
- "Uber exasperated with Grubhub sale process as deal slips away, sources say "
- How reliable are Fidelity strong buy indicators. Also some stock questions
- US frackers to zero in on richest oil fields after coronavirus | WSJ
- IB:HELPP why is there such a huge difference between my stock cost and final cost!?
- CLO collapse - Can anyone tell me why this article is wrong?
- CBOE plans launch of mini VIX futures
- What exactly is a 'naked' call?
- Opinions on XT?
- Where is all the tech revenue coming from?
- Is this a named strategy: Buy stock --> stock goes up --> sell up to original capital, keep the profit shares
- Can someone make sure I’m not doing something stupid?
| Daily Advice Thread - All basic help or advice questions must be posted here. Posted: 10 Jun 2020 05:12 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: 10 Jun 2020 09:17 AM PDT
Could really be a major second wave if this is the case. [link] [comments]  |
| Fed sees interest rates staying near zero through 2022, GDP bouncing to 5% next year Posted: 10 Jun 2020 11:12 AM PDT https://www.cnbc.com/2020/06/10/fed-meeting-decision-interest-rates.html The Federal Reserve kept interest rates near zero and indicated that's where they'll stay as the economy recovers from the coronavirus pandemic. Along with the rate decision, central bankers projected Wednesday that the economy will shrink 6.5% in 2020, a year that saw an unprecedented halting of business activity in an effort to combat the coronavirus pandemic. However, 2021 is expected to show a 5% gain followed by 3.5% in 2022. The central bank repeated its commitment from the April meeting that it "expects to maintain this target range until it is confident that the economy has weathered recent events and is on track to achieve its maximum employment and price stability goals." The Fed also said it will continue to increase its bond holdings, targeting Treasury purchases at $80 billion a month and mortgage-backed securities at $40 billion. The Federal Open Market Committee met this week as states begin to reopen and after unemployment saw its worst monthly drop in history followed by its biggest gain. In addition, the meeting comes the same week the National Bureau of Economic Research declared that a recession started in February, ending the longest expansion in U.S. history. Fed officials skipped releasing their quarterly economic projections at March meetings as uncertainty permeated over how long the U.S. would remain in stay-at-home mode and how deep the damage would be. They did release their forecasts this week. Here are the key numbers for 2020, followed by the next two years and the long-run projection: Fed funds rate: 0%-0.25% through 2022, with the long-run rate at 2.5% GDP: -6.5% in 2020, 5%, 3.5%, 1.8% Unemployment: 9.3%, 6.5%, 5.5%, 4.1%. Headline inflation: 0.8%, 1.6%, 1.7%, 2%. Core inflation: 1%, 1.5%, 1.7%. Markets reacted positively to the news, with stocks coming well off their lows of the day and edging toward positive territory. [link] [comments]  |
| TSLA shatters $1000 ceiling (market close at $1025.05), what is going on??? Posted: 10 Jun 2020 04:00 PM PDT I don't even know anymore what's going on with Tesla's stocks. This is after Musk himself tweeted that it's probably overvalued. It's not like electric cars have taken over the world, they're still a young technology. Self-driving cars are still far from mainstream, too. What about Tesla are people so hyped for that makes them drive its stock value up so much? Can anyone explain this phenomenon? [link] [comments]  |
| California regulators say Uber, Lyft drivers are employees Posted: 10 Jun 2020 02:11 PM PDT I personally agree that both companies have employees, not contractors, but I am wondering if this will destroy any hopes for profitability. [link] [comments]  |
| Posted: 11 Jun 2020 12:44 AM PDT Everyone BE CAREFUL when you submit withdrawal request in Etoro. Etoro's withdrawal system is BROKEN! Etoro ignores your withdrawal method you submit and send money to whatever payment method you used previously. I've submitted my withdrawal request on may 28th 2020, yet hasn't received my money until today june 11th, 2020. Etoro ignored my withdrawal method and sent the money to my previous payment method that no longer exist. When I asked them why they did that, they said 'Etoro has a right to send money to whichever payment method you've used previously for deposit. It says so in the withdrawal form.' This is the only broker that I've experienced doing this kind of shitty behavior. And I've asked them where my money is, and they kept saying 'We don't know yet. Contact the bank of your previous payment method' When I called the bank, the bank said that the money should have been bounced back instantly, it should be in the hands of eToro 1-2days after. At first, eToro advisor told me 'in most cases, I can get you money where you want'. What the hell are you talking about? It shouldn't be a special favor for getting my own money back to the bank account that I want. Etoro said my money will be in the account at maximum 8days and that's a lie. Etoro said I don't need to do anything to get my money back, but they now asked me to get in touch with my bank to track where the money is and asked me to sign the paper saying 'I shall have no claim related to aforementioned transactions' 'I hereby waive chargeback claim' Etoro's email responses:
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| Posted: 10 Jun 2020 10:22 PM PDT Things just got very seriously bad for Uber and Lyft .... https://finance.yahoo.com/news/california-regulator-uber-lyft-drivers-employees-044824014.html Uber and Lyft drivers are classified as employees, the California Public Utilities Commission has officially ruled. The regulator, which oversees ride-hailing companies, declared its decision in an order published on Tuesday. It said "a person providing labor or services for remuneration shall be considered an employee rather than an independent contractor" under AB5, the state's new law covering gig work, which became effective on January 1st, 2020. In its order, the Commission mentioned that Uber filed a lawsuit in federal court to prevent its drivers from being classified as employees under AB5. It also noted that Uber and Lyft successfully "placed on the November 2020 ballot a measure that would exclude all app-based drivers from AB5." The lawsuit and ballot don't affect the Commission's authority over ride-hailing services, though, so their drivers are "presumed to be employees." That means the regulator must ensure that ride-hailing services "comply with those requirements that are applicable to the employees of an entity subject to the Commission's jurisdiction." Just last week, the regulator also warned the companies that they have to provide workers' compensation for their employees by July 1st. If they don't comply, it could revoke their operating authority under state law. As NBC News notes, it's unclear if this ruling can compel Uber and Lyft to formally reclassify their drivers. In a statement sent to the organization, Uber spokesperson Davis White said it "remains committed to expanded benefits and protections to drivers." However, he also said that:
As for Lyft, a spokesperson simply told NBC News that the commission's "presumption is flawed." [link] [comments]  |
| Dow and S&P 500 post back-to-back losses, but Nasdaq closes above 10,000 for the first time Posted: 10 Jun 2020 05:38 PM PDT
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| Finnair has surged today over 100% Posted: 11 Jun 2020 02:23 AM PDT Finnair is the flag carrier and largest airline of Finland. Its major shareholder is the government of Finland, which owns 55.8% of the shares. Finnair is a member of the Oneworld airline alliance. Finnair is the sixth oldest airline in continuous operation. With no fatal or hull-loss accidents since 1963, Finnair is consistently listed as one of the safest airlines in the world. In 2018 it was the safest in the world according to Hamburg aviation security office JACDEC and an aviation magazine Aero International. The stock has been on a steady decline since coronavirus started. Back in February, it was trading at 6,25€. At lowest, it was trading at 3,00€. During the past week, it has risen over 30% and reached levels of 3,90€. The market cap of the airline is around 500 million euros. Finnair is undergoing an equity issuance, where they will raise another 500 million in capital by issuing shares. Yesterday, the terms were published. Each Finnair share could mark 10 new shares at a cost of 0,40€ per share. At yesterday's closing stock price, the new Finnair stock price should be around 0,72€ (due to new shares). However, Finnair is currently trading at 1,47€, which is over double the valuation. It should be noticed that these 0,40€ shares are not yet trading, people can trade the right to mark shares between 17.-25.6. and you can mark the shares until 1.7. Here is a screenshot from Bloomberg, showing how Finnair is trading well above 2019 levels. One can just wonder why the share price is rising. Are people buying, because they think the stock is cheap? Are people buying in hopes of a price surge (something that happened to Norwegian after issuing shares). TL;DR: Finnair (a Finnish airline) is trading at over 100% yesterdays valuation, mostly due to investors misunderstanding how the upcoming equity issuance will work. [link] [comments]  |
| A comparison of rebounds after market crashes of the last 100 years Posted: 11 Jun 2020 12:21 AM PDT See the chart here: https://imgur.com/gallery/uYklkJn A couple months ago, someone grabbed my chart comparing market crashes and posted it here so I figured I would beat them to the punch and post the follow up directly! To collect this data, I downloaded the weekly S&P 500 closing prices going back over 100 years. Then I pulled it all into Google Sheets, found the bottom points and charted the rebounds to the peak before the next 20%+ drop. One thing that's interesting about these two charts is the duration. The crashes lasted an average of about one year. The rebounds lasted an average of about four years. The market usually goes up! The Great Depression holds the dubious title for shortest rebound, lasting only 10 weeks before another 20% drop. The financial crisis was followed by the longest rebound, lasting over 9.5 years. [link] [comments]  |
| Uber shares tumble 5% as reports indicate it will lose Grubhub deal to European rival Posted: 10 Jun 2020 08:35 AM PDT Reports this morning indicate that Uber, the American ride-hailing giant with a global footprint, will lose out on its attempt to buy Grubhub, an American food ordering and delivery service. Uber competes with Grubhub domestically with its Uber Eats service; a tie-up between the two could have given Uber suffocating market share in the United States, and thus improved economics. Losing Grubhub to European-rival Just Eat Takeaway — the Wall Street Journal broke the news — is difficult news for Uber. Its shares are off nearly 5% today after the news while Lyft, its local rival in ride-hailing, is off a more modest 2.5%. Reports last week named two European companies as potential acquirers of the American company; the story of Uber losing out to a different company in its pursuit of Grubhub intensified this morning when CNBC reported that the ride-hailing company could drop its bid over anti-trust concerns. Investors are less than enthused that Uber failed to close the Grubhub deal, if reports hold up. The why is simple enough: Without Grubhub, Uber Eats is merely another money-losing food delivery service that has a long maturity cycle ahead of it before it helps lower its parent company's unprofitability. Ride-hailing, Uber's traditional bread-and-butter, and source of positive contribution margin, is currently recovering from pandemic-driven lows. But without Grubhub and a greater ability to squeeze money from restaurants that more market might have afforded Uber, its near-term economics may prove slow to improve. Ride-hailing is coming back, but is still generating revenues lower than from year-ago totals. With Uber Eats putting up around $100 million in negative adjusted EBITDA each month, food delivery is little help to the unprofitable megacorp. More when the deal is announced today, if it is as currently anticipated. [link] [comments]  |
| Posted: 10 Jun 2020 06:09 AM PDT Stock Market Has Almost Always Ignored the Economy (Bloomberg) "The correlation between annual changes in real, or inflation-adjusted, gross domestic product and annual real returns for the S&P 500, including dividends, was 0.09 from 1930 to 2019, the longest period for which overlapping numbers are available" - I'd never seen this analysis but it's amazing to see as numbers. As someone who was hoping that 2020 would be the year of solid portfolio growth before I buy a house, it's basically net flat for me. The article sadly doesn't point to whether this rally will continue, alas. Is all expectation of the recovery now baked in, and the release of Q2 results will bring a small drop followed by a relentless rise? [link] [comments]  |
| Why are North American banks trading at higher book values than others? Posted: 10 Jun 2020 05:12 PM PDT Any explanaion why US/Canadian banks trade at significantly higher Book Value/Price than EU/Japanese banks? Examples: US Banks Canadian EU Japan [link] [comments]  |
| Posted: 10 Jun 2020 11:06 PM PDT Random question, I know. Being a child of the early 90s, I was given savings bonds with a 30 year maturity as a present when I was born by family and friends of my parents. It was attractive then given where interest rates were at. Now that I have friends and family starting to have kids, I figured a gift like this would be better than some baby clothes or a card. Do people give savings bonds anymore? Is there a current day equivalent that people have seen? Thanks so much! [link] [comments]  |
| "Uber exasperated with Grubhub sale process as deal slips away, sources say " Posted: 10 Jun 2020 02:46 PM PDT https://www.cnbc.com/2020/06/10/uber-exasperated-with-grubhub-sale-process-as-deal-slips-away.html "Uber representatives are confused with Grubhub's decision to merge with Just Eat Takeaway, citing a higher offer price and frustration over disagreements about how to characterize regulatory risks, according to people familiar with the matter." This seems interesting. Any ideas on why Grubhub went to JET over Uber, besides potential regulatory issues? The only good reason I can imagine that Grubhub would go with a lower offer is if they think JET's future bodes more fruitful than Uber's, especially if the deal is in stock. [link] [comments]  |
| How reliable are Fidelity strong buy indicators. Also some stock questions Posted: 10 Jun 2020 05:10 PM PDT I see so many strong buys at fidelity stock screening, but some of them did not perform well, and no good news about them in future. How reliable are they ? and what can we take away from these picks
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| US frackers to zero in on richest oil fields after coronavirus | WSJ Posted: 11 Jun 2020 04:02 AM PDT "The Permian Basin is set to return to growth by next year and continue through 2030, consulting firms Rystad Energy and Wood Mackenzie estimate. By contrast, the Eagle Ford region of South Texas is unlikely to top its average 2019 shale-oil output until 2024, and then will decline, the firms said. Rystad projects North Dakota's Bakken region will reach last year's average again -- but not until 2026." "EOG allocates capital based on returns, and our Eagle Ford returns are competitive with the Delaware Basin's, primarily because we have lowered our Eagle Ford well costs by half since 2014," said Creighton Welch, an EOG spokesman." "EOG drilled more productive wells in Eagle Ford between 2017 and 2018 than in 2019, on average, according to a Wall Street Journal review of data collected by ShaleProfile Analytics. The company said it remains committed to the Eagle Ford and noted that while well productivity in any basin declines over time, so do costs." [link] [comments]  |
| IB:HELPP why is there such a huge difference between my stock cost and final cost!? Posted: 11 Jun 2020 03:53 AM PDT I'm pretty new to the investing market so am still discovering things. I tried to buy DAL at 200usd, but the total amount turned out to be 251 USD. How is this possible? Am i doing something wrongly or is the commission just so high https://ibb.co/bvv9w2N [link] [comments]  |
| CLO collapse - Can anyone tell me why this article is wrong? Posted: 10 Jun 2020 01:33 PM PDT https://www.theatlantic.com/magazine/archive/2020/07/coronavirus-banks-collapse/612247/ TL:DR CLO's are ranked AAA by credit bureaus not because of the security of the loan, but due to the correlation default matrix, aka the likelihood of all loans going bust simultaneously. Most of these AAA CLO's are actually comprised of majority B-rated (moderate likelihood of default) with CCC's (high risk) peppered in. Most major banks have bought the CLO product hook line and sinker. Some banks are heavily leveraging, and practically swing trading them. Additionally, the article refers to VIE (Variable Interest Entities) with this link Wells Fargo owns $1T in VIE assets. VIE are typically commercial mortgage securities to shopping malls and business parks. Short take: if CLO's go belly up, banks default, businesses don't have funding, and then VIE's default as well as a result. Seems to propose that CLO collapse will be worse than 2008 CDO collapse and basically ruin everything. I have no idea how legitimate their claims are. Any thoughts? [link] [comments]  |
| CBOE plans launch of mini VIX futures Posted: 11 Jun 2020 03:47 AM PDT
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| What exactly is a 'naked' call? Posted: 10 Jun 2020 05:03 PM PDT Hello, I'm JUST beginning to learn options trading, i'm a big noob. So as I understand it, options trading is low risk, but apparently there are two types - naked (high risk) and covered (low risk). Is a naked call like when you buy the option but don't exercise it and then sell the option itself? How is that different from a covered call? and what's the difference between call and put... I am confused [link] [comments]  |
| Posted: 10 Jun 2020 05:46 PM PDT I'm looking to start investing tomorrow, have a few stocks and an ETF I'll be investing in for sure. But I found this ETF 'XT' and I really like its portfolio of companies. It was on a very high upward trend before the crash, and now it has bounced back to right about where it was. Would it be stupid to buy in at this price, being that its the highest its been? It seems like its going to keep trending upward at a fast pace, and the companies in its portfolio back that I think (Tesla, Nvidia, PayPal, Regeneron, etc.). Thoughts? [link] [comments]  |
| Where is all the tech revenue coming from? Posted: 11 Jun 2020 02:54 AM PDT I don't spend much of anything on tech, so who is? I spend like: $30/mo phone service through google fi, $150 chromebook, 2+ yr old android, $12 nflx. Those prices are nothing compared to what stuff cost 15 years ago. $80+/mo phone service, $1.2K computers, $120/mo comcast. I don't see how these 1+Trillion dollar companies get so much revenue. They make up 20% of sp500 and their priced as if they'll grow 20%+, so they'll probably be 40% of sp500 soon. Looking at my personal expenses I just don't get it. I give the banks, grocery stores and utilities way more of my money. Edit: And I guess the cloud services are one reason they are making a lot now (replace local it staff with the cloud) but I just don't see how they are approaching 25 or 35% of the entire sp500. [link] [comments]  |
| Posted: 10 Jun 2020 12:08 PM PDT New to stock trading and had trouble Googling this. I know there's "dividend capture strategy", but is there a name for a strategy in the title? Basically: Let's say you buy 100 shares for $10 = $1000 Stock goes up to $13 = $1300 Sell back 77 shares @ 13 = $1,001. Keep 13 shares and original investment and over time accumulate shares using the same capital. [link] [comments]  |
| Can someone make sure I’m not doing something stupid? Posted: 11 Jun 2020 02:07 AM PDT Hello! Im sorry but I'm a little new to options so I just want someone to double check this investment here. Does it make sense to buy a long term call (dated 17 DEC 2021) on GLD if I am bullish on gold? Or is this silly? The premium is 11.90 so it would be quite pricey but I think with a strike price of 180 and GLD currently sitting at 163 the chances of profiting look pretty good. Also looking at a long term option on silver(SLV). Thank you! P.S. I was trying to post this in r/options but for some reason it wasn't letting me post [link] [comments]  |
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