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.
- Zillow CTO sells 144,314 shares of Zillow Group stock and now only owns 2,991 shares in the company
- May Jobs Numbers: 2.5M Jobs added. Unemployment at 13.3%. beat exceptions of 8M jobs lost.
- NASDAQ Closes at ATH of 9,814, recovering >3,000 points in less than 3 months!
- Why US unemployment numbers count 4.9 million laid-off people as employed
- Chances for a Crash on Monday (or the near future)?
- NY Times: The Economic Pain That the Unemployment Rate Leaves Out (27% Adjusted Unemployment Rate)
- Canada's economy added 290,000 jobs in May
- Need help understanding this market action chart regarding corporate bonds
- The Surge in Equity Asset Valuations and the Fall of Gold and Silver
- American business bankruptcies rose 48 percent in May
- Buying Alibaba as a European - Should I buy it on the German exchange rather than on the american one?
- Real Estate & Stock Market Asset Bubble
- Why go for dividends when there are capital gains?
- Protests = DGLY (police body camera) gains. Up 20% today
- Total private sector “dry powder” cash on the sidelines is at $8 trillion, about 40% of GDP
- Greed is through the roof.
- Is Diversification for idiots?
- I have a question about dividends
- Why The Stock Market Doesn't Care
- BLS Admits "Survey Error" May Have Reduced Unemployment Rate By Up To 3%
- Need help understanding the stock market today
- Investing in USA stocks as a European citizen
- Are online trading platforms/ mobile applications brokers?
- Does your broker limit your day trade buying power to cash value on volatile securities?
| Daily Advice Thread - All basic help or advice questions must be posted here. Posted: 05 Jun 2020 05:13 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]  |
| Zillow CTO sells 144,314 shares of Zillow Group stock and now only owns 2,991 shares in the company Posted: 05 Jun 2020 06:53 PM PDT Zillow (currently around $60) is almost back to 52-week high ($66). Wonder if the CTO knows something; why would he completely divest himself of the stock almost completely otherwise? David has been at Zillow since 2005 (15 years). https://www.marketbeat.com/instant-alerts/nasdaq-z-insider-buying-and-selling/ [link] [comments]  |
| May Jobs Numbers: 2.5M Jobs added. Unemployment at 13.3%. beat exceptions of 8M jobs lost. Posted: 05 Jun 2020 07:30 AM PDT Previous post was removed due to excess reports. https://www.bls.gov/news.release/pdf/empsit.pdf Unemployment report blows out expectations lead by job gains in leisure and hospitality, construction, education and health services, and retail. Nearly 2.5M people who were temporarily furloughed have returned to work. Labor force participation up 0.6% [link] [comments]  |
| NASDAQ Closes at ATH of 9,814, recovering >3,000 points in less than 3 months! Posted: 05 Jun 2020 04:16 PM PDT Being 85% invested since early April (5x Levered ETF) I am wondering whether it is an ideal time to exit? I have a feeling that staying another ~30 days would be pushing my luck and while I do see a recovery coming more swiftly than I initially anticipated I am having a hard time justifying the current trading levels of the index... things are better than expected, but not better than where we stood at the previous high. Thoughts ?? EDIT: I am from Europe, we gave up to 12x levered Nasdaq through Nordnet [link] [comments]  |
| Why US unemployment numbers count 4.9 million laid-off people as employed Posted: 06 Jun 2020 01:38 AM PDT I'm trying to understand how the US employment number is calculated. Do you think it is correct to consider the 4.9 million temporary laid-off people as employed?
(source) [link] [comments]  |
| Chances for a Crash on Monday (or the near future)? Posted: 05 Jun 2020 09:07 PM PDT Argument #1 for a Crash (it's simply overbought): The stock rally has been... unprecedented. RSI for SP500 is in the mid-80s. The only thing propping up the market is the iron fist of JPow and his money printer. On really bad news, the market goes UP just because it isn't as bad as one expects. There is clearly a bubble being formed here. Argument #2 for a Crash (COVID returns): you're kidding yourself if you think that these protests/riots won't lead to a surge in cases, especially when the 14 day incubation period for all those protestors/rioters and anyone they came in contact with ends. Sure, it might not be on Monday, but in the next few weeks perhaps the surge may occur. Argument #3 for a Crash (Morgage defaults/loan defaults): look, alot of people have been laid off. Some are temporary, but some (especially small business owners/workers) have been laid off permanently. Stimulus packages and high unemployment benefits are temporary. There has been significant irreversible damage to certain businesses, especially small businesses. There will certainly be mortgage defaults and loan defaults coming up. Sure, it may not be at 2008 levels, but it surely will be noticeable. Argument #4 for NOT a Crash: JPow money printer So fellas, what will it be? [link] [comments]  |
| NY Times: The Economic Pain That the Unemployment Rate Leaves Out (27% Adjusted Unemployment Rate) Posted: 05 Jun 2020 09:49 AM PDT The Department of Labor announced Friday that with a "limited resumption of economic activity," 13.3 percent of Americans were unemployed in May. Though still high by historical standards, that's down from 14.7 percent in April, and a pleasant surprise to many economists, who were expecting a figure closer to 20 percent. But this statistic doesn't tell the whole unemployment story. That is true even in ordinary times, and more so in view of the pandemic's effect on the labor market, which has made this figure particularly incomplete as a measure of economic hardship. "The unemployment rate itself is significantly going to understate the drop in economic activity," said Stephanie Aaronson, the director of economic studies at the Brookings Institution. "It also is underestimating the amount of distress that Americans are facing right now because it understates how many people have lost jobs." Here's what the unemployment rate would look like if it were expanded to include more workers who have been hurt during the pandemic. The headline unemployment rate is calculated by taking the number of unemployed adults divided by the total number of people in the labor force, employed and unemployed. (The rate shown here is not seasonally adjusted, which is why it's slightly different from the headline Labor Department number.) This rate includes 15 million workers who expect to be recalled back to their jobs, as well as those on permanent layoff, job leavers, new entrants and re-entrants to the labor force. But there are millions of people who are not working and want a job that this rate leaves out. To be officially counted as unemployed, workers who are not on temporary layoff must indicate that they have looked for work in the past four weeks. The Department of Labor releases an expanded unemployment rate called the U-6 that captures some of these workers, those considered "marginally attached" to the labor force because they have looked for a job in the past year. If we add those workers to our expanded unemployment rate, it increases to 14.2 percent. But the pandemic is causing many people not to look for work because of fears about getting sick or responsibilities like caring for children. If we include all those people who say they want a job, regardless of their job hunt status, the rate increases to 17.9 percent. The rate increases further if we include those who are working part time because their hours have been cut or they could not find full-time jobs (a group also included in the U-6 measure). Finally, the Labor Department said that 4.9 million workers who were counted as employed but absent from work for "other reasons" were most likely miscategorized because they were on temporary layoff. Some of those workers are still being paid, but their absence contributes to the drop in economic activity. Combining these groups results in a 27 percent expanded unemployment rate that more closely reflects the share of the labor force whose employment has been negatively affected by the pandemic. [link] [comments]  |
| Canada's economy added 290,000 jobs in May Posted: 05 Jun 2020 07:35 AM PDT Statistics Canada, which is Canada's national statistical office, released job numbers for May. They show the Canadian economy adding 290,000 jobs, making it the best one-month gain for jobs in Canada in 45 years, and defying negative expectations. Report: https://www150.statcan.gc.ca/n1/daily-quotidien/200605/dq200605a-eng.htm?HPA=1 Summary from CBC: https://www.cbc.ca/news/business/canada-jobs-may-1.5599719 Apart from being interesting in and of itself, this report also bolsters the credibility of the US jobs report, which was greeted by a lot of skepticism on this sub. Canada also started re-opening in May. [link] [comments]  |
| Need help understanding this market action chart regarding corporate bonds Posted: 06 Jun 2020 03:08 AM PDT The first column seems to show this, I'm thinking aloud here so please correct me The bond ratings on the right of bonds, from best credit to worst, a time series of dates from before covid to 6/1. showing yield going up compared to treasury yield. This is the yield of corporate bonds compared to treasury bonds. Yield of corporate bonds compared to 10 year treasury is going up, meaning the difference between corporate bond yield and 10 year treasury yield is HIGHER, indicting that there is less trust in corporate bonds. This chart does not show the actual corporate bond yields going up, right? When yields go up; prices come down. I don't understand why bond prices would come down. Is it due to sell off? Is it due to interest rate change? Wouldn't prices go UP in a crisis and thus yields would go down? Second column; even more confusing. It says yield on treasury. I have no ideas what this yield on treasury is supposed to mean. Is it the yield US treasuries are producing? If so, how is there B rated US treasuries? I'm assuming it compared the corporate bond yields to US treasury yields in some way, but I don't understand how, since didn't we do that in the previous column? [link] [comments]  |
| The Surge in Equity Asset Valuations and the Fall of Gold and Silver Posted: 05 Jun 2020 06:20 PM PDT Hi Everyone, Gold and Silver are both down several percentage points in the past couple of days. Obviously, when people are very bullish on the state of the economy, gold and silver often become afterthoughts(Who cares about 1-2% gains when they can join on the neck-snapping 40% airliner bandwagon?). They are relatively low-risk low reward investments but do a great job of weathering inflation and extremely volatile market conditions. If a surge continues in equity asset valuations in the coming months, what do you think this will mean for gold and silver? How about a year to two-year outlook what do you think the outlook will be then? I look forward to any of your thoughts on this topic. Kind Regards, Forehand Financial [link] [comments]  |
| American business bankruptcies rose 48 percent in May Posted: 05 Jun 2020 09:10 AM PDT https://thehill.com/policy/finance/501290-american-business-bankruptcies-rose-48-percent-in-may Bankruptcies declared by businesses in the U.S. rose nearly 50 percent in May, as the economy continues to feel the sting of the coronavirus pandemic. In May alone, 722 businesses across the country filed for chapter 11 bankruptcy, according to legal-services firm Epiq Global, The Wall Street Journal says. That's up 48 percent from May 2019, when 487 businesses filed for chapter 11. Since March and the onset of the pandemic, the U.S. economy has taken a nosedive, shedding over 40 million jobs and ballooning the country's unemployment rate. Some good news came Friday morning, when the Bureau of Labor Statistics announced in a huge surprise that the economy added jobs in May and that the unemployment rate fell. Congress has passed multiple coronavirus stimulus packages cumulating in trillions of dollars, but many industries such as service and airlines are still struggling to regain their footing. "Hotels are not going to bounce back quickly. You're going to see a long-term effect on office space," Deborah Williamson, a San Antonio bankruptcy lawyer, told the Journal. "The consequence of the quarantine around the world...It's not going to magically go away as you reopen." [link] [comments]  |
| Posted: 06 Jun 2020 12:50 AM PDT Considering the recent American law to potentially make chinese companies illegal to be publically traded in the US if they do not subject themselves to US auditors, would it be wiser to acquire by stocks on the german exchange instead? It seems like the value of the two exchanges follow each other and so I do not understand why it would be better for me to buy it on NASDAQ. I already have a position in BABA, but I am thinking of increasing it. [link] [comments]  |
| Real Estate & Stock Market Asset Bubble Posted: 06 Jun 2020 04:14 AM PDT With US and Canada printing unprecedented amounts of money, we know one way to hedge against inflation is to buy real estate and stocks (as shown in the recent market rallies despite mediocre/bad news).. but do you think we're getting closer to what happened with Japan and their real asset bubble? If we hypothetically were.. how do we even protect ourselves from that? Where do I put my money?? [link] [comments]  |
| Why go for dividends when there are capital gains? Posted: 06 Jun 2020 01:57 AM PDT I know this must be a beginner's question, but I didn't find an answer for this anywhere. Etfs like QQQ, VUG and stocks like McDonald's and Visa provide 15-20% return per year. Meanwhile, the best dividend stocks and ETFs their prices are nearly stable and provide 5-7% dividend So why go for the 5-7% returns when you have 15-20% returns? [link] [comments]  |
| Protests = DGLY (police body camera) gains. Up 20% today Posted: 05 Jun 2020 01:57 PM PDT What is Digital Ally — it produces tech like body cameras for low enforcement (police officers). Why is that important — in case you haven't noticed, there have been a few minor protests and get togethers recently about the need for police accountability. Does it make money — the KC police department just ordered $2.5million worth of cameras. And lucky you, an offering just completed yesterday so stocks are cheap. Should I buy now — the news this weekend will be about protests. There's a reason it's green AH right now. [link] [comments]  |
| Total private sector “dry powder” cash on the sidelines is at $8 trillion, about 40% of GDP Posted: 05 Jun 2020 08:56 AM PDT
https://www.privatebank.citibank.com/ivc/docs/Mid_Year_Outlook_2020_FINAL.pdf
https://pbs.twimg.com/media/EZrO8UBWAAMB2qs?format=jpg&name=medium [link] [comments]  |
| Posted: 05 Jun 2020 10:37 AM PDT We have seen this before. The market might melt up further short term but there is absolutely nothing to backup this monumental move over the last 2 months. Stocks are literally back at all time highs (numbers that were already overvalued before all this happened). I understand with low rates stocks become more attractive. Just remember the unemployment rate is still very high, bankruptcies are coming, civil unrest is the highest we've seen in a very long time, election this year, global tensions, inflation concerns. But the MONEY IS PRINTING. The US economy is built on the belief of a free market. This market is clearly not free. [link] [comments]  |
| Is Diversification for idiots? Posted: 06 Jun 2020 02:25 AM PDT Currently, My portfolio consists of 7 holdings in 3 sectors: 35% Banks (BAC, JPM) 35% Tech (BABA, GOOGL, FB, MSFT) 30% SPY After doing some research, I have come to a conclusion that diversification kills returns. As a Long term investor with no intention to sell, should I go 100% into tech stocks? P.S I'm thinking of only having BABA, AMZN, FB, MSFT & GOOGL in my Portfolio (20% each) [link] [comments]  |
| I have a question about dividends Posted: 05 Jun 2020 08:04 PM PDT Let's say I buy a stock that records their dividend May 1st and pays dividend out June 1st. They pay their dividends out once a year. Let's say it's a very high dividend of 10 percent Let's say I buy that stock a day before the Record date of May then I sell it a day after June 1st. (I only hold it one month) Will I be able to collect dividends? If so, why aren't more people doing that? I'm pretty much getting a year worth of dividends for just holding a stock for one month. Am I missing something here? [link] [comments]  |
| Why The Stock Market Doesn't Care Posted: 05 Jun 2020 02:00 PM PDT https://www.nytimes.com/2020/06/05/business/why-the-stock-market-just-doesnt-care.html With all that's currently going on right now and the long-term impacts on the economy, I'm interested in how investors are so divided in their views of the current market and forecasts on the future market. I thought this article was interesting. [link] [comments]  |
| BLS Admits "Survey Error" May Have Reduced Unemployment Rate By Up To 3% Posted: 05 Jun 2020 08:28 AM PDT
https://www.bls.gov/news.release/empsit.nr0.htm Looks like there was a mistake in the unemployment data. I wonder how this is going to effect the markets. So far markets are powering up as normal. [link] [comments]  |
| Need help understanding the stock market today Posted: 06 Jun 2020 04:41 AM PDT Hi - i'm new to investing and have done okay so far, (started in Feb) can someone please explain me to 1/ how can we quantify the Fed's stimulus and how much the stock market should be expected to be pumped up, so we can measure like-for-like basis? 2/ Any reason why the protest will not be a catalyst for the second wave of pandemic and hence impact to stock market? I'm trying to build an idea around what i should do with my portfolio at the moment. See here https://imgur.com/2Er6F3J Any ideas will be much appreciated. [link] [comments]  |
| Investing in USA stocks as a European citizen Posted: 06 Jun 2020 04:07 AM PDT Hello, I have invested in baltic stocks for few months but now I would like to explore a bit USA stocks as well, what is the best platform for a European citizen, and what are the fees I need to pay for that since I'm investing more like a day trader. I have seen people using thinkorswim platform would that fit for me? Thanks [link] [comments]  |
| Are online trading platforms/ mobile applications brokers? Posted: 06 Jun 2020 03:56 AM PDT I recently learned about trading but I am stuck on the broker part. They are the people who can legally buy and sell shares for you. If I use a mobile trading platform, would this be considered a broker? I have heard of online brokers but are they physical people or just the computer. I am new to trading/investing and I personally find it easy to trade and invest from my phone. So far I have only used demo accounts while I learn more about trading and I am reading to really start trading/ investing for real. [link] [comments]  |
| Does your broker limit your day trade buying power to cash value on volatile securities? Posted: 06 Jun 2020 03:34 AM PDT I had this happen with both $AAL and $BA this week. I got in the trade planning to add more if price went against me, only to find out that my broker wouldn't allow me to exceed the value of my account, meaning I couldn't tap into the usual 4x buying power available in pattern day trading account. I'm wondering if there are other brokers that do this, or brokers that don't? Surprised to see it applied to a company as large and liquid as $BA. [link] [comments]  |
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