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    Sunday, September 27, 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: 26 Sep 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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    FT: Nikola founder bought truck designs from third party

    Posted: 26 Sep 2020 01:22 PM PDT


    https://www.ft.com/content/9bd5e3f3-4d09-458c-b390-bc94b1f4a024

    The original design for Nikola's flagship truck was purchased by founder Trevor Milton from a designer in Croatia, according to two people with knowledge of the matter, despite company claims in a 2018 lawsuit that the vehicle was initially designed by Mr Milton "in his basement".

    The truck, the Nikola One, is at the centre of a $2bn lawsuit with Tesla, in which Nikola alleges its rival infringed on its patents. Nikola claims in that lawsuit that Mr Milton began designing the model in 2013, with other company staff later working on it.

    In a rebuttal to the lawsuit filed last week, Tesla alleged that Nikola could not protect the designs because they did not originate from the company itself, but from Adriano Mudri, a designer based in Croatia.

    Two people with knowledge of the transaction told the Financial Times that the Nikola founder bought the designs in 2015 after meeting Mr Mudri while visiting electric supercar maker Rimac in Croatia.

    While Tesla's filing identifies the designer as the source of the original truck drawings, it does not contain details about the transaction, explain that money was exchanged, or that Mr Milton himself orchestrated the purchase.

    The latest twist comes with Nikola still reeling from accusations earlier this month that it passed off purchased technology as its own, covering supplier names on key components with stickers when making promotional videos. Nikola said it never claimed it made the components.

    In a report that sent Nikola's shares tanking, Mr Milton was accused of spreading an "ocean of lies" about the company's technology and its products by short seller Hindenburg Research.

    A little over a week later, Mr Milton decided to leave the company, telling staff he planned to defend himself "against false allegations levelled against me by outside detractors". The 39-year old founder has repeatedly insisted that he has not lied to or deceived anyone about the trucks.

    The lawsuit with Tesla, filed during Mr Milton's tenure, centres on the origins of the designs for the "Nikola One" truck.

    The company claims that Mr Milton worked for two years on the truck before, unsatisfied with his designs, he hired designer Steve Jennes in 2015. The lawsuit says the pair then crafted the final design between them in a lengthy process.

    When it was finished, Nikola had spent "several million dollars developing the Nikola One", according to the lawsuit.

    In its rebuttal, Tesla said that the designs for the model originated from Mr Mudri, a designer at Rimac, who had dubbed it the "Road Runner". The design's origins could raise further questions about Nikola's intellectual property.

    "Trevor Milton chose not to disclose the Road Runner concept truck to the [US Patent and Trademark Office] with deceptive intent," Tesla said in its filing.

    Nikola said: "The Nikola One truck was designed and patented by Nikola. It is commonplace to license third party designs during vehicle development, and although early in the process Nikola purchased a license to Antonio Mudri's designs, he was not part of the design team and his designs are materially different from the design invented by Nikola for the Nikola One."

    According to several people with knowledge of the deal, Mr Milton sought, unsuccessfully, to collaborate with Rimac on a range of projects in 2015.

    On a trip to Rimac's headquarters on the outskirts of Zagreb, he met Mr Mudri, the company's designer, who had designed a futuristic truck as part of an earlier diploma project.

    Mr Milton purchased the computer drawings and virtual 3D model of the vehicle for several thousand dollars from Mr Mudri, according to two people.

    The Road Runner name lingered for months. A person familiar with the development of the Nikola One said that "Road Runner . . . was the internal name for Nikola's project the entire time we worked on it".

    A screenshot of a Nikola document seen by the Financial Times, shows 13 people being invited to collaborate on the "Nikola Roadrunner Prototype Project".

    Another screenshot shows an early version of Nikola's website depicting a truck that appears identical to the Road Runner in Tesla's court filing.

    Nikola did not mention Mr Mudri, or Rimac, or say that the designs were purchased, in its 2018 filing against Tesla.

    Representatives for Mr Milton declined to comment. Rimac also declined to comment.

    submitted by /u/closingbell
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    Is it the right time to buy some Aviation stocks?

    Posted: 27 Sep 2020 04:14 AM PDT

    So, Covid-19 destroyed the whole aviation industry and prices are at the bottom right now. Some of the current prices are:

    • Boing -66% (Mar 2020)
    • Airbus -56% (Mar 2020)
    • Delta Airlines -53% (Mar 2020)
    • American Airline Group -80% (Jan 2018)
    • Lufthansa -75% (Jan 2018)
    • United Airline -63% (Mar 2020)
    • Air France/KLM -80 (Jan 2018)

    I guess everybody agrees that the prices will bounce back in the future. The two main questions to ask are:

    How long will it take the aviation industry to bounce back ?

    I guess it will take at least 2 years. Some of the companies are downsizing their fleet and aiming for 2023. I think we will see all time highs again in 2023-2026.

    Are we at the bottom ?

    This is the hard one. Right now almost all of the stocks are sitting on the all time low support levels, so if they decrease even more, god know where they will end up. Additionally, winter is coming (literally) and it is a possibility that Covid situation gets even worse than it is right now which will directly effect the aviation industry.

    What are your thoughts?

    submitted by /u/motorcuadam
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    Are natural gas prices going to soar? I expect a higher price than recent 2 months but not to soar.

    Posted: 27 Sep 2020 12:48 AM PDT

    Demand during current circumstances and prices have increased since June but have taken a slight dip.

    Winter demand and storm season over for many areas should see the prices exceed 2.7 and perhaps higher than 3. https://oilprice.com/Energy/Natural-Gas/Why-Natural-Gas-Prices-Are-Set-To-Soar.html states this however, I still do not see it exceeding 2019s winter prices but we should still expect an increase. The possibility of higher demand than 2019 winter is still a viable though however considering lockdowns should enforce more people to stay at home and hear homes.

    I firmly believe gas is a solid investment now and we will see a big increase. The possibility of it exceeding 2019 however is a possibility.

    submitted by /u/TheSchaftShiftNA
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    New Nasdaq-100 Volatility Index (VOLQ): CME Group will launch its new Nasdaq-100 Volatility Index futures contracts on Oct. 5, 2020.

    Posted: 26 Sep 2020 11:05 AM PDT

    VOLQ is the newest entrant in a trading space long dominated by a single "fear gauge" VIX option. VOLQ uses the Nations VolDex methodology to measure implied volatility which interpolates the first and second in-the-money and first and second out-of-the-money call and put options for the four weekly expirations, bracketing the moment 30 days in the future. Prices for these 32 options are used to calculate a mathematically robust, closed-form measure of at-the-money implied volatility.

    VOLQ

    submitted by /u/hhh888hhhh
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    Chicago Mercantile Exchange Updates Circuit Breaker limits to 7%

    Posted: 26 Sep 2020 11:47 PM PDT

    Here is a link to the update:

    https://www.cmegroup.com/trading/equity-index/faq-sp-500-price-limits.html

    With an increase in margin requirements ending the week at some brokers, and then this dropping quietly into the weekend, any thoughts on the implications to the cash markets would be greatly appreciated.

    submitted by /u/Buildingdetroit
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    ETF’s for EV’s & Space companies

    Posted: 26 Sep 2020 08:12 AM PDT

    I'm relatively young and investor a good portion of my portfolio in a low cost S&P 500 index fund mixed with a small percentage of short-term bonds (I'm a fan of Warren Buffets methodology.)

    I really believe in the next 10-20 years electric vehicles, space travel, and artificial intelligence will be the next industries that dominate our markets. I'm looking to put a small portion of my portfolio into these. Obviously I could invest in TSLA, SPCE, and the major tech companies, but I don't want to invest in individual companies at the moment, since it's hard to tell who will be industry leaders.

    I've been really intrigued with the ETF's iShares have IRBO, ITA and ECAR. Any thoughts on these?

    submitted by /u/mysticalmusic
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    Dollar Cost Averaging and Long Term Capital Gains

    Posted: 26 Sep 2020 01:24 PM PDT

    If I'm dollar cost averaging by throwing $200 a paycheck into my brokerage account, and always buying the same one or two ETFs, how will it work to get long term capital gains? If I want to sell some, do I need to wait a full year after my last buy of the fund, even if many of the shares were bought two or three years earlier?

    Thanks to anyone that could offer some advice with this. A few keyword searches didn't reveal any similar questions.

    Edit: I didn't know the right question to ask. Once I learned here from you all about "tax lots" I was able to find all the information I need, including where to find my purchases, and that I am defaulted to "first in, first out"... Thanks all.

    submitted by /u/xselNY
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    Arbitrage Problem?

    Posted: 27 Sep 2020 04:28 AM PDT

    I had a problem where:

    contracts: RAIN: 67$, SUN 30$

    On graduation day one of these will be filled (either rain or sun), rain/sun pays owner of contract 100$.

    I had to find the arbitrage opportunity. I was told after that the solution was buying both rain and sun contracts and selling them, and when it either rains or suns you pay 100$ to the buyer, meaning you profit 3$.

    However, would you not be losing money since you bought 103$ worth of contract in the first place?

    submitted by /u/cookeninja
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    TRON2GET; NOUS DOUBLERONS VOS FONDS!

    Posted: 27 Sep 2020 04:26 AM PDT

    Voulez-vous augmenter vos fonds?

    Tron 2 Get est une plateforme d'investissement dans la technologie blockchain,

    • Dépôt minimal: 100 TRX, pas de limite maximale
    • Revenu total: 200% (acompte inclus)
    • Gains à chaque instant, retirer à tout moment

      [PROGRAMME D'AFFILIATION]

    Partagez votre lien de parrainage avec vos partenaires et obtenez des bonus supplémentaires.

    Commission de référence à 3 niveaux: 5% - 2% - 0,5%

    Commencez maintenant!

    submitted by /u/Hot-Screen8478
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    I would like to start investing in S&P but How?

    Posted: 27 Sep 2020 03:52 AM PDT

    Am a new baby in investing and I would like to start with S&P 500, and my question is How would I start investing in the index fund if am out of the U.S and I am not from U.S. what steps would you encourage me to take to start investing cause I wouldn't want to waste on social life. And would I need a credit Card or bank details to start this, if there are recommended sites or apps to start with I would really appreciate your advise. Thanks

    submitted by /u/PressureOutside
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    China's housing bubble - will it pop?

    Posted: 26 Sep 2020 04:39 AM PDT

    The title pretty much says it all. Will government policies and stubborn investor sentiment keep the bubble inflated or not? Or will there be a slow, somewhat manageable decline?

    Since most of household wealth in China is tied up in real estate and China is the second largest national economy in the world, I think it's fair to say that a housing price collapse would have serious ripple effects throughout the world.

    I know that in China average household debt is climbing as the labor market is declining. It doesn't paint a great picture, IMO...

    submitted by /u/DoItYrselfLiberation
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    Safe Harbor Investments and the US Election - What's Your Plan?

    Posted: 26 Sep 2020 07:40 AM PDT

    It seems likely that there are going to be post-election market jitters in November due to uncertainty, and if there's one thing we know, it's that the stock markets hate uncertainty.

    I know that timing the market is generally a fool's game, but given these likely future issues, do you have a strategy for moving to safer, less volatile investments ahead of the election - to secure gains to date and insulate yourselves from falling markets?

    What's your plan? Are you staying allocated as is, or moving your investments around?

    submitted by /u/paul_caspian
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    "Fidelity Repackaging Magellan As ETF"

    Posted: 26 Sep 2020 05:25 PM PDT

    From ETF.COM

    "Fidelity filed to launch a nontransparent ETF version of its most famous mutual fund. The Fidelity Magellan ETF, like its big brother the Fidelity Magellan Fund (FMAGX), is a sort of go-anywhere equity fund that can invest in both growth and value stocks from domestic and foreign markets.

    Twenty years ago, the Magellan Fund was the largest fund in the world with more than $100 billion in assets, with the Vanguard 500 mutual fund nipping at its heels (it later surpassed Magellan). Today, FMAGX has roughly $22 billion in assets with an expense ratio of 0.77%.

    It's been around since 1963, but it was under fund manager Peter Lynch, the Magellan Fund's manager from 1977 to 1990, that it became the best-performing mutual fund in the world. And Lynch became one of the most famous investors in the world."

    __

    Anyone interested?

    submitted by /u/ThemChecks
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    How do you set up a cadence/ method for DCA'ing into an index fund?

    Posted: 26 Sep 2020 10:57 AM PDT

    I like DCA'ing. I know some people dont. Ive seen research on both sides

    For those who do prefer to DCA, what is the best way to set intervals into the market. Is the delta in time more important or the drop in the market? I don't have a set method so I have tried to make my own but I also am a noob so I dont know.

    My personal is 5% of cash ( I want to invest) per month. Any time I see the desired index fund drop by more than 5% in a weeks time I 2X the amount for the month.

    As recently weve seen in the sp500 at a 10% drop I did 4x.

    Any suggestions on how to set up intervals/ a system?

    submitted by /u/SnorkelHouse
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    Funds Advantage

    Posted: 26 Sep 2020 09:41 PM PDT

    I am completely new to investing and don't have much to invest so not too big a deal.

    One question I have though is I was very interested in a fund because I think the people who run it know what they are doing.

    My question is, why the hell would buy the fund instead of just purchasing a handful of the top picks in the fund? Am I missing something?

    submitted by /u/BicycleEducational22
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    Bullish bets and short-term plays on airlines next week?

    Posted: 26 Sep 2020 12:07 PM PDT

    A stimulus bill is being discussed right now between Democrats and Republicans. After the Democrats had their bill rejected due to the insane costs, Democrats have scaled back their bill to provision only $2.4 billion in spending. I think this is significant because it shows that the Democrats are caving to Republican pressure, which indicates a compromise is coming.

    The Senate and House are both in recess for most of October. That means they must pass the stimulus bill next week or two if they want to do it before election. I think if President Trump wants to boost his re-election chances, he will do everything he can to make that happen.

    That brings me to airlines. Airline aid and bailouts are a big part of the stimulus package. Without it, they have said already they will lay off tens of thousands in October. I think the politicians are aware of this, and once they pass the stimulus bill, airlines will rally massively (>50%) like earlier this year.

    As a a result, I am buying calls and some shares on certain airline companies, namely $SAVE and Delta. Note I am avoid American Airlines, because that is simply a horrible company.

    I would like to hear thoughts on my reasoning for this short-term play.

    submitted by /u/CHlNA_NUMBA_ONE
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    Subscription Paid/Free options

    Posted: 27 Sep 2020 12:47 AM PDT

    What does everyone use or go to for info on companies that are up and coming that may not be the top of the talks.

    The second question relates to a paid subscription that is reasonably priced that presents useful info regularly that can influence markets later on?

    Something that also adds in an analysis of the company and its prospects?

    It can be a paid subscription or free.

    I am new too trading and investing as of this year. I started doing it as a hobby and just want something I can look at that has the bottom line best info on a company. I use TOS.

    submitted by /u/aaalderton
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    Thoughts on investing into UPS / DHL / FedEX / ColdChain Infrastructure producers for global vaccine distribution?

    Posted: 26 Sep 2020 10:10 AM PDT

    As UPS knowingly having upscaled their their cold chain capacity as well as DHL and FedEX reportedly doing the same I was wondering what your people's opinion on the subject is as most of the Cold Chain Infrastructure companies that my research could find are only privately listed, if at all.

    It is just an event that we anticipate happening and I think it would be nice to discuss on how to best go about losing money together once the golden hour of realizing this opportunity to lose money hits.

    Edit: Albeit being phrased sarcastically in the spirit of this sub's slogan, It is my first post here and I would like to get to know the community a bit better. So please, share your honest thoughts and concerns on the subject as it, to me, is merely an event that I can picture happening and where I can see a certain logical development to potentially profit off of.

    submitted by /u/Evoxity
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    Non-US TD Ameritrade investing advice

    Posted: 27 Sep 2020 12:25 AM PDT

    Hello guys! I'm a foreigner and I've been wanting to invest for some time now. First I started with eToro to get my feet wet and I recently opened my TD Ameritrade account. My initial plan was to fund the account every 3 to 4 months, however with my last wire transfer, the fees were about 4% of the wired amount (I was planning them to be around 1%) and I think it's too much. I've heard about Transferwise but I think their fees are about the same.

    I wanted to know your experience with the international wire transfer fees, do you think that 4% is too much? What should I do now?

    I'm open to any suggestion. Thanks in advance!

    submitted by /u/aleonjo
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    Who is right, Jim or Gary? (I am new to this)

    Posted: 26 Sep 2020 11:26 PM PDT

    Jim Brown points out that he bought 1000 shares in AllLife Insurance a year ago at a price of 500p each. He has just received a dividend of 40p on each share. He is very pleased with this 8% return on his investment – much more than most shares have been paying.

    Jim's friend, Gary, points out that AllLife Insurance has been at the centre of a scandal since

    Jim bought the shares. It missold a lot of personal pensions and is going to have to pay compensation to policyholders who were the victims of its poor advice. The shares now have a price of 400p. 'It has been an unsuccessful investment' says Gary.

    'Not at all' says Jim. 'The only share price that matters to me is the price at which I eventually sell the shares. And I am certainly not going to sell when the price is depressed as it is today. I would not accept that there is anything unsuccessful about my investment. All shares have their ups and downs. They don't matter to a longterm investor like me.'

    Who is right, Jim or Gary?

    submitted by /u/nen_mdanial
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    Chargepoint - A n EV Charging System Stock To Index EV Adoption

    Posted: 26 Sep 2020 06:07 AM PDT

    Chargepoint has been bought by a SPAC and currently trades under SBE. They are the largest EV charging network in the US and plan to replace every gas station in the world.

    The investor presentation can be found here:

    http://switchback-energy.com/wp-content/uploads/2020/09/ChargePoint-New-Investor-Deck-23-Sept-2020-8K.pdf

    they will use the new round of funding to rapidly expand, especially in home charging.

    The investment thesis is that eventually everyone will need a charging station in their home or while out and they are positioned to be #1 in this market. So the Rate of Growth correlates to the adoption rate for EV.

    The disruption is what's called destination charging. Charging takes 30m to a couple hour to top off so you can get back to the suburbs. Gas stations would have to install expensive DC level 3. You would pull up and wait 20m for a full charge. Or;

    You go to a destination and plug in at the parking lot hosting a charge point. While you're doing your errand your car is being topped off.

    Destination charging will disrupt the gas station model because you can top off at your destination and not need to go to a hub. Or you can charge while at work.

    This destination charging moat is what chargepoint continues to build out.

    And as we all know, California has said starting in 2030, no carbon based cars for sale. Furthermore, EV adoption will be subsidized, if Biden gets in. Those are huge tailwinds for this company.

    Unlike NKLA they have products and have grown revenue y0y.

    So my question for this community, is what about the company, financial, or market make you not want to buy in now?

    Editorial: current IPOs are so richly priced that all the value has been unlocked long before IPO. SPAC seem the only way to unlock value in early stage companies.

    I wanted in on SNOW, but the price was too high. There are lot of possible pump and dumps with SPAC (NKLA, etc) but each should be judged on the merits of the company and I can't find any red flags with SBE (ChargePoint). So I'm asking for the community to tell me why I shouldn't invest in this seemingly amazing growth stock.

    submitted by /u/hello-world-foo-bar
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    Calculating your Portfolio's Performance Annually (% +/-)

    Posted: 26 Sep 2020 10:49 AM PDT

    Ok, I swear I've tried to research and search this before posting, as it seems such an obvious question. So, I apologize in advance, but I must be searching the wrong terms, or confusing terms.

    • Problem Statement: I'd like to see what my annual % growth/profit is on my portfolio, 1%, 2%, -3% etc. year on year

    I'm 31 currently and in my younger, naive days I was doing more individual stocks and I am at the point I'm starting to try and consolidate and look at more funds etc. But I'd still like to evaluate how the portfolio performs compared to index funds and others, even if it is bad news.

    • The issue I have I'm running in to, is that if I deposit a couple of hundred bucks each month to my brokerage, plus the occasional ad-hoc top up of $1k or something. That should not be included in any % growth. I'm wanting to exclude cash deposits and just focus on returns.

    To me it seems a straight forward ask but maybe I'm missing something fundamental or have flawed logic here.

    • My thought would be I'd have to export everything to excel and really manipulate data by excluding deposits etc. which seems quite the cumbersome exercise for such a standard measurement. So is there somewhere/something I need to look up, or a term I'm not familiar with?

    My current scenario is I use Ameritrade and in March 2016 I opened it with $34,000. As of today it is worth $115,000. In simple term I'm trying to figure out if I've done "good" or not...or if that growth is mostly attributed to top-ups.

    Hope that makes sense?

    submitted by /u/seattleliverpool
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    AMZN vs AAPL and AMD vs NVDA

    Posted: 26 Sep 2020 02:42 PM PDT

    AMZN vs AAPL

    And

    AMD vs NVDA

    To me all of these are solid stocks, but if you personally had to pick only one from each group which ones do you believe have higher growth potential over the next 5 to 10 years?

    I already have a stake in all of these companies, but I'm looking to figure how to allocate new investing money other than a simple equal division

    Thoughts?

    submitted by /u/DogtorPepper
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