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.
- Judge not convinced by Epic's arguments against Apple; Google to begin collecting 30% cut on in-app purchases in 2021
- Bloomberg: Nikola founder Milton's fall reveals what his backers feared
- [The Information] How Uber Wasted $2.5 Billion on Self-Driving Cars. Uber is nowhere close to getting a car that can drive reliably for any length of time. The unit is riven by infighting and critics question why CEO Dara Khosrowshahi hasn’t held the team accountable.
- Palantir's IPO is tomorrow.
- GM will repay $28 million to Ohio in tax incentives after closing plant
- Please Help Us Find My Dads Lost Stock
- Swing trading to average down positions.
- Washington Post on Electric Truck Startup Going Public and 28-Year Old Billionaire
- Your oldest/newest stocks?
- Feedback on this strategy?
- Probably a very stupid question on Bond Yields
- Investment Portfolio Management Software - suggestions?
- DCAing Properly
- A useful JPM study about hedging and protecting from volatility
- How much margin and percentage of leveraged products?
- Value investors : do you pay any attention to price levels at all ?
- Writing Covered Call with ESPP
- If I buy an ETF / index fund, what happens when the stocks that form it change?
- Dropbox stock
- Leveraged Bull ETFS for the Long Term
- Cloud computing
- Granite Shares x3
- IPOs dropping this week
- QQQ/TMF (3x leveraged long term treasury) 75/25
- A question for my (american) investors: What is your opinion on Wallmart (WMT)
| Daily Advice Thread - All basic help or advice questions must be posted here. Posted: 29 Sep 2020 05:09 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: 28 Sep 2020 05:41 PM PDT Relevant articles: NYTimes, CNN, CNBC
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| Bloomberg: Nikola founder Milton's fall reveals what his backers feared Posted: 28 Sep 2020 05:58 AM PDT Back in March, long before a short seller would raise questions about electric-truck company Nikola Corp. and hasten its founder's exit, early investors in the company were expressing concerns of their own. Those investors, led by mutual-fund giant Fidelity Investments, were worried that Trevor Milton, for all his brash visionary talk and Twitter braggadocio, lacked the ability that Elon Musk possesses to deliver these sorts of newfangled products to market. They lobbied successfully to remove him as CEO before the company's June IPO and for Milton's father to leave the board, according to people familiar with the matter. When the deal was done, Milton only held the title of chairman, the post he resigned this month. The back-room negotiations show that Milton's past was a concern to investors months before General Motors Co. executives placed a bet on the company in a US$2 billion deal carved out after the IPO. They liked Milton's vision and his ability to raise cash and felt the venture was safeguarded from his shortcomings in operations by his push upstairs, say people familiar with the matter. Nonetheless, the events that have unfolded since the short-seller report, with Nikola's stock plunging amid a steady stream of negative headlines, have exposed just how high the risks still were. Now, it's up to former GM Vice Chairman Steve Girsky, whose blank-check company VectoIQ took Nikola public via reverse merger in June, and Nikola CEO Mark Russell to stabilize the business and regain investor confidence. The plan with GM was to use Nikola's hot stock and Milton's ability to raise money to build a hydrogen-fueled trucking business with GM's technology. "There is obviously someone on the diligence side who isn't going to get a nice bonus this year," said Reilly Brennan, founder of the venture capital fund Trucks Inc. "The best possible thing if you're a shareholder is that Milton is no longer running the company and you have Girsky as chairman and GM providing technology." The GM deal was originally scheduled to close Sept. 30, and the automaker has said it plans to carry through, but that timing may slip, say people familiar with the matter. BP Plc is still engaged with Nikola in talks to partner on a network of hydrogen fueling stations for fuel-cell trucks the company hopes to sell, but also is slowing the pace for a deal, said the people, who asked not to be identified discussing private information. BP and GM declined to comment. Milton's tale reads like a Greek tragedy. The report by short seller Hindenburg Research accused Milton of overhyping Nikola's technology and has prompted investigations by the Justice Department and U.S. Securities and Exchange Commission. A cousin has accused him of a decades-ago sexual assault, which he denies. The company's value peaked at US$30 billion and is now worth about US$7 billion. Girsky and GM Chief Executive Officer Mary Barra have both said publicly that they did plenty of due diligence. People familiar with the matter say that GM found out when scouting the deal that it had better batteries and fuel-cell technology but joined forces because Nikola had a working semi truck and access to capital markets. In addition, GM will get paid to build Nikola's Badger pickup on existing assembly lines. Milton was so excited to get the Badger pickup program moving that he signed a deal that heavily favored GM, one of the people said. Nikola's stock and GM's US$2 billion stake are worth less than half what they were on Sept. 8, when the deal was announced. Milton's own stake is worth US$1.7 billion, down from almost US$5 billion at one point. Milton said in a June interview with Bloomberg News that he grew up in modest surroundings in Layton, Utah. His family moved to Las Vegas when he was very young and he lost his mother to cancer shortly after moving back to Utah in the sixth grade. He wrote on Twitter he didn't finish high school, earning an equivalency certification instead, and later dropped out of college. His Twitter account has since been deleted. He grew up in a tight-knit Mormon family, according to Aubrey Smith, his first cousin. She went on social media recently and accused him of sexually assaulting her in 1999 when she was 15 and he was 17. In a public account on Facebook and Twitter, and repeated in a phone interview, Smith said that Milton came onto her at the funeral of their grandfather. He took her shirt off without permission, Smith wrote, and then he touched her inappropriately before someone knocked at the door and she ran out. Milton denied the allegations through a spokesman. Smith said Milton raised money from family members to get his start. He founded and ran several businesses, including a home-security company that Milton claims he sold for US$1.5 million. Next, in 2009, he founded an e-commerce platform called Upillar.com, which Milton claims "pioneered the shopping cart online." Then he got into clean propulsion but ended up embroiled in litigation with dHybrid Inc., which he founded in 2009. The company retrofitted diesel vehicles with natural-gas-burning turbines, claiming the dual system had greater efficiency. But a deal with Swift Transportation Co. in 2010 ended in court when Swift alleged dHybrid defaulted on a US$322,000 loan and that it retrofitted only half of the agreed vehicles. The case was dismissed in 2015. Milton later tried to sell dHybrid to a company called sPower in May 2012 but that, too, got mired in lawsuits after sPower backed out and accused Milton of exaggerating its technological capabilities. Amid the litigation, Milton started another company with a very similar name, dHybrid Systems, selling it in 2014 to Worthington Industries. During an interview with Bloomberg in June, Milton said that dHybrid Inc. was a success but conceded that, "we ended up closing that one down because of some litigation." His next startup was Nikola, founding it in 2014 in Salt Lake City before moving to Phoenix. Emulating Musk, he took the name from the electricity pioneer Nikola Tesla, and the company was soon billed as the Tesla of Trucks. His plan was seen as potentially disrupting the entire transportation industry by making trucks that ran on batteries or hydrogen-fuel cells. He also planned to build a network of hydrogen filling stations. Friends and Family Milton had friends and family members working for Nikola despite resumes that didn't match the job. His brother, Travis Milton, is director of hydrogen and infrastructure. His LinkedIn profile shows that most of his experience was being "self-employed" in Maui. The short seller, Hindenburg Research, said that Travis Milton poured concrete as a contractor. Milton's father Bill was originally on the board but stepped down when VectoIQ took the company public. The company's stock prospectus said that Nikola had awarded more than 3 million stock options "to recognize the superior performance and contribution of specific employees." The list included Travis Milton and an uncle, Lance Milton, the document said, acknowledging that they are relatives. As Milton went public with Nikola's technology, questions soon arose involving his claims about the company's fuel-cell system. He bragged in an investor video in 2019 that the company had created "what other manufacturers said was impossible to design." But while Nikola holds patents in fuel-cell and battery technology, most of its planned hardware was coming from German supplier Robert Bosch Gmbh. Nikola Demonstrations It became clear that Milton had gotten ahead of himself. A 2016 demonstration showed a truck that didn't have a working hydrogen-fuel-cell system and was missing key parts, people familiar with the matter said in June. Milton said at the time that the parts were removed as a safety precaution. In July of this year, he recorded a video of the semi truck in which he ran alongside the vehicle as it coasted at low speeds in a parking lot. Aping Musk's combative social-media persona, Milton took a shot at his detractors saying, "these damned trolls, I wonder if they are going to apologize to everyone for the lies they spread the tens of thousands of comments about how fake we are." Girsky said in the webcast "Autoline This Week," in which Bloomberg participated, that he has been in Nikola's fuel-cell trucks and that they work. Still, when the GM deal was done, GM will be supplying all of the technology for every global market except Europe. Nikola's pickup truck, called Badger, will use GM's Ultium battery, and the semis will run on a fuel cell developed by GM and Honda Motor Co. Since Milton's departure, Nikola has billed itself more as an integrator of other technologies into its Badger pickup and semi trucks. For GM's part, the automaker is protected from any financial downside. GM got 11 per cent of the stock for no cash investment and gets paid for its technology. If Nikola fails, GM won't lose a dime. Milton has remained silent and is out of the company. He unknowingly presaged his own downfall in the June interview with Bloomberg: "Part of becoming a better person in life is losing everything you have got and having nothing left." https://www.bnnbloomberg.ca/nikola-founder-milton-s-fall-reveals-what-his-backers-feared-1.1500376 [link] [comments]  |
| Posted: 28 Sep 2020 11:22 PM PDT After five years and an investment of around $2.5 billion, Uber's effort to build a self-driving car has produced this: a car that can't drive more than half a mile without encountering a problem. "The car doesn't drive well" and "struggles with simple routes and simple maneuvers," said a manager in the unit, in a 1,500-word email sent three weeks ago to Uber CEO Dara Khosrowshahi, warning of the issues. The self-driving–car unit "has simply failed to evolve and produce meaningful progress in so long that something has to be said before a disaster befalls us," said the manager in the email, which The Information has seen. The manager—whose identity The Information confirmed—reflects a common belief across Uber that the unit, known as the Advanced Technologies Group, is destined to lose the high-stakes race to its rivals, which have demonstrated a lot more headway, comparatively speaking. The ride-hail giant's Advance Technologies Group has been beset by infighting and setbacks, the Information reports, leading to fears that rivals like Alphabet-owned Waymo and Apple's self-driving tech may soon leave it in the dust. Despite the team first beginning its research in 2015, Uber's self-driving car "doesn't drive well" and "struggles with simple routines and simple maneuvers," a manager in the unit told CEO Dara Khosrowshahi, the report said. "The talent is still here to get this job done, but the belief is waning," he said. The manager raised the alarm because the arm of the company "has simply failed to evolve and produce meaningful progress in so long that something has to be said before a disaster befalls us," according to The Information. Teams within the group have competing philosophies, according to the report, with members who were recruited from aerospace or the government focused on safety above all, while engineers feel that progress is moving too slowly in the wake of a 2018 accident which saw a pedestrian killed by a self-driving Uber in Arizona. The engineers feel that Uber "overcorrected" following the accident, and "want to go back to the… fatality days," one member of the team told the Information. Uber has been adamant about its public commitment to safety with its self-driving cars. SEE ALSO Self-driving Uber kills pedestrian "We aren't just building software and throwing it on the road and seeing how it works. Everything we make has to have rigor around it in verification [of the software's safety]," Eric Meyhofer, chief of the self-driving unit, told the Information. "That can cause frustrations, and I see that too." Jon Thomason, who last week revealed he was leaving Uber after three years as the head of software engineering for the autonomous team in favor of a CTO position at AI company Brain Corp., said in his farewell letter that the team was increasingly "bogged down in many layers of things that are not real work, and most insidiously, activities that don't even lead to real work." Employees within the unit are reportedly skeptical of the ability of Khosrowshahi — the former CEO of Expedia — to hold the unit accountable. Former CTO Thuam Pham, who quit in April, told the publication that over the past two years he "periodically raised concerns" about how much progress was being made by the unit. "I just don't understand why, from all observable measures, this thing isn't making progress," he said. "How come there hasn't been accountability or transparency." Khosrowshahi declined to comment on the report, but Meyhofer defended the executive, calling him "more than proficient" in his understanding of Uber's self-driving goals, and adding that he "definitely has the chops to evaluate our milestones or our progress toward our milestones or to help in articulating what milestones to think about or how he'd like to see us describe our progress," he said. Meyhofer said that the self-driving unit, which last year got a $1 billion investment from a Toyota-led fund, would likely raise funds from outside investors, as profitability is still years away. "Since we took the first investment money, that began the journey of us being thoughtful about how to go the distance," he said. "We expect to have more partnerships." Shares of Uber were up 3.7 percent Monday morning after a British judge granted it an 18-month taxi license to continue operating in London, one of its biggest markets. [link] [comments]  |
| Posted: 28 Sep 2020 07:19 PM PDT Palantir is a rather unique company. They make data analytics software, which is a fancy way of saying "military grade AI." To debunk some misconceptions, this software doesn't actually collect data, it sorts it and identifies trends and anomalies. To describe it, going back to the events leading up to 9/11 there was an FBI investigation into suspected al-Qaeda members, a radio intercept where AQ planners talked about hijacking a plane that was sitting on a desk at Langley waiting to be translated, and something else hinting at an attack very soon. These clues would not be pieced together because no one person knew all these investigations existed (Washington's bureaucracy is just that massive), and they each individually were big enough to warrant panic. Afterwards, the Department of Homeland Security was created to help collate and horizontally integrate all that massive amount of data. BUT, if Palantir "Gotham" had been invented a decade sooner, it would have pieced it together automatically. Gotham first started with the Defense Intelligence Agency (DIA) and the US Army, and soon branched into other segments of US military, intelligence, law enforcement agencies, as well as allied countries. Since they often have to custom craft and install different versions based on the agency's requirements, they have had a number of R&D massive contracts. This software doesn't allow agencies to do anything they didn't already, it just saves millions of manhours because the idea of sorting through all literally tens of millions of reports by hand is mind boggling. Ergo, Palantir likes to boast they helped find Bin Laden. They also created a civilian version "Foundry." Airlines were an early buyer, as millions of dollars are wasted each year by overbookings, underbookings, and technical delays. Foundry allows them to plan and ahead. So, they certainly have something of value to sell, but this is where things get weird. Palantir is an apolitical company. That may sound like a no brainer, but consider they have worked for ICE and Customs as well as the DoD and CIA. The CEO Alex Karp identifies as a Progressive anyway. His philosophy is tech companies are rather unregulated and like to make their own rules. But Palantir lets elected officials in Washington make the rules. Considering their work, what else can they do? More weirdness ensues as Palantir will not be a democracy of shares like many corporations are. Their founders have special shares that retain 49.99999 of voting power as long as they're with the company, and common shares have less than 5% of the votes. It seems they are afraid of internal shenanigans over politics, but everyday investors and traders won't care about voting power, anyway. Palantir's business model is such there's no firm estimate on the company's real value. They work on a handful of massive contracts at a time, and several of these account for over 5% of a given year's earnings. There's no shortage of future project, though. Next is their earnings, as they rarely show a profit as earnings and expenses expand side by side. This turns a lot of investors off, but recall most of these expenses are R&D connected. These huge one time payouts in creating/improving software allow for long term profits. See the loop? Exponential growth potential. Next is this is a direct listing. Meaning they're not hiring an investment bank, but doing everything themselves. The CEO seems well experienced in selling his company himself, but investment specialize in raising a lot of capital really quickly. This cuts expenses, but much of the shares sold will be directly from insiders instead of being created via share dilution. So if they're not looking to make lots of money from an IPO, why do it?
So I recommend buying because of the saying "You want to miss out of the next Microsoft or Amazon?" Most people say that when they are recommending a stock that already mooned and is unlikely to do so again. But I use it to point out a company that has grown very quickly over the last 17 years and shows signs of exponential earnings growth. When the money they're making will catch up to their expenses is an open question, but by the time it does that'll be the sign they've already rose almost as high as they will go. Here's Why Palantir Stock Is a Buy After the IPO Palantir discloses diluted share count, suggesting valuation north of $20 billion at high end [link] [comments]  |
| GM will repay $28 million to Ohio in tax incentives after closing plant Posted: 28 Sep 2020 07:40 PM PDT General Motors Co will repay $28 million in state tax incentives to Ohio after the largest U.S. automaker came under heavy criticism for closing its Lordstown Assembly plant in March 2019. GM announced its planned closure of the plant in Northeast Ohio in November 2018 along with three other U.S. plants, drawing condemnation from U.S. President Donald Trump and many U.S. lawmakers. GM sold the plant last year to start-up Lordstown Motors, which plans to hire 400 workers to build EV pickup trucks starting in 2021. https://www.reuters.com/article/us-gm-lordstown-taxes-idUSKBN26J2HV [link] [comments]  |
| Please Help Us Find My Dads Lost Stock Posted: 28 Sep 2020 11:49 AM PDT One of my dad's first stock purchases was he bought $1000 worth of activision around 1985. These shares were brokered through L.F. Rothschild and we are trying to track them down. It seems that L.F. Rothschild went bankrupt in 1988 and was purchased and it is not very clear what happened to those who had accounts with L.F. Rothschild when trying to look on the internet. How would we be able to track these down? Would appreciate any insight, have already tried to use websites such as missingmoney.com [link] [comments]  |
| Swing trading to average down positions. Posted: 29 Sep 2020 03:38 AM PDT If I keep swing trading a particular stock, to eventually average down, to say for example 1 dollar. While taking profits on some acquisition, but never going over, my over all total invested amount, do I have to pay capital gains on the small wins that averaged me down? While then holding my 1$ position on the stock for the long term, eventually paying the capital gains long into the future? Say for example I bought 1 apple at 125$. Then it dropped down to 100$, I bought 2 there. My average position is now 108$. If I sold 2 at 110$. Is my new average 105$ for the remaining share? While not gained more then my 325$ total investment? [link] [comments]  |
| Washington Post on Electric Truck Startup Going Public and 28-Year Old Billionaire Posted: 28 Sep 2020 07:02 PM PDT A 28-Year Old Billionaire Wins the SPAC Lottery Excerpts:
Continued:
And:
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| Posted: 28 Sep 2020 12:14 PM PDT What's the stock that you've had the longest in your portfolio, and what is the stock that you most recently bought? If you want you can also share when you bought it, at what price, and why you bought it, etc - would love to hear different perspectives! I personally only started investing in stocks (had mutual funds/etfs already) after the March crash so my longest is only a few months, but my strategy is buy and hold. I first bought DIS and MSFT, and most recently added NKE and COST to my portfolio. [link] [comments]  |
| Posted: 28 Sep 2020 10:46 PM PDT So a lot of people are huge advocates for index funds because of their diversity, so I figured I would set up automatic daily investments for 15 various index funds. I figure if I have a set amount I'd like to contribute to each month I will divide that by 30 to invest that amount throughout the month as opposed to once a month. The idea is to counteract any sort of volatility. Thoughts on this? [link] [comments]  |
| Probably a very stupid question on Bond Yields Posted: 29 Sep 2020 05:15 AM PDT So I have money in VSBSX. The 30 day Sec Yield is .08%. The year to date is shown as 3.04%. I receive monthly, dividends that equate roughly to the .08%. So what is the YTD? how are they calculating a 3% return? Long story short I bought the bonds expecting to make 3% and am disappointed to see I'm making ~1%. What fundamentals am I missing here? [link] [comments]  |
| Investment Portfolio Management Software - suggestions? Posted: 29 Sep 2020 04:18 AM PDT Does anyone use portfolio management software for their personal investing? So far, I've been using Excel only because it's quite flexible and can handle the different factors that make up my portfolio. To date, I've found software providers that typically provide only half of what I'm after or the software is more suited to an institution. Some characteristics that I'd need the software to handle: I'm Australian-based. If it can handle Australian tax then all the better, if it can't then it doesn't worry me. I'd prefer it be able to handle the portfolio management and reporting function flawlessly rather than worry about tax intricacies. I posted in r/investing rather than r/ausstocks as I figured I'd get a broader audience. Feel free to move/delete if required. Cheers [link] [comments]  |
| Posted: 28 Sep 2020 04:17 PM PDT I have roughly $250 to invest weekly into stocks (I know its not much, but I max out my Roth IRA and my 401k, so this is the beat I can do currently). Currently, the way I have it tiered out is in levels, where my ETF get a majority, and then my higher weighted individual companies get less and my lesser weighted companies get more. Here is how I have it laid out currently, DCAing each week on Fridays:
Should I be tiering it out differently? Maybe my less risky and slower growth picks (like JNJ, JPM, AAPL) get less money weekly, and the more risky, higher growth stocks (like SQ and TSLA) get more? Any help/feedback would be appreciated! [link] [comments]  |
| A useful JPM study about hedging and protecting from volatility Posted: 28 Sep 2020 09:10 AM PDT Found this study from 2014 made by JPM about a few different beta hedging strategies to reduce volatility, thought I'd share. I think it's quite well-written, easily digestible. It's useful to anyone with a portfolio and about 30 mins of free-time, especially in this uncertain market. It is mainly intended to fund managers but I think it has the same relevance in a retail portfolio as well. For a summary I collected the strategies that are listed and compared with some (hopefully useful) explanation of the strategy. For better understanding it's recommended to read the study though, hope you enjoy it. 130/30This strategy typically shorts 30% of assets and use the proceeds to increase long positions to 130% of portfolio value.
Long onlyIt's as simple as it's called.
Tactical betaIn tactical beta approaches, managers use derivatives to tactically raise or reduce equity market exposure. Specific strategies to increase stock market exposure may include buying call options on individual stocks or market indices and writing put options on stocks that the investor seeks to own. Specific strategies to reduce (or hedge) market exposure may include buying put options on individual stocks or stock indices or writing covered call options on stocks that the fund owns.
Covered calls/buy-writeIn a covered call (sometimes known as a buy-write strategy), managers sell call options on stocks held in a portfolio. The manager of the strategy sells options to generate cash, thereby guaranteeing a modest return from them.
Long/shortIn long/short equity strategies, managers have the ability to buy (go long) securities they expect to outperform the stocks within their sector and sell (go short) borrowed securities they expect to underperform.
Hedging equity/options overlayHedged equity strategies (sometimes known as options overlay strategies) reduce risk by trading put and call options around an underlying stock index.
Market neutralMarket neutral strategies and other absolute return investments pursue positive returns no matter what happens to the economy, interest rates or financial markets.
Tail risk/negative correlationThere are a number of ways investors can employ tail risk hedging. One is to limit the risk in one's asset allocation by weighting portfolios to less volatile sectors. Another method is to complement one's asset allocation with option strategies or strategies that introduce asymmetric return patterns. The most explicit and predictable method of hedging against tail risk has been the purchase of put options on indices such as the S&P 500, which can work effectively as an insurance contract against any dramatic event. Another way to hedge equity exposure is to invest in strategies or securities that are negatively correlated with equities.
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| How much margin and percentage of leveraged products? Posted: 29 Sep 2020 03:13 AM PDT I thought we could have a discussion on how much margin you like to utilize and how much leveraged products (ex: spyxl, tqqq) you like to utilize in your portfolios and your reasoning. One of the things I enjoy so much about the Personal Finance & Investing sub is how articulate and well thought out the answers are and we all know these financial instruments can be dangerous but also can be good wealth creating tools when utilized properly. So I am curious what logic and reasoning you apply and why. [link] [comments]  |
| Value investors : do you pay any attention to price levels at all ? Posted: 29 Sep 2020 03:09 AM PDT Hello, I know that a lot of value investors are fundamental "purists", they won't even look at a price chart or other 'technicals'. My question is : what if you value a company and find that it has good fundamentals, but its stock price has been side-trending for decades with almost no upwards drift at all. Would you still buy it in the hope that it's undervalued ? Thanks. [link] [comments]  |
| Writing Covered Call with ESPP Posted: 28 Sep 2020 05:19 PM PDT So I have an ESPP that has grown larger than I would like. In the past, I just sell and diversify with the proceeds. I was thinking about writing covered calls to squeeze a little extra value out of these shares. I'm completely fine with letting these shares go if I get assigned. I have never done options before and am looking to learn. Are there any good resources to learn about what strike price and duration i should be targeting for a simple covered call. Most likely I wouldn't be looking to buy back my call to keep the shares. [link] [comments]  |
| If I buy an ETF / index fund, what happens when the stocks that form it change? Posted: 29 Sep 2020 02:40 AM PDT For example, let's say that I buy a small cap ETF thinking that... "Well the next big thing has got to be somewhere in that list! And diversification duuhhh" And then it turns out that it was. That one "next big thing" becomes a big company, and is thus, not considered anymore a small cap company. Would it be removed from that Small Cap ETF? And what would happen if so? Sorry if it's confusing, i didn't know how to explain myself better. Cheers [link] [comments]  |
| Posted: 29 Sep 2020 02:39 AM PDT Hey there guys. I would love to hear your opinion regarding Dropbox. The stock has been falling for quite some time now, even though quarterly earnings have been beaten. The covid situation hasn't changed much in the past months and it looks like it will have a significant effect on how we will continue to work in the future. Home office, sharing files and data etc. What do you think? Is it a stock worthwhile? Is it underrated? [link] [comments]  |
| Leveraged Bull ETFS for the Long Term Posted: 28 Sep 2020 05:53 PM PDT I have nowhere else to turn to. I have looked up countless articles and videos about leveraged ETFs to get my understanding of them. The ones I am most interested in are TQQQ or SPXL. Almost all videos I have watched use oil or bear ETFS as examples. USO, for example has an average -20.31% yoy for a 10-year period. Another example seen in videos is GUSH with a -77.78% yoy for a 5 year period. Not one video mentioned a leveraged bull ETF. TQQQ has a 51.48% yoy over the last 10 years. SPXL sitting at 29.85%. The oil and bear etfs mentioned almost never cross up above their 200 MA on daily, weekly, or even monthly time frames and have general downward movement since inception, so I would never touch them to begin with. The two bull etfs mentioned are either consistently above 200 MA on large time frames, or dip momentarily for great buying opportunities..3+6 I understand that their price action has more exposure to volatility as a result of them being leveraged, and can take a somewhat longer period to recover vs. their underlying. As someone with high risk tolerance, what are the complete negative from investing in these long term? TL;DR Bear/Oil leveraged ETFS bad, Bull leveraged ETFs good long term? if not, why? [link] [comments]  |
| Posted: 29 Sep 2020 02:17 AM PDT What do u guys think of all the cloud computing stocks and cloud computing ETFs like KLOWD are they overvalued right now or can they catch up to their growth or can they even grow more for the future The etf KLOWD has zoom in it and other stocks that has had incredible run up I think some of the stocks in the etf might be over valued will this affect the performance of anything what do u guys think [link] [comments]  |
| Posted: 29 Sep 2020 02:08 AM PDT I just found out about this recently. I was interested in it because it was offering 3x leverage on Tesla so I decided to play with 400£ see if I can make some extra money on the side. It suppose to offer me high reward vs high risk or loosing or gaining x3 but from what I noticed in the past days is that works more like x3 risk and 0.5x reward. Sometimes it just locks me in a position where I bought the stock at 20$ and it shows that at the moment that I can buy it at 22 now but if I try to sell it it will show me that is worth 19$. It always seems that when you are in the green you are making 5-6$ but when you are slightly in the red is ~-50 or -60$. Just feels like not much reward at all just loss. I am still a novice when it comes to leverage so I was wondering if I am doing something wrong or it's just a flawed system with unpredictable spikes that just moves randomly or gets moved by a few people with a lot of shares. [link] [comments]  |
| Posted: 28 Sep 2020 07:33 AM PDT New to this sub so I'm not sure on y'all's sentiments on IPOs but there are a handful of them opening up this week. I've seen some discussion around here about Palantir, but what are people's thoughts on some of the other companies about to go public? Academy Sports and Outdoors Asana Boqii Holding C4 Therapeutics Chindata Group Holdings Immunome Lixiang Education Holding Mission Produce Oncorus Orphazyme Pulmonx Yalla Group [link] [comments]  |
| QQQ/TMF (3x leveraged long term treasury) 75/25 Posted: 28 Sep 2020 06:49 PM PDT I'm very bullish on tech, to the degree that I don't mind owning 100% QQQ long term in my retirement. However, I would lose sleep over a large TQQQ position. When doing a 75/25 QQQ/TMF split, it looks like TMF is removing risk and increasing gains both. Increased sharpe, sortino, less market correlation, less max drawdown, less standard deviation. It just makes it better. Or, at least has the past 10 years. But is my thinking wrong? Since TMF is 3x leveraged, is it actually adding more risk than I'm considering? TMF does not seem nearly as dangerous to me as TQQQ. And if TMF only does well in times of falling yields, and yields are low and I'm not expecting them to go back up long term, is the mix of QQQ/TMF expected to be not as synergistic as they've been the past ten years? Thanks! [link] [comments]  |
| A question for my (american) investors: What is your opinion on Wallmart (WMT) Posted: 28 Sep 2020 03:39 PM PDT I've been investing quite some time and now recently picked up WMT because i feel like it's a safer, less volatile play compared to Tech. For the last 2 weeks they have been teading sideways staying in between 135-138 since the drop in early september. What are your expectations for the stock in the (near) future? [link] [comments]  |
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