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.
- SoftBank is sitting on trading gains of about $4 billion after founder Masayoshi Son’s bets on equity derivatives,
- Intel : the big picture and why I'm bullish on it
- What would you do with nothing but 250K dollars
- Dollar Cost Averaging (DCA) Optimization
- If the dollar crashes, wouldn't a market based index fund protect you as much as gold?
- Personal learning curve
- People attempting to live off of dividends- is this strategy realistic/stable, especially when putting all of your money into 'safe' ETFs to attempts to live off of the returns. What happens in this case if a pandemic hits and all your ETFs drop in value [full details in text]
- Are ARKK, ARKQ and ARKW worth investing for a long term considering their exposure to TSLA?
- Recommendations and reviews for Robotics Industries?
- Do ETF's move the same way stocks do?
- Having multiple dividend ETFs
- Tax Loss Harvesting with Charles Schwab Intelligent Portfolio.
- How should you play the yield curve as per the outcome in November?
- Anyone know some good subreddits or discords for investing in collectibles.
- Looking to start investing. Advice on books etc
- Buying Top Holdings in a Specialized ETF rather than the ETF itself
- New to investing, dividends, and expected returns.
- Briggs & Stratton stock. Thoughts?
- Investment advice needed. Please read details. Need ideas.
- Does it ever make sense to be simultaneously bearish on stocks, gold, bonds AND the dollar?
- Should retail investors (us) demand discontinuing pre-market and after hour trading?
- The internet and the stock market
| Daily Advice Thread - All basic help or advice questions must be posted here. Posted: 06 Sep 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: 06 Sep 2020 06:55 PM PDT SoftBank Group Corp. shares tumbled in Tokyo trading after reports that the Japanese conglomerate made substantial bets on equity derivatives amid the surge in technology stocks. SoftBank shares dropped as much as 5.4%, the most on an intraday basis since April. The stock had gained 33% this year before Monday. The Financial Times, Wall Street Journal and Zero Hedge reported that SoftBank was making massive bets on technology stocks using equity derivatives. The FT labeled SoftBank the "Nasdaq whale" that "stoked the fevered rally in big tech stocks," though it didn't include details of any trading. The FT later reported that SoftBank is sitting on trading gains of about $4 billion after founder Masayoshi Son's bets on equity derivatives, citing people with direct knowledge of the matter. The Japanese conglomerate said in August that it was starting a new unit to trade public securities, pushing beyond its traditional base in telecommunications and private startup investments. Bloomberg reported in August that SoftBank was targeting investments of more than $10 billion, perhaps tens of billions, and would use financing structures that would allow the company to avoid showing up in public disclosures of shareholding. The Japanese company's derivatives strategy has been built over the past few months, the FT cited the people as saying, adding that SoftBank has spent about $4 billion on options premiums focused on tech stocks over that time. SoftBank now has large but unrealized profits, and the trades have been deeply controversial even within SoftBank, the newspaper reported. SoftBank declined to comment. The Wall Street Journal reported that SoftBank spent about $4 billion buying call options on stocks, while also selling call options at higher prices. The idea that options buyers could drive extreme rallies in technology stocks -- and push benchmark indexes to record highs -- would have drawn skepticism in the past. But as call volumes have exploded in stocks such as Apple Inc., Amazon.com Inc. and Tesla Inc., analysts are beginning to embrace the theory. They point out that traders could have outsize influence by concentrating their bets on a narrow set of high-profile names while other trading activity is reduced. "In a world where volumes are distorted by the frantic trading of algos, any real order flows may have surprisingly large impact on prices," Peter Tchir, head of macro strategy at Academy Securities, wrote in a note Tuesday. "By trading options, they leverage their position." [link] [comments]  |
| Intel : the big picture and why I'm bullish on it Posted: 06 Sep 2020 11:25 AM PDT I will start off my discsussion using a couple of examples where investors/analysts missed the big picture and the company/stock has proven that they're much more than that. Microsoft In July 2013, Microsoft stock had the biggest drop of the century after reporting their earnings. The stock dropped because of investors disappointment in the Surface RT laptop. They ignored the biggest elephant in the room that is Windows Azure, now known as Microsoft Azure. Azure is Microsoft's cloud computing division and it has been the major growth driver for Microsoft. Of course, the CEO change from Steve Ballmer to Satya Nadella helped but Satya's vision was all about cloud computing and it was completely ignored by investors at that time. Apple Back in 2018, investors/analysts were focusing on iPhone X sales figures. Warren Buffett saw the big picture. Billionaire investor Warren Buffett said long-term investors of Apple's stock shouldn't obsess with near-term iPhone sales. "The idea that you're going to spend loads of time trying to guess how many iPhone X are going to be sold in a three-month period totally misses the point," he stated. His big picture was looking at Apple as a brand and its ecosystem https://www.cnbc.com/2018/08/30/warren-buffett-says-he-bought-just-a-little-more-apple-recently.html Look at where Microsoft and Apple stocks were then and where they are trading at now. Intel I'd like to use the same logic for Intel. It dropped 20% after the earnings call last quarter in July. The big picture Intel's Investors/analysts are missing is that they are ignoring this industry leader's methodical transition into higher growth businesses and focusing solely on solvable supply chain problems ( 10 nm/7 nm transistor density issues). I will not be discussing the fact that AMD/NVidia are using 7 nm process and that Intel isn't. Also, the fact that TSMC will be on 5 nm by the time Intel fixes the 10 nm/7 nm node problems. Those are problems I'm well aware of and they have been beaten to death already. There is nothing I can add to that. I will talk about that later on but in the end as not the focal points. What I'd like to talk about and focus on is the data-centric transformation and its MobilEye division. Data Centric Transformation Intel in 2019 pivoted from being a PC centric business to a data centric business. The TAM of this is 250 billion dollars. Revenue in this business group has grown from 42% of revenue in 2015 to 51% of revenue over the TTM. While many business transitions result in periods of low performance, as firms switch focus from declining to new businesses, Intel has managed to grow its revenue by 12% compounded annually over the past four years as it better positions itself for future growth. Self driving business Intel purchased MobilEye in 2015. It is now a wholly owned subsidiary of Intel . Mobileye has a plan to dominate self-driving. Self driving taxis and cars are a big growth business. MobilEye is in a great position to capitalize on this business. Mobileye says it shipped 17.4 million systems last year. Today, over 40 million cars have Mobileye technology installed, and our products have been selected for implementation in serial production of 313 car models from our 27 OEM partners by 2017 (compared to 36 car models across seven OEMs in 2010). Some of the partners include Volkswagen, BMW, Nissan, Ford. It also has partnered with NIO, a Chinese EV company which people have dubbed the Chinese Tesla. The firm's acquisition of Mobileye strategically positions it to build out its driverless technology business as well. In just three years, Mobileye has experienced rapid growth, with revenue increasing from $210 million in 2017 to $879 million in 2019. Its share of automobile semiconductor sales increased from just 0.5% to 1.9% over the same time. If Mobileye continues taking market share in this fast-growing segment, Mobileye's could provide a meaningful contribution to Intel's operations, as it made up just over 1% of revenue in 2019. ResearchAndMarkets.com expects the autonomous/driverless market to grow 18% compounded annually from 2020 to 2025. Intel is positioned to grow with this new market. https://www.zdnet.com/article/ford-expands-partnership-with-mobileye-intels-autonomous-driving-business/ https://www.theverge.com/2018/10/29/18039216/volkswagen-intel-mobileye-self-driving-ride-hailing-israel-2019 https://newsroom.intel.com/news/mobileye-nio-partner-bring-level-4-autonomous-vehicles-consumers-china-beyond/ https://www.forbes.com/sites/greatspeculations/2020/08/18/put-your-chips-on-the-table-with-intel-corporation/#527d69d35951 https://www.engadget.com/mobileye-testing-autonomous-cars-germany-104521486.html PC Business This is the side of Intel most people immediately associate Intel with. Intel's PC-centric business is not something to write-off. There is still a piece of the PC-centric market where Intel has an opportunity to grow: graphics processing units (GPU). Allied Market Research, expects the GPU market to grow from $19.8 billion in 2019 to nearly $201 billion in 2027 or by 34% compounded annually. For example, Intel is aggressively entering the discreet GPU business, which is about 80% of the current GPU market. The iGPU processors codenamed Tiger Lake just released September 2nd. Intel poached AMD's GPU guy Raja Koduri and nVidia's Tom Peterson. Intel hired engineers and marketing experts from Advanced Micro Devices and NVIDIA, the market leader in the space, to assemble a team to develop and rollout the firm's Intel Xe GPU. Intel is also releasing entry level processors. The entry-level processors will be targeted at budget-tier laptops and fanless mini desktops when they launch in early 2021. https://www.nextplatform.com/2020/09/02/intel-puts-its-xe-gpu-stakes-in-the-ground/ https://wccftech.com/intel-jasper-lake-10nm-tremont-atom-cpus-leak-pentium-celeron-skus-2021/ 7 nm/10 nm process Since I have your attention until here - I'd like to say one final thing about this debacle. Lot of people assume that Intel's problems with this are due to complacency. Its not. Its due to Intel attempting to achieve and do something others have been unable to do, which is the exact opposite of complacency. Intel tried to use GAAFET for 7 nm when TSMC and Samsung warned Intel not to. Intel was warned by TSMC and Samsung that the GAA-FET technique is too challenging to implement at this point in time, but Intel's pride and persistence led it to stubbornly try and tackle the GAA-FET problem, until it finally conceded this July. I agree Intel fucked up here but the point I'm trying to make is that this was not due to complacency as widely believed. Intel has a lot of management problems, hostile work environment etc but complacency is not one of them. Intel never got complacent about its objectives, but it may have gotten complacent about its approaches, methods, and processes. https://old.reddit.com/r/hardware/comments/i8qrx4/intel_exemployee_reveals_insider_details_on/ https://www.dvhardware.net/article73530.html Tl/DR; Post Summary / Post Script : I'm perfecty aware that AMD and nVidia are eating Intel's lunch and have better more powerful CPUs/GPUs. However, Intel is much more than that and its other divisions are what will drive future growth. Analysts and investors are missing this big picture. [link] [comments]  |
| What would you do with nothing but 250K dollars Posted: 07 Sep 2020 03:00 AM PDT if you had 0 assets aside from a few personal items and a car and suddenly come across a sum of 250K how/what would you invest in? im 20 and a broke student, and due to some circumstances im receiving compensation of up to 500k. i have 0 experience in investing but i am curious to what more experienced people would do in this situation [link] [comments]  |
| Dollar Cost Averaging (DCA) Optimization Posted: 06 Sep 2020 01:59 PM PDT Hi, This might be the dumbest question I've asked yet, but here goes: If my intent is to dollar-cost-average, let's say $1000 every month into a given stock (or mutual fund, or ETF, or whatever) for forseeable future (let's say 5 years or more), is there an "optimal" way to do this? For example, the "simplest" way would be to just dump it in on the first Monday (or whatever) of each month... (... and I know I could further diversify the cost "dilution" or "diversification" effect further by breaking it up into smaller (say 4 * $250) chunks and buying every single Monday...) ... but what I mean by "optimize" is instead buying on fixed / random days, buy ONLY after some trigger event, such as only on days immediately following 2 consecutive days of negative performance of that stock (or mutual fund / ETF / etc...) - OR some variation of this logic... At first, this sounds like betting on black at the roulette table only after seeing a string of reds, but if I'm bullish on the stock long term (positive slope), and it has historically shown more days of positive returns than negative returns (so right-ward skew from a probability perspective, I guess?), then can't it be said (mathematically) that you can do "better" than simply dumping it in on random days each month...? Thank you a million in advance, and once again, apologies if this is the dumbest question you've ready today EDIT: Was completely failing to account for the opportunity cost of "missing" those green days while waiting for the red days. I was far too focused on trying to optimize the outcome of "the day after my investment". Thank you all! PS - I still would like to know if "the day after" can be optimized given upward slope and right skew, but that might be a question for a math subreddit [link] [comments]  |
| If the dollar crashes, wouldn't a market based index fund protect you as much as gold? Posted: 06 Sep 2020 10:52 AM PDT The board based market index fund would inflate and become more expensive as the dollar inflated and became weaker against foreign currencies, and gold would also become more expensive and track the inflation. The recommendation to buy gold and silver is gaining momentum, but I wonder why someone couldn't get the same protections from just buying a market based index fund. Is my understanding of this incorrect? [link] [comments]  |
| Posted: 06 Sep 2020 03:04 PM PDT As a beginner investor (just 2 weeks) I'm curious to hear how long it took you to become a confident investor, familiar with all the different types of index funds, know all the lingo, how long it took before being confident in your own ability to determine a stocks value and if it should be invested in intuitively, and analyse a stocks statistics like it's second nature, etc. [link] [comments]  |
| Posted: 07 Sep 2020 01:17 AM PDT Hey guys, I've seen post/videos of people investing all their money into dividend stocks and then attempting to live off of the money they make from dividends while their initial investment never gets touched. Example, investing 200k into your 'dividend' portfolio and then living off of the 1k or whatever your return was for that period that was generated from the dividend stocks. Essentially this logic makes a lot of sense. ETF's are essentially seen as really slow growing stocks but very safe since they dont fluctuate like crazy. So of course you would think, if these ETFs are not risky and they generally have a steady ~8% annual return on my money, I can invest a lot of my money into the creation of a 'dividend' portfolio, live just off of my positive return for the period, and the initial investment amount hasnt changed (since ETF's are 'safe'), thus leading to 'infinite money' What happens in a pandemic for example where everything crashed like crazy? In this scenario, you could technically still live off of dividends but you just lost a whole bunch of money from your initial investment amount. technically, this means that in these specific situations, attempting to go down the 'living off of dividends' route is not stable since you just lost more money during that drop compared to what you can make back from your 8% return that period/year (thus having a negative gain overall). Is this correct or an I missing something here? Thanks to anyone for the help [link] [comments]  |
| Are ARKK, ARKQ and ARKW worth investing for a long term considering their exposure to TSLA? Posted: 07 Sep 2020 12:41 AM PDT I recently invested a small amount in the ARKK, ARKQ and ARKW funds. I was always skeptical of their exposure to TSLA. It has benefited those funds recently, but their TSLA holding seems like a poison pill to me. Not sure what they would do with TSLA and how TSLA itself would perform in future. I am more interested in investing potential growth stories and am not keen specifically on TSLA. I am also looking for long-term. Are these ARK funds good to invest in? Are there other alternatives? I have been thinking of VO (for mid-cap), FPX and IPO (for US new listings), FPXI (for international new listings). Any suggestions on relative merits of ARK funds vis-a-vis these? [link] [comments]  |
| Recommendations and reviews for Robotics Industries? Posted: 06 Sep 2020 07:14 PM PDT Hi, I'm relatively new to investing and I am looking for a stocks which can grow long term. I believe that robotics and automation industries still have potential to grow as more businesses and consumers are accepting automation in their production process and daily lives but I am not too familiar with the industry as well. Anyone here would like to share their views on the outlook of the industry and what companies are worth investing in? Thank you. [link] [comments]  |
| Do ETF's move the same way stocks do? Posted: 07 Sep 2020 03:45 AM PDT G'day fellow investors. Question for someone in the know. [link] [comments]  |
| Posted: 07 Sep 2020 02:40 AM PDT Having multiple dividend ETFs I'm looking for 1-3 ETFs that would compliment each other in a taxable account as a portion of a portfolio. Since it's a taxable I don't want anything too high of yield like 5+% or anything significant in REITs. The ETFs I was looking at are VYM, SCHD, DGRO, VIG. I was thinking about going with 2 or 3 of these. What do you think? [link] [comments]  |
| Tax Loss Harvesting with Charles Schwab Intelligent Portfolio. Posted: 06 Sep 2020 09:11 AM PDT Hello! Does anyone have experience with Charles Schwab Intelligent Portfolios and Tax Loss Harvesting? I am looking to open a taxable account that my benefit from automatic TLH. I appreciate the lack of management fee from Charles Schwab as compared to Betterment and Wealthfront 0.25% fee. Another concern is possible wash sale implications between other retirement accounts that hold Vanguard index funds such as VTSAX, VTIAX, VBTLX and target retirement funds VFFVX, VIVLX, VTTSX. [link] [comments]  |
| How should you play the yield curve as per the outcome in November? Posted: 06 Sep 2020 08:55 PM PDT Hows it going r-investing ? 💵 If an investor has a particular view on who wins in November and controls the branches, where would you invest along the yield curve. Lets keep this discussion to fixed income since the equity markets are most likely staying flat or up either way. As for my own views, I humbly suggest if the left wins all 3 branches your best bet is leveraged it going up, divided with upper house right it's going to be flat, and major right victory a further downward trend. Additional extra text to meet the character requirements thanks r-investing for your time! ⏰ [link] [comments]  |
| Anyone know some good subreddits or discords for investing in collectibles. Posted: 07 Sep 2020 12:35 AM PDT I'm looking for a place where I can get second opinions on collectibles I'm considering investing in. Not really on a big scale, just holding onto a few cool things and making a couple bucks after a while. Mostly into video game merch like character statues. [link] [comments]  |
| Looking to start investing. Advice on books etc Posted: 06 Sep 2020 04:53 PM PDT Hey, so I am new to investing and done a little research, but I'm hoping people have some good books to read or YouTube channels to watch that explain what to look for in a companies paperwork. I'm saving cash atm and am looking to start investing in November time. If anyone has books to recommend, YouTube channels to watch or websites to sign up to/apps let me know :) TIA [link] [comments]  |
| Buying Top Holdings in a Specialized ETF rather than the ETF itself Posted: 06 Sep 2020 11:44 AM PDT I've been looking into moving money that I have in bonds into other assets given current interest rates. Specifically I am looking at Energy and Metals. When looking at Energy I've noticed that most ETF's and Index Funds in the space are very heavily weighted in 4 - 5 stocks. Exxon, Chevron, Conoco, BP, will usually make up anywhere from 30% to 60% of the ETF. Given how skewed the ETF's seem to be towards these companies. I am curious whether it makes sense to buy the entire ETF or purchase the top holdings individually. [link] [comments]  |
| New to investing, dividends, and expected returns. Posted: 07 Sep 2020 12:03 AM PDT I've always been fascinated in investing for the future if that means for personal health or financial growth. A couple days ago I finally set up my first investment account through Robinhood and I'm hooked! On the first day in the market my tiny account of a couple hundred grew by 4.45%. I have no idea if that's amazing growth or fairly average. For those who have been investing for a while how much does your account grow by each day, week, month, or even year? Since I've started investing I've been doing a lot more research and I've stumbled upon dividends. I tried my best to understand them but I'm still confused on what they are and how they work. Does every share I buy yield a dividend?.. or how do I buy into them? And how can I tell how much my dividends are worth? I know quite a few people make a living off of their monthly dividends that they get paid. I hope I'll be able to grow my account to a point where my investments grow faster than I can contribute. [link] [comments]  |
| Briggs & Stratton stock. Thoughts? Posted: 06 Sep 2020 06:44 PM PDT I just wonder what everyone's opinion is on Briggs & Stratton stock is. It looks like they were delisted for a bit, but now back and trading at pennies? Correct me if I'm wrong. Wikipedia says they were purchased by KPS Capital Partners which owns LifeFitness products, Lufkin products and some other companies. KPS Capital Partners appears to buy these bankrupt companies and restructure them so they are profitable. They did the same thing to MCI bus lines when they went bankrupt. My gut feeling is that this is a huge household brand that will turn around again under this new ownership and that this would be a solid stock buy IF they remain public and crest above 15 dollars a share. But what do you think? Would Briggs & Stratton be taken off the market? [link] [comments]  |
| Investment advice needed. Please read details. Need ideas. Posted: 06 Sep 2020 03:05 PM PDT I need some inspiration and advice. For this reason I read various threads and decided to open another thread for something more personalized. About me: I live in EU and I have a day job that pays close to 1K per month. That's my main source of income. Furthermore, I use Fiverr and I do content writing mainly. No big money from there. I'm working on improving my gig and I would like to add more gigs that sell. I also get 300 euro / month from an appartment I rent to someone and I have some money in a "closed" deposit account in the bank. I also have 2500 euro sitting in bank open. So basically, I have 2500 euro avalaible and a steady income stream of 300 euro per month to invest as capital. What I would like to ask if you can tell me any ideas to invest these money. I read a lot of stuff, like p2p lending platforms, forex passive and non-passive ideas, and the list goes on. Any really good ideas that work? I'm willing to put effort to build something new or expand something existing. I'm open to passive or non-passive ideas. Low risk is preferred. Thanks [link] [comments]  |
| Does it ever make sense to be simultaneously bearish on stocks, gold, bonds AND the dollar? Posted: 06 Sep 2020 03:34 PM PDT So I've been trying to convince a friend to start investing and so far he's got the first few steps down. He's opened a trading account with a small ($1200) initial deposit and I've encouraged him to buy a multi-asset portfolio with stocks, bonds and a bit of gold in the hopes that the reduced volatility would prevent him from panic selling. Well Friday came and he tells me he sold everything when it all went down. My friend logically understands that the fed is intentionally pushing inflation and sitting in cash is a losing proposition long-term, but at the same time he thinks everything is too expensive and he will wait for a better time to get back in. I'll admit everything is indeed quite pricey, but is there any logical basis on being bearish on all assets at the same time? [link] [comments]  |
| Should retail investors (us) demand discontinuing pre-market and after hour trading? Posted: 06 Sep 2020 11:25 PM PDT The market feels like big boys playground rather than fare play. So much volume is being traded during after hours on each BIG day. Just on Friday, institutional investors traded more than 5M shares of Tesla after hours, that converts to $2B. I am not very clear on why is this still a thing tbh, so would love your opinion on it. I especially hate seeing my holdings go 10% down after a company X delivers bad or slightly bad earning reporting COMPARED to analyst expectation within 30 minutes of conference call - while I watch like a sitting duck! [link] [comments]  |
| The internet and the stock market Posted: 06 Sep 2020 05:57 PM PDT What and where are the numbers of stock prices. What I was to know is how world events, earning reports, etc. influence the price of these numbers. Who is the middleman? A computer? Something else? How would a computer know to make the market go down if X,Y,Z? How does this work? [link] [comments]  |
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