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    Tuesday, October 13, 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: 12 Oct 2020 05:17 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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    Disney says its ‘primary focus’ for entertainment is streaming — announces a major reorg

    Posted: 12 Oct 2020 06:00 PM PDT

    Disney is restructuring its media and entertainment divisions, as streaming becomes the most important facet of the company's media business.

    On Monday, the company revealed that in order to further accelerate its direct-to-consumer strategy, it would be centralizing its media businesses into a single organization that will be responsible for content distribution, ad sales and Disney+.

    Shares of the company jumped more than 5% during after-hours trading following the announcement.

    The move by Disney comes as the global coronavirus pandemic has crippled its theatrical business and ushered more customers toward its streaming options. As of August, Disney has 100 million paid subscribers across its streaming offerings, more than half of whom are subscribers to Disney+.

    "I would not characterize it as a response to Covid," CEO Bob Chapek told CNBC's Julia Boorstin on "Closing Bell" on Monday. "I would say Covid accelerated the rate at which we made this transition, but this transition was going to happen anyway."

    "We are tilting the scale pretty dramatically [toward streaming]," Chapek said on "Closing Bell," noting that the company is looking at all investments, including dividends, as it seeks to increase its spend on new content. Chapek said the board of directors will have the final say on Disney's dividend payouts.

    Only last week, activist investor Dan Loeb called on Chapek to end the company's annual $3 billion dividend to divert more capital to new Disney+ content.

    Loeb's Third Point Capital is one of Disney's largest shareholders and bought more shares earlier this year in support of Disney's repositioning around Disney+, its flagship subscription streaming service.

    Loeb told CNBC, "We are pleased to see that Disney is focused on the same opportunity that makes us such enthusiastic shareholders: investing heavily in the DTC business, positioning Disney to thrive in the next era of entertainment."

    Chapek said the reorganization could result in some reduction of staff, but not likely at the same scale as was seen at the company's parks division last month. Disney was forced to lay off around 28,000 workers after it became clear that its Disneyland parks in California would not be reopening soon.

    As part of this reorganization, Disney has promoted Kareem Daniel, the former president of consumer products, games and publishing. He will now oversee the new media and entertainment distribution group.

    He'll be in charge of making sure streaming becomes profitable, as the company continues to invest heavily in its various streaming products. Daniel will hold the reins to all of the company's streaming services and domestic television networks, including all content distribution, sales and advertising.

    Disney is becoming more reliant on Disney+ as movie theaters have been unable to recover after being shuttered in March due to the outbreak. Ticket sales have been particularly lackluster at domestic cinemas since the industry attempted a large-scale reopening in late August.

    In recent months, the company pushed back a number of its theatrical releases including its Marvel blockbuster "Black Widow." The much anticipated Pixar film "Soul" has also been postponed. It will now arrive on Disney+ in December.

    Analysts are still awaiting word from Disney about how "Mulan" fared after Disney removed it from theatrical release and sold it through Disney+ for $30. It is expected the company will share more details about its performance during its next earnings report in November.

    Daniel will be responsible, in part, for making big decisions about Disney's theatrical and streaming release schedules going forward.

    ″[Consumers] are going to lead us," Chapek said on "Closing Bell." "Right now they are voting with their pocketbooks, and they are voting very heavily toward Disney+. We want to make sure that we are going the way the consumers want us to go."

    Reorganizing Disney's media business

    Alan Horn and Alan Bergman will remain in charge of the company's studios, Peter Rice will continue to head the company's general entertainment group, and James Pitaro will stay as head of the company's sports content.

    All will report directly to CEO Bob Chapek. The company's parks, experiences and products segment will remain under the leadership of Josh D'Amaro, and Rebecca Campbell will remain on as the chairman of direct-to-consumer and international operations. Campbell will report directly to Chapek for all things related to international operations but will report to Daniel when it comes to Disney+, Hulu and ESPN+.

    "Given the incredible success of Disney+ and our plans to accelerate our direct-to-consumer business, we are strategically positioning our Company to more effectively support our growth strategy and increase shareholder value," Chapek said in a statement announcing the reorganization. "Managing content creation distinct from distribution will allow us to be more effective and nimble in making the content consumers want most, delivered in the way they prefer to consume it."

    Under Horn and Bergman, the studios segment will focus on creating content for theatrical release, Disney+ and Hulu. Walt Disney Studios, Marvel Studios, Pixar Animation Studios, Walt Disney Animation Studios, Lucasfilm, 20th Century Studios and Searchlight Pictures all fall under their purview.

    Rice's general entertainment segment includes 20th Television, ABC Signature and Touchstone Television, ABC News, Disney Channels, Freeform, FX and National Geographic.

    As for Pitaro's sports segment, that will focus on live sports programming, sports news and original and nonscripted sports-related content across ESPN, ESPN+ and ABC.

    Daniel's media and entertainment distribution group will manage all distribution, operations, sales and advertising across the three content groups. Daniel has spent 14 years with the company in a variety of positions. He helped transform Disney's Star Wars property into the two Star Wars: Galaxy's Edge lands in Disney World and Disneyland as well as aided in bringing Toy Story Land, Pixar Pier and Avengers Campus to the parks.

    "Kareem is an exceptionally talented, innovative and forward-looking leader, with a strong track record for developing and implementing successful global content distribution and commercialization strategies," said Chapek.

    This new structure is effective immediately. The company currently expects to transition its financial reporting to reflect these changes beginning in the first quarter of fiscal 2021.

    Additionally, Disney announced that it will hold a virtual investor day on Dec. 10.

     

    Source - https://www.cnbc.com/2020/10/12/disney-reorganizes-to-focus-on-streaming-direct-to-consumer.html

    submitted by /u/YenYangYen
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    Feds may target Google’s Chrome browser for breakup

    Posted: 12 Oct 2020 05:11 AM PDT

    https://www.politico.com/news/2020/10/10/feds-may-target-googles-chrome-browser-for-breakup-428468

    Google is really getting it from all angles:

    • House Antitrust complaints (focusing on search dominance and censorship)
    • DOJ Investigation of advertising market
    • DOJ Investigation of Search
    • Whatever the State AGs are going to focus on

    I'm not sure a divestiture of Chrome, Doubleclick, or any of their web-based advertising ecosystem would have a meaningful impact on the company, but there are so many unknowns right now.

    submitted by /u/NewMediaMogul
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    Bill Gates-backed Electric Vehicle battery supplier, QuantumScape, to "IPO" (QE)

    Posted: 12 Oct 2020 03:05 PM PDT

    Bill Gates-backed Electric Vehicle battery supplier, QuantumScape, will "IPO" in either late November or late December, under the ticker QE.

    Why am I referencing a Fox Business article on the reverse merger so late?

    Actually, I'm not. If anything else, I'm referencing a major news source early.

    Why?

    FOMO caught a number of people here re. NKLA and now HYLN. The jury is still out on RIDE (I can't mention the current ticker).

    However, the anticipated "IPO pop" for the future QE has begun.

    Investor Presentation:

    https://www.quantumscape.com/wp-content/uploads/2020/09/QuantumScape-Investor-Presentation-Sept2020.pdf

    Disclosure: Long on warrants.

    submitted by /u/Torlek1
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    A more nuanced approach to evaluating ETF/MF investments

    Posted: 12 Oct 2020 12:07 PM PDT

    A number of posts have popped up in recent days about investing in ETFs with recent outsized gains (and high fees) like the ARK family of ETFs. No doubt, most people are interested in ARK because of their recent returns, e.g. ARKW has returned 63% in 1 yr.

    In response, a number of people have cited research showing that most active fund managers underperform the market even before fees, and almost all underperform net of fees.

    While true, I believe there are some important nuances missing from this discussion.

    1) The key point to understand is that, on average, active managers do not add alpha based on pure stock picking skills (net of fees and an on a risk adjusted basis). So if you're looking at investing into a general discretionary ETF/MF where the manager is picking stocks from all-caps and any geography he desires, it is very difficult to know ex ante if that manager will outperform sufficiently to justify the high fees these types of funds typically charge (0.9%+). An example of a successful general discretionary fund is Lynch's Magellan fund. Another one that is currently active is the Fidelity Contrafund run by Will Danoff. Danoff has consistently beaten the S&P500 for 20+ years and is the sole manager of the fund, a rarity in the Mutual Fund world.

    2) HOWEVER, managers can outperform the market through exposure to documented and validated risk factors and behavioral factors. This is where the 'smart beta' term comes in and exposure to factors such as value, momentum, quality, low volatility, etc. Historically, many fund managers who claimed to generate alpha were really just buying stocks that were cheap, profitable, and low vol. Buffett's alpha for example, is almost entirely explained by those 3 factors. This takes nothing away from Buffett's skill, as he was investing this way far before most other investors and the academic world caught on. Nowadays, however, once you account for those factors, most managers' alpha disappears.

    3) It is nearly impossible to judge an ETF/MF on the basis of a few years of returns. This is because financials markets go through regimes/cycles that can last 10-20 years and an ETF that performs well in one part of the cycle may perform disastrously in another. Bill Miller's fund is a good example of this. Even stocks on the whole can underperform bonds for long stretches as they did back in the 70s.

    Putting everything together:

    If you are considering investing in a non-index ETF/MF there are several points to consider:

    • Process: Does the fund use a clear, transparent, and rigorous process to select stocks? Or do they just use a bunch of jargon and terms like 'capital appreciation' and 'growth' to justify charging 1%+ fees?

    • Closet indexers: Many active funds are really closet indexers. Look at their current holdings, and weight of the top 10 holdings in the overall portfolio. Are they basically replicating an index but charging 10x the fees? Or are they making high conviction picks for a portfolio with no more than 25-50 holdings?

    • Time frame: How long has the fund been active? How many managers has the fund had? What is the lifetime return net of fees? Frankly, less than 15 years of returns is a short time period. Be very careful extrapolating past returns if the fund hasn't gone through at least one full market cycle. Chasing recent returns with no consideration paid to process and transparency is a great recipe for underperforming in the future.

    • Fees: While I have no argument with John Bogle who showed quite convincingly that a low cost index fund is the best choice for most investors, if you have the motivation, discipline, and curiosity to be more active then you always need to ask yourself the question: what am I getting for the fees I'm paying? For a S&P500 index fund, you're paying 3-4 basis points for the convenience of not having to periodically buy and rebalance 500 stocks - the value is pretty clear, and you're not paying for any selection capabilities. But what about an ARK Fund, or a Target Date fund? What about a 'smart beta' fund like the Avantis small-cap value fund $AVUV? Do you really understand what the managers are doing behind the scenes? If you're going to pay more than 30bps you owe it to yourself to understand this in detail.

    An example to tie these concepts together:

    Since ARK funds are so popular let's consider these concepts in the context of ARKW.

    "Companies within the ARK Next Generation Internet ETF (ARKW) are focused on and expected to benefit from shifting the bases of technology infrastructure to the cloud, enabling mobile, new and local services, such as companies that rely on or benefit from the increased use of shared technology, infrastructure and services, internet-based products and services, new payment methods, big data, the internet of things, and social distribution and media."

    • Process implications: This is not a general discretionary fund, it specifically provides exposure to cloud-focused and cloud-adjacent companies. If you read the prospectus, you'll see that they use both top-down and bottom-up methodologies to identify companies to invest in. Also they say they invest across all-caps, and foreign stocks, and also evaluate ESG characteristics. This process is certainly more transparent than a typical discretionary fund, but less than an index or a smart beta structured fund. IMO, the value of this process is that stock selection is done across industries and tends to load more heavily on high R&D/intangibles and capital-light companies.

    • Closet indexing? The fund holds only 35-50 stocks, so not a closet indexer.

    • Time frame? Only been in existence since 2014 so it hasn't gone through a full market cycle yet. From 2014 to 2018 the fund performance was nothing special. And from 2018 to the end of 2019 the fund was almost flat. The VAST majority of lifetime performance has come from its performance since Mar 2020.

    • Fees? Approx. 0.75% - make no mistake, this is a high fee fund. But at least you're not paying 75bps for a closet indexer. What are you getting for this fee? In theory, you're getting 1) targeted exposure to cloud stocks, and 2) the research and investing skill of Cathy Wood and her team. But you could have exposure to cloud stocks through WCLD (0.45%), CLOU (0.68%), or SKYY (0.60%). So are you comfortable paying an additional 15-30bps for their stock picking skills?

    Again, I'm not trying to provide investment advice, but rather highlight some key considerations in evaluating ETFs/MFs that I rarely see discussed. I believe there can be place for non-index ETFs in one's portfolio, but it needs to be limited and it's critical that each investors understands what he/she is getting for the expense ratio. I didn't discuss factor funds in much detail but they value they provide is again quite different from the value an ARK fund or index fund provides.

    EDIT: /u/MasterCookSwag has a great point in the comments about the importance of a fund's benchmark. Not all funds are appropriately compared to the S&P500, even though your personal investment decision may be between a S&P500 index find vs. an active fund. A fund that is large cap tech equity-focused would more appropriately be compared to QQQ, while a small cap value fund would be compared to the Russell 2k value index. The risk characteristics and selection universes are different.

    submitted by /u/ThenIJizzedInMyPants
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    CVS as an Investment

    Posted: 12 Oct 2020 02:41 PM PDT

    CVS Pharmacy is an American retail corporation. They currently have a PE of 9.49 which is very cheap for a company of this stature. The return on Equity is 12.73% meting that their return on capital is quite solid. The total assets of CVS grew from 94,462,000 on 12/30/2016 and it is now at 222,449,000 on 12/30/2019. They have a total Asset - Liability of 133,447,000 billion dollars. They have a total of 17.46B USD. Another good thing is the total debt to equity ratio of 0.93. I can look at this and see a company that has great mangers of money.

    "CVS Health revenue for the twelve months ending June 30, 2020 was $263.795B, a 16.21% increase year-over-year."(https://www.macrotrends.net/stocks/charts/CVS/cvs-health/revenue). Compared to that of 2017 "CVS Health annual revenue for 2017 was $184.786B, a 4.08% increase from 2016."(https://www.macrotrends.net/stocks/charts/CVS/cvs-health/revenue). The 2010 revenue stands at 2010. $95,778B USD but in 2019 $256,776B USD.

    CVS has a one year target of 79.44 which is about 15 dollars off its current price of 59.72. They also pay a solid dividend of 2.00 with a yield of (3.37%). When a company pays a dividend you know that some extra cash and is more secure then some growth companies. It dates back to 2001 with a yield of 0.52%.

    I believe a possible growth Catalyst for CVS could be a minute Clinic which acts an ER but for not so serious problems. The tele medicine market is growing and many will partner with CVS as it acts with base as a pharmacy and Minute Clinic which will continue to grow deliveries of Drugs with also grow and more and more live from home. The Baby Boomers are growing older and as more people grow old tight need more drugs which CVS can supply as they are the number one pharmacy in the USA by revenue.

    I think that CVS was in a downtrend for the last 5 years but it can rise to around 80 dollars a share and it can also be a good dividend play combined with some growth with this he stock which is very good as it a win win situation.

    According to Guru Focus they have a Intrinsic value of 111.77 and that shows a lot of upside based on a FCF based model. https://www.gurufocus.com/term/iv_dcf_share/NYSE:CVS/Price-to-Projected-FCF/CVS-Health

    I believe CVS is a safe stock and has some upside so I think it could be good value play in your portfolio.

    submitted by /u/watercat55
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    iShares Global Clean Energy just dropped massively as soon as the US markets opened. Anyone have an idea why?

    Posted: 12 Oct 2020 08:26 AM PDT

    As the titlr explains IShares Global Clean Energy INRG just took a dive at 14:30 GMT. As the American markets opened. It was doing very well for the past few days o I'm wondering what made this move happen. I've been hoping to see it move up especially as we are approaching a stimulus pack. What gives? Does anyone have a clue?

    submitted by /u/GaCoRi
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    I have £100k to start investing - any advice?

    Posted: 13 Oct 2020 03:10 AM PDT

    I'll keep it simple:

    I have £100k in cash, with a further £1m i'll be investing over the next 3 years.

    - What is a good strategy right now, with so much uncertainty around covid?

    - I want to slowly spread these investments by staggering them and the risk. Try to make the most of any market crashes which must be coming in the next 12 months (post-covid)

    - Having so much in banks with such low interest and inflation means I want to diversify these savings, my thoughts are as follows:

    20% in Gold

    30% in a portfolio of big players, tech companies, AI, 5G, Cloud Computing etc

    30% ETF's focusing on tech, AI, 5g etc

    10% in other commodities

    submitted by /u/redbr3
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    The Sticky Of Investing Domestic vs International

    Posted: 12 Oct 2020 04:29 PM PDT

    I want to thank FelixYYZ for some of the links/information. One of the things I am always amazed with is how much those that really know are willing to share freely and how impeccable & detailed the resources they share are.

    On the Personal Finance (US) sub you get a lot of discussion around VTI or VOO/IVV and then VXUS.

    VTI or VOO/IVV for low expense ratio, re-balancing and the conservative and proven wisdom of not being able to time or generally pick winners and losers long term and broad exposure to the US market or the large cap companies within the US market.

    VXUS for again the exposure to the international scene incase of stalling or underperformance in the US market.

    In the Investing/Stocks/Stock Market Sub you will see people talk about individual equities both international and domestic at good buy in rates and the need to understand reality valuations vs bull rallies. Most individuals still recommend Index Funds or at least practice purchasing the major holdings at what they consider good valuations.

    WSB and Options is more geared to the risky bull/rally timings and daily/weekly option plays.

    Personal Finance Canada seems to really favor a spread out approach with globally diversified assets allocation etf's. The canadian mentality of common sense wisdom and not putting your eggs all in one basket. They say the VXUS doesn't go far enough in diversification.

    We all know the US market has been on fire for nearly the last decade but especially in the last 5 years. I like I am sure many have no idea if that will continue or not but I do have some questions that I think many would find valuable to know.

    My first question is about ETF's based on the international/emerging market scene.

    I really only know about VXUS. I know that iShares has a really popular list of "international and emerging market" etfs:

    EEM iShares MSCI Emerging Markets ETF IEMG iShares Core MSCI Emerging Markets ETF IEFA iShares Core MSCI EAFE ETF EWG iShares MSCI Germany ETF EWJ iShares MSCI Japan ETF EWH iShares MSCI Hong Kong ETF EWT iShares MSCI Taiwan ETF EZU iShares MSCI EMU ETF EWY iShares MSCI South Korea ETF INDA iShares MSCI India ETF MCHI iShares MSCI China ETF EWU iShares MSCI United Kingdom ETF RSX VanEck Vectors Russia ETF SCHF Schwab International Equity ETF

    Most of the above are listed on the NYSEARCA or the BATS.

    As a Canadian using BMO Investorline do we have access to buy off these? I know we have access to TSX, Nasdaq, DOW, S&P 500 companies but I don't know if a regular account for Canadian Bank Brokerages have access to these?

    My second question would be how do you practice international/emerging market diversification? Do you purchase those etfs above or do you have different ones? How do you put this in practice and is there a "standard" that is well known like the S&P 500 index funds and total market funds like VTI that are well known, well respected, and well documented/used and what is your mentality and approach when using them.

    Lastly is there a way to purchase index funds for the international markets? For example when I look at the DOW/S&P 500/Nasdaq I see they are about equal or in the case of the last two greater than before the heights of COVID. I look at Canada TSX, German DAX, India Sensex and I see they are just slightly below the all time highs 2-8%. I look at the UK and FTSE 100 Index and I see it is around 20% down still. If I wanted to buy an index fund of FTSE 100 Index can I do that like I would purchase a VOO?

    What would be the most respected index fund etfs like VOO/IVV for the various global indexes?

    In general how do you guys all approach this, I think the question of international doesn't get a lot of detailed discussion like the US based index funds we have a ton of info on and the most respected and utilized ones. We also get a ton of talk on individual equities and the ways to practice technical analysis but not so much when it comes to global and emerging markets. I know it's more foreign and maybe because of that we don't have the same level of discussion because people aren't as exposed but I think maybe this is the time to hear from those that truly know and what they can all share :)

    Misc resource links:

    https://ibb.co/pnDqKTg

    https://warrenstreetwealth.com/wp-content/uploads/2018/04/Performance-Leadership.png

    https://www.fidelity.com/viewpoints/investing-ideas/international-investing-myths

    submitted by /u/Godkingcoconut
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    Any thoughts on the parabolic move today?

    Posted: 12 Oct 2020 11:54 AM PDT

    There doesn't seem to be any news catalysts today. The dollar index (DXY) is completely flat and is not confirming the move at all. VIX is also up for such a large positive day. Bond market is closed for Columbus Day. Does that have any effect?

    Honestly, this is looking a lot like just a big tech short squeeze, given that the biggest tech names are moving the biggest % today. I can't think of any other explanation.

    submitted by /u/Blizzgrarg
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    How Could the Effects of the 2008 Financial Crisis Have Been Avoided Personally?

    Posted: 12 Oct 2020 10:07 AM PDT

    Looking back, what could people who were planning to retire and start withdrawing from their IRA, 401k, SS, etc. around the same time the markets started to plummet have done differently in preparing financially for an event like that?

    With the vast majority of people's retirement money being in the form of investments controlled by the market, how can you protect yourself from losing more than 70% of your portfolio's value in a short span of time and taking 5 years to recover that money?

    Obviously, no one can predict when something like a recession will happen, but I am trying to apply these principles to my life as a new investor in preparation of potential future events.

    submitted by /u/jaredhaley
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    Bollinger band scanner.

    Posted: 13 Oct 2020 01:54 AM PDT

    Are there any reliable scanners that can help to filter stocks that meet the below criteria:

    - price goes above / below bollinger band (3 std deviation)

    - across different timeframe (15mins, 30 mins, 1 hour, 4 hour, daily, weekly)

    Appreciate your help.

    submitted by /u/yixingchew
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    Are mutual funds a good idea ?

    Posted: 13 Oct 2020 01:27 AM PDT

    I guess it's too late since I already have one but I'm gonna ask anyways.

    I've had a mutual fund open for awhile with my bank to save money for a duplex that I plan on buying in the future. Living in one half and renting the other to eventually own it and have it as an income property. My question is, I've been putting aside around 300 dollars a month for awhile now but I guess I dint do my research enough. I'm told that mutual funds have high fees. I'm just wondering if I made the right choice since I have little to no experience with investing and if this is the right track to take ?

    Im just here to learn about it a bit more, I'm from Canada, I don't think my choice of saving for the duplex is wrong, just maybe the way I'm tackling it might be wrong ? I'm not sure

    I'm not looking for approval I'm just genuinely trying to learn about it

    thanks everyone!

    submitted by /u/MidnightDC
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    What are your thoughts on IPOB and IPOC?

    Posted: 12 Oct 2020 05:41 PM PDT

    As the title mentions, I've been looking into IPOB and IPOC and I feel like by buying their fund I'm essentially betting on Chamath Palihapitiya who I really look up to and think will become the next Warren Buffett. I really love many of the businesses they're helping to grow and have already put 5% of my portfolio in it and am thinking whether to put more. Any thoughts will be appreciated greatly!

    submitted by /u/Monir5265
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    How should/can I invest 10k?

    Posted: 12 Oct 2020 10:14 PM PDT

    How should/can I invest 10k? I've been saving for awhile and I've been trying to find investments, ventures, stocks, etc. I'm a student pilot finishing my Bachelor of science with a focus in Avaition management and ultimately flying is what I love. But, I've always wanted to do more. I just have no idea where to begin!🤷🏼‍♀️

    submitted by /u/AviatressB52
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    This October rally is just a resumption of big money trapping retail investors like prior to September

    Posted: 12 Oct 2020 02:16 PM PDT

    Each day since the market has started rallying again after the September correction, the headlines for why the market is up big is "InVeStOr OpTiMiSm FoR a StImUlUs" which we all know is not coming until late January or February once Biden likely wins the election. This market has been essentially socialized by the FED (as we all know) and subsequently, Wall Street and big media has been complicit in trying to act like this melt up is anything other than big money once again trapping retail at the top only to dump once again, leaving a bunch of little sad bag holders like last time.

    1. There is no stimulus coming anytime soon (January at the minimum) and the fact that this is the lie being used as to why we have days like today where $1+ Trillion market cap tech behemoths have all gained 6-7% of their entire market cap is just laughable.
    2. The second excuse or notion that the pandemic has accelerated our reliance on Tech and that this is the reason that these stocks have all 2-5xed in a matter months is also extremely laughable. I'm not saying that there hasn't been a permanent shift, there has been, but not to the degree that it justifies every tech stock doubling or tripling its market cap in just a few months.
    3. The third notion that Wall Street has now priced in a Biden victory and sees the large stimulus that is expected with a blue wave as overriding the negativity associated with tax hikes and more regulation is also ridiculous. At best, they cancel each other out.

    Obviously there are long term plays out there; clean energy as a Biden victory becomes more likely, marijuana stocks as there is obviously a huge market for it as it continues to become legalized across the board, certain consumer cyclical companies, travel and leisure and certain REITS that have been absolutely beaten down.

    This post is really to drive home the fact that if you have not already been invested for awhile where most of your holdings are at a reasonable average share price (prior to this ensuing casino we call a stock market), touching any of these tech stocks could mean getting caught with your pants down as a 5-7% drop day is imminent for the NASDAQ as we once again approach 12,000. And NO, the inflation you would suffer for holding cash just for a few months is not nearly as bad as the brutal gaping you'll suffer at the hands of Wall Street after buying a lot of these overvalued companies at current levels. That idea is absolutely nonsense.

    TLDR; Time in the market obviously beats timing the market in any normal environment, but even with this unprecedented liquidity by the FED and interest rates being near 0, that doesn't mean a flash crash is out of the cards. Things are going to get extremely ugly next month and as the FED continues to empty its toolbox and possibly pulls out the big guns (buying equity ETFS), this will cripple things long term coupled with the nearly infinite debt that's going to need to be eventually un-winded. So my advice is don't chase anything right now due to FOMO and only look for plays where the fundamentals still seem to matter because believe it or not, fundamentals will mean something again at some point.

    submitted by /u/DinoDaDon27
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    Apple to the top?

    Posted: 12 Oct 2020 07:54 AM PDT

    How are you guys feeling about AAPL? So far I've seen articles saying Jim Simons, Ryan Cohen, and Warren Buffet have invested insane amounts of money into AAPL stock. I know we're coming near the big reveal and Christmas time but does AAPL seem like a great long term investment better than say Microsoft?

    submitted by /u/DudeBroManSirGuy
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    Opinions on SWAN?

    Posted: 12 Oct 2020 09:17 PM PDT

    The SWAN etf tracks the S-Network BlackSwan Core Index, more about that here: https://snetworkglobalindexes.com/indexes/s-network-blackswan-core-index

    The thing I found interesting was its ability to simultaneously yield returns comparable to SPX and maintain incredibly low volatility.

    For instance, SWAN dipped only 10% when SPY dipped 40% back when COVID hit the US in March.

    I see this being useful for long term growth with accounts were funds need to be somewhat liquid.

    Like to know if anyone has thoughts on this etf.

    submitted by /u/SorenLantz
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    Private Equity Investments

    Posted: 12 Oct 2020 03:06 PM PDT

    I got an unsolicited ping via LinkedIn from a Morgan Stanley financial planner last week. We talked for a while and one of the things he mentioned was Private Equity investments as an alternative to stocks and bonds.

    He claimed I could earn 10% to 20% per year on real estate development projects.

    Anyone have any experience in Private Equity?

    He mentioned the minimum investment is usually $50k so I need to vet this independently.

    Txs.

    submitted by /u/XreemlyHipp
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    Should I try to invest through EquityZen?

    Posted: 12 Oct 2020 05:37 PM PDT

    I'm interested in a couple companies that are offered on EquityZen, but I would be jumping through a couple of hoops if I were to invest in them, so I'm trying to figure out if it would be worth it, considering I have little capital.

    I don't meet the requirements to register on EquityZen. However, I have a close relative that would meet the requirements and is willing to let me invest through his account. I only have around ~$50k that I would be willing to invest. Aside from tax implications of me investing my money through the account of the relative, is it really worth to do all that considering I only have $50k to invest?

    submitted by /u/gearofnett
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    FEAC SPAC?

    Posted: 12 Oct 2020 05:26 PM PDT

    About to buy FEAC before they buy Skillz but my track record is atrocious - any thoughts?

    Management team seems ok, skillz seems like a decent move company, every idiot with a smartphone is dumping their lunch money into SPACs...

    Caution - I've never picked a good stock

    submitted by /u/Topcallaz
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    Is it possible to buy call options that expire 10 years in the future?

    Posted: 12 Oct 2020 05:11 PM PDT

    I have both Robinhood and TD Ameritrade, both are listing options contracts until early 2023 but no further. Is it possible to buy options contracts that are further into the future, say 2025 or 2030?

    I am looking to buy contracts that expire in 2030 if possible.

    submitted by /u/Virtual_Figure
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    Another bum day in the oil/natural gas sector...

    Posted: 12 Oct 2020 05:07 PM PDT

    Got into XOM around April and saw about 15% growth on it until around mid-July until Oil/Natural Gas started steadily going downhill.

    Thought surly it would turn around and being a fan of Oil/natural gas companies in the past. So, I bought into VLO ($56.37) thinking well that pretty low, trying to buy the dip and I sure was wrong. Along with Exxon and the rest of the sector continued its downhill run over the past couple months.

    Dow rallies 250 points and all my other stocks in the tech industry go way up yet still I have XOM and VLO dragging my portfolio down.

    Just looking for some fruit for thought. With upcoming events like the: election, stimulus bill talks, vaccine talks, etc. What do y'all think, is oil worth holding and trying to get back my money or should I cut my losses and get out well I can?

    XOM (-23.37%) VLO (-23.56%)

    submitted by /u/ShitStockTrader
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    Why isn't HUYA skyrocketing instead of DOYU?

    Posted: 12 Oct 2020 09:35 AM PDT

    DOYU is up over 10% after the official merger announcement, however HUYA will be the "surviving" entity after the merger.

    Are investors stacking up on DOYU to have a higher number of shares of the post-merger company because it's cheaper than HUYA?

    Roses are red

    this word limit is a pain

    I wish you all

    the highest of gains

    submitted by /u/imm_uol1819
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    Considering getting a paid Fintel subscription and would appreciate some insight

    Posted: 12 Oct 2020 04:52 PM PDT

    I've been really considering signing up for fintel's paid membership but I couldn't find any reviews or recommendations for alternatives. Has anyone here paid for fintel's data? If so, would you recommend it or any alternative?

    Thanks in advance for any feedback!

    submitted by /u/j_loosh
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