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.
- Recovery stocks are the obvious play from here.
- U.S. weekly jobless claims unexpectedly increase
- Robinhood: 2,000 accounts hacked. Community will survive or...
- Ted Aronson Calling it Quits, Value Investing
- Dividend investors - How have you been doing since March?
- ARK ETF acquires PLTR stock
- Logic behind ETF-Stock diversification?
- What does the hivemind think of Limelight Networks (LLNW)
- What companies does the MSCI World index track?
- Tax Advantages of Synthetic ETFs
- Bank of America 2020 3Q earnings
- CloudMD (DOC.V)
- Are option spreads and covered calls safe ways of investing?
- Contributing to 401k to IRS maximum in beginning of the year?
- A little help here!
- Are robo advisors worth it?
- Luckin coffee
- Your take on British Petroleum
- Investing in Smaller Exchanges
- Can anyone help me with my request? I need the equity research reports for 2 public companies
- Where to get earnings announcements dates in bulk?
- Pros and cons of buying out of state
| Daily Advice Thread - All basic help or advice questions must be posted here. Posted: 15 Oct 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]  |
| Recovery stocks are the obvious play from here. Posted: 15 Oct 2020 02:59 PM PDT Hi, fairly seasoned investor here. I've done fairly well this year (up roughly 55% YTD and actively managing my portfolio daily). Honestly, I'm a bit bewildered by all the love for tech that still exists here. To me, it's pretty obvious that from here on out, the next 40-50% gains will come from the recovery stocks, not tech. What do I mean by recovery stocks? Retail, commercial real estate, airlines, casinos, cruise lines, financials. Why? Allow me to borrow a couple minutes of your time. Vaccine vaccine vaccine. There is a widespread belief, which I agree with, that we will not have an approved vaccine available for the public to use until early next year. However, that is a dumb reason to not buy recovery stocks. The question you should be asking is: will we know that one of the many vaccines that are out there is effective and safe by the end of this year? Once we have a vaccine candidate that we know is effective and is safe, then the game is over. It does not matter if that vaccine won't be approved for a few weeks after, or won't be available for widespread use for a few months. The market looks forward. Once it becomes clear that a vaccine is ready and is coming sometime within the next 6 months, the recovery stocks will boom. So, when will we know? Pfizer has said that they should know by the end of October whether a vaccine is effective, and will release some data around then. If their Phase 3 data is positive, then I expect a huge rally in the recovery stocks. I expect their phase 3 data to be positive, given the positive phase 1/2 data, the cloaked positive comments in the press by Pfizer execs, and my belief in mRNA's potential. Ok well even if we get a vaccine approved we don't know if people will even take it, right?. Of course they will. Sure, there will likely be only a small cohort of brave souls initially who take it, but once they take it and find it effective and low on side effects, they will tell their circle of friends/family, some of whom will then take it themselves, and then tell their circle, etc. etc. People want someone else to be one of the first to take it, but like with many things, once they hear it recommended from their friends who took it, they will themselves take it. Also, let's not forget that we won't need 100% vaccination rate for things to get back to mostly normal, and a lot of activities that were previously restricted (like international travel) will likely be available again only to vaccinated folks, which will further boost vaccination rates and create a self-reinforcing cycle. Ok but things will never fully return back to the way things were, right? Probably not 100%, but I think 80%, yes, and much more quickly than you think. There is so much fearful talk of remote work being the way forward, and that no one wants offices anymore, and why would you ever travel for business again. I think this is all blown WAY out of proportion. For God's sakes guys, this is the way we've been doing things for many decades. People's habits won't just change on a dime like that because of a 9-12 month situation that is temporary. People will still want to see each other face to face, people will still go to offices, etc. I mean, I work remotely for my job, and it sucks. Meetings are confusing, I find myself procrastinating and not being nearly as efficient/productive as I was when I was in an office, team cohesion is down. Many employers do not like remote work because productivity is decreased significantly, and it's employers who will set the policy. Now, sure, maybe we have more remote work than we did before. Maybe it's an option for some people, maybe you work 1-2 days remotely per week or something, fine. But I don't think this justifies a 300-600% run up in some of these work from home stocks, and I expect to see those absolutely crater once we have a vaccine. Ok, but the stock prices of these recovery stocks won't return to normal for quite a while, right? Not only will they, but they'll surpass their previous pre-covid levels. Why? The Fed, and short covering. The Fed has inflated the prices of all the 'hot' stocks. PTON, ZM, FSLY, etc. all have had huge run ups because tech was hot, and people had a lot of money to invest. Once the recovery stocks are hot, they will be inflated too. The Fed has committed to keeping rates low for at least another couple years (due to wanting inflation pegged at 2%), so rates will be low even after we have a vaccine. Short interest in some of the recovery names are also quite high, so short covering will drive these stocks even higher than you'd expect. Ok, but, a second wave is coming, right? Probably, but a second wave at this point should mean nothing to recovery stocks. It's all about the vaccine. If a vaccine is shown to be effective in November, but we get hit with a second wave in December, who cares? Yes maybe these companies will have 1-2 months of pain, but again, the market looks way forward, and once you have a vaccine, the light at the end of the tunnel will be blaring, and you'll ignore the bumps on the way. Ok, so why not just buy the recovery stocks when/if they come out with positive data? Yeah, you could I guess, if you're a very risk averse investor or not totally convinced. However, I would not be surprised to see some of the more hard hit recovery stocks up by 15-20% after positive vaccine data (for example, ALK was ~$65 pre-covid, but is now at ~$38. If a vaccine is shown to be effective tomorrow let's say, I don't think it'd be unreasonable to see that stock shoot up to $44 pre-market). Even then I'd still expect more upside though, so I'd be a buyer there. However, I'd personally prefer to cash in on those 15-20% gains as well as the future upside, which is why I'm a buyer here. Ok, well, what are the risks? The risks are mainly around a covid vaccine not being effective or being unsafe. If that happens, then recovery stocks will take a serious beating. You also may see some short term pain if covid cases jump before vaccine data is released, as some folks/algos in the market take that as meaning 'sell recovery, buy tech'. Also, make sure you buy companies with very strong balance sheets, as if there are any unexpected bumps in the road with a vaccine, you don't want to be stuck with a company you're worried about going bankrupt. I would really really appreciate feedback on this. I'm investing a lot of money in these stocks, and am by no means blind to the risks. I would really love hearing from everyone here about the things I missed or am not considering. If you have something I'm missing, and can potentially save me many many thousands of dollars, please please take a few minutes and just share that comment here. Thanks for your time reading this! [link] [comments]  |
| U.S. weekly jobless claims unexpectedly increase Posted: 15 Oct 2020 06:12 AM PDT WASHINGTON (Reuters) - The number of Americans filing new claims for jobless benefits unexpectedly rose last week, which could heighten fears the COVID-19 pandemic was inflicting lasting damage to the labor market. Initial claims for state unemployment benefits totaled a seasonally adjusted 898,000 for the week ended Oct 10, compared to 845,000 in the prior week, the Labor Department said on Thursday. Economists polled by Reuters had forecast 825,000 applications in the latest week. The weak labor market and resulting economic hardship are major hurdles to President Donald Trump's chances of getting a second term in the White House when Americans go to the polls on Nov. 3. Former Vice President Joe Biden, the Democratic Party's candidate, has blamed the Trump administration's handling of the coronavirus crisis for the worst economy in at least 73 years. Seven months into the pandemic in the United States, claims remain well above their 665,000 peak during the 2007-09 Great Recession, though below a record 6.867 million in March. About 3.8 million people had permanently lost their jobs in September, with another 2.4 million unemployed for more than six months. With the White House and Congress struggling to agree on another rescue package for businesses and the unemployed, claims are likely to remain elevated. Tens of thousands of airline workers have been furloughed. State and local government budgets have been crashed by the pandemic leading to layoffs that are expected to escalate without help from the federal government. High unemployment and a resurgence in new coronavirus cases across the United States threaten the economy's recovery from a recession, which started in February. Though economic activity rebounded in the third quarter because of fiscal stimulus, the stubbornly high jobless claims suggest momentum ebbed heading into the fourth quarter. Third-quarter GDP growth estimates are topping a 32% annualized rate. The economy contracted at a 31.4% pace in the second quarter, the deepest decline since the government started keeping records in 1947. Growth estimates for the fourth quarter have been cut to as low as a 2.5% rate from above a 10% pace. [link] [comments]  |
| Robinhood: 2,000 accounts hacked. Community will survive or... Posted: 15 Oct 2020 01:24 PM PDT The app has become notorious for risky investments and frequent trading that's more like gambling than investing. That said, plenty of people are using the app to invest the smart way. They saw opportunity after March's stock market crash. Now they're using the commission-free platform to dodge the fees previous generations of investors accepted. Investing on Robinhood or any other platform doesn't have to be a gamble... or does it? Do you believe in the "Robinhood role" of Robinhood — or is it just another scam for people seeking fast millions? [link] [comments]  |
| Ted Aronson Calling it Quits, Value Investing Posted: 15 Oct 2020 02:20 PM PDT 'It makes it look like we're morons," says AJO's Aronson. 'Like, we've been buying our selling list and selling our buy list' VERY candid response from someone that did a lot of value investing, he's calling it quits. [link] [comments]  |
| Dividend investors - How have you been doing since March? Posted: 15 Oct 2020 02:45 PM PDT Just curious. A buddy of mine just loves dividends so he started a portfolio around then. I don't personally focus on divs, but I do hold some paying stocks and I've really enjoyed getting those payouts. This question is more directed toward folks who use the dividends as income though. How have you faired during this time. Did you have to reallocate in to different equities? Did any of your divs get cut? What was your strategy. Thanks all. [link] [comments]  |
| Posted: 15 Oct 2020 11:34 PM PDT Ark Invest focuses on disruptive innovation and is known for researching companies from a much better lens than traditional analysts. Most of the ARK funds bought Tesla, Square and other innovative companies when traditional financial Analysts fail to believe them. ARK ETF acquired 20K shares of Palantir stocks. [link] [comments]  |
| Logic behind ETF-Stock diversification? Posted: 15 Oct 2020 02:57 PM PDT So I've been watching these investors youtoube videos (Ben Felix foe e.g) and there is one thing he said, which I don't understand. He said we use ETFs to diversify, and reduce risk, and we pick a few stocks to increase returns. Now if picking stocks will increase returns why not go for 100% stock picked portfolio? Higher volatility, and risk, sure... but then why not go for 100% ETF portfolio, if let's say you do 50-50 ETF-single stocks, then 50% of your portfolio is still subject to the same risk and volatility as if you had your entire portfolio from single stocks... This seems like a paradox to me, and mixing ETF with picked stocks doesn't make sense. Either go 100% on one, based on this logic. Am I missing sth here? [link] [comments]  |
| What does the hivemind think of Limelight Networks (LLNW) Posted: 16 Oct 2020 02:20 AM PDT Hi everybody! I'm doing my DD on LLNW and was wondering what the hivemind thinks of this company. The company provides CDN services, specifically focusing on video content delivery. I personally think this will become more and more important in the future. Not only because big companies like Disney are focusing more on streaming services, but also because of a change in how people work and learn (more remote working and learning means more demand for quality training videos and the like). Besides, with large parts of the world sitting at home right now, demand for video streaming is bound to be strong for some time to come. Besides this, it seems that the market valuation of LLNW is lagging behind that of its peers (look at Fastly, for instance). The stock has come up about 100% from its lows earlier this year, but at a market cap of rouhgly 750 million is still seems cheap compared to is pears. My major concern is that the company isn't making a profit (on rouhgly 200M in revenue), and that (former) employees don't seem to have faith in management. I'm also not technically gifted enough to understand how Limelight's tech holds up against it peers. They also seem to have high customer churn, which isn't a great sign (although management says it's adressing that issue). On the pro side, I see major demand for these types of services, especiaily when it comes to video delivery, and it seems that Limelight is undervalued compared to its peers. Would love other people's thoughts on this. [link] [comments]  |
| What companies does the MSCI World index track? Posted: 16 Oct 2020 04:20 AM PDT So, I've been looking everywhere for this information but can't seem to find it. [link] [comments]  |
| Tax Advantages of Synthetic ETFs Posted: 15 Oct 2020 11:52 PM PDT Hi, I have a question about US equity etfs that are domiciled in Europe (Ireland or Luxembourg exchange for example). As I understand, physically constructed ETFs have to pay dividend taxes (lets say S&P500 has a 2% div yield, you would pay dividend tax rate on the 2% gain from dividends and capital gains tax on the appreciation of the index itself). However, I read that dividend of the underlying in a synthetic ETF are taxed as capital gains as well. Is this correct and could someone please elaborate on this topic? Thank you! [link] [comments]  |
| Bank of America 2020 3Q earnings Posted: 15 Oct 2020 05:59 AM PDT Highlights:
Report says non-interest income is a mixed bag from contributing revenue streams. Consumer fees are down, but results of trading and investment banking are up. Business loan and lease balances are up (+3%), as are deposits (+23%). Business/loans leases balances are at $950B, while consumer balances are at $1.7T. CET1 value is at $173.2B (ratio of 11.9% vs. required 9.5%). Other thoughts:
I want to do some more reading before commenting on the state of commercial and investment banking, wealth management, and other revenue streams beyond their self-provided highlights. They use some slightly different terminology (e.g. I think BoA's "global banking" is synonymous with JPM's "commercial banking", but I want to do some more research to make sure). The bank seems okay, but not as well positioned as JPM. They seem to have a healthy balance sheet, maintain diversified revenue streams, and deposits seem to show continued consumer confidence in them. [link] [comments]  |
| Posted: 15 Oct 2020 09:49 PM PDT Any information on this health tech stock's potential and risks? This is a Canadian health tech stock, basically you can see a doctor from the comfort of your home through a video call and they are able to asses you/prescribe medicine. Obviously due to covid there is a lot of hype at the moment and it might also be something for post covid as well. Bought at 2.04 and over the past 3 days it has gone up to 2:54. Looking currently at their financials its not great in terms of earnings but they are looking to expand so lot of output through there. They have plans to expand into the USA as well. Seems to be headed opposite of the market at the moment. [link] [comments]  |
| Are option spreads and covered calls safe ways of investing? Posted: 15 Oct 2020 09:20 PM PDT I've been recently looking to invest in companies that I believe in the short term will make significant gains. With that said, are spreads and covered calls a safe way to build your portfolio? I didn't know whether or not to put this in r/investing or if it belonged in WSB. Also, how much capital should I have in hand to use these strategies if they are relatively low risk? Thanks from a first-time poster [link] [comments]  |
| Contributing to 401k to IRS maximum in beginning of the year? Posted: 15 Oct 2020 09:06 PM PDT I'm currently maxing my 401k to the IRS max evenly throughout the year. I recently thought of maxing the 401k in the early couple months of the new year to allow my money and the company match to grow throughout the year. Does anyone do this and can tell me about the pros and cons? The obvious risk to me is that you're no longer DCA. [link] [comments]  |
| Posted: 15 Oct 2020 08:56 PM PDT Hi all, so we have been talking about put call parity and put call inequality and our professor wants us to prove that P (put premium) is always less than or equal to K (the strike price). Can anyone help me out? I am thinking that because P is basically the price you buy the options at, you can choose to not exercise if the strike price is lower than the put premium. (Or else you would lose money.) So when P is equal to K, then you break even and if the K is larger than P, then you make money. So in this case you cannot make a negative profit (Lose money.) Does my explanation makes sense/ is it on the right track? Thanks!!!! [link] [comments]  |
| Posted: 15 Oct 2020 08:44 PM PDT I've been trying to figure out if I'm wasting time and money sticking with Betterment for so long. I've also got money in Wealthfront and SigFig to just compare performance and toy with the UX (I'm a designer by day). Do robo-advisors even make sense anymore or am I better off just migrating everything to Vanguard and doing things myself? Not sure how much effort it would be, but wouldn't it just entail setting my allocation and specifying which investments? Would I really take such a big hit with rebalancing and tax loss harvesting? [link] [comments]  |
| Posted: 16 Oct 2020 02:06 AM PDT Can someone help me (unbiased) evaluate the financial health of Luckin coffee? I stumbled upon it and from my limited knowledge I can see it's at 1/100th the market cap of Starbucks... Yes I know they falsified numbers about 8 months ago... but assuming they are reporting correctly recently? [link] [comments]  |
| Your take on British Petroleum Posted: 15 Oct 2020 08:01 PM PDT Take on British Petroleum. 52 week low and dividend of 12 percent. I a new bee and have put in my summer money into this stock. But its been lying low and I am in negative. But i would like to hold as there is dividend and once we are out of covid situation, it may work itself back up. So what are your thoughts ? Buy/Hold for 1 year or sell ? [link] [comments]  |
| Investing in Smaller Exchanges Posted: 15 Oct 2020 03:11 PM PDT Pros and Cons of investing in smaller exchanges, my guess is they are less looked at so you might find good opportunities, but they probably have weaker regulatory requirements too. I am investing in a company in the Nogoya stock exchange which is the second largest stock exchange in Japan after the Tokyo bourse. I was wondering if other's have done this and if this carries inherent risks I should be aware of. [link] [comments]  |
| Can anyone help me with my request? I need the equity research reports for 2 public companies Posted: 15 Oct 2020 09:52 PM PDT Howdy! My final course project is going to be a M&A pitchbook where I'll explain a possible merger between Walt Disney Corporation and MGM Resorts International. However I'm having a tough moment with equity research reports as I try to understand how both companies operate. Therefore I'd like to ask whether someone can possibly provide me documents of these companies. PD. I'm studying Mechanical Engineering and my school doesn't have access to Bloomberg nor Thompson Reuters nor other financial platform. Thanks! [link] [comments]  |
| Where to get earnings announcements dates in bulk? Posted: 15 Oct 2020 02:20 PM PDT Is there a website where one can enter a series of stock tickers and then get back a list of the dates on which they announce their earnings? Currently I'm using the Fidelity U.S. Earnings Calendar but it's very time-consuming to click on each day and then scan down the list of tickers for stocks that announce on that day. Thanks. [link] [comments]  |
| Pros and cons of buying out of state Posted: 15 Oct 2020 01:47 PM PDT I wanna buy a duplex in Houston Texas. It's a new build so I could hopefully get tenants in quickly versus buying a lower cost home and renovating. The average rent for one of the units would cover 95% of the mortgage making the rest to cover property managers and incidentals. The money we currently have for the down payment is sitting in a CD waiting for our next move. No one in my circle has ever purchased out of state so I don't even know who to consult for more information or reasons not to pursue it. Poke holes in my logic. Give me questions I should be asking. Is being a landlord worth the trouble? [link] [comments]  |
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