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    Monday, October 19, 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: 18 Oct 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:

    • 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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    I still struggle to get my head around this: AAPL worth more than the value of the top 100 UK companies (FTSE100) combined

    Posted: 18 Oct 2020 03:40 PM PDT

    It's an old article from last month , but it really does highlight the disparity between the US tech sector and general state of affairs in the UK. Even if the UK index was at its high of around 7600, AAPL wouldn't be far off the value of the top 100 firms.

    It's both baffling and defies belief that AAPL is values higher than the BP's, Shells, Banks and Mining firms in the UK market

    submitted by /u/i-dm
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    Elections and investing: What are you doing to prepare?

    Posted: 18 Oct 2020 12:54 PM PDT

    We've seen a flurry of articles speculating how the upcoming US election may move the markets. If Biden wins. If Trump wins. If the result is contested. "Election proof" your portfolio. Just to name a few...

    It's frankly dizzying. So, I wanted to ask you all. Are you adjusting any of your investments or strategy in preparation? Are there any best practices to keep in mind?

    submitted by /u/AirwickS
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    Good Return on Whisky Investment?

    Posted: 18 Oct 2020 02:47 PM PDT

    Hi everyone, I was wondering if anyone has any experience with investing in whisky and what kind of returns I should expect to gain? I currently have a barrel of Glen Garioch (57.5 ABV, distilled 2013, cost £2,870.28, 268 QNT*) and Tullibardine (59.5 ABV, distilled 2015, cost £1,314.04, 266 QNT*). I'm aiming to sell when they reach the age of 30. Anyone know what profit I can expect? It's 10% commission to the broker and 0% commission to the auctioneer.

    submitted by /u/Nathan_269
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    Investing In Clean Energy Index Funds

    Posted: 18 Oct 2020 05:15 PM PDT

    I made a small little post over at the r/stocks subreddit, this will be more in-depth. I hope this post helps people who are interested in Clean Energy Index Funds. I know there are specific ETFs such as TAN and FAN, but for this post, I will only focus on the main Index Funds.

    One note to address before we go in is that these funds are non-diversified: when you invest in these funds, you are SOLELY investing in Clean Energy. Do not confuse this with global diversification, these funds are very focused investments

    ____________________________________________________________________________________________________________

    The ETFs

    iShares Global Clean Energy ETF (ICLN) - This one seems to be the most popular. It has the lowest ER out of the three standing at 0.46% and it's globally diversified. ICLN contains about 30 holdings, the top 10 holdings account for about 55%. This fund is 40% American and 60% Global. The top 3 countries as of now are the US, China, and New Zealand. Basic preliminary knowledge of each country's economic/political situation can be helpful. This fund contains a ton of CORE Renewable Stock (Biofuels, Ethanol, Geothermal, Hydroelectric, Solar, Wind) but it's devoid of Tech Built On Renewables such as EVs — which seem to be the talk of the town nowadays. This fund follows the S&P Global Clean Energy Index and it's Market-Cap Weighted. Overall, this fund focuses on the CORE components of renewable energy.

    First Trust NASDAQ Clean Edge Green ETF (QCLN) - This one is similar to ICLN. This globally diversified fund has the second-lowest ER out of the three standing at 0.60%. If you are interested in American Renewable concentration, this may be a contender for you as QCLN is 80% US weight. The top 3 countries as of now are the US, China, and Canada. This fund follows the NASDAQ Clean Edge Green Energy Index which holds 44 stocks, of which their top 10 accounts for 54% of the whole fund. This fund is very similar to ICLN though containing a few differences. ICLN focuses on Core Renewable Energy whereas QCLN focuses on Core Renewable Energy + Tech Built On Renewables. Tech Built On Renewables would consist of technologies such as EVs and Light-Emitting Diodes, supported by companies like TSLA, NIO, and OLED.

    ALPS Clean Energy ETF (ACES) - This one is a little different. ACES has the highest ER out of the three standing at 0.65%. This fund is NOT globally diversified, with its only focus on Canada (20%) and the US (80%). This fund follows a unique index known as the NACEX Index (which focuses on US/Canadian Clean Energy) and it is Market-Cap Weighted. The top 10 holdings account for about 50%. This ETF is very similar to QLCN (Core Renewable Energy + Tech Built On Renewables) minus the Global Diversification. Ultimately, this fund is a North American focused Renewable Energy Index Fund.

    ____________________________________________________________________________________________________________

    Fact Sheets

    What I provided is very brief. If you're serious about clean energy, I highly recommend you read each Index Funds fact sheet along with the prospectuses. This will educate you on the field more and provide more crucial data for each fund.

    ICLN - https://www.ishares.com/us/literature/fact-sheet/icln-ishares-global-clean-energy-etf-fund-fact-sheet-en-us.pdf

    QCLN - https://www.ftportfolios.com/Common/ContentFileLoader.aspx?ContentGUID=43c6d0cd-e6ca-4b21-b1b5-c4671b5cacb2

    ACES - https://www.alpsfunds.com/api/resources/77117043443a4093f7a3b3a4fce8989f.pdf

    ____________________________________________________________________________________________________________

    The main difference between each of these funds really comes down to the underlying holdings, sector allocations, and global diversification. Analyze your Risk Tolerance and Circle Of Competence in terms of holding/sector/globality for each fund before making a decision.

    Disclaimer: I am NOT a financial expert. You MUST do your own diligence -- this is ONLY for educational purposes.

    Also sorry for leaving Invesco WilderHill Clean Energy ETF (PBW) out. If anyone wants to comment some information on that Index Fund down below, feel free.

    - Naitor295

    submitted by /u/Naitor295
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    Why isn’t there a marketplace where you can trade all financial instruments currently available?

    Posted: 18 Oct 2020 11:57 PM PDT

    Like almost at all, you can trade shares and bonds.

    Some have ETF, Forex, and dividends oriented stocks.

    But they don't have a crypto and housing market, which is a pity.

    Like I am searching for a platform where I can make all my investments at once. Instead of using Binance, Robinhood, and other platforms.

    Do you guys also have this need, or am I a dreamer?

    submitted by /u/kristamurti
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    Is Realty Income (o) stock better than S&P500?

    Posted: 19 Oct 2020 03:03 AM PDT

    Hi, I'm surprised to learn that according to Realty Income they claim to have a 15% return since 1994.

    Can someone break this down? Is this the annualised compound growth return? Or is this the absolute cumulative return?

    Would an investor need to have re-invested the monthly dividends and purchase new stock every month to achieve this return? Or could you have just kept the dividend income separate from the stock price increase to get the quoted 15% return?

    Is there a way to buy realty income and it automatically re-invests the dividends for you?

    submitted by /u/eurogaming
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    Under what bull scenario will VOO outperform SPXL?

    Posted: 18 Oct 2020 02:27 PM PDT

    So, assuming I'm bullish the S&P 500 long term, say 10+ years, (I am, and I'm guessing we all are, given enough long term...). What are the reasons to buy VOO over SPXL?

    Sure, in the bear case, SPXL will lose more (and lose it faster) than VOO. Clearly in the rising case, SPXL will outperform. In a sideways case, VOO will win probably due to dividends and expenses?

    Mostly, I'm trying to understand if I should keep pouring money into VOO, shift it all to the derivative, or split it. Math seems to be pointing to moving it, but my brain seems to think that can't be true.

    submitted by /u/RamsaySnowBolton
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    Space investing?

    Posted: 18 Oct 2020 07:54 AM PDT

    How do I get into investing in space lol? I mean isn't there a "space" sector? I have found many aerospace and aero defense stocks but not quite "cosmic" if you will. Do people invest in space? It seems there is mostly or atleast at a mainstream level of investing no way to invest in space. Like space tech and construction. There space vehicles, actual stations and satellites I mean there has to be some investor(s) behind some of space advancements?

    submitted by /u/Adrianorbefilmmaker
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    Is there a historical trend of targeted market sectors that grow immediately after an election?

    Posted: 18 Oct 2020 02:30 PM PDT

    For example the energy, medical, or construction/infrastructure sectors? I first tried ETF investing back in 2016 and immediately after the election a Defense ETF I was in surged. Are there indicators of sectors that will experience a boon after the 2020 election?

    submitted by /u/crusaderx11
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    How do you find company news for shareholders?

    Posted: 18 Oct 2020 10:10 AM PDT

    Hiya everyone,

    I'm not sure if this question has been answered before.

    But as a shareholder, how can you find out company news?

    Let's say I held shares in Amazon, if I wanted to find out what the company plans to do in the future, any struggles they face right now, their buisness model, that sort of thing, is there a way to find this type of information?

    Is their a process for each company, maybe a known process across all companies?

    Maybe it's not possible at all? I'm just wondering because I'd like to make more educated/informed decisions for my investments.

    Thank you in advance for any advice🙏

    submitted by /u/ChezApex
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    Investment Portfolio Strategy Examples

    Posted: 18 Oct 2020 05:33 PM PDT

    I'm not entirely sure if this happens or not, but when professionals are coming up with portfolios, they might write up a strategy or a plan and justification as to why they are choosing certain stocks. I am looking to write up an investment strategy as a project and want to have some guidance on what to write. Where can I find examples of a written investment portfolio strategy by big hedge funds or just a fake example? Thanks!

    submitted by /u/SnooHamsters7889
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    Why haven't commercial REITs or other real estate commercial real estate investments collapsed , after months of pandemic closures?

    Posted: 18 Oct 2020 07:42 AM PDT

    So seems a little weird to me with so much office space unoccupied and so many popular places like malls, cinemas , gyms, etc. Being virtually empty for 4,6+ months there hasn't been more of a shakeup in the commercial real estate market. What's keeping it afloat?

    submitted by /u/abrandis
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    Is the decline of the post modern megacity/metropolis going to potentially open opportunities for the suburban markets?

    Posted: 18 Oct 2020 04:05 PM PDT

    Seeing as big cities like nyc and LA have shown long term financial and practical unsustainability , it seems that a whole lot of people are starting to consider a change in their conception of living by moving out; as an investor, how would YOU approach and use this possible opportunity?

    PS: it seems to me that people really rush In their thinking, reading and commenting, all I'm trying to say is that if you're somebody below a middle class living in big cities it would in many cases like nyc and LA be incredibly hard to sustain yourself. All those talking about sustainable cities have completely missed my point.

    submitted by /u/fabloforbetter
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    Recommandations - next book to read

    Posted: 18 Oct 2020 07:06 AM PDT

    Hi everyone! I'm looking for a new finance book to read if you guys could advised me some books and why they liked it. Here is my list so far

    The greatest trade ever The little book that build wealth The intelligent investor A random walk down Wall Street The little book of market wizards Liar's Poker Winner takes all Black Swan

    submitted by /u/FrenchyQV
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    USD and alternatives

    Posted: 18 Oct 2020 11:02 AM PDT

    I see Goldman is predicting a Biden win and are saying this will contribute to the USD falling.

    I'm all cash until after the election but, I was thinking about moving at least some cash into other currencies like Euro and CDN, but, I'm not a big FOREX follower so what's the best currency or way to offset agains USD falling?

    Is the USD falling over the remainder of '20 the current conventional wisdom?

    submitted by /u/oneword1234
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    Post-Corona stocks to pick up

    Posted: 18 Oct 2020 02:11 PM PDT

    Recently, I've been looking at stocks and wondering if i can make some money after a vaccine is developed. I've been looking at CGX or airline companies but i'm not sure where to start. Any suggestions for stocks to pick up for cheap before corona comes to an end?

    submitted by /u/BigLurker421
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    Hedging investments

    Posted: 18 Oct 2020 05:31 PM PDT

    How are you hedging your investments for upcoming elections? So far Biden is leading in polls and his plan is to raise the capital gain taxes to 40% for the ones making over 1M. This will be my first experience during elections. Based on the charts, market have certainly dropped during election time. However, this market is unlike others which moves on tweets.

    It's been a roller coaster ride for me ever since I started investing in the beginning of this year. I haven't had a lot of gains but nevertheless it's been very interesting learning about stock market which I had no idea about.

    Please provide inputs.

    Thanks

    submitted by /u/Advantage-Able
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    Square $SQ and debit interchange exemption status?

    Posted: 18 Oct 2020 09:16 AM PDT

    One of the reasons I've been skeptical of $SQ's rise even post-Covid is that investors seem overly excited by Cash App growth, where the majority of revenue is from *exempt* debit interchange fees.

    Debit interchange fees were regulated under the Durbin Amendment after the Global Financial Crisis (GFC), that put a ceiling on the amount of fees issuers can extract from every debit transaction. The amendment excluded "small" issuers with less than $10B in assets, which was mainly targeted toward small regional banks and credit unions. Thus, "small" issuers that include Square are paid more than double the interchange fees that a mid to large bank get for the same transactions when you use the Cash debit card to pay for things.

    Square has been exempt through the growth of Cash App, but if you look at their last 10-Q they are sitting on $7.8B in assets already, and will likely cross $10B in less than a year from now.

    For those with a deeper understanding of payments industry:

    1. Does anyone know if the $10B asset threshold is for the company as a whole or just customer deposits on Cash app?
    2. Has Square mentioned this exemption status and made any projections on which they would lose that status in any report?

    Links:

    1) Debit interchange exemption info from The Fed: https://www.federalreserve.gov/paymentsystems/regii-interchange-fee-standards.htm

    2) Last SQ 10-Q with asset totals at $7.8B: https://s21.q4cdn.com/114365585/files/doc_financials/2020/Q2/Q2FY20-Square-Inc-10-Q.pdf

    submitted by /u/prplput
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    Buy and hold stocks in emerging markets

    Posted: 18 Oct 2020 09:14 AM PDT

    Hi,

    I saw several interesting posts related to stocks people should invest in and keep holding as they will continue to grow in the coming years. Most of them are one or the other way active in tech and very often in Silicon Valley.

    I saw several interesting posts related to stocks people should invest in and keep holding as they will continue to grow in the coming years. Most of them are one or the other way active in tech and very often in Silicon Valley, or at least non-US market, so not the usual Silicon Valley companies.

    submitted by /u/AILOC82
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    Where do you look for news on stocks before they take off like Tesla and nio and Netflix

    Posted: 18 Oct 2020 11:38 AM PDT

    Looking for what you're favorite sources are whether motley fool or stocks. Com or strategies in what you guys read before a certain stock has high potential to take off or moon and become the next Tesla or Netflix or nio for example ? I'm tired of just catching things at the tail end... I'm currently investing in rocket and Palantir but I don't want to invest in everything that just got listed in ipo just because there's some talk about it..

    submitted by /u/cyberarc83
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    Huge opportunity for the start of the space race

    Posted: 18 Oct 2020 10:08 AM PDT

    Yes i know competing with elson's starlink is no easy task. Although once public im sure starlink will be a real winner it is important to realize that its a large market and there are also many limiting factors to spacex/ starlink without getting into to it i would like to introduce and interesting opportunity

    Lorl- loral space and communication .on nyse currently trading at 20$ and some change

    The meat and potatoes:

    Loral currently owns 64% of canadian satellite producer telesat the remainder is owned by canadas public pension. It is the fourth largest in the world and has been around for 50 years. It has been excellently run by dan goldberg maintaining strong cashflows and important contracts. Telesat is currently in the process to create/ have in orbit a leo conetellation for 2022 which is said to cover the globe. So far the tech has been proven strong.

    Telesat will be selling some of its u.s spectrum in december in the public auction and will receive 375$ mil usd which is 1/3 or lorals current market cap. It is also in the process to possibly sell spectum in canada at auction but so far no word on that yet. Its annual revenue has been fairly consistent in the $800-1 bil mark which alone makes loral a value play with a market cap just over 600 mil.

    My thesis:

    telesat will be going a different route offering backflow internet to customers with leo( going through existing isp)now some people have voiced criticism at this when comparing to spaceexs direct to consumer. The reality of our world is that many nations will not allow direct to consumer due to censorship as well as the heavily engrained relationships between current providers and government. Which will make backflow the way to go. Telesat is also working with lockheed martin and the pentagon but not much info on that.

    Telesat just announced a partnership with nelco india which is huge as india has the second largest internet market in the world and nelco has stong government ties. Telesat also just announced further contract with darpa which could prove to be huge in the comimg years. Telesat also has a large existing revenue base from its ongoing operations.

    The risk: Mhr fund is the largest and most influential shareholder of loral. Mhr/ public pension failed to reach a deal to sell telesat for 7bil or 75$/ share in 2015 due to some squabbling. In april of this year loral announced it is in advanced discussions with publc pension to take telesat public but no announcement has been made yet.

    Telesat has already made major partnerships for its leo system so if it fails to secure funding it could be brutal. I for one dont believe these partnerships would have been announced recently if it wasnt a given that funding/ ipo will be announced soon.

    Telesat has the lobbying/ history and tech expertise to be a leader in the space race. Their partnerships in india north america and throughout the world will create a strong customer demand for their constellation. I believe we are on the cusp of some big announcements which will drive share price not to mention the value play already discussed. Hopefully mhr and public pension can work together to launch telesat in the the next huge phase of its companies history.

    submitted by /u/rooster504
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