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.
- Powell: Fed open to private sector collaboration in possible digital dollar
- Intel sells SSD bus. and NAND fab.
- Looking for advice: Fundamental based portfolio to produce steady growth during a flat market.
- Overlapping ETF holdings. How to calculate total exposure to each stock?
- TSA Checkpoint Travel Numbers and Airline Stocks
- Long term, are ETFs the future, and are mutual funds over?
- Despite Covid 2nd wave, Global Petroleum Demand in September 2020 was only down ~5% from the 2019 average. Calls for Peak Oil Demand are Premature?
- Tech companies can scale globally with low additional cost. Therefore 10-baggers will continue to be small-medium sized tech companies?
- Am I misinterpreting a stock's Beta value?
- Transcript of ConocoPhilips Acquisition of Concho Resources $CXO $COP
- How are actively managed ETF's considered ETF's?
- Please critique/review my Backdoor ROTH portfolio (31 y/o)
- "Fiscal Cliffication" Continues As The Election Looms
- FBA as Alternative Cash Flow Investment?
- Millennials Driving Equities?
- Biden plan to hike corporate tax to 60%
- Companies and their suppliers directly impacted by covid closures
- Fund that tracks the STOXX Europe 600 Banks Index?
- How do index funds really work?
- S&GA: Google vs Apple - How is Apple able to achieve single-digit SGA margin? And why is Google SGA margin so high?
- Thoughts on Nasdaq:CRTO
- Looking to find more fundamental, anti-institutional value firms
- Which cannabis stock is most positioned for success if weed becomes legalized in the US?
- Good timing to short inflated tech stocks?
| Daily Advice Thread - All basic help or advice questions must be posted here. Posted: 19 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:
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]  |
| Powell: Fed open to private sector collaboration in possible digital dollar Posted: 19 Oct 2020 07:01 AM PDT Source. Article pasted below for convenience. Powell: Fed open to private sector collaboration in possible digital dollar Federal Reserve Chairman Jerome Powell said Monday that the Fed is open to collaborating with the private sector on a possible digital U.S. dollar, but reiterated that the central bank has not committed to actually launching one. "We will have lots of conversations with industry and stakeholder engagement, and that'll help us in our work on digital currencies and cross-border payments," Powell said in an International Monetary Fund panel. Powell said private sector initiatives like Facebook's Libra project have accelerated central banks' interest in setting up their own digital currencies. But Powell cautioned that the Fed faces "difficult policy and operational questions," such as the monetary policy implications of a digital dollar. Powell also listed illicit activity and cyber attacks as risks. "I actually do think this is one of those issues where it's more important for the United States to get it right than it is to be first," Powell said. Powell pointed to the importance of the U.S. dollar in the global economy, noting that the majority of the $2 trillion Federal Reserve notes in circulation are held outside of the country. Powell emphasized that any possible digital dollar would serve as a "complement" to physical cash — not a replacement. Real-time payments The U.S. finds itself lagging other countries on payments infrastructure. The Bank of Mexico last year launched a Cobro Digital (CoDi) system that allows users and merchants to transact in digital pesos using QR codes. The People's Bank of China recently began user testing a digital renminbi, which would allow transactions even without connection to the internet. Although the Fed is not committing to launching its own digital currency, the Fed is charging ahead with its efforts to bring real-time payments among financial intermediaries. Services like Venmo and Cash App offer quick peer-to-peer payments, but check clearing still takes days for funds to arrive at one's checking account because of aged infrastructure connecting the nation's banks. The Fed hopes to stand up a FedNow system to allow 24/7 real-time payments by 2023 or 2024. Kansas City Fed President Esther George, one of the leaders on the initiative, said the project is "on track" with that timeline. Although many central banks are researching digital currencies, only about 10% say they will actually issue one of their own in the short-term, according to the Bank of International Settlements. [link] [comments]  |
| Intel sells SSD bus. and NAND fab. Posted: 19 Oct 2020 08:37 PM PDT https://www.tomshardware.com/news/intel-sells-nand-fab-ssd-business-sk-hynix-9-billion-dollars What does this mean for the company? Are they trying to focus on higher profit margin business by getting rid of low margin business? Or is this just another shitty decision by a non-engineer CEO? Thoughts? [link] [comments]  |
| Looking for advice: Fundamental based portfolio to produce steady growth during a flat market. Posted: 20 Oct 2020 02:06 AM PDT I'm 33 years old, Europe based, with 100k EUR to invest and saving minimum 30k EUR/year. I am very new to investing. I only entered positions recently with some broad or sectoral ETFs and a few big-name stocks. I happen also to be of the belief that after COVID ends and governments stop passing stimulus, we will enter an at best flat market for a prolonged period, where we will see the real implications of COVID drag over time. While my initial thought was to have a boglehead portfolio in general, I think something like this will have no gains after 2022ish and for quite a few years and therefore would like to create a safe portfolio based on giants that have good fundamentals and that are supposed to have stable (even if low) growth over time even at a flat market and perhaps good dividends coming in (that I would re invest). Anyone can offer advice and/or sources to find good information on how to achieve this? [link] [comments]  |
| Overlapping ETF holdings. How to calculate total exposure to each stock? Posted: 19 Oct 2020 02:30 PM PDT I have a few ETFs with overlapping holdings, and some individual stocks that also overlap. Is there an online tool to calculate my total exposure across all ETF + individual stocks? I saw this tool by ETFRC but it requires a paid membership. Is there a tool I can access for free? [link] [comments]  |
| TSA Checkpoint Travel Numbers and Airline Stocks Posted: 19 Oct 2020 09:19 AM PDT Handy graph showing visual representation of the TSA throughput I made: https://ibb.co/4Wmzk9t Source:https://www.tsa.gov/coronavirus/passenger-throughput The EU is going through their second wave of COVID cases. We have seen a spike in world cases recently but traveler throughput seems to be doing okay for now (steadily increasing). The coming weeks will be very telling as to what will happen next because the US lags the EU COVID standings by a couple weeks. Maybe the US can expect a second wave that the EU is experiencing now considering the US followed in this lagging fashion on the first round. [link] [comments]  |
| Long term, are ETFs the future, and are mutual funds over? Posted: 19 Oct 2020 01:27 PM PDT Let's say someone is starting a retirement account containing a few index funds. Let's say they're doing it on their own, not through an employer, so they can invest in anything. They want a simple set-it-and-forget-it portfolio that they can keep contributing to and not withdraw from for 20-40 years. Should they choose mutual funds or ETFs? I know the differences between ETFs and mutual funds. That's not what I'm asking. I'm wondering if investors, in general, are pretty much switching to ETFs for new investments and if this will eventually be a permanent shift. In 40 years, will everyone be investing in ETFs, and will once-gigantic mutual funds like VFIAX and VTSAX have been long-closed to new investors? Or will people still be asking the question, ETFs or mutual funds? Speaking of Vanguard, for all of their most popular index funds, the ETF version now has a lower expense ratio than the admiral shares version. Maybe that's just because ETFs are less costly for them to manage? But I'm pretty sure they used to be the same a few years ago. Are they trying to incentivize people to switch to ETFs? Also, Vanguard has created a significant number of new ETFs in recent years that don't have a mutual fund version at all. Are they signaling that mutual funds are over? Personally, for long-term investing, I like the idea of mutual funds, mainly for psychological reasons. I don't have to pay attention to the share price because I buy in dollar amounts, not shares. I don't have to transact while the market is open. There's only one price per day, so I'm not really tempted to check how the market is doing during trading hours. All of these things help me stay the course. But I also look at the lower fees on ETFs and can't ignore that. I also look at new interesting ETFs popping up like all the ESG index funds that seem like maybe a good long-term investment, but there's usually no passive/index mutual fund equivalent. So in 40 years, will ETFs have won, and will mutual funds be a thing of the past? What do you think? [link] [comments]  |
| Posted: 19 Oct 2020 11:21 AM PDT Can we stop quoting that terrible BP report that tanked their stock price and was universally panned by all energy analysts? According to the EIA, Global Oil Demand for Petroleum Products was 95 MBPD (million barrels per day) in Sept 2020. Down by 6 MBPD from September 2019, or 5.9%. That is despite being in the midst of a global second wave and travel restrictions and wfh still going strong. [link] [comments]  |
| Posted: 19 Oct 2020 01:30 PM PDT This is especially true of pure software or internet companies that still have small or medium sized market caps. For example Unity, draft kings, lemonade, slack, square, etc... Can all gain 1 million+ new customers. With very little additional overhead cost to infrastructure. Meanwhile companies like Costco requires millions of dollars and time to build additional warehouses to acquire new customers. Value stocks started underperforming growth stocks 10-15 years ago. Which coincided with when tech in the US really started taking off. Anyways this is another reason why tech and ETFs like ARKK and QQQJ might continue to outperform. Because they pick small or medium sized (in terms of market cap) tech companies that are innovative. Yes the fast growth potential may be priced in, but when looking for possible 10x investments, it seems that the majority of the time it will continue to be tech companies for some time. [link] [comments]  |
| Am I misinterpreting a stock's Beta value? Posted: 19 Oct 2020 09:58 PM PDT Hello all, I have some doubts and need clarification on how to interpret a stock's beta value.
Any clarifications to the above points or links to reading material are greatly appreciated. [link] [comments]  |
| Transcript of ConocoPhilips Acquisition of Concho Resources $CXO $COP Posted: 19 Oct 2020 10:05 AM PDT Found a preliminary copy of the call this morning of Conoco's purchase of Concho, for anyone interested. Site is free but requires login (was easy): [link] [comments]  |
| How are actively managed ETF's considered ETF's? Posted: 19 Oct 2020 08:44 AM PDT sorry I'm new to investing but I thought that the whole point you bought index funds is because you admit that you can't beat the market and want stable growth instead? If I put money into ARK am I just giving someone else my money in hopes that they beat the market? [link] [comments]  |
| Please critique/review my Backdoor ROTH portfolio (31 y/o) Posted: 20 Oct 2020 12:00 AM PDT I'm 31 years old and my goal is to invest for long term to retire relatively early. Currently maxing out 401K & HSA and planning on starting contributing towards backdoor ROTH IRA. Please review/critique my Backdoor ROTH IRA allocation. Thanks! -1) 401K (maxing out): 2055 Vanguard Target Date Fund -2) HSA (max contribution) -3) Backdoor Roth IRA at Fidelity: - 50% VTI or FZROX - 30% VXUS or FZILX - 10% VNQ or FSRNX (REIT) - 10% VGT or QQQ or ARKK Brokerage Account: - Some equities, VOO, VGT, Arkk, QQQ etc. Please let me know if I am on the right track. Thanks in advance. [link] [comments]  |
| "Fiscal Cliffication" Continues As The Election Looms Posted: 19 Oct 2020 03:14 PM PDT I said this before and I will say it again: If you're an investment professional / serious about investing, subscribe to Nathan Tankus blog. https://nathantankus.substack.com/p/fiscal-cliffication-continues-as From the post (You should just read it, its not that long)
I am interested to see the September data on savings rate.
[link] [comments]  |
| FBA as Alternative Cash Flow Investment? Posted: 19 Oct 2020 11:24 PM PDT Has anyone ever invested in something like this and had success? (I promise this isn't an endorsement I have no idea if these people are legitimate or not) I have recently seen a few different people offering services where they will manage a fulfillment by amazon store for you. They do this from scratch to profit and continue to manage it. This produces monthly cash flow as the store brings in revenue. Some ask for an initial investment and others also ask for some revenue sharing to continue managing the store. Has anyone had any success with an investment like this? If so please tell me about it and with what service you went with! Thanks [link] [comments]  |
| Posted: 19 Oct 2020 10:19 AM PDT Help me reconcile two conflicting things. I'm a big fan of Tom Lee (Fundstrat), and he's often written about millennials influence on equities:
Another recent report came out regarding how much wealth millennials have:
If millennials don't have much wealth, how can this be driving equities higher? Or is the issue scale here--the demographics point to an increase in equities due to consumption trends, but the effect is small. Any ideas? [link] [comments]  |
| Biden plan to hike corporate tax to 60% Posted: 20 Oct 2020 04:12 AM PDT https://www.wsj.com/articles/bidens-public-option-would-mean-massive-tax-hikes-11603148387 Is it a good call to short US stock market indexes ? Surely if this passes and he wins companies are going to leave in droves if they have to give away half their earnings. [link] [comments]  |
| Companies and their suppliers directly impacted by covid closures Posted: 19 Oct 2020 09:49 PM PDT I'm interested in investing in companies that have been impacted by covid (ie theaters, theme parks, arcades, etc) whose stock prices are depressed but may rebound or be acquired (due to depressed stock values) in the next year. CNK, AMC, PLAY, DBOXF are a few that examples of low stock values (except PLAY) but potential huge multiple upside on the rebound (and of course downside risk due to business shutdowns). Thoughts on these and others you may be tracking? [link] [comments]  |
| Fund that tracks the STOXX Europe 600 Banks Index? Posted: 19 Oct 2020 12:41 PM PDT Hi, I've been looking for an ETF that tracks the STOXX Europe 600 Banks Index and can be purchased on either Canadian or US stock exchanges. The closest ETF I can find is EUFN from BlackRock which instead follows the MSCI Europe Financials Index. This ETF is comprised of only 40% banks while the remaining 60% is in various other financials, and it has a large exposure to the UK. However, what I've been searching for is something similar to EXX1 (also run by BlackRock) which is unfortunately listed on the Frankfurt stock exchange. Theoretically, I could contact my broker and purchase shares of that ETF but I would be hit with a 1% commission fee per trade for trading internationally which isn't ideal as I'm planning to cost-average over the next ~6 months. Does anyone know any ETF's (or other funds) that track the Europe 600 Banks Index which can be purchased on either Canadian or US stock exchanges? [link] [comments]  |
| How do index funds really work? Posted: 19 Oct 2020 08:13 PM PDT Yes I heard the tired old saying that "index fund allow you own a tiny piece of the whole stock market or whatever index you buy". I mean details, how is one created? What happens when too many people want to cash out at the same time? Etc. A good book recommendation on the intricacies and inner workings on index funds would be great and much appreciated! Or a good YouTube video that goes into details. Btw I listened to John Bogle's book of Common Sense Investing and even though convincing, I found it very one sided (obviously haha), without any "peek behind the curtain" of how they actually work. I am genuinely curious and want to find out out how they work, how they're made, how different scenarios can affect them, etc. This is my current knowledge on the matter. As far as I understand, an index fund is a passive type of a mutual find, where a group of people pool their money together. A fund manager buys stocks that are in a particular index (e.g. S&P 500) in proportional terms (which is the only prerequisite of the fund owing a stock). The he gives units to the investors that represent their total investment in the fund. The units can appreciate or depreciate in value based on what the market and the stocks in the fund does. The investors can then trade these units with other people who want into the fund for cash thus potentially making a profit. If too many investors want to pull their money out of the fund, and nobody wants to buy the units, the fund manager is forced to liquidate some of the stock holdings in order to pay investors and destroy the extra units to not dilute their value. Am I somewhat correct or missing something important? Please let me know. I know it's extremely difficult to virtually impossible to predict what the stock market will do, but theoretically would it make sense to buy into an index fund when the markets are down and stocks are cheap and there is way more upside potential, essentially what I'm asking I guess is are units of the fund directly tied to the underlying stocks' values which makes more sense to buy index funds when the market is closer to it's fair value? Or are the units have their own value determined some other way (since it's really only the units that do the trading usually, not the actual underlying stocks, which means the determination of value is the consensus between investors on what the unit of the fund is worth not the underlying stocks) and it doesn't really matter when you buy. I'm fairly new to investing and just want to learn, so please take it easy on me. [link] [comments]  |
| Posted: 19 Oct 2020 10:49 AM PDT AAPL (2019-09): 260b revenue, 18.2b SGA. 7% SGA margin. GOOG (2019-12): 162b, 28.0b SGA. 17.2% SGA margin. How?? With Apple having retail stores, I would think their SGA would be enormous because of rent, maintenance, Apple store employees, etc. Are they classifying SGA differently? I didn't find any direction in the 10-k. And why is Google's so high? They don't have any retail stores, and all the costs regarding data centres are part of Cost of Revenue, right? [link] [comments]  |
| Posted: 19 Oct 2020 06:13 PM PDT Hi everyone, first post here. I'm looking at investing in Criteo (CRTO). Their stock went down recently when google announced their ad block for chrome . The company is rebranding from a digital marketing retargeting company. Is it worth investing a bit or is this a value trap? [link] [comments]  |
| Looking to find more fundamental, anti-institutional value firms Posted: 19 Oct 2020 01:50 PM PDT Hi, I'm trying to put together a list of all of the current great long-game value firms in which in the managers invest their own money. So far I have Berkshire Baupost David Abrams Capital (David used to work at Baupost) I'd love to hear your suggestions! Best, Dylan Moss [link] [comments]  |
| Which cannabis stock is most positioned for success if weed becomes legalized in the US? Posted: 19 Oct 2020 11:28 AM PDT Weed has been seeing an uptick lately due to the election coming down to the wire, with investors trying to get a head start on a potential Biden victory, and what itd presumably mean for legal weed in the US. Aurora, Canopy, Tilray, Hexo...any others? Any favorites that may be positioned well to capitalize quickly on legalization in the US? [link] [comments]  |
| Good timing to short inflated tech stocks? Posted: 19 Oct 2020 02:06 PM PDT Since the unravel of covid, almost all tech skyrocketed, to put it mildly. Given the context, it is understandable that most of these companies, especially the ones offering digital/cloud solutions are doing well during these times. Although, the current valuations for most of them seem very speculative. The price gets pumped even more with every positive earnings report and with any negative news around covid. I think, we can all imagine in max 1-2 years things to return to something resembling the old normal. In that scenario, the inflated stock valuations don't make sense and they will likely fall hard. One stock in particular, that is overhyped and I think has the most to drop is zoom. Two main reasons:
My expectation is that most of their new clients are in a yearly subscription that started in March/April. If things start to improve (i.e. vaccine) I would be quite confident that most new clients will switch to monthly subscription and slowly start to reduce usage as the majority of employees return to the office, universities restart face to face, etc. My expectation is that in the second half of next year (the latest) we should see cracks in the growth case for zoom - where revenue plateaus or starts to decline and in addition to this there should be a rotation from growth/momentum stocks to value stocks. All these combined, for me build up a good case for buying long date puts on zoom. What do you think? Looking for challenging points of view. Thanks! [link] [comments]  |
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