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.
- Aside from companies like Tesla, Square, Amazon and Microsoft what other companies do you think are currently the most innovative today?
- How do cash-poor CEOs eventually pay back their debt?
- I’ve read and heard all the reasons why INTC should be sold. However, for the sake of contrarianism, can I hear arguments to why people should consider buying INTC at this level? INTC $48 with a PE ratio 9.
- Solar vs Wind. Is it time to jump into wind or will solar continue to dominate?
- From a Quant: Algo/Quant trading and how you can start
- Energy and Oil ETFs - XLE/XOP - The outlook and sentiment for Traditional Energy vs Green Energy - Possible potential for those with High Risk Tolerance
- 100% VTI in your Twenties?
- US Election Year & Stock Market - An excellent video for beginners and experienced investors alike
- mortgage rate in 2008
- Bill Ackman's Pershing Square holdings for the quarter ending 09-30-2020
- AAPL: Should I be worried about the Google antitrust lawsuit's focus on their $8B payment for default search placement on the iPhone?
- Microsoft-Backed Databricks Plans IPO Next Year
- Any real reason to diversify outside VOO?
- want to learn
- VTI vs VUN for Canadian investor
- Fed Cements Dollar Dominance, Fueling Record Overseas Borrowing
- New to trying to invest for the future and figured this would be the best place to start with you fine folks at r/investing!
- Question About Globalization and Covid
- TradingView / Streetsmart Edge
- Yahoo finance and nasdaq.com different EPS
- Motley Fool podcast: "CG: Is it Game On for GameStop?"
- Good idea to roll over 401k around elections?
- I see a market opportunity, but I am unsure how to act on it/ capitalize
| Daily Advice Thread - All basic help or advice questions must be posted here. Posted: 24 Oct 2020 05:10 AM PDT If your question is "I have $10,000, what do I do?" or other "advice for my personal situation" questions. If you are going to ask how to invest you should include relevant information, such as the following:
Please consider consulting our FAQ first - https://www.reddit.com/r/investing/wiki/faq Be aware that these answers are just opinions of Redditors and should be used as a starting point for your research. You should strongly consider seeing a registered financial rep before making any financial decisions! [link] [comments]  |
| Posted: 24 Oct 2020 10:53 PM PDT Topic. I like Catherine Wood's thesis of the market not being able to properly price in innovative companies. For example amazon coming up with AWS and 6Xing in value since then. Or Tesla announcing batteries with significantly higher life span. Or square announcing opening physical banks. What other companies do you think are just as innovative today? Why? [link] [comments]  |
| How do cash-poor CEOs eventually pay back their debt? Posted: 24 Oct 2020 07:14 PM PDT There are stories of people like Larry Ellison and Elon Musk financing their lives by taking out lines of credit against the shares of their company. How are these debts eventually paid back? Do these people eventually sell their stock to pay for this? Additionally, are there examples of times where the value of the shares decreased drastically and the borrower needed to either add more collateral or give up all their collateral? [link] [comments]  |
| Posted: 24 Oct 2020 07:32 AM PDT For the past 2 earnings, it seems that every news source or comment I've come across has been bearish on INTC. I agree that they aren't executing as desired, and there are more than 99 reasons to hate on the stock. But can I hear reasons one should consider looking at the stock symbol? [link] [comments]  |
| Solar vs Wind. Is it time to jump into wind or will solar continue to dominate? Posted: 24 Oct 2020 06:47 PM PDT We've all seen the massive gains from solar energy stocks this year but the same can't be said for wind energy stocks. What is the primary reason for this? Is it smart to shift focus and invest in wind now? What wind energy stocks are you looking at our own? Or what solar stocks do you see continuing to dominate the space? I'm currently looking at Vestas, Renewable energy group, Nextera, Sunova, Daqo, Jinko. [link] [comments]  |
| From a Quant: Algo/Quant trading and how you can start Posted: 24 Oct 2020 01:24 PM PDT TL;DRThe market is increasingly entirely bots because they are much faster than humans, emotionless, and easily programmable by very smart people. If you're interested in taking advantage of this wave - and likely future of finance, there are ways (linked below) for even beginners to get started. Algo trading removes your emotions, is faster than you, and can be a great way to augment an active portion of your portfolio or even make it a completely passive process for you. First off, none of this is investing advice, I just wanted to write a quick guide on how to start algo trading for those who wanted to but think they don't have the knowledge or time. Why does this matter?I've been a quantitative trader in various roles for nearly 7 years now from FX, to equities, and even infrastructure. I've seen how drastically and quickly finance has gone from humans on the floor to server farms and desks with 6 monitors on them - and it's only accelerating. A lot of retail investors know the hype, but assume these require deep knowledge, expensive infrastructure, or even knowing how to code. This is false nowadays, as there's so many new tools that make it increasingly available to retail investors for free and without a single line of code. Not only can you augment your active portion of your portfolio (buying or selling immediately when something that worries or excites you takes place - much faster than you ever could), but these can complement passive methods by turning almost any strategy into a passive, emotionless portfolio. How do I start?Now the main hurdle (and question I've seen around here a lot) is how to start. While there are plenty of APIs, platforms, and other tools that require coding knowledge or deep background, I'd suggest starting by:
Of course: DONT SPEND REAL MONEY YET. All of these (and the resources I list below) can already be done just simulating your algo-trader until you're confident in it, and all provide stops so you don't make a dumb mistake and train it to buy high and sell low :) ResourcesNo-code algo trader: streaks.world (easiest way to get started), quantreex.com (little more in-depth) Code algo trader APIs: alpaca.markets (commission free), interactivebrokers.com (more in-depth) Guides and strategies: https://www.investopedia.com/articles/active-trading/101014/basics-algorithmic-trading-concepts-and-examples.asp Learning and resources: https://www.datacamp.com/community/tutorials/r-trading-tutorial https://www.datacamp.com/community/tutorials/finance-python-trading [link] [comments]  |
| Posted: 24 Oct 2020 04:19 PM PDT Introduction:"The only thing certain about oil is uncertainty." - Dr. Subroto, then Secretary-General of OPEC. After the clean energy post there were some asking about oil/traditional energy. This post will probably be more controversial, but here are still many out there that believe oil/gas will continue to have a future. So this post will focus only on the energy ETF: XLE. Also, XOP and USO will be briefly discussed at then end. Individual holdings will not be discussed, this will be left up to individual research. Let it be said upfront - Unless you have very high risk and volatility tolerance this market sector should be avoided! For most normal investments it is always important to keep a long-term window on your mind, however in this case, with cleaner energy sources poised to slowly replace traditional energy, it would be wise to be mindful about the potential gradual decline of these ETFs/market sector. With this being said however, oil forecasters (just like market forecasters) have been so wrong so many times in the past 30 years. Whenever it is predicted that oil will do one thing, it does the opposite. As the world transitions to cleaner resources many countries will continue to lean heavily on oil/natural gas to bridge over. Interestingly, Germany actually increased their consumption of traditional energy sources as they have gradually weaned off their nuclear power plants in their plans to transition to greener sources (What do you guys think about nuclear power as a clean resource?). This bridge period will keep these sources relevant for some years to come. Additionally there are many other factors than will affect the prices in the future, such as: wars, internal OPEC conflicts, an increased number of drivers in developing nations, an increased need for cheaper energy in developing nations, the use of oil in many products and services still, a rise in air travel (especially after COVID), etc. There are many reasons that oil/coal/natural gas will/won't remain relevant. (If anyone has any additional insight or an interesting note please let us know! I don't want this to be too long here) Alrighty so... XLE: Energy Select Sector SPDR FundLet's break down what XLE aims to do and it's holdings. XLE tracks a market-cap-weighted index of the S&P500, because of this it is only composed of US companies. Its primary aim is to provide high liquid exposure to the US giants of the oil and gas industries. The holdings consist of many companies we are all familiar with, examples: Chevron, Exxon Mobil, Conoco, Phillips 66, Valero, and so on. Currently it has 27 holdings. Top sectors:
Currently numbers for XLE:
Like everything else, XLE dropped to lows in March, rallied to the mid-40s by mid-summer and has been falling since. However, at this point, the average volume is on a decline, this indicates that the number of sellers might be lower, this could lead to price stabilization around the ~$30 mark. Here is where investors with a high risk tolerance could consider buying in. The assumption (refer to the quote up top) here is that oil and gas demand will pick up next year. According to some estimates the world demand for oil next year will increase, however, a reverse side to this are predictions for second infection wave that slows the economic recovery. Again, if you do not like volatility then do not consider this position. A note about the dividend yield: Yes, XLE does have a high dividend yield at 7%, however, the payout amounts have fluctuated greatly. This is a given considering the fact that oil went negative in April. Due to this ETF's heavy concentration in one particular sector and the given volatility, it might be better to look elsewhere for a stable high dividend yield if that is your interest. A Note about the Individual Companies:The majority of this is being left to individual research. This post would be too long to talk about all the players. A noteworthy mention though is that many of these large oil and gas companies are not blind about the eventual decline of oil and gas (a time window for this decline is obv up to speculation), and many are trying to reinvent themselves or reposition themselves to enter into the green markets (or other markets) to maintain relevance. Just some thought juice. A Note about XOP and USO:XOP is often compared to XLE, please note the difference: XOP provides an equal-weight approach to oil/gas exploration & production. Due to this the fund has higher exposure to the number of small- and midcaps increasing it's volatility. It is also very heavily weighted towards Exploration and Crude. This ETF is more affected by crude oil futures and has been hit partiularly hard due to its small and mid caps not being able to weather COVID and negative oil. USO is an ETF that is designed to track the daily price movements of West Texas Intermediate. If you compare the 5 year price of oil to the 5 year price of USO you can see how USO drastically underperforms against its benchmark. Additionally, this ETF deals heavily in futures contracts, which normally isn't an issue unless the price for whatever they bought crashes (Like oil did in April). So in the short term they are hemorrhaging money and then having to reinvest back in at higher prices. The main takeaway from this would be - If you want exposure to Oil/Crude Oil, XLE, XOP, or just energy stocks might be a better option. Takeaway/Final Thoughts:This post I am sure will be controversial. So again, this cannot be stressed enough, unless you have high risk tolerance or a positive outlook for Oil and Gas, avoid these funds/market sector. If anyone has any constructive arguments for or against oil/gas, please comment! It is always great to hear about everyone's perspective, especially if they are well versed in the particular industry. Additionally guys, I am just a dude that likes investing, researching, and sharing ETFs and Stocks, I do hold very small positions in XLE just because I believe there may be some positive swings in the future, but that is just my personal opinion. Point is - PLEASE DO YOUR RESEARCH, especially since I am not an advisor and this is certainly not holistic, there is a lot going on behind the scenes for oil and gas. Subsidies, taxes, regulations and all that weren't even mentioned buy they absolutely have their implications. And, as always thankyou for reading. Have a good day everyone! [link] [comments]  |
| Posted: 24 Oct 2020 04:17 PM PDT Hi All, I am 19 and have been investing in VTI for a couple years now. I recently started a traditional IRA, and am trying to investigate if going 100% VTI would be a wise choice? A lot of people I have talked to and seemed advice have told me that at my age I should be playing as aggressive as possible. Should I look into growth etfs like VUG or MGK? I understand VTI includes some of the previous, but I wasn't sure if I should focus more of my funds into those for the next few years. Thanks for your advice [link] [comments]  |
| US Election Year & Stock Market - An excellent video for beginners and experienced investors alike Posted: 24 Oct 2020 02:54 PM PDT Hello everyone. I have noticed quite a few posts asking what is the best thing to do during this election season. Below I've linked an excellent Youtuber who answers this and backs it all up with relevant and interesting data without including any political bias . I am in no way affiliated with this channel or individual. I am only posting honestly believe the info is very relevant, and very helpful due to the increased posts about this topic and for investors who have not been through an election season just yet. Lesson #1: Stocks Go Up in Election Years, Too Lesson #2: Party in Power Doesn't Matter Lesson #3: Experts are Wrong About Elections Lesson #4: Innovation Matters More Than the President Lesson #5: Your Financial Future Depends More on You than the President https://www.youtube.com/watch?v=39ggjCaHDgk EDIT: This video has also been posted in r/EducatedInvesting for those that would prefer the embeded version! [link] [comments]  |
| Posted: 24 Oct 2020 09:10 PM PDT if banks and finanfial entity paniced, which cause people to stop lending which leads to higher interest rate, how did the mortage rate stayed the same in 2008? it barely dropped. It's kind of confusing bc from what I heard, you can't control the interest rate banks would lend money at, but the mortage rate tracks 10 year treasury note. so which one does mortgage rate really track? bank's willingess to lend money? or 10 year treasury track? [link] [comments]  |
| Bill Ackman's Pershing Square holdings for the quarter ending 09-30-2020 Posted: 24 Oct 2020 04:54 PM PDT https://www.sec.gov/Archives/edgar/data/1336528/000117266120002031/xslForm13F_X01/infotable.xml Name Report Type Form13 F File Number [link] [comments]  |
| Posted: 24 Oct 2020 12:50 PM PDT This post is just for discussion about this specific antitrust concern, and not whether there are broader concerns about any as-yet unfiled antitrust suit against Apple. As an AAPL investor, should I be concerned that the Google antitrust lawsuit seems to focus primarily on the $8B Google pays Apple to be the default search engine on iPhones? $8B is no joke. And if Google is legally barred from paying for placement as an outcome of this case, the value of default search placement on Apple products would go to nearly zero due to the resulting lack of competition for that placement. [link] [comments]  |
| Microsoft-Backed Databricks Plans IPO Next Year Posted: 24 Oct 2020 09:13 AM PDT Databricks is preparing an initial public offering that could come in the first half of 2021. Discussions are at an early stage and the company has held talks with banks but has yet to hire underwriters. San Francisco-based Databricks is aiming to go public at a price significantly higher than the valuation in its last funding round ($6.2B). Databricks has raised about $900 million from backers including Andreessen Horowitz, Coatue Management, New Enterprise Associates, Tiger Global Management, BlackRock Inc. and T. Rowe Price Group Inc. Its backers also include Battery Ventures, Sinewave Ventures, In-Q-Tel and Data Collective. [link] [comments]  |
| Any real reason to diversify outside VOO? Posted: 24 Oct 2020 11:50 PM PDT I will begin with the obligatory "long time lurker, first time poster" intro. So, after playing around with stocks for the last few years, I (32M) decided it's time to take my portfolio more seriously and load up on ETFs. After doing some research, I came to the conclusion that I should be going for growth-oriented ETFs over dividend ETF, as I am non-US resident and therefore liable for ~30% tax on every distribution, even if DRIP-ed. Since this is a long-term play, expense ratio plays a key role, which made me choose Vanguard. Initially, I started buying VOO, as the S&P500 is my go-to index. After a few months of dollar-cost-averaging pretty much on a weekly basis, I started thinking about diversification outside the US economy into VTI (world ETF) or a number of other EFTs (emerging markets/China/Europe etc.) After thinking some more, I decided to compare some major indices around the world to the S&P 500 (DAX, FTSE 100, Nikkei 225 and Hang Seng). The results were much of a surprise, for the last 30 years, the S&P 500 performed better than any one of these 4 indices. DAX and HS showed similar growth since 1990 while FTSE and Nikkei showed much smaller growth. The most interesting conclusion I had drawn from this small Sunday morning research is that while every single index showed increased sensitivity to the S&P 500 movements (dot com bubble/housing bubble and Covid), while the US economy did not necessarily respond with the same strength to local events in other markets. Which brings me back to the title of this post: is there any real reason to diversify outside VOO? It seems like with other markets I will be exposed to the downside of the S&P but not necessarily to it's upside. Is there anything to gain with exposing my portfolio to other markets? Would love to hear your thoughts. [link] [comments]  |
| Posted: 25 Oct 2020 03:29 AM PDT hello i am 17 years old turning 18 in a few months and want to learn investing can someone teach me how to? or maybe show me a place where i can learn because investing looks like something that can help me in the future or something so please if you could teach me or show me a place where i can learn investing i would appreciate it a lot [link] [comments]  |
| VTI vs VUN for Canadian investor Posted: 25 Oct 2020 02:44 AM PDT To start off I'm a Canadian investor investing with the wealth simple app. I was curious as to your guys' opinions between the two etf's. on wealthsimple there's a 1.5% fee when buying American stocks so it almost seems like a no-brainer to go with the Canadian equivalent VUN rather than VTI. If there's anything key im missing to this before I buy into some VUN some insight would be great. Thanks in advance! EDIT: I will be buying these stocks within a TFSA [link] [comments]  |
| Fed Cements Dollar Dominance, Fueling Record Overseas Borrowing Posted: 24 Oct 2020 05:49 AM PDT Overseas borrowers have flocked to the dollar this year at a record pace, with sovereigns from Indonesia to Colombia and companies from Nissan Motor Co. to Manila's water utility racking up sales of $1.29 trillion. It's a key economic takeaway from the Covid-19 crisis: just as happened in the wake of the global financial meltdown of 2008, the dollar is cementing its role as the world's dominant currency even as unilateralist policies from President Donald Trump rile allies and rivals alike. "Whenever there is a crisis, companies and countries rush to make sure they have all the funding they need," said Jim O'Neill, the former Goldman Sachs Group Inc. chief economist who coined the BRIC acronym. "The dollar markets are the only real source available, so the whole situation builds on itself," according to O'Neill, who is chair of the international policy group Chatham House. The ease of borrowing in dollars across the globe has been key in preventing the health and economic crisis spiraling into a financial one by providing companies and governments cheap access to funds. But it may also be sowing seeds for the next crisis: If the greenback sees a sustained appreciation trend, it will drive up debt-servicing costs, potentially creating, for some, repayment difficulties down the road. Everybody Loves Dollars That's a particular risk for emerging markets, where external debt including dollar borrowing is climbing at the fastest pace on record, with full-year issuance on track to eclipse $750 billion, according to Bloomberg Intelligence strategist Damian Sassower. For now, the dollar's been moving in the right direction. The Bloomberg dollar index has plunged about 10.5% from its 2020 high reached on March 23. A lack of global alternatives helps explain some of the dollar's role. The euro's status as a reserve currency remains limited, and China's currency is still subject to capital controls. It's also a function of cost. With the Federal Reserve unleashing massive liquidity, and now expected to keep interest rates near zero for years to come, the greenback is all the more attractive as a funding source. U.S. Treasury yields fell to record lows as Fed cut rates, added stimulus Easier Fed policy helped the Philippines sell sovereign dollar debt at its lowest interest rate ever back in April. The dollar is the "universal currency" and the unit of global trade, according to Rosalia de Leon, treasurer of the Philippines, who says her country will continue to rely on the greenback to help fund its budget deficit. Philippine and Indonesian companies have each sold more dollar bonds in 2020 than in any past full year. "The domestic financial market is not yet deep" in Indonesia, said Deni Ridwan, director of sovereign bonds at the nation's Finance Ministry. By selling debt in dollars, Indonesia's government can avoid crowding out local rupiah issuers, he explained. For Nissan, the Japanese carmaker struggling to bounce back from both corporate scandals and the Covid crisis, the broad base of international investors was appealing when it turned to the dollar debt market for the first time in decades. It priced an $8 billion dollar offering in September, one of the largest corporate issues in Asia on record, as well as a 2 billion euro deal ($2.4 billion). The total issuance of $1.29 trillion from non-U.S. borrowers this year is up 21% from the same period of 2019, according to data compiled by Bloomberg. The record boom in offshore dollar bond sales has been echoed on the U.S. domestic front. Behind it all: the Fed not only cut its policy rate near zero in March, it introduced corporate-debt purchase programs that helped ensure the flow of credit even as coronavirus lockdowns walloped the economy. The Fed also enlarged and expanded swap lines with monetary authorities around the world to address a sudden shortage of dollars abroad. Fed provision of dollars to other central banks soared in 2020 The critical role of the U.S. currency also has a downside, however -- it leaves emerging markets reliant on American policy settings. While it seems distant now, Fed tightening down the road could spur dollar appreciation. "The extensive dependence on the dollar leaves the international financial system hostage to the whims of U.S. policies, especially those of the Federal Reserve," said Eswar Prasad, who once led the International Monetary Fund's China team, and is now at Cornell University. "For emerging market economies, in particular, it can create whiplash effects on capital flows and exchange rates." While other major bond markets are seeing a bumper year too -- Europe's primary bond market has surpassed 1.5 trillion euros of annual sales for the first time -- when issuers do go offshore to borrow, it's still likely to be in dollars. Even as the share of dollar funding relative to the size of the global economy remains below its peak of a decade ago, its slice of international borrowing has climbed to a two-decade high, Bank for International Settlements data show. "It is clearly the dominant international funding currency," the BIS wrote in a June report. [link] [comments]  |
| Posted: 24 Oct 2020 07:11 PM PDT I want to preface this by saying I am not a smart man but trying to become more educated. Also this is probably my first post on reddit since I made an account many moons ago.
Like I said new to all this but would greatly appreciate any guidance also recommendations for study material would be great too. Cheers! Rico [link] [comments]  |
| Question About Globalization and Covid Posted: 24 Oct 2020 04:54 PM PDT Hi With the given news of covid reaching a second wave in Europe, what implications does this have on the US economy? If tighter restrictions are placed there, wouldn't their production rate decrease? And since companies globalize their manufacturing, would it be right to assume that they will be negatively affected if they have anything located there? Am I missing any details or is there a flaw in this reasoning? It seems logical to me given how the Great Depression helped set off recessions in Europe as well. But, the stock market seems to be detached from reality in a stimulated dream, so I'm not sure whether it will have much of any effect at all. [link] [comments]  |
| TradingView / Streetsmart Edge Posted: 24 Oct 2020 05:55 PM PDT Currently using SSE as my trading platform. Any thoughts on whether I should add TradingView to my toolbox? Haven't really dug into SSE's charting capabilities yet, but there are enough TradingView tutorials on YouTube that I'm inclined to not even bother with SSE. [link] [comments]  |
| Yahoo finance and nasdaq.com different EPS Posted: 24 Oct 2020 03:27 PM PDT Ive noticed that yahoo finance and nasdaq.com have different EPS for the same stock. Example when looking at Shopify, both the estimated and reported EPS for the previous quarter as well as the EPS estimate for the upcoming q3 report have different values between the websites. Any explanation? [link] [comments]  |
| Motley Fool podcast: "CG: Is it Game On for GameStop?" Posted: 24 Oct 2020 04:22 PM PDT https://www.fool.com/podcasts/industry-focus/2020-10-20-cg-is-it-game-on-for-gamestop Gamestop (GME) has consistently been referred to as "the next Blockbuster" - with more shares sold short than issued, it's been easy to make a bear case against the company. However, what happens when the bear case doesn't pan out? Join Hidden Gems Canada Advisor Jim Gillies and Host Emily Flippen as they break down the bull case for GameStop and discuss why this legacy retailer may be breathing new life into its forgotten business. [link] [comments]  |
| Good idea to roll over 401k around elections? Posted: 24 Oct 2020 11:50 PM PDT I've wanted to roll over my old 401k to an IRA for a while. To do it, I'd have to sell all investments in the 401k and have a check sent to the custodian of the IRA, which can take a week or few. What's my risk of doing this now around elections? For example, if I sell and the funds I was invested in go up, I'd loose out on that. But this is all long-term retirement money so I don't think I should worry about it... or am I missing something? [link] [comments]  |
| I see a market opportunity, but I am unsure how to act on it/ capitalize Posted: 24 Oct 2020 04:43 PM PDT I am on a road trip in the northeastern region of USA: Maine, Massachusetts, New Hampshire, Rhode Island. To my surprise, some of these states have legalized cannabis. When I went to the shops I saw that there is supply for medicinal marijuana and the recreational shops go out of stock fast. This to me, indicates that there is massive demand for recreational marijuana in the area that distribution for these retail shops can not yet match sufficiently. So there's an opportunity for a cannabis distribution logistics company to truly thrive in the future and help meet market demands. Now I know there's a craze over investing in cannabis stocks. But I would like to know what you all recommend in terms of these dots that I am seeing. Are there emerging cannabis distribution stocks? ETF I should look into? I could easily be wrong in my hunch and get shot down here with data. I am aware that the legal/ political fragility of cannabis does not make its future look too stable but I'd love to hear your thoughts on cannabis distribution/supply chain and how I can intelligently pursue it as an investor. [link] [comments]  |
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