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    Tuesday, October 27, 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: 26 Oct 2020 05:16 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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    Adelson’s Las Vegas Sands Exploring $6 Billion Sale of Vegas Casinos

    Posted: 26 Oct 2020 03:54 PM PDT

    (Bad) sign of things to come for Vegas? Surprised that Adelson would want to sell basically at the lows; things must be looking pretty bleak on the Strip to consider dumping Las Vegas.


    REAL ESTATE

    News Wire

    Company News

    Investing 17m ago

    Adelson's Las Vegas Sands Exploring $6 Billion Sale of Vegas Casinos Gillian Tan and Christopher Palmeri, Bloomberg News

    Pedestrians pass in front of the Venetian Resort in Las Vegas, Nevada, U.S., on Sunday, Oct. 18, 2020. Las Vegas Sands Corp. is scheduled to release earnings figures on October 21. Pedestrians pass in front of the Venetian Resort in Las Vegas, Nevada, U.S., on Sunday, Oct. 18, 2020. Las Vegas Sands Corp. is scheduled to release earnings figures on October 21. , Bloomberg

    (Bloomberg) -- Sheldon Adelson's Las Vegas Sands Corp. is exploring the sale of its flagship casinos in Las Vegas, according to people familiar with the matter, a move that would mark the mogul's departure from the gambling mecca.

    The casino operator is working with an adviser to solicit interest from potential suitors, and may fetch $6 billion or more for its Vegas properties, said the people, who asked to not be identified because the talks are private.

    The portfolio includes the Sands Expo Convention Center, the Venetian Resort Las Vegas and the Palazzo.

    A representative for the company confirmed it was in very early discussions about a sale and that nothing has been finalized.

    A sale would result in Adelson, one of the world's richest men, exiting the U.S., with his remaining casino assets concentrated in Macau and Singapore.

    Adelson is chairman, chief executive officer and a majority shareholder of Las Vegas Sands, which has a market value of $37.5 billion.

    The stock rose as high as 12% in after-hours trading Monday, after Bloomberg reported on the news of the deal. The stock had closed down 3.1% to $49.13.

    https://www.bnnbloomberg.ca/adelson-s-las-vegas-sands-exploring-6-billion-sale-of-vegas-casinos-1.1513344

    submitted by /u/peaceouteast
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    SAP Shares Collapse After Lockdowns Force Cuts to Revenue

    Posted: 26 Oct 2020 05:45 AM PDT

    Good sobering reminder that tech is not "immune" from Covid


    SAP SE shares dropped as much as 21%, the biggest intraday fall since 1999, after the software company cut its revenue forecast for the full year and said it expects a fresh wave of lockdowns to hurt demand through the first half of 2021.

    In a test for Christian Klein, who became sole chief executive officer in April, the pandemic will delay SAP's goals for cloud revenue, overall sales and operating profit by one or two years, especially in hard-hit industries such as business travel, the Walldorf, Germany-based company said in a statement on Sunday. The drop in shares on Monday wiped 28 billion euros ($33.1 billion) off SAP's market value.

    The drop-off in SAP's cloud revenue is a sign that companies are putting off making major decisions about updating their software, as the pandemic continues to limit any global economic recovery.

    SAP said it expects limited growth and margin improvement over the next two years, and moved expectations to meet its 2023 strategy plan out to 2025. Klein said on a call Monday he expects a conservative recovery into the first half of next year.

    The previous outlook "assumed economies would reopen and population lockdowns would ease, leading to a gradually improving demand environment in the third and fourth quarters," SAP said in the statement. "Lockdowns have been recently re-introduced in some regions and demand recovery has been more muted than expected."

    The pessimistic short-term outlook from SAP risked a knock-on effect on the European software industry, warned analysts at Citi. Europe's Stoxx Technology index fell as much as 6.3%, its biggest one-day loss since March.

    SAP now expects adjusted revenue of 27.2 billion euros to 27.8 billion euros ($32.2 billion to $32.9 billion) at constant currencies in 2020, lower than the earlier guidance of 27.8 billion euros to 28.5 billion euros. SAP also said it no longer sees a boost from business-travel related revenue this year in its Concur business.

    It's difficult to find positive news in the results, Nicholas David, an analyst at Oddo BHF said Monday. "The warning on the mid-term ambitions was expected/feared by the market but the new ambitions are lower than the most pessimistic expectations," he said in a note.

    Qualtrics IPO

    SAP said it is in the advanced stages of a listing for its Qualtrics software unit. It announced the decision in July to list the U.S. unit less than two years after buying the company for a record sum, a surprise u-turn signaling a strategic shift under Klein.

    "We are well advanced in the preparations of the Qualtrics IPO", Chief Financial Officer Luka Mucic said on a call Monday. "Qualtrics has had a strong quarter which will set it up for further growth into next year."

    New Outlook

    Adjusted cloud revenue is expected to be 8 billion euros to 8.2 billion euros in 2020, down from a previous estimate of 8.3 billion euros to 8.7 billion euros.Operating profit will be 8.1 billion euros to 8.5 billion euros this year, down from expectations of as much as 8.7 billion euros.SAP updated its mid-term ambition for total revenue to more than 36 billion euros in 2025 compared to its previous estimate of 35 billion euros in 2023.The company sees more than 22 billion euros in cloud revenue and over 11.5 billion euros in operating profit by 2025.

    Third Quarter

    Third quarter non-IFRS operating profit decreased by 12% year over year to 2.07 billion euros. That compared to the 2.15 billion-euro average estimate from analysts in a Bloomberg survey.Revenue in the period declined 4% to 6.54 billion euros compared to analysts' average 6.89 billion euro estimate.

    https://finance.yahoo.com/news/sap-cuts-2020-sales-outlook-203149264.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNhLw&guce_referrer_sig=AQAAAF_TaMgWyjSVtobIX4GleBfpxopa9L9TJPKsfacBFTYWfKsmRwIYgoXWKTsN9zxuDnWxbFmAOO_C0MoqBPECjfaDupuibcHiddhhuFflrSnOonBcL_HNEvw4VBScDkIZLzNmq6o7D-LBpS3t8eU_C32-pyOY2zz9QVNvDCuoJ3hT

    submitted by /u/peaceouteast
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    If there is a major downturn, you will know.

    Posted: 26 Oct 2020 08:08 PM PDT

    If there is a market correction, you will know. Your stop losses will hit, your alerts will hit, your indicators will look upside down, your friends will let you know, your subreddits will let you know.

    Asking "when the market will correct or crash", will only flood you with more misinformation to shift through.

    I believe part of investing is shifting through the noise of the markets.

    I understand there is anxiety in investments, but pull backs are common and expected.

    submitted by /u/transamfsas
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    Renewable energy ETFs down since inception

    Posted: 26 Oct 2020 06:40 PM PDT

    Does anyone here know why ETFs like ICLN and TAN are down since inception? TAN was almost $300 in 2008. What caused such a dramatic fall? Companies going out of business? Lack of faith in the sector? I understand the recession happened, but it was still over $80 in 2011 years later. Is the industry really just now recovering? Was it overhyped that much at inception?

    submitted by /u/slimjimeatingoranges
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    Is anyone expecting another correction in near future due to COVID-19 second wave?

    Posted: 26 Oct 2020 03:34 PM PDT

    I'm not sure why no one is talking about another correction but I think it's very likely in near future due to the COVID-19 second wave that's happening around the world. I feel like many businesses will not be able to survive the 2nd wave after getting hit hard by the 1st wave.

    submitted by /u/spicydude
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    AMD to Acquire Xilinx, Creating the Industry’s High Performance Computing Leader

    Posted: 27 Oct 2020 03:45 AM PDT

    https://ir.amd.com/news-events/press-releases/detail/977/amd-to-acquire-xilinx-creating-the-industrys-high?sf239269550=1

    Additional Transaction Details
    Under the terms of the agreement, Xilinx stockholders will receive a fixed exchange ratio of 1.7234 shares of AMD common stock for each share of Xilinx common stock they hold at the closing of the transaction. Based on the exchange ratio, this represents approximately $143 per share of Xilinx common stock2. Post-closing, current AMD stockholders will own approximately 74 percent of the combined company on a fully diluted basis, while Xilinx stockholders will own approximately 26 percent. The transaction is intended to qualify as a tax-free reorganization for U.S. federal income tax purposes.

    submitted by /u/onkel_axel
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    How do we know what Warren Buffett is doing?

    Posted: 26 Oct 2020 01:10 PM PDT

    I've been reading up about Warren Buffett but one thing puzzles me; I keep seeing posts about how Warren is ditching airlines or buying gold or whatever. How do redditors or journalists for that matter, know what Warren / Berkshire Hathaway is doing is doing at any given time?

    submitted by /u/MTLface
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    Questions to the CEO

    Posted: 27 Oct 2020 03:18 AM PDT

    I am invested in a small, privately owned startup company with a group of friends. This was an opportunity that became available as a result of a connection I made, and only required a small investment ($10k) that could potentially result in a 5-10x return over the years.

    The investor group is making a visit to the company and will have an audience with the CEO and several other key members of the organization.

    I would like to put a list of questions together that might be relevant to me, the investor.

    This company is involved in rapidly charging battery technology. They have gone through their Series A and B rounds and have completed all their fundraising, and are working toward executing the purchase orders they've received, procuring grant monies, continuing to develop technology, marketing themselves to companies like Tesla and cell phone companies, and things of that nature.

    Our investment is in the form of a convertible loan. The company is current with all interest payments. Our main questions are obviously geared toward profitability as well as the timeline for when our interest in the firm will convert to ownership shares. We will also ask questions regarding revenue projections, profitability, and other debt structures than ours.

    I am wondering what other, important questions I might ask the CEO, and thought to reach out to reddit to find some good, key questions.

    submitted by /u/hotelactual777
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    My Long Term ETF Portfolio

    Posted: 26 Oct 2020 11:43 PM PDT

    Hi all,

    The idea with this portfolio is that they are mostly actively managed and focus on goals rather then specific companies or industries. If, say, 3D modeling goes out of style in replacement of something more advanced, Ark Invest will adjust its products accordingly. Seeing how profitable each of these are it is incredibly unlikely they will be dissolved any time soon. With that in mind, these ETFs focus on many groundbreaking things that will inevitably become the cornerstones of our society by the time I retire in 2060. Currently, each of these products has outperformed the SPX thrice over with VCR having taken the lead at a 245% YTD return. CXSE takes last place with 43% return YTD but still outperforms SPX in the same time horizon. A key advantage is that this portfolio taps heavily into foreign markets and has holdings comprised of securities on the Honk Kong exchange and other foreign markets (Most notably Tencent). There is diversity found both geographically and financially. I am keeping each at a weighting between 8 and 12 percent as to not overindulge into one specific security. Given the massive share price of VCR it can be difficult at times as one share equates to 10% of my current portfolio.

    Many of these ETFs are rebalanced quarterly and/or monthly by active managers. Vanguard's VCR fund is the only one that isn't actively managed but the inherent concept of its holdings keeps it on top.

    Many of these ETFs have overlapping securities dominating their Top 10 holdings. Given that they are primarily growth ETFs this is expected. The biggest overlaps include Tencent, Alibaba, MercadoLibre, and Tesla.


    • ARKG - ARK Genomic Revolution ETF is an actively-managed ETF that invests in companies across multiple sectors, including healthcare, information technology, materials, energy and consumer discretionary, that are relevant to genomics revolution.

    • VCR - Vanguard Consumer Discretionary ETF is an ETF that tracks the performance of the Morgan Stanley Capital International US Investable Market Consumer Discretionary Index.

    • KGRN - KraneShares MSCI China Environment Index ETF is an ETF that provides exposure to Chinese companies that focus on contributing to a more environmentally sustainable economy by making efficient use of scarce natural resources or by mitigating the impact of environmental degradation.

    • ONLN - ProShares Online Retail ETF is an ETF that tracks the ProShares Online Retail Index. It invests in companies that principally sell online or through other non-store sales channels, such as through mobile or app purchases, rather than through "brick and mortar" store locations.

    • EMQQ - The Emerging Markets Internet and Ecommerce ETF is an ETF that tracks the performance of the Emerging Markets Internet Index by targeting companies whose primary business is e-commerce or Internet-related activities that generate most of their revenues in emerging market countries.

    • PBD - Invesco Global Clean Energy ETF is an ETF that tracks the WilderHill New Energy Global Innovation Index which holds globally listed equity securities engaged in the business of the advancement of clean, renewable energy and conservation. The Fund uses a multi-factor screening approach & is rebalanced/reconstituted quarterly.

    • IPO - Renaissance IPO ETF is an ETF that provides investors with efficient exposure to a portfolio of newly public companies prior to their inclusion in core U.S. equity portfolios. The ETF tracks the rules-based Renaissance IPO Index designed by leading IPO research firm Renaissance Capital.

    • TAN - Invesco Solar ETF is an ETF that tracks the MAC Global Solar Energy Index which market cap weights securities in the solar energy industry including all solar technologies, the entire value chain (raw materials, manufacturing, installers, solar plant operations, financing), & related solar equipment such as power inverters/encapsulates.

    • ARKQ - ARK Autonomous Technology & Robotics ETF is an ETF comprised of companies relevant to the theme of industrial innovation. Companies are expected to focus on the development of new products and services, technological improvements, and advancements in scientific research related to multiple industries.

    • CXSE - WisdomTree China ex-State-Owned Enterprises Fund is an exchange-traded fund incorporated in the USA. The Fund seeks to provide exposure to Chinese stocks where government ownership does not exceed 20% of outstanding shares.

    • GIGE - SoFi Gig Economy ETF is an exchange-traded fund incorporated in the USA. This ETF is an actively-managed exchange-traded fund that seeks to achieve its investment objective primarily by investing in a portfolio of companies listed around the world that Toroso Investments, LLC, the Fund's investment adviser, considers part of the "gig economy".
    submitted by /u/Sir_Meowstro
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    Why is it considered bad to hold long term, diversified ETFs on margin accounts?

    Posted: 26 Oct 2020 05:22 PM PDT

    It seems that the general idea is not to hold long-term, diversified ETFs in a margin account. IBRK is offering up to 140k for 1.53% and then up to 1.4m for 1.03%. A 100% equity ETF pays this yearly in dividend alone and should make atleast 6% in capital gains (if not more).

    Say I have 500k in assets and under 30 years old, why not take out a 200k margin and dump it in a 100% equities, long term ETF?

    Assuming the ETF dips 10% in the first year, I can keep 20k on hand to avoid a margin call? After all, after the first year or two, I should be above the margin call and this should buffer against any volatility.

    submitted by /u/BigCMoneyz
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    Pfizer/biontech

    Posted: 27 Oct 2020 02:44 AM PDT

    What do youse think of the current situation revolving around covid do you think todays Pfizer Q report will change anything and what do you think about the current volatile market situation for pfizer. I'm not personally gonna invest as I have no money to do so right now but do you think the market will experience a rise even more due to the vaccines ordered by EU and GB or will it remail afloat and overvalurd

    submitted by /u/Stoipex
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    What are some example of negatively correlated publicly traded shares?

    Posted: 27 Oct 2020 02:36 AM PDT

    For example oil and air travel.

    I have been playing around with a spreadsheet looking at returns of two public traded companies and determining the correlation between their returns. I have tried a number of different comparisons but most seem to come out positive. Does anyone have any other examples that are not related to gold, currency, oil and air travel that have some value of negative correlation?

    submitted by /u/roaminginthought
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    best low risk long-term investments?

    Posted: 27 Oct 2020 01:21 AM PDT

    So I'm still in highschool and I want to know what some good low risk investments are I've played around with the stock market but I need to make a change before I get out of highschool and I want some low risk investments to have until I can make bigger moves.

    submitted by /u/Sliinkii
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    Treasury bonds vs Tbonds ETF

    Posted: 26 Oct 2020 12:43 PM PDT

    Is it different (from a risk standpoint) to invest in an ETF composed of treasury bonds (such as ishares US treasury bonds ETF) vs purchasing treasury bonds (not the ETF)? (Beyond classical ETF cons such as liquidity etc).

    As far as I understand treasury bonds are risk free unless government's default but it m wondering if same is true with a tbonds ETF?

    submitted by /u/Jeanooo
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    Best tools to estimate website traffic to make investment decisions

    Posted: 27 Oct 2020 03:48 AM PDT

    Is there anything (even paid for) that allows you to estimate websites traffic more often than just on a monthly basis (as similarweb does)?

    I have looked into semrush but not so sure its data is very reliable to be honest.

    It there anything else I am missing? Is anyone successfully using any of these tools to make investing / trading decisions?

    submitted by /u/unreasonableinv
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    Ant to Raise More Than $34 Billion in Record IPO

    Posted: 26 Oct 2020 07:29 AM PDT

    HONG KONG—Chinese financial-technology giant Ant Group Co. is aiming to raise at least $34.4 billion from the world's biggest-ever initial public offering, fillings showed Monday, in a blockbuster deal that will bypass U.S. stock exchanges.

    Those sums would eclipse the $25 billion raised in 2014 by its former parent Alibaba Group Holding Ltd. and the $29.4 billion of shares sold more recently by Saudi Aramco, in what is to date the largest-ever IPO.

    The mammoth IPO, which spans Shanghai and Hong Kong, adds to an already frenetic year for China's capital markets, which are enjoying a boom in share sales despite heightened tensions with the U.S.

    Ant is seeking to raise about $17.2 billion in each city, based on prices of 68.8 yuan and HK$80 respectively per share, according to regulatory filings. Ant could raise up to a maximum of about $5.2 billion more, if underwriters exercise their option to purchase up to 15% more shares in an arrangement known as a greenshoe.

    In a few years, Ant has helped change how people in China spend, borrow, save and invest. The firm, which has its origins in an escrow service for Alibaba's e-commerce websites, now processes trillions of dollars in payments annually, runs one of the world's largest money-market funds, and facilitates small loans to hundreds of millions of consumers and small businesses.

    The price values the Hangzhou-based group at about $313 billion, after including the new capital raised but before any greenshoe. In comparison, Mastercard Inc. was worth about $330 billion as of Friday's close. A private fundraising in 2018 valued Ant at $150 billion.

    Jack Ma, who controls Ant, said over the weekend the IPO will be "the largest in human history." Speaking at a financial forum in Shanghai on Saturday, he said: "This is the first time that such a big IPO was priced outside of New York City, which we wouldn't have dared to think about five, or even three years ago."

    submitted by /u/techgadgetsguy
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    Lockdown

    Posted: 27 Oct 2020 02:56 AM PDT

    Things starting to look very similar to what they were few months back, at least here in Europe. Since here in Europe we are about to experience another lock down do you think there will another huge drop in the markets like back in March? I read US isn't shutting down anymore so perhaps we continue upwards ? What do you think ?

    submitted by /u/polishjake
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    DNKN in talks to go private, what would this mean?

    Posted: 26 Oct 2020 08:48 AM PDT

    https://www.cnbc.com/2020/10/26/dunkin-brands-is-discussing-potential-sale-to-inspire-brands-.html

    I haven't been in this position before, but what would this mean for my shares? That they would be sold at $106 automatically? I also read the company Inspire was looking to IPO does that mean anything in this context if the deal went thru?

    The stocks up 15% today

    submitted by /u/JordanGame6
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    Update on last post/asking for advice

    Posted: 26 Oct 2020 07:05 PM PDT

    Hey guys, so first off thanks to anyone from my last post who commented. I'm a busy college kid so I didn't have time to thank you all individually but I think the most valuable thing you can give someone is advice, so very much appreciated. Second off, I thought I'd ask a follow up. I've never invested in my life, so whenever I hear people say things like "puts" and "calls" I get confused, and a little worried because if I'm going to invest I should know this. Anything you can tell this emerging investor? It could be an experience, some advice, a definition, some knowledge, just anything at all because I know absolutely nothing but hope to learn on this journey.

    submitted by /u/villertext
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    What is "Short term and Cash Equivalents" in a balance sheet?

    Posted: 27 Oct 2020 02:26 AM PDT

    I'm trying to calculate some values according to the Magic Formula, where

    Excess Cash=MAX(Cash & Short term Equivalents−20%*Net Sales or Revenues,0) 

    Just taking Microsofts Balance sheet as an example: https://www.sec.gov/Archives/edgar/data/0000789019/000156459020034944/msft-10k_20200630.htm

    Is Short term equivalents the same as Cash and cash equivalents, or is it the same as Short-term investments?

    submitted by /u/WhoYouWit
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    What strategy did Warren Buffett use to trade options and futures in the 1970s?

    Posted: 27 Oct 2020 02:18 AM PDT

    In the 1970s, Warren Buffett traded options and commodity futures. From Buffett's biography by Roger Lowenstein:

    In the late seventies, he bought a few stocks for his own account. He was a bit more of a swinger with his personal money. For instance, in the case of Teledyne, Buffett invested in options [...] According to one associates, he also bought copper futures — an outright speculation.

    What was the options and futures trading strategy he used?

    submitted by /u/SteadyWheel
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    Recommendations for ETFs focused on AI and Machine Learning?

    Posted: 26 Oct 2020 09:03 AM PDT

    With all the training I've been doing related to AI and Machine Learning for work the writing is on the wall that this area is set to explode (more than it has already). Does anyone have any recommendations for ETFs focused on AI and Machine Learning? I know of the ARK ETFs but am trying to do my DD on others as well

    submitted by /u/hickdaddy617
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    Accessing alternative investments in 401k

    Posted: 26 Oct 2020 06:14 PM PDT

    Hello all,

    I have three separate 401ks within Fidelity and am thinking of breaking out of equities and looking into alternative investments (private equity with a focus on MFH real estate). I spoke with Fidelity's rep today and they discussed Fidelity's AIP which allows individuals to invest into alternatives. A pre-requirement of this is to not only be accredited but also have >$1M in the account. I am accredited but do not have $1M+ in Fidelity and am looking for alternatives in order to invest into private equity. I think a product is my solo 401k which may enable me to do so but wanted to ask around before going on a treasure hunt. Much appreciate your advice.

    submitted by /u/ndpithad
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    Teck.B - Thoughts?

    Posted: 26 Oct 2020 05:09 PM PDT

    I'm sitting on teck.B and bought at a much higher than current market price. Any thoughts on whether I should get out while I can, or hold on for some upturn. Sadly, its in my TFSA, so if I need to take a loss, it would be best for me to take it this year...

    submitted by /u/curly-redhead
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