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.
- Can we stop locking investment related threads because of politics? It's hard to discuss investment news here
- Motley Fool is such BS.
- US trade deficit up to $67.1 billion in August, 14-year high
- A long read on analyst ratings, their motivations, and whether you can trust them
- Why did Palantir ($PLTR) rise 10% today? Did options play a role?
- GE Says It Has Received 'Wells Notice' From SEC Relating to Accounting Investigation
- Having a really hard time wrapping my head around options
- Speculation / Research Question
- 2008 and and inflation
- The Importance of Diversification in Investments
- What are your non standard investments?
- The effect of a stimulus package on currency
- Slack: What does the future hold?
- Value Investing is Short Tech Disruption
- FCA Phasing our LIBOR
- Question from a new stock investor
- Using ETFs to invest in "the future"
- do you guys think ENPH will continue to rise or will have a correction?
- 12 Accusations in the Damning House Report on Amazon, Apple, Facebook and Google
- Ally to stop supporting Trailing Stop orders!?!?
- $AMZN, $GOOGL, $FB - RBC data suggests Amazon biggest gainer of ad share
- Selling Puts for Income?
- Can people actually get rich with trades, stocks and all that stuff?
- Generac Boosts Its Energy Technology Capabilities With Acquisition of Enbala Power Networks
| Daily Advice Thread - All basic help or advice questions must be posted here. Posted: 06 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: 06 Oct 2020 12:56 PM PDT Going into an election, there will be volatility, especially given the present circumstances. There is a lot of information available that will simultaneously be political in nature and impact markets. It's getting to the point where it's almost impossible to discuss markets without getting into politics. Stimulus, for example, depends on 2 sides reaching an agreement. Discussion about the politics of negotiation can help estimate probability of something passing, but is also very political in nature. I'm all fine with removing inflammatory and disrespectful posts, or politics totally irrelivant to markets(ie social issues). But I think we should be allowed to politely discuss politics as long as it is relevant to markets and investing. I understand it's difficult to moderate huge threads, but if you aren't up to moderating, appoint someone else. [link] [comments]  |
| Posted: 06 Oct 2020 06:00 AM PDT I am following this stock, and for the last two weeks, Motley has come out with contradictory articles. One second they say it's a buy then they say avoid it. Complete BS. They are just writing words for the sake of getting content out there, not to provide real value. Changing your opinion is good, don't get me wrong, but if you do it every new article you write then you need to do better research. [link] [comments]  |
| US trade deficit up to $67.1 billion in August, 14-year high Posted: 06 Oct 2020 01:36 PM PDT The U.S. trade deficit rose in August to the highest level in 14 years. The Commerce Department reported Tuesday that the gap between the goods and services the United States sells and what it buys abroad climbed 5.9% in August to $67.1 billion, highest since August 2006. Exports rose 2.2% to $171.9 billion on a surge in shipments of soybeans, but imports rose more — up 3.2% to $239 billion — led by purchases of crude oil, cars and auto parts. The U.S. deficit with the rest of the world in the trade of goods such as airplanes and appliances set a record $83.9 billion in August. The United States ran a surplus of $16.8 billion in the trade of services such as banking and education, lowest since January 2012. [link] [comments]  |
| A long read on analyst ratings, their motivations, and whether you can trust them Posted: 06 Oct 2020 01:11 PM PDT Background The equity sell-side cycle: equity research team The analyst would often travel to specific cities or regions to meet with buy-side clients in their corporate offices in order to discuss their stock ratings. Because of stringent financial regulations around how a buy-side client may compensate for sell-side services (due to concerns over breach of fiduciary duty, unjustifiable high maintenance fees, etc) and the overwhelming paperwork involved in documenting gifts, services, or meals provided by the buy-side, the sell-side firm pays for all travel and meals. For a satisfied buy-side client to compensate for the services provided, they would send trade desk flows to our trading desk which is fulfilled via dark pools and phone calls; the public exchange is a last resort if the buy-side client updates the order for imminent execution. The equity sell-side cycle: equity trading team Unlike the equity research team, traders are assigned to accounts which means they own the order flow for that account and receive a part of the commission for trade execution. They tend to have a good idea who's a buyer and seller at certain levels. On some occasions, the trader will have to cooperate with another in-house trader in order to find the other side of the order. In such ideal arrangements, both traders get paid and the firm is happy to be involved in both sides. Traders rarely travel - and the ones who do travel tend to be in more senior position and would accompany an analyst on his trip in order to talk client relationship, business development, etc. The equity sell-side cycle: equity sales team These services are offered for free upfront, and are indirectly compensated for via trade desk flow. How it all comes together, and why the game is rigged
The top priority of the sell-side is to make money. In order to make money, they have to provide a value to the buy-side that makes them money in their investment decisions. In short, this means that management always pressures the research analysts to initiate buy ratings on stocks (even if they believe these stocks will tank), for the sole purpose of establishing a relationship with the CXO of these companies. A positive relationship means meetings to fill, shares for the trade desk to execute as compensation, and money for the sell-side to keep the cycle going. This is also why sector or industry analysts don't really exist: you can't cozy up to CXOs when you're initiate buy/sell recommendations on ETFs. The buy-side is not stupid. They understand this business model. However, it's precisely because of this business model that they love sell-side services. Unless you're large holder of the stock, you won't ever get into corporate access (unless it's some undersubscribed small cap). The corporate execs' goal in these meetings is to project confidence and get the buy-side fund to hold/buy more shares to lift the stock. It is because of this business model that analysts that are often right or often wrong make the most money for the sell-side. In fact, during my time there, our most highly demanded analyst was one who was wrong over 80% of the time, followed by one who was right over 70% of the time. In being wrong almost all the time, this works out great for all parties involved: the research analyst has better corporate penetration because the stock is struggling, which makes it easier to cozy up to CXOs for corporate access events; the CXOs has better access to fund managers to project strength in private meetings; the analyst can be used as a counterweight and the buy-side often does exactly the opposite of each stock buy rating (as evidenced by sell order flows reaching our desk despite the buy ratings). Keep this in mind whenever you following an online tracker for an analyst track record - these guys who always get it wrong often get compensated the most. On the flipside, sell ratings face heavy internal scrutiny from the sell-side management as they are often viewed as a death sentence for any relationship between the sell-side and corporate execs. Management does not care about the analyst's feelings on the stock - if you like or hate it so much, trade it in your own account is how they see it. Nevertheless, a sell rating can be viewed as either a strong conviction, or a chess match to flip the corporate exec. Management's strategy would depend on the analyst's track record. For an analyst that is often right, he has more freedom to initiate a sell rating as a strong conviction idea in order to maintain that record which the buy-side values. Otherwise, management may see it fit to initiate a sell rating because Wall Street is saturated with buy ratings and you cannot stand out in the pack by joining the pack. This kind of maneuver is sometimes successful in getting the attention of the CXOs at the company and initiating a conversation in order to flip it into a buy rating, in exchange for some service or corporate access. TLDR; The game is rigged. Don't believe the majority of sell-side analyst ratings. There is a reason why an overwhelming majority of analyst ratings are buy ratings, and it is not just because markets tend to be bullish. They exist predominately to build relationships and upsell services. [link] [comments]  |
| Why did Palantir ($PLTR) rise 10% today? Did options play a role? Posted: 06 Oct 2020 06:31 PM PDT Palantir Technologies rose 10+% today. We have had a downtrend since IPO, probably because of existing shareholders selling, so this is a welcome sign as it might mean a reversal is coming. The rise today coincided with the opening of options today. You can now buy calls and puts on PLTR. Surely this is not just a coincidence. How did options opening up play a role in Palantir rising by so much? [link] [comments]  |
| GE Says It Has Received 'Wells Notice' From SEC Relating to Accounting Investigation Posted: 06 Oct 2020 11:53 AM PDT Link to WSJ Article. * The SEC has been conducting an investigation of GE's revenue recognition and internal controls over financial reporting tied to long-term service agreements. It had expanded the scope of that investigation in 2018 after disclosures tied to GE Capital and GE's Power businesses.
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| Having a really hard time wrapping my head around options Posted: 06 Oct 2020 07:06 PM PDT I've done tons of reading on the subject but for some reason just can't seem to wrap my head around it. I understand that you buy calls if you think the price will rise and puts if you think the price will fall, but I'm unclear as to how you actually profit. I also understand that one of these has the potential for unlimited loss. Could someone with more knowledge and really dumb it down for me with actual examples? [link] [comments]  |
| Speculation / Research Question Posted: 07 Oct 2020 04:05 AM PDT If anti-trust legislation, such as the type mentioned in the above article, passes to break up tech "monopolies" such as apples app store or the google play store, will this lead to a more competitive market for smaller app development companies? Are there any speculative say "Russell 2000-y" tech stocks who could boom in the next few years if there's a more open market? I'd assume anyone with a shot at creating a competitive app in the next few years would have to exist already and may already be a publicly traded company, and maybe there's already an ETF out there that's tracking these guys Is this too speculative? Should I just stick with conventional investing advice and slap my extra cash in Vanguard Funds? Thanks friendly internet strangers [link] [comments]  |
| Posted: 06 Oct 2020 08:10 PM PDT while I was looking for the reason why inflation didn't happen in 2008, I found some comments that it's because of the demand for dollar was still greater than supply made from q.e. What does this really mean? let's say because of q.e, the dollar got weaker and foriegn people started buying u.s company stocks, how does this really affect the demand of dollar? or did literally kept buying dollar and kept it in their closet? [link] [comments]  |
| The Importance of Diversification in Investments Posted: 07 Oct 2020 04:36 AM PDT Do not put all your eggs in one basket" said Warren Buffett. This statement by him makes complete sense as it is only through the diversification of your investments that you can minimize the risk for loss. It can be done by optimizing your returns through investment in different types of asset classes such as equities, debt, cash, real estate, gold, etc. 1) Diversification is of vital importance while choosing a portfolio. The investment market sees constant fluctuations that may be impossible to anticipate. Owing to this situation, your portfolio should be diversified enough to compensate for the losses that may be incurred due to a specific financial investment. 2) When investing in the equity market, you should focus on the diversification of funds between companies as well as industries. This is because sometimes an industry's downfall can cause you losses. Investing in equity shares from different industries will make sure that you can recover the losses caused due to depletion of stocks of a particular industry. 3) Risk can never be eliminated completely as risk and reward are indivisibles. However, you can reduce and manage risks efficiently to some extent by practicing diversification in your investments. Diversification is a smart method of investment for minimized risks. 4) In order to build a well-diversified portfolio, you need to set your goals first. It is important to clearly define your financial needs and expectations from the investment you plan to make. Secondly, you need to understand the features, associated risks, degree, and frequency of returns of different asset classes and financial instruments. Choose a combination of equity or other investment options with an appropriate blend of risk and return to satisfy your financial needs effectively. Diversification across different asset classes is the best way to make smart investments with reduced risk. How do you diversify your investments? [link] [comments]  |
| What are your non standard investments? Posted: 06 Oct 2020 02:04 PM PDT So, there's a lot of discussion about the usual stocks, index funds, ETFs etc, but I was thinking about some of the alternatives to the norm. What kinds of alternative investments do you have or are you considering? Maybe just as a hobby, a bit of fun or a little punt. Personally, I did consider toys, butbitsbtrixky choosing the right ones. [link] [comments]  |
| The effect of a stimulus package on currency Posted: 06 Oct 2020 11:48 PM PDT I just want to know if I have understood this correctly: Stimulus comes in two forms: Fiscal and Monetary
Which type of stimulus did Trump reject in the beginning and then turn around to accept a couple of hours later? The EUR and JPY are also safe havens along with the USD. In scenario 1 for example, do we see a rise in their value as well? [link] [comments]  |
| Slack: What does the future hold? Posted: 06 Oct 2020 07:33 AM PDT In Q2, Slack added just 22 customers to its count of paid customers with greater than $100,000 in ARR. This is a sharp drop from the 70+ net adds in each of the previous four quarters. According to management comments, the drop in these key metrics was largely driven by Covid-19 related macroeconomic headwinds that affected existing customers. Slack prices on a per-seat basis, and to align its success with that of its customers, the company offers a fair billing policy to self-serve customers, according to which it only charges for members that are actively using its platform. CFO Allen Shim disclosed in the recent Citi Global Technology conference that more than the majority of Slack's revenue is tied to fair billing. The per-seat pricing and the fair billings policy, combined with the Covid-19 related workforce reductions and hiring freezes affected billings, net dollar retention and large customer growth. https://www.unhedged.com/exchange/5f6e4ef814e66e53985c682b/?l=5f7b7d40f4176700106accf3 [link] [comments]  |
| Value Investing is Short Tech Disruption Posted: 06 Oct 2020 07:22 PM PDT https://www.sparklinecapital.com/post/value-investing-is-short-tech-disruption lots of people hating on value investing recently but this post is an interesting take on why the strategy has done so poorly TLDR value approaches consistently underweight tech stocks and fail to fully capture the value of innovative companies [link] [comments]  |
| Posted: 07 Oct 2020 01:09 AM PDT The British FCA has announced that it will be phasing out and no longer continuing to support LIBOR. Being, perhaps, the most notable reference rate in western financial markets markets, I'm curious what impact you guys think this may have for the future of the markets. Any insights and speculation would be great. I'd love to discuss. [link] [comments]  |
| Question from a new stock investor Posted: 06 Oct 2020 09:13 PM PDT I am new to trading stocks. I have a cash account with Schwab. If I buy stock on Monday with unsettled funds do I have to wait until Wednesday or Thursday to sell? It says it will settle on 10/7. If so can I sell it in extended hours in the morning of Wednesday? I got my hands slapped once already and just want to make sure I am doing this right. [link] [comments]  |
| Using ETFs to invest in "the future" Posted: 06 Oct 2020 10:28 AM PDT Been looking into the best ways to invest into battery tech, lithium mining, cyber security, cloud computing, automation, clean energy etc, and have been looking into ETFs for these sectors. What are people's thoughts on using ETFs to invest in "growth" sectors where there isn't an obvious leader in the race yet? Are there any alternative strategies? [link] [comments]  |
| do you guys think ENPH will continue to rise or will have a correction? Posted: 07 Oct 2020 12:10 AM PDT honestly idk why they are taking off now. ENPH has been above 90$ a share for more then a week now, it ended at 98$ today. i have 1 share, so i am 20$ up. should i buy more??? it was at 18$ last December!!! do you guys think it will have a big correction soon or should i buy more now?? will it top 100$ per share? REGI has also had a bit of an explosion recently, its up from mid 30's$ to 56$ today, been up past 50$ for a couple of weeks. do yall think they will continue the climb or drop again? [link] [comments]  |
| 12 Accusations in the Damning House Report on Amazon, Apple, Facebook and Google Posted: 07 Oct 2020 12:02 AM PDT |
| Ally to stop supporting Trailing Stop orders!?!? Posted: 06 Oct 2020 11:22 PM PDT I got an email from Ally saying that from 30 Oct they'll no longer support Trailing stops - huh, that seems like a move that is sure to get a mass exodus. Anyone have insight into why they'd do that? Given the volatility I expect from the election I'm getting on with moving to a new broker which is massive pain but too risky to sit exposed otherwise.
We're removing these advanced orders so we can focus our efforts on providing the best experience possible by prioritizing our most commonly placed orders." [link] [comments]  |
| $AMZN, $GOOGL, $FB - RBC data suggests Amazon biggest gainer of ad share Posted: 06 Oct 2020 08:18 AM PDT RBC: "RBC & Ad Age surveyed over 700 advertising professionals – marketers, agency representatives, marketing consultants & media companies. We believe this constitutes one of the broadest Internet Advertising surveys out there. And we track the Advertising Troika: Current Budget Allocations, Future Spend Intentions & ROI Perceptions. We increasingly view these survey results as indicative of trends for larger Brand-oriented advertisers." "1. Evidence of a Modest Recovery: Looking at how marketers plan to adjust their Online Ad spend over the next 12 months, 61%/6% plan to increase/decrease, up slightly from 60%/7% in April but below the 67%/3% from last year. We believe there is a lag effect here given our last survey was taken while ad budgets were in major flux during late March / early April.
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| Posted: 06 Oct 2020 09:28 AM PDT Was looking to make some income. I figure if I sell some puts on good stocks like BRK.B, MSFT, or AAPL it could bring in some good money and help me grow my portfolio. Worst case scenario is that I'm stuck with 100 shares of one of those stocks at a slightly discounted price right? Anything I'm missing here? [link] [comments]  |
| Can people actually get rich with trades, stocks and all that stuff? Posted: 06 Oct 2020 10:36 PM PDT It has become a trend to see those ads of guys swearing they will make you rich by teaching you how to invest and trade, obvious bullshit, but is there any true to the statement that you can get very rich by investing? I ask this because it's not something you constantly see people getting super rich from. You have your big wall street guys, but can an average person (with a normal job) actually get rich by investing? I literally know nothing about this world of stocks, so this question might be stupid. [link] [comments]  |
| Generac Boosts Its Energy Technology Capabilities With Acquisition of Enbala Power Networks Posted: 06 Oct 2020 09:59 PM PDT The deal solidifies Generac's position as a market leader in Smart Grid 2.0 technologies and opens opportunities for the Company as a grid services provider. Denver-based Enbala is one of the leading providers of distributed energy optimization and control software needed to ensure the operational stability of the world's power grids. Its Enbala Concerto™ platform is being used by utilities and energy retailers around the world to leverage the power of distributed energy resources (DERs) to respond to the real-time energy balancing needs of power systems and energy markets. With thousands of megawatts of residential and industrial standby power generation installed in the United States, Generac's products can be leveraged in virtual power plant (VPP) and distributed energy resource management system (DERMS) markets. The Enbala Concerto™ software platform enables the connection of DERs to register and participate in distributed energy aggregation and control programs. This means otherwise dormant back up power generation assets can come online as part of a distributed energy solution and generate revenue for the asset owner. As utility companies adopt cleaner forms of energy while simultaneously dealing with power disruptions, the opportunities to optimize the grid with DERs are becoming more creative. Residential and C&I rooftop solar, behind-the-meter battery storage systems, electric vehicles and flexible electricity load management are key asset components of a healthy future for Generac and distributed energy resources management. [link] [comments]  |
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