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.
- Some tips on buying when the market falls
- Bitcoin Is Back Trading Near Three-Year Highs
- PayPal plans to extend its cryptocurrency initiatives to include Venmo, more merchants, and central banks.
- Ray Dalio: Yuan Will be a Reserve Currency Faster Than Expected
- If the market, on average, already prices in all available public information, why are indices such as the S&P500 usually expected to grow?
- What desktop software do you use for chart follow up?
- CD PROJEKT RED 2 stocks - different behavior?
- Cloudflare ($NET) releasing earnings on 11/5, thoughts?
- An all ETF portfolio... 3 fund portfolio? What’s your favorite and why?
- Buying Ant Group via IB
- Any one know why is Europe stock market did not drop much with all Covid shut down? Is it prices in for US stock market with recent drops?
- How can international investors benefit from China's positive interest rate?
- Virgin Galactic still plans to go to space this fall !
- Are there any companies or ETFs whose stock should have been performing very well, but has been flat for a while now?
- What do you expect to see from NIO?
- Alaska Air Group (NYSE: ALK) - A quick look at ALK's potential to capitalize on their position
- German banks continuous downfall
- Altria (MO) - 3Q20 Earnings Analysis
- Financial planning
- I'm looking for a good semiconductors' ETF
- When is the best time of the day or day of the week to buy stocks?
- Does treasury pay their interest+ bond to the fed?
- Looking for geographically focused REITs
| Daily Advice Thread - All basic help or advice questions must be posted here. Posted: 03 Nov 2020 04:10 AM PST 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]  |
| Some tips on buying when the market falls Posted: 02 Nov 2020 02:40 PM PST So I've seen some posts here about people asking about when to buy stocks during this market 1-Nobody knows beforehand where the exact bottom is beforehand. Everybody has ideas, but most of them are wrong. If you think the market is gonna bottom in a week and you're waiting for it to bottom, you'll probably miss the boat. 2-Different stocks and industries bottom on different days. For example, cruises bottomed on a different day than tech stocks over the past week. Cruises bottomed on the 28th or 29th. Whereas tech stocks bottomed on the 30th and today. (this could change as the week progresses, but I'm guessing that these stocks have already bottomed for this downturn. I could be wrong though.) 3-The best time to buy is going to be around the time when you're scared and kind of hesitant because you think prices might drop more. This is when prices tend to be most depressed. Not only are you feeling this way, but so is everybody else. 4- Since you probably don't know how long the downturn will last and how severe it will be, I recommend a strategy of buying on different days instead of dropping all your money all at once on the first day. 5- Try to buy after the downtrend reverses. Don't buy before the trend reversal. It takes some practice to be able to identify when this happens. But generally, get a good chart of your stock using thinkorswim or some other problem. Watch the price action and set up a simple moving average. The MACD indicator can also help. As the downtrend continues, the price will rally a little. Most of these rallies will be false rallies and the price will drop further after the rally. At some point, you'll see a particularly strong rally and that may be a trend reversal. You can take a chance at buying in at that point. In case you're wrong, it would be wise to set a stop loss slightly below your entry point. You can also use a trailing stop loss. At some point, one of those big rallies is gonna be the real thing. And then you'll be in. 6- Don't worry if you miss the bottom. You can still get in at a good price if you're a little late or early. A lot of people miss the boat entirely or they panic sell and don't get back in. You're beating all of those people already.
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| Bitcoin Is Back Trading Near Three-Year Highs Posted: 02 Nov 2020 10:21 AM PST The digital currency is up 90% this year, outpacing stocks, gold and other assets https://www.wsj.com/articles/bitcoin-is-back-trading-near-three-year-highs-11604250000 [link] [comments]  |
| Posted: 02 Nov 2020 05:38 PM PST PayPal CEO Dan Schulman provided new details about the company's recent embrace of Bitcoin and other cryptocurrencies on Monday, describing plans for shopping tools as well as potential partnerships with central banks. https://fortune.com/2020/11/02/paypal-cryptocurrency-bitcoin-venmo/ [link] [comments]  |
| Ray Dalio: Yuan Will be a Reserve Currency Faster Than Expected Posted: 02 Nov 2020 07:31 AM PST Highlights:
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| Posted: 02 Nov 2020 09:36 AM PST One thing I often hear people say about the stock market is that "all available information about a company has already been priced in". By this I suppose people mean that, on average, the market behaves "ideally", in the sense that all pieces of available information about how a company is doing have already been taken into account, so that the current price reflects the "real" (expected) value of the company at the given time. However, it also seems very common to believe that, in the long term, the market is expected to grow, so that investing in things that e.g. reflect indices such as the S&P500 will usually turn a profit in the long term. I don't quite understand how these two things are compatible with each other. If the share price of company X has been ideally valued by the market, doesn't that mean that, on average, one should expect such price to remain steady? Of course, new information might become available in the future and affect said "ideal stock price", but shouldn't such surprises again average out to zero? Meaning that there shouldn't be a reason to expect more negative surprises that positive ones, or vice versa. If there was, such information should have already been taken into account into the share price. As an example, say the market behaves ideally and thinks that company X will have "net value" 100 tomorrow. That means that the current valuation should also be 100 today, correct? If not, that would mean that the stock is currently undervalued, and thus not "ideally valued" by the market. Similarly, if a company is expected to have value 1000 next month, that should also be reflected into the current price. I suppose such price should then be something that starts at 1000 and is decreased in a manner that takes into account that "money now is worth more than money tomorrow", or something to that effect. This would lead me to believe that the only way for the "ideal market" and "indices grow on average" hypotheses to both hold true, is via the different valuation that different people might assign to an expected return at different points in the future. In other words, I should expect an average return from an ideal market only under the assumption that the market values a return after a time t less than I do. Is this the case? Or am I (as I probably am) completely off-point? [link] [comments]  |
| What desktop software do you use for chart follow up? Posted: 03 Nov 2020 02:23 AM PST Specially for pilling all your stocks in the same screen and with some features to aid your analysis. Preferentially free, but I don't disregard paying as well if it's not that expensive. With a clean design which allow you to focus exactly on what matters. It doesn't need to be able to perform transactions. [link] [comments]  |
| CD PROJEKT RED 2 stocks - different behavior? Posted: 03 Nov 2020 02:56 AM PST Hi ppl, I'm kinda new to investing and want to ask you a question. Yesterday, Invested in this gaming company through their Frankfurt stock ( they are a polish company and I don't have access to their market). Today when I check in to see what's going on, I see that my stock (the German one) is down while the polish stock is up. Also when I compared these stocks in Google finance I see a lot of differences. So, can someone elaborate on this matter? Thanks in advance! [link] [comments]  |
| Cloudflare ($NET) releasing earnings on 11/5, thoughts? Posted: 02 Nov 2020 02:24 PM PST Expected earnings are between $102.5 and $103.5 million. They have 3 million+ paying/non-paying customers, 96,000 of which are paying, with 637 large customers ($100,000+/year). They're pretty diverse in terms of customer base so don't expect a Fastly fiasco (losing Tik-Tik), however, they have exposure to small and medium sized businesses which may have affected their revenue this quarter. Personally, I'm expecting an earnings beat due to WFH and many stores going virtual, plus their new security offerings. I'm long NET with options expiring Dec 2020, Jan 2021, Jan 2022, and Jan 2023. I'm gonna hodl through elections + earnings. How about you? https://finance.yahoo.com/news/whats-store-cloudflare-net-earnings-135701644.html [link] [comments]  |
| An all ETF portfolio... 3 fund portfolio? What’s your favorite and why? Posted: 02 Nov 2020 06:34 PM PST I've owned individual stocks for years, mostly buy and hold. I bought mostly blue chip companies that I know and believed in (and so far have done well). A while back I started to "diversify" with VOO and QQQ. As Idid more research, I realized I had a lot of overlap of my individual stocks as well as in those two ETFs. In addition had limited international or bond exposure. Do you like the three fund portfolio (VTI, VXUS, BND)?
I'm looking at a 30 year time horizon. Want to make my investments safer and be able to rebalance more easily. [link] [comments]  |
| Posted: 03 Nov 2020 03:57 AM PST Hi [link] [comments]  |
| Posted: 02 Nov 2020 06:51 PM PST Just couple days ago Boris johnson announced England to enter second lockdown also Covid cases is surging in many europe countries. England stock market index FTSE did not drop much at all. What do you guys think it's not affected much. Do you think US stock market will be affected way more than europe stock market if lockdown occur as in europe? [link] [comments]  |
| How can international investors benefit from China's positive interest rate? Posted: 03 Nov 2020 02:35 AM PST Billionaire Ray Dalio told Bloomberg that investors should buy Chinese bonds regardless of who wins Tuesday's election. (news) . There's an article that explains China's new monetary policies. (source). In summary
If as Ray Dalio said, "The interest-rate differentials are favorable. The growth rate differentials are favorable", how can retail investors benefit from this? I bought some funds that invest in Chinese tech companies listed in Hong Kong or the US, but I haven't found any fund that invests in Chinese bond market yet. [link] [comments]  |
| Virgin Galactic still plans to go to space this fall ! Posted: 02 Nov 2020 02:08 PM PST The flight window is open and the fall will last 7 more weeks. Virgin Galactic has just updated that they are still on schedule to have a test flight later this fall that will help complete its FAA certification requirements. We should be getting a announcement any day now on when the test flight should be. [link] [comments]  |
| Posted: 02 Nov 2020 01:33 PM PST Topic. I think it's interesting that the larger the base is, the bigger the explosion in price of the stock. The 20+ year history of Apple from 1980-2000 being one example, and Tesla's 5 year period starting in 2015 to the early period of 2020 where the stock did not grow at all being another example. [link] [comments]  |
| What do you expect to see from NIO? Posted: 02 Nov 2020 06:52 AM PST I'm debating if it's too late to jump om the NIO bandwagon. I have a bit of money I want to invest today before the elections tomorrow. I'm thinking of investing in NIO because it's done so well in the past 6 months, but I'm worried it might be too late and FOMO will bite me in the butt. Anyone have any insight on this? Edit: I bought a few shares thanks guys! [link] [comments]  |
| Alaska Air Group (NYSE: ALK) - A quick look at ALK's potential to capitalize on their position Posted: 02 Nov 2020 10:16 PM PST Introduction:The entire airlines industry in the US suffered from the COVID-19 shutdowns. In response, they all reduced capacity, cut costs, and preserved cash, although the approach and success has varied wildly by each carrier. Let's take a quick look at one that is possibly in the best position to capitalize on a recovery. (Whenever that happens anyways) Alaska Air Group (NYSE: ALK) - What sets them apartLike all the carriers, Alaska posted a hefty loss in the Q3 earnings, however, their performance was better than all of its peers apart from Southwest (NYSE: LUV) in the airlines industry, going against market expectations. Between its solid balance sheet, improving demand, and effective cost-cutting, Alaska Airlines is poised for a strong earnings recovery over the next several years. The recent increase in demand, particularly to Hawaii due to (due to better COVID testing guidelines) has allowed the company to slow their cash burning. This could potentially improve their Q4 expectations. Despite this though, note that it did give up on goals of being cash even by years end because they are continuing to block middle seats on their airlines. Not 100% sure if all the other reputable airlines are doing this, if not then perhaps it might increase demand for AK flights since they are more concerned for people's safety? Other notes:
Future plans:Alaska Airlines was focused on expanding service along the West Coast, growing connections to the biggest cities in the region, and to smaller markets in the West. Recently they have picked up plans to continue capitalizing on this strategy announcing new destinations to mountain and warm-weather locations. (Source) Additionally, they has confirmed that it will join the Oneworld Global Airline Alliance on March 31, 2021, which aims to bring together 13 airlines to deliver a superior, seamless travel experience & special privileges for frequent flyers. This will be a new sources of revenue assuming it will happens. Final thoughts:Alaska Air Group offers tempting risk-reward potential in the airline sector, however it is hard to say how much longer the industry will remain down while COVID numbers continuing to spike. Regardless, it may present a compelling opportunity for those with more risk tolerance. As always, please supplement this post with your own research. This was just a quick post and there was not a lot of in depth information regarding their financials or their competitors. And, as always thankyou for reading. Have a good day everyone! [link] [comments]  |
| German banks continuous downfall Posted: 03 Nov 2020 01:56 AM PST Why german banks have never rose back since the 2008 recession? I thought banks have almost unlimited money (except for a small deposit they require to keep) and the rest is used for loans and investments to increase their profit, right? so how come their stock didn't rise for the past 12+yrs while there wasn't any recession in most of those years and most bank stocks worldwide did rose a lot during the past 12 years (until covid)? Tl;dr what do I miss here that differs germany from other countries in the banking stocks? [link] [comments]  |
| Altria (MO) - 3Q20 Earnings Analysis Posted: 02 Nov 2020 07:06 AM PST Altria posted 3Q earnings last week and the stock sold off (amongst a broader market decline). I think this is a buying opportunity because the quarter showed a number of strong fundamentals and catalysts. 2nd consecutive volume guidance raise - Altria now expects industry volumes in 2020 to be down 0.0 - 1.5%, which is the second time they've raised guidance on this metric this year. Initially they expected volumes to be down 4-6% in 1Q, and then in 2Q they expected volumes to be down 2.0 - 3.5% for the year. So cigarette volumes are getting sequentially better by a significant margin each quarter. I'm not interpreting this to mean that volumes are going to inflect towards growth, but it is showing that the market is very resilient despite this weak economy. It's tough to say how much COVID is contributing to this, versus perhaps lack of alternatives with the vaping bans, but nonetheless it's a positive short-term metric. On! Expansion on track - On! has now been pushed to an additional 16,000 stores, and is now in 56,000 total stores, which is 40% sequential growth and 300% growth over the last 3 quarters. They now have 2.1% market share in oral tobacco. Altria is now implementing promotional activity and is deploying significant resources to drive customer uptake of the brand. Management admitted that they are still under manufacturing capacity constraints, so the fact that they are still constrained on supply means that underlying demand numbers for On! look very good. 2.1% market share in less than 18 months of ownership is a very strong growth rate, and at this rate I think on! Could mean that Altria's revenue goes from flat to up. Organic revenue growth at a company with this level of undervaluation could cause a very strong multiple re-rate, even with the longer-term cannibalization that would occur. JUUL PMTA submission completed - This is an important milestone to getting JUUL out of regulatory purgatory. Although there was another valuation write-down for JUUL (which we'll talk about soon). I did find this quote to be very interesting: "We encouraged FDA enforcement against non compliant manufacturers, including those who continue to sell e-vapor products without a PMTA submission." This is a direct shot at brands like PuffBar, which continue to sell flavored vape products despite the legal ban. Shutting down those illicit vendors will likely stem the tide of JUUL defections, and at least stabilize falling volumes if not reverse the trend, as nicotine users may revert back to JUUL if there are no alternatives. I found this to be a bit of a silver lining, and I'm hoping that the FDA shuts down the illegal activity. IQOS moving to C-stores - IQOS is now being expanded into convenience stores (starting in Charlotte NC in November) Acknowledgement that the stock is cheap - In the Q&A, CEO Billy Gifford was asked directly about Altria's poor share price performance. Gifford agreed it was undervalued, and specifically pointed to "losing trust" from their shareholders (which I think is a jab at previous management's deals to buy Cronos/JUUL). When further pressed about why they don't just buy back stock,especially given the strong balance sheet, Gifford demurred and said their #1 priority is the dividend. In my opinion, they already gave a dividend increase last quarter, and I agree that they time is ripe for a large buyback. If management regains confidence in the outlook given the COVID situation, I think they could return some of the contingency cash they built up to weather COVID to shareholders through a buyback and prop the stock price up. There was one large negative item this quarter, and that was another writedown of JUUL. Altria took another $2.6bn impairment against JUUL (driven by lower revenue forecasts after the reduction of JUULs international expansion plans), and now its carrying value is $1.6bn. If you recall from my original write-up, once JUUL has been impaired below $1.2bn, Altria can then re-enter the vape market with its own product. They are now very close to that threshold. My thinking is that Altria is waiting to see the result of the PMTA with JUUL, and if that is favorable they will throw their weight behind JUUL and attempt to regain the lost market share. Frankly i agree with this strategy, as JUUL was so dominant in vaping that it is worth trying to reclaim the throne with an already established brand rather than build a brand from scratch (or reintroduce MarkTen) and then have to do PMTA's etc all over again. So the silver lining (albeit a small one). In summary, despite the good outweighing the bad once again this quarter, Altria's stock has slid from a recent high around $44 to $36 currently. The market as a whole has taken a beating the last 2 weeks, and low/no growth stocks like Altria are getting doubly punished as the market bids up growth/disruption/glamour stocks to insane valuations (Snowflake trading at 124x forward revenue…) Nonetheless, I do believe the multiple will see some re-rating over the next few years, and the catalysts will be
I see all of these as fairly high probability events, so again I don't feel like I'm taking much risk, and while I continue to collect nearly a 10% dividend yield I believe I am being compensated to wait. It is tough to see how shares could see continued valuation pressure when fundamentals seem to be improving, but shares can defy valuation logic to the downside just as much as they can to the upside. In the meantime I'm adding to positions in both Altria and Philip Morris (which is also cheap, although not as much as Altria). Disclosure: Author owns shares of MO and PM, and continues to add to positions You can see the full write-up here See my prior deep dive long thesis on Altria here, and my review of 2Q20 earnings here [link] [comments]  |
| Posted: 02 Nov 2020 10:41 PM PST When someone asks what's your financial plan how do you respond, I'm 14 and have money to invest and I'm currently reading a book which just asks what's your plan, anybody know how to plan that out or is it one of those things that i must figure out on my own [link] [comments]  |
| I'm looking for a good semiconductors' ETF Posted: 02 Nov 2020 08:51 AM PST Hello guys i'm writing this post since i want to invest a fraction of my money into a field i think has a great potential in the next 10 years such as Telecomunications and Semiconductors. I've found iShares PHLX Semiconductor ETF (SOXX) but it has a very high price and i want to find something still reliable but on a lower price to be easier to manage. Any suggestion? Thanks a lot. [link] [comments]  |
| When is the best time of the day or day of the week to buy stocks? Posted: 02 Nov 2020 10:03 PM PST Is there an optimal time to buy stocks considering variable such as 401K contribution happens on Friday, traders will be away during lunch time and many traders don't like to have open position over the weekend etc...? Would buying Friday be a better option than Monday? [link] [comments]  |
| Does treasury pay their interest+ bond to the fed? Posted: 02 Nov 2020 10:03 PM PST I heard all the profit that the fed makes goes into treasury.. does that mean the treasury department make unlimited money? like if they issue bond to people, and the fed purchases them through OMO, then all the treasury bonds that the fed bought would be given to treasury right? When someone buys a Treasury bond, the government must pay them interest. This applies to the Fed as well, but then at year-end the Fed remits the interest back to the Treasury. The federal government paid out $223 billion in interest payments last year This is the article I was reading about [link] [comments]  |
| Looking for geographically focused REITs Posted: 02 Nov 2020 12:46 PM PST Hi guys, I'll get straight to it. I'm looking for REITs that focus on a specific location, not a specific asset class, preferably one who focuses on a big city (Capitals in European countries, for example). I only know of CAPCO so far and im invested in it, but would love to hear other options. Thank you! [link] [comments]  |
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