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    Tuesday, December 29, 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: 29 Dec 2020 04:08 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:

    • 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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    $ACY is up 1300% today and no one claims to know why

    Posted: 28 Dec 2020 11:19 AM PST

    The stock has been around for years. Independent aircraft leasing company. Up from $3 to $38 in one day. The CFO just released a statement saying the company has no idea what is going on with the stock price.

    30 million shares traded. 1.55M shares outstanding. Average daily volume 140k. LOL. Any thoughts?

    https://www.globenewswire.com/news-release/2020/12/28/2150981/0/en/AeroCentury-Corp-Comments-on-Unusual-Market-Activity.html

    submitted by /u/TheCreepyKing
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    I am 110% bull on renewable energy over the next few years. (And beyond)

    Posted: 28 Dec 2020 11:14 PM PST

    I like Lithium America (LAC), iShares Global Clean Energy ETF (ICLN), and Novus (NOVS) which will soon become AppHarvest, possibly the future of North American agriculture.

    I've been doing my research lately and just bought 100 shares of each. Not the biggest investment in the world but not small by any means. I'm big on anything renewable and have no problem playing the long-term game. I actually prefer it.

    How do you all feel about these?

    Also, additional opinions I would love from any of you would be your thoughts on Sunrun (RUN), Palantir (PLTR), Canadian Solar (CSIQ), and First Trust Global Wind Energy ETF (FAN). I am very high on all of these over the next 5 years.

    Thanks in advance, and I'm still learning along with everyone else. Warren Buffett said, invest in what you know, and it's better to get a good company at an okay price, than an okay company at a good price. I'm less concerned about the week to week or month to month, and more so confident in renewable energy taking over during the next decade. It's not a matter of opinion, and it's not if, but when!

    Thanks all and Happy Holidays and Happy New Year.

    submitted by /u/TheVanillaMiller
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    Boeing not even delivering 787s now... when do they run out of cash?

    Posted: 28 Dec 2020 06:44 AM PST

    The only airplanes that BCA is delivering right now are 767s, and a very few 737s. Their cash burn has increased in the second half of 2020 because of the issues with the body join on the 787s.

    I know that they pulled in a bunch of cash to ride out the 737 storm, but they must be burning it up at a prodigious rate.

    Has anyone seen info on BA cash burn rate relative to their stockpile? Anyone place odds on BA going bankrupt in 2021?

    They have practically no major revenue generating operation right now, relative to their cost structures.

    Article discussing 787 issues: http://nyc787.blogspot.com/

    submitted by /u/Dies2much
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    It is wise to keep excess liquidity in Fixed income assets rather than cash?

    Posted: 29 Dec 2020 12:29 AM PST

    As many others this year, my account and strategy is quite aggressive, which also means I keep quite a lot of cash (40-50%) to protest myself from sudden market downturns and give my myself flexibility in case of sudden corrections. Recently I've been thinking if it is wiser to keep money in fixed income assets instead but I'm also not very well versed in the topic. REITs are also subject to market forces and so are dividend ETFs. I think that mostly leaves me with bonds, but governments bonds have returns that are too low and corporate bonds can be quite risky, but then again I'm open to all new ideas (maybe AAA bonds?). Nor will I even know how to go about purchasing them (maybe some vanguard etfs)? I'm looking for some guidance, whether it's links, general advise, your personal experience etc

    submitted by /u/ses92
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    S&P 500, Dow 30 and Nasdaq Composite all close at record highs

    Posted: 28 Dec 2020 01:07 PM PST

    'Growth' stocks once again leading the way

    Bitcoin surging also suggests massive risk-on rally

    "If I had never sold a stock, I would be much wealthier" - Warren Buffett

    I don't have much confidence in the 1 to 2 year outlook for the market, but with a long term investing horizon, I don't have to. Only way to benefit from every rally is to also hold through every decline.

    submitted by /u/JCornwall8
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    Pfizer Stock (PFE) : with all the good business scenario for Pfizer with COVID vaccine , why is the price is still stuck in 35 to 40 range ?

    Posted: 28 Dec 2020 08:26 PM PST

    My question is relation to Moderna which just has one product , but the price went from 60 to 170 ( and now back to 120 ). But the price move is purely based on their vaccine business.

    But Pfizer with more order for vaccine than Moderna is not moving at all. I might be dumb to ask this but I really confused why it won't go. Please give ur thoughts

    submitted by /u/balasbrn
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    Why I think Facebook is ridiculously undervalued

    Posted: 29 Dec 2020 04:15 AM PST

    Big fan of Peter lynch and the concept of uncomplicated investment strategies. Like Mr Lynch, I don't pay much attention to extra technical analysis.

    So For me, when making big bulk (no yolo) investments, I only focus on a few things:

    • Profitable? (Yes , Margins? - Mid-HIGH %)
    • Debt? (Preferably NO, or Yes, but with 2x cash to pay it off)
    • Competition? (Yes, but market leader or top player)
    • Growth ? (Yes, more growth potential)

    To me, a company that fits this criteria will get into my portfolio and I'll adjust as i see fit on a YoY basis.

    This brings me to facebook. Currently trading at $277, I believe that the stock is far far far far undervalued. And below are my reasons why:

    • Is Facebook profitable? - Yes, 2019 profits of $18.4billion on $70b revenue. We still have Q4 2020 to go and as of Q3 2020 Facebook generated around $21.5 billion in revenue up 22% year-on-year (beating estimates)
    • Do they have debt? ($277m as of 2019 with $55billion in cash)
    • Competition (they own a couple in IG and Whatsapp, but you also have Twtr, Snap, TikTok - FB is still most profitable out of all of them, better balance sheet)
    • Growth (Room for IG commerce, still yet to monetise whatsapp, could start off in non western countries if they wanted to do it slowly)

    From a balance sheet perspective, this is a solid business bearing in mind that almost every business took a hit from Covid. Facebook is not a 1-product company.. and they shouldn't be seen as such. The core FB app isn't going to be the source of future growth per se. Think Oculus, think Whatsapp payments, and many more.. ultimately, Facebook has one thing that everyone values - DATA from older audiences on the core product, to younger audiences on Whatsapp and IG.

    What is the major risk?

    Regulatory split up.. I don't need to go into details here, but we all know that FB is under a lot of anti-trust scrutiny much like AT&T, Microsoft and Standard Oil experienced.

    Most people say that FB could be broken up.. and I say, this is more reason to BUY.

    Typically when a company is forced to split, it's existing shareholders will experience a split in shares across the various baby subsidiaries..

    Let's use AT&T for example:

    On Jan. 1, 1984, more than 3 million AT&T shareholders were given new stock: For every 10 shares of Ma Bell they owned, they received one share in each of seven new regional phone companies, or "Baby Bells."

    10yrs later in 1996, their investment had grown more than 600%. 100 shares in AT&T became 550 shares in 10 different companies. (source: https://www.spokesman.com/stories/1996/may/25/att-rewards-steady-investors-shares-held-since/)

    All in All, most forced splits via regulation only served to make the companies stronger : Another example - Standard Oil led to Exxon, BP etc (good for existing shareholders)

    The bottomline is, Facebook is a wonderful business from a balance sheet perspective, and there is still room to grow.. the risks aren't as bad as they seem or different to any other business in the world and the only reason not to buy FB right now is probably your moral concerns of what they actually do.

    Looking forward to your thoughts.

    Thank you.

    submitted by /u/Mrbusiness2019
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    $GTBIF, the marijuana stock you should consider

    Posted: 28 Dec 2020 09:51 PM PST

    Now, before we begin, it is worth mentioning that Mitch Mcconnell will block marijuana from being legalized for as long as he is alive. Not to worry, with an incoming democratic president, the executive branch will let marijuana legalization slowly flourish, even without full federal legalization.

    Introduction: $GTBIF (Green Thumb Industries) is a US-based marijuana company founded in 2014 and currently operates in 11 states. Many of its sales come from high-margin derivatives such as edibles, vapes, etc. that can't be made at home. As part of its profile, it owns the luxury cannabis brand Beboe, which has been called the "Hermes of Cannabis ". Remember: If you can't afford a Berken for your wife, maybe you can afford this.

    Why GTBIF: What do we love when investing: Growth and Cash Flow

    GTBIF has had 31.1% year over year revenue growth and generated 157$ million in revenue this year. With New Jersey, a 1$ bn market set to become a full recreational state in 2021 (where GTBIF already has existing medical dispensaries), and NY to follow soon after, this growth should continue and potentially even expand.

    Now for cash flow, GTBIF recently reached positive earnings per share 0.04$, which is great to have for such a fast growing company in a flourishing market. It has succeeded where many other marijuana companies have failed: creating money and managing debt to bring value to shareholders. Their cash flow should only continue to grow in the near future.

    Dangers: The biggest danger that I foresee is possible competition from companies such as Curaleaf, Cresco labs, TerrAscend, Accreage Holdings, Canopy Growth, etc.

    In regards to its primary competitor Curaleaf, Green thumb has a stronger balance sheet. They both have similar cash on hand, but curaleaf has 580$ million in debt compared to green thumb's 204$ million. Moreover, curaleaf has a higher market cap at 8.27 billion vs. green thumb's 5.378 billion. I believe GTBIF is a better option.

    Most of those other companies are unprofitable and do not have a clear path to profitability. Over the long term, many can and probably will succeed, but I believe GTBIF has a head start and is in the best position.

    submitted by /u/South_ParkRepublican
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    Those who were around in the dotcom bubble, what’s your biggest bag?

    Posted: 28 Dec 2020 06:00 AM PST

    Interested to see if there's some investors out there that were victims of the dotcom bubble and are still holding their bags, never cutting their losses.

    What were some companies you invested in with high valuations that never got back to their all time highs?

    submitted by /u/XIST-R-2-S
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    Commodity investing part 2: the start of a new cycle and the great opportunities it will bring

    Posted: 28 Dec 2020 10:45 AM PST

    A little over a month ago, I wrote a post about why I believe commodities and commodity related equities would provide a better return on invested capital compared to other sectors in the market (tech, consumer goods, healthcare etc.) in the coming decade. Why I believe this is the case, is simply a factor of how markets work and how they have worked for the past hundreds of years. The past decade has seen an incredible run in the general equities market and most notably the tech giants (and subsequently the Nasdaq). However, recency bias can be a blinding mistake for many investors. Thinking something will keep going up because it has done so in recent times, is not always the case and even if it will, chances are the subsequent run up won't be nearly as big.

    So while this part of the market has run up, commodities staggered and lagged behind. Years of underinvestment followed the end of the previous commodity bull market and as these things go, as was shown time and again throughout history, the cycle is about to turn. When there is severe underinvestment in a sector, supply gets constrained because things like exploration and development of new sources gets cut. This results in a situation with one of two outcomes. Either we replace the commodity in questions in its entirety and it ceases to exit (extremely unlikely with the commodities I covered) or the price goes up, because now there is not enough supply to meet ever growing demand. As these companies are heavily leveraged to the price of the respective underlying commodity, operating margin increases and so does free cash flow, allowing the share prices of these companies to go up exponentially. At high prices, more and more new projects will be explored for, developed and brough into production, after which we will get more supply and the price will drop.

    These cycles have been in place ever since the concept of the stock market has been in place and there is no reason for that to change now. We are standing at the start of another major commodity bull market which will take us back into this upcycle. Uranium and copper have run up significantly and after a period of consolidation since August, I fully believe gold and silver stocks will perform amazingly from the start of the year into Q2 of 2021. Those who participate stand to profit greatly off of playing this new cycle. I am not saying to position your entire portfolio into this part of the market, but having no significant exposure will in my view be a foolish decision.

    To add to my list of commodities I am bullish on for the coming decade, I will add Cobalt, Nickel, Oil&Gas and Potash. There are several other and opportunities can be found for those willing to do the work. Best of luck out there and always make sure to do your own due diligence.

    In my previous post, I covered the following sectors and companies, this is how they performed in the time between that post and this one:

    Uranium:

    Cameco +43%
    Energy Fuels +147%
    Denison Mines +105%

    Silver:
    Pan American Silver +2%
    First Majestic Silver +19%
    SSR Mining +2%

    Copper:
    Freeport Mcmoran +17%
    Rio Tinto +18%
    Lundin Mining +20%

    Gold:
    Barrick Gold -10%
    Agnico-Eagle Mines -3%
    B2Gold -9%

    Lithium:

    Albemarle +17%
    SQM +7%
    Livent +22%

    In the same period, the three major US indexes are up:
    S&P 500 +3%
    Nasdaq +8%
    Dow Jones +2%

    Some popular stocks on this subreddit in that time:
    Tesla +64%
    Amazon +5%
    Apple +13%
    NIO -3%
    Microsoft +4%

    TLDR: we are at the beginning of another upcycle in commodities and this bull market will create great returns on investment for those who choose to participate. I believe having a significant allocation of your portfolio in this part of the market is most definitely worth it, as in my view it will outperform other sectors and the general market.

    submitted by /u/3STmotivation
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    Drank the WSB Juice.. Did I mess up?

    Posted: 28 Dec 2020 05:36 PM PST

    I make a modest income and work very hard to save every spare penny. I have never been one to invest and gamble with my finances, but with my mind focused on saving for a down payment on a home in CA (usually 120k), I have become a bit more desperate to make money moves. Recently on WSB, I read a thread on investing in PSTH, and how it is fool-proof basically. After a bit of research, I am contemplating dumping a large chunk of my savings into this in hopes that it can atleast double my income in 12mnths. (Hopeful)

    Now I am realizing that WSB is mainly for meme stocks and hard to take seriously. Is there any merit to their recommendations? Will this be a good stock option for me?

    TLDR; I am thinking of investing a large chunk of savings into PSTH due to recommendation on r/wallstreetbets. Is this a poor idea? Please advise.

    submitted by /u/isuckatspeling
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    Thoughts on ICLN, VTI + VXUS?

    Posted: 28 Dec 2020 08:22 PM PST

    Recently just got into investing. I finally had the balls to invest in 1k to the test the waters. Really really new. Been doing some researching and I've been thinking and I'm wondering if VTI + VXUS will be worth it in the long run? Or should I just go all in right now into ICLN. Any constructive criticism is appreciated. Thanks!

    submitted by /u/jkinszzzzz
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    Beyond Meat Cash Flow Issue?

    Posted: 28 Dec 2020 10:27 AM PST

    Hi,

    I noticed beyond meat has been a fairly popular investment considering the plant based/green trends. They have some pretty good partnerships. However, it seems that they have increasingly negative operating cash flow year over year. I see this as a way to look at the health of a business and its ability to generate $. So why are so many investors (institutional and retail) able to overlook that? Since it is getting owrse and worse, it seems to be signs of a sinking ship. The company seems to be losing more and more $ in operating cash flow each year and also borrowing more and more money.

    Am I interpreting this wrong? I'd like to understand how people can justify that and still invest. Much respect to the investors, just trying to understand. Thanks.

    Breakdown TTM 12/31/2019 12/31/2018 12/31/2017 12/31/2016
    Operating Cash Flow -46,995 -46,995 -37,721 -25,273 -23,495
    Investing Cash Flow -26,164 -26,164 -23,242 -8,115 -5,038
    Financing Cash Flow 294,876 294,876 76,199 55,425 31,914
    submitted by /u/zeroskater45
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    Data-Driven Portfolio Building Application

    Posted: 28 Dec 2020 02:53 PM PST

    Hello everyone, this is my first post here and I'm coming to you all today with an idea that I had and questions to go along with it.

    TL;DR I want to use the R programming language to drive portfolio decisions and I have most of a plan but little knowledge of the necessary resources to fully execute it so pls help.

    My Goal

    Use quantitative analysis to build optimal portfolios for both the short and long term. I will first use historical stock data to tune any models I build and test out long-term scenarios with the historical data. From that I hope to find the best metrics to use to drive purchasing/selling decisions and portfolio composition to minimize risk and maximize gain (I know that last part is obvious, but I'm still going to say it) and then apply what I built to real-time stocks.

    My Plan

    Model Building

    • Data: to build my model I intend to download 20 years of historical stock data on every ticker that is available. I will use whichever financial metrics are included and calculate the rest.
    • I will test out a variety of methods combining forecasting and machine learning to 1) choose which stocks to buy (and later, which ones to sell) 2) choose how much of a stock to buy and 3) choose the optimal portfolio. To choose the top performing method I am going to create 1,000 faux investment accounts with amounts that range from $100 to $1,000,000 as a baseline and train/test the models on each scenario for roughly 20 years of the historical data. I will compare the results of these scenarios and select the top performing models (if there is any advice on what might already be the best method feel free to let me know).

    Real-World Testing

    • Data: to continuously build upon the model I will download stock data every day and run it through my model to bring me to what decisions I should make.
    • I'm risk-adverse, so, like in the Model Building phase, I am going to create a series of faux accounts of varying amounts and assess their performance over the course of the next year. Once I am confident in the results I will begin applying my model to my own portfolio.

    Other Considerations

    • I don't intend to day-trade. Though I will assess my portfolio daily, I will include minor tests that will help me decide whether to hold onto my portfolio or whether to adjust it more so on a weekly/monthly basis
    • I will prioritize risk over reward (I have decades left until retirement)
    • I intend to trust the numbers and not allow feelings to drive portfolio decisions
    • I will periodically test my model's performance and adjust accordingly

    Questions for the Community

    1. Best free websites to download aggregate historical/current stock data?
    2. Best models for forecasting stocks, portfolio composition? If anyone is familiar with R there are some packages that could be useful, but by no means have I looked through them all yet, so I'd gladly take advice there.
    3. Overall: has anyone built this before in a non-commercial setting? Is it feasible or even useful?

    If this idea intrigues you, I am open to collaboration. I want to make this using completely free resources with the intent to share the end result after the initial testing as well as in its completed stage. If you aren't comfortable in R, I'm still open to collaboration from an idea standpoint. I do want to make this to help myself, but I want others to be able to gain from it as well.

    Edit: I just learned about cross-posting so I will be posting this on other investing communities so I apologize if you see this more than once.

    submitted by /u/LateralPentose
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    Advice on fixing taxable account index fund allocation

    Posted: 29 Dec 2020 12:17 AM PST

    So My wife and I are currently in our 30s and are already maxing out available 401k and Roth IRA retirement accounts. We don't have an HSA at this time. We share a joint brokerage account where extra money goes to grow for far future goals (10+ years). The current allocation is roughly:

    VEXAX - $6000

    VFINX - $5,000

    VIGRX - $5500

    VTSAX - $27000

    VTIAX - $18,000

    The first three funds were picked when we stated and I didn't really know much about index funds. I picked them due to their high returns YTD. After reading up on it more I decided to go for contributing to Total market and Total international instead to keep it simpler.

    I am not sure what to do with the other funds, should I sell them and incur and capital gains tax just to reinvest in VTSAX or should I leave them alone to grow until I need them, and continue contributing to the total index funds in the meantime?

    Any advice is greatly appreciated.

    submitted by /u/hankhill1988
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    The Fraying of the US Global Currency Reserve System

    Posted: 28 Dec 2020 07:12 PM PST

    Long but interesting article that takes a high level systemic look at what's happening in the financial system. It's sort of in the vein of a lot of the Fed-related doom and gloom you see on this sub, except with seemingly pretty good analysis.

    https://www.lynalden.com/fraying-petrodollar-system/

    I'm curious to hear what people think.

    An excerpt that provides a pretty good summary:

    Basically, the petrodollar system and the associated fiscal policy is fraying under its own inherent flaws over decades, which again gets back to the Triffin dilemma that to maintain a global reserve currency, you need to export an increasing amount of your valuable assets like gold reserves or your industrial base. That cost inherently makes these sorts of systems long-lasting but not permanent.

    At first, having the global reserve currency is an exorbitant privilege, because the benefits of hegemonic power outweigh the costs of maintaining the system. Over time, however, the upside benefits stay relatively static, while the costs keep compounding over time, until the costs outweigh the benefits.

    And from there, the value of the system depends on who you ask. Folks who are often on the higher end of the income spectrum who worked in finance, government, healthcare, or technology benefitted from this system, since they obtained many of the benefits of globalization and none of the drawbacks. Folks who are often on the lower end of the income spectrum, specifically those that make physical things, are the ones that benefitted least and gave the most up, since their jobs were outsourced and automated at a faster rate than other developed countries. But now with China also undermining the structure of the system, even the geopolitical/hegemonic benefits for the political class are subverted as well.

    As the system frays, it's easy to point to external nations as the cause of this fraying. When they begin pricing things outside of the dollar-based system, or employing mercantilist currency policies, or building pipelines, or deciding to do something with their dollar surpluses other than reinvest them in US Treasuries, it can seem as though they are undermining an otherwise sound system.

    In reality, those external actions are a symptom of the more underlying flaws in the system: the fact that the United States is no longer big enough as a share of global GDP to supply enough dollars to fund global energy markets and global trade, the fact that the United States has to run persistent trade deficits to get dollars out into the system, and the fact that an all-fiat global currency system incentivizes mercantilist currency manipulation by many countries to generate trade surpluses against the US wherever possible.

    submitted by /u/prestodigitarium
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    Buying ABNB -Long Term Investment

    Posted: 28 Dec 2020 03:48 PM PST

    Looking to buy ABNB. Just looking for insight of what people think of ABNB.

    I am in my Mid-20s and a long-term investor. It has been a couple weeks since the IPO and I understand that ABNB will likely be a high volatility stock in the short term. Should I establish a position right now ? Should I wait until it gets back to the $120 price range? In the past week the stock has gone down 12-13 percent.

    submitted by /u/TacoLoco_55O
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    TOP BOND/GOLD ETF PICS

    Posted: 29 Dec 2020 03:35 AM PST

    Hello guys, i'm really annoyed with the wallstreebets stance about any type of question that does not start with to the moon or yolo, so i came here for some advice.

    Thanks in advance, i really can't stop thinking about how overvalued the market is and i'm looking for a safe place to put in some cash/investment just to save it there get some interest and take it out when the discounts come.

    So i thought that there could be some recommendations from the community about some ETF or other type of investment that could save some cash for the winter.

    I was thinkin maybe IAU, but gold is also overvalued and after las time it hit this level it went down for 10 years till now. also looked at SCHP but it looks like its correlated with the stock market

    Another one is VTIP but i think rates cannot go lower so the only side with this is a loss, it this correct?

    Well thanks in advance and let me know what you guys think.

    submitted by /u/Hhaabc
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    How do people tell the difference between good DD and emotive DD becasue someone has a lot invested?

    Posted: 29 Dec 2020 03:32 AM PST

    I ask because there has been a lot of talk on here about COUV and to be fair the DD is pretty good, but my issue is that is reads very emotive. It is as if someone is trying to sell the company rather than report unbiasedly on the company's current position.

    We all get a little protective of companies we invested money in, but sometimes I think that clouds our judgement and emotion towards what we invested into.

    We should all do our own DD, bit honestly everyone doesn't always and we rely on others.

    My argument is that I feel emotion clouds judgment of due diligence becasue money is involved.

    Are there any 'red flags' in DD that we should be aware of?

    submitted by /u/DaBi5cu1t
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    Investing platform

    Posted: 29 Dec 2020 03:27 AM PST

    Hello,

    Which investing platform do you recommend ?

    I don't mean a platform where you can buy the stocks themselves but a platform which provides with good graphs, articles regarding the stocks, premarket and market updates and so on.

    I'm talking about platform such as fool.com and etc..

    Thanks.

    submitted by /u/AsafM17
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    Alternative to Robinhood for Europeans based in EU?

    Posted: 28 Dec 2020 09:03 AM PST

    I tried to register at RH, but it says it`s only for US citizens. I tried Saxo Bank but it only allows UK and some off shore islands and Monaco. Is ETORO a good choice? Do you know anything else? It's frustrating that my Saxo reseller that I am registered in has disallowed trading options and I am looking for alternatives.

    submitted by /u/martinst111
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    Too late to max out pre-tax 401k + roth IRA rollover after-tax?

    Posted: 28 Dec 2020 02:55 PM PST

    Opted for the default 6% in my 401k throughout the year, now end of year I have a lot of cash leftover and would like to max it out pretax. However, there are no more paycheck distributions from my employer this year. Is there any way to still max out my 401k with pre-tax $ or not possible?

    If not, I can contribute after-tax $. Is it worth it to do so and rollover to my roth IRA? How does this work is it only able to be rolled over after age 65?

    submitted by /u/gildedbot
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    Stupid Question about Roth IRA Stocks

    Posted: 29 Dec 2020 02:08 AM PST

    I'm a 20 year old college student; just maxed out my Roth contributions for the past year.

    I have about 50% of my portfolio in index funds, 30% in blue-chip companies (DIS, AAPL, JNJ), and the rest in some swing trades. This might be a really stupid question, but what's the game plan when I hit my retirement age and can withdraw money from this account? Do people just sell off shares at a fixed percentage and use that money?

    I didn't really think about it until now - I've just been focused on moving positions around and making plays to net some gains, but what do you really do at that point? Once your portfolio's matured and you can finally reap what you sowed, what do you do?

    submitted by /u/Bubbanan
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    Daily Advice Thread - All basic help or advice questions must be posted here.

    Posted: 29 Dec 2020 02:00 AM PST

    If your question is "I have $10,000, what do I do?" or other "advice for my personal situation" questions, you should include relevant information, such as the following:

    * How old are you? What country do you live in?

    * Are you employed/making income? How much?

    * What are your objectives with this money? (Buy a house? Retirement savings?)

    * What is your time horizon? Do you need this money next month? Next 20yrs?

    * 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?)

    * Any big debts (include interest rate) or expenses?

    * And 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

    And our [side bar](https://www.reddit.com/r/investing/about/sidebar) also has useful resources.

    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!

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