Experience a large unexpected drop in your mutual fund recently? Read this before making your own post please. Investing |
- Experience a large unexpected drop in your mutual fund recently? Read this before making your own post please.
- Daily Advice Thread - All basic help or advice questions must be posted here.
- S&P 500, Nasdaq, Dow 30, Russell 2000 close at all time highs
- How America Invests 2020
- Bloomberg Intelligence Research Report: $50,000 is a good 2021 Bitcoin resistance
- GTEM limit order question.
- Mystery Surrounds $7 Billion Outflow From Vanguard S&P 500 Fund
- GME Short Squeeze: An In-depth Analysis
- ASH Annual Meeting & Exposition: Clinical data for CRISPR
- Snowflake now 2nd largest SAAS company by market cap, P/S ratio of over 200.
- What are your stock picks for the end of 2020 onto 2021? What do you think will be the next TSLA, AMZN, PLTR?
- Disney,Apple,Amazon and the NFL rights
- Finra 3720 - Outside Business Activity, forgot to disclose. Am I screwed? Please help.
- A Way to Combat Low Rates for the 60/40 Portfolio
- IPO purchase platforms differences?
- Have you ever experimented with making a portfolio of stock picks that tries to lose as much money as possible?
- Your Personal Opinion on the Wave of Retail Traders
- Realized P&L Historical data?
- Shorts questions
- Is AMZN the biggest player?
- VTI shares trading way below value
| Posted: 04 Dec 2020 04:40 PM PST A mutual fund is essentially just a basket of individual stocks/bonds/whatever. Within that basket the fund managers are constantly selling/buying and receiving dividends. The IRS has special rules for mutual funds which allow them to not pay taxes on the capital gains/dividends generated provided they pass through almost all of the proceeds from said activities to the shareholder within the calendar year. So dividends are often paid on some set schedule but capital gains are generally retained within the fund till the end of the year(because losses can reduce gains but can't be distributed to a shareholder). So on to why your fund dropped: in mid December everyone starts distributing these gains and as we know when a fund makes a distribution its NAV drops by an equal amount. For example a fund that was trading at $10 and had It's value made up of $9 worth of stock and $1 worth of cash to be distributed now no longer has that $1. So it'll drop by 10% because of that fact. Don't worry, you didn't lose any money because the $1 was paid to you in cash(and in most cases reinvested in the form of buying more shares). There isn't any value created or lost in a distribution(except to taxes) it's just a necessary taxable transaction that must occur because of how mutual funds are structured. ETFs are technically subject to this as well but since most follow passive cap weighted strategies or use the creation/redemption to wash out appreciated shares so they don't usually have capital gains realized to distribute. Also please feel free to add whatever questions/comments you have to this sticky. Here's a quick way to see what capital gains estimates/distribution dates are for most funds: Please note we'll probably be deleting any threads on the subject and pointing people here in order to keep the clutter down. [link] [comments]  |
| Daily Advice Thread - All basic help or advice questions must be posted here. Posted: 05 Dec 2020 04:09 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]  |
| S&P 500, Nasdaq, Dow 30, Russell 2000 close at all time highs Posted: 04 Dec 2020 01:03 PM PST Also Nasdaq 100 and NYSE Composite for good measure There is no way to ensure that you benefit from every bull market without holding through all bear markets as well. Been hearing that stocks are overvalued since S&P 2,500 "Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in corrections themselves." -Peter Lynch Buffett himself admitted he would have done far better if he never sold a single stock [link] [comments]  |
| Posted: 04 Dec 2020 03:29 PM PST Vanguard just published a very thorough paper on how US invests. 5 million retail investors' data were analyzed! It's a really interesting and insightful read so I figured some folks here would enjoy it. This may help you determine where you stand in the crowd. e.g., Figure 7 (pg. 14) documents the median balance of the taxable and different retirement accounts. These numbers can either comfort you or motivate you. [link] [comments]  |
| Bloomberg Intelligence Research Report: $50,000 is a good 2021 Bitcoin resistance Posted: 04 Dec 2020 02:48 PM PST
[link] [comments]  |
| Posted: 05 Dec 2020 07:15 AM PST I placed a GTEM limit Order for 200 shares of APXT at $12.95 and the next day I look on my questrade account and it got filled at an avg of $13.98. I'm so confused how this happened, it's never done this before. Could it be because it's GTEM and not during the day? Has anyone else had this happen to them on questrade? [link] [comments]  |
| Mystery Surrounds $7 Billion Outflow From Vanguard S&P 500 Fund Posted: 04 Dec 2020 12:47 PM PST More than $7 billion was pulled from the $172 billion Vanguard S&P 500 ETF (VOO) on a single day this week, according to data compiled by Bloomberg, about 4% of the fund's assets. But trading volumes were below the one-year average and there were no obvious outsized transactions, while the U.S. equity benchmark rose on the day -- making a mass exodus less appealing. Anyone an idea what might have happened here? [link] [comments]  |
| GME Short Squeeze: An In-depth Analysis Posted: 04 Dec 2020 08:13 AM PST Seeing that a significant interest has developed around the fabled GME short squeeze, I have written this post and I hope this writing provides an overview of the situation. The case for a squeeze:The entire argument for a short squeeze hinges on the possibility that either the management agrees with Ryan Cohen's plan and addresses it or he decides to pursue a hostile takeover. In this spirit, we urge you to quickly provide stockholders with a credible and publicly-available roadmap for cost containment, prioritizing profitable retail locations and geographic markets, and building the e-commerce ecosystem gamers deserve. (from the letter) This is Ryan Cohen's plan in its most raw form. Or to put it more simply, he wants GameStop to become the ultimate destination for gamers by leveraging its 55 million PowerUp members, its brand power; reducing lossmaking operations in Europe and Australia and to make investments in a Chewy like website for gaming. Has management been doing anything? Yes. A lot. It's hiring talents for building a successful online gaming store. Entered into a multi-year revenue-sharing agreement with Microsoft. It has also received a saving grace by the newest console cycle in which some people thought(like me) diskless gaming is going to be the leader. But the reality turned out to be quite the opposite. Add to that, the Nintendo Switch sold like wildfire in the US and is going strong, you have a winning combination for GameStop which would likely result in good quarters for the coming quarters. Management has also started a rebranding effort with some changes being made to its logo, items that are kept in-store and online etc. It seems like management is likely to address Cohen's concern and the lifeline it has received or will be receiving from the newest console could be its saving grace. If it can turn around or the management gives guidance that it CAN turn around its business model a short squeeze is imminent. Why would it be inevitable? Notice that short interest is almost 3 times higher than its float and more than outstanding shares, GME as a company is still relatively undervalued (assuming it doesn't go under). If the shorts realize that this company is not going to 0 as they have probably assumed, they will be forced to cover their shorts. The above-mentioned condition of short interest would guarantee that they have to cover. Also considering the average daily volume, this squeeze can last much longer(3-4 days may be) than the other historical squeezes like Volkswagen short squeeze when it became the most valuable company in the world for a short while. But given that the scenario surrounding GME is unprecedented, there is no telling how it could end up other than to say that it will be MASSIVE. Some shorts are already under water. Some of them are likely covering as noted by various Redditors and retail investors who are looking at the stock tick by tick. Also considering that short interest rose to a whopping 309.83% and is now down to 297.13% (as of this writing from Morningstar data), it's obvious that some of it were covered. The recent stock price appreciation could be a result of that plus the expectation of good quarterly earnings report. Retail mania: There is considerable retail interest in this stock. Considering that this stock is being heavily promoted in r/wallstreetbets and driven by that a lot of people are buying shares. According to a survey conducted there(not that reliable, but a good indicator of interest), that subreddit alone has enough ownership to get a board seat. Open Interest in call options is also huge considering that this is only a $1B market cap company. It's filled to the brim with OTM call options(from December 4 to April and further). And market makers and option sellers would have to hedge to serve this crowd, in turn increasing the stock price. This, in turn, could create a feedback loop where the shorts have to cover their positions, leading to a further increase in stock price, which would force market makers to purchase more shares which could increase stock price and on and on until it triggers a squeeze of epic proportion. Likely improving financial health: GME announced voluntary redemption of senior notes. Management has decided to redeem $125M of its senior notes. This is signalling that the company has managed to generate enough cash flow to cover its debt early. It could even help improve its credit rating which would help it attract institutional investors more and other perks that come with improved credit ratings. Declining debt is necessary as it would ultimately help deleverage the company and put it in a more sustainable footing which is ultimately what is needed for avoiding bankruptcy. Technical analysis: This is not my forte. I have bare-bones knowledge in TA and only use it for entry and exit purposes. But according to some retail investors in Reddit and tradingview GME has formed a cup and handle bullish pattern. Analyst Upgrades: Analysts are upgrading GME stock. Well, that's good, I guess. The Case For BankruptcyThe scenario in which a short squeeze doesn't occur is PROBABLY the scenario in which GME ultimately faces bankruptcy. As the thesis for short squeeze is laid out, the thesis for the short sellers is also crystal clear. After all, GME is STILL a large brick and mortar store that is trying to sell a product that could be very easily purchased using the power of the internet. The revenue of GameStop for the past few quarters is in steep decline. The company is overly leveraged and has many stores that are loss-making operations. Its online store has much lower visibility and investment and is lacking in many aspects(in my personal view). Its credit rating is not that good and Cohen himself somewhat criticised the management for trying to hang on to its old ways of doing things. Gaming and associated products are bound to thrive and grow at a CAGR of 9% and had grown even more in the past. Yet GameStop FAILS to capitalize on this trend and is continuously losing market share while destroying its financials. This is a clear sign that something is inherently broken within the company. While the management does seem to be trying to fix things, it could prove to be too little too late. To change its fortune it needs to turn around its business models like Best Buy or Walmart. Yet it seems pretty unfeasible judging by its financials. GameStop had adequate time to change with the times and become an early adopter but its backwards-looking culture and late entry made its journey full of competition. Short sellers believe that ultimately GameStop wouldn't be able to achieve a business turnaround and gain a critical mass of customers in its online space and management incompetency will ultimately lead to its bankruptcy. Thus its faith would be like the numerous mom and pop shops or the various retail giants that were. Even if GME share rises due to retail mania and market maker hedging; institutional investor ownership could decline, leaving retail investors as the ultimate bagholders. The shorts may bite their tongue and keep on paying interest as long as they believe no fundamental change in the business is going to happen. Which means they may not need to cover their position as long as the company becomes bankrupt, thus the fabled short squeeze may never materialize. After all, most shorts are probably institutional investors like Melvin Capital who can always maintain their margin requirements(if any) and like the retail investors they can also figure out what the retail investors are trying to do and thus avoid triggering any short squeeze. ConclusionThe next two or three quarters are pivotal for GME. DisclaimerThere are various nuances that I avoided writing(which are probably even more important to write) cause it might have taken too much of my time. Writing this post was a good exercise for me and I decided to ride on the GME train after doing so. Before you decide to do anything, you should do your research. This is not financial advice. Further ReadingYou better read this one even if you didn't read mine. Edit: grammar [link] [comments]  |
| ASH Annual Meeting & Exposition: Clinical data for CRISPR Posted: 05 Dec 2020 07:19 AM PST Three reports from EDIT NTLA & BEAM: https://www.reddit.com/r/EditasMedicine/comments/k7902w/editas_medicine_announces_preclinical_data_and/ (Sickle Cell Disease And Beta-Thalassemia) https://www.reddit.com/r/IntelliaTherapeutics/comments/k791cr/intellia_therapeutics_presents_new_preclinical/ (Engineered TCR-T Cell Treatment for Acute Myeloid Leukemia) https://www.reddit.com/r/BeamTherapeutics/comments/k76cw8/beam_therapeutics_presents_updated_data_from/ (Sickle Cell Disease) What is CRISPR? https://www.reddit.com/r/wallstreetbets/comments/gk6up7/crispr_introduction_ntla_crsp_edit_beam/ [link] [comments]  |
| Snowflake now 2nd largest SAAS company by market cap, P/S ratio of over 200. Posted: 04 Dec 2020 09:39 AM PST After another 14% daily move up, $SNOW is now worth more than ServiceNow, the 2nd largest SAAS company until today, and also coincidentally the last company its CEO Slootman took IPO. The CEO's stock options are now worth around $5B. It's one of those valuations that even industry insiders are dumbfounded by. Here is a quick list of price to sales ratio (not earnings, revenue) of some of the top SAAS companies: Salesforce: 8.86 ServiceNow: 25 Workday: 12.58 Now let's look at some *hot" SAAS companies that benefited from the Covid boom more than others: Shopify: 52 Zoom: 88.93 If you think Zoom is overvalued... get ready for Snowflake, which has the P/S ratio at the moment of ~200. Even if they successfully double their revenue by next year and the stock sees zero growth, it would still have a higher P/S ratio than any of the most hyped SAAS companies out there. [link] [comments]  |
| Posted: 04 Dec 2020 03:41 PM PST Just wanted to hear some newer stock picks or recommendations besides the typical reddit "meme" stocks. Do you have any undervalued or new stocks you've invested in or will invest in soon? Why do you think there's major growth in that stock? It's so interesting to see how impactful reddit is. Even though it's not always correct, there are always many picks that become super popular and thus have huge growth. What do you think will be the next kind that you're investing in soon for 2021 and the future? [link] [comments]  |
| Disney,Apple,Amazon and the NFL rights Posted: 04 Dec 2020 10:23 PM PST There has been this long debacle about which company would win these NFL broadcasting rights for 2 years. What are the key driving forces from stopping Apple+ TV or Disney since they have monday nights. Amazon also has Thursday night. Im pulling for Appls + TV [link] [comments]  |
| Finra 3720 - Outside Business Activity, forgot to disclose. Am I screwed? Please help. Posted: 05 Dec 2020 07:53 AM PST Hello. I work for a large firm in the finance industry and like most last firms I had to file a Form U4, which I did late last year (I'm fairly new and young, 25). I didn't disclose any Outside Business Activity since I didn't think I was part of any. However, I've always sold random stuff on eBay (mostly old stuff I no longer needed like old collectibles and the such) and I guess it didn't click back then that that could be seen as OBA especially with the little I was making and how unrelated it was to my job at the firm. Even as I type this I am still unsure if I am being honest. My question is, should I disclose this to my firm? Is this something that will be needed to be added to the Form U4 or is this something that the firm should just know about? I sold a decent amount of older collectibles this year that will be noted on the tax Form 1099 that I'm going early next year which I am assuming FINRA will see. I've had this eBay account since 2012 so it wouldn't be considered a "new" business activity. Guys, how screwed am I here? I need some serious feedback because I'm legit worried. What steps should I take? Am I overreacting or should I actually be worried? I know that if this DOES count as an OBA, then Finra will eventually find out probably through the 1099 tax document and I'll have to kiss my career goodbye. But what are the repercussions if I DO disclose, as soon as Monday? [link] [comments]  |
| A Way to Combat Low Rates for the 60/40 Portfolio Posted: 05 Dec 2020 07:32 AM PST Treasury bonds have been a great diversifier to an equities portfolio for many decades. Treasury bonds have a modestly negative correlation to equities, have appreciated in value as interest rates have decreased and they pay coupons. In December 2020, however, the 10-year is below 1% and the United States is likely to try to avoid negative interest rates, effecting capping the ceiling on appreciation for Treasury bonds. Plus, a modest whiff of inflation and you're going to be experiencing losses on Treasury bonds. I recognize a lot of investors do not like gold, but if you're practical it can provide meaningful value to your portfolio. A lack of cash flows/income is a very fair criticism of gold but you can create good income with covered calls on gold. It is simple:
I understand the criticisms people have on gold, but this strategy can add value to a lot of the 60/40 portfolios out there considering (1) gold has roughly zero correlation with the S&P 500 over the long-term and (2) you can get a 3.87% yield on this strategy while still maintaining good upside potential. Going from a 60/40 to a 60/35/5 portfolio to accommodate this can work for a lot of investors. [link] [comments]  |
| IPO purchase platforms differences? Posted: 04 Dec 2020 07:02 PM PST Between the trading platforms that offer the ability to purchase shares in an IPO, are there pros/cons to that ability between platforms? (e.g. ability to purchase a greater amount, etc) TDA is quite restricted in that ability, so looking to use an additional platform for this purpose. [link] [comments]  |
| Posted: 04 Dec 2020 02:07 PM PST Thought experiment here. They say it's hard to consistently beat the market, but I often wonder how hard the opposite would be to intentionally pick a basket of stocks that would lose you money. If daytrading and intentionally selling at a dip is not allowed, is it just as hard to pick a portfolio of losers as it is to pick a bunch of winners? [link] [comments]  |
| Your Personal Opinion on the Wave of Retail Traders Posted: 04 Dec 2020 10:25 PM PST Just curious on what everyone's opinions are on the new wave of retail traders (ie: Robinhood) that popped up during this pandemic. Did this pandemic create a "boom" in trading that will have a lasting affect on the market even after the pandemic is over, continuing to challenge the fundamentals before it? Or do you think it is a fad that will fade once people have more things to do outside of the house, go back to work, etc... Personally, I think this will last, but I am curious to see if enough will stick around to continue to rally the meme stocks, Tesla, new IPOs, etc... and maintain the volatility as a result of this influx of new traders and unique mindsets on trading [link] [comments]  |
| Posted: 04 Dec 2020 07:34 PM PST I read the rules and I know this isn't a news article, but it should incite some responses related to investing. I've been learning and playing with small amounts of money for about 6 months now, so there is a ton to learn still. I'm curious if there is any information regarding historical data that shows a total sum of all realized p&l for firms and the general population each year. As in, is there a historical record of how much money is gained and lost in the market every year? I'm sure this information can be found for specific investment firms, or very easily with the right search, but I did a search and wasn't coming up with anything. Forgive me if this is an ignorant question. Thanks. [link] [comments]  |
| Posted: 04 Dec 2020 07:28 PM PST Hello all, I've been seeing a lot of posts about GME short situation and I can't understand a few things. 1. How can there be more shares shorted than total outstanding shares? 2. Did the shorts not see that the total number of shorted shares is entering a dangerous territory? Why would anyone continue shorting if there are already a ton of shares shorted? 3. How can the shorts come out with a profit given the current situation? Thank you. [link] [comments]  |
| Posted: 04 Dec 2020 04:41 PM PST I recently became very interested in outstanding shares and how the amount of shares can change for a stock over time. During the process, I charted AAPL, AMZN & MSFT for the last 15 years. I included share price, outstanding shares and assets into the charts (links below). All three companies experience exponential growth in their stock price as expected. What I find interesting is that Microsoft's outstanding shares have decreased in a somewhat linear fashion by roughly 30%. For Apple, outstanding shares increased slowly till around the time Steve Jobs died (figures) and then proceeds to decrease linearly for a total reduction of about 30% as well. On the contrary, AMZN has increased shares by 20% over the same period of time! Now i'm curious what it all means?! It's worth noting that AMZN's assets are seeing (what seems to be) exponential growth whereas microsoft is linear and apple when from a linear growth to a slight decrease for the past few years. Is Besos creating that much more of a monster by creating shares consistently along the way so that the company has insane asset growth? Let me know what you think... I just really wanted to start a discussion. I am sure this isn't news to everyone but it was to me and I want to know what others think! Here are links to the stock charts: https://www.profitspi.com/stock/view.aspx?v=stock-chart&uv=223489 https://www.profitspi.com/stock/view.aspx?v=stock-chart&uv=223490&p=MSFT#&&vs=637427250089499814 https://www.profitspi.com/stock/view.aspx?v=stock-chart&uv=223492&p=AMZN#&&vs=637427250301403091 [link] [comments]  |
| VTI shares trading way below value Posted: 04 Dec 2020 03:40 PM PST I have a lot of my money in VTI. When I logged into one of my brokerage accounts today it showed a 16 point drop/loss in VTI. I was confused because VTI (and everything else) was way up today. I then looked at the recent trades and saw 215 shares traded at $175 and not the $191 VTI is currently trading at. What causes this? I typically sell at market so I want to avoid ever selling shares this far below value. Here is a screenshot of what I'm talking about: https://imgur.com/Ao9YQAh [link] [comments]  |
| You are subscribed to email updates from Lose money with friends!. To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
| Google, 1600 Amphitheatre Parkway, Mountain View, CA 94043, United States | |
No comments:
Post a Comment