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    Daily General Discussion and spitballin thread - July 04, 2021 Investing

    Daily General Discussion and spitballin thread - July 04, 2021 Investing


    Daily General Discussion and spitballin thread - July 04, 2021

    Posted: 04 Jul 2021 02:01 AM PDT

    Have a general question? Want to offer some commentary on markets? Maybe you would just like to throw out a neat fact that doesn't warrant a self post? Feel free to post here!

    This thread is for:

    • General questions
    • Your personal commentary on markets
    • Opinion gathering on a given stock
    • Non advice beginner questions

    Keep in mind that this subreddit, and this thread, is not an appropriate venue for questions that should be directed towards your broker's customer support or google.

    If you would like to ask a question about your personal situation or if you are asking for advice please keep these posts in the daily advice thread as that thread is more well suited for those questions.

    Any posts that should be comments in this thread will likely be removed.

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

    Posted: 04 Jul 2021 02:00 AM PDT

    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 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!

    {{date %B %d, %Y}}

    submitted by /u/AutoModerator
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    Update to my post 5 years ago of investing all my savings into one stock, you were all right, it was a bad decision.

    Posted: 03 Jul 2021 01:41 PM PDT

    5 years ago I posted this (forgot account credentials).

    https://www.reddit.com/r/investing/comments/3rb09d/i_investing_my_life_savings_into_one_stock/

    I purchased $50,000 of El Pollo Loco after it fell from it's IPO, hoping to make a return of at least $200,000 over 5 years.

    What actually happened is that the stock went sideways for 4 years, and only recent started rising. Now my holdings are worth roughly $80,000 and I am only up a total of approximately $30,000 (60%).

    Had I invested into a market index such as SPY, I would have more than doubled my money, turning my $50,000 into a little over $100,000. There also would have been significantly less risk.

    Needless to say, I have sold my holdings and reinvested into broad ETFs.

    submitted by /u/Pete26l96
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    Just hit over 10k investments in Roth IRA!!!

    Posted: 03 Jul 2021 08:46 PM PDT

    Just hit over 10k in my Roth IRA!!! I'm only 22!!! Have close to 15k saved too!!!! Next goal is get to 20k in both my Roth IRA and my savings!!!!!! Doing so good at my age and I'm really proud of where my finances stand:)!! Don't let anything stand in your ways guys, if you put the hard work in and save nearly every penny and dicepline yourself you can achieve anything you want!!!! This year alone I'm up 36% so far! I'm really proud of where it stands right now and I am beyond ready for the next milestone!! It may not sound like a big total to anyone else but for only being 22 and have thAt much between 2 accounts is just crazy and in the last year alone I've buckled down and just kept storing money, picked up a side hustle (doordash) and just kept saving money!!!! Ive worked a lot lol! And it's just real nice to see the goal become a reality!!! Beyond ready for the next goals and ready to keep putting in more work to reach them!

    For anyone reading this looking to set financial goals, and is even younger than me or any age in fact, don't let that stop you, find what works for you and just keep working towards it, step by step you'll slowly reach it and it'll eventually come and it's a really good feeling when you meet it! Everyone keep workin hard at your goals! You'll meet them! Just like I did!!!!

    submitted by /u/at235
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    How much time should I spend learning/researching before putting money in stocks?

    Posted: 03 Jul 2021 12:08 PM PDT

    I recently turned 18 years old, which means I can start investing! However, before spending a single penny, I want to know how long I should research for. What should I know? I have already spent a week reading books, articles, and watching YT videos; hell, I even made my first (paper) trade on TOS. I know it's different for everyone, and there is no official checklist of what to read/learn first, but what are the prerequisites-- In other words, what will I need to know before I jump the gun? Technical analysis? Types of stocks? FYI, I already made an account with TOS.

    submitted by /u/boltropeoakum
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    how long does it take for the market to react to interest rate changes when they're expected well in advance as they are now?

    Posted: 03 Jul 2021 10:22 PM PDT

    Its pretty clear from the recent moves that the market has moved back into risk on mode, which is interesting because its also pretty clear that the market absorbed the FOMC meeting last week w/ hardly much to the downside. That kinda signals to me that really the big investors arent too concerned with interest rates rising, because they have already priced it into their models, as opposed to inflation which was not priced in, hence the past two months correction to risky growth stocks.

    With all that said, I still cant imagine that an FOMC meeting will occur where the FED announces interest rate increases and the market doesnt fall at all

    For those who have been in the market longer than me, can you remember a time where we were at ATH's and an FOMC announcement of fed funds rate hikes did NOT cause a fall? Furthermore, if there always was a fall, is there usually a number of days prior to the FOMC meetings that the selloffs begin, or do people ride that risk right into the announcement itself?

    Im not one to believe in timing the markets, but sometimes things are a bit too obvious about what will spur a downside catalyst. We've already expended the inflation fears, biden+congress most likely intend to announce even more spending right into elections, and covid fears are abating + recovery is decent with still lots of home purchases. There's not much else out there to act as a catalyst for a blown off top

    it must be tapering or interest rates, and so that relies on the FOMC announcements and the fed president press releases

    submitted by /u/xxx69harambe69xxx
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    Why dont more people buy synthetic longs? Is there something I'm missing?

    Posted: 03 Jul 2021 10:07 PM PDT

    (A synthetic long is where you buy a call and sell a put at the same strike price, often close to the underlying price)

    Often when you use a synthetic long, the actual debit is small compared to the price of the call by itself. In some cases the difference is enough between the long call and the short put that I get even a small credit.

    If you're bullish the gains you get are basically free....since your actual premium was so low. And if there's a really strong bullish rally you can buy the short put back for pennies. I've seen this happen a few times with TSLA and AMC synthetic longs. After I buy the put back: my out of pocket cost is extremely small....I can let the remaining long run with little consequence.

    This strategy is even more awesome for LEEP options: as all you really pay is the difference between the short put and long call. If there's a stock you're long term bullish on: buy a synthetic long Leep spread. When a rally happens, buyout the put and you got a cheap LEEP. And because you bought a leep spread: it's unlikely the short put would get executed early (but of course can happen), as the put buyer's breakeven needs much larger losses than a weekly put.

    Can someone tell me what I'm missing? Yes it ties up collateral (on most platforms since you can't sell naked puts), but the risk looks very favorable compared to just going long on a stock.

    submitted by /u/Panzercannon03
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    Preparing your portfolio for stagflation/debt crisis

    Posted: 03 Jul 2021 08:31 PM PDT

    I've been reading a number of articles that detail a number of worrying trends in the global economy. One example would be Nouriel Roubini's article in the Guardian from a few days ago where he writes that "conditions are ripe for repeat of 1970s stagflation and 2008 debt crisis". I don't want to debate whether this is going to happen and I don't want to talk about "what happens if the market crashes" like gets posted here every few days. I was hoping to have a discussion about how I/we should manage our investment portfolios - specifically stocks - if this comes to pass. Should I be focused on high growth tech companies? Dividend aristocrats? Gold? Consumer staples? Accumulate cash? Transition to bonds? Just not sure what the right position to take would be and I'm particularly interested in hearing from anyone who made money DURING a financial/debt crisis and not afterward (held during the dip).

    submitted by /u/chickenfriedsandwich
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    What explains the difference between index fund returns and the gain of the index it is tracking?

    Posted: 03 Jul 2021 11:07 AM PDT

    The S&P 500 is up 15.87% YTD and 39.05% YOY, but FXAIX, or Fidelity's S&P 500 index fund, is up 16.74% YTD and 41.22% YOY. What accounts for the difference? Shouldn't these passively managed funds just buy shares of the S&P 500 components in proportions equal to what they are weighted by the index?

    The only thing I could think of is that these funds are reinvesting dividends, but a) I would expect that return to be much larger than the index over time and b) though the funds outpace the index YTD and YOY, they have been known to lag behind the index on any given trading day.

    What gives?

    submitted by /u/anti_ff7r
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    The Bear Case for Summer: A crash in the next 4-8 weeks?

    Posted: 03 Jul 2021 01:36 PM PDT

    Hello everyone. I present a bear case for the summer. I have previously posted this on /r/stocks a few days ago and would be interested to see if there are any differences in how people respond to it here.

    I would be particularly interested to hear any views from people with a background in: commodities, real estate, bonds, SME/small businesses, professionals in specific sectors, about what they think will happen in their markets if events do or don't play out as I discuss here.

    Disclosure: I was about 90% long in the stockmarket until mid-June, now I have no positions long or short.

    To save a lot of wasted time: 'stopped clock', 'permabears', 'wall of worry', 'so many posts about crashes these days'. Sure. Let's be clear that I'm not arguing that we deserve a random valuation-driven crash taking place some day in the style of Greenspan's 'irrational exhuberance' speech (we probably do deserve that, but I'm not arguing it here).

    I'm talking about either a) an event-driven crash with a specific cause within a short, specific timeframe, against a backdrop of high valuations (like March 2020) OR b) a longer valuation-driven crash being initiated/catalysed by the aforementioned specific event-driven crash (like the GFC was catalysed by events like e.g. credit market locking up, bear stearns/lehman brothers failures etc).

    Thank you for your patience and interest, please enjoy the read and share your thoughts below.


    The Bear Case for Summer: A crash in the next 4-8 weeks?

    I've noticed people beginning to think about the risk of an imminent crash lately on various finance and, uhh, stock-gambling subreddits. What stocks to buy in case there's a crash? Where is safe in a crash? That sort of thing. Take a look around, do some searches for 'crash' or 'bubble', you'll see it. A change in the mood. I track about 10+ finance forums every day, and I keep seeing it coming up every single day on daily threads and topic posts.

    Of course, there are always people worrying about downside, the risks, and there are always people yelling the market is about to crash, perma-bears etc. "Scared money don't make money", and a stopped clock is right twice a day. Why might this time be different?

    The backdrop

    The market is presently doing well following the idea of the 're-opening play' in addition to the free money fountain of central bank programs and government fiscal stimulus. However, I think the delta strain is going to prevent re-openings lasting more than a few weeks, and I think sentiment is going to turn sharply on that.

    Delta can often break past vaccines, unfortunately, and it spreads like absolute wildfire among the unvaccinated. Regardless, the EU and USA are opening up anyway! Given the R0 of 6 of delta, we should see very rapid spread when mask mandates, lockdown restrictions are removed, and people are socialising like crazy in the Summer of Hedonism.

    I would expect by end July to mid-August, delta will be causing very big problems pretty much everywhere in the world; it's established and spreading in 80+ countries already. Other strains are also a problem and we may see new variants of delta or entirely new strains showing up in the next 2-3 months.

    Do you think delta is the most deadly or infectious variant of covid we'll ever see?

    Consider: it's already about 2.5x faster spreading, more infectious in younger adults, more likely to cause symptomatic disease, new symptoms that can cause it to be misidentified, it has reduced the protectiveness of vaccines noticeably. If you look at the death/infections rate in covid-naive unvaccinated populations like Taiwan, it's potentially a lot more lethal too. That's how much covid 'improved' itself in the 12 months that constituted the bulk of its spread so far, and right now it's spreading (and getting lottery tickets to improve itself) in more people than ever.

    If it's not rapidly eliminated and has another 12 months to circulate, mutate, and continue getting stronger and work around vaccine antibodies, how bad might it become? Are state & national governments in the EU & US & Japan etc taking actions that would eliminate covid before it gets any stronger, or taking actions that will likely allow it to continue to spread and develop?

    The Bear Case

    My key argument: Central bank and government stimulus programs were timed and globally synchronised on the assumption of the re-opening play throughout this summer. Taxpayer funds and central bank willingness/effectiveness may be exhausted should this continue another year - or two. Does anyone think life around the world will be back to 'business as usual' by the end of summer? Or will it be still 'the end of the beginning' as delta begins to reach the people that alpha failed to reach? The liquidity trap for central banks is also a real concern as printing continues and rates stay close to zero, added to uncertainty about the security of income in many sectors.

    The number of doses of vaccine given worldwide is about 2 billion. The number of doses required to fully vaccinate the world just once is about 16 billion. Will covid continue to circulate and improve? What about new animal strains (remember the mink in Denmark?). What will happen to the stockmarkets and consumer demand in emerging markets with low levels of vaccination?

    Even if covid magically disappeared overnight in the developed world - and it won't - how can the US & EU stockmarkets do well if most of the world is still being ruined by covid and new dangerous strains continue to emerge?

    Now consider: A CAPE10 PER of 38? - 38! good lord! (https://www.multpl.com/shiller-pe) - Government debts globally hitting dangerously high levels vs GDP in most developed countries? A struggling global supply chain? Stalled, chaotic re-opening plans? This re-opening can't afford to fail, but as delta arrives perfectly timed with summer re-openings and incomplete vaccination, how can it succeed?

    The world is already struggling where delta is well established this month. https://www.worldometers.info/coronavirus/weekly-trends/#weekly_table . Some countries where delta is well established already: Russia, Indonesia, Bangladesh. Some countries with highly successful vaccination programs: United Kingdom, Israel, Seychelles. Sort by 'weekly case change' or 'weekly death change', ignore the small countries. Those are 'weekly' figures. Extrapolate out 6-8 weeks.

    For discussion: What do you think is going to happen here? How do you think governments will respond? How do you think the market will respond?

    Other examples

    Consider: Taiwan, Australia, Vietnam, China, New Zealand, were successful in holding back covid for 15 months. But delta sneaked past all their defenses. Now they are engaged in various levels of restrictions to try and stop it. If they can't keep it under control, how are countries with low rates of vaccination and limited/nonexistent restrictions ever going to manage?

    And then we get into the economic costs of continuing to push hard on burned out healthcare systems, the economic costs of long covid, the economic costs of permanent damage to economies (businesses that went bust and won't ever re-open - hospitality, tourism etc). A lot of businesses can survive a bad year. But it's been 18 months now struggling like this. How many of these businesses can survive 2, maybe 3 terrible years? How much of the economy can we afford to lose before we have a really serious crisis on our hands or permanent economic damage?

    Too much like feb 2020

    To me the whole situation today rhymes far too much with the sentiment and backdrop in February 2020. A deadly strain spreading. Market hitting new highs. Too many big countries not taking it seriously, Asia & ANZ making a serious desperate attempt to stop it spiralling out of control.

    The main difference with the February 2020 scenario? We're starting from a far, far, far higher point of stockmarket valuation (the SP500 is not just 'expensive', it's at the 2nd highest point of valuation ever, per CAPE10, and the highest ever in terms of broker margin, buffett ratio).

    The investor backdrop is bubbling hyper-bullish sentiment and outright gambling on most forums, manias and pump/dumps erupting multiple times a day, and bearly [!] an inkling of bearishness. Yet we're going forward from here with companies AND consumers AND governments AND central banks that have taken a balance-sheet beating for the last 15 months. We're looking at a far more deadly strain of disease that spreads faster, hits harder. We're looking at governments that have already burned out the political support and willingness-to-suffer of their populations.

    This is not a recipe for success. This is a recipe for March 2020... on steroids.

    Some counter-arguments against my case

    "The vaccines are effective and will bring covid to a halt".

    By definition, disease with a natural R>3 will continue to circulate even if vaccines are 66% effective against infection and 100% of the population is fully vaccinated. Contrast: The R of delta is around 6, the effectiveness of one of the best vaccines (AZN) is around 60%, and barely a handful of countries will have fully-vaccinated rates above 50% by the end of summer.

    "Well, OK, vaccines won't stop it, but they will stop people dying of it. That's what matters. We don't lockdown for 20000 flu deaths/year."

    What we are seeing from delta is that AZN & PFE/MDNA vaccines are extremely effective at preventing death generally, though less so in older people or immunocompromised people. I have read that a fully vaccinated 80 y/o has about the same chances vs covid as an unvaccinated 50 y/o, but I don't have the source to hand right now; sounds about right though.

    Vaccines aren't nearly so effective at stopping someone spreading covid to vulnerable members of their family. While vaccines have a wonderful effect in reducing hospitalisations too, delta hits hard and spreads fast, so hospitals are already beginning to get quite busy again as a result. The problem is that this means regular hospital operation is going to be affected. If you have a hospital full of ultra-hyper-contagious-but-not-deadly plague, you can't be doing regular surgeries etc. So people will unfortunately die from that, from delayed surgeries etc, specialities on hold to help out in the covid wards. Flu has an R around 1.5 and it slams the hospital system hard every year. An ongoing (and worsening into the end of the year) slamming of the hospital system with a mostly-non-lethal-but-still-needs-oxygen/vent disease, that spreads between wards with an R of 6, that is a different matter. There's also the issue that e.g. teachers, retail, dentists, doctors, hospital staff are simply exhausted and emotionally burned out from dealing with this. The systems are under a huge amount of pressure as it is even today. It isn't realistic to expect governments to keep saying 'tough shit', all the public 'ignoring' covid all around, while these sectors crumble under the pressure.

    "Regardless of whether it spreads, or whether people are dying, no matter how bad it gets, governments will simply not lock down again. End of story."

    We saw in Sweden last year that if governments fail to enact a lockdown, a large part of the public will do it themselves anyway. And many businesses cannot operate at full productivity if workers keep falling ill and ending up long-term sick or in hospital, even if those workers remain alive. Many businesses cannot profitably operate on 30-50% custom. Ultimately, democratic governments cannot force you to go out and get slammed by a deadly plague providing you have enough money in the bank to avoid it. The retail & hospitality economy will not prosper if the only people out shopping/eating/holidaying are those unable to afford the luxury of hiding at home from a massive covid outbreak.

    https://www.reuters.com/article/health-coronavirus-sweden-retail-idUSL5N2BX1EK

    Random things

    Remember, whether it's 1987 or 2020, you don't get a warning before the rug gets pulled from under your feet. A trip down memory lane. https://pbs.twimg.com/media/ES4uVEcXsAEqZkT?format=jpg&name=4096x4096 . https://www.bbc.co.uk/news/business-51829852 . Not that long ago, really?

    Also - "Be Fearful When Others Are Greedy", the sage wrote. But what does greedy look like? Does it look like 'my stock is worth $1m/share'? No. Greedy looks like this: smart, sensible, sane people saying things like 'well OK, sure this market seems pretty weird, idiots being stupid, but the music's still playing, and I think there's still time to skim a quick 5-10% and get out before it all falls apart. There will be a bit of warning before shit hits the fan; I'll run for the exit when I see it'.

    The steamroller has arrived, it is right there, towering over them, but still their eyes are on the pennies on the ground, even though they know they ought to know better. But it hasn't started squishing ... yet. Then the moment arrives, and the door for everyone to get out is... so very narrow. Painfully mixed metaphors but you see my point.

    Finally

    Some further material for thought: https://www.gmo.com/europe/research-library/waiting-for-the-last-dance/

    A closing note: every day, the next major stockmarket crash always gets one day closer. It's like the theta decay on a long-dated option whose expiry date is a secret. Hardly there at all for months or years, the signal lost in the noise, then suddenly, it arrives, it's the day, and everything is gone at once.

    Stay safe everyone, get your vaccines, and don't catch the plague. The zero-th rule of making money is: be alive to enjoy it.

    p.s. Please don't downvote this simply because you are currently long in the market / feeling bullish and don't like seeing bearish sentiment. I would very much welcome thoughtful & evidence-based criticism of what I'm presenting here. I would love to be wrong about this.

    submitted by /u/bananacakesjoy
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    [Resource] Explore Aswatch Damodaran's site which hosts comparable industry data

    Posted: 03 Jul 2021 08:58 PM PDT

    I was looking for some industry data for ~deep~ value investigation. So, I found this -

    EV/EBITDA by Industry

    PEs by Industry

    He talks about this here> http://people.stern.nyu.edu/adamodar/New_Home_Page/data.html

    And the website index is here> http://people.stern.nyu.edu/adamodar/New_Home_Page/data.html

    Hope you find it useful. And do share if you have any other resources like this.

    submitted by /u/anyfactor
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    I took a margin loan. What is the max drawdown that I can get before I get margin called?

    Posted: 04 Jul 2021 01:00 AM PDT

    Can anyone help me out calculating this? I have 11k in well-diversified ETFs and my broker allows me to borrow another 11k with margin. I used 4k of that margin (with 7k of available margin left) making my portfolio to a total of 15k (so 1.35x leverage).

    What is the max drawdown my portfolio can suffer in case of a market crash so that I get margin called? I cannot understand the correct math behind this.

    Edit: I'm using Degiro as my broker with a Trader profile account

    submitted by /u/crossholo
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    trying to understand LEAPS investing

    Posted: 03 Jul 2021 02:43 PM PDT

    So I've been watching a bunch of youtube videos about options and see this LEAPS strategy that looks interesting. But I'm still a bit confused how it works.

    I'll use ARKF as a reference. currently trading at $53.32

    So my understanding of the strategy is you look for a price way out in the future. I'm currently looking at dec 17 2021. So with a call option, I guess it makes sense to find a price lower than 53.32.

    So if I have strike prices between 25-50, i find the corresponding Ask price and multiply by 100 and thats what I'd pay for the option?

    so a $25 SP has an ask at 28.80 and 50SP has ask of 6.90.

    So I pay between $2880 and $690 and get 100 shares of Arkf?

    But then what? Do I just wait till Dec 17, and hope it doesnt drop below $25. Or am I hoping it exceeds $25-$50?

    When that date comes and I'm still holding, that just means I purchase the stocks at the $25-$50 price I correct?

    Does this mean I can't sell until Dec 17th? if say the stock goes to $80?

    I'm just confused when and how I gain my profits. Or what would create a loss.

    I'm using the chart on Fidelity but I'm not sure what open INT or imp vol is yet, but I'm still learning.

    submitted by /u/jcc5018
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    Fund tracking from buy date... Possible?

    Posted: 03 Jul 2021 08:13 PM PDT

    I am looking for a utility that will allow me to see the effective rate of return from a specific date.

    Example, I bought into a fund on 8/1/19 and want to know the rate of return to date, preferably in relatively real time.

    I would think this would be a pretty common feature, but the most common trackers that I have found do not seem to have this; only 5 year, 1 year, YTD etc.

    Anyone know of an app or site that makes this easy?

    submitted by /u/Quartersawn5
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    Best investment options for me?

    Posted: 03 Jul 2021 11:31 PM PDT

    I thought I could start contributing to my 2022 Roth IRA account since 2022 came up as a drop-down item, but apparently, that's not the case. As a result, I'm really not sure what I should do with extra money right now (as I don't have a desire to put more into my 401k).

    Should I:

    1. Hold on to those funds until 1/1/2022 and then put them in the market in a lump sum?
    2. Invest the money I have now into an ETF in a non-retirement account, either in a lump sum or aggressively in periods for the next few months? (I have an E-Trade and Robinhood account with some stocks that I plan to hold on to long-term while others I bought "for fun"/to play around with.)
    3. Open a 529 account for myself? I plan to go to graduate school in a few years. My small hesitancy with this is that I'm eligible for tuition reimbursement at my company (which comes out to cover one graduate class per semester minus taxes) for part-time programs, but the main programs I'm interested in are full-time. If I somehow do end up doing a part-time program, I'm not sure if a 529 account would allow me to cover the taxes I have to pay, but again, I'm more interested in the full-time programs anyway.
    submitted by /u/Useful_Cheesecake673
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    Equal Weight ETFs - what's the point?

    Posted: 03 Jul 2021 11:49 AM PDT

    I was recommended the Goldman Sachs Large Cap Equal Weight ETF (GSEW). I have a large portion of funds in vanguard overall indexes. So what is to gain by buying $GSEW? I already have diversification from the indexes.

    Does it help to systematically invest in undervalued sectors? (I'm not very balanced for the rest of the account) Save an account from overall market meltdowns when one sector goes under (e.g., tech stocks in 2001)?

    submitted by /u/WafflingToast
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    Does anyone know of hands on training tools for learning investing concepts?

    Posted: 03 Jul 2021 04:56 PM PDT

    Other than videos or reading books/ articles, does anyone know if there are any "try it" type programs to help teach various trading concepts such as options, margins, or just general trading?

    In programming, sites such as w3schools has that "try it out" section that allows you to play with what they just taught. Paper trading from my understanding would just be using real time data and doing what-ifs. But a tutorial may have fake data and could create and test for things to look for in finding a good investment or implementing a strategy.

    Not sure if something like this exists yet. But if not, I may need to post this idea over in startups.

    submitted by /u/jcc5018
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    Market Sentiment: 7/2 Trade, Invest, Sell

    Posted: 03 Jul 2021 04:21 PM PDT

    Alright folks, there was some positive feedback/traction around this little game last week, so let's try it again!

    My picks for this week are: Trade - $MSFT, low relative volatility for options.

    Invest - $JD, strong financial and metric growth amidst granny capital investment in building out an extensive logistics network. *NOTE: I'm expecting CN relations to be a short term headwind with long term upside.

    Sell - $T, too big, comfortable, and sloppy with their investments to do more than milk the dividend.

    What are your picks?

    *Note: I have a long JD position.

    submitted by /u/Tonloc56
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    Industry Multiples - best source?

    Posted: 03 Jul 2021 07:13 AM PDT

    I came across this article on Equidam setting out industry multiples based on 2019 data. It used data produced by a Professor Damodaran at New York University. It seems an okay resource but does this look sensible to you? Are there any other good non-paywall/subscriber databases that display this information? Particularly looking at data over trailing periods to give better long-term averages. Worth noting that I'm happy to use pre-COVID data for snapshots to calculate valuation projections at this point given that the last 18 months have created exceptional valuations which might distort such snapshots.

    Additionally, I am working to create a simple mapping of these industries onto the GICS Sectors. I've looked around online but official mappings are not readily available due to these being produced by private companies. Let me know if such a map would be of interest and I can consider posting it.

    submitted by /u/AnInvestmentsDude
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    IVV + IXUS vs ACWI? VNQ + VNQI vs REET?

    Posted: 03 Jul 2021 12:18 PM PDT

    I'm studying to start investing only in ETFs to simplify my investments, and now I'm having a doubt about which is the better way to invest into stocks and REITs:

    Way A

    • 100% in one Global ETF; (ACWI / REET)

    Way B

    • 50% in one US ETF; (IVV / VNQ)

    • 50% in one non-US ETF; (IXUS / VNQI)

    What're your thought about it? Fell free to suggest another ETFs with the same strategies.

    Investing in only one ETF for stock and one stock for REIT would be simpler overall, but would having less holding diversifcation.

    PS1: 5 years comparision for IVV, IXUS and ACWI and VNQ, VNQI and REET:

    https://www.google.com/finance/quote/IXUS:NASDAQ?window=5Y&comparison=NYSEARCA%3AIVV%2CNASDAQ%3AACWI

    https://www.google.com/finance/quote/REET:NYSEARCA?comparison=NYSEARCA%3AVNQ%2CNASDAQ%3AVNQI&window=5Y

    PS: Sorry for any misspelling, English is not my native language.

    submitted by /u/JP_Oliveira
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