Daily General Discussion and spitballin thread - July 09, 2021 Investing |
- Daily General Discussion and spitballin thread - July 09, 2021
- Daily Advice Thread - All basic help or advice questions must be posted here.
- I’ve seen several post worries about a market crash- mostly new investors who are worried they bought the top. Here is one way to play a crash for whom it concerns
- Airlines stocks sell now or there are more room to grow?
- JPM q3 guide to the markets
- Hypothetical - interest rates in recession
- Do you think the more money you retire with the riskier your investment can be
- IMF chief sees risk of sustained rise in U.S. inflation
- Thoughts on trimming positions?
- Investors and fans of videogaming: Can this work?
- Bought into stock over a year ago and have gains in that--but losses from the same stock bought in February, selling strategy?
- People say that they live on the stock dividends and don't touch the principal--- really?
| Daily General Discussion and spitballin thread - July 09, 2021 Posted: 09 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:
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. [link] [comments]  |
| Daily Advice Thread - All basic help or advice questions must be posted here. Posted: 09 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:
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}} [link] [comments]  |
| Posted: 08 Jul 2021 05:56 PM PDT 1 almost all the time people are predicting the next crash 2 know what your investing in~preferably a company you know and use that is steadily showing an increase in cash flow ~ a solid company then how the market moves shouldn't matter. The price of the stock shouldn't even matter. You own a part of a great company. 3 use the power of DCA ( dollar cost averaging) with this strategy you buy consistently every week - month - or day. This will minimize the effect of volatility on your portfolio. 4 DIVIDENDS. often good established companies will pay you a portion of their profits. By reinvesting these you can grow your share count. Using ETFs like SCHD or JEPI create cash flow in your portfolio quarterly and monthly. When The market begins to fall you are all ready accumulating more shares at discount prices. These newly acquired shares will also pay you dividends creating a snowball effect. 5 if you can add more than your dca purchases then save it as a cash or bond position In your portfolio. This will allow you to go on a spending spree when the market crashes to buy more of your shares you picked out in (see "2"). 6 recent US history 1973+ has shown that during market turn downs the fed will try and create an artificial floor under the market. You can benefit from this buy purchasing gold and silver or mining companies. This always works as an inflation play. Ray Dalio suggest to keep ~7% in precious metals. Another inflation play would be commodities such as oil or oil companies or lumber etc…. 7 I do not suggest buying or using these. OPTIONS. You can sell calls or buy puts when expecting crashes. If I had to chose one I would sell COVERED calls and re buy them when the stock drops for a lower premium and reinvest the difference. With put options I think the risk is greater. I won't go into detail here on what options are. Thanks for reading and as always happy investing let's meet our goals. [link] [comments]  |
| Airlines stocks sell now or there are more room to grow? Posted: 08 Jul 2021 12:51 PM PDT I currently have 4 Airline stocks, that I bought a while ago that I'm currently up about 30-35%. But I wonder if I should take the profit now or continue to hold them long term? For example, in the last month UAL is down 14%. With the Delta variant I am concerned about the airline stocks, BUT it is only July, and July/August should be good travel months, and then we get into the holidays. What do you recommend? [link] [comments]  |
| Posted: 09 Jul 2021 03:53 AM PDT Hey all, this is a short post because it's mostly pictures - but because of the influx of new people I figured it would be nice to post the JPM guide to markets. This is mostly a huge collection of charts and graphs illustrating trends and changes in market dynamics such as growth vs value, valuation levels, sector rotation, style performance, etc. They release these quarterly, along with annual guides to retirement and long term market expectations. https://am.jpmorgan.com/us/en/asset-management/adv/insights/market-insights/guide-to-the-markets/ FYI you can sign up for JPM to send this straight to your inbox on the website as well. [link] [comments]  |
| Hypothetical - interest rates in recession Posted: 08 Jul 2021 11:27 AM PDT Hi, I have been trying to understand what would happen if the economy is gone into a recession? Looking at the 2008 records Bank of England dropped from 5% to 0.5% by end of 2009 and now it is 0.1%. Are we looking at potentially -3-4% rates? I find it a bit mind numbing as inflation is on the rise and loads of talks about a possible 'crash'. But if the no 1 solution for recession is lowering the interest rates, how could it be applied in current already zero-ish environment. Inflation is going to reduce value of money and on top we would give banks money to keep our money…cant see that helping anything! Needless to say, i am only talking about text book type idealised scenarios. I do appreciate the complexity of the finance world and its unpredictable nature. Thanks in advance. [link] [comments]  |
| Do you think the more money you retire with the riskier your investment can be Posted: 08 Jul 2021 07:18 PM PDT So for example: If I retire with 1.2 million dollars when I'm 40 I would put all of my money to VOO I would withdraw 3% per annum. But if I retire with 2.5 million dollars when I'm 40 I can put all of my money to ARKK and I will withdraw 1.5% per annum. In other words I can stomach (not run out of money until I die) large drawdowns better if I have more during retirement. Do you think this idea is correct? [link] [comments]  |
| IMF chief sees risk of sustained rise in U.S. inflation Posted: 08 Jul 2021 10:54 PM PDT https://www.reuters.com/business/imf-chief-sees-risk-sustained-rise-us-inflation-2021-07-07/ WASHINGTON, July 7 (Reuters) - The International Monetary Fund on Wednesday said further fiscal support in the United States could fuel inflationary pressures and warned that the risk of a sustained rise in prices could require raising interest rates earlier-than-expected. Higher U.S. interest rates, in turn, could lead to a sharp tightening of global financial conditions and significant capital outflows from emerging and developing economies, IMF Managing Director Kristalina Georgieva said in a blog published Wednesday with the IMF's surveillance note for G20 countries. The IMF's assessment of U.S. inflation risks comes amid sharp criticism by Republican lawmakers of President Joe Biden's multi-trillion-dollar plans to boost spending on infrastructure, child care, community college tuition and expanded coverage of home care for the elderly and disabled. Georgieva said an accelerated recovery from the COVID-19 pandemic in the United States, where growth is seen reaching 7% in 2021, would benefit many countries through increased trade, but rising inflation could be more sustained than expected. The IMF forecasts global growth of 6%. Other countries face rising commodity and food prices, which are now at their highest level since 2014, putting millions of people at risk of food insecurity, the IMF said in its report. Market expectations suggested commodity prices would remain contained over the next few years, but inflation developments varied within advanced economies and were picking up more rapidly in Britain, the United States and the euro area, while remaining subdued in others, like Japan. The IMF said the global economic outlook remained uncertain given questions about the evolution of the pandemic and progress on vaccinations, as well as the possibility that the pickup in inflation would prove "more persistent" than expected. "While further fiscal support in some major advanced economies, including the United States, would benefit growth more broadly, it could also further fuel inflationary pressures," the IMF said. A more sustained increase in prices could necessitate earlier-than-expected tightening of U.S. monetary policy, which could hit emerging and developing economies particularly hard, widening the divergence in recovery prospects. Georgieva repeated her call for urgent action by the G20 countries to accelerate vaccinations to high-risk populations, warning of a "worsening two-track recovery" that is leaving a large number of countries behind while the United States, China, the euro area and a few others are recovering quickly. Acting quickly could save more than half a million lives in the next six months alone, she said. The IMF was working with the World Bank and other institutions to move forward on its $50 billion plan to end the pandemic, she said, arguing that quicker progress could result in trillions of dollars of added global economic output. The IMF urged countries to continue accommodative monetary policies, while closely monitoring inflation and financial stability risks. In countries where the recovery was accelerating, such as the United States, it would be "essential" to avoid overreacting to transitory increases in inflation, Georgieva said. [link] [comments]  |
| Thoughts on trimming positions? Posted: 08 Jul 2021 10:11 AM PDT Hey all, I've been investing for a few years, and am by no means an expert but wanted to get some opinions on trimming positions once a stock has gone on a pretty nice run. For e.g. I bought Apple when it had dipped a lot back in March and have seen a very steady rise over the past few months. I am sitting at about an 18% gain on my Apple position and am wondering if it would be prudent to trim my positions to take some profits now? I also do not need the money right now at all, so I am wondering if given this, is trimming any position always a good idea once that particular stock has gone on a nice little run. The only advantage I can think of trimming is taking those profits and investing them in something else, while still holding onto Apple. Although, I can't think of many more companies I have more faith in than Apple right now and still think it will climb higher. Thanks in advance for you're opinions! [link] [comments]  |
| Investors and fans of videogaming: Can this work? Posted: 08 Jul 2021 06:13 PM PDT Hey just to preface, I understand that this post might be more appealing to fans of SEGA or video-gaming in general, but since it is about investing in the company, it should be appropriate to post here also, right? ---- So I was thinking that since SegaSammy (who I think runs SEGA now) issues common stock, their shares would be considered voting shares right? If this is the case then you should be able to vote on the following:
Generally a single individual would need a boat load of shares to even affect decision-making of any kind. However, what if a boat load of small-time investors banded together as a group and made decisions as a single entity? Where am I going with this? Well I happened upon this thread, https://www.reddit.com/r/SEGA/comments/od2sfo/i_miss_when_sega_had_freedom/?utm_source=share&utm_medium=web2x&context=3. It confirms that I am not the only person out there who is unhappy with where SEGA is these days (or really has been for decades). So is something like what I have suggested possible? My understanding of all of this might be quixotic, but I figure that unless I put it out there and generate a good discussion and get feedback from people more knowledgeable than me, I won't know why. [link] [comments]  |
| Posted: 08 Jul 2021 01:26 PM PDT Wasn't sure how to search for this so here we go:
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| People say that they live on the stock dividends and don't touch the principal--- really? Posted: 09 Jul 2021 03:01 AM PDT On nearly every investment board on the Internet are tons of people who swear that they have the perfect plan for a guaranteed funded retirement. Here is their foolproof plan: They live on the stock dividends and don't touch the principal. Is this genius or just ill-informed? I vote ill-informed because if you spend the dividends paid by the stock investments you are in fact spending the principal. People assume that stock dividends are like bank interest where you are getting extra money every month/quarter above and beyond the value of your portfolio. This is wrong! Stock dividends are not like getting bank account interest. When a dividend is paid, the cash paid to each shareholder is deducted from the cash held by the company. This reduces the book value of the company when it pays you a dividend. Therefore, the value of the company is reduced every time it pays a dividend. In addition, when a dividend is paid, the stock price of the company is automatically adjusted by the stock market by the amount of the dividend. Therefore, in our example, if the company pays a $1.00/share dividend, then the stock price would automatically adjust from $100/share to $99/share after the dividend is paid. The same would drop would occur in the book value of the company. So when you withdraw the dividend payment from your account and spend it, the value of your portfolio is down the same as if you did a scheduled withdrawal of the same percentage as the dividend payment. Check this out for more information: [link] [comments]  |
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