Daily General Discussion and spitballin thread - September 16, 2021 Investing |
- Daily General Discussion and spitballin thread - September 16, 2021
- Daily Advice Thread - All basic help or advice questions must be posted here. September 16, 2021
- The "Lose money with friends" Motto
- Lesser-known stocks that supply popular industries
- What are some of your favorite duopolies?
- Is there any point in investing in anything else than S&P500 + my country index?
- Anybody have any experience with an SBLOC (Securities-Backed Line of Credit)?
- Theoretical question about the benefits of using Smartlands vs. traditional refinancing.
- SEC Gives Whistle-Blower $110 Million in Payout
- How do you know when to get out of a stock position with a gain?
- Real yields are on record lows - where are you earning interest?
- Future options far out. Question? Quicker money?
| Daily General Discussion and spitballin thread - September 16, 2021 Posted: 16 Sep 2021 02:02 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. September 16, 2021 Posted: 16 Sep 2021 02:01 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! [link] [comments]  |
| The "Lose money with friends" Motto Posted: 15 Sep 2021 12:00 PM PDT Some of you may remember that today is the anniversary of the Lehman Brothers bankruptcy which occurred on September 15, 2008. The bankruptcy is the largest in US history and triggered a 4% one day drop of the DJIA. Many of you may be aware that this subreddit started in March 2008 with the motto "What to invest in? What to avoid?" . The tag line was changed to "Lose money with friends" at some point afterwards. We keep the tag line "Lose money with friends" as a reminder that the capital markets carry risks. A few of the mods were discussing if perhaps we should consider changing our motto to something a bit more uplifting. We are soliciting ideas for the next remainder of the week and then this thread will get locked. Please keep suggestions consistent with the spirit of r/investing and there are no promises that the motto will change. [link] [comments]  |
| Lesser-known stocks that supply popular industries Posted: 15 Sep 2021 09:34 PM PDT We see a lot of hype around popular industries like genomics, semiconductors, or cars, and often these hyped-up stocks end up becoming scarily overvalued. Another way to invest in growing and hyped-up industries is to invest into companies that produce the supplies for these industries, rather than the big-names at the face of it. Not to mention, you're more likely to win if you invest in a supplier versus one of the many small cap companies looking to get in on the next big thing. In some industries, like electric cars, the hype has already consumed supply such as lithium battery stocks. This discussion is primarily inspired by /u/Thereian's comment describing these kind of stock picks:
Do you agree with this investment philosophy? What are some other supplier stocks you hold or have looked into? [link] [comments]  |
| What are some of your favorite duopolies? Posted: 15 Sep 2021 03:28 PM PDT Companies which operate in duopolies often have wide moats which deliver good financial performance because they're less susceptible to new entrants, often due to high barriers to entry. Many industries also mature to the point where it's only profitable for a handful of companies to operate, which can be profitable for those which survive. For an example, look at the memory semiconductor manufacturing industry. Lots of consolidation over the past two years like Intel selling its NAND business to SK Hynix and Western Digital buying Kioxia. My question is, what are some duopolies in relatively attractive industries? Regardless of market cap. I'll start: $V and $MA: one of the first duopolies many people think of, the two companies with a solid grip on the payment processing space. Have been some worries about new technology/entrants as of late but the chart for these companies tells the story. $WM and $RSG: waste management is a highly fragmented industry but these two companies have come out on top after Republic Services (the 3rd largest at the time) bought Allied Waste (2nd largest) in 2008. Many think of garbage disposal as a boring, defensive industry akin to utilities, but both stocks are up 150% in five years (good but not great) with a 1.5% dividend, good management and should (theoretically) offer decent downside protection in an economic downturn. Semiconductor capital equipment: not listing individual stocks because the entire industry is a series of duopolies between $ASM, $LRCX, $AMAT, $TOELY, and $KLAC. The technology is so damn hard and expensive to develop that the market has been whittled down to these five companies supplying most equipment for fabricating semiconductors, charts speak for themselves. What are some other ideas on duopolies? Open to any feedback on this strategy as well. [link] [comments]  |
| Is there any point in investing in anything else than S&P500 + my country index? Posted: 16 Sep 2021 01:22 AM PDT Goal: put money into some position, forget about it for decades. There's this statistic around that ~90% of investors underperform the market. A safe (-ish) and easy way of investing is therefore to just dump money into an index, especially for long term growth. The world economy is heavily linked to the US economy, which is best represented by the S&P500 because this index is very general and has a lot of companies. The S&P500 has grown a lot all through history, and there is never a point where the world economy grows yet the S&P does not. So whenever there is something to gain, you will gain with just following S&P. Then, if you live in a non-US country you might want some exposure to your own country economy. Because that's where you will be earning and spending money in general. I live in Switzerland, which is a rich and stable country, so I can hold savings in the SMI index and they will follow Swiss economy. Aside from that and without going into individual stocks, is there really anything else worth investing into? [link] [comments]  |
| Anybody have any experience with an SBLOC (Securities-Backed Line of Credit)? Posted: 15 Sep 2021 02:15 PM PDT I was told from a friend that this is how some of the ultra-wealthy are generating income (enough to live off of) while avoiding taxes of any kind (capital gains or income) A quick Google shows UBS, Merrill Lynch, eTrade, and Morgan Stanley all offer some way for you to borrow at least 50% of the value of your equities for around 2% or less. I'm guessing the flow is:
From what I understand, there are 0 taxable events on this. Does this sound accurate or wrong? [link] [comments]  |
| Theoretical question about the benefits of using Smartlands vs. traditional refinancing. Posted: 15 Sep 2021 08:59 PM PDT So, this is specifically for real estate. Generally, if you own your (residential, at least) property, you can get an equity based loan at the going rate to get some cash. I know Ukraine rates are higher than the US, but are they that much higher? Pretty sure you can do a home equity loan for like 6%, and I have to assume larger commercial loans are even lower. Plus they could do a full refinance for even lower rates in the 2-3% range. I don't see how tokenizing and effectively selling 40% of your building and forfeiting a percentage of future profits is a better deal than getting a loan from a bank for 40% of the building's value at a 2-6% interest rate... and getting to keep all the profits on top of that. Unless Ukraine interest rates are like 15-20% or something, seems like the bank is a better option. I'm probably just missing something, but my question is what is the draw to bring future properties in? Why would they choose this route over traditional finance? I definitely get the SME side, but still trying to wrap my head around the benefits for real estate owners. Are they selling portions of the property they still owe money on? That seems quite risky. Maybe I am just not savvy enough on the costs associated with taking cash out of commercial properties. I'm quite excited about this project regardless for the SME side but any clarification on the real estate side would be appreciated. [link] [comments]  |
| SEC Gives Whistle-Blower $110 Million in Payout Posted: 16 Sep 2021 03:56 AM PDT (Bloomberg) -- The U.S. Securities and Exchange Commission awarded $110 million to a tipster whose information resulted in enforcement actions, bringing total payments under the agency's whistle-blower program to more than $1 billion. The tipster's award, the second-largest ever, includes $40 million from the SEC and $70 million from a related action brought by another agency, according to a statement Wednesday. Under the SEC's whistle-blower program, tipsters can be paid for information that prompts sanctions by another agency. "Today's announcement underscores the important role that whistle-blowers play in helping the SEC detect, investigate and prosecute potential violations of the securities laws," SEC Chair Gary Gensler said in the statement. "The assistance that whistle-blowers provide is crucial to the SEC's ability to enforce the rules of the road for our capital markets." The SEC has made disbursements to 207 tipsters since issuing its first award in 2012. Individuals are eligible for payments ranging from 10% to 30% of the fines collected in enforcement cases where penalties exceed $1 million. Funds used to pay tipsters don't come out of disgorgement, the portion of a sanction that's supposed to be returned to harmed investors. Neither the whistle-blowers nor the firms accused of misconduct were identified by the SEC, in keeping with the federal government's policy of withholding information that could reveal a tipster's identity. [link] [comments]  |
| How do you know when to get out of a stock position with a gain? Posted: 15 Sep 2021 11:02 AM PDT Obviously no one can really "know" but what should you look for that might be a good indicator to get out while taking a profit. It's not hard for me to determine when to get out taking a loss, but it's taking a profit I have problems with. I use Trade Stops by Teadesmith which tracks the stocks propriety "volliltility quotient" which is a metric the company designed to tell you if stocks are green yellow or red. If a stock is red, it is a good indicator to get out. Another have any other ideas how to get out while taking a capital gains? [link] [comments]  |
| Real yields are on record lows - where are you earning interest? Posted: 15 Sep 2021 01:24 PM PDT There is currently so much liquidity in the market that needs to find a place to earn yield. Investors are now even willing to accept negative interest and pay 0,656%. For the first time in history, real yields on the European junk debt have fallen in negative territory. We are curious where you are currently investing your money and what are the highest yields you earn? Let us know in the comments below. [link] [comments]  |
| Future options far out. Question? Quicker money? Posted: 15 Sep 2021 02:53 PM PDT So I'm wondering if I buy a far out option and say the option is in my favor for 2 days. And I invest a lot, would I make that much? Example in the picture. Using RH as an example (I don't use it tho) In the example the high was 19.90 and low was 17.50. If I bought and low and sold at high that would be a $240 profit for today. My question is. Can I hold the long term option for just a couple days and then sell if there is a buyer? To me this sounds like an EASY way to make money as long as you have the funds. I don't get the catch (besides if the option doesn't go in your favor until expiration) The image didn't load for my example… [link] [comments]  |
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