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    Sunday, September 5, 2021

    Daily General Discussion and spitballin thread - September 05, 2021 Investing

    Daily General Discussion and spitballin thread - September 05, 2021 Investing


    Daily General Discussion and spitballin thread - September 05, 2021

    Posted: 05 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:

    • 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. September 05, 2021

    Posted: 05 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:

    • 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!

    submitted by /u/AutoModerator
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    Company acquiring another one, offers "notes" instead of stock - how does that translate into the real world?

    Posted: 04 Sep 2021 05:58 PM PDT

    Hi all,

    The company I work for was acquired by a private equity firm (PEF) - they went from a public company (shares was on the stock market) but they were all bought by the PEF.

    Now a larger software based company (LSBC) has acquired them from the PEF - the LSBC isn't offering the staff shares as part of their benefits program as they own the entirety of the shares.

    However, they are offering "notes" (and no, I don't know what that means) which I think might be a way to "own" shares whilst the company remains private, i.e. internally traded shares (?)

    As you can tell, I have no idea what that means or how it works.

    My question is, if the company grows massively and I own these so-called "notes" - what does that mean in terms of monetary value?

    As sort of attempts to explain this would be appreciated.

    Thanks

    P.S. they gave us a bonus - might invest this or save to move out from parents place

    submitted by /u/thatasianguy42
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    help for a US citizen living abroad

    Posted: 05 Sep 2021 12:47 AM PDT

    Hey guys, I'm a 21 year old student living in Switzerland, and i've been wanting to get into investing, but it's so difficult!! I was born kn the US, so i have a US passport, but i moved to Switzerland when i was one, so i have a Swiss passport as well. I've tried DEGIRO, Flowbank, Trading 212, but none accept US citizens, and i can't DL Robinhood, since my App Store is set to Europe…

    Anyone have any wisdom for this unfortunate situation? would be greatly appreciated!

    thanks in advance my dude(tte)s

    submitted by /u/Kawakzaky
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    Watch out for Variable annuities

    Posted: 04 Sep 2021 04:33 AM PDT

    The worst financial decision I ever made was getting 200k worth of variable annuities with Met Life

    As Anthony Robbins says in his book Money master the game, variable annuities are invariably bad.

    I held on to my annuities for 13 years so that they would get back to their ore subprime mortgage crash values. I should have bailed out and cut my losses. Met Life and the salesman stole 13 years of the future value of my money.

    Variable annuities are extremely complex products where you pay through the nose in layered fees. Snd when you analyze the numbers, it's a raw deal

    submitted by /u/Darth_Pervis
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    Margin stock purchases using non-margin buying power

    Posted: 04 Sep 2021 12:53 PM PDT

    Can anyone enlighten me on the voodoo that happens after the account rebalances from a stock purchase in a margin account? This is through Fidelity. Before the trade I had $32,000 margin buying power with about $11,000 non margin buying power on Friday. I made a purchase for about $8600 worth of stock X shares. Today my margin buying power is at a negative -$ 8,000 and non margin at a negative -$2,400. It's clear that my cash buying power was used because I have $2,400 left to withdraw from the account. So why does the system spazz out even though I didn't even use margin for the purchase and have over $20,000 equity in the account. I understand the stock is volatile but it doesn't make sense to me especially since I used non-margin buying power for the trade. Thank you!

    submitted by /u/pawelmwo
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    Question about technical markets infrastructure

    Posted: 04 Sep 2021 06:30 AM PDT

    Hi, I'm quite new to trading in general and I'm still learning a lot of stuff as I go on. I had a more technical question, which I'm not completely sure this is the right place to ask, but I figured it's an interesting topic and it's still related to investments and trading, so it may be useful for other people as well.

    This being said, my question is about the general market infrastructure, i.e. how do markets work not at an economical level, but on a technical level? Years ago, trading was done using literal pen and paper, nowadays everything is computerized and what I'm really interested in is how the whole system and infrastructure works.

    For example, when I buy 1 stock of AAPL using my broker website, what is really going on underneath? The system is matching my order against a sell order of 1 AAPL stock and making the exchange, right? But what happens if more people do the same thing at the same time? Is there a queue of orders? So is it possible that my order won't be executed if there are no sell orders because they were all already executed against an equal number of buy orders?

    So, I hope you got the point of my question, as a TLDR I just want to learn a bit more about how modern online market infrastructures are designed, and would really appreciate if somebody has some resources that explain this topic more in detail. Thanks!

    submitted by /u/azure_420
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    2021 has been unprecedented and changed investing forever.. how do you adapt in 2022?

    Posted: 04 Sep 2021 09:08 AM PDT

    Although everyone has sort've silently moved on, AMC is still trading steady at $45. (~500% gain from last year) GameStop is sitting steady at $200. (~2000% gain). Ethereum is growing rapidly and currently sitting at nearly $4000 (~2000% gain). The most popular NFT (CryptoPunks) have grown from $4000 last year to roughly $400,000. That is a roughly 10,000% gain. I think you get the point.

    "Value" stocks like Ford and GM have gone up about 50% in the same time, a fraction of the growth stocks. Similarly, these value plays dropped 40% during the coronavirus crash, roughly the same as all risky assets like Bitcoin, Ethereum, etc.

    Which poses the question :: why would anyone buy stocks, especially value stocks?

    Everything Buffett and others eschew have provided the most returns in the past 5-10 years. Now while one may have been focused on value and long term growth, their returns will have been essentially rooted to their peers who invested in growth. (ironic to call an unproductive asset like crypto "growth" but you get the point). So in logical times, you could say "these are in a bubble and history does not repeat itself to the future." however, considering the past 5 years crypto is up tremendously with little dips and currently sits at a $900b mc (btc), it could also be another 5 years it goes to $2t before it goes back down. So "the long run" point is vague and meritless.

    Investing has certainly changed from 100 years ago when Intelligent Investor was written, though obviously many of the principals still apply, how do you adapt?

    submitted by /u/actmathsucksballs
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