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    Sunday, October 31, 2021

    Daily General Discussion and spitballin thread - October 31, 2021 Investing

    Daily General Discussion and spitballin thread - October 31, 2021 Investing


    Daily General Discussion and spitballin thread - October 31, 2021

    Posted: 31 Oct 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. October 31, 2021

    Posted: 31 Oct 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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    Lucid Air Customer Deliveries Officially Begin

    Posted: 30 Oct 2021 03:23 PM PDT

    https://insideevs.com/news/544452/lucid-air-customer-deliveries-begins

    First Lucid Air Dream Edition cars were handed over at the Dream Delivery event in California.

    As promised, today Lucid has officially started the first customer deliveries of the groundbreaking and luxurious Lucid Air model, which is the longest range electric car ever produced.

    The initial limited Dream Edition will consist of 520 cars (which equals the 520 miles/837 km of EPA range).

    We are not sure how many units will be handed over on October 30, but the photos indicate that there might be a double digit number.

    "No longer just a Dream. The very first members of the #LucidOwnersClub are here to take delivery of their Dream Editions."

    Lucid CEO Peter Rawlinson said: "This is a big day. We always said until we've handed cars to customers, we haven't achieved a damn thing."

    The production of the Lucid Air started on September 28 in Casa Grande, Arizona. At the time, the company had over 13,000 reservations.

    Besides the top of the line Dream Edition series (available in a Range or Performance version), Lucid offers also the Air Grand Touring at a $30,000 lower price tag. Two more, less expensive version - Air Touring and Air - are expected to follow.Lucid Air Customer Deliveries Officially Begin

    📷

    submitted by /u/aznkor
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    How hard is it really to beat the S&P?

    Posted: 30 Oct 2021 06:55 AM PDT

    I've read statistics that something like 90% of professional money managers failed to beat the S&P. I wonder though how much that really means... There are a lot of funds out there whose objectives are not as simple as beating the S&P. I'm curious if there's data on the subset of money managers whose objective is to beat the S&P over the long term, what percentage of them are successful? Also, how do DIY investors within this same subset compare to professionals?

    What motivates this question is that I want to know about where I stand on the spectrum. Since 2009, I've beaten the S&P by an average of about 3.9% per year. Does this make me an investing genius? Average? Dunce? Or maybe I'm within 1 or 2 standard deviations and just a little lucky...

    submitted by /u/RobertKesselring
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    What are the best investing books for beginners?

    Posted: 30 Oct 2021 11:36 PM PDT

    I've already purchased "The Intelligent Investor" but I need referals to WHICH BOOKS TO BUY TO HELP ME invest beyond the stock market - I already know everything about STOCKS and OPTIONS.

    What are the best investing books for beginners in ROTH IRA account, 401k, ETF, investing for the long term, securities, mutual funds, real estate investment, etc.?

    I would really appreciate any books that explain such topics in layman's terms.
    I've already purchased "The Intelligent Investor" but I need referrals on investing beyond the stock market.

    ANY ADVICE IS MUCH APPRECIATED FELLAS!

    submitted by /u/Dissizzit
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    The rise of solar. Will it continue. FY22 and beyond.

    Posted: 31 Oct 2021 03:03 AM PDT

    Hey folks.

    Hope your all doing well.

    I wanted to drop by and ask peoples thoughts on solar. I'm a Big believer of this sector and recently price action have supported the growth.

    Last year I was actively doing dd on companies like enoh and spwr which gave me 200% returns for my 4 stock portfolio. Other 2 were pltr and sq lol.

    Anyways, I've since put all my capital into maxn and spwr again. Im a big believer in these 2 companies and think the runway for growth is insane especially with how much more growth maxn has in the American and European markets.

    Anyone else in the solar sector? What are your bull/bear claims to it and these picks.

    FYI I'm deep about 300k in them right now.

    submitted by /u/Itonlygetshigher420
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    Is the M1, M2 money growth corelated with inflation?

    Posted: 30 Oct 2021 11:22 PM PDT

    There has been so much M1 money supply shoved into the system, that inflation is a pressure safety valve going off, you won't be able to control it until M2 and M1 money growth rate normalizes. I think we are headed toward further inflation for the following reasons:

    1. Short Term Treasury interest rates are close to zero.
    2. Bank reserves are increasing, therefore bank liabilities are increasing, therefore prime interest rates are decreasing (the interest rates will continue to be low)
    3. Commercial Loans are declining despite the low-interest rates
    4. Real estate loans are flatlining, my guess is that the Asset Bubble about to burst.
    5. Therefore consumer loans should be increasing, this is exactly what is happening now.
    6. The M1/M2 ratio is the highest that it has ever been, there is so much M1 money, that I don't think the Feds will be able to control the M2 money growth.

    I'm new to all of this. So I'm wondering if my understanding is flawed? How can the feds control the M2 money supply? Is the M1 and M2 growth rate even related to inflation?

    submitted by /u/matrix3912
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    Are blue chip stocks a good hedge against inflation?

    Posted: 30 Oct 2021 12:25 PM PDT

    We all know inflation is on the rise, and everybody's looking for hedge against it.

    I don't want to hedge with real estate stocks, as I own some actual real estate, so I don't wanna invest any more money in this field right now.

    I have some gold stocks which HISTORICALLY should do well during times of inflation, but I don't really like owning assets that don't pay me to own them.

    So what do you think about blue chip stocks as a hedge against inflation?

    submitted by /u/whatthehellhappensto
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    Oil & Gas Midstream Limited Partnerships (aka pipeline companies) & tax reporting issues

    Posted: 30 Oct 2021 04:43 PM PDT

    Is there a reason why you might want to avoid owning these as income producing assets? They generate k-1 tax reports which are apparently distinct from a 1099. Is there a reason why IRS agents are more likely to audit you for owning shares in these?

    I bought shares in BP midstream, an oil and gas pipeline operator because I was sick of getting 0% yield on cash. The roughly 10% yield seemed very attractive to me. But now I am being audited and the majority of the questions I was asked were about this partnership. The IRS agent was asking me to help her understand the nature of the business partnership, its costs, revenues, and deductions. She also wanted to know how big my share of the partnership was when all I did was buy a few 100 shares through my broker. Also, even though I included my k-1 tax reporting form with my return I was asked to bring another copy to the audit. Doesn't the partnership report all this stuff to the irs independently?

    Lastly, why are shares of these handled differently than dividend yielding stocks that do tax reporting via 1099-div. Was it a mistake or deemed somehow sketchy that I bought bpmp shares in search of higher dividend yields?

    submitted by /u/HumanCattle
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    Question on private company investment. Will shares of a ice hockey club (private) go up or down in value depending on the club's performance?

    Posted: 31 Oct 2021 02:41 AM PDT

    https://hcap-ch.translate.goog/de/news-de/1052-ambr-gehrt-dir?_x_tr_sl=auto&_x_tr_tl=en&_x_tr_hl=de&_x_tr_pto=nui

    Please read the TRANSLATED link.

    Hello. I have the chance to buy shares in my favourite ice hockey club (Ambri Piotta, in Switzerland), through a so-called Equity Crowdfunding.

    Some context:

    The club is somewhat of a legend in the whole country and beyond, yet they have the least money.

    HC Ambri Piotta have always fought relegation (exists in Europe), but have always been in the highest league. Relegation would be synonymous with a disaster to the club and the village.

    They have never won the league.

    It's like a little league team playing in the big league.

    https://en.wikipedia.org/wiki/HC_Ambrì-Piotta

    submitted by /u/TESLAkiwi
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    How common is it for ETF's to be allowed to lend money and/or use derivatives?

    Posted: 30 Oct 2021 10:42 AM PDT

    I've recently been looking at some ETFs I'd like to invest in but whenever I look at the prospectus I see three things:

    • they may lend money to "eligible third parties" meaning to whomever they want
    • they may use finacial derivatives to increase returns (they don't even specify what the underlying for the derivatives can be)
    • they give a risk indication for the product that excludes counterparty risks -they all use the same language or very similar language to express all this

    Is this stuff standard? Are there any ETF's that actually are only allowed to track whatever they say they track without these broad discretionary powers?

    submitted by /u/willkydd
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    What’s up with all of these forex traders on Snapchat ?

    Posted: 30 Oct 2021 06:06 PM PDT

    What's up with all of these forex traders on Snapchat ?

    They're getting vouches by famous tiktokers/ influencers (lol) and saying they can turn 100 into 1000 , 200 into 2000 and so on , posting videos of expensive cars , watches living lavishly .

    Obviously this screams scam but how did this start and is it illegal to promote these people ?

    Has anyone seen anything like this either on Snapchat, Instagram or Facebook ?

    I was talking to one of the guys and he says they have an office in the UK or something

    submitted by /u/Arrenox
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    Why tech stocks are still undervalued despite the 20 year bull-run.

    Posted: 30 Oct 2021 06:20 PM PDT

    "Microsoft, US$2.2T market cap, annualised revenue $185B, up 21% over the year, annualised profits $66B, up 47% over the year.

    I.e. Microsoft shareholders are getting a 3% yield ($66B/$2.2T) - with ~21% (and arguably 47%) growth. So if Microsoft just continues to grow as it's doing - and has been doing in recent years - we're talking a ~24% (3%+21%) net return. Sure, I'm simplifying, but fundamentally this makes sense.

    This is INSANELY good especially when considering nearly half of Microsoft's revenue is recurring. I mean, if you were buying real estate with a 4% rental return, that'd end up around 2.5% net, you'd be very lucky to be getting 5% capital growth. That's a 7.5% (2.5% + 5%) net return at best. A 20% annualised return is what Warren Buffett, the world's best investor, used to consistently achieve in his heyday.

    Microsoft is no-brainer cheap, you should go ahead and buy. But it's not just Microsoft - all of GAFAM - Google, Apple, Facebook, Amazon, Microsoft - which have a total market cap of $9T and up more than 10x over the last decade - do similarly well with the same basic analysis.

    How can this possibly be?

    Ok, let's step back a bit, GAFAM, just 5 stocks, represent nearly 20% of the value of ALL listed companies in the US, up from 3% a decade ago. Think about that. Add other tech stocks to that and you have a monumental shift in the composition of US stocks. That needs a monumental shift in capital which needs investors to change their way of thinking. I mean, we're going through a real paradigm shift.

    Now, sure, that shift is happening, we're all living it, but the world of finance, much of it controlled by older people fairly uncomfortable with technology, is going to lag - and this lag is the core reason why far from being some bubble, tech stocks in general are, despite their soaring valuations, still massively undervalued."

    • Asim Qureshi, ex-Morgan Stanley VP
    submitted by /u/Okmanl
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