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    Daily General Discussion and spitballin thread - November 23, 2021 Investing

    Daily General Discussion and spitballin thread - November 23, 2021 Investing


    Daily General Discussion and spitballin thread - November 23, 2021

    Posted: 23 Nov 2021 02:02 AM PST

    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. November 23, 2021

    Posted: 23 Nov 2021 02:01 AM PST

    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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    "This paper has been going around investing subreddits and it is complete BS - here's why" (not OC)

    Posted: 23 Nov 2021 06:13 AM PST

    NOTE: This was posted on r/stocks and other similar subreddits by a user that "may or may not be" banned from this sub (reason for ban not given). I commented that they should post this here and they gave me permission to do so. I have seen this paper referenced a number of times on this sub so I'm curious to hear peoples' thoughts on this rebuttal. I have no personal bias one way or the other, just curiosity.

    You may have seen this paper (https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2741701) floating around various investment subreddits over the past week. It usually comes with the title How to 3x the S&P CAGR with less risk | Leverage for the Long Run with people praising it as an amazing new strategy that requires little effort, provides a high degree of safety, and allows you to experience only the good side of leveraged ETFs. Here's why it's complete bullshit.

    I've seen the 200 SMA argument posted hundreds of times before in r/LETFs. I'm glad this one at least comes with a paper, but the paper is still falling for the same mistakes other believers fall for. The author is correct that volatility increases below any significant moving average (20/50/100/200), however, avoiding volatility should not be your main concern when holding unhedged leveraged ETFs. Your main concern should be flash crashes like in 1987 where the market fell 22% in one day. The author says this:

    Chart 6 shows that historically, the worst 1% of trading days have occurred far more often than not below the Moving Average. Included in this list are the two worst days in market history: October 19th in 1987 and October 28th in 1929

    Wow look at that, moving averages helped avoid the worst two days... but why? The answer is partially due to the fact that both the best and worst days will be in periods of high volatility, but it's also heavily influenced by pure chance. A day like Black Monday could happen at anytime and if there wasn't a choppy market leading up to it you will miss it with moving averages. An unleveraged 22% drop would be a 66% drop for the portfolio suggested in the paper. The market would then likely dip below the 200 SMA and the person would sell! Missing the entire ride back up, even if there was more to fall you're not going to be left in a good place.

    There is no macroeconomic reason that moving averages have any form of predictive power. The closest thing would be the concept of a self fulfilling prophecy which would require a massive audience of believers to have an impact (there are not nearly enough). People always use 200 SMA, but if you try to test other SMAs nearby you sometimes get significantly worse results. The 200 SMA just happens to get you out before the Dot Com crash as well as the GFC. When your entire reasoning is based on well it did good in the past you're overfitting by definition.

    Let's look at another strategy that has an economic backing - HFEA. Holding stocks and bonds together isn't something that just happens to work when you test it. When stocks experience uncertainty large investors move their money into the safety of bonds which forces them in the opposite direction to the stock. Stocks and bonds are slightly, but not perfectly inversely correlated and both of them have positive expected returns. This is why they are the ideal hedge.

    I also want to point out that this is not an academic paper that came from a university. It was published by https://www.leadlagreport.com/ which says on its homepage "Consistently win in the stock market and minimize risk regardless of market conditions" followed by a subscribe button. This is called bullshit and I encourage anyone who cares about honesty to call it out when shit like this is posted.

    submitted by /u/caesar____augustus
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    And gold is down again.. what is your outlook?

    Posted: 23 Nov 2021 09:36 AM PST

    Gold price was doing fairly nicely in recent weeks, but apperently the "news" that Powell will stay as Fed chair is enough to send gold down again 2% yesterday and another 1,3% today as it stands.

    Those who have followed the overall gold price curve will probably have noticed it always reaches a certain top to than fall down again.

    What is your outlook on the gold price for the coming months and next year?

    Wednesday new PCE inflation data will be released and we all know it will be hot, but high inflation seems to just scare gold instead of bolstering it, since most seem to derive from it that the Fed will tighten more rapidly.

    I think however Fed will stick to its "inflation is transitory" narrative and won't speed up its bond tapering, let alone raise interest rates any time soon to avoid spooking the market.

    Final point.. for those who want to bring up bitcoin, I just want to say that bitcoin and gold are not correlated in any way. Money is not flowing from gold into bitcoin. As example, in past days BTC was also down together with gold. BTC is more related to risk-on mentality like equities than it is with gold.

    So how do you see gold evolve coming months and next year and why? Thanks in advance for all good feedback on this.

    Edit: does anybody know when will be the next time Powell will speak again and will this be before the december 15th FOMC meeting? His comments on the speed of QE tapering could have a big impact on the markets and gold.

    submitted by /u/ThinkBigger01
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    How do I learn to hedge properly?

    Posted: 23 Nov 2021 01:12 PM PST

    I believe my biggest mistake in 2021 was to not learn how to hedge.

    Let's suppose I am long on stock "X" where I DCA whenever I feel but plan to always hold a core position and build on that.

    Would it make sense for me to buy PUT options? So short term, if the stock goes down, I can sell those put options and make some extra money to average down in long position?

    Is that the gist of it? Or do I buy long term put options? Idk

    submitted by /u/newplayer28
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    HUYA, DOYU, BABA, BIDU and Tencent's recent earnings broken down, plus a rundown of recent news and possible price movements over the next few months. What do you think?

    Posted: 23 Nov 2021 07:21 AM PST

    Over the last couple of weeks, a lot of Chinese companies listed in the US have released their latest earnings. In this video, we will take a look at five of them, HUYA, DOYU, Baidu, Alibaba and Tencent. We will first look at earnings before checking the latest news and possibly price movements.

    Baidu ($BIDU)

    Let's start with Baidu. For the tenth consecutive quarter, Baidu beat analyst earnings expectations with an EPS of $2.3 US dollars which was $0.29 dollars or 14.4% above expectations. However, Baidu's earnings were lower than last quarter and 25.5% lower compared to the same period last year. Plus, the GAAP EPS was minus $7.48, which is a big, big loss. That's not great for the share price because price follows earnings as Peter Lynch likes to say. Even though Baidu's revenue was in line with expectations at exactly $5.00 billion US dollars, this is their higher quarterly revenue ever with a 4% increase compared to last quarter and 16.7% increase compared to last year! That was driven by Baidu's AI cloud which grew by 73% compared to last year! Cloud is massively growing in China with Baidu and Alibaba being two of the main players in the country so let's take a look at Alibaba.

    Alibaba ($BABA)

    Alibaba posted one of its worst earnings releases ever! Alibaba failed to meet earnings expectations with an EPS of only $1.75, missing analyst expectations by $0.19 US dollars or 9.7%! This is a 31.9% drop from last quarter and 35.6% drop from last year which is really concerning. On top of it all, Alibaba missed revenue expectations with only $31.4 billion dollars. It is still 33.8% higher than the same period last year, but the revenue came 2% under analyst expectations. Out of the last 3 earnings reports, Alibaba has failed to meet earnings and revenue expectations twice, which is a very, very concerning sign for a growing company. Even worse, Alibaba reduced their revenue guidance for the current fiscal year which is typically not a good look and it's even worse when combined with both an earnings and revenue miss.

    Tencent ($TCEHY or $0700.HK)

    Then, we've got Tencent. Unfortunately, Tencent missed both earnings and revenue analyst expectations for the latest quarter just like Alibaba. Tencent reported an EPS of $0.51 dollars, which is what they also reported last year. In terms of revenue, Tencent reported $22.28 billion US dollars which is 2% under expectations although it still shows a 17.5% increase as compared to last year. Tencent's biggest segment, gaming, is doing well, increasing by 28% as compared to last year if we take out changes in currency. Tencent's second biggest segment, FinTech and Business services, also grew by 30% which was good to see. Overall, Tencent is posting a decent revenue growth, but its profits are lagging behind.

    HUYA ($HUYA)

    The next company is HUYA who released their earnings on the 9th of November. HUYA reported an EPS of $0.12 US dollars which was $0.06 US dollars above analyst expectations, basically double of what they expected. That looks good, but we need to remember that analysts massively reduced expectations in the month leading up to the earnings release. Plus, HUYA had an EPS of $0.23 US dollars for the same quarter last year and an EPS of $0.16 for last quarter so we can see that HUYA's earnings are trending down. On the upside, HUYA reported a revenue of $465.5 million US dollars, which was 2% under analyst expectations, but it was still 10% higher than last year and 2% higher than last quarter's so there's a steady improvement there. Their paying users for HUYA Live remain the same number as last year so no changes there even though their total mobile users went up by 15%.

    Douyu ($DOYU)

    Now, let's take a look at DOYU which are essentially HUYA's main competitor even though both companies have Tencent as their majority owner. Just like HUYA, DOYU beat the analyst earnings expectations by $0.01 US dollars with an EPS of minus $0.03 US dollars, but, again, the expectations were lowered going up to the earnings so an earnings beat doesn't mean much. Their EPS for the same period last year was $0.06 so there's a big drop there although the current EPS is slightly better than the previous quarter. In terms of revenue, DOYU missed expectations like HUYA by just under 1%, which is pretty much in-line really. However, DOYU's revenue has dropped over 5% from the same period last year, which is not good. Also, their paying users have dropped by 10% year-on-year to just 7.2 million in the latest quarter.

    Trend, news and outlook

    So, the overall trend here is a slowing revenue growth and slowing earnings. We can see that in the results and we can see it in the guidance. So, why is this happening? There are several reasons behind this. First of all, the Chinese economy has been slowing over the last quarter which has concerned a lot of investors. Inflation is also going up worldwide along with shipping costs. Then, we have still not seen the fallout from Evergrande's collapse in China and that is worrying. Evergrande has the potential to inflict a massive hit to the global stock market. We also have the new regulations around data security, data privacy, gaming, tech companies overall. We've seen Alibaba and Baidu taking a revenue and earnings hit. We have seen Alibaba getting the massive fine. In addition to all that, DOYU's CEO has also just reported that Chinese regulators have suspended the approval of new games in China to tackle the perceived video game addiction by Chinese youth. This will cut into the earnings of the gaming industry in which DOYU, HUYA and Tencent are involved.

    Basically, the next 3 to 6 months look a bit bleak right now although some analysts argue that this is setting up China for steady growth after an initial slowdown. Personally, I'm currently bearish on China. We've seen the latest price action for HUYA, DOYU, Baidu, Alibaba, Tencent. We had a few false breakouts, but in the end the prices dropped again. All five companies currently trade at a massive discount. HUYA and DOYU are trading at their all-time lows! Alibaba is trading at a PE of 17.5 compared to its historical average of 27 to 30. When's the last time that Tencent has traded at a PE of 21? Over 5 years ago, maybe more. All of these look like amazing bargains right now, but are they? I read a detailed interview with Stanley Druckenmiller years ago and he said something along the lines of "Don't look at the fundamentals, look at what's moving the price". With DOYU, HUYA, Alibaba, Baidu and Tencent there's been two main things moving the price. Regulation is the big one, but there's also the slowdown in revenue and earnings. This tells me two things.

    First of all, investors wants to see reassurance that China will not destroy its tech companies. There is a decent chance that China will want to exercise more control over its tech companies, maybe even place members of the CCP on the board like it did with Bytedance, the company behind TikTok. Do you know what would happen if they do that? These companies will be delisted from US stock exchanges. Just think of all the institutions and hedge funds that would have to exit. Share prices will plummet. I'm not saying that it will happen, but there is a small chance. Plus, the Chinese government has outlined a 10-year plan that includes strict regulation of big tech companies. A ten year plan. I wouldn't hold my breath for any good news in terms of regulation there over the next year.

    Second of all, investors want to see better earnings. However, again, we need to see signs that earnings will be improving and this will not happen for at least 3 months ahead, most likely for longer if the slowdown in Chinese economy continues.

    Summary and personal thoughts

    The way I see it, buying these companies is a bet on the actions of the Chinese government. Personally, I think this is extremely risky. I have less than 2% of my total portfolio in these companies and my plan is to continue adding a bit every month in case I turn out to be wrong, but keeping my overall exposure to about 2.5%. However, I know that a lot of retail investors are bullish on these companies. There are good reasons behind it, but I think it's extremely important to consider the risk here and manage the exposure. As Peter Lynch likes to say, be careful when thinking that a company cannot go lower because it can and often it will. DOYU, HUYA, Alibaba, Baidu and Tencent can very well turn out to be value traps for the next year. We still haven't seen any signs that the bearish trend in their prices has been reverted. If you want to buy the dip, that's fine, but just be careful and manage your exposure. I'm not a financial advisor and you can make up your own mind, but just do your research and think about the risk. I don't think we will see a big rise in price until we see a catalyst and I think there are stocks, even indexes, that can offer better returns over the next 12 months.

    Overall, I'm neutral, given China's recent regulation record plus the slowing revenue and earnings growth seen. However, I also think that the market is punishing those companies way too much so I think they're actually trading at a decent discount, which is why I continue to build a position even though it's a smallish one.

    What do you think? Bullish, neutral or bearish?

    submitted by /u/TheNewbieInvestor
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    ViacomCBS is a growth stock priced like a Deep Value Stock

    Posted: 23 Nov 2021 09:13 AM PST

    From Wikipedia:

    "ViacomCBS Inc. is an American diversified multinational mass media and entertainment conglomerate corporation formed through the merger of the second incarnation of CBS Corporation and the second incarnation of Viacom on December 4, 2019[4] (which were split from the original incarnation of Viacom in 2006) and headquartered at the One Astor Plaza complex in Midtown Manhattan, New York City, United States. The company operates over 170 networks and reaches approximately 700 million subscribers in approximately 180 countries, as of 2019"

    Viacom is currently trading at just 6.46x earnings, making it one of the cheapest stocks relative to earnings in the S&P500. Most stocks trading at similar ratios are either cyclicals(IE Auto manufacturers). Viacom, however, has been consistently profitable, even during economic downturns. Of course, many may express concern that with the downfall of Cable, ViacomCBS may end up like Blockbuster.

    Fortunately, ViacomCBS's execs are aware of this risk, and have diversified into streaming services. ViacomCBS has seen significant growth in subscriber numbers on their streaming platforms over the past year

    Viacom has a tremendous amount of intellectual property in the shows and movies it owns. Its pivot into streaming services enables it to continue to leverage its vast content to produce earnings.

    With its rapid growth with streaming, the stock is extremely cheap compared to competitors such as Disney and Netflix.

    Why is the stock so cheap?

    1. Their balance sheet shows a significant amount of liabilities. These liabilities present a risk if the company's revenue continues to decline.Fortunately, ViacomCBS has been using their earnings to redeem senior notes to address this risk. As interest expenses decrease from paying off debt, this should enable them to grow earnings without needing to grow revenue.

    2. Investors are scared the stock will go down. ViacomCBS' stock price is down 45% over the past 5 years. When compared to the S&P doubling during that time frame, it feels like a bad stock to own. Currently, investors are piling in to big winners such as Nvidia, Tesla, etc. Solid companies at great prices just aren't on investors radar right now.

    Just because the stock is down does not mean the company is doing worse, though. Viacom's Earnings Per Share is higher now than it was 5 years ago, yet the price is down nearly 50%. The stock went from a P/E of 15 to about 6-7 over the past 5 years. In other words, investors are paying substantially less for the same earnings.

    3.The fallout of Archegos Capital management earlier this year resulted in a lot of shares hitting the market very quickly.

    What's worth considering is with any value play, it can take a very long time before the market corrects itself. Don't buy in expecting to make a quick buck. The stock can absolutely still go down even on good news if investors fear the stock.

    Other than the dividend yielding about 2.9%, it is likely ViacomCBS will use their earnings for both paying down debt, and investing in streaming.

    Disclaimer: I currently own 100 shares of VIAC and intend to buy more if it drops further. Target valuation of $55.

    submitted by /u/skilliard7
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    Why stablecoins are the gateways drugs of crypto investing

    Posted: 22 Nov 2021 07:44 PM PST

    While many traditional investors understand and agree with the philosophy of crypto, they are afraid to own it due to the implied volatility and unfamiliarity of the asset class. However, stablecoins pose to be a solution to this problem, and it may just be the Trojan Horse needed to introduce non-believers to the crypto rabbit-hole.

    So what exactly are stablecoins?

    Stablecoins are cryptocurrencies that are pegged to a specific asset class, such as commodities or fiat currencies. This allows investors to jump into the world of crypto without having to worry about depreciation or the volatility generally associated with the crypto asset class.

    However, just because the price remains stable doesn't necessarily mean they are risk-free. In fact, investors need to fully understand the underlying asset risk behind stablecoins before investing in one. There are primarily 4 types of stablecoins:

    1. Fiat-backed stablecoins: Fiat-backed stablecoins are backed by fiat currency such as the U.S Dollar, and are relatively steadier than the others due to this correlation. However, the downside is that these currencies are not truly decentralized, since the underlying asset is linked to a centralized institution such as the Central Bank. A great example of a fiat-backed stablecoin is USDC or U.S Dollar Coin by Coinbase.
    2. Crypto-backed stablecoins: crypto-backed stablecoins use cryptocurrencies as collateral in order to keep the price stable. In most cases, these will be overcollateralized, meaning that there will be an over-allocation of the underlying crypto asset to deal with any selling pressure. The main risk here is that if the underlying assets drop enough, then these stablecoins will ultimately lose their value. So as an investor in crypto-backed stablecoins, it may be a good idea to also keep an eye on how the underlying asset is doing. An example of a crypto-backed stablecoin is DAI, which uses ETH as the underlying crypto asset.
    3. Precious-metal stablecoins: Precious-metal stablecoins use commodities such as gold as the underlying asset for the crypto token. The price doesn't necessarily have to remain stable for these tokens and can instead track the underlying commodity in a 1:1 ratio. In a way, they can act almost as ETFs for the commodity, allowing investors to gain access to a financial asset such as gold without having to take on the burden of storing it. Digix is an example of a stablecoin that tracks the price of gold.
    4. Algorithmic stablecoins: Algorithmic stablecoins use algorithms in order to bring stability to prices. Many coins will use algorithms that increase or decrease supply based on the demand in order to accomplish this. Some examples of algorithmic stablecoins are AMPL and FEI.

    So why do we need stablecoins?

    Stablecoins provide an entry point for traditional investors who are interested in dabbling with crypto. Since there is a familiar underlying asset behind these coins, traditional investors can feel relatively more comfortable buying them when compared to something new such as Bitcoin or Ethereum. The volatility, or lack thereof, is also attractive for a lot of investors who just want to get started with crypto and earn some yield by holding or lending their money.

    Beyond that, stablecoins also provide functionalities such as fast transfers that don't require financial service fees or traditional banking applications. Centralized stablecoins can also be thought of as simple digital forms of fiat currency that don't require a bank account to store. For individuals who want to be truly bankless, stablecoins are the perfect solution.

    submitted by /u/BenDoverR8Now
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    Anyone have any good stock mutual funds or stock ETFs that are actively managed emerging markets for int. emerging market exposure?

    Posted: 22 Nov 2021 04:40 PM PST

    Most actively managed accounts seem to be incredibly young for emerging markets. (I looked up some on Charles schwab yesterday and some of them are literally just a month old).

    My emerging market etf is currently SCHE, but after reading literature it seems that emerging markets are a bit special in that they are the one area where it might be beneficial to have an actively managed account rather than a passive index based one. If there's no good suggestions, I'll probably just stick with SCHE.

    submitted by /u/AugustusInBlood
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    How to see what stocks have a big difference between between current price and option optimism?

    Posted: 23 Nov 2021 09:08 AM PST

    Is there a site that tracks stocks with a low price, but comparatively expensive call options?

    Is there a term for this difference? The advantage to knowing this would be that option optimism could be a good possible sign on future performance. It would also be of interest if you wanted to buy the stock and sell call options on it for possible further gains. Inversely positive stock performance and high prices on put options might imply people holding the stock expect to see volatility.

    Editing in an example for clarity: I'm curious if there is anything that tracks difference from current daily price compared to price of call options at 'x' date.

    Like two stocks are both $10 eod, but stock A has $15 strike options at x date selling for $1 while stock B has options at the same date/ strike for $0.20. Is there a name for that ratio or way to see it for various stocks compared?

    submitted by /u/jehCe
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    WARNING: Increased tax rates caused $BABA, $BIDU and $TCEHY lost huge profits!!!!!!

    Posted: 22 Nov 2021 08:04 PM PST

    In April this year, China revised the rules for determining preferential tax rates. Platforms such as Alibaba and Tencent issued warnings to investors about the risk of increased tax rates, which may damage their profits. The financial report released by Alibaba last week showed that its effective income tax rate in the third quarter (after excluding non-routine items such as equity incentives and investment income) rose to 24%, the highest tax rate in three years. In the past week, overseas-listed Chinese Internet companies have successively released third-quarter financial reports, and their market values have evaporated. The ten most valuable companies have evaporated more than US$85 billion in total, of which only $BABA's price has fallen by 16%. This is mainly due to the sudden halt in the growth of digital advertising. Alibaba's advertising revenue growth rate in the latest quarter was only 3.4%, which is the worst performance since Alibaba's listing. During the same period, the advertising revenue growth of Tencent and Baidu also fell to 5%.

    To what extent do you think the reduction or exemption of preferential tax rates will affect Chinese listed Internet companies?

    submitted by /u/SiaZhang418
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    Is mineral recycling the future?

    Posted: 23 Nov 2021 05:20 AM PST

    I read this title in the Financial Times: "The EU's looming mismatch between climate ambition and minerals supply".

    For quite a while I have been thinking that despite governments not doing real politics regarding climate change because priorities will always be towards growth, I think that eventually governments will have no option and do real politics about the rising damages and problems created by climate change and pollution.

    Mining is one of the most polluting activity and geological destruction of biodiversity. Yet, today society and its technologies and economic growth demands are always demanding more minerals.

    I am guessing that eventually governmental policies will enforce that recycled minerals be prioritized over mining, just as we see now more and more big chains of fashion industries marketing more and more of their clothes from recycled wool.

    Thinking about it, I have invested in Befesa (steel and aluminium recycling) and EcoGraf (graphite recycling for batteries). And I am looking for more similar companies investing in recycling technologies. I am not interested in wool recycling because I believe that with hemp legalisation increasing in more countries it will be, together with bamboo and other kinds

    But what are the chances for minerals recycling to have a strong growth in the future?

    submitted by /u/ThorDansLaCroix
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    AGFiQ U.S. Market Neutral Anti-Beta Fund (BTAL) as a short?

    Posted: 22 Nov 2021 06:23 PM PST

    "BTAL's objective is to seek performance results that correspond to the price and yield performance, before fees and expenses, of the Dow Jones U.S. Thematic Market Neutral Low Beta Index. BTAL strives to achieve this objective, by investing long in U.S. equities that have below average betas and shorting those securities that have above average betas, within sectors."

    Basically it has short positions on high beta stocks, and long positions on low beta stocks. Assuming there's a correlation between high beta and overvalued stocks, it seems like a nice quiet stock for a bear to hold until the market crashes, then it's just a matter of trying to sound the bottom and sell.

    submitted by /u/xCHODIE_FOSTERx
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    Best Hang Seng Tech Index ETF?

    Posted: 22 Nov 2021 12:45 PM PST

    Preface: If you won't touch China with a ten foot pole, I get it. We know. There are other threads for you.

    Question: What is the best index fund tracking the Hang Seng TECH Index? Aka the 30 largest tech companies listed in HK. Or something similar.

    I googled this and found surprisingly little info available about solid large funds doing this. A few very low volume funds but nothing from the major giants like Vanguard. For example KTEC, which is only $2.5m (tiny) and is not trading very close to NAV due to tiny flows.

    My primary concerns are:

    - Tracks the Hang Seng TECH Index (market cap weight of top 30 HK listed tech companies)

    - Large enough to support volume and track close to NAV

    - Lowest expense ratio possible

    - Easy to purchase in my big-US-bank brokerage account (Merrill Edge atm)

    If anyone knows of the best one, PLEASE POST IT!

    submitted by /u/vansterdam_city
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    2020 Downturn Options Plays

    Posted: 23 Nov 2021 06:55 AM PST

    I'm trying to get some pattern recognition going for the next downturn. I have cash reserved to make one play the next time the market has a huge downturn, like in March 2020. Show me the best option play you made and explain why you made that one. The best I have seen are people who bought $10 calls on $F when it was at 4, and bought them for the max time out, or something similar. It seems the best plays with the most likelihood of success were long OTM calls in blue chips/very established companies.

    submitted by /u/DorianGre
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    TQQQ options, 3x leveraged ETF

    Posted: 23 Nov 2021 08:16 AM PST

    Has anyone ever tried to do options for this ETF? It's a 3x leveraged one, that apparently is supported with options on Robinhood.

    Seems like a good way to gamble but is somewhat diversified already so as long as you bet on a market being good or bad, you can multiply this. I surprised they support it actually.

    I mean, it's not something I'd put a lot of money on just a though and I was wondering if anyone else had tried it.

    For you short term gamblers out there.

    Any suggestions against it as well. Obviously with buying calls or puts you have a limited loss of the premium.

    I'd like to hear what you all will say.

    submitted by /u/Rarefatbeast
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    Which Farms and Food Stocks

    Posted: 22 Nov 2021 02:09 PM PST

    Hi all,

    While technology has a deflationary effect on many goods and services, food seems to be something that will remain at least partially immune. At the end of the day, you need farmland, farming operations, supply chain, and retail of food. And food is not getting any cheaper while valuations stay reasonable (relatively) for many of these food companies.

    I am looking at adding 1-2 value stocks to my portfolio that are in this space. Currently I own LAND and am considering GIS. I might buy a grocery retailer too.

    I would love your suggestions or current holdings in this space and why.

    Thank you!

    submitted by /u/FY2015
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    CEO of ZY purchases a million dollars in shares at 10.00.

    Posted: 22 Nov 2021 12:26 PM PST

    https://www.fool.com/investing/2021/11/22/why-shares-of-zymergen-are-skyrocketing-today/

    The insider purchase was posted late Friday and it's up 10% already. I really feel this is just the start and I always follow ceo purchases and big money. I believe this is a very good investment/swing opportunity for anyone who is interested.

    I myself just pick up a few options for March but play as you wish or not at all. Just sharing what I consider to be pretty big news.

    The ceo states everything is back on track and the pipeline for revenue is increasing dramatically. Obviously all investments are risks so play wisely.

    Have a great day everyone!

    submitted by /u/OhWowMuchFunYouGuys
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