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    Daily General Discussion and Advice Thread - December 18, 2021 Investing

    Daily General Discussion and Advice Thread - December 18, 2021 Investing


    Daily General Discussion and Advice Thread - December 18, 2021

    Posted: 18 Dec 2021 02:01 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!

    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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    Cathie Wood says stocks have corrected into ‘deep value territory’ and won’t let benchmarks ‘hold our strategies hostage’

    Posted: 18 Dec 2021 07:26 AM PST

    ARK Invest founder Cathie Wood offered the latest defense of the once-highflying, disruptive innovation strategies that had made her suite of exchange-traded funds among the most popular, and best-performing, on Wall Street in 2020.

    In a Friday evening blog post, Wood said that despite a brutal stretch that has compelled the operators of the ARK Invest ETFs, including the flagship Ark Innovation ARKK fund, to do some soul-searching, the fund manager is sticking to her game plan.

    Read more: https://www.marketwatch.com/amp/story/cathie-wood-says-stocks-have-corrected-into-deep-value-territory-and-wont-let-benchmarks-hold-our-strategies-hostage-11639795224

    submitted by /u/Protomize
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    Automate index fund investing?

    Posted: 17 Dec 2021 08:06 PM PST

    Anyone know how I could automate some of my paycheck be deposited right into my fidelity account and automatically purchase VTSAX/VTI? The automation thing really helps me- I always loaded up my 401k because it had this mechanism. Now here I am in my late 20's with a decent net worth, but much more stuck in retirement accounts than I'd like. I want the optionality a taxable account provides. If I can replicate the automated process of the 401k investing for a taxable account, I'd be super stoked! Any advice is welcome and appreciated!

    submitted by /u/wgc77
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    Any issues with selling off index funds?

    Posted: 18 Dec 2021 07:46 AM PST

    I only have individual stocks at the moment. I would like to start positions in 2-3 index funds.

    I am looking to have money in a relatively safe spot in the market. I want to have the ability to sell off part of these positions to fund the purchase of individual stocks in the future, when an opportunity arises. Also potentially move funds out of the market for use in my personal life, if the need arises.

    Any downsides to this (tax wise)?

    submitted by /u/Jumbo86
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    Momentum vs Value Investing?

    Posted: 17 Dec 2021 11:46 AM PST

    Within the last 3 - 4 years that I have invested, I have focused mostly on value investing using various valuation techniques, DCF valuations, special situations, NCAV stocks (where the net current assets - total liabilities - total preferred shares) is higher than the current share price. I have also invested in cyclical companies such as commodities and the retail sector. Reading books such as "Benjamin Graham's Net Net Stock Guide" by Evan Blaker, Joel Greenblatt, Warren Buffett, Seth Klarman, Peter Lynch's books, and the books by Philip Fisher have helped me to focus on the qualitative side of investing as well as different value investing approaches which has helped me look for good quality value stocks.

    Recently, I have used the wheels options strategy by taking further advantage of mispriced stocks such as getting paid to buy cheaper stocks via cash-secured puts and selling them for a profit when I think they are overvalued via covered calls.

    Being empirical and wanting to find the best-tried investing methods, as well as behavioral finance has recently led me to momentum trading. Particularly, I have read "Dual Momentum" by Gary Antonacci and "Quantitative Momentum" by Wesley Gray.

    I was wondering if anyone else uses momentum trading and what are some key insights regarding the best momentum strategies. Are there any excellent resources that explain it in depth?

    Some questions I have are:

    What are some of the best momentum indicators as well as strategies? What are the best methods of momentum trading? How long should you hold and optimize your holding position which tends to be less using momentum trading. Is trend following and using the 52 week high the best means? Would you do better by combining fundamental analysis with momentum trading or would it be better to separate the two approaches?

    Based on what I have read so far it seems that some things you can do are compare different assets and see which ones are appreciating more (absolute momentum) and or then see which stocks/cryptos/bonds/commodities, etc are appreciating more in price (relative momentum). It also seems that a 3 -4 month holding period seems to be optimal and that it is better to buy or trade (reallocate) within the end of Feb, May, Aug, Nov for "smart rebalancing."

    Any other insights or resources you like for momentum trading?

    submitted by /u/Crazrwire999
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