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    Daily General Discussion and Advice Thread - January 13, 2022 Investing

    Daily General Discussion and Advice Thread - January 13, 2022 Investing


    Daily General Discussion and Advice Thread - January 13, 2022

    Posted: 13 Jan 2022 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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    Investors are paying millions for virtual land in the metaverse

    Posted: 13 Jan 2022 03:02 AM PST

    Real estate in virtual worlds — sometimes called the metaverse — is going for millions of dollars in some cases.

    The most expensive spots are near where lots of users congregate — for instance, someone recently paid $450,000 to be Snoop Dogg's neighbor in a virtual world called the Sandbox.

    https://www.cnbc.com/2022/01/12/investors-are-paying-millions-for-virtual-land-in-the-metaverse.html?__source=iosappshare%7Ccom.apple.UIKit.activity.CopyToPasteboard

    What do you make of this? Legit or new level of crazy?

    submitted by /u/michael_curdt
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    What do you think the is the current Required-Rate of Return (RRR) for investors on average? How can we gauge this?

    Posted: 13 Jan 2022 12:59 AM PST

    So, to value stocks you need to have an idea of the required-rate of return(RRR).

    I know Peter Lynch has suggested using an RRR of 6%, but that was probably written in a time when bond-rates were higher than today. Presumably the RRR can be less than 6% today, as there are few investments alternatives to stocks that in todays economy give 6%.

    I also assume that RRR changes with time, depending on the changes of the risk-free interest rate (US 10 year bond rate).

    General wisdom is that RRR when holding a stock should be much higher than the interest that companies pay on their debt, because you as a stock holder take on more risk than bond holders. Most stocks these days seems to be paying less than 1% interest on their debt, sometimes a lot less.

    So likely RRR is something above 1% and below 6%?

    A related question is: how can you gauge the market average RRR in a simple way? One idea I had was to look at the average dividend payout of US regional banks with little historic growth and little historic growth prospects. Presumably the main reason to own a stock like that is to get a dividend payout, and the market will bid up the price of these stocks until the dividend yield is below the RRR?

    A quick screen for this idea, shows that most such banks pay out no more than 3% dividend.

    So likely RRR is probably closer to 3% rather than 6%?

    submitted by /u/newbienewme
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    Hey! r/investing. I’ve been meaning to diversify my portfolio to emerging markets apart from China. I was planning on investing in India, is anyone investing there? Would love to know your thoughts.

    Posted: 12 Jan 2022 06:40 PM PST

    So I've been meaning to diversify my portfolio to emerging markets and have been tracking the Indian markets since last year as a potential market I could invest in. I see their stock market has been blowing up for the past few years breaking new highs almost every month. I was looking at a few ETFs like the MSCI India ETF but am also super interested in investing in Individual stocks like Reliance etc.

    I've also been looking at IPOs and a lot of the Unicorns that have propped up in India due to crazy valuations and money being poured in by VCs are going to IPO this year. I'm planning on putting a lot money in such kind of IPOs

    Looking for advice from US residents who are investing in Indian markets and people who have been planning on doing so

    submitted by /u/curlypretzel
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    How do I get access to less developed markets?

    Posted: 13 Jan 2022 01:32 AM PST

    Hello,

    Basically I've been interested in investing some capital in less developed markets as a longer term thing. How do I really get access to these though? I'm thinking markets such as Greece, the ATHEX, or the Mexican market, Bolsa Mexicana de Valores. Perhaps even some African markets. I've looked at the multiple brokers within the UK and don't really see the opportunity to get to these markets.

    Thanks.

    submitted by /u/kr595
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    How diversified is your portfolio, and what is your most “unique” investable asset you own?

    Posted: 13 Jan 2022 05:14 AM PST

    Personally I feel like I'm well diversified, I have around 30% Crypto, 30% Stocks, 20% Real Estate (current equity, % goes up as I pay off mortgage, and the rest is dispersed between cash, precious metals and general collectors items that have appreciated over time.

    My most interesting items would be a decent assortment of comic books I own, many with 1st appearances of various characters. The hype of the MCU has made the price of many issues of comic books appreciate nicely, so I have always considered that an investment of sorts. Of course not an investment as solid as stocks or Real Estate, but done right, I consider it an investment. What's your unique investment items? Pokémon cards count too lol

    submitted by /u/Jcook_14
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    Tips having negative yield?

    Posted: 12 Jan 2022 10:44 AM PST

    Hey Im sitting on some cash and don't want to lose a bunch to inflation so I was thinking about TIPS, but when I look at them for a 1 year maturity on fidelity they have a -3.243 percent yield to worst and yield to maturity.. what does this mean? That If I buy them I will lose 3 percent no matter what? Why would anyone buy them then, how would the market settle on a price that gurantees a 3 percent loss? Or is it that they're accepting that loss out of fear of bigger losses due to inflation? Any help is appreciated

    submitted by /u/Alitinconcho
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    The Intelligent Investor in 2022 - Some Questions

    Posted: 13 Jan 2022 12:11 AM PST

    EDIT: I am really sorry if this pops up everywhere. The automoderator removed the post so I started asking the same question in the daily discussion threads.

    ---

    Hi there.

    I am currently reading Graham's "Intelligent Investor" for the first time. Disclaimer: I am not done reading yet! So far it answers a lot of questions of mine as a newbie investor, but one keeps emerging due to the current situation:

    If I understand correctly Graham proposes a 50:50 split between stocks and bonds for the defensive investor (with 25min 75max for each). I try to follow his wisdom and started searching for "high grade bonds". Being from Europe - the first thing that came into my mind was German Federal bonds - rock solid, so they must qualify as high grade.

    Well, a 10y bond currently pays 0.0% interest and a buy-in now would equate to a slightly net negative investment. Wondering, who would actually buy into this, the only entities I could think of are institutional cash holders that would otherwise be charged heavy negative interests by their banks.

    While I am aware that there are corporate bonds etc. - do they really qualify as high grade? since they come with a significant risk, do they not?

    Now the questions arise: Am I missing something here? Are there bonds which qualify as high grade but pay a reasonable (read: close to inflation levels) interest? Or am I to take Grahams advice in the sense of "do divide your portfolio into stocks and something uncorrelated and potentially independent of the stock market" - in this case I would just leave money on my bank account at 0% interest - right?

    Thank you for your efforts!

    submitted by /u/TenYearsOfLurking
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    Choosing a brokerage account after leaving the US

    Posted: 12 Jan 2022 11:16 AM PST

    I am a UK citizen living in the US as a non-resident alien and I have a Fidelity brokerage account.

    I will soon be leaving the US to go home to the UK. I understand that Fidelity will liquidate my assets when they realise that I am gone, so I am planning on opening a new brokerage account that will let me keep my US investments while abroad.

    Which brokerage account is best for this situation? I know Charles Schwab have an international brokerage account that requires having >$25k investments. I also read that IBKR is the most popular account, but I don't know if that is true for my situation.

    Any guidance is appreciated!

    submitted by /u/Baz_Morty
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