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    Daily General Discussion and Advice Thread - January 26, 2022 Investing

    Daily General Discussion and Advice Thread - January 26, 2022 Investing


    Daily General Discussion and Advice Thread - January 26, 2022

    Posted: 26 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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    Microsoft tops analysts' expectations in Q2 as cloud revenue soars 46%

    Posted: 26 Jan 2022 06:03 AM PST

    Revenue: $51.7 billion versus $50.9 billion expected

    Earnings per share: $2.48 versus $2.31 expected

    Intelligent Cloud: $18.3 billion versus $18.3 billion expected

    Productivity & Business Processes: $15.9 billion versus $15.9 billion expected

    More Personal Computing: $17.4 billion versus $16.7 billion expected

    Shares of Microsoft were off more than 3% following the announcement.

    While the company reported that Azure and other cloud services revenue grew by 46%, that was slightly down from Q1 when Microsoft reported 50% growth in the category.

    "As tech as a percentage of global GDP continues to increase, we are innovating and investing across diverse and growing markets, with a common underlying technology stack and an operating model that reinforces a common strategy, culture, and sense of purpose," Microsoft CEO Satya Nadella said in a statement.

    Microsoft, which was named Yahoo Finance's Company of the Year for 2021 due to its impressive stock performance and cloud business, has seen its stock price slide as of late. Shares have fallen from a Nov. 15 high of $343.11 per share to $291.52 at the market open on Tuesday.

    submitted by /u/IamLeven
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    S&P500 vs US Small Cap Historical Returns

    Posted: 26 Jan 2022 12:16 AM PST

    I'm trying to get into investing after being terrible with money for the start of my adult life. I'm 30 now and realize the need for serious planning. I have read The Little Book of Common Sense Investing by John Bogle which seems to summarize down to, leave your money in an S&P500 fund, keep paying into it until you are ready to retire, take profits out only at retirement. The data presented in the book was quite compelling which had me thinking if an S&P500 ETF was the optimal choice in long term investing.

    I started looking into historical returns, going back from the early 50s to the end of 2019 before the pandemic started. What I found out from these 70 years of returns was that although the S&P500 is an incredible investment long term, investing specifically in US Small Cap stocks would yield over double the returns over the same time period.

    Someone please tell me if I'm incorrect because I'm still new to all this, but assuming that is correct, would it not be ideal to focus on small cap US stocks? Obviously the big drawback is the increased volatility of small caps (S&P500 has been winning out in the recent short-term), but with a longer time horizon I feel like this is the way to go to optimize returns.

    What are your thoughts?

    submitted by /u/ThePeoplesResistance
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