Daily General Discussion and Advice Thread - February 25, 2022 Investing |
- Daily General Discussion and Advice Thread - February 25, 2022
- China lifts restrictions on Russian wheat imports
- Why is it unlikely now that the FED raises rates (as high as mentioned)? Given current events..
- What's a good place to store your emergency fund ?
- Is it just me or did the markets turn around fairly quickly?
- Is it unwise to invest in a rental property before owning a home to live in?
- When beginning investing, should I begin with I bonds, or maybe index funds?
- Working Around Terrible Workplace Retirement Plans?
- How much do you put in unconventional investments?
- My company's 401K plans doesn't allow me to buy individual stocks, can I change out?
- What is making people think the fed is less likely to raise rates as high as before?
- Bitcoin is not the new gold
- Short and long term hedging strategies for buying and selling real estate?
- GLDM reverse split and "cash in lieu"
- Discouraged about progress
- Why is tech going up today?
- Coinbase posts big revenue beat but expects trading volume to fall in Q1
- Moscow Exchange Suspended
- 401k Managed Through Financial Engines (Edelman)
- Do people sell and re buy stuff like s&p 500 ?
- Lithium Bank to IPO as US need for North American Li grows ($LBNK)
- FOR THOSE THAT ACTIVELY BUILT CREDIT FROM NO CREDIT HOW LONG DID IT TAKE TO GET A 700, 750, AND 800 (IF APPLICABLE)
- Did the fed wait too long?
- Roast My Portfolio Construction
- Is the S&P 500 still overpriced? CAPE PE says it is, but, why should I use that and not a forward PE?
| Daily General Discussion and Advice Thread - February 25, 2022 Posted: 25 Feb 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:
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! [link] [comments] |
| China lifts restrictions on Russian wheat imports Posted: 25 Feb 2022 04:22 PM PST China lifts restrictions on Russian wheat imports China has relaxed restrictions on imports of Russian wheat, a move that could address food security concerns in the world's second largest economy and ease the impact of Western sanctions on Russia. The decision to allow imports of wheat from all regions of Russia was made during Russian President Vladimir Putin's visit to Beijing earlier this month, but the details were only announced by China's customs administration this week. Russia is the world's top producer of wheat. Previously, China had restricted wheat imports from Russia due to concerns about the presence of dwarf bunt fungus — a disease that can cause severe loss of yield for wheat and other crops — in some parts of the country. China has refused to condemn Russia's attack on Ukraine, instead repeating calls for parties to "exercise restraint" and accusing the United States of "fueling fire" in the region [link] [comments] |
| Why is it unlikely now that the FED raises rates (as high as mentioned)? Given current events.. Posted: 25 Feb 2022 12:13 PM PST So inflation is high already. Increasing energy prices will fuel further inflation and my monkey brain tells me that higher rates counter that. If the FED is not going to do what they said they would do few weeks ago, meaning raising rates many times in 2022, wouldn't inflation go off the roof? I don't get it. [link] [comments] |
| What's a good place to store your emergency fund ? Posted: 25 Feb 2022 09:43 AM PST I have gotten a decent amount saved up for an emergency fund and I'm thinking about just moving that to a separate account, such as a high yield savings account or treasuries, since even high yield savings accounts arent very "high yielding". Where do you store your emergency funds? [link] [comments] |
| Is it just me or did the markets turn around fairly quickly? Posted: 25 Feb 2022 12:19 AM PST I noticed that yesterday, early, the markets crashed. Which seemed reasonable. Later that day losses reduced and some assets turned even positive (crypto, NASDAQ shares, …) Apparently there is a correlation with sanctions that were brought upon Russia. However that is not gonna change much. Is it a case of correlation is not causation? Cause to me it seems more that people bought the dip and already adapted to the new reality of a seemingly local war. Honestly I expected a few more days of price dropping. Curious about your thoughts…. [link] [comments] |
| Is it unwise to invest in a rental property before owning a home to live in? Posted: 25 Feb 2022 04:10 PM PST question is what it says in the title: Basically I feel very priced out of the region where I live in terms of a house to live in, but considering I live in a high cost-of-living area, I'm less priced out of lower C-O-L places, especially if I look at little 1bd 1ba cabin type properties. It seems like a decent idea to buy an affordable cabin type area and make it a vacation rental. That way I own some property that seems like a decent investment in general, but also eventually it'll be a revenue stream, and I'd imagine it could help in securing a mortgage for a home I want to live in. this seems like a pretty atypical route to home ownership, but it kinda makes sense in my head. Am I completely wrong? [link] [comments] |
| When beginning investing, should I begin with I bonds, or maybe index funds? Posted: 25 Feb 2022 06:25 PM PST Which would make a great initial investment? I'm looking to start with 1k and invest it somewhere. I was thinking I bonds, but I know index funds are an excellent option. I was under the impression I needed around 4k for index fund initial investment. I only have 1k right now to play with, but more in the future, so I'm asking what is your opinion on starting investments. [link] [comments] |
| Working Around Terrible Workplace Retirement Plans? Posted: 25 Feb 2022 01:47 PM PST Hi, everyone. I've noticed that in my industry (public/nonprofit sector), the companies who manage 403(b) retirement accounts all have forced investment choices that are garbage. The only options available for contribution at any job I've had are a small group of incredibly high fee annuities. The lowest fee options I've ever seen are 0.35%, which is frankly absurd. I'm in my early 30s, so my approach until now has been to choose the lowest fee account of 100% equities and only contribute the bare minimum salary for maximum corporate match. None of the annuities in my 403(b) have ever outperformed my own personal mix of ETFs, indexes, and stocks in my Roth IRA and personal investment account. These are my "real" retirement accounts that I contribute the most to. I don't particularly have a complex portfolio, either: Most of my money is in VOO, VTI, QQQ, and various individual blue chip stocks. I'm wondering if any of you have also had similar experiences with retirement accounts. Or, perhaps there's a better approach I can take with my company retirement account to avoid these crazy annuities? Thank you! [link] [comments] |
| How much do you put in unconventional investments? Posted: 25 Feb 2022 06:48 AM PST I was wondering about what alternative/non-traditional investments do people here invest in. Most people invest in stocks and bonds. I'm wondering how much if anything any of you have invested in other things? Have you hopped on the crypto bandwagon? P2P lending? Collectables? I have invested 30% of my wealth in stocks and 5% in Bitcoin. I own a condo that i rent out, and currently looking to purchase a second investment property. I'm looking for alternative forms of investment. I want to get a feel for what else people here are investing in. Have any of you found non-traditional investment opportunities? [link] [comments] |
| My company's 401K plans doesn't allow me to buy individual stocks, can I change out? Posted: 25 Feb 2022 09:55 PM PST My company provides a 401k and my contributions are deposited in an account with ABG. ABG only gives a range of mutual funds and one index fund as choices, all with bullshit fees. Is there some way I can transfer this to my own personal 401k with Fidelity and buy individual stocks instead? [link] [comments] |
| What is making people think the fed is less likely to raise rates as high as before? Posted: 25 Feb 2022 06:32 PM PST If any satisfactory change is to be seen from all the sanctions placed on Russia, it would take sanctions that are inevitably going to hurt the rest of the world economy. Whether or not politicians will go ahead with those sanctions, such as cutting Russia off from SWIFT, we don't know, but anything they will do will also impact those imposing sanctions through higher costs. With inflation the main reason that the Fed was going to raise rates, why would anyone expect that to change now, especially if there is a likely chance inflation could get worse? If there is something I am missing in my theory, please let me know, I am just trying to learn. [link] [comments] |
| Posted: 24 Feb 2022 07:10 AM PST While today is only one day, I think that it pretty dramatically shows that bitcoin is not the new gold, as a lot of its proponents claim. As of 10am EST this morning, bitcoin is down about 7% while gold is up about 2%. Something like a Russian attack on Ukraine is what people have in mind when thinking about a black swan-type event, but bitcoin has only magnified losses. Instead of acting like an uncorrelated asset, bitcoin basically just acts like a super high-beta tech stock. Not saying anything about what will make anyone more money going forward, but I think any rationale to have bitcoin to improve portfolio diversification is mostly a fiction. Edit: the time is now 355pm EST, and stock markets, bitcoin, and gold have dramatically reversed this afternoon (SPY +1.5%, QQQ +%3, BTC +%2%, gold -0.5%). This basically just proves my point. The point isn't that bitcoin will not make money in the future (it might, I have no idea), the point is that bitcoin is very correlated with tech stocks instead of being an uncorrelated asset like gold. The action today reinforces that idea. [link] [comments] |
| Short and long term hedging strategies for buying and selling real estate? Posted: 25 Feb 2022 05:43 AM PST Just wondering how one might (using ETFs/REITs/stocks) build a hedge portfolio to either maintain exposure to the broader housing market after selling real estate- or to reduce exposure to the market after buying real estate. For example, let's say we're selling off some properties in today's market, and could potentially be on the sidelines holding cash for a period of anywhere between 6 months and a 2 years. Where else could we park those funds if we want to keep that housing market exposure and believe that housing will continue to rise faster than inflation over that period of time? Conversely, let's say we're buying properties in today's market with the intention to sell in the next 5 years. Accepting the risk that housing might continue to rise over that period, what portfolio would hedge our real estate investment if we believe a sharp decline is likely to occur over that same 5 years, but would be nonetheless be forced to sell at a potential loss? Edit: I suppose I'm asking what a "straddle" on the housing market might look like if we believe the market will go either up or down, and is unlikely to go sideways. What would that straddle look like with one side of it being property ownership? [link] [comments] |
| GLDM reverse split and "cash in lieu" Posted: 25 Feb 2022 08:35 AM PST GLDM did a one-for-two reverse split on 2/24/2022, with the stated purpose of reducing costs for shareholders. The ETF's ER was also dropped from 0.18% to 0.10%. If you have a position in GLDM and had anything other than an even number of shares, you should have received a few dollars in "cash in lieu" in your account. I had an odd number of shares and found $18.75 in cash in my account. Small potatoes but for those of us who like to stay fully invested that cash needs a new home. [link] [comments] |
| Posted: 25 Feb 2022 02:29 PM PST I've only been investing for a year and a half or so. In my mid 20's. Does anyone else get discouraged when they see other new investors talking about how they've "put away $20,000 this year". I'm not giving up or anything, but it kind of feels pointless. Like I'm an average joe running at the Olympics. My actual question: How do you keep your motivation to continually learn and research when you're not making very much money for your time? If I had just worked my day job for all the time I spent researching what to buy, I'd probably be further in the green right now. **Thanks for all the responses guys! You've put me at ease a little. [link] [comments] |
| Posted: 24 Feb 2022 11:36 AM PST In pre-market trading, the big names in tech had all dropped by 3-5% after the news of the Ukraine invasion broke. Now they're all 2-3% up from yesterday's close (except Apple, which is at about 0% change). Why would market sentiment flip this drastically over the course of just today? [link] [comments] |
| Coinbase posts big revenue beat but expects trading volume to fall in Q1 Posted: 24 Feb 2022 02:10 PM PST Article: https://www.cnbc.com/2022/02/24/coinbase-coin-earnings-q4-2021-.html
Personal take: $COIN is a bit of an oddball in terms of growth stock. On one hand it suffers all the volatility associated with the cryptocurrency market, but on the other hand it's got a P/E ratio that is half of $AAPL. It is also investing in ancillary revenue channels beyond trading fees, which is good for diversification but is still fundamentally tied to the staying power and public interest of the crypto space. Disclosure I have a long position in $COIN that is currently underwater. [link] [comments] |
| Posted: 23 Feb 2022 09:46 PM PST MOSCOW, February 24. /TASS/. Trading on the Moscow Exchange has been suspended because the ruble and the Russian stock market fell to limits set by the Exchange. "Trading has been suspended on all markets. Notification about resumption will be given further," the Exchange's press service said. [link] [comments] |
| 401k Managed Through Financial Engines (Edelman) Posted: 24 Feb 2022 05:11 PM PST Hello, I am an engineer in aerospace and make about 94k a year. I put 10% into my company provided 401k and they put in 14%. I have been paying Edelman Financial Engines to manage my portfolio for the past year or so. My roommates brother mentioned that you really only need to do 100% S&P 500 index fund. I've heard Warren Buffet say this before so I am wondering if I am doing it wrong. The Financial Engines company picks and sells stock based on market conditions. I noticed their picks yielded a 22% return last year Am I needlessly giving money away? I read in addition to my friends brother and Buffer that "almost no financial advisor can out perform the S&P500". I know that my fees are probably higher, but I thought that maybe if I paid them a little, their gains could outperform any fees. Is it risky to go 100% S&P500 Index Fund? Or should I let the Financial Engines through Edelman manage my account? What do you think? What do you do for your 401k picks? Thank you in advance. [link] [comments] |
| Do people sell and re buy stuff like s&p 500 ? Posted: 25 Feb 2022 02:38 PM PST Hi guys, so I've had about 3k put into s&p from putting money into it the last couple months it was doing well up 12% at one point and now I'm -3% I know there is meant to be dips etc like once a year it drops from what I've heard although I'm now nervous with this war stuff going on ..... I know you can't give financial advice but is there anything I should read into or any insight on what my risks really are or should do with all things considered right now ? I read your best to hold and just keep buying as works out in long run however Cant exactly predict a fucking war. Also do people actually sell and re buy there s&p 500 just like how folk do with their cryptos ? Thanks [link] [comments] |
| Lithium Bank to IPO as US need for North American Li grows ($LBNK) Posted: 24 Feb 2022 02:52 PM PST As this CNN article details, the US is in desperate need of a secure lithium supply in North America. https://www.cnn.com/2022/02/22/cars/electric-vehicle-battery-supply-chain/index.html One Canadian Li exploration company that I think could eventually meet this demand is Lithium Bank. Lithium Bank is expected to IPO under the ticker $LBNK / $LBNK.V on the TSXV Its flagship property is Sturgeon Lake which is estimated to have an average lithium concentration of 67.1 mg/l and to contain 5.97M tonnes of LCE. Additionally, the property is located only 270km outside of Edmonton, Alberta making it much more accessible than other projects. $LBNK is also expected to produce a PEA for the property which I'm hoping will come out after the IPO as a possible catalyst for the company. I'm still trying to find out what the exact IPO date and the starting price is, will update y'all when/if I find out. Definitely an IPO to keep an eye out for IMO! [link] [comments] |
| Posted: 25 Feb 2022 05:49 PM PST I want to get an idea of how fast I can expect my score to increase to fund a business. If you remember, what was your credit mix. Please mention it if you had the following:
Also if you used a rent reporting service to build credit did it help with credit card approvals (few credit issuers pull FICO and many FICO scores exclude rent reporting) Which cards give the highest initial limits for Very Good/Excellent credit (+740)? Should I expect a higher credit from a business loans or multiple high limit credit cards? [link] [comments] |
| Posted: 24 Feb 2022 06:50 AM PST It looks like the fed were waiting to engineer a 'perfect landing' from low interest rates. As inflation continued to rise starting March 2021 @ 2.6% and ending the year Dec @ 7% (https://stocksera.pythonanywhere.com/inflation/) They continued to push back from moving rates up by even .25% when they have been sitting at emergency levels for 2 years. They wanted to protect the markets, real estate and even employment -- but those were at all time highs. In a perfect world, I guess what they wanted to do made sense. But clearly we don't live in that world and who knows what else could come this year. Now Brent Oil hit $105 earlier today and prices for most everything regular people use are way up. It seems like most Wheat comes from the region. This move from Russia will exacerbate inflation and who knows what else. This is already having global effects. What moves do the feds have now to help the people? Do they still raise in March? What does it normally look like in times of political stability? What's the best way to invest through this year? Is cash back? [link] [comments] |
| Roast My Portfolio Construction Posted: 25 Feb 2022 10:24 AM PST Hello, I am a genius, prove me wrong: BRK 50%GOOG 17%QQQ 15%CMCSA 6%NTDOY 5%BABA 2%IEMG 1%Cash remainder Since the bots require 250 characters and accuse me of not putting in effort - I assure you that I toiled - I will elaborate. Allow me to dazzle you with my reasoning. Firstly, I am allocating according to a Kelly Distribution for simultaneous bets. This formula claims to maximize wealth accumulation. That being said, I do not follow that distribution closely, since I overbought Berkshire now (more on that later) and will rebalance as I accumulate. As you all know, a portfolio is a living thing. Unlike the bogleheads, I am not some passive zombie, nor do I benefit from the luxury of American index offerings, which prevent steady accumulation via fees. I am Canadian and the Bank of Montreal offers a select few ETFs that trade for no commission. Additionally, the fees are slightly higher. Fine. Estate taxes, gambits etc. complicate things and we could talk minimax for hours (but not forever). Berkshire is the greatest wealth preserving machine ever. My thesis is that Berkshire is anti-entropic and that, rather than accumulate, it simply remains and in remaining appreciates in value relative to all else. I bought a ton because it's the best. I sometimes think I should just be 100% Berkshire. Google is this century's Berkshire Hathaway. The going idea is that it is an advertising company, which I find counter-counter-intuitive. In reality, Google is like a utility company with heavy R&D. Specifically, it is like a modern radio/cable company in that it has 'purchased' a portion of the 'spectrum' of AI capabilities. It has a super income and invests it smartly, but different from Berkshire. It buys the kind of stuff Warren's lieutenants would buy if they had a technological circle of competence. The Nasdaq 100's greatest weakness is that companies can choose to not list on it. Where the entire investing world is skittish because of 1999, I find it hard to believe that a company will come out of nowhere and supplant the most informed, well-connected and intelligent people on Earth in a matter of days. In all likelihood, these companies (FAAAM) will invest in or own them! Sure, we can talk computational arms race, but that's another thing. Comcast.... In short, cable is to information what rail is to stuff. Love it or hate it, this thing will last longer than anyone can imagine. It was a tough choice bw Verizon, AT&T, Liberty and some others, but I ultimately went w Comcast bc it connects w my other holdings, is monopolistic, has a moat and diverse revenues that are being laughed off rn. Consider this: poor people reproduce faster, they will have to use Comcast, they will get drunk and watch sports. This is forever or until humankind evolves spiritually, so forever. Nintendo is a technology company that develops gold-standard IP and has a mountain of cash. Japanese companies have adapted their practices to prevent death by banker and I like that. Another thing a lot of people haven't factored into Nintendo is that, if you actually play the games, there is often a story-line that goes like this: a secret organization has, finds or builds a magical technology and tries to take over the world but the hero stops them. Nintendo is the embodiment of both the hidden high-tech enemy and the spirit of their heroes. There are many little secrets that add up to something special, even in their holdings. The idea that there are hidden factors to some companies is part of my strategy... Google, as an obvious example, is so strategically important that it simply can't tell investor's what's going on. Alibaba is a no-brainer. Have you seen this thing? It's like Amazon, Facebook and Costco had a baby. It skipped all the growing pains of the recent American economy and jumped into the future. Also, it is trading at supreme lows on propaganda. Consider this, US tech companies also suffer under similar regulations, even internationally. What evidence do you have that China is more likely to erase these companies than AOC and E Warren are to erase Google? However, I'm not a madman so I only have a small portion but heck, I'm seriously considering more. ZEM... China, Samsung! Cash because I am just thinking. HDFC Bank is on my radar, so are Tencent, Farifax, ABB. I may add to my existing positions. As far as I can tell Berkshire is about 20% undervalued, and 20% is more than enough for me. So, there you go. Sharpen your weapons. [link] [comments] |
| Posted: 24 Feb 2022 04:11 AM PST Let's assume we see another drop off in the coming days of ~2% - 5%, would this mean the S&P 500 is still over priced? If not, what price would the S&P 500 need to be to be considered a "good" price? The most current historic CAPE PE that I could find is 34.9, which is 74% over the normal average (using the average of the past 10 years earnings...), so on that measure, yes it's still quite expensive vs historic valuations. However if you look at the S&P 500 P/E Ratio Forward Estimate, it's 22.35, and this is using a December valuation (I can't find a more current one, but I imagine it would be even lower now?). Surely in times where there has been strong growth, like the last 10 years, using a forward looking measure using current earnings will give a better / more accurate indicator of the true valuation vs using a 10 year average? And anything below a 20 PE since 1990s doesn't seem too bad of a price point? Or am I missing something here? [link] [comments] |
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