Daily General Discussion and Advice Thread - February 21, 2022 Investing |
- Daily General Discussion and Advice Thread - February 21, 2022
- Russian Banking System to be Closed Off From USD if Russia Invades Ukraine (Reuters)
- Cash margin loan understanding
- Are wash sale rules year round?
- Why Netflix over Cliq Digital?
- Will QT lead to bear steepening or bear flattening?
- An open question on the viability of investment into gold and silver.
- Index stocks - could making 8-10% really be that easy?
- Using my investments to reward or punish companies
| Daily General Discussion and Advice Thread - February 21, 2022 Posted: 21 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] |
| Russian Banking System to be Closed Off From USD if Russia Invades Ukraine (Reuters) Posted: 20 Feb 2022 09:08 PM PST Per Reuters (2258 EST):
The implications are significant, given that VTB, Gazprombank and Sberbank collectively represent over 40% of the Russian economy. UK Prime Minister Boris Johnson, in meetings with President Macron of France and President Biden of the United States, has also introduced the possibility of similar sanctions; Russia could be cut off from two of the three Central Banking currencies if they invade Ukraine. Russian markets closed down -4.3% on Friday, 18 Feb, though U.S. futures rebounded slightly Sunday evening after news broke of a proposed summit between Putin, Biden and Macron, provided Russia does not invade Ukraine. [link] [comments] |
| Cash margin loan understanding Posted: 21 Feb 2022 08:27 AM PST Hello, I wanted to better understand the math on margin loans if used as a cash loan. All the examples on the internet assume margin is being used to buy more securities when instead I want to use as an emergency fund . Let's assume 50% initial margin and 25% maintenance margin and a 100k taxable brokerage account in VTSAX. So I can borrow up to 50% of the asset value in margin, which means I can take out a 50k loan? Usually if you invest the margin in VTSAX as well it is a 100k but since this is a cash loan the amount is lower right? Next the investor own money must comprise of at least 25% of the security value. In a typical example of buying 100k assets with 50k margin and 50k cash, the margin call would happen if the asset value feel below 66.7k. That is true here as well with our 100k cash / 50k cash loan example as well, right? So if VTSAX fell 33% I would have a margin call. Please let me know if my math is incorrect. Thanks a lot [link] [comments] |
| Are wash sale rules year round? Posted: 20 Feb 2022 11:41 PM PST Do the wash sale rules apply all year long or only in the final months of the year? It seems crazy that I can't sell a long position, when fundamentals shift, and then rebuy after a lower appropriate price is reached, assuming that first sale hit a loss. I'm clearly misunderstanding something and would appreciate clarification. Thanks [link] [comments] |
| Why Netflix over Cliq Digital? Posted: 21 Feb 2022 07:48 AM PST I read a lot about people waiting for Netflix to bounce up again. But way wait not look for other companies who are providing better dial, are under valued and has a a lot of room to grow as potential. I look at the results of Cliq Digital that for almost the same price of Netflix they offer not only films (including one free blockbuster per month) but also music, sports (including many nations sport league competitions), games and Digital books. With one account the customer can enjoy it in five devices at once. When look at their financial their profits have been growing every quarter. They projects that in the next 10 years the market for digital stream content will double. When facing both options, why would a potencial customer choose Netflix over Cliq Digital? With the later it is like having many stream services for the price of one. So why people people prefer to invest in Netflix instead of Cliq Digital? [link] [comments] |
| Will QT lead to bear steepening or bear flattening? Posted: 21 Feb 2022 12:48 AM PST Hope someone will be able to help me with this confusion: Does QT lead to bear steepening or bear flattening? i.e. when QT starts, would you go long 10Y-3M (or 10Y-2Y) spread or short it? Background: So during QE, the fed buys shit ton of long tenor treasuries like 10Y and beyond. So QT would imply that the Fed will sell off these treasuries. So wouldn't this imply that 10Y yields will go up around QT and lead to bear steepening? However whenever I read online, it always points to the idea that QT leads to bear flattening i.e. short term yields go even further up, compared to long term yields. One reason I could think for that - when the Fed bought 10Y bonds for QE sometime ago, those bonds now are not 10Y but say 8Y maturities since time passed by lol. So effectively they will be selling off slightly lower tenor maturity. But then this is not a very strong argument since the maturity wont change by much. So the confusion still remains, why wouldn't QT lead to bear steepening? So I guess the question is, is the FF rate hike more strong in its impact than selling off of long tenor treasuries. This is bcs QT will happen during the rate hike cycle. [link] [comments] |
| An open question on the viability of investment into gold and silver. Posted: 20 Feb 2022 07:49 PM PST That is to ask, is it a sound investment in the now, given the current state of the economy, to invest directly in small amounts of Gold and Silver to keep? I have come to understand that precious metals can be a pretty stable investment, but I wanted to check here to get advice from a more in-the-know crowd. I suppose I'm looking for a nice stable long-term investment, and I figured silver and gold might be the best options, at least given what I've read. Any advice, or alternative suggestions for that matter, are appreciated immensely. [link] [comments] |
| Index stocks - could making 8-10% really be that easy? Posted: 20 Feb 2022 10:34 PM PST I'm into crypto but am looking at stocks at the moment as there are a few i'm keen on getting invested in. During my research i've come across tonnes of people claiming they put their money in an index fund and basically get a guaranteed 8-10% yearly interest on their investment. What's the catch? Surely it can't be that easy? I know property guys who sing the praises of making 6% rental yield or making 15% on their property after having a load of legal stuff to wade through, a renovation to complete, and tenants to vet. Why is anyone bothering doing that if index funds will bring a decent steady income? Do i have it all wrong? Please, enlighten me wise ones. [link] [comments] |
| Using my investments to reward or punish companies Posted: 20 Feb 2022 09:24 AM PST Looking for some general advice about how this might be possible... I would like the money I invest to have some impact on the companies I invest in. I want to support (and, if possible, reward) companies that engage in ethical practices, and punish those that are willfully unethical. I know that one thing I can do is vote my shares, but I'm a small time investor and my 5-10 shares in a given company don't mean much if I'm opposed by top execs who have more shares in the company than I have digits in my bank account. Of course it's also an option for me to sell any shares I have in unethical companies, and buy into ethical ones (or into funds that invest in more ethical companies), but does this actually have any effect on those companies? Or is it just me choosing to pin my fortunes to those who have already made decisions that I agree with? So my question for all of you who have more experience in this world than I do (and that's probably most of you) is what else can I do here? If Company X is stealing money from orphans and veterans to pay for building a giant billboard on the moon, and government regulators are okay with this, what are my options as one tiny member of the great Free Market? And on the other hand, when Company Y declares that they are cutting corporate pay to make sure that all of their employees can get solidly middle class salaries without sacrificing the quality of their products, how can I use my investments to let them know that I approve? [link] [comments] |
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