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jamescalam

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investing

IRA withdrawal tax questions

Hello, I understand it’s not a good idea to take money out of IRA. But sometimes shit happens and you need cash. My question is regarding tax. If I chose to pay 35% tax upon withdrawal of the fund, will I still owe more at the end of the year? Thank you

t3_uaz3dc

investing

Why does Vanguard seem to be the only brokerage that doesn't offer pledged asset loans?

Both ETrade and Charles Schwab will let you take out loans against your holdings at super low rates. This is convenient for short term expenses: you don't have to sell stuff and pay capital gains, and your holdings can continue to grow. For some reason Vanguard doesn't offer this at all, the closest they can get is a max of $50k against your 401k, and a margin account (which has way higher rates and other tax implications).

t3_uay0jr

investing

SMG: Value or Value Trap?

Ticker: SMG Scott's Miracle Grow [https://finviz.com/quote.ashx?t=SMG&ty=c&ta=1&p=d](https://finviz.com/quote.ashx?t=SMG&ty=c&ta=1&p=d) \-P/E Ratio: of 11.72 (Historically SSMG has been above 15) \-Debt to Equity Ratio of 3.90 \-They don't seem to have a lot of cash on hand [https://www.macrotrends.net/stocks/charts/SMG/scotts-miracle-gro/cash-on-hand](https://www.macrotrends.net/stocks/charts/SMG/scotts-miracle-gro/cash-on-hand) \-They have a portion of the business as Hawthorne, which supplies marijuana growers with equipment. Its possible this portion of the companies breaks away from SMG in the future (from last earning call) trading at $105 Is it value or value trap?

t3_uaxck4

investing

shorting the market crash

So everybody and their mother knows the market is about to blow. But holding cash doesn't seem right with high inflation actively devaluing our savings. So I want to actively short the crash to strike a profit. What needs to be done. Spy puts? Or should I try a leveraged bear ETF like SQQ? Or maybe even short stocks directly?

t3_uat6l2

investing

Is the Mutual Fund NAV the average SE between all collected companies?

Considering that the NAV is calculated as ( total value of all the cash and securities (assets) - liabilities)/ Shares outstanding, which is the same as Net-assets or SE / shares outstanding. I can't seem to find any confirmation for this and am genuinly curious if that is what it is.

t3_uaroyg

investing

Clarity on CD Interest Payments

Good morning, CD terms are giving me a headache. I could use some help understanding how interest is paid out. Here are the details of one investment I am looking at, a 2 year CD: [Pay Frequency](https://scs.fidelity.com/webxpress/help/topics/help_definition_p.shtml#paymentfrequency)MONTHLY [Coupon](https://scs.fidelity.com/webxpress/help/topics/help_definition_c.shtml#coupon)2.700 [Maturity Date](https://scs.fidelity.com/webxpress/help/topics/help_definition_m.shtml#maturitydate)05/06/2024 [Bond Type](https://scs.fidelity.com/webxpress/help/topics/help_definition_b.shtml#bondtype)CD [Interest Accrual Date](https://scs.fidelity.com/webxpress/help/topics/help_definition_i.shtml#interestaccrualdate)05/04/2022 If I buy one of these for $1000, am I to understand that: a) I will be paid $27 (2.7% of 1000) total each **year**, and some fraction of that amount each month until maturity OR b) I will be paid $27 each **month** until maturity One of these outcomes is much better than the other! But I do not want to leap into an investment on a misunderstanding! Thank you to anyone who reads and responds.

t3_uarm2u

investing

Daily General Discussion and Advice Thread - April 24, 2022

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](https://www.reddit.com/r/investing/about/sidebar) 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!

t3_uaqng5

investing

Where is Vanguard stock held?

I've heard that The Vanguard Group, Inc has an interesting structure, as described by Investopedia: > The company is owned by its funds. The company’s different funds are then owned by the shareholders. Thus, the shareholders are the true owners of Vanguard. I'm curious how this works and more importantly - how is this validated? I looked at SEC filings and when I looked up reports of fund investments I didn't see any funds owning The Vanguard Group, Inc. For example, lets look at the [Vanguard Explorer Fund Investor Shares \(VEXPX\)](https://investor.vanguard.com/mutual-funds/profile/overview/vexpx) SEC Document: [\[NPORT-P\] Monthly Portfolio Investments Report \(2022-04-01 00:00:00\)](https://sec.report/Document/0001752724-22-080508/) Am I missing something? (Completely possible - I'm no pro) I don't see how the company is owned by the funds - am I looking in the wrong place or how is this validated?

t3_ualmiy

investing

Where can I find historical earnings beats/misses?

Hello everyone, I was wondering if there was anywhere I can view earnings beats and misses as a statistic. After NFLX last week I'd like to be able to check before committing to earnings plays. I understand I can view earnings individually but I'm mostly looking for consistent earnings beats and misses in an easy to understand format. This has come to mind after NFLX earnings and wish I had a heavier position knowing now they had missed 14 of 16. Thanks in advance!

t3_uaku98

investing

combatting potential bad yr of investment growth

I recently got into investing..decided to use a robo advisor through Schwab to start me off in Dec. 2021. I do understand the portfolio set up for me....but it's not looking too great. I have a 401K and maxed out HSA. Already doing the right things there. I have 8 months in emergency savings. So, anyways, how are you battling the not so great market right now when it comes to your investments? I'm looking for guidance as I'm going to start breaking away from the roboadvisor. I have $3k remaining per month to invest.

t3_uakqg6

investing

Wash Sale Question TD Ameritrade

I am kinda new to wash sales. I bought an ETF for $14 a share; the DRIP over the course of a few months brought the price per share down to $13.71 (the ETF DRIPs at NAV which is lower than the share price). I ended up selling all my shares at a share price of $13.85 (for a profit). So while it was below the initial share price of $14; it was still higher than the cost basis share price including DRIP shares of $13.71. Then 2 weeks later, I buy more shares of the same ETF at a lower price and TD Ameritrade is calling it a wash sale. So even though the shares were sold for a profit, they were not sold at or above the initial share procurement price of $14. I tried to call TD Ameritrade today, but was told to call back Monday. I know the wash sale rules are a little vague, but wanted to see what you folks thought about this scenario.

t3_uak97o

investing

Can anyone help me understand Blackstone's offer for ACC and it's implications for me?

tl;dr, ACC is being bought out and I own quite a few shares--what implications does this have for me and what should I do right now? As per this article ([https://www.cnbc.com/2022/04/19/blackstone-to-buy-american-campus-communities-in-12point8-billion-deal.html](https://www.cnbc.com/2022/04/19/blackstone-to-buy-american-campus-communities-in-12point8-billion-deal.html)) " Blackstone will buy American Campus Communities for $12.8 billion \[...\] The per-share price of the all-cash deal is $65.47" I've liked this REIT for a long time and have been adding shares quarterly to my portfolio. Seems to be a good value and continues to be--the dividend it pays doesn't hurt either and has been on auto-reinvest. What exactly does this mean for me? If the deal goes through, will the shares disappear from my account and case appear? Will I get shares of Blackstone instead? If the price per-share is 65.47, but it is still trading lower (64.80 at last close) does it make any sense for me to buy into more shares next week as was originally planned? I'm not guaranteed a 67c per share markup when the deal goes through right? Otherwise everyone would be buying it at this "discount". Also, I'm guessing there will be another dividend payment before the deal is finalized so maybe buying does make sense? Any help is appreciated!

t3_uahp8q

investing

Increasing interest rates, P2P resurgence?

Over the past few years debt has been really cheap. As everyone knows, rates are going up with the fed saying a 50 basis point increase is possible to tame inflation, with more increases to come. With traditional lending becoming more and more expensive, I'd like to know everyone's opinion on P2P lending and if you think that it will make a comeback. I've been racking my brain trying to think of what could be the next "big investment" and am wondering if this is the route to go down. I have some history investing with Lending Club and it wasn't awful. I think I made around 5-6% after all of the defaults and charge-offs. I don't know if I have complete confidence in the market right now and think we could be heading towards some type of recession. One of the downsides of P2P is the length of time that your money is locked in but, if you have extra cash laying around maybe it's worth a shot? Would love to hear some opinions.

t3_uagew2

investing

My thoughts on current macroeconomic state

So the Federal Reserve is going to hike rates to cool the economy and inflation. Inflation itself will tamp down demand, and so will the rate hikes. Housing prices are already inflated, add in some rate hikes, the demand for housing should drop some, or at least not go up anymore. Unemployment numbers suggests a strong economy right now. So the rate hikes should not cause too much issue. At most mild recession. I am thinking of 2 scenarios regarding the stock market: 1) rate hikes till neutral (2%) or slightly above neutral (2.5-3%) and inflation gets controlled. Inflation and rate hikes are milder than believed. Stock market stabilizes and rebounds from current level and the doomsday scenario that some are parroting here, doesn't occur. 2) rate hikes way higher than neutral because inflation hard to control, PE compresses, stock market crashes. Inflation then gets under control and US economy enters severe recession. The Fed starts to lower rates again, PE expands again, those companies that survived the recession would see their stock price go back again. I think in either scenario the stock market will do fine over the medium term, whether its 2 or 5 years, and well in the longer term. If someone wants to invest today instead of waiting until the picture on rate hike and inflation clears up, they should not use margin at all and they should not use options, unless the stock market does crash and the price of good companies becomes absurdly good. But they must be absurdly good that only then do leveraging thru margin or options becomes far less risky and far more rewarding. Otherwise, simply having cash invested will allow you to take advantage of scenario 1 if things aren't as bad as thought, or ride out scenario 2. Having 100% cash will allow you to take advantage of scenario 2 but you may miss out on a good portion of scenario 1.

t3_uaec5v

investing

About exercising voting rights and points to vote for, any thoughts?

I'm starting to get voting forms for different companies I've invested into and some points are... off. Any thoughts on below? So, for example, our favourite dead horse we like to kick - $FB - voting letter proposes to vote **Against** Shareholder proposal regarding: report on lobbying human rights impact child sexual exploitation online report on community standards enforcement an independent chair etc. Basically, $FB does not want shareholders to know (recommending to vote "Against") what agreements they have with gov't (lobbying) or whether or not there is child porn on facebook or whether or not they sensor free speech (standards enforcement) or who is running the company (indep. chair)? It's not just FB, there are similar voting points in BRK, LMT, etc. that recomend voting Against those. Basically, they want us to vote against their transparancy and being honest with shareholders? Or am I misunderstanding something?

t3_ua9hd4

investing

How to $%#£ trade one stock for another on fidelity?!

Newbie question: I have an account in fidelity.com. It’s the weekend. I want to input an order for market open, to sell all I have of one stock, and use the proceeds to buy as many shares as possible of another stock. This has to be the 3rd most common trading desire in the world, but I cannot for the life of me find a way to do it on Fidelity without waiting two days for settled cash in my account and then noticing an e-mail notification that I’m allowed to place my new order. Do other brokerages allow “buy what you can when the money is available” orders? Do other brokerages allow a trade like this /without/ waiting two days in between?

t3_ua9fm5

investing

Best place to hold part of an emergency fund?

My wife and I are pretty diversified. We have solid 401k’s that we continue to contribute to, we have a personal investment fund with some stocks and lots of ETF’s that we drip into every month, we have a small savings (primarily for vacations and bills), and an additional emergency fund of about $70,000. With inflation that emergency fund is painful to hold. We’re thinking of cutting the fund down to 3 months worth money and stashing the rest somewhere safe but accessible (I.e. where we can move it over if need be without too much hassle. Doesn’t need to be overnight, but would want to access it within a week or so). Not trying to beat inflation here, just lessen it from holding cash. What are the options? Is there a way to hold bonds without actually purchasing long term bonds? Like bond ETF’s? I’ve been hearing about iBonds and was wondering thoughts on them or other ideas?

t3_ua8jth

investing

If you can't stomach S&P going to 2800, you should sell now

Although it would be brutal, it wouldn't be the first time S&P has full retraced a massive move over a long period of time I'm just putting out this PSA, because I can tell reading the hopium and copium here a lot of ya'll aren't prepared or hedged for that downside Also, consider and prepare for the economic implications of such a move (i.e. you losing your job) the downvote % should give you an understanding of why nobody respects this subreddit

t3_ua7x1k

investing

Daily General Discussion and Advice Thread - April 23, 2022

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](https://www.reddit.com/r/investing/about/sidebar) 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!

t3_ua19uj

investing

What is the next tech company that you believe will have negative growth or lose subscribers (like Facebook and Netflix)?

When Facebook and Netflix both posted the first time they lost subscribers for a quarter their stock dropped by 20-30% respectively. Maybe this will end up being a domino effect and more tech companies will follow suit. For example Amazon might’ve been a good bet. But unfortunately they’ve diversified to other areas like groceries, cloud computing, streaming, gaming, etc… What other tech companies do you believe are not diversified enough, that you believe will end up posting negative growth like Netflix and Facebook?

t3_ua044f

investing

Dow Tumbles Nearly 1,000 Points as Stocks Extend Selloff

https://www.wsj.com/articles/global-stocks-markets-dow-update-04-22-2022-11650613003?mod=hp_lead_pos1 Worries about slowing corporate earnings and the Federal Reserve’s plans to rapidly raise interest rates dragged the Dow industrials to their worst day since 2020. Investors this week parsed first-quarter financial results from a range of firms in search of clues about the health of the economy, the consumer outlook and companies’ ability to cope with inflation. Of the companies that have reported so far, about 80% have beat analyst expectations, according to FactSet, which has helped provide some stability to the U.S. stock market. “Usually when the economy’s slowing down, or there is a perception it’ll slow down, there are obvious sectors to hide in. Those traditional sectors aren’t as safe from an earnings basis as they are historically because they still are going to have negative impacts from inflation,” said Tavis McCourt, institutional equity strategist at Raymond James. The Dow Jones Industrial Average posted its worst one-day percentage change since October 2020, losing 981.36 points, or 2.8%, to close at 33811.40. The S&P 500 dropped 121.88 points, or 2.8%, to 4271.78, while the Nasdaq Composite fell 335.36 points, or 2.5%, to finish at 12839.29. The recent rise in government-bond yields showed signs of steadying, with the yield on the 10-year Treasury note ending Friday at 2.905%, down two of the past three trading days. Yields staged a climb earlier Friday before reversing course. Bond yields rise when prices decline. Healthcare stocks are often considered defensive, with money managers betting that consumers will pay medical bills before making discretionary purchases. The S&P 500’s healthcare sector fell 3.6%, its worst day since June 2020. Concerns about inflation and the pace of monetary tightening by the Fed also remained at the forefront of investors’ minds this week. On Thursday, Fed Chairman Jerome Powell gave investors a clear signal that the central bank is ready to tighten monetary policy more quickly and indicated that it was likely to raise interest rates by a half-percentage point at its meeting in May. A rate increase next month, following the Fed’s quarter percentage point increase in March, would mark the first time since 2006 that the central bank increased its policy rate at back-to-back meetings. Mr. Powell’s comments injected fresh volatility into a stock market that has been whipsawed this year by the war in Ukraine, soaring inflation and rising Covid-19 cases in China. “The market is finally internalizing and factoring in the reality that the Fed really means what it says and it’s not going to back down,” said Tim Courtney, chief investment officer of Exencial Wealth Advisors. “Somebody had a saying, and it’s pretty good: ‘You don’t fight the Fed when the Fed is fighting inflation.’” In commodities, Brent crude, the international benchmark for oil, fell $1.68 a barrel, or 1.6%, to $106.65. It fell 4.5% this week. --- Just want to add, there's been some negative correlation between oil and the rest of the market, but today everything was bloody red.

t3_u9x6bn

investing

Ex employer keeps moving 401k without notifying me

I have about 180k in a 401k from an ex employer. I don't really trust him. He has moved it three times in the past three years without telling me, leaving me to track it down. It's now with Millennium Trust, and I think I need to move it out. I can use Fidelity, Schwab, or a TSP, or maybe open an account at Millennium. Any advice?

t3_u9x35b

investing

At what spread above treasury rates do Short Box Spreads typically get filled?

If I wanted to short a box spread as a cheap source of margin loan, how much should I price the rate of the box above treasury yields? Also a few questions: 1) Does the maturity effect this e.g. Does a 3 year box have a higher/lower spread than a 1 month box? 2) How does the spread effect the time it takes to get filled. So what spread would get filled almost instantly? After 1 hour? A couple hours? A day or longer etc.? 3) What is the minimum spread I could get if I just walked the rate up from 0% and could take as much time as needed to get filled? 3) Are the spreads marked to market every year so that a portion of the interest is deductible as a capital loss each year even if the maturity of the box is several years?

t3_u9wxod

investing

Understanding the return wording

A construction revenue sharing investment I'm looking at suggests "3x return on the initial investment amount" For example, would that mean for a $10,000 investment I make an additional $30,000 and get back my $10,000 leaving me with $40,000 or that I make $20,000 and get back my initial $10,000 and walk off with a total $30,000?

t3_u9tdyh

investing

Investing in stocks as an International Student in the UK

I am a Colombian student studying in the UK and I want to buy stocks with some spare money I have in my UK bank account. I do not know almost anything about taxes in the UK so I do not know if I have to pay taxes for any profits I get. Does anyone know what resources could help me with this issue?

t3_u9t9cs

investing

How do you read 10-K filings to make the analysis more efficient?

Most analysts I talk to, like reading financial reports of public companies and claim to understand the numbers quite well. But not everyone likes to read long stories behind those numbers hidden in 10-K reports. Reading long lines of unstructured text data is just cumbersome. Questions: 1. How do you read 10-K filings to make the analysis more efficient? 2. What terms and phrases do you look for?

t3_u9l06p

investing

Do Stock Prices affect Cashflows?

With all the noise being made around Netflix stock crashing, I had a question. Do Stock Prices of a company affect Cashflows? The way I understand it, they shouldn't have much to do with each other. I understand that a stock crash might happen due to factors that also reduce Cashflow, but I'm talking about a Direct Relationship.

t3_u9pm3o

investing

KRBN, thoughts? Global trend towards carbon tax, carbon "markets" for trading carbon credits.

https://cleantechnica.com/2022/04/20/denmark-announces-aggressive-carbon-tax/ KRBN rallied by 5% two days ago after months of no movement. It's an ETF I've been following closely. Does anyone have opinions of this? Seems to be picking up some steam of finance discussion forums due to new policies that are being rolled out regarding carbon emissions taxes. Also seems to be a trend that the entire western world, and even China, are moving forward. A "carbon tax" where "credits" are traded and can be bought and sold by individual investors on a carbon "market"

t3_u9nqyn

investing

What copper company do you think has the potential that I should invest in?

I just noticed that Gold and silver cost 400 and 5 times more than copper, respectively. The reasons can be largely explained by both material scarcity and by enduring public opinion. But, The good thing about copper is that the cheaper a commodity is, the more volatile its price can be. Gold isn’t going to double in value in a month, not from a starting price of over $1,000 an ounce. Copper very well could. The problem now is I’m not sure where can I put my investment into. Hoping I’m not yet too late, recently have been emphasizing the possible significant increase in copper so I thought it would be nice to put some money on it. The question is, where? Hope you guys can help me out a bit here.

t3_u9nqf5

investing

The FED plans to shrink the balance sheet - support for the stock market gone?

𝙏𝙝𝙚 𝙁𝙀𝘿 𝙥𝙡𝙖𝙣𝙨 𝙩𝙤 𝙨𝙝𝙧𝙞𝙣𝙠 𝙩𝙝𝙚 𝙗𝙖𝙡𝙖𝙣𝙘𝙚 𝙨𝙝𝙚𝙚𝙩 - 𝙨𝙪𝙥𝙥𝙤𝙧𝙩 𝙛𝙤𝙧 𝙩𝙝𝙚 𝙨𝙩𝙤𝙘𝙠 𝙢𝙖𝙧𝙠𝙚𝙩 𝙜𝙤𝙣𝙚? The Federal Reserve (US central bank) wants to reduce their bond holdings by shrinking the balance sheet around $95 billion a month. In other words, they want to sell a lot of bonds back to the market. Until recently, the FED did the opposite, buying a lot of bonds to support the economy and the stock market via QE ("quantitative easing"), aka "money printing". This measure, combined with an indicated interest rate hike of 0,5%, aims to fight the rampant inflation. 𝙄𝙢𝙥𝙡𝙞𝙘𝙖𝙩𝙞𝙤𝙣𝙨 𝙛𝙤𝙧 𝙩𝙝𝙚 𝙨𝙩𝙤𝙘𝙠 𝙢𝙖𝙧𝙠𝙚𝙩 It is impossible to say what the exact results will be for the stock market, but a look at recent history might help. There are strong arguments for the thesis that the high stock market gains of the last decade were mainly driven by growing levels of debt and the FED's QE. If quantitative easing (QE) combined with low interest rates drive stock prices higher, the opposite (rising interest rates and a shrinking balance sheet) can't support the stock market as well. October 2017 was the last time the FED started to shrink the balance sheet ("quantitative tightening") by selling $50 billion of bonds per month back to the market. This finally pushed up 10-year US Treasury Bond yields up above 3% (less demand for bonds leads to higher yields). At that point, investors panicked and the stock market fell by 20% the first time since the big financial crisis in 2008.

t3_u9k1eh

investing

Is Margin Trading wise for your average investor?

I have an investment account and a Roth IRA. I don't want to trade with leverage for any sort of crazy options play or anything, just your standard Long time frame, buy-and-hold, equity investments. Would it be wise to invest with leverage? Do you think that if I do trade with leverage I should invest lower risk than I normally would invest for my age to try and offset the risk associated with leverage or just stay the course and enjoy the additional buying power?

t3_u9jjkv

investing

if everything is priced in, then why......?

then why did Hang Seng index fall over 40% right after the handover to China in JUNE 1997 even though the arrangements started around a decade ago and everyone knew the timing of the handover? shouldn't it be effectively priced in? what do you think about it?

t3_u9ik9g

investing

Is there any investment that's safe right now?

With bonds getting slaughtered, and stocks continuing their slow bleed, is there anything safe right now? I always thought that common sense stated that bonds were supposed to be the "safer" and less volatile investment, but it doesn't seem be the case any more.

t3_u9gnv1

investing

What is the best way to handle taxes on vesting shares?

I will be having shares vesting and I’ve heard the taxes we need to pay out of pocket and there’s basically no way around it. Is there a way I could move shares vested into a 401k and be taxed on them later? I thought you only had to pay taxes on anything you personally take out. Any help would be appreciated. Edit: I appreciate all of the help and insight that everyone has shared with me. I had heard that there were no other options with regard to how I could handle RSUs but didn’t believe it 100%. I guess I will have to sell to cover taxes and suck it up.

t3_u9fbtk

investing

Investing in foreign company - common stock vs depository receipt?

When investing in a company based outside of your home country there may be an option to choose between Common Stock and Depository Receipt. What are the pros/cons to each of these? Ex In USA - brokerages show BASF has: BASFY (Depository Receipt) BFFAF (Common Stock) They both have a similar dividend but show different stock prices.

t3_u9dk61

investing

How do you invest with your values?

I've been investing in ETFs since 2017, mostly in S&P500, and recently realised how many companies that includes which I'd rather not support (weapons, oil and gas, etc). Even the 'ESG' or 'Green Energy' ETFs still have ExxonMobil and others... Honestly looking into it I saw it's all marketing bs. Betterment/Acorns sustainable options are the same. I'd rather not create my own S&P500 minus the Co's I don't like by buying 100s of stocks... Have you faced this problem? Any suggestions for how to keep diversification without ETFs?

t3_u9diqq

investing

Did you invest in TSLA? Let's see how TSLA has grown into a listed company with a market value of $1 trillion? Judging from its acquisition case.

**Have you invested in Tesla stock? Today its market value has exceeded $1 trillion. How did Tesla grow into a $1 trillion public company? Let's look at its acquisitions.** Tesla was founded in 2003, with a revenue of $53.823 billion in 2021 and a market value of $1.08 trillion. Tesla is still a relatively young company, but it has quickly grown into the most valuable automaker, backed by a series of key acquisitions. The main purpose of these acquisitions is to increase manufacturing capacity, increase the speed and efficiency of operations, and reduce costs. Below, we'll take a closer look at 5 of Tesla's most important acquisitions. **1. Sun City Company**  Type of business: Solar  Acquisition price: $2.1 billion  Date of acquisition: November 21, 2016 SolarCity was founded in 2006 by two cousins ​​of Elon Musk. The idea for the company was that of Musk, who also provided initial working capital and served as chairman. SolarCity designs, manufactures and installs solar energy systems and sells solar power. In August 2016, Tesla announced that it had reached an agreement to acquire SolarCity, with the merger closing later that year. Tesla said the merger would create the world's first vertically integrated sustainable energy company, leveraging the synergies created by combining Tesla's energy storage with SolarCity's solar power. Although the merger was approved by a majority of Tesla shareholders, some Tesla investors later sued the company. They claim that the real motive for the deal was to bail out SolarCity, which was struggling financially at the time. **2. Maxwell Technologies**  Type of business: energy storage and power transmission products  Acquisition price: $207 million  Acquisition date: May 16, 2019 The company was founded in 1965 as Maxwell Laboratories Inc. It went public in 1983 and then changed its name to Maxwell Technologies Inc in 1996. The manufacturer of energy storage and power delivery solutions specializes in ultracapacitors, devices capable of holding more energy than standard capacitors. Its products are used in a range of applications including transportation, industrial and grid energy storage. In May 2019, Maxwell was acquired by Tesla. Musk has said in the past that supercapacitors will be a breakthrough in electric vehicle production. He is also optimistic about Maxwell's efficient process for producing battery components, which could drastically reduce the cost of Tesla's electric vehicles. **3. Groman Engineering Co., Ltd.**  Type of business: automated manufacturing systems  Acquisition price: $135.3 million  Acquisition date: January 3, 2017 Germany-based Grohmann Engineering was founded in 1963 by Klaus Grohmann. The company specializes in the design and development of automated manufacturing systems. When Tesla announced its acquisition of Grohmann in November 2016, the company had 700 employees and had grown revenue at an average annual rate of 6% over the past 20 years. Tesla completed the acquisition in January 2017 for $135.3 million. This total cost includes an initial cash payment of $109.5 million and an additional $25.8 million paid in the first quarter of 2020 as part of an incentive compensation arrangement. Tesla said the acquisition will help the electric car maker increase the speed and efficiency of its manufacturing process, which will significantly reduce expenses. **4. Perbix Machinery Co., Ltd.**  Type of business: automated manufacturing equipment  Acquisition Price: Financial terms not disclosed; estimated value of $10.5 million.  Acquisition date: November 7, 2017 Founded in 1976, Perbix specializes in the design and manufacture of custom, highly automated manufacturing equipment. It was acquired by Tesla in 2017. Earlier in 2017, Tesla acquired Grohmann Engineering, a German company doing a similar business. The acquisition of Perbix gives Tesla more control over vehicle production by making more auto parts in-house. The acquisition is another step in Tesla's push to optimize and accelerate its electric vehicle production process, following the acquisition of Grohmann. **5. Haiba System Co., Ltd.**  Type of business: Manufacturer of automated liquid dispensing and filling systems  Acquisition price: Financial terms not disclosed  Date of acquisition: 2019 Canada-based Hibar Systems was founded in 1974. The company specializes in the design and manufacture of high-precision dispensing pumps and filling systems, including automatic vacuum filling systems for lithium-ion batteries used in electric vehicles. The exact timing of the acquisition is unclear, as Tesla did not announce the acquisition. But in October 2019, Tesla listed Hibar as one of its subsidiaries in an Oct. 2 filing with the Canadian government, according to several publications in the U.S. and Canada. Tesla's interest in the company is more explicit. Hibar will allow the electric car maker to produce batteries in-house. The move will help reduce key operating expenses with which Tesla co-owns and operates a battery factory in Nevada. ​ This is part of what makes Tesla a great company. They know their shortcomings and quickly acquire excellent companies in related industries to make up for their shortcomings. In the end, the behemoth achieved its own market value of $1 trillion, and it is still growing. The just-announced Q1 financial report reached an explosive growth of $18.7 billion. In the future, we believe that Tesla will get better and better. What do you think?

t3_u9d6sq

investing

Daily General Discussion and Advice Thread - April 22, 2022

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](https://www.reddit.com/r/investing/about/sidebar) 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!

t3_u9a65v

investing

Investing on Acorns — what are the consequence of changing to a more aggressive portfolio at a loss?

I started investing a few dollars at a time under a moderately aggressive portfolio in January. All in all, I’ve lost money, but I’m actually wanting to change to a more aggressive portfolio since I’m young and have pennies to burn. I know that switching portfolios can have adverse tax consequences — is this something I’d need to worry about in my situation?

t3_u947xo

investing

Fed’s Powell Seals Expectations of Half-Point Rate Rise in May

https://www.wsj.com/articles/feds-powell-could-seal-expectations-of-half-point-rate-rise-in-may-11650533444?mod=hp_lead_pos1 Federal Reserve officials have broadly signaled a desire to raise interest rates to levels that don’t provide stimulus Federal Reserve Chairman Jerome Powell signaled the central bank was likely to raise interest rates by a half percentage point at its meeting next month and indicated similar rate rises could be warranted after that to lower inflation. A rate increase in May, following the Fed’s decision to lift rates from near zero by a quarter percentage point last month, would mark the first time since 2006 that the central bank increased its policy rate at back-to-back meetings. A half-point increase would be the first such move since 2000. The Fed has indicated it will also formally announce plans at the May 3-4 meeting to begin shrinking its $9 trillion asset portfolio in June, a double-barreled effort to remove stimulus to curb price pressures that are at a four-decade high. “It is appropriate in my view to be moving a little more quickly” than the Fed has in the recent past, Mr. Powell said Thursday. “I also think there’s something in the idea of front-end loading” those moves. Investors in interest-rate futures markets have in recent weeks bet on increases of a half percentage point, or 50 basis points, at each of the Fed’s next two meetings. “Markets are processing what we’re seeing. They’re reacting appropriately, generally,” Mr. Powell said, though he said he wasn’t endorsing any particular market pricing. Still, he concluded, “Fifty basis points will be on the table for the May meeting.” Mr. Powell warned of growing supply-and-demand imbalances in the U.S. labor market that some economists worry could fuel a wage-price spiral that drives inflation higher as workers bid up wages. In July 2019, as the unemployment rate was falling to a half-century low of 3.5% but inflation drifted below the Fed’s 2% target, Mr. Powell dismissed concerns that the labor market might be overheating. “To call something hot, you need to see some heat,” he said. Today, wage growth is running at its highest levels in years and the labor market has tightened rapidly, with the unemployment rate tumbling to 3.6% in March from 5.9% last June. “It’s too hot. It’s unsustainably hot,” Mr. Powell said. “It’s our job to get it to a better place where supply and demand are closer together.” Mr. Powell said the Fed is focused above all else on bringing down inflation. “Economies don’t work without price stability,” he said. The Fed is trying to engineer a so-called soft landing in which it slows growth enough to bring down inflation, but not so aggressively that the economy slips into a recession. “I don’t think you’ll hear anyone at the Fed say that that’s straightforward or easy. It’s going to be very challenging,” Mr. Powell said.

t3_u92olg

investing

I do not understand how dividend long term investing works.

I understand some companies either give a yearly or quarterly dividends. But I don't see how it can increase so much. Example: Company A gives a 2% dividend, and annually the dividend increases by 3-4% ish. Over a span of 40 years wouldn't the dividend payout be extremely high? Also, how does dividend reinvesting work? I understand that it when you receive dividends you reinvest it into the stock, but when I do that on a calculator, you barely make anything compared to the money you make on the stock alone without the dividend. Or I'm getting this all wrong, anyone help? Thx.

t3_u9218a

investing

Fertilizer Market- Very Bullish Weekly Prints Coming In $MOS $NTR $CF - *Mini Post* please add if you have more insights 🙏

Fertilizer Market- Very Bullish Weekly Prints Coming In $MOS $NTR $CF - *Mine Post* This market is extremely bullish reaching all time record breaking highs! And with earnings around the corner for fertilizer producers are going to be bullish imo. If you look back at charts of 2007-08 these companies are much more valuable today then they were in those years. Especially with global food shortages and rocketing inflation globally. With the war and Russia being a key exporter in this market. The sanctions and higher natural gas prices will further increase the price of fertilizer in the next month or two. This is due to the fact that it’s fertilizer season from March-June. Companies like Mosaic, Nutrien, CF and other fertilizer companies will produce recording breaking quarterly statements imo. These Are The Recent Weekly Fertilizer Friday Print Prices: April 15- 1158.98 April 8- 1149.25 April 1- 1269.76 March 25- 1270.40 March 18- 1248.09 March 11- 1137.56 March 4- 948.72 Here are some recent links: [link 1](https://www.dtnpf.com/agriculture/web/ag/crops/article/2022/04/20/phosphate-prices-reach-time-high) [link 2](https://www.dtnpf.com/agriculture/web/ag/crops/article/2022/04/20/phosphate-prices-reach-time-high) [link 3](https://www.bnnbloomberg.ca/rising-fertilizer-costs-are-catching-up-to-rice-farmers-threatening-supplies-1.1753446.amp.html) [link 4](https://www.bloombergquint.com/amp/onweb/fertilizer-price-surges-43-to-fresh-record-as-supplies-tighten)

t3_u90p7k

investing

What investment advice would you give to an immortal being?

First of all, as a declaimer I must make this very clear. I have NOT split my soul into 7 pieces. There is NOT a portrait of me in the attic that keeps getting older and older. I have NOT kidnaped a princess with magical hair. And I have NOT been bitten by a vampire. This is just a question in general and I am not asking for personal advice for myself. Anyway ..... I know if my time horizon is short, say I am buying a house soon or I am near to retirement, I should not be messing around with stocks because the year-to-year has too much volatility. If my time span was longer then stocks would be a good idea because I would have time to even out any one year variance. But what if my time horizon was REAL long? Investing in a business would seem as if it would switch back to being a bad idea once more. I cant imagine a business that would still be around 1 000 years into the future. No. Not even Tesla. So if stocks are out of the picture, the next thing I thought of was gold. Bear markets in stocks can last decades but if your start when you are young then you could just wait out a bear market. Likewise, bear markets in gold can last centuries, but an immortal could just wait out these bear markets in a similar manner. But I am a history buff and I know that gold as an investment is a relatively new idea. Lots of cavillations did value gold, but they valued it as a status symbol rather than as an investment. Like a Lambo or a Rolex. You don't 'invest' in a Lambo. You buy it to show off how rich you are and rub it in the noses of all your haters. Kings and emperors had gold to gloat, not to invest. My guess is the best option would be real estate. Even when you go back a thousand years, the land owners were the rulign class. It has a proven track record over the needed span of time. Buy a house and the neighborhood turns to shit, and a human would never be able to wait out the bear market for the neighborhood to come back. But an immortal could just depend on invadable population growth and know that cities will always expand. Is there any other suggestions? Or things I am missing?

t3_u8zlkn

investing

Once in a lifetime opportunity

With the recent sell off in a lot of stocks, we are going to be faced with a once in a lifetime opportunity to accumulate some of the world’s most cutting edge companies. Now is the time to be building your watch lists of companies that you have strong conviction in over the next 5 years +. Don’t fret over the short term price fluctuations as some of the major market cap companies are guaranteed to rebound in the future. Now is the time to be accumulating positions in companies that have long term potential. Trying to time the market now will be difficult and accurately timing a bottom is almost impossible, even with some of the most advanced charting technology the world has ever seen. We could see further price depreciation but the lower we go, the greater the opportunity. Stocks are a long term play. Don’t expect to get rich overnight as that’s not realistic for most people. Sure, some people get extremely lucky or maybe are just talented investors but for the most part, this is about the long term game. Some stocks take 3-5 years or more to return good returns. The best thing in my opinion that you could do right now are to accumulate stocks in companies that you have the highest conviction in. Now is the time to set aside for these plays that will be life changing for you in the future. Your future self will thank you for having the fortitude to begin accumulating stocks in great companies. I personally invest in the following companies: AAPL, AMZN, GOOGL, WMT, JPM, UPS, XOM, PLD, UNH, NEE, COIN, NEM, BHP. These are the largest market cap companies from each sector (minus coin) giving me complete exposure to all sectors. I encourage you all to create a diversified, yet concentrated portfolio such as this to give you the greatest opportunity at success, while limiting your risk through diversification. Nothing is guaranteed but I believe in these companies and will continue to accumulate stocks in these companies for the remainder of my lifetime. If the stocks go further down, then this is a further opportunity to lower my cost basis in some amazing companies. But enough with the rant and please tell me about some of the holdings you have and why you hold them. I am always interested in learning more about great companies. Good luck everyone and don’t let these price swings get you down. Look at them as an amazing, once in a lifetime opportunity to accumulating some killer companies.

t3_u8zj9i

investing

Is Meta platforms Inc (FB) a value pick or value trap?

Despite earnings going from $23.5 Billion in June 2020 to $39 Billion in December 2021, the stock price has dropped by 18% in that time period and has halved since September. I understand there are concerns around a slight decrease in users and the uncertainty of the metaverse, but it feels like this is an overcorrection by the market. What are your thoughts on this, is it a buy, or to be avoided?

t3_u8w2wa

investing

Why aren't Fed rate hikes priced in already?

The Fed has been saying since November that they would hike rates 6 times during 2022, sometimes 0.25 and sometimes 0.50. By now, this is old news. The message hasn't changed. Yet, every single time anything is said about this, the general market seems to have a fresh panic sell-off, with growth stocks (e.g. the segment of the biotech industry represented by XBI) dropping to record lows. The recovery in-between news cycles doesn't cover the lost ground. Why aren't the Fed rate hikes priced in by now? What would it take for this trend to bottom out?

t3_u8upa6

investing

Any explanation for PLUG’s plummet today?

I’m trying to figure it out but as much research and news as I can find is leaving me stumped. These guys have been on the up for years with smart financials, the emergence of green energy, their expansion into new markets (Renault) and building bigger deals with current customers (Wal-Mart) so what gives?! What the hell happened? Hoping somebody with better understanding of the markets/investing can explain why this stock which is relatively stable just took a nose dive despite a lot of positives for it lately.

t3_u8tp73

investing

So, this Twitter thing. The stock's barely moving, but Musk says he's got the bucks. What's up?

It's seemed unwise in the past 5 years to bet against Musk. He seems ready to takeover Twitter, which has been the most underperforming mega platform with the least amount of tweaks to its strategy towards growth. Musk has (annoyingly so) become a conservative media darling, thus garnering some to complain that he's killing free speech...and there's the poison pill. But I figured the stock would have some big swoops by now. What am I missing?

t3_u8ta2c

investing

US performance in the future

If the US stock market continues to outperform international stock markets at the rate that it has recently, then wouldn't the US will be 99% of the world’s market cap eventually (in the next 10-20 years)? Is this even possible? If not possible, would that suggest that the rational choice would be to invest more in a Total World Market Index Fund in the near future than in S&P or total US market index funds?

t3_u8q6q0

investing

Daily General Discussion and Advice Thread - April 21, 2022

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](https://www.reddit.com/r/investing/about/sidebar) 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!

t3_u8j6po

investing

Sustainable energy and tech?

Hi all. Very new to investments. But I’d like to go bigger. I’ve done chump change to see how my gut-feelings pan out. Has anyone worked in Lumen stock? I’m seeing an enormous downtrend, but they advertise as being the next big thing. Pretty typical, but I’m new. Has anyone had good luck with sustainable energy and/or tech? AI and edge computing seem promising…

t3_u8fpa1

investing

Am I being silly by having many index funds?

Something about my investing habits, i tend to not like to put all my eggs into one basket, to an extreme in many ways. So I think I might be off on investment strategy, or maybe others do this and i'm not crazy, i'm just wondering. But I like to invest in multiple index funds, energy, medical, S&P 500, total market, foreign markets, etc. Okay, I don't own funds in all of those, but i want to. So I'm wondering if I am crazy to have a few of these funds up and running, then deciding weekly/monthly which index fund I feel good about investing in. I know you can never really beat the market, but like when we were at ATH, i felt like I wanted to invest in value stocks, so i directed my money into those index funds instead. When the pandemic hit, I felt like medical would be good. I'm guessing regardless, i'll be fine in the long run. I'm a saver, doing basically good things based on my risk tolerance at the time, but I still wonder if I'm being wrong here. Would it be better to just pick one or two funds, dump it all in those, wait? For more information, I have like 20-30 years before I would need it, so my risk tolerance is long term.

t3_u8bicd

investing

Why do we measure the market by the S&P? Why not the Russel? Or the Dow? And, what happens to the rest of other markets when the S&P performs poorly?

With all the talk of the S&P being overvalued or that its too high or that its going to correct... I'm starting to wonder: why is there so much more focus on the S&P? I see a dozen charts a week showing how the S&P performed since some arbitrary date in time. Why don't we give that same focus to the Dow? the Russel? I never hear how small cap stocks performed historically. Not a single chart! Same goes for mid cap. What about developing markets? We keep talking about the S&P and there's soooooo much more to the economy than the largest 500 US companies. I feel like there should be more talk outside the S&P 500. Does anyone know why that's not a thing? What are your favorite indicators that don't involve the S&P?

t3_u8b64c

investing

Google Earnings Report Discussion Thoughts?

GOOGL is expecting to announce their earnings for Q1 2022 on April 26, 2022. Last time during the Q4 2021 ER, GOOGL shot up from the $2500 support level to as high as $2960. It was not as huge as previous ERs but it announced a 20-to-1 stock split which played a huge part. The $2500 support level is very strong as it has been tested around 5 times already with each time leading to a nice reverse. However, many people believe that GOOGL will report negatively after 4 consecutive positive ER already. I’m just creating this post to create some discussion about Google and what other people think will happen to their earnings.

t3_u8atco

investing

What was it like being invested through the great recession?

What did the markets do, what did you do? Did stop losses even matter, did the prices plummet after hours? Did it change how you invest? I only have two anecdotes. I know a guy who lost his daughter's college/future fund. It was around 100k. He was devastated and said he'd never invest again. Then my father, who was in mutual funds. The crash didn't hurt him much, which was as he'd planned, but he figured his colleagues who were in stocks would probably recover in time, and they probably did. There were probably not nearly as many retail investors then as now, so may have been harder to go cash.

t3_u88ij2

investing

Is this the beginning for Netflix to feel the side effects due to lack of portfolio diversification?

Netflix is the streaming leader, but being a leader in a domain eventually you reach a point of saturation especially with competitors on your heals. They are attempting to become the entertainment goto while they have the concentration of eyeballs on their platform. They could steer customers to other entertainment content, games, music, twitch like content, vr, passive or active interaction on their platform, etc... However if their diversification efforts do not bear fruit and the streaming competitors are eating at their user-base, the stock would reflect that.

t3_u86ynn

investing

Tesla's Q1 results; 3.3B net income, 19% operating margin, 33% auto gross margin. Reduced debt from 1.4B to 88 MILLION.

[Link to the Q1 financials.](https://tesla-cdn.thron.com/static/IOSHZZ_TSLA_Q1_2022_Update_G9MOZE.pdf?xseo=&response-content-disposition=inline%3Bfilename%3D%22TSLA-Q1-2022-Update.pdf%22) P/E is now ~130 and EPS for Q1 was 2.86. Forward P/E is ~90. Tesla is an absolute financial monster and by retiring the debt they are saving ~200 million in headwinds due to interest payment. They sit on 17.5B cash while earning 3B+ in net income per quarter. Operating margin went from 14.6% in Q4 21 which was fantastic already, to 19.2% Q1 22... EDIT; Customary edit, thanks for all the gold. :)

t3_u86h5b

investing

Stock Market is a Casino, but Can't Cash your Chips - Only Sell your Seat?

I read this description of the stock market somewhere, I'm wondering if you guys think it's accurate. If not, why not? Imagine there's a casino, and you're sitting at a table with $500 worth of chips in front of you. However, you can't take out your chips, exchange them for cash and walk away. Instead, you can only sell your seat to someone else. Only when the casino shuts down one day (maybe 400 years from now, who knows?), will you get cash for your chips - if there's any left after paying the casino debts etc. Question: If someone with $500 worth of chips on the table offers to sell you their seat for $200, would you consider it a bargain and buy it immediately to take their place, or will you refuse the offer? Would you agree with this characterization of the stock market?

t3_u86538

investing

How valuable is Tax Loss Harvesting for a fresh grad?

I just graduated college and have been looking to consolidate my investments into a robo advisor. I’ll be living in Colorado earning about 81k gross and I have around 50k saved up (I also have no student debt which I am absurdly grateful for!) When I look around between different choices, the feature of Tax Loss Harvesting comes up quite a bit. I understand the concept, to realize a loss to offset taxable income, but I’m not sure if it’s worth it for myself. How can I approach gauging the value of TLH to determine if it’s worth paying an extra management fee for it? As an aside, I’m mostly looking between Vanguard Digital, Betterment, and SoFi for digital advisors, I’d love to hear anyones experience with these as well!

t3_u85usl

investing

Evaluating Pension buyback vs investing

Hey everyone, I am a teacher and have the option of buying pensionable service as an investment. Here are the facts: -32 years old -plan to retire in 25 years (age 56, 2047) -1 year of pension service is 8917 dollars(its partially subsidized) -I'm not in great health, so let's assume I will die 5 years before the average. You may think this is a poor assumption, willing to hear counter arguements --current income is 86000, current pay cap is 100k.will need to assume what this will be by 2047 -pension is 2% of average 5-year top salary per year. -pension is 70% cost of living adjusted Investment I'm comparing it against is investing that 8917 into low cost index fund(VT) Any thoughts are appreciated!

t3_u854ck

investing

Anyone use a Private Mailbox for their investment accounts?

Like if you don't have a solid address in the US or you are an expat or you spend most of your time out of the US and come back to visit friends, have you used one of those Private Mailbox services? They seem great in terms of holding and forwarding mail as needed, but it's the address I really need.

t3_u83zh8

investing

Understanding the “Buy, borrow, die” strategy.

Diving into this subject a bit lately. I think I get the basic idea as outlined here: https://www.peoplestaxpage.org/buy-borrow-die-1 But I am curious about a couple of things… hypothetically of course… How much (in appreciating assets) does one actually need to pull this off? Is a stock portfolio worth 1M getting say 10-20% annually enough? Then, hypothetically one could get a line of credit for at least $250k with a 5% fixed rate. Blow it all on a cheap condo. Never pay it off till you die as in step 3. But if person still has +-30 years left on the planet, the 250k with compounding interest will have ballooned substantially by then. But I guess so too has their 1M stock portfolio. So I suppose as long as the returns on the portfolio continue to be greater than the accruing debt, it’s viable? And how does a person get a line of credit from their brokerage that does not require at least SOME type of payment along the way? How does someone actually do this?

t3_u82zjd

investing

Invested in a private company that recently sold.

I had the opportunity to invest in a private company I was working for right at the end of 2019. The company has been around for a couple of decades but recent leadership made some bad decisions so they opened up funding again in 2019. I bought $25K in restricted stock and took a $25K pay cut in order to get some common stock. Covid happened and anything that could go wrong, did and I left the company towards the end of 2020. I just learned they sold on 2/1/22 most likely at a loss or at best, breakeven. I have only heard this through the grapevine and haven't heard anything from the Board of Directors, the VC, or anyone else from there. The corporation that acquired them didn't disclose what they paid for the company. My question is, it hasn't even been 90 days yet but as a shareholder, shouldn't I get some kind of paperwork showing either the gains or losses I took? Even if it was a loss, I would think they would have to disclose that so I can take that into consideration next year for taxes. This is my first time going through something like this so it's all very new.

t3_u80pz4

investing

Streaming reset. When does it hit bottom? Netflix, Disney, paramont.,

Seems like we are in a very volatile situation with the Netflix reset. Will the contagion from Netflix bring the other streaming services down more? It seems to me that Disney may be at rock-bottom. But then again it keeps going lower. Any thoughts regarding a good time to look at buying some streaming services? I don’t own any Netflix. For the record at age 61 I don’t even watch Netflix which is why I probably never purchased it. But I guess that Bill Ackman is much smarter than me because he was talking about it being a great stock when it was $350

t3_u7zf3i

investing

Wealth Management & Tax Loss Harvesting Benefits for ~30Y/O?

I got married a year ago, and with the joint income between my wife and I we've realized that we have more and more to invest. Because of this, we've started meeting with a financial advisor (through Fidelity) for a little over a year now. A topic that occasionally comes up with "wealth management". We're considering pulling the trigger on it, but as someone who's used to being a DIY person for most aspects, it's hard to convince myself to pay someone for this service. **Background:** * We're both young (around 30) * We're both putting the allowable 20,500 to our 401(k) - all going to ROTH * We're considering doing Mega Backdoor ROTH IRA this year * We're above the limit for contributing to ROTH IRA * We're considering doing Backdoor ROTH IRA this year * We each have our separate 401(k) accounts, ROTH accounts, and individual investment accounts. * This past year, we set up our first joint account for investing * So far a majority of our investments have been in Fidelity's low-cost index funds that track pretty well with S&P-500 * We have enough in our bank accounts as a "rainy day fund" to last us for a while * We're looking at our investments as "long term" (probably retirement). We're not really planning to pull anything out at any point. **Wealth Management Considerations:** * We're planning to add about 100k to a joint account - we're debating between having this be managed or just let it ride low-cost index funds * The management fee would be 0.4% annually (deducted quarterly) * Discussing with family who does something similar (also through Fidelity) and they say that once the fee is accounted for, it comes out similarly to the S&P - sometimes higher, sometimes lower, but long-term is relatively close. * Assuming they match the S&P (after the fee), the main "perk" we'd get out of this seems to be "tax loss harvesting" **My Questions:** I've been reading up on things, as I typically like to have a basic understanding of everything I'm doing. That said, I'm still new to most of this, thus have some questions surrounding all of this. * For starters I guess, is a 0.4% rate for a wealth management service through Fidelity a good rate? From what I can tell it is based on the numbers I've seen online. * More specifically to the "is this a good rate" is: What benefit would I really see from having this service? * Is "Tax Loss Harvesting" really beneficial in my situation? * From what I've gathered, TLH essentially will help defer the tax burden from capital gains. If I just ride index funds (and not cashing out), then wouldn't capital gains be quite minimal, thus having no need for TLH? * I see how TLH can have a huge benefit if your reshuffling your portfolio and/or having constant buys/sells. But doesn't that benefit mostly go away if you're just in something like FXAIX or FSKAX? * There's a potential to save around $700 a year in taxes by using losses to offset some of our income. That's a semi-fixed number that doesn't rise with the amount in the account though. So, wouldn't we hit a breaking point where the fee is costing us more than this offset is gaining? These are all things I could ask the advisor (and will), but I figured an outside opinion wouldn't hurt.

t3_u7zccr

investing

Daily General Discussion and Advice Thread - April 20, 2022

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](https://www.reddit.com/r/investing/about/sidebar) 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!

t3_u7s5yb

investing

Ways to automatically detect changes in companies' fundamental ratios' directions?

Just finished a self-study course, which included stock valuation and companies' fundamentals. One specific thing was, to try to see trends of increases or decreases over time, in a company's fundamentals (P/B, P/E, profit, etc.); and to take note of reversals in those trends as possible indicators of action to take. For example, if Company 1 made $90 in profit one year, $120 the next period, $150 the next period, then down to $100 the next period. Or if their P/E went $20, $18, $17, $25. Is there any sort of service the internet that goes through financial data, to detect these trends like these, and indicate when there's been a reversal in a fundamental's direction?

t3_u7k7sv

investing

Utilities Stocks and Inflation

I’ve read in a number of places online that utilities stocks don’t do very well during periods of high inflation. The reasoning is that the increases in energy costs for these companies can’t be instantly passed down to consumers by instantly raising prices by a large amount because many of these companies are regulated by state and local governments that put a restriction on how quickly prices can be raised. However, VPU (Vanguard utilities ETF) has outperformed the market by a large margin over the past year. I am completely confused by this. Can anyone enlighten me? Much appreciated!

t3_u7fy4d

investing

Netflix Q1 EPS $3.53 vs. $2.89 Est.; Q1 Revs. $7.87B vs. $7.93B Est. Stock is down -20% AH

* Shares of Netflix cratered more than 23% on Tuesday after the company reported a loss of 200,000 subscribers during the first quarter. * It’s the first time the streamer has reported a subscriber loss in more than a decade. * Netflix blamed increased competition, password sharing as well as inflation and the ongoing Russian invasion of Ukraine for the stagnant subscriber growth. * For the current quarter, Netflix said it expected an even steeper decline in new users. The streamer said it sees subscribers declining by 2 million in the fiscal second quarter, whereas consensus analysts were looking for a gain of 2.4 million. (h/t /u/Tellon) [Sub Growth](https://imgur.com/a/cYtSopG)

t3_u7f3jz

investing

McDonald's As Inflation Hedge

I am trying to hedge against inflation and thought McDonald's stock might be a good idea. My reasoning behind this is: 1. In essence, they are a real estate company and generate much of their profits through leases to franchises 2. As a worldwide company, international revenue will protect against possible devaluation of the US Dollar 3. In a recession people who want to still eat out may choose lower cost options. This could be further exacerbated by rising gas/electric bills incurred by home cooking 4. In control of output price so can increase prices if required 5. Frequent dividend payment I've put 10% of my total portfolio in so far, but am interested in your thoughts before investing any more Many thanks,

t3_u7dnu9

investing

Investing in Crypto ETF Funds

I understand the theory behind crypto currency, but not to the degree that I've done any research on it. But now that some foreign governments are using it, the US is dropping hints and even WalMart is trying to get their own version going.... I'm paying a little more attention to various articles on the subject. A recent [announcement](https://www.etftrends.com/new-fidelity-etfs-offer-access-to-crypto-esg-bonds-and-the-metaverse/?utm_source=Yahoo&utm_medium=referral&utm_campaign=ReadMore) about Fidelity offering new Crypto ETF's caught my eye earlier this week. It looks like these EFT's focus on the infrastructure surrounding crypto, not the actual currency itself. Fidelity makes no secret to the fact these funds came about because of the desires of younger investors. This makes a little more sense in my eyes, kind of akin to investing in gold mining and processing companies rather than gold itself. ***What do you investors think of this kind of opportunity?*** The release date is April 21st.

t3_u7dl81

investing

Prudent to invest in a single investor/developer?

Hi there, I'm turning to this community for some advice for a friend of mine (this is actually a friend, not the whole "asking for a friend" thing). He was approached by a developer/investor that's also a good friend of his and asked if he wanted to invest in some land deals this developer had on the horizon. He is apparently investing in some land near Universal Studios Orlando, as well as opening up a fast food franchise. The problem is that this guy has no oversight, board of directors, or anything else. It'd be just him. He doesn't really have a proven track record, either. My friend just really trusts him, and I guess I'm just trying to find some objective reasons why he should or should not invest with him. Hope this makes sense, and I appreciate any advice you can offer!

t3_u7deyv

investing

Can someone explain this bullshit to me? Result of PFOF?

I was about to sell an option on RH and saw the price at $1.10 but then was prompted to reset my password. By the time I reset my password, the option price had tanked to $.62 and I thought, ok maybe I was just seeing old data as RH has it's bugs. Decided to try and sell the options anyway at $.65 with the bid/ask .55/.70. I left the offer up for about 30 seconds with no execution. Decided to cancel the offer and then add the option to my watch list so I could see price history. https://imgur.com/KSwwJWu I saw it before it started to respike, and thought "wow I guess I should buy some options instead". Saw the bid/ask .55/.75. Everytime from there on out, as soon as I bid, w/e I bid, there was suddenly tons of bids at that price. The bid level did not change before I bid. After a couple of bids, the ask sat a $1.20. I ask you, how is it possible that my canceled sell didn't execute if any of those bids actually exist?

t3_u7axyh

investing

Nvidia SEC filings - Item 1 and 7 - word frequency count analysis - 2011 – 2022

Just though I would share some interesting word frequency count for Nvidia for years 2011 - 2022. Interesting transition from "products" to "AI" and now to "software". Here’s a link to the post: [Nvidia - Word Frequency Count](https://www.reddit.com/r/codingeconomist/comments/u287hp/nvidia_financial_report_word_frequency_count/?utm_source=share&utm_medium=web2x&context=3)

t3_u7auyt

investing

Do dividends actually create any additional value?

You often hear that the best investment advice is to put your money into a fund, not to touch it, and to re-invest the dividends. But if the price of a stock goes down by the value of the distribution, what is the value of a dividend at all? For example, if I buy Company A for $90 and it goes up to $100. Then they issue a dividend of $3. The share price drops to $97 and I reinvest the $3 dividend so I'm back at $100. How has this provided me with any value, besides creating a taxable event?

t3_u79hdk

investing

In an economic recession, what can you invest in?

Prior to further speaking on my point, mods and everyone, please note that I attempted to thoroughly look for the answer to my question on here but I’ve had no success in finding that. If there is, please guide me there. I’m sure most people have the understanding that we are already in the process of an economic recession/crash. What are the best moves to make during an economic recession, in regard to investing in stocks/businesses? I did some research and ETFs, Real Estate, Dividend stocks were the way to go, but I wanted to get the opinion of my fellow redditors. What are the best moves to make in your opinion? For some reason I’m reminded of The Big Short movie and the potential for good investment. Thank you in advance

t3_u7871l

investing

Fannie Mae forecasts U.S. economy to fall into modest recession next year

"Our updated forecast includes an expectation of a modest recession in the latter half of 2023 as we see a contraction in economic activity as the most likely path to meet the Federal Reserve’s inflation objective given the current rate of wage growth and inflation." https://www.fanniemae.com/research-and-insights/forecast/inflation-rate-signals-tighter-monetary-policy-and-threatens-soft-landing

t3_u74jsr

investing

Can you please check my long term investment plan and answer a few questions?

Hi, I have finally started investing in stocks and would like if you guys can check my long term assumptions and answer a few questions I have. I am 30yo and my NW is £85k. I have got £75k invested in V3AM. I plan contribute £1k/month until I will have enough money to retire. My questions are: 1. what is a realistic (or the most probable based on historical returns, I should say) total real rate of return I can expect on the V3AM? With 'total' I mean including reinvesting dividends and with 'real' I mean after inflation. At the moment I am using 8% in my calculations. 2. in general I see that a 100% stocks portfolio tends offer the highest rate of returns compared to a portfolio mixed with bonds. However I understand that as I get older, should the market crash, I won't have enough time to wait for it to recover so, at some point, I should swap some stocks with bonds. Is there a 'rule' to follow for this? My main concern is to buy bonds too early and miss out on higher gains. 3. what I am not clear in particular is: (should I manage to retire early) should I plan to swap some stocks with bonds based on my 'early retirement' date or based on my predicted life expectancy? I am into FIRE and the simulations tend to show that the portfolios with the best success rate are the 100% stocks ones. Thank you.

t3_u74e42

investing

Daily General Discussion and Advice Thread - April 19, 2022

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](https://www.reddit.com/r/investing/about/sidebar) 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!

t3_u70nv8

investing

Etoro CopyTrade for New Investor?

I want to get into a small amount of low to medium risk investing, and have little to no experience. I don't want to spend a whole lot of time on managing it, however I'm happy to spend a couple hours a week if need be. Would a properly researched and setup Etoro CopyTrade/Copy Portfolio be a good option for long term? Is there a better option for an Australian resident? I've also heard good things about index funds, what ratio of these two should I be going for?

t3_u6yrgl

investing

Why I bonds could be bad for an emergency fund

I've been considering migrating my emergency fund into I bonds by purchasing the 10k every year, and after each year has cleared, withdrawing 10k from my current emergency fund (high yield savings). Here are my thoughts: First some math on the difference - for each 10k in I bonds instead of a high yield savings account (assume 0.6%), you will gain... * this year: 8.37% - 0.6% = 7.77% = $777 * at target inflation: 2% - 0.6% = 1.4% = $140 For years like 2022, which are not the norm, it's clearly a nice bonus. The amount becomes much less impactful when we're at or close to target inflation. Long term, I would characterize the additional earnings as nice to have, but nothing that will meaningfully impact your overall financial state. However, during however many years it takes to build an appropriate emergency fund in I bonds, you must also keep the remainder plus the currently seasoning 10k in an alternate source. This is 10k that could otherwise be invested. Still, once your emergency fund is fully transferred over you're in good shape, right? Well yes, unless you have to actually use it. First, it's a little harder to access. I couldn't find much on this, but it seems like best case you could access your money in 2-3 days. Not terrible, but not truly liquid. It's likely a good idea to keep some amount of your emergency fund in something immediately available like a high yield savings account anyways. Second, if you need to drain your emergency fund, which is what it's there for, you are now back to square one and need to spend however many years building it back up again. The extra 10k you need to hold will likely be even more of an inconvenience right after a large unexpected expenditure. While I was originally keen to jump in on I bonds for my e-fund purposes, I'm now seriously questioning if it's actually worth it.

t3_u6su48

investing

Buying after a major companies failure.

I’m 30 and only invest in mutual funds, but I’ve always wanted to invest $500-$2000 in companies that take a higher hit from a PR issue or failure. For example I render when Boeing was sub $100 and thinking this is it. This is going to be a money maker. I didn’t do it. Does anyone have any data on something like this and the chances of Major gains vs company bankruptcy? Boeing was my example because I see the chances of them going down completely seemed impossible bc of their military contracts alone

t3_u6sgb7

investing

Question about bonds and rising rates

I am down about 10% on my Vanguard BND fund in the last 12 months. I thought that bonds basically meant that you loan your money and get a very small premium at the end of the term. Will these funds recover eventually if I keep holding, assuming the interest rates stabilize?

t3_u6qe5p

investing

Which index fund(s) do you hold?

So after almost 15 years investing in individual stocks (and doing quite well, mind you) I’ve recently switched to an ‘all-in index fund” approach. I’ve found that trying to pick individual stocks to beat the market takes up far too much of my time… especially as I continue to age. I don’t trust my ability to beat the market with stocks over the long term nor do I desire to spend even a fraction of the time I’ve spent conducting DD. Also, I’ve found that I’m quite bi-polar acting in the market. Oftentimes switching in and out of names in attempts to time the market or easily being spooked by negative news headlines. So… I’m now in VOO. Legends like Buffett have said time and time again that you can plant your money in the S&P and sit on your hands. And, I of course agree. But I’m interested in what others who take a similar approach, in only holding index funds, hold in their portfolio. So… do you guys mind sharing? Are you all in on one fund or many? And which ones? Thanks ahead of time for the discussion!

t3_u6q0tz

investing

Jim Cramer's, 04/14 Mad Money Stock Recommendations

These are Jim Cramers recommendations from his 04/14 Mad Money Show |Company|Ticker Symbol|Recommendation|Stock Price| |:-|:-|:-|:-| |1-800-Flowers (FLWS)|FLWS|buy|$13.40| |AT&T (T)|T|sell|$19.54| |American Express (AXP)|AXP|buy|$181.16| |Bank of America (BAC)|BAC|buy|$37.57| |Carmax (KMX)|KMX|negative|$91.79| |Clearfield (CLFD)|CLFD|buy|$59.02| |Freeport-McMoRan (FCX)|FCX|positive|$49.19| |General Electric (GE)|GE|buy|$90.83| |Green Brick Partners (GRBK)|GRBK|sell|$19.05| |Halliburton (HAL)|HAL|positive|$40.76| |Howmet Aerospace (HWM)|HWM|buy|$35.48| |IBM (IBM)|IBM|positive|$126.56| |Innovative Industrial Pro (IIPR)|IIPR|buy|$169.68| |Johnson & Johnson (JNJ)|JNJ|buy|$179.90| |Johnson Controls (JCI)|JCI|buy|$61.53| |Lithia Motors (LAD)|LAD|buy|$290.64| |Netflix (NFLX)|NFLX|negative|$341.13| |ProLogis (PLD)|PLD|buy|$162.70| |Procter & Gamble (PG)|PG|buy|$158.57| |Schlumberger (SLB)|SLB|positive|$43.25| |T-Mobile US (TMUS)|TMUS|positive|$132.96| |Tesla (TSLA)|TSLA|buy|$985.00| |Textron (TXT)|TXT|buy|$68.65| |Travelers Companies (TRV)|TRV|positive|$184.24| |United Continental (UAL)|UAL|positive|$45.13| |United Rentals (URI)|URI|buy|$331.07| |Verizon (VZ)|VZ|positive|$53.83| |Virgin Galactic (SPCE)|SPCE|sell|$8.99| |Zoom Video Communications (ZM)|ZM|positive|$110.31|

t3_u6poyz

investing

Any thoughts on stomp capital?

I was looking to pick up some real estate investing without the management work. Stomp capital looks interesting, they essentially get zoned as a STR and build up resort properties. They don't really have any history, though I don't see anything negative about the founder, who's been in the business for a while.

t3_u6plyb

investing

Vanguard retirement ETFs for person with little pension.

I'm currently an expat and have kind of neglected my retirement since leaving the comfort and safety of company and state retirement plans. I'm now looking to ensure the security of my future by regularly investing (mainly for retirement, but once that's seeded possibly for a mortgage to). Having set up a brokerage account, what are people's thoughts on the vanguard retirement funds? My research does they seem to be OK, but 100 brains are better than one. Thanks for your thoughts

t3_u6o19s

investing

Value with momentum investing 20.81% cagr

Has anyone researched this strategy which is back-tested by a phd? specifically the portion titled "Value (and then Momentum) Investing Portfolio Results". The Cagr is staggering at 20.81% between 1974-2014. [https://alphaarchitect.com/2015/03/the-best-way-to-combine-value-and-momentum-investing-strategies/](https://alphaarchitect.com/2015/03/the-best-way-to-combine-value-and-momentum-investing-strategies/) The strategy I'm highlighting essentially filters for the top decile of stocks based on simple value ranking then filters top half of those based on momentum, with monthly rebalancing. The specific definitions of value and momentum used here are contained in the article. I really favor this as my long term investment strategy for my roth ira and would love to hear everyone's critiques to ensure I'm not missing valid reasons to not pursue. To preempt some common counterpoints: \-there should be no excessive tax impact as it would be through a roth ira. \-no management fees as i will filter stocks once a month \-no trading fees as is the norm with brokerages nowadays ​ My main concern is forward testing this strategy. I'm not tech savvy enough to conduct this project. Has anybody else tested this beyond 2014? One index that follows somewhat of a similar strategy is the s&p smallcap 600 high momentum value index which has annualized returns of 14.92% for the 10 years preceding march 31,2021 (roughly the same or a touch better than sp500) - however the big caveats are much less frequent rebalancing and I believe it is factor weighted vs equally weighted. Point being: factor premia such as momentum and value are diluted with less rebalancing, but this shows even without the monthly rebalancing the fundamental idea of trending value has legs in recent years.

t3_u6nf1j

investing

new US Gov I-bond interest rates for April 2022 - 9.62%

don't know if this was already noted somewhere but this is a nice inflation hedge: looks like US Gov I-Bond interest rates will jump from a healthy 7.12% to a very nice 9.62% this month, for at least the next 6 months. https://keilfp.com/blogpodcast/i-bond-rate-november-2021-to-april-2022/

t3_u6milx

investing

Hot Economy, Rising Inflation: The Fed Has Never Successfully Fixed a Problem Like This

https://www.wsj.com/articles/inflation-jobs-fed-recession-economy-11650294297?mod=hp_lead_pos9 The Federal Reserve is setting out to do something it has never accomplished before: reduce inflation a lot without significantly raising unemployment. Central bank officials think it is possible with calibrated interest rate increases that slow booming demand just enough to take steam out of an overheated economy. But even one of the Fed’s closest allies, U.S. Treasury Secretary Janet Yellen, sees the risk of failure. “It will require skill and also good luck,” the former Fed chair said in public comments in Washington last week. During the past 80 years, the Fed has never lowered inflation as much as it is setting out to do now—by four percentage points—without causing recession. In this case, the central bank will need a number of factors out of its control to break its way. Still, Fed officials can find reason for both optimism and caution from history. In seven different episodes during the past 80 years, inflation has fallen as much as the Fed bank wants it to drop now, with varying outcomes. The episodes suggest that the desired scenario is theoretically possible though the risk of failure is high, especially because the bank is chasing inflation that already exists, rather than addressing the problem before it arises as it did in some earlier episodes. “No one expects that bringing about a soft landing will be straightforward in the current context—very little is straightforward in the current context,” Fed Chairman Jerome Powell said last month. The central bank, he added, faces a “challenging task.” During the early 1980s, the U.S. experienced a classic hard-landing as economists dub it—falling into a deep recession with double-digit unemployment after the Fed pushed its benchmark interest rate to nearly 20% to tame stubbornly high inflation that had been rising for more than a decade. The U.S. had less severe, but bumpy landings during the 1950s, characterized by short-lived inflation spikes and recessions. During that period, the unemployment rate rarely got very high even when economic output contracted. The 1970s delivered aborted landings, when inflation fell and then lurched higher, beset by outside shocks such as OPEC oil embargoes and policy missteps including a central bank that hesitated to raise interest rates aggressively. The U.S. has had soft landings, too, most recently in 1994. Fed Chairman Alan Greenspan sharply raised rates to 6% in February 1995 from 3% one year earlier, and the unemployment rate kept going down. Unlike 1994, however, the Fed today is trying to reduce inflation that is already too high rather than prevent it from rising, as Mr. Greenspan did back then. In the scenario Fed officials mapped out, their benchmark interest rate will rise to around 2.75% by the end of next year, just above estimates of a rate that neither spurs nor slows growth. They project inflation will drop to slightly above 2% by 2024, a rare four-percentage-point decline in less than three years. They see economic output growing at a rate between 2% and 3% while unemployment holds below 4%. John Taylor, an economist at Stanford University who is the author of an influential policy-setting rule of thumb called the “Taylor rule,” says his formula calls for the Fed to set interest rates at 5% right now. Because the Fed is unlikely to lift rates so dramatically in one year, he said officials instead ought to raise rates to 3% by December and signal more increases after that unless inflation comes down. “This is not the only time in history that they’ve been behind, but they are strikingly behind,” said Mr. Taylor. “They need to catch up and do it in a systematic and understandable way.” The Fed’s success will depend on several factors outside its control. Those include whether global energy supplies recover from the shock of Russia’s invasion of Ukraine, reducing energy prices; whether sidelined U.S. workers rejoin the labor force, easing the labor shortage and wage pressures; whether Chinese plants reopen in the face of more Covid-19 lockdowns, clearing supply bottlenecks; and whether Covid itself recedes for good in the U.S., ending related pandemic-related economic disruptions. The Fed’s job will be easier if these supply constraints ease. If they don’t, the central bank will need to push rates higher to squeeze demand, with a risk of more damage to the economy.

t3_u6m6bj

investing

What are your thoughts on CLM and its 17% dividend?

I already have some stock in CLM for 3-4 years now. it has been giving a monthly dividend of 25% for my cost. It has dropped by about 20% in the past two weeks or so. it's sitting at 17% DIV. I was wondering if I should AVG up or not. Have you done any DD on it?

t3_u6levk

investing

Best approach to Bond ETFs / Funds, currently? (Lost 12% so far & trying to understand what I need to know in the future)

I'm hoping to get some 1) understanding (education) about bonds and maybe even 2)advice (action?) about best next steps with a bond ETF that's not doing well. I just started investing a year ago, so I've been investing slowly, mainly to solidify my own education and understand the best investment approach for myself moving forward. The current bond situation seems like a perfect "learning opportunity" for me, to learn from more seasoned investors, and feel more confident moving forward, when/if I decide to keep investing in bonds. **First question: A BETTER UNDERSTANDING OF THE BOND BIG PICTURE?** I purchased SCHQ (Schwab's bond ETF), in September 2021, thinking I was "hedging" against the stock market, since that's what bonds do, right? (I had only been researching investing for a few months at that point) Clearly I was not really educated enough about bonds, bond funds, and bond etfs. It's gone down 12% since then. So can anybody share: \- What should I have looked at, back in 2021, to determine if investing in a bond ETF would have been a good move at the time? \- When is it better to invest in a bond ETF/fund vs just a bond? \- What are the best ways to invest in bonds, as a portfolio hedge? (Corporate bonds, long term bonds, short term bonds, ETFs, etc?) \- Was there something else I was overlooking when I decided to purchase SCHQ, that a more seasoned investor would have thought of? **Second question: BEST NEXT STEPS FOR UNDERPERFORMING BOND ETF?** I guess in a nutshell: What would you do if you currently owned SCHQ and it was down 12%? Would you just hold? Sell now before it goes lower? I know these are a lot of questions. I appreciate *any* reply to *any* of them. And I ALWAYS do my own due diligence and research before taking any advice, and I never take advice blindly. I just think the redditors here for sure have valuable information to share on this topic! Thank you! EDIT: Thought of one more question: **Is NOW a great time to be purchasing MORE of bonds or bond ETFs, since the prices are so low?**

t3_u6ldec

investing

What happens to secondary US Bonds in the event of a foreign debt crisis?

The WSJ is reporting increased concerns of a debt crisis in developing countries resulting from increased US Treasury rates and inflation. ​ As someone who has a sizable stake in $TMF (20+ year Treasury 3x Leveraged ETF), what effect would a debt crisis in other countries have on the US secondary bond market? ​ I would think that a default on US debt by foreign countries would tank both the primary and secondary bond markets. The primary market would get hit less, due to decrease in demand for Treasure bonds, and the secondary market would get slaughtered because all these bonds already purchased that are sitting in the ETF are now defaulted on. ​ I'd love to hear others' thoughts. ​ Link to article: [https://www.wsj.com/articles/ukraine-war-deepens-debt-woes-across-developing-world-11650187803?mod=flipboard](https://www.wsj.com/articles/ukraine-war-deepens-debt-woes-across-developing-world-11650187803?mod=flipboard)

t3_u6f648

investing

Which investment themes will grow the most over the next 5-7 years?

Which 4 of the following stock/ETF investment themes do you believe will increase most in value/price over the next 5-7 years: Electric, Autonomous Vehicles & LIDAR; Electric Battery Technology; Genomics, Personalized Medicine & Longevity; 5G; Fintech; Renewable Energy; Semiconductors; Lithium, Nickel and Battery Commodities; Rare Earth Mineral Commodities; Ecommerce; or Lab Grown Meat and Seafood? All opinions, contributions and commentary are greatly appreciated? Thanks!

t3_u6jisv

investing

Am I in an echo chamber or are index funds really the best?

I'm nearing 30 and have recently started looking doing more with my savings than just a HYSA. I found r/personalfinance and r/Bogleheads about 6 months ago and have been following their advice pretty closely (setting up a Roth IRA and investing in a 3-fund portfolio). However, I am wondering if, as a relatively younger investor, I should be investing in riskier things? I completely agree with the Bogleheads philosophy of not trying to time the market and that index funds usually do out-perform everything else — but I can't help but think that seems too easy. I also became slightly suspicious when I learned that John Bogle was the founder of Vanguard — of course he wants to sell us index funds! I'd love to hear your anti-index fund and anti-Bogleheads opinions, to help me make more informed decisions! ​ Edit: Thank you everyone for so many responses! I will try to read through everything and comment.

t3_u6k3de

investing

Can someone in plain English explain the change in OTC that Vanguard sent me?

Full email: “An update on over-the-counter securities Dear Vanguard Client, Beginning April 28, 2022, Vanguard will no longer accept purchases and transfers in of most over-the-counter (OTC) securities. This change allows us to better support a targeted, enduring suite of products and services rooted in Vanguard's time-tested investment philosophy and built to help secure the long-term success of investors. According to our records, you either currently hold at least one of these restricted securities in your portfolio or have traded them in the past. What does this mean for the securities I hold? You can continue to hold and sell your positions in these securities. You can also make additional purchases of a small selection of global American Depositary Receipts (ADRs). Here's how you can determine if you hold an ADR that won't be restricted. All three of the following criteria must apply to the ADR: - Consists of a five-letter ticker symbol that ends in "Y." This confirms it's traded OTC. - Has a market capitalization of over $300 million (in U.S. dollars). Market capitalization is the total market value of a company's outstanding shares. - Belongs to the top three tiers of the OTC markets (Pink Current, OTCQB, and OTCQX). These markets are up to date with disclosures and listing requirements. Learn more about the OTC markets and individual securities at otcmarkets.com. Thank you for investing with Vanguard.”

t3_u6eido

investing

Daily General Discussion and Advice Thread - April 18, 2022

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](https://www.reddit.com/r/investing/about/sidebar) 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!

t3_u68nc5

investing

Questions about stock options when a company is being bought out.

The company I work for is being bought. I have 750 vested options out of 1,000. My strike price is roughly 65% of the current price and roughly 55% of the price they stocks will be purchased for when the deal closes. My questions are; What happens to the other 250 options that haven't vested? If I don't exercise my vested options will they get bought at the purchase price or do I lose them? What's the best move here? There's roughly 2-3 months before the deal finalizes and my other 250 options vest in September.

t3_u65sta

investing

Looking for advice about ETF investing

Greetings investors, I've just started investing in ETFs in the last few and was hoping I could get your thoughts on my (small) portfolio so far. To start with, I want to identify long term holdings and I'm not sure how many ETFs I should invest in for this. Also, if yall have any advice on things like portfolio redundancy, please do tell me. Right now what I have is: * VOO * MGK * IUSG * VUG I was thinking of also investing in QQQ. I know this is a favorite of many, does it benefit my portfolio if I add it? I also want to invest in healthcare, and in that regard I have identified XLV. Your thoughts? Are all these appropriate for long term holding?

t3_u65jut

investing

Help structuring LLC with investing/trading in mind

Hello fellow aspiring entrepreneurs, I have a few questions about how to structure my business. I originally pursued the idea of investing as an LLC so I could form a investment fund, and shield my gains. However, upon research, I discovered that simply holding investments in the LLC doesn’t qualify me for any special treatment. My S/O then had the idea to open an LLC for my side hustle in order conduct my normal business dealings & gain favorable tax treatment by writing off expenses related to travel, equipment and training. Thus the idea then eventually evolved into building an actual business that has an investment fund for the purposes of paying for business expenses using dividends/capital gains, and securing the fund as collateral if necessary. I plan use on keeping the accounts separate from my personal investment activities. **How can I best accomplish this?** Edit: Added a missing sentence.

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