Tagged Questions

Investing is growing money over a longer time frame. When appropriate a specific tag like stocks, mutual funds etc should additionally be used.

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33
votes
15answers
9k views

I carelessly invested in a stock on a spike near the peak price. How can I salvage my investment?

I carelessly invested on stock on a spike (I have been persuaded by a family member) and now my investment value is really low, as you can see below. Is there anyway to salvage my investment for ...
3
votes
1answer
142 views

What is the coloring convention should I adopt for Buy and Sell

This might be more of a UX question, but since it relates to buying and selling of stocks, I wanted to ask if there is a standard coloring convention for Buy and Sell like we have for Up (Green) Down ...
0
votes
1answer
152 views

Buying Nasdaq stocks from outside United States

I want to invest in some companies listed on NASDAQ, but the financial intermediary firms in my country (Turkey) require high commission fees on transactions. Is there a reliable solution to make ...
2
votes
2answers
142 views

How to calculate ROI on investments? [duplicate]

I looked through the previous questions, and couldn't find one that quite addresses my question. If I start with $1000, and through investing it goes to $1200(100 shares at $10 go to $12), I can say I ...
1
vote
1answer
147 views

Does Vanguard grant admiral shares only on a per-account basis?

I want to hold Vanguard Total International Stock Index Fund in a Roth IRA and a taxable Vanguard account. Together they would total over $10k, but apart they would individually be under $10k. Both ...
17
votes
3answers
426 views

How to invest in stocks without using an intermediary like a broker? Can shares be bought direct?

I am looking to buy stocks but I would like to do so without a broker. From what I can tell, the exchanges are good ole boys clubs that require you know (or pay) someone in order to participate. Am I ...
1
vote
1answer
187 views

How to dollar-cost-average with a large amount of money in a savings account?

A risk-neutral person, intending to not reach the IRA retirement age, earning approx, $30,000 per year, in his late 20's has $100,000 in a savings account and wants to end up with: 80% Stock (of ...
0
votes
1answer
74 views

Online streaming video/audio financial/stock programs

I don't have cable TV, so can't watch CNBC or other financial channels. So can someone suggest some online financial programs? I am looking for both streaming ones (for real-time news) and some talk ...
3
votes
2answers
161 views

How can I calculate (approximate) the future value of my investments? Is this formula appropriate?

I want to check to see if I'm meeting my investment goals, so I want to project forward my assets given a growth rate and a monthly deposit amount. What is the best formula to use for this? Is this ...
4
votes
3answers
108 views

Is there any evidence that “growth”-style indexes and growth ETFs outperform their respective base indexes?

For example Vanguard has the Vanguard S&P 500 ETF and the Vanguard S&P 500 Growth ETF. Just looking at the returns, it looks like the growth ETF has outperformed the S&P 500 ETF: ... ...
7
votes
2answers
254 views

How does Vanguard determine the optimal asset allocation for their Target Retirement Funds?

Until 25 years before retirement, Vanguard Target Retirement Funds all have an identical asset allocation of 63% U.S. stocks, 27% international stocks, 8% U.S. bonds, and 2% international bonds. I ...
3
votes
3answers
175 views

Getting financial advice: Accountant vs. Investment Adviser vs. Internet/self-taught?

Previously, I was a simple case: I earned a salary, and I paid taxes. Therefore, I've been filing my own tax returns using online software. Now: + wife, + kid, + mortgage, + want to contribute to ...
3
votes
2answers
683 views

Is there any benefit to pooling money with family members to buy a mutual fund?

I'm thinking of investing some money into a mutual fund and am curious whether it's worthwhile to just pool my money with my dad and do so? He already has a mutual fund set up, and I'm curious whether ...
4
votes
1answer
107 views

Investment for young expatriate professionals

I have read this thread Best way to start investing, for a young person just starting their career? and I was interested by many of its topics. I am myself a young professional and I am working in my ...
2
votes
1answer
158 views

Why do many British companies offer a scrip dividend option in lieu of cash?

Some stocks like GlaxoSmithKline, HSBC, Tesco, Unilever all offer dividends every quarterly/yearly, with the option of scrip dividend (opting to use the dividend to purchase shares). Why would ...
11
votes
7answers
4k views

Why does the share price tend to fall if a company's profits decrease, yet remain positive?

I often see news reports along the lines of "Company X has posted a profit of $100 million, 20% lower than the previous year." This kind of news frequently causes the company's share price to fall. ...
7
votes
5answers
1k views

What should I do with my $25k to invest as a 20 years old?

I have been fortunate enough to learn the skills necessary for a decent paying job at a fairly young age in computer engineering. I have $25k in my checking account, and I need a sensible means of ...
4
votes
2answers
92 views

How to make an investment in a single company's stock while remaining market-neutral?

Supposing that I "believe" in one particular company, but I'm worried that the stock market may be in a bubble overall. How can I invest accordingly? How can I invest in one particular company, while ...
1
vote
0answers
52 views

Where to find turnover / average amount of time investors & mutual funds held stocks they purchased?

In the book The Intelligent Investor, Jason Zweig mentions the annual turnover rate for stocks on the NYSE, that is the average amount of time investors and mutual funds held stocks that they ...
4
votes
3answers
321 views

Allocation between 401K/retirement accounts and taxable investments, as a young adult?

I graduated college last year and began a career at a company with a 401K option. I cannot pull any money out of the Roth 401K without tax consequences or a penalty. I am interested in starting a ...
3
votes
2answers
115 views

Is it better to hold tax-inefficient investments in tax-deferred versus tax-free accounts?

This page seems to suggest it is preferable to hold tax-inefficient investments in tax-deferred versus tax-free accounts. Is there an explanation for this? Holding tax-efficient investments in taxable ...
6
votes
1answer
137 views

Where to categorize crypto-currencies

In Germany, crypto-currencies like Bitcoin are all over the news lately, making me aware of the fact I don't know much about them. A journalistic TV program I was watching yesterday even claimed ...
4
votes
3answers
132 views

Is there any reason to diversify your investments across accounts at multiple/different brokers?

I have a few retirement accounts at Vanguard. I am considering opening a regular non-retirement investment account there. Is there any reason to diversify and open the new account with a different ...
2
votes
1answer
246 views

Bond : Difference between coupon and yield

On a bond chart, I always see the terms: Yield & Coupon, which seem to mean the same thing. What is the difference between these two terms?
1
vote
2answers
259 views

How do dividends of the underlying security in a security futures contract affect the security futures price?

I would assume that increases in any dividends would increase the price of the underlying security, therefore causing a relative increase to the security future price. Or is this relationship more ...
1
vote
1answer
51 views

Is it possible to use an ETF's/index's price near market close to time my investments in its corresponding mutual fund?

I want to make monthly purchases of an S&P 500 index mutual fund. Most of the time (according to the numbers I looked at), if the index closes down for the day, the mutual fund's NAV will decrease ...
6
votes
3answers
653 views

What is the “rule of 70” or “rule of 72” with regards to investment, and how do I apply it?

What is the "rule of 72" (sometimes called the "rule of 70") with regards to investment, and how do I apply it?
4
votes
1answer
351 views

How do share dilution scams make money?

The wiki article on share dilution scams says A share dilution scam happens when a company ... repeatedly issues a massive amount of shares into the market (using follow-on offerings) for no ...
1
vote
1answer
71 views

How to select a service to use to begin making investments?

I'm looking to make a small investment in stocks. I like the idea of ETF's and since I'm based in Ireland I'm considering using Davy : http://www.davyselect.ie/our-services/self-invest.html Is this ...
2
votes
2answers
306 views

What's a recommended minimum amount for buying an index ETF, to minimize fees/commissions?

Let's say every month I transfer $559, which is about 3 shares of VOO. The commission from Fidelity is $7.95, which is about 1.42%. Is it worth doing that, or better, every other month buy worth of ...
1
vote
1answer
54 views

Relationship between Home, Net Worth, and REITs

Source: P215, ETF for Dummies, 2nd Ed (2011) by Russell Wild: Your residence, your portfolio If you bought your home for, say, $130,000 some 26 years ago, and that home is now worth $1.3 ...
3
votes
3answers
85 views

Source of income: from dividends vs sale of principal or security

Source: P172, P214, ETF for Dummies, 2nd Ed (2011) by Russell Wild: P172: First, if you need a steady stream of income, nothing is stopping you from creating artificial dividends by selling off ...
1
vote
2answers
112 views

Suppose earning an APR of 7% for 5 years, with interest compounded quarterly. What is the EAR? What is the Total Return?

Suppose you earn an APR of 7% for 5 years, with interest compounded quarterly. What is your EAR? What is your Total Return? The part I am confused is "with interest compounded quarterly" The ...
13
votes
7answers
1k views

Pros & cons in Hungary of investing retirement savings exclusively in silver? What better alternatives, given my concerns?

For my retirement savings, my strategy is to buy a decent amount of silver (8% of my salary, roughly 1 month) every year to put away in coin form. I am currently investing in nothing else for the long ...
1
vote
1answer
133 views

Are stock screeners with backtesting a real possibility for a trading strategy?

Some stock screeners offer backtesting. They may sell everything and buying 10 top stocks passing their criteria once a month. There can be many different rule sets, all with stellar returns over ...
2
votes
1answer
43 views

Deflation Risk on TIPS

From P18 in ETF for Dummies, 2nd Ed (2011) by Russell Wild: Such bonds do, however, carry interest-rate risk, and another risk that’s unique to them: deflation risk. If consumer prices start ...
8
votes
2answers
899 views

Explanation on Warren Buffett's famous quote

What does Warren Buffett says in this article here "In the short term the market is a popularity contest; in the long term it is a weighing machine." What is the analogy with popularity contest ...
5
votes
2answers
239 views

If I'm cash-flow negative, should I dollar-cost-average the money from my bonus over the entire year?

I asked a similar question last year, and got great advice. This year, there's a new wrinkle. I previously had automatic investments set up to move a small amount of money each day from cash to a ...
1
vote
2answers
52 views

How can I determine my basis for a gift of mutual funds?

My parents, saving for college many (20+?) years ago, purchased some Evergreen mutual funds for each of their children. I believe the accounts were established in the children's names. Thanks to some ...
27
votes
8answers
6k views

I'm saving money too fast. What should I do?

[Apologies if this sounds (and is) like a first world problem] I get a very generous salary and I am not a spender. I am able to save $2000-$2500 every month. I've invested part of my money in some ...
1
vote
1answer
122 views

Net Present Value (NPV) Question?

i hope i'm right here for asking. I'm a little stuck with this question any help is appreciated You have invested 5 million Euro in a wind turbine and expect an annual return of 600,000 Euro (6000 ...
2
votes
4answers
248 views

What to do with savings for 3-5 years?

Here's the situation: Married, late 30's, combined income around $170k. 2 toddlers. We owe $360k on a house worth $600k. Only other debt is $20k each in student loans. 401k plans are in order. We have ...
2
votes
1answer
61 views

Inverse Relationship between Volatility and Beta

From P78 in ETF for Dummies, 2nd Ed, by Russell Wild : Beta’s usefulness is greater for individual stocks than it is for ETFs, but nonetheless it can be helpful, especially when gauging the ...
4
votes
3answers
167 views

How do I bet one stock will outperform another stock?

How can I bet that company (a) will outperform company (b)? It seems like the simplest way would be to buy long company (a) and short company (b). However, this strategy seems crude since I will still ...
2
votes
2answers
147 views

Does a stock really dip in price on the ex-dividend date? And why would it do this?

As per this Investopedia article: Because the stock price is expected to drop by the amount of the dividend on the ex-dividend date, Why is a stock expected to fall on the dividend date? Does ...
3
votes
1answer
77 views

Differences in conditions on shares to private vs. public shareholders?

The Wikipedia page about IPOs says this: A company selling shares is never required to repay the capital to its public investors. Does that mean that stocks bought on the stock market are somehow ...
1
vote
2answers
443 views

When to start investing in an index fund? Wait for a bear market, use dollar cost-averaging, or another approach?

I think index funds are one of the best investment tools for the defensive investor. Still, when should one start investing money in an index fund? It could result in a loss to get in at the top of a ...
6
votes
2answers
120 views

If the housing market is recovering, why would a REIT index ETF (e.g. VNQ) not be performing well?

As you can see below, the Vanguard REIT ETF fund hasn't been doing very well for the last 6 months, but the housing market seems to be improving every month. Why do we have this difference? VNQ ...
4
votes
2answers
153 views

What to consider before buying (exercising) a family member's private company employee stock options, about to expire?

My brother-in-law is leaving a private tech company. He has $100,000 in stock options (fully vested) which he must either purchase, or abandon completely upon his exit. This is not a startup — ...
5
votes
1answer
264 views

Should my retirement portfolio's asset allocation become more conservative over time?

It seems to be common advice that a retirement portfolio should be invested aggressively when one is young, and conservatively when one is older and closer to retirement. Is this good advice? ...