Questions tagged [investing]

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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2
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2answers
170 views

Why would zero-coupon perpetuity not be worthless (simple enough so grandma understands)

The context is the negative yielding treasuries in Europe (Germany). Here is a quote I found on the matter: Why would a zero-coupon perpetuity not be worth exactly zero? Because its nominal value ...
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0answers
31 views

DCA into an index? [duplicate]

We have acquired a large sum from the sale of a home and want to invest it responsibly. Our long term return expectation is a mere 6.8%/yr, selected by looking at the worst 20yr stretch of the SP500 ...
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0answers
39 views

Where to buy commodities and stock for long time in Europe [on hold]

I am from Europe and I try to find a website that I can buy commodities and stock for long time, without paid overnight fees that they paid in forex. Do you know any website that support Europe and i ...
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3answers
227 views

Reasons to invest in 401k vs pay off loan in 1 year?

I have ~$70k across 401k and Roth IRA. I have federal student loan at $17k with 3.8%. Thus, my NW is $53k. If I choose to invest $19k into my 401k and assume the average rate of return of 7%, my 401k ...
0
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1answer
202 views

What is “the liquidity illusion”

I came across this visual, but it's a bit complicated, I haven't been able to make sense of it. In so many words, the way I read it is: if defaults pile up, the market is spooked, spreads increase ...
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1answer
39 views

How to find ETFs that meet both criteria: region (Asia/ China) and sector (technology)? [on hold]

Is there a Chinese stock index comparable to the NASDAQ 100 or NASDAQ Composite covering Chinese technology stocks with the highest market cap? And are there corresponding ETFs or Mutual Funds?
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3answers
317 views

Is it free riding if you buy and sell the same stock on the same day

Suppose you have $0 balance in a cash account. You buy ABC for $1000, and sell it for $1050 on the same day. Is it a free riding violation?
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0answers
139 views

What's are things I can do with my extra money that I'm not thinking of?

Here's a brief description of my situation. I'm 26, have 2 houses, few side businesses and a normal w2. One house is rent-free since family lives there and pays half the taxes and keeps it maintained....
1
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1answer
92 views

Question about a quote from The Intelligent Investor

I am having a bit of trouble understanding the following quote: Companies that are inherently speculative because of widely varying earnings tend to sell both at a relatively high price and at a ...
2
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3answers
333 views

What's the rationale for the advice 'don't try to time the market'?

Common investment advice is 'Don't try to time the market, just pick a risk profile and stick with it'. With the inverted yield curve and a fair bit of talk about an upcoming recession - it seems ...
0
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1answer
70 views

I want to invest in Asian technological firms. In which ETFs or other product should I invest? [closed]

I am looking for an Asian Nasdaq index or something like that. Maybe investing directly in the US market where some of the largest Chinese companies IPO have taken place makes sense. Any insights?
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0answers
14 views

Tax treatment of PFIC when investment is done monthly

I work in the US. Towards the end of 2016 I started investing in Indian Mutual Funds through an investment management acquaintance of mine. This has been with my income that is already taxed in the US....
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3answers
235 views

Why would one buy a bond with negative rate? [duplicate]

I see presently that many countries outside the U.S. have negative rate government bonds. So you buy one for $101 and in 5 years you get $100 back (face value). (I picked numbers for simplicity). I ...
0
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1answer
116 views

Which is the stock symbol of C3.ai?

I've been trying to find the stock price & symbol for this company https://c3.ai But so far, it's been a fool's errand. There are a few websites which talk about its capitalization, the major ...
2
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1answer
170 views

Why do UK Property developers/investors create a company for each property they buy?

I am currently researching on UK property development and buying. An interesting website for that is the https://beta.companieshouse.gov.uk/website. While browsing through it, it became apparent to ...
10
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3answers
3k views

What do “unsettled funds” mean?

I sold my ETFs today in a non-margin account in an online trading platform. 99.99% of my account currently consists of unsettled funds. What does it mean that they are "unsettled funds"? Does it mean ...
0
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1answer
116 views

Asset class with highest long term return

I have heard, as a loose rule, assets classes which have low volatility, generally, have low returns. Good to hold on to close to retirement time. Conversely asset classes which have higher ...
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2answers
38 views

“Projected Average Cash Yield” vs. “Projected Yield per Annum”

I'm looking at the cover sheet for a potential investment, and I see something like this: Projected average cash yield is 8%. Projected yield per annum 12%. What is the difference between "...
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3answers
337 views

What's stopping a company from intentionally reporting poor guidance to tank the stock and enabling them to buy-back shares at a massive discount?

From Investopedia: Many companies issue disclaimers when they issue forward-looking statements. Despite an implicit understanding that certain statements are largely speculative in nature, the ...
6
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3answers
621 views

How should I save/invest for my son

I had a son 8 months ago and we opened a savings account for him that already has a few thousand in it from various family members, and I have set up an auto transfer of $50/month into it from my ...
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0answers
78 views

How much are index providers accountable to their clients?

Criticism on index providers: The increasing influence of indices means that some critics argue that benchmark providers such as MSCI are too powerful, given that promotions or relegations can ...
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2answers
172 views

30 yr mortg + IRA/stock market, OR 15yr mtg then 15 yrs IRA/stocks

I'm planning to refinance the mortgage given the low rates these days. Need to make a choice between a 30 yr fixed and a 15 or 20 yr fixed. Monthly household budget can accommodate any of the mortgage ...
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3answers
101 views

What is the correlation (if any) between earnings report and stock price movement?

This might sound like a dumb question (I'm relatively new to the stock market). I know this doesn't happen, but why doesn't the stock price directly move in accordance to the earnings reported vs what ...
2
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1answer
82 views

Risks involved in debt funds and recessions?

I have following questions related to various risks in debt funds: Are gilt funds safe during recession? I feel yes as they invest in government bonds, even though though they involve some inherent ...
4
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2answers
209 views

what is the possibility of USA having negative interest rate [closed]

There has been attempt at reducing the interest rates. Apart from, elderly and savers depend on the bank interest and Stock market is driven by interest rates, the true cost of money if becomes ...
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8answers
11k views

Why would anyone ever invest in a cash-only etf?

I understand the benefits (and risks) of ETFs, and I also understand the benefits of a term deposit in a bank. I have seen that there are ETFs that essentially keep the investment in cash, that is, ...
7
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3answers
3k views

Is my investment strategy a form of fundamental indexing?

I have a peculiar investment strategy for building up my portfolio. I invest in companies that produce what I need. To illustrate my investment strategy, it works in the following manner: I identify ...
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0answers
36 views

One RA vs multiple RA's (investments in general as well)

I am young and trying to work out how I want to get a retirement annuity sorted. My question is, is it better to put 9 in to one RA, or 3 3 3 in to 3 different RA's? (here I just use the numbers to ...
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3answers
282 views

All my investments goes through the same financial firm. Is that a bad idea?

In the past year, I invested $1k per week in a diversified portfolio through a financial firm. The money belongs to my incorporation. My goal is to invest as much as possible and never use it, ...
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0answers
51 views

Calculating the Nominal Rate of Return of a dividend paying stock

How is the nominal rate of return for a dividend paying stock calculated. I understand that nominal return is calculated using the formula: (Current Market Value - Original Purchase Price) / Original ...
35
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8answers
11k views

High income, sudden windfall

I currently earn quite a good salary (around $250,000 Australian dollars per year). Due to a recent investment coming good I am expecting to be receiving a windfall of around $1.2 million Australian ...
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2answers
142 views

Lowering mortgage downpayment vs Investing in stocks? [duplicate]

I live in a country where currently mortgage interest rates are historically low (around 3-4% for 300K 30 years mortgage, and the interest is also tax deductible), and the banks are willing to finance ...
2
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2answers
148 views

Protecting onself from steep losses with a stop-limit sell order

I would like to get some feedback if there are any obvious flaws with this strategy of limiting my losses when there's a steep drop in stock price due to negative report after hours. Suppose I own ...
4
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6answers
544 views

How to start building wealth from a young age?

NECESSARY INFO Hi, I'm 15 years old. I just won $1200 from an editing project. I could spend all of the money on things like smartphones and stuff that I want. But I believe it's preferable to be ...
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1answer
269 views

How to start investing at a younger age?

I am currently 23. I live in Quebec, Canada and I work full time at $17.31 per hour. My salary will increase 1% to 6% every December. For the time being, my cost of living is relatively low. I ...
0
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2answers
90 views

How to interpret negative bond yield quote

I am trying to understand investing in (non-us) government bonds. Looking at data I can find online regarding the bonds available in my broker is giving me information I can't make sense of. For ...
3
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3answers
451 views

Is this partnership offer for a property I am selling a scam?

I have published an advertisement on a classified website to sell undeveloped land I own in Sri Lanka. Through this, someone contacted me by email saying he wants to "invest" in the property. He ...
0
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0answers
42 views

What impact does currency exchange mark-up have on broker fees?

Let's say I held £100,000 in Interactive Investor and wish to add £20,000 to my investment each year in monthly instalments. They charge £10/month for a standard account[1] that offers one free trade ...
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0answers
74 views

What do I need to know about investing in developing countries?

My wife is Sri Lankan and we have some cash assets there, but we both live in Australia. Sri Lanka has restrictions on taking money out of the country - essentially it looks like you can only take $...
5
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3answers
2k views

Investing 30k Euro as a student with basic financial knowledge but lack of time

Context: I'm a 20-year old student with about 2 years of studies left, and have saved up about 30,000 Euros. A sizeable part of my studies includes finance, at a reputable school. Because of ...
5
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2answers
240 views

Are large brokers audited to ensure client funds are ring-fenced?

In the UK we have a Financial Services Compensation Scheme (FSCS) that covers investors for up to £85,000 if their broker goes bankrupt. We also have a law stating that brokers must ring fence their ...
6
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1answer
341 views

Should I pay down mortgage faster or Invest?

I've a appx 450K mortgage left at 2.49% (5 year term with a 25 year mortgage). I've a few options to pay my mortgage faster Increase principal payment amount once/year Change payment frequency from ...
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1answer
38 views

What condition might cause Equities to rise, and corporate bond spreads to rise as well? [closed]

I was wondering about this earlier and I'm stumped.
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2answers
149 views

Why must leveraged ETFs rebalance nightly / Why are there no leveraged ETFs that don't?

From what I understand, investing is leveraged ETFS is generally for short term holders such as day and swing traders because they rebalance nightly and over the long haul don't provide the returns ...
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3answers
168 views

Two investments with same % returns but different dollar returns

If two investments have returns of 20% and the same amount of risk but: InvestmentA: returns $200 requires more capital InvestmentB: returns $50 requires much less capital than A Is InvestmentA the ...
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0answers
49 views

What does unit value represent in a mutual fund?

I've been utilizing an app that allows me to manually track all of my portfolios and see how investments are performing individually, per portfolio, and/or as an entire financial asset. I've pulled in ...
13
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9answers
5k views

Should I increase my 401(k) contributions, or increase my mortgage payments

I have about $150k remaining to pay on my mortgage. There are 7 years left at a 3% interest rate, then after that the rate goes variable and increases to about 10%+. There's no penalty for paying the ...
0
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2answers
374 views

What does “burned through $300 million mean”?

In the book "Antifragility of Islamic Finance: The Risk-Sharing Alternative" by Umar Rafi and Abbas Mirakhor, on page 101 I read the following line: "Pets.com, the poster-child company of the dot ...
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1answer
80 views

Is it wise to invest money in USD or INR? [closed]

I have both USD and INR, and considering the interest rates are the same, which one is better to maintain the maximum currency in to yield maximum profit?
5
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1answer
109 views

What's the equivalent of the U.S. Securities and Exchange Commission in the Netherlands?

I'm looking for 10-K financial statements and I can't find the SEC.gov equivalent in the Netherlands.