Questions tagged [investing]

Investing is the process of buying assets such as securities, real estate and other items of value that will hopefully increase in value over time, providing a return in the form of income payments or capital gains.

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0answers
72 views

Why do stock (and forex) prices change over weekend, when the market is supposed to be closed?

I am checking out Apple's stock on TradingView on a Sunday night and it shows its price fluctuating? How is that possible? Isn't the stock market supposed to be closed on weekends? Same with forex. If ...
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1answer
94 views

What happens with funds whose underlying is in a different currency if there is hyper-inflation?

Let's suppose that a british investor invests in a mutual fund whose underlying is in american dollars, but which is bought in pounds sterling. This means that the fund's managers convert the pounds ...
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5answers
7k views

What does "not touching the principal" actually mean?

When talking about "trust fund children" or large savings it's common to hear the phrase "not touching the principal", which means that only the "earnings" from the money ...
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6answers
951 views

How to split monthly profits in a co-owned (mortgaged) home when we invested different downpayments, and only one of us lives there?

My brother and I are buying a home for 415k. The Downpayments are uneven; I pay $28,500 (68%) and he pays $16500 (32%). It seems fair to split profits when we sell the house proportionally to this ...
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3answers
84 views

Investment instrument for investing money saved for a used car

I have saved money which I plan on using to purchase a used car in the coming years. The amount saved is the purchase price for a used car right now in April 2021 and I would like to make sure that I ...
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1answer
90 views

OTC stocks and their foreign stock exchange equivalent

Do OTC stocks trade similarly to their foreign exchange equivalents? I'm looking at a company that is not available for US investors on the ASX, but it has ticker on the OTCQX. My broker shows me ...
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2answers
2k views

Type of account for investing surplus funds when planning to retiring early?

How do people retire early? Say that their debts (including house) are paid in full, they have ample money already saved in IRAs, 401ks, etc., they are expecting a pension, and have earned enough SS ...
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1answer
57 views

What is the effect of rising interest rates on a Bond Fund?

For Example: Assume you purchase $1,000 of a bond fund. If the bond fund has an average duration of 5 years and general interest rates increase 1% , what is the impact on the value of the bond. What ...
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2answers
129 views

Taking out a 401K Loan vs. Liquidating Investments - what's better?

Let's assume the following: I need $50K for various expenditures (aka simply spending, not paying off CC debt or putting the money somewhere else). I can either liquidate regular taxable investments ...
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1answer
173 views

How to calculate capital gains on multiple trades of the same stock?

I'm curious what is my capital gain for tax purposes if I trade a security and never sell my entire position? Here's an example of what I mean: In January, I buy 10 shares of Stock A at $1 per share. ...
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1answer
29 views

FBAR reporting: how to report fund investments made at a local foreign bank

I have some investments in Bradesco in Brazil and need to report them on FBARS. However, I'm not sure how this is done for two reasons. 1) These investments all go through my main Brazilian checking ...
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1answer
179 views

How should money sitting idle in a bank account be invested? [duplicate]

I've been working for a couple of years still living in my parents home with no outgoings, meaning all my money goes straight to the bank. I've saved around £30'000+ but I'm unhappy with money sitting ...
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4answers
272 views

Why don't countries invest?

As a young person starting work and higher education, there is a lot of advice to begin saving and investing (the most common thing I hear is to invest into a Roth IRA but I'm Australian). Often it ...
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2answers
252 views

Where can a normal person get the same leverage Bill Hwang got to buy stocks?

Please don't argue about how risky or irresponsible such a trading strategy is. Many financial publications described that Mr Hwang got a leverage of about 1:5 meaning for each $100 of his own money ...
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4answers
3k views

Mid twenties, no debt, maxed out all contributions to "common sense" stuff, what can I do to maximize the value of my money now?

I'm in my mid twenties living in the US, in a relatively inexpensive city (my rent is 930 a month). I max out 401(k), 80% going to Roth 401(k), 20% traditional 401k (I expect I'm going to have to pay ...
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0answers
33 views

Investing in Index Fund as a foreigner

I want to invest in index funds like Vanguard / Fidelity. I'm from Indonesia and from what I've checked Indonesia is not one of the eligible country. It is possible to buy the ETF directly from etoro/...
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0answers
43 views

Diversification vs VTSAX

What advantage do I gain by holding a mix of mutual funds over just VTSAX? One oughtn't put all one's eggs in one basket. One mitigates risk by holding multiple distinct asset classes in multiple ...
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1answer
170 views

Candlestick chart doesn't seem to make sense

This is a candle stick chart I saw in the market. The question is about the part I annotated. In the red bar, it opened at the top of the rectangle and closed at the bottom of the rectangle. How come ...
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5answers
1k views

Are new dividend investors severely disadvantaged by ongoing rising dividend growth stock prices?

If popular dividend stocks such as those on the "dividend aristocrats" like JNJ and MMM continue to climb over time, won't new investors like myself be severely disadvantaged buying into ...
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3answers
4k views

Why a bank would propose a depositor to invest part of their money to mutual funds, instead of bank doing it itself?

Currently, some banks in Greece propose their depositors (via financial consultants) to invest their money in foreign mutual funds. Their main argument is that deposit interest rates are close to zero ...
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1answer
139 views

What does this mean,"Reinvigorating Human Capital"?

This was one of the six pillars of the Union Budget for the year 2021 for my country.It would be great if someone can explain me this.
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2answers
112 views

calculating stock investment return

Please help. I am stuck. I am still pretty new to investing, so please be nice and a simple explanation is much appreciated. I want to calculate the capital gains (NO DIVIDEND) annual return of a ...
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12answers
10k views

Investor Paradox. How can you calculate how much is a company worth when buying part of it changes the total value?

I have a (probably very simple) question to which I haven't been able to wrap my head around. Say I have a company, and I am told that it is worth 1 USD (100% of the company). My friend, who has 1 USD,...
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2answers
161 views

What are "G-secs"?

I am having a slight trouble in understanding this. I seriously do not know what it means by "G-secs". I have heard this word in the article posted below. What does it mean when someone says ...
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1answer
199 views

Why is it common to selloff SPAC shares just before merger?

There is a company I am familiar with that is the target of an SPAC. I'm unfamiliar with investing in SPACs, but what I have learned is that more often than not, the price of the ticker drops after ...
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0answers
28 views

How to calculate annualized returns given table of DCF?

I was reading the Dhandho Investor by Mohinish Pabrai, and I came acorss this table: . In context to this table the author goes in to say that for and investment of 5000$ the owner makes a 21 bagger. ...
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1answer
118 views

If I invest in my friend's trading based company that signs a contract to a fixed RoI can the gains be treated as long term if I leave it for a year?

So my friend has a company that seeks investments from friends and family (possibly other acquaintances too). They invest these funds into stocks, etfs, derivatives, etc using their patented ...
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1answer
51 views

Old option chain symbols

I am going through my investment history, but there are a lot of option trades that don't make sense. For example, in 2009, "OZC Jan 22 2011 25.0 Put" was the $25 put for QQQ expiring in ...
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1answer
72 views

Asset allocation and keeping cash as an asset in a foreign currency?

I already have an emergency fund with which I am comfortable with and no debts. The emergency fund is in euros, my local currency. This question concerns the asset allocation of my investment ...
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6answers
2k views

Formula like Kelly criterion for choosing how much of an investment to liquidate?

I made a few investments, and surprise, surprise, a few of them shot up in value. Now I'm faced with the dilemma of the greedy: do I sell now and capitalize on existing profits, or do I wait, risking ...
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0answers
17 views

How to read Mutual Funds's Exp ratio and its Yrs Average Annual Returns

I have read the following comments on this forum: Over long horizons, you absolutely want to minimise the expense ratio – a seemingly puny 2% fee p.a. can cost you a third of your savings over 35 ...
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0answers
26 views

how to evaluate Mutual Fund with overall return including Exp Ratio?

I am trying to learn how to choose mutual funds for long-term investment. My goal is to max the return. Fund A is simple. Exp Ratio is lower. Fund B has more restrictions. The Average Annual Returns ...
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1answer
110 views

Will mutual fund managers be penalised or even fired if their fund performance is too poor?

In my country, the banks always package mutual fund as a "safe", "diversified", and yet potentially "high return" investment as oppose to buying a stock. Most of the time,...
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2answers
143 views

What is the highest return risk-free investment available?

Investing is about balancing risk and reward. Any good investment will typically allow for nominal risk for a healthy return, but let's suppose that's not what I'm looking for. I want something with ...
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6answers
5k views

Is a Roth IRA good for a high schooler?

I am a high-school Senior who will not earn enough income working this summer to have to pay income taxes. I have a full ride to college, so I was thinking of using my earnings/savings for retirement. ...
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1answer
165 views

A trading program that modifies its own risk management?

The idea is that the machine would learn what level to put stops at, and where to put take profits. For example, the machine gets input about security ABC and learns the best place to put a stop. It ...
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2answers
42 views

Valuation of cash flow produced by a valuable asset

How should a cash flow produced by an asset of value (such as a stock or piece of land) be valued when the receipt of that cash flow is dependent on the ownership of such asset? For example, consider ...
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1answer
94 views

How do I go about seeking capital/investment to develop/build a sustainable farm

I have been dreaming of building/developing a sustainable and regenerative farm (say in Arizona, New Mexico, Nevada or Colorado). I live in California. If I buy a piece of land that has 2 or more of ...
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1answer
83 views

Investing recurring aggregated short-term funds

I have half a dozen "buckets" of short-term cash sitting in money markets; e.g., vacation fund, unforeseeable house repairs, a post-COVID wedding reception, etc. Looked at individually, none ...
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6answers
595 views

Why should we expect the stock market to continue to generate returns long-term? [duplicate]

It is often said that the market is expected to go up in the long-term, even if it may be shaky in the short-term. The argument offered for this proposition is a simple visual picture of the S&...
2
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1answer
46 views

Do Total Market funds include all market capitalizations?

Building up my IRA and one of the funds I want to use is FSKAX. When I was looking at its composition, it says its a "Large Blend" and that 99.11% of its portfolio invest in companies with a ...
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2answers
83 views

Is stop buying a stock/fund because its PE ratio is very high considered "to time the market"?

The advise "Don't time the market" alludes to not operate on it merely because you think something is going to go up or down in short-term. Let's suppose a small investor has a savings plan ...
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3answers
6k views

Will Humbled Trader sessions be profitable?

I am tempted to buy Humbled Trader "premarket daily trading plan and discussion" subscription of Humbled Trader. Question: How profitable is it likely to be, based on the following facts? ...
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1answer
161 views

Should an amateur keep hands off Futures Contracts / Futures Trading?

I am a total beginner in the stock market. I have bought only 1 stock so far, but later sold it with almost 30% profit. Now as a next step, I wanted to increase my profit thanks to the leverage effect ...
2
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1answer
90 views

How to allocate assets between asset types and tax-benefit accounts?

I hoped I could simply put all my funds into a TDF in a tax credit account and done with it, but it seems it's not that easy. I'm trying to reallocate to these accounts: Individual Retirement Pension(...
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1answer
112 views

Why did this company's net income significantly increase in 3rd quarter in 2020?

This is quarterly income statement for this company: I want to know why this company's 3rd quarterly income increased from -4 to 896. and how do I find out about the answer? Thank you in advance.
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1answer
118 views

How my money be lost in an investment in shares or bitcoin? [closed]

I have no real life experience of investment world. I have read many books on investment but I don't understand how shares value could become zero and could lose all my money. I know I'm not able to ...
2
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1answer
27 views

How to Correctly Split Federal Loss From Stock/Options (1099B) Investments Between Two States?

I have been actively investing in the stock market, and received my 1099B. Mid-year, I moved states. For the sake of simplicity, Jan-Jun in State A, and Jul-Dec in State B. I have more than enough ...
6
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0answers
168 views

Do you lose ADRs Investment if the issuing Bank goes bankrupt? [duplicate]

If I buy a Foreign Country Stock through an ADR eg, Citibank and JPMorgan. And then The US banks almost go broke/bankrupt during the 2008 meltdown (as example), would I lose my ADR and investment, or ...
23
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7answers
3k views

Better terms to use to understand Puts and Calls for options trading

I've been trying to learn a little about options trading, specially puts and calls. The term options works well for my brain because someone is buying or selling the option to buy or sell something. ...

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