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General investing questions, newbie queries and thoughts megathread General investing questions, newbie queries and thoughts megathread

09-01-2010 , 01:13 PM
Quote:
Originally Posted by Brons
SPY.
You have to pay a rebate to short SPY.
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09-01-2010 , 06:30 PM
Was out of the market in April-June.



Bought Las Vegas Sands @ 24.44$ and Seadrill Limited @ 21.7$. In the summer over a few weeks.

I don't know how long I will stay on the horse, but both looks good technical levels here, in the short-term. Fundamentals in both cases are in my eyes very good, also the leadership in both companies is second to none.

If anyone is trading or have some views about drilling or las vegas sands I want to hear from you!

Quote:
Originally Posted by pattay
hey guys, just wanted some opinions about some passive investing i am thinking about. i haven't read a post in this thread so i apologize if it's the wrong place or if someone already said something similar.

i recently took a pretty decent chunk of my roll offline (left myself ~120 buyins) and want to get some kind of return with it. thinking about going with dividend funds, they seem to be a moderately stable idea from what i've read, although i don't really know. also, i think they might be beneficial because my marginal tax rate will probably be in the 28% range. i also have a mortgage, which i just refinanced at 3.875%, so i'm really in no hurry to pay it off early. am i better taking the 20-30k i have alloted for long-term investing and paying off some of my house (one year old, 14 years from paying off) or am i better off dumping the lump sum into a dividend ETF on vanguard?

i was thinking something like the dividend appreciation ETF because it has very little financials (which i want to stay away from) and telecomm (which i already have invested some money into). i also have a few g's in conservative stuff like TIPS and a bunch in my checking and savings so that i can go like 9 months without withdrawing again (the amount that makes me most comfortable)

any other ideas? anybody high on any other funds? i chose ETF because it has lower fees and i won't be making continuous deposits into it, is it a better choice for me than a mutual fund? i am not interested in picking single stocks, day trading, or anything complicated. thanks!
If I where in your shoes I would used some time, get to know the market and made a portfolio of 5-6 dividend stocks instead of buying index. If you dont want to spend time to get to know the market ETFs is the easy way out.


Examples like Seadrill for is paying out 0.60c now each quarter and the stock is trading at 23-24$ range.

I dont like do give advises but you are at my age. I'm also 23, you should take more risks now, than you would do when you are 50. My goal is to be financially undependant(?) when Iam 40-50 years old. Stockmarket is a way of doing it.

I would buy dividend stocks, and reinvested the dividends.

Last edited by brutti; 09-01-2010 at 06:46 PM.
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09-02-2010 , 04:02 AM
Why not buy non-dividend stocks and have the companies reinvest the money? Saves you the tax on dividends.
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09-02-2010 , 07:31 AM
Quote:
Originally Posted by Brons
Why not buy non-dividend stocks and have the companies reinvest the money? Saves you the tax on dividends.
Divi stocks is just an idea, but over the years the dividend stocks has outperformed most indexes by alot.




-

I have only Las Vegas Sands and Seadrill now in my portfolio.

Seadrill is reinvesting (buying businesses, paying debt) and paying dividends.


Las Vegas Sands however is now in a position with positive cashflow after struggling in the financial crisis. LVS is paying debt and expanding in Asia.

Seadrill is most my safe bet, but LVS is a little more gamble with very high potensial on the up side.

If he Pattay wants to he should pick single stocks, but that requires him to use time and get to know the market.
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09-02-2010 , 08:02 AM
Any recommendations for the best online broker for long term investments in stocks and bonds in the European and US market? I've searched the forum, used google, and I still have not come to a conclusion.

Thanks
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09-02-2010 , 10:07 AM
Quote:
Originally Posted by Brons
Why not buy non-dividend stocks and have the companies reinvest the money? Saves you the tax on dividends.
By the way: Dont know how this stuff works in US, but in Norway its possible to have investment accounts at online brokers for investments like dividend investments. As long as the money is inside the account u dont have to tax.

However we get taxed 28% of the profits when we take out the money of the account.
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09-02-2010 , 10:43 AM
Quote:
Originally Posted by brutti
Divi stocks is just an idea, but over the years the dividend stocks has outperformed most indexes by alot.
Correlation does not imply causation. There have been a few threads about this.
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09-02-2010 , 10:46 AM
Quote:
Originally Posted by Brons
Correlation does not imply causation. There have been a few threads about this.
Absolutely, you have to be selective as always in my opinion. It's not like I do buy stocks because of the dividends myself, but sometimes it is a bonus and a potenial a trigger if the company is increasing dividends.
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09-03-2010 , 10:03 AM
Extremely noobstupid question here.

Monday is Labor Day.

Is the Crude Oil market closed also? NYMEX? I got an email explaining, but it said something about NYMEX having regular hours, but then at the bottom in bold it said all open outcry is closed so I'm just wondering not because I'm an idiot, but because I want clarification.
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09-03-2010 , 01:09 PM
Quote:
Originally Posted by ItalianFX
Extremely noobstupid question here.

Monday is Labor Day.

Is the Crude Oil market closed also? NYMEX? I got an email explaining, but it said something about NYMEX having regular hours, but then at the bottom in bold it said all open outcry is closed so I'm just wondering not because I'm an idiot, but because I want clarification.
Commodities will be traded, however I do think NYMEX will be closed.
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09-03-2010 , 09:05 PM
would it be sound to invest in say, junk bonds in a tax free account because bonds' interest are typically taxed 100% and so investors might avoid them somewhat which may allow for a higher before tax return than stocks with similar risk...
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09-03-2010 , 11:23 PM
Quote:
Originally Posted by mastertop101
would it be sound to invest in say, junk bonds in a tax free account because bonds' interest are typically taxed 100% and so investors might avoid them somewhat which may allow for a higher before tax return than stocks with similar risk...
Your asking a basic question related to the tax efficiency and where things go on the tax efficient scale.

The things that result in higher taxes go into accounts that are tax free, basically.

So yes, if you intend to invest in a high yield fund like Vanguard High Yield it should go into either a tax deferred or tax free account - preferrably tax free.

http://www.bogleheads.org/wiki/Princ...Fund_Placement
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09-04-2010 , 10:40 AM
^ well,

my question was more like:

does it sound likely to you that junk bonds have a higher before tax risk adjusted return that other, more tax efficient, products (such as stocks) ?
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09-13-2010 , 10:25 AM
For the guy that posted the interest question that Art ninja closed when I wanted to post the answer:

It's i=(FV/PV)^(1/n)-1

i is the interest rate, FV is the future value, PV is the present value and n is the number of periods. You could've found this with Google in a few seconds.
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09-14-2010 , 03:25 AM
if im interested in making conservative investments in foreign markets denominated in foreign currencies for w/e reason, what's a good way to go about doing that? are there any reputable well known firms that would be able to assist in the process if im not comfortable picking stocks out myself? would something like this be feesible through vanguard?
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09-14-2010 , 10:25 AM
Vanguard has funds that invest in foreign markets.
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09-14-2010 , 10:56 AM
So I'm trying to calculate returns from a mutual fund after expenses and such, but I can't figure out something.

Does the ticker price represent the value of the fund after some kind of daily subtraction of expenses? or are expenses subtracted from accounts quarterly, or annually? If they're not automatically accounted for in the ticker price, how doe they charge them? Do they seize a number of your shares each year?

If it's a daily subtraction, than the yearly expense ration would be a hard one to calculate as fluctuations through the year can affect that considerably.

I can't find anything in the prospectus about how the yearly expenses are charged. Any help?
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09-14-2010 , 04:46 PM
Quote:
Originally Posted by Brons
Vanguard has funds that invest in foreign markets.

Just keep your hands off leveraged ETF for long-term positions.
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09-15-2010 , 02:08 AM
Quote:
Originally Posted by Brons
Vanguard has funds that invest in foreign markets.
can you get it denominated in foreign currency?
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09-15-2010 , 02:23 AM
Quote:
Originally Posted by boobies4me
can you get it denominated in foreign currency?
foreign equity funds are almost always held in foreign currencies, though quoted in dollars.
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09-15-2010 , 03:38 AM
Quote:
Originally Posted by boobies4me
can you get it denominated in foreign currency?
There are some funds denominated in euro's afaik. But what does it matter? The assets in the fund are denominated in foreign currency. Why do you care what the denomination of the fund is?
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09-15-2010 , 10:13 AM
Really stupid question:

Say on a trade I risk $150 to gain $110. What does my win % have to be to breakeven?
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09-16-2010 , 11:02 AM
57.69
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09-16-2010 , 05:47 PM
okay i'm a complete investment/finance noob. I want to start investing my money instead of having it all sitting in a 1.2% checking account. I plan to start a retirement account, but I also want to do something semi-low risk like mutual funds. I'm not too interested right now in stocks that I would have to manage as I don't have the time or the knowledge to do so. Any other suggestions or more specific suggestions in regards to diff mutual funds available would be appreciated. I looked at some of the Vanguard funds but don't really understand how to make the decision of one fund vs others. Thanks for any help
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09-16-2010 , 07:28 PM
Quote:
Originally Posted by generalts0
okay i'm a complete investment/finance noob. I want to start investing my money instead of having it all sitting in a 1.2% checking account. I plan to start a retirement account, but I also want to do something semi-low risk like mutual funds. I'm not too interested right now in stocks that I would have to manage as I don't have the time or the knowledge to do so. Any other suggestions or more specific suggestions in regards to diff mutual funds available would be appreciated. I looked at some of the Vanguard funds but don't really understand how to make the decision of one fund vs others. Thanks for any help
I guess everything is relative, but I wouldn't consider equity mutual funds to be "semi-low risk". Of course this is why they are expected to yield higher return over time vs risk-free checking. It's often recommended you not invest what you cannot stand to lose.

DcifrThis started a thread about a passive diversified portfolio construction that may be a good place to start, or just google 'passive diversified portfolio'. Vanguard mutual funds and ETFs have low costs & fees.
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