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winddude

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fk7ncs

Why don’t we just let major airlines collapse?

Hear me out. The airline industry has asked for $50bn in support to avoid bankrupty. Meanwhile these same companies have spend 80-98% of their free cash buying back their own company stock over the last 10 years. American Airlines alone has spent $12.5bn to buy back stocks. This of course is done to reduce overall divident costs and increase the share price. On top of that, under the new US corporate tax code all of these companies have lowered their tax bills by billions of dollars. The idea of the tax bill was that this money would be used for investment in technology/R&D and go to employees. Again a lot of this money ended up being used to buy back stocks. Individuals are expected to save up 3-6 months of emergency funds but yet these giant corporations can’t whether any storm. Let them fold and in a free market the void left in supply will be filled by somebody else.

AskEconomics

I think I tend to agree with you! The only issue is that many employees would be hurt by this, and commerce throughout the country would be slowed without air travel for the near future. This is why others might not share your sentiment. Depending on the nature of this “bailout” I could see why it’s justified. If the airlines will pay the sum back to the federal govt with interest I don’t necessarily see the problem. Airlines operate on razor thin profit margins as it is. It’s an industry that is particularly vulnerable to crisis like this, despite an airlines best effort to prepare. There is something to be said about moral hazard though. If industry expects to be bailed out when a crisis hits, why should they save money to weather crisis on their own? A potential solution would be for them to take the bailout to pay salaries, and then shut down and cut costs to be as low possible until the demand for travel comes back.

le7wjg

Weeklies vs 30-45 DTE vs LEAPs - or how to pimp out your theta

Hoy! As per the thetagang philosophy, the plan is to sell options and see them loose value over time due to theta decay. There are plenty of other reasons to do it, but the core idea behind the theta play is to let time work for your advantage. I'll give a rundown of three approaches, and let you make your own conclusions on what strategy best fits you. * Weeklies: selling options expiring within a week, (0-7DTE \[Days To Expiry\]) * 30-45 DTE: popularized by tastytrade, selling options that expire 1-1.5 month out * LEAPs: 1 year or longer to expiry; **Let's benchmark..** I'll compare the following 3 setups here: * 6DTE (weekly), Feb 12 expiry * 41DTE, March 19 expiry * 349 DTE, Jan 21, 2022 expiry And look at 4 (very) different tickers: SPY (high volume, low thrills index fund), AAPL (solid tech company & growth potential), KO (solid non-tech, low thrills) and GME (the meme du jour). I will use the 41DTE, \~0.30 delta as our reference for annualized income, where annualized return percentage (ARP) is given by ARP = 365 \* premium / (collateral at stake) / DTE \* 100%. **EDIT:** As pointed out by [/u/buzzante](https://www.reddit.com/user/buzzante/), this doesn't take into account compounding interest. The quick premium you get on a shorter DTE can then be repeatedly reinvested, favoring shorter DTEs. On the flip side, selling longer dated DTE gives you more upfront premium that you could already reinvest. I think overall compounding benefits longer DTEs for the same percentage returns (like getting paid upfront for one year vs getting paid in weekly installments), but for sake of simplicity and my sanity, I won't redo the math. The idea is, if you can get X% annualized return on a 41DTE option, how would an X% annualized return (in terms of greeks & strike prices) look like for a 6DTE and 349 DTE option. To keep things simple, I will only look at CSPs (cash secured puts), no calls, margin plays, hedges, etc, and use the mid of the Ask/Bid spread as our premium price, as quoted on Friday's (Feb 5) close. **SPY** (price at close 387.71$) 41DTE: 375$ strike, 5.87$ premium, ARP = 13.59%, delta \~0.3, **gamma 0.012**, IV 22%, OpenInt 37920 So I am looking for a similar ARP for 6DTE and 349DTE options. \[..find a premium/(collateral at stake) ratio = ARP \* DTE / 365 / 100..\] |DTE|Strike|Premium|ARP|Delta|Gamma|IV|OpenInt| |:-|:-|:-|:-|:-|:-|:-|:-| |41|375$|5.87$|13.59%|\~0.3|**0.012**|22%|37920| |6|380$|0.81$|12.96%|\~0.18|**0.030**|15%|15550| |6|381$|0.925$|14.76%|\~0.20|**0.034**|15%|4593| |349|**430$**|56.895$|13.83%|\~0.65|**0.005**|34%|<100| **AAPL** (price at close 136.76$) |DTE|Strike|Premium|ARP|Delta|Gamma|IV|OpenInt| |:-|:-|:-|:-|:-|:-|:-|:-| |41|130$|3.60$|24.65%|\~0.3|**0.007**|33%|<100| |6|132$|0.425$|19.59%|\~0.16|**0.048**|26%|3280| |6|133$|0.595$|26.99%|\~0.21|**0.059**|26%|4200| |349|**165$**|38.20$|24.21%|\~0.61|**0.007**|39%|<300| **KO** (price at close 49.65$) |DTE|Strike|Premium|ARP|Delta|Gamma|IV|OpenInt| |:-|:-|:-|:-|:-|:-|:-|:-| |41|47.5$|0.93$|17.43%|\~0.3|**0.076**|27%|8193| |6|46.0$| 0.085$|11.24%|\~0.07|**0.052**|39%|2659| |6|46.5$|0.11$|19.59%|\~0.09|**0.066**|36%|1130| |349|**55$**|8.80$|16.73%|\~0.61|**0.029**|26%|3894| **GME** (price at close 63.77$) |DTE|Strike|Premium|ARP|Delta|Gamma|IV|OpenInt| |:-|:-|:-|:-|:-|:-|:-|:-| |41|65$|27.15$|371.84%|\~0.296|**0.005**|326%|600| |6|24$| 3.125$|372.60%|\~0.034|**0.001**|470%|734| 349DTE: NOT POSSIBLE! For a 370% return, you'd need the premium to be more than 3x the strike; **How to interpret this** **1)** Selling LEAPs ~~are~~ is a pretty bad deal (in terms of annualized interest). For a comparative return with 41DTE, your strike price is going to be higher than the current stock price. As in, the stock price needs to swing up for the option to expire worthless, as opposed to NOT drop too much which lower DTE. **2)** The higher the DTE, the worse the liquidity (bigger spreads, lower open interest, etc). Makes it that much harder to get a good deal. **3)** Look at the 6DTE vs 41DTE strike prices (for the same annualized returns): they aren't that much different (except GME.. more about that later). So adjusted for risk, shorter DTE puts are more likely to expire OTM. Or just look at the deltas.. very compelling. **4)** The GME conundrum: if you're gonna scalp the IV, go for where it's the highest; what's more likely, GME finishing below 21$ in 6 days, or below 38$ in 41 days? (the two break-even points). You could even pick a 6DTE with strike 14$ for a 'meager' 77.6% ARP (that beats selling puts on AAPL or KO). **5)** We are safe to conclude that I don't have a life; and if you got this far, neither do you ;) **EDIT: Risks, risks, risks** Seasoned folks are smart to point out that I didn't get into all the risks shorter DTEs pose. It wouldn't be fair to ignore it, so here's a rundown on what might go wrong: * pin risk: it's tempting to let weeklies expire worthless, but after hours price movements after expiration can suddenly turn against you; while this could be avoided if you always close your positions, there's some extra value to be had by trying to see at least some of them expire worthless; * early assignment: the closer you are to expiration, the more likely it is that this would/could happen with a sudden and violent breach of your strike price; as you are going to have significantly more trades with lower DTEs, this adds some extra risk to the mix that can't be quantified with backtestings; * **gamma risk**: this is the **biggest one**; this deserves its own post, but here's a solid [writeup](https://steadyoptions.com/articles/why-you-should-not-ignore-negative-gamma-r86/) with pretty charts that does a better job than I ever could; in short, when selling options, you're negatively exposed to gamma; the closer the option to expiration, the higher the gamma, the more the value of the option fluctuates with the underlying stock's movement; a 30 delta 45DTE option will have lower gamma than a 30 delta 7DTE option; I updated my numbers to also include gamma - but I think most people would agree that for the same ARP and underlying stock but different DTEs, a lower delta + lower gamma combo is a better risk-adjusted bet (see GME 41DTE vs 6DTE or KO 41DTE vs 6DTE delta & gamma numbers); in most other cases, shorter DTE plays (for the same normalized ARP) would lower your delta but increase your gamma; it's a trade-off everyone needs to decide for themselves * **IV risk/gains:** the shorter the DTE, the bigger impact IV movements have on gamma (see [this](https://optionstradingiq.com/gamma-risk-explained/) for pretty charts); with IV dropping, your OTM options can experience a gamma boost, that can slap you in the face; this is somewhat compensated though by premium lowering on average due to the IV drop; but if the stock price moved against you, it becomes that much harder to roll out /manage your losses; **EDIT: Back-testing, always** The common wisdom is that 45DTE 16-20 delta have been the clear winner in back-testing and has a better risk-adjusted win-rate than any other configuration. Check [spintwig](https://spintwig.com/spy-short-put-45-dte-leveraged-options-backtest/#Prior_Research) and tasty trade video where this the most common conclusion made. However, there is no size fits all; 45DTE 16-20 is **NOT** optimal theta play on meme stocks or for earnings plays (in both cases IV will predictably drop), or growth stocks (where buy&hold beats CSP in benchmarks). The only way to settle true winrates is by back-testing, but once accounting for active management, early closing, margin management, etc. even back-testing is just a rough estimation. I feel it would be irresponsible of me NOT to emphasize the overwhelming amount of evidence/benchmarks in favor of 45DTE 16-20 delta plays - but it's also not an optimal play for every situation, and this shouldn't be a controversial statement :/. **Conclusions** If it's theta you're after, shorter DTEs have higher returns. Not necessarily higher risk (**EDIT:** yes, likely higher risks, see the part on risks, risks, risks) mind you - if you pick your deltas (**EDIT:** and gammas) carefully. Makes sense, theta works best closest to expiration; a lot can happen in one year to a stock (hit record highs or go bankrupt), much less in one day. **EDIT:** There's this [post](https://www.reddit.com/r/thetagang/comments/lajwxo/why_theta_gang_recommends_you_roll_options_from/) with pretty graphs that sum it up better than I could. Shorter DTEs also require more management and more involvement. Reevaluating your holdings every day (if you're selling weeklies) vs every week (with 30-45DTE) can be demanding, especially with a diversified portfolio. And finally, ***you do you***. I think the 30-45DTE philosophy is quite popular with this sub (and selling early when hitting 50% return), but the gains aren't really from theta in those cases (well, a mix of delta and theta), but rather stonks going up. ~~It's a solid, easy strategy, but leaves quite a lot of value on the table.~~ (**EDIT:** or does it.. back-testing results debate this. It's irresponsible of me to make such a categorical statement). Agree or disagree, we should probably talk about this. I flaired it as DD, but it's more of a meta-analysis of theta strategy as a whole. EDIT2: tables everywhere..

thetagang

I have to disagree with this. The backtesting has been done and the win ratio for 45DTE 16-20delta options outperform. You mention 30 delta alot, but thats not the sweet spot. You also mention little risk on weeklies, but there is huge gamma risk so that couldn't be more false. Finally, you mention profit not being from theta decay on 45DTE which isn't accurate. Theta decay ramps up drastically from 45 to 21 days, but you fail to mention anything in your post about IV, IVR which is one of the most important indicators when selling options. You might on paper collect more selling 6 weeklies over one 45DTE, not by much, but the data clearly shows the success is in 45DTE with less risk than the success rate of weeklies which makes longer expiration superior

n958n7

I analyzed 9000+ trades made by U.S Senators in the last two years and benchmarked it against S&P500. Here are the results.

P**reamble:** The ability of Senators to trade stocks has been controversial from the start. The 2020 congressional insider trading scandal where Senators used insider knowledge to trade large positions in stocks just before the coronavirus pandemic crash was just one example where they used their privileged position for gain.  While there is scope for a lot of discussion regarding the legality/ethical aspects of this, what I wanted to know is **Did Senators beat the market and can I beat the market if I follow their trades after its been made public?** **Where is the data from:** senatestockwatcher.com Massive shoutout to [u/rambat1994](https://www.reddit.com/u/rambat1994/) for putting in the efforts to create this site and make the knowledge public. The website has data of Senator trading from 2019. While I could observe that all the trades may not be captured by the site, given that we have more than 9K trades to work with, I feel that we should be good from a statistical significance perspective. Also, please note that the data will contain trades done by senators who are not currently in the senate (Either they were in Senate earlier and now in the house of representative or another position of power which forces them to disclose their trades) While senators are supposed to [report the transaction within 30 days](https://www.citizen.org/article/personal-financial-disclosure-requirements-for-public-officials/), the median delay in reporting that I observed for the trades was 28 days and the average delay was 52 days. There were some outliers that pushed the average up and are most likely due to the fact that their broker might not report the trade to them immediately. All the trades and my analysis are shared as a google sheet at the end. **Analysis:** https://preview.redd.it/ir6jqgjwsay61.png?width=644&format=png&auto=webp&s=d057f55015d8e25479815bfe760d4dde81240de6 A total of 9,676 trades were made by the senators in the past two years. This analysis would be focusing on the stock purchases made by the senators. (The stock sales and the pandemic controversy can be a standalone analysis by itself). Out of the 4,911 Buy’s what I am really interested in is the 1,375 transactions which were over $15K. I decided on this cutoff as I did not want small transactions (<5K) to affect the analysis. The hypothesis being that if someone is putting almost 10% of their annual salary into one trade, they should be very confident about the stock. (I know that some senators are millionaires and this hypothesis would not apply to them, but adding their net worth would again complicate the calculations unnecessarily) **Results:** For all the stock purchases I calculated the stock price change across 3 periods and benchmarked it against S&P500 returns during the same period.  a.            One Month b.            One Quarter c.             Till Date (From the date of purchase to Today) https://preview.redd.it/mnijwbqwsay61.png?width=948&format=png&auto=webp&s=828da0f685646a73946097f6b0dd86f753de024b At this point, it should not come as a surprise, but Senators did beat SP500 across the different time periods. But what I am really interested in is if it's possible to follow their trades after disclosure (after a time lag of 30 days) and still beat the benchmark. https://preview.redd.it/95cl91nwsay61.png?width=945&format=png&auto=webp&s=00ffc2fc430e5b7f3157ae4f264872d3ef95a0b2 If you had invested in the stocks Senators bought, even after adjusting for the lag of disclosure, you would beat SP500 over the long run. My theory for this is that Senators usually play the long game and invest having a time horizon of more than a year as sudden short-term gains can put a spotlight on their trades. This gives the retail investors a window of opportunity where they can follow the trades and make a significant profit. Now that our main question is out of the way, we can really deep dive into the data and see some interesting patterns. The next question I wanted to be answered was which were the best trades made by Senators over the last 2 years. https://preview.redd.it/75nyoa5ltay61.png?width=624&format=png&auto=webp&s=cb5b27919716360fdbaf31f4548f4d21e0401b49 Brian Mast seems to be the frontrunner with making almost 100% gain in one month, investing in lesser-known companies. Michael Garcia also seems to have made it rain with his Tesla plays. But not all the trades made by Senators were successful as shown below. https://preview.redd.it/xing6reltay61.png?width=624&format=png&auto=webp&s=9c9c3d13abbb8b060fecf8cee7b312bbdfd6efaf These are the worst trades made by Senators with Greg losing more than 80% of investment value within the disclosure period. But even Warren Buffet can go wrong on a stock pick. So, I wanted to know was who made the most returns over all their investments in the last 2 years. I only considered senators having at least $100K in investments and a minimum of 5 trades https://preview.redd.it/k4r34rpusay61.png?width=624&format=png&auto=webp&s=084ac821754d87d42d2f1ac9b822a9015125a443 John Curtis made a whopping 95% average return on his investments. All the top 10 Senators comfortably beat the market return of 26.4% during the same investment period. The next thing I looked at is the Senators that had the most amount of money invested in stocks during the last 2 years. https://preview.redd.it/igyz3jwdvay61.png?width=624&format=png&auto=webp&s=223b91d21b9201211a21ea24ec2daee0627b9166 The top 3 senators as shown above invested more than $15MM over the last 2 years and were also able to beat the market at the same time. Finally, this leads us to the last question of which were the most popular stocks among U.S senators https://preview.redd.it/fd66tjagvay61.png?width=624&format=png&auto=webp&s=9e92ab79c5b7316eb95e70dc22bed0b2f8615127 As expected, big tech dominates the investments but what was surprising was the skew of investment towards Microsoft which had more money invested in it than the rest of the top 9 put together. One important thing to note here is that except for Antero, the rest all the companies have a $100B+ valuation. **Limitations of analysis:** There are multiple limitations to the analysis. 1. The time period of the analysis is 2 years during which the market experienced a significant bull run. So, the results might change in a market downturn/recession 2. The data has been sourced from senatestockwatcher.com as parsing the data from the official government site is extremely difficult. All the recorded transactions have a pdf of the disclosure linked to them (you can find it in the google sheet). I have made my best effort to QC the data and make sure there are no false positives. But this might not contain all the transactions made by Senators. 3. There is no disclosure for the exact amount of money invested by Senators. The disclosure is always in ranges (e.g., $100k – $200k). So, for calculating the investment amount, I have taken the average of the given range. **Conclusion:** This analysis proves that Senators indeed get a better return than the overall market. Whether it is due to insider trading or due to their superior stock-picking capability is something that can’t be proven from the data and is left to the reader’s judgment. I intentionally left out the party affiliation of the Senators as I felt that it would bias the reader and was not the objective of this analysis. Whichever side of the political spectrum you lean-to, the above analysis shows that you get to gain by following their trades! Link to Google Sheet containing all the analysis and trades: [here](https://docs.google.com/spreadsheets/d/1Rg5jMYG-X4I7cidQylzCNc_UpJZGNhGrjAt7g0QkXYs/edit?usp=sharing) *Disclaimer: I am not a financial advisor* Edit: > There are two chambers in the legislative branch: Senate and House. Not all of these people are “senators” as you describe. I mistakenly classified all of the trades under the broad term of Senators! This is a mixture of trades done by both houses. So please keep this in mind while reading the post. Apologies again as politics is not really my strong suit.

StockMarket

Does this info only take into account trades made in the Senator’s name or does it include their spouses as well? I know Nancy Pelosi’s husband has made some very well timed trades in the past, I would imagine it’s due to insider information from Nancy but hard to prove these things definitively. I think Kelly Loeffler and her husband did something similar when she was a Senator.

r8tcqb

The China hustle

Just watched the China hustle, I’m a bit surprised that Chinese companies held by hedge funds, pension funds etc don’t produce reliable financial reports and there is no proper way to access them. I’ve bought in to Alibaba at $142. And think of it as a long term investment. Watching the documentary I feel a bit uncomfortable in adding to my position. Have any of you China investors watched the documentary? How do y’all feel? Personally I want to load up alibaba at These depressed price levels. But feel unsure after watching the documentary. The reasons are many not being transparent, ethical issues etc. I understand not all Chinese companies fall in to the category spoken about in the documentary.

ValueInvesting

I think you shouldn’t invest in “emerging markets” unless you have a very good understanding of those markets, especially China. I lived in Beijing for nearly a decade, and the ignorance about China that I see from investors with positions in Chinese companies (or the closest thing you can get to such) is a bit shocking. Firstly, as a foreigner, you aren’t meant to have access to Chinese markets. They aren’t open to you, so all of the companies that you can buy into have gone against official directives and party narratives to open holding companies overseas in order to get some foreign money into the game. This doesn’t bode well for any of those companies. China seems like a capitalist, even a hypercapitalist country, but they aren’t. The central party is the arbiter of power. They maintain absolute control, and capitalist reforms are merely a tool for them to serve sociopolitical ends (development).

mus6f9

In case you missed it: yesterday's federal budget cut taxes by 50% for companies that manufacture zero-emission technologies in Canada

> To create jobs and support the growth of clean technology manufacturing in Canada: > >**Budget 2021 proposes to reduce—by 50 per cent—the general corporate and small business income tax rates for businesses that manufacture zero-emission technologies**. The reductions would go into effect on January 1, 2022, and would be gradually phased out starting January 1, 2029 and eliminated by January 1, 2032. The Department of Finance Canada will regularly review new technologies that might be eligible [https://www.budget.gc.ca/2021/report-rapport/p2-en.html#104](https://www.budget.gc.ca/2021/report-rapport/p2-en.html#104) Examples of zero-emission technology manufacturing in Canada: * Manufacturing of wind turbines, solar panels, and equipment used in hydroelectric facilities. * Manufacturing of geothermal energy systems. * Manufacturing of electric cars, busses, trucks, and other vehicles. * Manufacturing of batteries and fuel cells for electric vehicles. * Production of biofuels from waste materials. * Production of green hydrogen. * Manufacturing of electric vehicle charging systems. * Manufacturing of certain energy storage equipment.

CanadianInvestor

So does it apply to the company in general, or will they have to keep costs and revenues related to those technologies separate? Will GM get a 50% tax cut because they make a Bolt, or only Tesla will get it because they only make electrics? Good luck with keeping track.

msahly

A New Jersey high school wrestling coach is CEO of $100 million firm that owns one deli

> Paul Morina, the principal of Paulsboro, New Jersey, High School, is listed in financial records as the president, CEO, CFO and more at a Nevada-incorporated company whose stock is trading at levels that give it a valuation more than $100 million. > That’s an oddly high valuation because the company, Hometown International, owns a delicatessen — and only one small delicatessen — in Paulsboro, where the Morina-coached high school wrestling team frequently wins state championships. The company has disclosed that it has shareholders based in China’s Macau territory. >The shop, Your Hometown Deli, did just $35,000 in sales — combined — over the past two years, according to Hometown International’s annual report, filed March 26 with the Securities and Exchange Commission. https://www.cnbc.com/2021/04/15/hometown-international-nj-deli-owner-worth-millions-in-stock.html

investing

Looks like good ol fashion securities fraud / money laundering. They have a sales person scamming investors (or criminals with cash) in China to buy overvalued shares while bleeding all of the company’s assets to pay this sales person $25k a month in consulting fees.

vzo5p8

what happens once everywhere in the US ends up too expensive for the working class?

This might be a silly question lol. Manhattan rent average is at an all time high at $5,000/mo but we’re also seeing crazy high rents in the middle of nowhere too (at least for where those cities are located). Will rents go down? Where will the working class go if rent continues to rise?

AskEconomics

In the long run, the cost of housing will be determined by the marginal cost of building it. Unfortunately, [local land-use regulations](https://www.reddit.com/r/dataisbeautiful/comments/g4bdb0/comment/fnwed99/?utm_source=share&utm_medium=web2x&context=3) are driving up production costs and/or preventing the construction of more affordable units. Over the long run, this is responsible for the increases we have seen in the cost of housing. So what could happen as housing costs continue to increase? Well, a few things. Over time, the housing units we built have become nicer—larger square footage, more features (like A/C), etc. We could see an increase in more basic homes that cost a little less. However, as long as land-use regulations remain prevalent, the effect on the price of housing is likely to be limited. But more broadly, we could see faster growth in the cities that have more relaxed regulations that allow the housing supply to expand. The increase in remote work could help facilitate this trend. We could also see municipalities ease up land-use regulations to some degree, and there are a few places this appears to be happening already. This is likely more of a political science question though.

piar0i

Why I gave up on active stock picking and sold every individual stock I own

I have a full time non-investment job like a lot of you. Post Covid, I had some extra time due to the lack of commute and I decided to study up on all terminology and background required to to pick stock. I even read Benjamin Graham's book cover to cover diligently ! I read and watched a bunch of videos and was very familiar will all the terms in stock picking. I started religiously filtering stocks on Screener eventually. Carefully reading through annual reports and quarterly results. It was actually pretty exciting. Researched the background and experience of the leadership of the companies I was interested in as well. After 2-3 months of solid studying, I eventually bought a few stocks and started tracking news about them regularly. I also followed discussions about these companies in forums and twitter so see if I had missed some important info. After further 2-3 months of doing this, I eventually got busy in some office project and just couldn't give much time to this. Weeks went by when I didn't open Screener to see BSE filings simply because I was tired after work. Eventually I just lost track of what was going on with the companies. I opened Screener eventually and there was such a backlog of reading material that it was just too much for me to go through. The point is, apart from some lucky time spells, it just takes too much time and energy to track your stocks and see results, filings, news etc. Even if you just track 15 stocks, you will have a LOT of data to go through on a regular basis. It's not sustainable for most of us unless this is your full time job as well. I recently sold all my stocks in Zerodha(I was up 45% btw) and put that money in Nifty 50 index fund and have never felt more relaxed with my investment choice. Nothing really to track apart from an occasional check of how Nifty is doing. It's 10000x more convenient. Phew !

IndiaInvestments

>I eventually bought a few stocks and started tracking news about them regularly. I also followed discussions about these companies in forums and twitter so see if I had missed some important info. One of the rules of investing is **Cut All the Noise** which you failed to do hence you felt overwhelmed. Also, one doesn't need to monitor every stock every day or week or month. Just reviewing them quarterly is more than enough. Also reading balance sheets should be enjoyable and exciting. If someone is reading it *just to make money*, they cannot last long. And, the only to way to beat the index is to research and invest in your own set of stocks and treat them as if you own the company. If you're happy with just index returns then cheers, you have understood early and saved yourself the stress and also some time.

lvon5a

Today I made my first $70 bucks from the market, & promptly logged the fuck off.

As a completely new day trader i’m ecstatic, i have been severely depressed for some time now & life just seemed to be taking no brakes with the whole shitting in my cereal thing. Learning & starting this adventure has brought me so much purpose & motivation i feel like i can maybe just maybe start creating some direction for myself. this is just nothing from no one but thank you for reading this anyways i appreciate & love all of you.

Daytrading

Congrats bro! Stay disciplined like that. $50 every trading day for the year is $12k. My goal is always $50 at a minimum. I trade options, and have long positions. But I shoot for at least $50 in scalps. I made $675 last week, which is almost 3 weeks worth of goals, got greedy and lost $291 on TSLA options. It was green for a few min, but went red, and I doubled down, then quadrupled down lol. Stay disciplined bro

lbaibb

Why is the media still reporting on “Reddit Investors” and not hedge fund stock market manipulation?

Posting here because I got banned from a different sub for a day for this post from auto-mod for some weird reason. Want to bring the discussion around certain stocks right now to a media perspective. ~~~~~~~~~ Why is the media still reporting on “Reddit investors” and not hedge fund stock market manipulation ? Highly illegal shit is going on and no one is reporting the story. Short ladder attacks, stock market manipulation, clearing houses, Certain brokerage apps restricting free trade, SEC not taking action... Who’s going to report the big bust of the century? Come on news.

stocks

I will have to check my checkbook to confirm this, but I am pretty sure I have not purchased a major media outlet to put in my back pocket. The folks on the side of the hedge funds cannot say the same.

nv7knh

That drop from $344 was tactical.

As expected, once the price started nearing $350 they tanked the price again. Nothing new to veteran apes, they did this back in March. However, their tactic last time was to drop the price much more violently to trigger as many stop losses as possible, and trading halted numerous times in the process. The end result was a $173.53 drop from a high of $347.67 to a low of $174.14 over about 25 minutes - including trading halts. We all know at this point that a trading halt is triggered when the price moves up or down 10% within a 5 minute span. This time though, they nuked the price $63.66 from a high of $344.66 to a low of $281 over a span of 45 minutes. The biggest 5 minute drop though, was from $312 to $281 - an even $31. That's just $0.20 shy of the $31.20 needed to trigger a trading halt. So at face value, it seems they didn't want to trigger any halts this time, or this is a complete coincidence. I can't fathom why it would even matter now, though. Side note: To new apes, don't let this rattle you. Not financial advice.

Superstonk

Honestly, I was rather bored by it. We all knew it was coming. There's something about $345 that makes them shit their pants. When it gets close again, expect another coordinated attack. Also, SEC, what more do you need to fucking see? You're "watching" right?

y0h5cx

Are private landlords a drain on the economy?

Here I am not thinking about developers but landlords who buy property to rent out. Considering that they did not design, build, plumb, or contribute in any other way to the development of the housing, are these people not extracting wealth without creating any?

AskEconomics

Separating property managers from landlords because I think it's pretty clear what value a property manager brings -- somebody has to fix the pipes, repair the AC, make sure the building passes fire inspection etc. These are all things that I as a tenant am paying money specifically so I do not have to think about them and were I a homeowner I would have to bother with them. There are also obvious reasons why renting is good for an economy; taking myself as an example, I'm at a stage in my life where I'm moving a lot and if I couldn't rent I would be forced to buy and sell a house every time I wanted to move, which is obviously suboptimal for a lot of reasons. But tackling the question of "why private landlords", the usual normative justification is that someone has to take on the risk of owning property. As a renter, if there's some property damage -- let's say a fire -- I can just move, but the landlord faces a much larger monetary loss. The landlord would likely be insured for that, but they wouldn't be insured for the pipes bursting or the AC failing, etc. So clearly there's risk in operating a rental unit and people need to be compensated for that risk in order for them to take the risk. And taking on this risk creates value. I've no interest in defending the many shitty landlords, but that's the general argument. But why private landlords as opposed to the government? Basically the same justification for why use markets and not to centrally plan things; it's really hard for a government to figure out where to build housing, how much to charge for it, etc (not withstanding that transitioning from private to public ownership is challenging). There are successful housing regimes with substantial government involvement ([the city of Vienna owns and operates about 25% of Vienna's housing stock](https://www.huduser.gov/portal/pdredge/pdr_edge_featd_article_011314.html), and this has had generally good outcomes for Austrian citizens), but there's a big jump from 25% to 100% of housing been owned and planned by the government.

rxfl8k

Dear superstonkers

Hello. When I don't dabble in shitty memes and stonkery, I work within social psychology. Just thought I'd share my two cents on what we're seeing right now. ​ 1. The whole system is built upon keeping power and money at the top and always betting against the little guy. This has been made insanely clear over the last year. 2. The bad guys of this saga don't give two shits about whether superstonkers are pro- or anti- options. They make the markets, they obviously have methods to deal with both. 3. Their ONLY option is to stall this until (a) we quit or (b) they crash and burn along with the rest of the financial market. 4. They obviously don't want 3b if they can avoid it, so they've been playing 3a HARD. 5. Best way to break morale and make apes question their winning hand? Cause division. Make them question themselves. "FUD" it up. Who cares what topic it is. Right now it's options vs. shares, previously it's been subs, government enforcement, politics, family calling you a conspiracy theorist, you name it. 6. **THEY DON'T CARE, THEY PLAY BOTH SIDES OF EVERY "ARGUMENT" TO MAKE YOU QUESTION YOURSELVES.** **Wanna play options? Great.** Make sure you know what you're doing and Godspeed. **Wanna keep adding shares and clutch them 'til infinity? Great.** Get ready for a bumpy ride and Godspeed. Not entirely sure where I'm going with this, but just don't fucking engage you retarded fucks. There is no right answer to be found here, the discord is their only game. So please, lean back in your chair, lul at their efforts, enjoy the memes and praise the fucking sun. ​ Peace

Superstonk

This is it. Attack the data if you have to - you *should* be looking for holes in it, that's part of your DD - but don't attack the people. Everyone here is working to learn more about the stock and the road to MOASS. Some are right. Some are wrong. But without exception, the *only* party that benefits from apes flinging shit at each other is the shills and their employers. Be excellent to each other. Whether you're doing your own DD or critiquing someone else's, remember that one of the strongest points of this sub's efforts to learn is peer review. If someone's DD is wrong, the best way to get that across is with accurate, provable data that contradicts it. *Edit*: Holy shit, this blew up overnight. Edited to replace "chinks" (proverbial chinks in armour) with holes. Thanks for the awards!

mp6kxb

Is there a conflict of interest between personal finance and the economy?

I may be wrong about this, but why does it seem like there is a conflict of interest between what's best for individual finance vs the economy? For example, it's best for a person to live frugally and use the most money to invest (education, health, retirement, etc.); whereas, it's better for the economy if everybody spends all of their money on not just essential but also luxurious goods. A society where people save more than they spend is a deflationary one. Likewise, a society where people invest more than they spend would probably cause a market bubble since more people buying a company's stock than it's product just drives its PE ratio through the roof Another example is having kids is expensive. It's best for a poor couple to not have kids or only one if they want to get out of poverty as fast as possible. However, in economics, every couple should have 2 kids to sustain the future workforce and consumer spending.

AskEconomics

The general idea that individual household prudence can be bad for the economy is absolutely correct - this is called the Paradox of Thrift, and while it was heavily popularised by Keynes (1936), it's been part of mainstream economics for a long time. Keynes himself notes that Adam Smith (1776) refers to it in The Wealth of Nations, saying "*What is prudence in the conduct of every private family can scarce be folly in that of a great Kingdom*", and John M. Robertson (1892) wrote a whole book called the Fallacy of Saving, saying "*Had the whole population been alike bent on saving, the total saved would positively have been much less... industrial paralysis would have been reached sooner or oftener, profits would be less, interest much lower, and earnings smaller and more precarious. This ... is no idle paradox, but the strictest economic truth*." ​ ​ The formalised version is essentially a prisoner's dilemma. There is some intertemporal balance of savings and consumption in each period which is optimal for the economy, and another one which is optimal for the individual. There is no requirement that the two are the same. Some economists bicker over how different they are, for example there are those who argue that savings represent investments and are also conducive to growth; which is not wrong, but from an intertemporal optimisation point of view, investment returns come with significant lag, so they are not optimal in each period. Consequently, no one really disputes that it would take a dramatic coincidence for the individual and collective optimums to be exactly the same even in one period for one individual, let alone in every period for every individual. This is made even worse in a recession, where greater economic uncertainty motivates higher precautionary savings, but higher savings would sink the economy into a larger hole. ​ ​ On the specific examples you choose to highlight though... some are more relevant than others. Overvaluation of the stock market isn't necessarily related to overinvestment, but rather inefficient allocation of investments. If the total value of investments increases dramatically, but the threshold for required returns remains the same, then there's really no change in valuations; instead, capital flows to underinvested companies, or to new opportunities. If there are no new opportunities but investment inflow continues to enter the market, that's not a problem in itself either, all it does is lower the expected market return and hence valuations continue to remain fair. ​ ​ There are actually a bunch more economic paradoxes; most kicking in when the economy is in a recession or otherwise impaired. The paradox of toil argues that an increase in willingness to work can have the effect of lowering wages, but if nominal interest rates are at a zero lower bound then total demand falls instead since people have lower spending power and no further available credit, workers just spend less and the economy shrinks. The paradox of flexibility argues a similar angle, but points to low wage stickiness (perhaps from having good-natured and understanding workers) making it easier for wages to fall, also causing the economy to shrink. The paradox of deleveraging focuses on banks, who when faced with economic recession, tend to reduce the risk on their balance sheet; but in so doing, tighten credit and magnify distress to the economy.

fttn3k

Why did the economic fallout from the 1918-1919 Spanish influenza pandemic not cause Depression-level economic devastation?

Right now, the trends and data indicate that Depression-level economic fallout from the covid-19 pandemic is a real possibility. The last time we saw a pandemic of this level was the Spanish flu in 1918-1919. But why did the influenza back then not devastate the economy like we are seeing now? Cities implemented social distancing nearly 100 years ago as well. So why did this not result in 20%+ unemployment rate and cratering of stocks?

AskEconomics

The economy looked very different in 1918. Our modern economy has a much larger share of consumer driven activity, which is directly impacted by social distancing. 1918 had not yet mechanized nearly as much, farming was a much larger share of the economy, where social distancing has less impact on productivity.

r1qtn1

Portfolio down 20% since i started value investing

I’m just venting…. So i used to setup iron condors, buy shares to write calls on, and speculate on stocks. I made over 7k net profit (58%) plus more on crypto and other crap. After listening to a bunch of value investors talking about Walmart, apple, Berkshire Hathaway and other companies and how many baggers you would have made if u invested a while ago and didn’t touch it and reinvested dividends and…. i realized i want to be a value guy. With times being hard for value investors i ended up buying 17k+ of baba and kept buying more with extra money from paychecks as the price kept plummeting. Now i am down a helllllll lotta money. More importantly, i feel so stupid and insecure now. I got a bunch of people in stocks and told them to buy SPY for rest of their working careers and they are up 20%+ and happy, while i (with all my knowledge) have lost not just all my gains but my entire portfolio is in the red. U guys ever get the urge to just yolo ur money into some meme stock otm calls or is it just me atm?

ValueInvesting

You invest in crypto, calls, speculate etc. Then you do the same thing with Alibaba and call it value investing. You should be grateful you didn't completely blow your portfolio up with the kind of "investing" you're doing. I blew my portfolio up twice being an idiot like this. Putting your $ into a single stock, located in a totalitarian country that just knocked the founding CEO out of the picture to protect the governments interests. The fact is you have the temperament of a gambler, and the house always wins in the end.

pc2h2p

75% Capital Gains Tax promised to Canadians by NDP

"Further, they propose to increase the inclusion rate on capital gains tax to 75 per cent. That would be a big increase from 50 per cent at present. Singh’s plans to soak the rich reflect his obvious disdain for the wealthy." [https://epaper.nationalpost.com/national-post-latest-edition/20210826/281741272510483](https://epaper.nationalpost.com/national-post-latest-edition/20210826/281741272510483) [https://www.investmentexecutive.com/news/industry-news/ndp-pledges-to-raise-top-marginal-tax-rate-capital-gains-inclusion-rate/](https://www.investmentexecutive.com/news/industry-news/ndp-pledges-to-raise-top-marginal-tax-rate-capital-gains-inclusion-rate/) Hopefully such an increase will be phased in over time (ie. several years)!

CanadianInvestor

This will probably hurt the middle class more than the rich. Market returns is the best way for most wage earners to build wealth. Taxing a greater percentage of gains just straight up disincentives investments. Unfortunately, I do see this will inevitably be enacted down the line.

lxag9w

I am very down and depressed, lost 500k need someone to talk too.

Hey guys, last week I lost $500k on 100s of $40 stirke call for $CCIV, it tanked after hours and ever since the loss I am not the same, I want to hear some stories and feel like I can come back. I only have 20k left please comment if you are okay with me talking to you. Thank you for listening.

options

Today I talked to one of my guys who just got his first job at 40, he was pumped. He is making $10/hr. Today I went to visit one of my guys that spends his life in a extended stay hotel at the age of 86 because he has no money, no support and is a sex offender. A few weeks ago I had to do a search on one of our guys residence that had his daughters beds covered in cockroaches. Just a few humbling things for me personally when I feel down financially. I’m a parole officer. 90% of the people I deal with live in horrible conditions and have bad lives. Although 500k is a big loss imo you need to have some perspective. Think of the things still going well for you in life and how much better you STILL have it even after 500k in losses.

u7e49m

What was your lowest point on the way to fatFIRE?

For me, it was when I moved into my office. I slept in the storage room. I had migraines, so I would work for about 2 hours, then nap, then work again. This went on for months. I still wonder what the employees were thinking lol.

fatFIRE

lowest point was probably dealing with health issues, It really hit me that when you're healthy you can have many goals in life, if you're sick, you'll really only have 1 Health > Wealth x10000. Everyone knows this, just wish I behaved more like it in the past. Luckily I recovered, and wishing everyone reading this a healthy fatFIRE journey

jxkidc

Will taxing the rich actually cost us more?

So [this image](https://i.imgur.com/R4hlM5c.jpg) has been making the rounds on Facebook. On the surface it makes sense, big guys get money taken from them, so they take more money from the little guy to even out. However, is this actually correct? I don't know if I'm not thinking deep enough, but doesn't this create a scenario where small businesses will be able to compete better? Any business that gets hit by the tax will want to raise their prices to try and even things out, but doing so would make themselves less competitive to the smaller businesses that aren't affected by the tax. That means they can't just up their prices without losing a competitive edge. Going a layer deeper it likely most businesses big or small are getting their inventory from big-time suppliers that are going to be affected by the tax and so they will raise their prices and that would, in turn, affect the smaller businesses as well. However, wouldn't competition again prevent a jump in prices? Unless they all raise their prices at the same time, some will offer a better deal getting more business and maintaining profit at a lower margin. There is also the element of foreign competition, but I'm not well versed enough to know how they will be affected by the tax plan. However, unless the foreign competition is hit even harder they will still be a competing factor also driving down prices. I'm not sure how much my thought process would apply to the real estate side of the image since that can have major differences depending on where in the country you are. Thoughts from those more knowledgeable on these matters? ​

AskEconomics

The question you’re asking has to do with something called “tax incidence,” if you’d like to read more. In general, it means that the tax gets passed along to whoever is least willing to change their behavior to avoid it. Cigarette sellers, for instance, may pass along taxes on them to the buyer, because addicts will buy cigarettes at any price. If an apple seller, however, hiked her prices, then perhaps people would buy oranges instead, so she pays the tax herself. The idea that a business owner will have pass her income taxes along to you, however, seems unlikely to me for several reasons. Firstly because business income does not always, or even typically, face the same taxes as wages. Jeff Bezos, for instance, would not pay any additional taxes if income taxes over 400k were raised, since he famously pays himself 80k a year in wages. Second, many economists believe that the super highly paid owe their incomes, in part, to economic “rents”—that is, money they make from market power rather than productive activity. If so, removing the incentives for rent-seeking, by taxing ill-gotten profits away, could actually benefit consumers. This second point is one of active research in modern economics, and more controversial, but needless to say, this Facebook post does not even begin to tackle the complex problem of tax incidence. It takes for granted one particular model of incidence, and does not even reflect the way that business taxes work in the US.

pg7owa

Friends were showing off their engagement rings and I had to run off to the washroom to cry.

Basically just this. Friends/coworkers were oohing and ahhing over their rocks in the grad office today. They just have cost at least $10k apiece. Then one of them turns to me and says “Seraph, you’re engaged too, right? Why don’t you wear your ring to work?” I made up some dumb excuse about working with too many acids in the lab and being clumsy, and excused myself. Held off the tears till I got to the bathroom stall. Truth is, I don’t have a ring and I probably never will have one other than a simple wedding band. I’m 27, still in grad school, fiancé and I have been together for a decade. My stipend pays less than minimum wage. He lost his job a few years ago and only found a new position a few months ago that pays only a fraction of his old job. We’re barely keeping our heads above water ever since we had to use up all our savings. It was just overwhelming today hearing my friends talk about something that probably cost half of what I make in a year as of it was some run-of-the-mill thing. It makes me wonder why my fiancé and I aren’t in the same place as they are - I mean, my friends are grad students too! It makes me feel like I’ve done something wrong or messed something important up and I hate it. Edit: Whoa, this got big. Thank you so much for your kind and supportive comments, everyone! I wish I could type something to each and every one of you but I’m headed to the middle of absolutely nowhere for fieldwork tomorrow and and won’t have time nor Interwebz sadly. Thank you for consoling an over emotional basket case like me. I don’t even want a gosh darn ring, I just felt sort of left out in the moment, and I guess I also have to learn to not react so strongly when I do!

povertyfinance

When I met the love of my life, a 300 dollar ring was all he could afford. We had a wonderful marriage til he died of Covid last year. Be proud of your simple wedding band. Your love is stronger than a ring.

xia4lu

Cuba has a GDP per capita of 9,477 USD yet they are frequently described as a poor country, not upper middle income as their GDP per capita figures would indicate. Are the GDP figures wrong for some reason?

The world bank defines upper middle income countries as those with GNI per capita between $4,046 and $12,535. Thailand is almost always referred to as upper middle income and it's GDP per capita is only 7,233. So why is it that Cuba is almost always referred to as a poor country? How are the GDP figures for Cuba computed? Is there manipulation of data? Is it harder to compute their actual GDP because of their economic system? Is there anything I'm missing that would indicate that it's actually a poor country and not an upper middle income one?

AskEconomics

>why is it that Cuba is almost always referred to as a poor country? This is a media/politics question, not an economics question. If you look at world bank categorizations(and other similar institutions), Cuba is generally qualified as varying degrees of middle income (depending on the year).

nkqje8

When did we stop educating ourselves from guys like Antonopoulos, Vitalik and Hoskinson, who have an in depth understanding of how blockachain works and a clear vision about the future?

And why did we instead started listening to the uneducated opinions of billionaire superstars, who have already shown through their work ethics on their companies that they could not care less about decentralisation, have no vision for the space apart from profit and memes, and are now working behind closed doors on something that could potentially result in a major fork, where the core issue not only isn't technical, but could be absolutely catastrophic for transactional freedom and decentralisation of miners. Please people, please stop feeding them with attention, clicks and your time. Let their own incompetence be their downfall and let people like the aforementioned blockachain pionners and many more that we know exist, provide the appropriate counter arguments.

CryptoMarkets

Easy, when you're one of the richest men in the world, people listen to you. Regardless if what you're staying is true or not. Many new people in the space that don't even know the Giants in the crypto world, but who know Elon's name.

ldxiif

Quick Reminder on Time

Hello u/fatfire friends. This is going to be a short post. It is with great sadness that I’m here to report the passing of my dad. He was always concerned about having “enough” when he died suddenly at 66 on Jan. 31 of a heart attack. I’m 25 and a constant lurker on u/fatfire and u/bogleheads. Just wanted to share this with you all, because this time last week I was thinking I’d live forever and that i wanted a ridiculous number before I retire. I learned for real last weekend that you can’t take your hard work with you and that all the money in the world can’t buy you more time. Stay safe and tell those close to you that you love them.

fatFIRE

Thank you for the reminder. I had a work colleague work hard at the corporate gig and saved a few million. Retired, died 9 months later after a 5 month cancer treatment... he enjoyed retirement for about months.

mqagjz

Gamestop paying off $216.4 Million (100%) in debt, which is due in 2023🚀

https://news.gamestop.com/news-releases/news-release-details/gamestop-announces-voluntary-early-redemption-senior-notes-0 *wink-wink, nudge-nudge: one time dividend paid in crypto* *edit: [The MOASS Preparation Guide](https://www.reddit.com/r/Superstonk/comments/mm5qle/the_moass_preparation_guide/?utm_source=share&utm_medium=ios_app&utm_name=iossmf) trust me, go read it.*

Superstonk

I believe these, and other bonds expiring earlier this year, were the corner stone of the bear thesis. If Gamestop defaulted on these bonds they would have to file bankruptcy. Guess that's not gonna happen anymore. Edit: going back over their Q4 2020 Earnings Report, Gamestop still has 48m in short term debt, and had 600m'ish cash (now down to 400mish after paying off this debt?). They announced sales are up 11% Feb-March. Q1 2021 is until end of April. Projected EPS is -0.8 to -1.0 for Q1, but I just don't it being that low with how fast they are selling out of the new console bundles. Looks like to me really good Q1 results incoming! (Not financial advice, I eat green crayons)

6gy250

[ETH Daily Discussion] - 13/Jun/2017

Welcome to the ETH Daily Discussion thread of /r/EthTrader. *** The thread guidelines are as follows: - All sub rules apply here. Please review our **[rules page](https://www.reddit.com/r/ethtrader/about/rules/)** to become familiar with them. The rules page is also linked in the announcement bar above. - General discussion topics include, but are not limited to, events of the day, technical analysis, alternative Ethereum projects, or support issues. - Breaking news or other important content should be submitted as a separate post. - In-depth altcoin discussions should be referred to the /r/CryptoCurrency discussion thread. To view the thread, [follow this link](https://np.reddit.com/r/CryptoCurrency/search?q=%5BMonthly+General+Discussion%5D&restrict_sr=on&sort=new&t=all) and choose the latest entry on the search page. - Pumping, venting, trolling, or any other similar behavior **should be reported** and redirected to the /r/CryptoMarkets trollbox thread. To visit this thread, [follow this link](https://np.reddit.com/r/CryptoMarkets/search?q=Trollbox+Thread&sort=new&restrict_sr=on&t=all) and choose the latest entry on the search page. *** * For newcomers who have basic questions about Ethereum, you can find answers by visiting /r/EthereumNoobies or our [Ethereum Education wiki page](https://www.reddit.com/r/ethtrader/wiki/education). * **[EXPERIMENTAL]** - To view live streaming comments for this thread, [click here](https://reddit-stream.com/comments/auto). Account permissions are required to post comments through Reddit-Stream.com. *** Thank you in advance for your participation. Enjoy!

ethtrader

People on this subreddit are so delusional. We've gone up 200 dollars in a bit more than a week. And people are panicking when the price is stabilizing for a day? When it is dipping 20 dollars? Like for real, do these even know have a market works..

nq56qm

How do some young landlords own so many individual properties? [20s-30's]

Apologies if this is a stupid question to be asking but I've never understood how a landlord in their mid 20s or 30s is able to purchase a property in a job that may, on average, pay 40K/annually and may even own multiple other properties [2-3].

realestateinvesting

I started out in my 20s, bought a condo. Completely remolded it myself, rented out rooms. Bought a house, rented out the entire place. Remodeled house by myself. Rinse and repeat. What’s missing is the long nights and weekends working on the place and ubering on the side for extra cash. In my late 30s now with 14 units. It’s not easy.

lvon5a

Today I made my first $70 bucks from the market, & promptly logged the fuck off.

As a completely new day trader i’m ecstatic, i have been severely depressed for some time now & life just seemed to be taking no brakes with the whole shitting in my cereal thing. Learning & starting this adventure has brought me so much purpose & motivation i feel like i can maybe just maybe start creating some direction for myself. this is just nothing from no one but thank you for reading this anyways i appreciate & love all of you.

Daytrading

You should get a trading psychology book. I recommend the daily trading coach. You WILL lose money at times, especially starting out. It will likely take at least a year before you can find consistent profitability. Don’t get too high or too low.

huq4v9

How should I make money? I need help Please!

I am a 13-year-old and I am trying to make some money for my mom because she is a single mom and I want to help her with the bills because I hate to see her so stressed. Please leave suggestions in the comments please! it would really help

Money

To be honest the best advice I can give you is to read. I am not kidding, read finacial books like rich dad poor dad,warren buffet books and learn to invest and handle money so you are redy to handle it when you get a job. A lot of people spend as much as they earn,this way you are stuck at the same place,invest and profit long term. You can do fiverr gigs If you are good at any particular field to earn a little bit of extra cash,I coached a man 2 h/20$ so if you are good at video games you can monetize it .

rzubir

Is it possible to have a shortage of low-skilled workers resulting from everyone being educated?

This is one of those questions that ive always been afraid to ask because I feel stupid for not knowing / understanding the answer, but it came up in my mind as I was listening to a lecture from Mankiw. In that lecture, he said that expanding education would decrease inequality because most of the US' inequality increase from the 70s onward was due to Skill-Biased Technological Change, since technology significantly benefited those with high skills, while those with low skills were more or less left out. This makes sense, and I can definitely see why giving low-skilled workers more skills would decrease inequality (as it could help them capture the gains of technology) but dont we need low-skilled workers, like in services, for instance? Dont we need taco bell workers, janitors, etc.? If everyone had a college degree or more, who would be / who would wanna work in these jobs?

AskEconomics

In the short run there could be a shortage of low skilled workers, but then wages rise to compensate for the low supply. More people in higher skilled work may decide they would prefer to work in a lower skilled profession if it means they could earn the same amount or slightly lower without the stress that can come with a more demanding profession. Additionally less people may be inclined to take up further education pursuing a more skilled profession if low skilled work wages rise. Same goes for those already in low skilled professions (leaving low skilled work in pursuit of higher skilled work) There’ll also be higher immigration into countries that see a rise in wages for low skilled work where their home countries have lower wages, improving the trade off of moving abroad for work to send funds back home.

6na9a0

You do not have to give your employer 2 weeks notice.

I have seen my company terminate 2 other employees as soon as they gave their 2 weeks notice. I gave my 2 weeks notice on Wednesday and on Friday was told they were terminating me and they were not intending on paying me for the remainder of the 2 weeks. Fortunately I am able to start Monday with my new company. As a word of warning, if you have seen your employer terminate any employees as soon as they give notice DO NOT GIVE NOTICE. You are not legally required to give notice, and if the company does not give the courtesy of letting employees finish out their 2 weeks they don't deserve the courtesy of 2 weeks notice. Edit: To clarify generally speaking you should give two weeks notice, but it is not required, and there are situations that you should not. Carefully judge for yourself.

personalfinance

Yeah, it's important to be aware of what the management culture is like at your company, and plan appropriately. For example: At a past company that was in a slow death spiral, after the third time they were late with paychecks, I quit with no notice. (I did already have a new job offer in hand). At a different company that was doing well, and I had a good relationship with my manager, I gave three weeks' notice. They paid me for those three weeks, plus an extra week of separation pay.

wa7mnl

why isn't there any economist who's president

To clear up things, I'm talking especially about macro economists, and I'm not aware of every single president and their curriculum vitae so excuse me if I'm wrong. I know that some economists were really involved in the political field, but non of them were presidents ? My first thought was that some schools of economics don't believe in the control of the state and thus don't want to participate in it (Austrian school and Chicago school of thought, though the last one doesn't totally reject it believe). But then there are other schools that believe in the control of the market by the government (Mainly Keynesian economics). Usually what I see is that the majority of presidents or people involved in politics come from law schools and business schools and maybe engineering for some, but I can't seem to find anyone who studied economics and done some research then became a president. Do economists simply not care about leading the country as presidents and are more interested in other positions such as working central banks or counseling ?

AskEconomics

Academics are not always great politicians. It is a completely separate set of skills But there have been economists who became presidents such as the current president of Austria https://en.wikipedia.org/wiki/Alexander_Van_der_Bellen

vn61rx

Unpopular opinion: 47% tax rate at $180k+ is too high

I'm sure I'll be downvoted to oblivion, but $180k is a very low tier to start taking half of earnings. The $180k top bracket hasn't changed in over a decade. House prices, wages, cost of living has gone up substantially since '09. The median salary has gone up 30% since '09, so we should see all tax brackets adjusted $235k should be the new top bracket. To be clear, I'm no just advocating for the top bracket increase but when you're talking about 1/2 being taken, it's no wonder we see so many trying to minimise tax through less productive ways (negative gearing/trusts etc) (Yes, I get how progressive tax brackets work...)

AusFinance

Just to put it in perspective, Annual salary: 180K = 28.7% flat tax rate (PLUS medicare levy) 200K = 30.3% 250K = 33.3% 300K = 35.2% 400K = 37.7% 500K = 39.1% You need to be earning over 580K before you hit 40%. Of course, someone on these incomes are likely to have far higher tax deduction than someone earning under the 180K marginal rate.

lxag9w

I am very down and depressed, lost 500k need someone to talk too.

Hey guys, last week I lost $500k on 100s of $40 stirke call for $CCIV, it tanked after hours and ever since the loss I am not the same, I want to hear some stories and feel like I can come back. I only have 20k left please comment if you are okay with me talking to you. Thank you for listening.

options

You've probably already felt the physical effects. The rush of panic chemicals. The mania and the lethargy. Then there's the mood swings and sense of hopelessness. The thing is... it's not hopeless. It sucks for sure and it feels like it won't get better but it will. And like metal forged in fire you will come back stronger. And you will realize that you are already wiser. Breath. It's only money.

nzas2f

Pro Tip: Live under your means, but remember to enjoy your youth.

Hey there everyone. One thing I see often on this subreddit is about how extremely young people start to invest into a dividend portfolio, and continue to save every dollar they can. Just the other day I saw a 16 year old on this sub starting his portfolio. The best thing I always tell all my friends about finances, is the sooner you start, the better off you will be due to compounded interest. If you are especially more aggressive your first couple of years, it will even reap the benefits more. However, I also tell them to enjoy their youth, and don't nickel & dime everything you do. Your most precious time of your life is going to be your youth (especially college and 20s to Mid 30s) Seriously, enjoy your youth. Statistically speaking, the average person that is a super aggressive saver is not going to FIRE or Live off dividends until their 40s. Your youth is gone. I believe the best approach to it is like this: **Post College -** Get new job, pay down debt from school (if the loan has high % low percentage not really), aggressively save into 401k/dividend portfolio until mid-20s **Mid 20s-Early 30s -** Focus on your career, save, but not too aggressively. Focus on house/property and checking out different things in life. **Mid 30s to 40s -** Try saving more to live off the dividends before 50. TLDR: Enjoy your life. Trying to live off your dividend portfolio is great, but don't forget you only get one shot at life. Enjoy it.

dividends

Damn yeah this is great advice. I’m a 27 year old self employed artist and I’ve been investing for a bit. My parents lost everything in 08 so being insanely well off financially is super important to me. My mom was like “Tayler, you’re young just do worry about the money as much right now”

9b173h

Dataeum - Will therу be any kind of ranking within the system? Or all the users will be remunerated equally?

There will be no specific ranks, but each collector will have his individual “quality score”. Therefore, the more data have you collected and verified correctly, the higher your “quality score” will be and you will then be able to acquire tokens more quickly because of your level of “trust” and increase the remuneration part.

crypto_currency

All this efficient sharing of information can be achieved in one single decentralized market, relying on crowdsourced data. The data gatherers would be rewarded for their input through XDT Tokens. Very necessary and regular updates to maintain the optimum accuracy of this data will attract more rewards for data gatherers. When the worst is over, international organizations like the World Health Organization and pharmaceutical companies might have an interest in the same data. Their interest may be to better understand how to prevent and treat future outbreaks. The data would potentially reward all the relevant gathers once again if it were to be purchased for study by those organizations.

94t02p

Vertex - Background information on cryptocurrency markets

To understand the world which the Vertex experts will help investors navigate through, it is important to grasp how the crypto market exploded. ICO markets brought record investment levels during 2017. The idea of an ICO pre-dates 2017, but up until this year, it was a crowdfunding tool that was not particularly popular. Bitcoin’s exponential growth brought many new participants to the crypto market, and a few big-ticket projects called attention to ICOs as mechanisms to support new projects, participate in crypto economies, and get a return on investment, which caused the market to start growing exponentially.

crypto_currency

Every ICO that passes the Vertex evaluation process will enjoy numerous advantages leading to more and/or better investment, with investment into their token coming from seasoned, disciplined investors.

9b173h

Dataeum - Will therу be any kind of ranking within the system? Or all the users will be remunerated equally?

There will be no specific ranks, but each collector will have his individual “quality score”. Therefore, the more data have you collected and verified correctly, the higher your “quality score” will be and you will then be able to acquire tokens more quickly because of your level of “trust” and increase the remuneration part.

crypto_currency

Dataeum’s ecosystem comprises of an innovative platform and relies on members or “human beings” for their data collection. They already have a functional mobile App and their innovation has been proven and tested and is operational. The data is collected through a mobile application used by a community of collectors who are rewarded for their actions. This reward is calculated according to a “collection value” (cv) price.

9b173h

Dataeum - Will therу be any kind of ranking within the system? Or all the users will be remunerated equally?

There will be no specific ranks, but each collector will have his individual “quality score”. Therefore, the more data have you collected and verified correctly, the higher your “quality score” will be and you will then be able to acquire tokens more quickly because of your level of “trust” and increase the remuneration part.

crypto_currency

People can purchase the token and get exciting benefits from Dataeum platform. To share the data people are also getting benefits by the token and they can exchange the token with the fiat currency system.

n958n7

I analyzed 9000+ trades made by U.S Senators in the last two years and benchmarked it against S&P500. Here are the results.

P**reamble:** The ability of Senators to trade stocks has been controversial from the start. The 2020 congressional insider trading scandal where Senators used insider knowledge to trade large positions in stocks just before the coronavirus pandemic crash was just one example where they used their privileged position for gain.  While there is scope for a lot of discussion regarding the legality/ethical aspects of this, what I wanted to know is **Did Senators beat the market and can I beat the market if I follow their trades after its been made public?** **Where is the data from:** senatestockwatcher.com Massive shoutout to [u/rambat1994](https://www.reddit.com/u/rambat1994/) for putting in the efforts to create this site and make the knowledge public. The website has data of Senator trading from 2019. While I could observe that all the trades may not be captured by the site, given that we have more than 9K trades to work with, I feel that we should be good from a statistical significance perspective. Also, please note that the data will contain trades done by senators who are not currently in the senate (Either they were in Senate earlier and now in the house of representative or another position of power which forces them to disclose their trades) While senators are supposed to [report the transaction within 30 days](https://www.citizen.org/article/personal-financial-disclosure-requirements-for-public-officials/), the median delay in reporting that I observed for the trades was 28 days and the average delay was 52 days. There were some outliers that pushed the average up and are most likely due to the fact that their broker might not report the trade to them immediately. All the trades and my analysis are shared as a google sheet at the end. **Analysis:** https://preview.redd.it/ir6jqgjwsay61.png?width=644&format=png&auto=webp&s=d057f55015d8e25479815bfe760d4dde81240de6 A total of 9,676 trades were made by the senators in the past two years. This analysis would be focusing on the stock purchases made by the senators. (The stock sales and the pandemic controversy can be a standalone analysis by itself). Out of the 4,911 Buy’s what I am really interested in is the 1,375 transactions which were over $15K. I decided on this cutoff as I did not want small transactions (<5K) to affect the analysis. The hypothesis being that if someone is putting almost 10% of their annual salary into one trade, they should be very confident about the stock. (I know that some senators are millionaires and this hypothesis would not apply to them, but adding their net worth would again complicate the calculations unnecessarily) **Results:** For all the stock purchases I calculated the stock price change across 3 periods and benchmarked it against S&P500 returns during the same period.  a.            One Month b.            One Quarter c.             Till Date (From the date of purchase to Today) https://preview.redd.it/mnijwbqwsay61.png?width=948&format=png&auto=webp&s=828da0f685646a73946097f6b0dd86f753de024b At this point, it should not come as a surprise, but Senators did beat SP500 across the different time periods. But what I am really interested in is if it's possible to follow their trades after disclosure (after a time lag of 30 days) and still beat the benchmark. https://preview.redd.it/95cl91nwsay61.png?width=945&format=png&auto=webp&s=00ffc2fc430e5b7f3157ae4f264872d3ef95a0b2 If you had invested in the stocks Senators bought, even after adjusting for the lag of disclosure, you would beat SP500 over the long run. My theory for this is that Senators usually play the long game and invest having a time horizon of more than a year as sudden short-term gains can put a spotlight on their trades. This gives the retail investors a window of opportunity where they can follow the trades and make a significant profit. Now that our main question is out of the way, we can really deep dive into the data and see some interesting patterns. The next question I wanted to be answered was which were the best trades made by Senators over the last 2 years. https://preview.redd.it/75nyoa5ltay61.png?width=624&format=png&auto=webp&s=cb5b27919716360fdbaf31f4548f4d21e0401b49 Brian Mast seems to be the frontrunner with making almost 100% gain in one month, investing in lesser-known companies. Michael Garcia also seems to have made it rain with his Tesla plays. But not all the trades made by Senators were successful as shown below. https://preview.redd.it/xing6reltay61.png?width=624&format=png&auto=webp&s=9c9c3d13abbb8b060fecf8cee7b312bbdfd6efaf These are the worst trades made by Senators with Greg losing more than 80% of investment value within the disclosure period. But even Warren Buffet can go wrong on a stock pick. So, I wanted to know was who made the most returns over all their investments in the last 2 years. I only considered senators having at least $100K in investments and a minimum of 5 trades https://preview.redd.it/k4r34rpusay61.png?width=624&format=png&auto=webp&s=084ac821754d87d42d2f1ac9b822a9015125a443 John Curtis made a whopping 95% average return on his investments. All the top 10 Senators comfortably beat the market return of 26.4% during the same investment period. The next thing I looked at is the Senators that had the most amount of money invested in stocks during the last 2 years. https://preview.redd.it/igyz3jwdvay61.png?width=624&format=png&auto=webp&s=223b91d21b9201211a21ea24ec2daee0627b9166 The top 3 senators as shown above invested more than $15MM over the last 2 years and were also able to beat the market at the same time. Finally, this leads us to the last question of which were the most popular stocks among U.S senators https://preview.redd.it/fd66tjagvay61.png?width=624&format=png&auto=webp&s=9e92ab79c5b7316eb95e70dc22bed0b2f8615127 As expected, big tech dominates the investments but what was surprising was the skew of investment towards Microsoft which had more money invested in it than the rest of the top 9 put together. One important thing to note here is that except for Antero, the rest all the companies have a $100B+ valuation. **Limitations of analysis:** There are multiple limitations to the analysis. 1. The time period of the analysis is 2 years during which the market experienced a significant bull run. So, the results might change in a market downturn/recession 2. The data has been sourced from senatestockwatcher.com as parsing the data from the official government site is extremely difficult. All the recorded transactions have a pdf of the disclosure linked to them (you can find it in the google sheet). I have made my best effort to QC the data and make sure there are no false positives. But this might not contain all the transactions made by Senators. 3. There is no disclosure for the exact amount of money invested by Senators. The disclosure is always in ranges (e.g., $100k – $200k). So, for calculating the investment amount, I have taken the average of the given range. **Conclusion:** This analysis proves that Senators indeed get a better return than the overall market. Whether it is due to insider trading or due to their superior stock-picking capability is something that can’t be proven from the data and is left to the reader’s judgment. I intentionally left out the party affiliation of the Senators as I felt that it would bias the reader and was not the objective of this analysis. Whichever side of the political spectrum you lean-to, the above analysis shows that you get to gain by following their trades! Link to Google Sheet containing all the analysis and trades: [here](https://docs.google.com/spreadsheets/d/1Rg5jMYG-X4I7cidQylzCNc_UpJZGNhGrjAt7g0QkXYs/edit?usp=sharing) *Disclaimer: I am not a financial advisor* Edit: > There are two chambers in the legislative branch: Senate and House. Not all of these people are “senators” as you describe. I mistakenly classified all of the trades under the broad term of Senators! This is a mixture of trades done by both houses. So please keep this in mind while reading the post. Apologies again as politics is not really my strong suit.

StockMarket

Great work once again! Because all the comments seem to be interpreting this as an “insider trading” meter, I want to point out that at least some of these trades are most surely not happening based on “inside info.” TSLA is a perfect example, since those purchases listed as November 2020 correlate with the announcement that TSLA was being included in the S&P 500. I too bought a whole bunch of TSLA that month. Not EVERYthing our government officials do is insidious lol.

bc25c3

Democratic presidential candidate Elizabeth Warren wants to raise $1 trillion in revenue with a new 7% tax on corporate profits over $100 million

-Democratic presidential candidate Elizabeth Warren proposes raising $1 trillion in government revenue from a new tax on profits of the largest corporations. -The proposed surtax would prevent Amazon and other companies with profits exceeding $100 million from wiping out their tax liabilities altogether. -Instead of taxable corporate income as defined by the IRS, the 7% surtax would apply to profits companies report to their investors. https://www.cnbc.com/2019/04/11/elizabeth-warren-targets-corporate-profits-with-new-7percent-surtax-proposal.html

investing

Reading the /r/politics thread about this convinces me that 99.9% of Reddit has absolutely zero clue about accounting, investing, finance, tax policy, or anything that doesn't involve torches and pitchforks for corporations. quick edit to steer this back towards investing: I don't think it will have any impact because there's no chance it will happen. It's objectively bad economic policy put forward purely to rev up a political base that knows essentially nothing about any of the pertinent issues or consequences.

n9xqdb

Don’t keep looking at price

Unless you have a call option or out option, with an expiration date, you are free to hold your stocks forever, especially if it’s an ETF. Look at the debt, interest expenses, earnings and assets. Stop looking at the price.

ValueInvesting

User civgarth who used to be a trader, had a good story: > You will always win in the long term if you just buy the broad market because it's designed to win. > That said, if you're all in with the money you need tomorrow and you're riding out a correction, then that's on you. > Prices are by definition, 'manipulated' because traders make money on price action in **both** directions. > A trader's job is to force the highest possible trade before changing direction, hoping to create bagholders and then generate sentiment in the opposite direction to buy back at a lower price. > That's what they are paid to do. Algorithms are constantly learning herd behavior so they can trade ahead of it. > Investment funds exist to aggregate user money to make bets on the collective results of the world's traders, who are now mostly lines of code coded by mathematicians and statisticians. They trade on inside information and they all front-run the herd with misleading information or selective omission. As the investing public, we've all agreed that it's ok for them to cheat because they are cheating on our behalf in the form of investment savings, and pensions. We just ride the whale. For non-institutional traders like myself, we don't trade with a particular ideology. We just follow the whale. > The funds are not 'smart' money as the media often claim. They are huge pools of money and their moves create their own gravity which affects the algos they own and benefit from. > I apologize. They are 'smart' in the sense that they will always have information ahead of the rest of us. > I would hope that the few actively traded funds who display their trades each day have demonstrated they are not particularly 'better' at this than you. They just have more money and can keep buying the dips or calling the top until it actually happens. As I said in another post, you're not necessarily worst than someone else, you just don't have a big enough account to offset your mistakes as they do theirs. > The market will always go up because if it didn't, these folks would not be able to attract investor money. Over the decades, the market has collectively decided 7% - 12% is a good return because it's enough to attract new money into the hands of money managers and yet not high enough to discourage randos to try to beat it on their own - thus maintaining the illusion of a market. The price is the last trade, whether 100 shares or 1,000. > You will always win in the long term if you just buy the broad market because it's designed to win. That said, if you're all in with the money you need tomorrow and you're riding out a correction, then that's on you. > Source: Worked as a derivatives trader in the late 90s but computers do the job much better now. I trade with 10% of my account while the other 90% is just stuff I never sell and only add to.

wab8tp

GME short sellers have lost $443.4 million so far this month. GME among the top 10 most unprofitable stocks for short sellers during July 2022

Gamestop GME short sellers have lost $443.4 million so far this month. $GME is among the top 10 most unprofitable stocks for short sellers during July 2022. All GMErs out there, are you still long? Shares of GameStop (GME) - Get GameStop Corporation Report are trading higher again in June, helped by catalysts such as the launch of the company's NFT marketplace and a stock split. In fact, GameStop shares have managed to outperform the S&P 500 so far this year. And they've also managed to cause big losses for short sellers who insist on betting against the stock. According to a report published by S3 Partners on July 21, GameStop has been among the top 10 most unprofitable stocks for short sellers during July 2022. So far this month, short sellers have already lost $443.4 million on GME. https://preview.redd.it/m5kxjxpcibe91.png?width=689&format=png&auto=webp&s=b97d39d0f443169c97b62e6c8180e382adbe644f It's worth noting that, compared to the many large-cap companies on the list, GameStop's average borrow fee is incredibly elevated — 32%. Borrow fees are the amount that short sellers must pay to "borrow" shares of the stock and open a short position. However, following the report and GameStop's 4-for-1 stock split, fees reached a sky-high 126%: Read the full article: [https://www.thestreet.com/memestocks/gme/gamestop-stock-short-sellers-take-a-beating-in-july](https://www.thestreet.com/memestocks/gme/gamestop-stock-short-sellers-take-a-beating-in-july) Gamestop GME short sellers have lost $443.4 million so far this month. GME is among the top 10 most unprofitable stocks for short sellers during July 2022. All GMErs out there, are you still long?

StockMarket

Ignoring conspiracies, short sellers and cryptic tweets. I put a big yolo into it simply because its at a crossroads of gaming, web 3.0, NFT, Crypto, decentralized marketplace, etc. All industries moving towards the future. I don't really care about their brick and mortar success. They are positioned well despite all the sentiment and hit pieces from MSM, and naysayers calling it a meme stock. Tesla's market cap is bigger then all major auto makers and they produce a fraction of the cars...is Tesla still a meme stock? However, if you do ignore conspiracies, short sellers and cryptic tweets, that implies you believe Wall Street is a bunch of straight up honest blokes with the best interest of the people in mind and they're completely operating in the strictly legal territory of free and fair markets...so bonus points on the conspiracies and short seller theories.

mus6f9

In case you missed it: yesterday's federal budget cut taxes by 50% for companies that manufacture zero-emission technologies in Canada

> To create jobs and support the growth of clean technology manufacturing in Canada: > >**Budget 2021 proposes to reduce—by 50 per cent—the general corporate and small business income tax rates for businesses that manufacture zero-emission technologies**. The reductions would go into effect on January 1, 2022, and would be gradually phased out starting January 1, 2029 and eliminated by January 1, 2032. The Department of Finance Canada will regularly review new technologies that might be eligible [https://www.budget.gc.ca/2021/report-rapport/p2-en.html#104](https://www.budget.gc.ca/2021/report-rapport/p2-en.html#104) Examples of zero-emission technology manufacturing in Canada: * Manufacturing of wind turbines, solar panels, and equipment used in hydroelectric facilities. * Manufacturing of geothermal energy systems. * Manufacturing of electric cars, busses, trucks, and other vehicles. * Manufacturing of batteries and fuel cells for electric vehicles. * Production of biofuels from waste materials. * Production of green hydrogen. * Manufacturing of electric vehicle charging systems. * Manufacturing of certain energy storage equipment.

CanadianInvestor

Since Canada has almost no large companies in these spaces and the smaller ones are not profitable, this is simply a feel good sound bite that does nothing. And costs the government almost nothing. Perhaps the hope is attract these businesses. Good luck with that.

n958n7

I analyzed 9000+ trades made by U.S Senators in the last two years and benchmarked it against S&P500. Here are the results.

P**reamble:** The ability of Senators to trade stocks has been controversial from the start. The 2020 congressional insider trading scandal where Senators used insider knowledge to trade large positions in stocks just before the coronavirus pandemic crash was just one example where they used their privileged position for gain.  While there is scope for a lot of discussion regarding the legality/ethical aspects of this, what I wanted to know is **Did Senators beat the market and can I beat the market if I follow their trades after its been made public?** **Where is the data from:** senatestockwatcher.com Massive shoutout to [u/rambat1994](https://www.reddit.com/u/rambat1994/) for putting in the efforts to create this site and make the knowledge public. The website has data of Senator trading from 2019. While I could observe that all the trades may not be captured by the site, given that we have more than 9K trades to work with, I feel that we should be good from a statistical significance perspective. Also, please note that the data will contain trades done by senators who are not currently in the senate (Either they were in Senate earlier and now in the house of representative or another position of power which forces them to disclose their trades) While senators are supposed to [report the transaction within 30 days](https://www.citizen.org/article/personal-financial-disclosure-requirements-for-public-officials/), the median delay in reporting that I observed for the trades was 28 days and the average delay was 52 days. There were some outliers that pushed the average up and are most likely due to the fact that their broker might not report the trade to them immediately. All the trades and my analysis are shared as a google sheet at the end. **Analysis:** https://preview.redd.it/ir6jqgjwsay61.png?width=644&format=png&auto=webp&s=d057f55015d8e25479815bfe760d4dde81240de6 A total of 9,676 trades were made by the senators in the past two years. This analysis would be focusing on the stock purchases made by the senators. (The stock sales and the pandemic controversy can be a standalone analysis by itself). Out of the 4,911 Buy’s what I am really interested in is the 1,375 transactions which were over $15K. I decided on this cutoff as I did not want small transactions (<5K) to affect the analysis. The hypothesis being that if someone is putting almost 10% of their annual salary into one trade, they should be very confident about the stock. (I know that some senators are millionaires and this hypothesis would not apply to them, but adding their net worth would again complicate the calculations unnecessarily) **Results:** For all the stock purchases I calculated the stock price change across 3 periods and benchmarked it against S&P500 returns during the same period.  a.            One Month b.            One Quarter c.             Till Date (From the date of purchase to Today) https://preview.redd.it/mnijwbqwsay61.png?width=948&format=png&auto=webp&s=828da0f685646a73946097f6b0dd86f753de024b At this point, it should not come as a surprise, but Senators did beat SP500 across the different time periods. But what I am really interested in is if it's possible to follow their trades after disclosure (after a time lag of 30 days) and still beat the benchmark. https://preview.redd.it/95cl91nwsay61.png?width=945&format=png&auto=webp&s=00ffc2fc430e5b7f3157ae4f264872d3ef95a0b2 If you had invested in the stocks Senators bought, even after adjusting for the lag of disclosure, you would beat SP500 over the long run. My theory for this is that Senators usually play the long game and invest having a time horizon of more than a year as sudden short-term gains can put a spotlight on their trades. This gives the retail investors a window of opportunity where they can follow the trades and make a significant profit. Now that our main question is out of the way, we can really deep dive into the data and see some interesting patterns. The next question I wanted to be answered was which were the best trades made by Senators over the last 2 years. https://preview.redd.it/75nyoa5ltay61.png?width=624&format=png&auto=webp&s=cb5b27919716360fdbaf31f4548f4d21e0401b49 Brian Mast seems to be the frontrunner with making almost 100% gain in one month, investing in lesser-known companies. Michael Garcia also seems to have made it rain with his Tesla plays. But not all the trades made by Senators were successful as shown below. https://preview.redd.it/xing6reltay61.png?width=624&format=png&auto=webp&s=9c9c3d13abbb8b060fecf8cee7b312bbdfd6efaf These are the worst trades made by Senators with Greg losing more than 80% of investment value within the disclosure period. But even Warren Buffet can go wrong on a stock pick. So, I wanted to know was who made the most returns over all their investments in the last 2 years. I only considered senators having at least $100K in investments and a minimum of 5 trades https://preview.redd.it/k4r34rpusay61.png?width=624&format=png&auto=webp&s=084ac821754d87d42d2f1ac9b822a9015125a443 John Curtis made a whopping 95% average return on his investments. All the top 10 Senators comfortably beat the market return of 26.4% during the same investment period. The next thing I looked at is the Senators that had the most amount of money invested in stocks during the last 2 years. https://preview.redd.it/igyz3jwdvay61.png?width=624&format=png&auto=webp&s=223b91d21b9201211a21ea24ec2daee0627b9166 The top 3 senators as shown above invested more than $15MM over the last 2 years and were also able to beat the market at the same time. Finally, this leads us to the last question of which were the most popular stocks among U.S senators https://preview.redd.it/fd66tjagvay61.png?width=624&format=png&auto=webp&s=9e92ab79c5b7316eb95e70dc22bed0b2f8615127 As expected, big tech dominates the investments but what was surprising was the skew of investment towards Microsoft which had more money invested in it than the rest of the top 9 put together. One important thing to note here is that except for Antero, the rest all the companies have a $100B+ valuation. **Limitations of analysis:** There are multiple limitations to the analysis. 1. The time period of the analysis is 2 years during which the market experienced a significant bull run. So, the results might change in a market downturn/recession 2. The data has been sourced from senatestockwatcher.com as parsing the data from the official government site is extremely difficult. All the recorded transactions have a pdf of the disclosure linked to them (you can find it in the google sheet). I have made my best effort to QC the data and make sure there are no false positives. But this might not contain all the transactions made by Senators. 3. There is no disclosure for the exact amount of money invested by Senators. The disclosure is always in ranges (e.g., $100k – $200k). So, for calculating the investment amount, I have taken the average of the given range. **Conclusion:** This analysis proves that Senators indeed get a better return than the overall market. Whether it is due to insider trading or due to their superior stock-picking capability is something that can’t be proven from the data and is left to the reader’s judgment. I intentionally left out the party affiliation of the Senators as I felt that it would bias the reader and was not the objective of this analysis. Whichever side of the political spectrum you lean-to, the above analysis shows that you get to gain by following their trades! Link to Google Sheet containing all the analysis and trades: [here](https://docs.google.com/spreadsheets/d/1Rg5jMYG-X4I7cidQylzCNc_UpJZGNhGrjAt7g0QkXYs/edit?usp=sharing) *Disclaimer: I am not a financial advisor* Edit: > There are two chambers in the legislative branch: Senate and House. Not all of these people are “senators” as you describe. I mistakenly classified all of the trades under the broad term of Senators! This is a mixture of trades done by both houses. So please keep this in mind while reading the post. Apologies again as politics is not really my strong suit.

StockMarket

The senators have their wealth management handling investments and pickings based on their clients risk tolerance. Nancy Perosi is at least 120M and invest in high tech heavily is doing well. Yes, 50,000 s of Tsla just follow her by 1 share. The rookie senators may handle their own investment. Many are as just broke. Interesting studies.

khn0r8

Since demand for gym memberships is way down from last year, why hasn't the cost come down at all?

Supposedly with the theory of supply and demand, if demand for gym memberships is down, but the supply remained about the same, then the price should fall. But gym membership prices seem to be the same as last year. I'm sure there is an annual demand cycle for gyms as well. source: https://www.cnbc.com/2020/07/23/many-dont-plan-to-renew-their-gym-memberships-post-pandemic-survey.html

AskEconomics

Because they have probably still been receiving monthly dues even though no one is going. The business model for most gyms is to sell more contracts than the gym has capacity for because they know half the people don’t go. If they can legally be open in whatever city they are in, I bet they are not allowing people to get out of contracts.

o5mtbq

Dark time to be a crypto investor

It is a hard time for all crypto investors right now. Literally everything is red, esp after it has been a hard couple weeks on the crypto markers. Many of us are holding bags, many of us have lost money that we couldn't afford to lose, some of us might not be able to pay rent or mortgages or possibly even buy food... ​ Most of us invested in crypto to 'get rich' or at least escape poverty... weather we like to admit it or not we invest because we want a better life for ourselves, our family, our children etc ​ Sure people who are on their high horse will say don't spend money you cant lose, dont over leverage, dont buy crypto, dont xyz - But that doesn't help in this moment and it isnt fair to be kicked when you're down. ​ There have been many crashes in crypto and probably many more to come. I'm not here to tell you to Hold or buy the dip or even sell. I'm just here to tell you that you're not alone, tomorrow is another day. ​ So where ever you are around the world, whatever you do just know others are all hurting just like you right now and we will be better investors for this experience and for those that are HODLing like me just know we will see better days again and not to give up on chasing a better financial future for yourself. ​ TL: This is Pastry1 from Australia tell you to stay strong!

CryptoMarkets

This is not a hard time my friend. This is why they say only invest what your can afford to lose. The crash in 2014 was 90% almost overnight. This is a just a healthy correction for most projects. Keep DCAing into the market and bring your average cost down. You'll get through it.

wce3b9

Why is the news so negative about house prices dropping when this is great news for minimum wage workers like me trying to get a foot in the door?

Every article I read paints the picture that the housing market dropping 20% will be a disaster for the country but for low income earners like myself I might be able to actually afford something decent in a short while. During the pandemic prices were moving up so fast I thought it was over for me and the media was celebrating this. I guess im supposed to feel guilty that I may not be priced out of owning home? There’s all this talk about addressing housing affordability but when it actually starts to happen people scream the sky is falling. I don’t get it. Do people earning less than 100k per year even have a goddamn voice in this country?

AusFinance

Part of the reason for all the negativity is the wealth effect being hit when house prices drop. People who may have no intention or interest in selling love to hear their house appreciated by $100K or so. Some may use that to refinance, draw down on equity to pay for an IP or buy a new car, or go on an overseas trip. So when they hear their house has dropped in value by $100K, they feel poorer. Now, to go on that trip to Bali or Bermuda, they may not have enough equity to draw down. So they either have to save (many may not be doing that actively so it feels hard), or they have to pull back on their expectations- the new Porsche Cayenne will have to wait, so the old Pajero will have to keep going for a few more years. So even though people may not be looking to sell, their lives are impacted because their options for increased consumption have been pared back. Besides, we have a culture where home ownership is worshipped and some of the media networks have ownership in the real estate portals.

lppquu

Warren Buffett Quantitative Checklist - 5000+ Stocks Rated

Hey everyone! I recently read a great book on Warren Buffett called Buffettology. The book lays out a whole set of criteria that Buffett looks for when buying stocks so I thought… alright, let’s see if we can grade all the stocks! Here, in this post, are the results. # The Rules First, the rules. Each rule below receives a point for a pass, and no points for a fail, much like the Piotroski Score. The points were gathered from insights in Buffettology (I’d recommend a read if you haven’t already). * Rule 1 - Consistent Earnings (5yr / TTM growth > 0%) * Rule 2 - Good debt coverage (can pay down debt in <3yr) * Rule 3 - High Return on Equity (>15% average over 5yr) * Rule 4 - High Return on Invested Capital (>12% average over 5yr) * Rule 5 - FCF Generation (TTM FCF > $0) * Rule 6 - Buying Back Shares? (Share count today < share count 5yr ago) * Rule 7 - IRR greater than Long-Term Treasury (initial rate of return > 1.1%) * Rule 8 - ERR greater than 12% (expected rate of return > 12% - calculated using analyst growth estimates) Now, the data. Like always it’s in a Google sheet. I have ranked the stocks from 8 on down. If you’re interested in a particular stock, search for it within the document. # The Data The data: [https://docs.google.com/spreadsheets/d/1GLuUXKGBg7Rq0LgkdVPcybHKnsEl44eQ1cadtz84oZ0/edit#gid=0](https://docs.google.com/spreadsheets/d/1GLuUXKGBg7Rq0LgkdVPcybHKnsEl44eQ1cadtz84oZ0/edit#gid=0) # Feedback Got a rule you think should be in there, or something confusing about the score? Let me know. I make quirky things like this quite frequently for my YouTube channel (won’t link to avoid breaking any rules), and would love to take some feedback on continue iterating on this Warren Buffett checklist.

ValueInvesting

I like the thinking and the list. To differentiate a little more, it would be great to see what it would look like adding Benjamin Graham's rules from The Intelligent Investor. I am thinking specifically of Chapter 5 "The Defensive Investor and Common Stocks". The ones I would like to see are: * Limit price over average earnings from the last 7 years to be not more than 25 times those average earnings. * Price to Earnings not over 20 for the last 12 months earnings * Conservatively Financed - defined by Graham as "common stock (at book value) represents at least half of the total capitalization, including all bank debt." * Prominent - defined by Graham as "company should rank among the first quarter or first third in size within its industry group"

y2mda9

What is the contrarian argument for why a recession is not coming?

It seems like there is widespread sentiment that a recession is looming. Every news outlet is calling for one in some capacity and the public seems to be in agreement with them. What's the argument for why that prediction is wrong?

AskEconomics

Corporate earnings are very strong. There is still a shortage of people to fill jobs. The dollar has strengthened, which will drive down inflation and increase purchasing power. Banks are still in good shape and are still lending. If consumers keep on spending, and banks and corporations are still doing well, the economy may not go into recession. Note: I personally think we will have a mild, but relatively long recession. Also note: mild recessions are not pleasant.

m14p44

Deliveroo IPO Ahoy. £50 million of shares available for Deliveroo customers.

I have just received the email enquiring regarding my interest (Full disclosure.... I am) probably by virtue of being an enthusiastic customer keeping Wingstop on the Heliport Trading Estate in business single handedly. Anyone else going to get amongst this? Of course they don’t yet make a profit, have circa £110 million of debt and yet are still touting £7 billion as a potential valuation. Do I need my head examined by a qualified professional or if I repeat the mantra “Future earnings” will that help me sleep better at night? *** Edit *** General consensus is that fundamentals are poor and this is a punt. I’m a gambling man with capital to blow, let us see how the situation develops.

UKInvesting

I thought about, and I am leaning to not investing in it. [On revenue of £770 million in 2019, they couldn't turn a profit.](https://www.ft.com/content/a882d2dc-fa43-4d98-a42e-c7270ddf9b44) They ended up losing £310 million on that. In other words, to break even in 2019, they would've needed revenue of £1bn+ - _to break even_. I don't know of any other business Deliveroo is involved in bar food & grocery delivery. I don't know their plans for vertical or horizontal expansion either, but nothing looks obvious. They expect the Deliveroo app to be sticky in a lockdown-free world, because users have been trained to use the app. I think there's an argument that will happen, but not to the extent Deliveroo expect. Which brings me back to my main point: On £770 million, they couldn't turn a profit. I just don't feel the buzz or hype about this one. My 2p. Edit: > General consensus is that fundamentals are poor and this is a punt. I’m a gambling man with capital to blow, let us see how the situation develops. Good luck and godspeed, sir.

tb92al

The Smoking Gun

**TL:DR - Here's the proof... we were lied to.... the numbers don't add up.. shorts did not cover during January and I still don't see how they could have. Read this FULLY and tell me I'm wrong** \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ My fellow Apes, Lately I've been thinking about the short-interest publication by S3 last year when Ihor (yeah, remember him?) tried to explain how the short-interest reached 140%. This was a central topic to our conversations on previous subreddits and it seems to have been forgotten. We kind of glazed over it during the hype and I don't think we ever documented the process or properly defined WTF happened. I'm putting this DD together to analyze the timeline of events. Just so there are no doubts about the actual SI %, I grabbed this screenshot directly from the [SEC's report](https://www.sec.gov/files/staff-report-equity-options-market-struction-conditions-early-2021.pdf) last October. [page 21 of the PDF](https://preview.redd.it/kdmui3s8llm81.png?width=891&format=png&auto=webp&s=7bc018c0bc88d2eefe65706e21110323806ca31e) When everyone found out the SI% was this high, there were suddenly SOOOOOO many questions asking how it can even happen. Without a way to accurately determine the SI% using public info, several of us used S3 and Ihor because they had been relatively objective in the past. Anyway, prior to January no one really paid enough attention to actually give a sh\*t about these figures. Or better yet, there weren't enough eyes on the issue to dig into it. That obviously changed after January and people like Ihor were suddenly faced with some serious questions, primarily *"HOW THE F\*CK DO THESE PEOPLE SELL MORE SHARES THAN EXIST"* ...I remember it like yesterday.... There was a *very* quick narrative change from the S3 team.. Ihor quickly went from supporting the traditional (and more objective) equation ...to Frankenstein's monster of a formula.... [https:\/\/twitter.com\/ihors3\/status\/1354856088907210754](https://preview.redd.it/pbe5f56yglm81.png?width=597&format=png&auto=webp&s=54e87f206b1eaf2a27530dbd97f584adfd8e4eb7) ​ Let's dissect this sh\*t one step at a time because there's A LOT going on in this post... \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ **Step 1: WTF is a synthetic long?** Ihor states that every short sale CREATES a synthetic long.. Whenever you short sell a stock, the obligation to repurchase that share at a later date is created. Therefore, what Ihor is saying is that each obligation to purchase a FUTURE share should be treated as an ADDITIONAL share to those that already exist.. His own words..... **"the traditional float number in the SI % Float calc is** **WRONG"**... Keep in mind this was literally during the peak of the event in January... convenient timing, right? \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ **Step 2: Redefine the SI % calculation to include synthetic longs** Get ready because sh\*t is about to throw you for a f\*cking loop... Ihor is literally suggesting that the SI% should include the short positions IN THE DENOMINATOR of the calculation, AS WELL AS THE NUMERATOR.... If you keep the same figures I reported above (70m / 50m) and recalculate SI% the way that Ihor suggests, here's the result: **70m shorts / (50m float + 70m SYNTHETIC shares) = 70m shorts / 120m TOTAL SHARES = 58.3%** Surely to GOD we haven't been reduced to this level of desperation... but here's his post from the **VERY NEXT DAY**. [https:\/\/twitter.com\/ihors3\/status\/1355194252674953219?lang=en](https://preview.redd.it/k5miphuhylm81.png?width=590&format=png&auto=webp&s=bd434d0f02026369b5339f801336fbb3b0d6401a) Now I'm no genius, but it REAAAAAAAAALLY looks like Ihor reported the actual SI% using the new figures after 1/28/2021 **AND reported his new S3 calculation using the synthetic longs in the denominator....** Want more evidence? Take the 57.83m shares that Ihor reported as sold short, add those to the number of shares that were in the float (50m or so), then divide that total by the 57.83m..... **57.83m / (50m float + 57.83 synthetic shares) = 53.63%....** f\*cking WHAT!? Ihor reports 53.12% and I calculated 53.63% by shooting from the hip?! GTFO.. Based on the SEC's report, we know there was a small amount of covering during this time and I'm not doubting that the short interest dropped to 113%, but if the ACTUAL short interest was still 113% after we hit our peak, then when the f\*ck did they cover? (I'll come back to this, later) \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ **Step 3: You can't get 5 quarts of milk out of a gallon jug!** Apparently, this guy is appealing to the common sense of the average investor by playing dumb.. Why do I think he's 'playing' dumb? **HODL my f\*cking beer and watch this..** If you haven't read the HOC series and don't know about the ways that companies fail to mark the short sale indicator on their shares, then I would suggest you go back and do that. It's the most obvious way for a company to conceal short positions. It can go on for years without people knowing and it creates millions of phantom shares, which I'm pretty sure everyone knows about at this point. When phantom shares are lent multiple times because they are never documented to begin with, you most definitely have a 5th quart of milk, dumbass. But let's assume you DON'T know about that... Check out this FINRA violation from Barclays: [https:\/\/files.brokercheck.finra.org\/firm\/firm\_19714.pdf](https://preview.redd.it/zbl73bat0mm81.png?width=771&format=png&auto=webp&s=cf52a95aa0846ea699aead4bb8ba81dece62c459) So people like Ihor use numbers that are provided from a source, which is usually these f\*ckheads. The biggest issue that most of us have been talking about is the ACCURACY of those reports. When Ihor gets his report, there's no way to validate the numbers because it's not his calculation to validate. Instead, someone like Barclays (listed above) uses their own "methods" to determine if they are long or short on a given stock (or derivative). Therefore, if they include a number that is calculated erroneously, people like Ihor have to use that faulty information. Here in lies the problem and this is why I think Ihor is full of sh\*t. For someone that's a "Managing Director of Predictive Analytics" at a Financial Analytics Firm, you can't assert that you are unaware of these errors within your source information.... I have half a wrinkle and I can put this sh\*t together so there's no way in Hell that you can't. Anyway, Barclay's over-tendered 270,000 shares in a company because it miscalculated it's long position. They manually calculated their long position using multiple systems which **ultimately excluded a short position** that was housed in (yet) another system... Now we know this isn't a major f\*ck up compared to the crimes I listed in the HoC, but it's plenty of ammunition to blow more holes in Ihor's milk jug theory. If Ihor's source report excludes these shares, it means that all of the shares which SHOULD have been included in his report, WEREN'T... Furthermore, I pulled this from the SEC's report: https://preview.redd.it/0n3tjjobdmm81.png?width=868&format=png&auto=webp&s=09944a1fe016271800b4af7b21cae070d95d79f1 So not only does the 5th quart **exist**, but you never **included** the 4th quart, either... Huh.... 'magine that.... \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Now then... where was I? Aside from Ihor's proprietary SI formula and his blatant gaslighting, what actually happened to the shorts during January? *....Well HODL on to your f\*cking hats...* Let's get back to the timeline... on 1/29/2021 Ihor comes out with a new SI figure which shows the new S3 calculation. I truly believe this was the beginning of the media campaign to pump FUD into retail investors. At this time, many people were referring to the run-up as the short squeeze, or even a gamma / delta squeeze. We had no idea what it was because there was no financial information about it... HOWEVER.... It LOOKED a lot like a short squeeze.. As we moved into the first week of February, it's as if all of the news outlets were trying to shout the same story: **the rally has GameStopped and the shorts have covered**. Here's just ONE from CNBC.. [https:\/\/www.cnbc.com\/2021\/01\/29\/gamestop-short-sellers-are-still-not-surrendering-despite-nearly-20-billion-in-losses-this-year.html](https://preview.redd.it/74hewsm5bmm81.png?width=1014&format=png&auto=webp&s=20003b4273059b977f7590b4766eaa25e4366bd9) ​ We all saw how many tactics that were used to simultaneously promote the same story in favor of corporate interests. They acknowledged that Redditors had caused some damage to the hedgies, but ultimately it was over and **"MOST OF THE SHORT COVERING OCCURRED ON THURSDAY, WHEN THE STOCK FELL FOR THE FIRST TIME IN SIX DAYS."** Note the comments regarding other short sellers holding and / or taking new positions against the stock.. Anyway, this was also published on 1/29/2021 and includes quotes directly from S3... right after S3 publishes new figures which indicate declining short interest.. Several of us thought they would cover once the buy button was blocked by certain brokers.. It was the perfect opportunity to do so because supply went WAAAAAAAAAAAYYYYY up... ...and yet, the total amount of SI on 1/29/2021 was still over 100% and covering would have meant financial suicide... these f\*ckers have been shorting meme stonks for literally a decade.... back when the price was like $4 - $5 a share.... imagine still paying $100 or even $50 a share to get out of that bet.. So what's a better thing to do..... nuke your long positions and cover, or spend the cash to pump media FUD and make it look like it's game over? ​ IDK.... you tell me... \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Yet again, I reference the SEC's official report.. https://preview.redd.it/646h1fmmdmm81.png?width=857&format=png&auto=webp&s=46ab1a42ad2f7bd44f430566bb6edc3b39f16b28 It's nothing new... we know the SEC reported that most of the buying was from retail and not shorts... but look at that last line..... ".. sustained the WEEKS-long price appreciation...." ..Well tickle-my-balls.... so what exactly happened to the shorts? [Figure 6 from the SEC's report](https://preview.redd.it/wc0j36uxdmm81.png?width=847&format=png&auto=webp&s=7496333e1c4142088fa82a2650efeae72dd823b5) The blue bars are total buy volume and the red bars are buying from short sellers.. Look at all of the dates between 1/19/2021 and 1/29/2021... remember what Ihor said about this time frame? ...we dropped from around **140% to 113%**... as of 1/29/2021, Ihor said the ACTUAL short interest was 113%.... that's BEFORE using S3's new SI% calculation..... Now go back to the red bars...... assuming 140% was the high... you mean to tell me that ALL of that buying was only a 27% reduction... (let me double check my maff.... 140 - 113... yup... 27%) in the outstanding short interest?.... Did they cover after the price dropped while the buy button was disabled? IDFK, you tell me... does it look like there was much activity from short sellers covering after 1/29/2021? To me, it looks like these mother f\*ckers spent money trying to gaslight the population and hope we washed our hands of it.... There is NO F\*CKING WAY short interest dropped below 100% after all of this... Not to mention this PROVES the media lied to us for MONTHS about shorts covering because the SEC determined that was a HUGE F\*CKING NO. ​ ​ We weren't wrong: we were gaslighted and lied to. Here's the smoking gun. ​ Someone's not telling the truth. ​ DIAMOND.F\*CKING.HANDS \#GMEtotheMOON

Superstonk

Just remember the rich fuks weren't crying on tv for no reason. Also remember the comments that were made by the Robinthehood people after talking to shitadel in their pre shut off the buy button talks ...saying things looked really really bad over there! Melvin didn't get a cash infusion for no reason. Same for kenny It's all a never ending bad comedy joke!

iyw4q1

Mark Cuban: Every household in America should receive a $1,000 stimulus check every 2 weeks for the next 2 months

https://www.cnbc.com/2020/09/23/mark-cuban-americans-should-get-a-1000-dollar-stimulus-check-every-2-weeks.html Cuban says that all American households, no matter their income level, should receive a $1,000 stimulus check every two weeks for the next two months. He proposed this same idea in May and says "I still believe in doing it the exact same way" today. Additionally, families would have to spend each check within 10 days, or they would lose the money, Cuban says. He believes this "use it or lose it approach" would be beneficial because it would promote spending, which would help businesses stay open and stimulate the economy. Without mandating the money be spent within 10 days of receipt, Cuban believes many Americans will save it. "People are uncertain about their future, so rather than spending, they save," he says. He has a point: Many Americans have been saving more amid the pandemic than ever. In April, the personal savings rate hit a record high, according to the U.S. Bureau of Economic Analysis. Thanks for the awards.

StockMarket

Spending 1k every 2 weeks feels like something from Brewster's Millions. Sure, I could go buy a new 60 in TV... or 3 of them. But is that what Cuban really means? He may be a bit out of touch with how much 1k actually is to people. Edit: I think I'm being misinterpreted here. I was actually saying that 1k IS a lot of money to people. To force them to spend it in 10 days seems a little absurd. I'm sure Cuban drops 1k at dinner. Also, yes, 100% agree 2k a month is poverty wages. This is not a comparison to a living wage, this is extra money Cuban wants the government to send to people to just go out and spend, and force them to do it in a very limited amount of time.

skwtip

Something is not adding up about the FB coverage

There's a lot of talk about Apple's privacy policy destroying FB's ad business and TikTok destroying Meta's family of apps user growth. And sure both those things have some negative impact on that metric. But their advertising business saw it's highest quarter revenue ever and its family of Apps saw it's largest quarter operating profit ever. Ad revenue was 14% higher than the previous high and FoA profit was up 7%. So their core business is still growing. But the perception being pushed out is that FB is doomed. The reality is their investment into Reality Labs is what is causing profits to be lower than last years 4th quarter. But reality Labs is essentially Research & Development mostly. That is not the same thing as their core business shrinking. Not even close. But it's being priced as if it is. Huge disconnect. I am Long FB.

ValueInvesting

The core business probably isn’t doomed and it’s probably a reasonable value right now. But I think there is a lot of doubt about the entire metaverse project. It’s going to take years of burning billions of dollars for a project no one is sure will pan out and seemingly is not wanted by customers.

ifjh95

How is Byjus able to generate a revenue of $72m in a country where majority of its population is middle class, and of course a fair share below the poverty line.

I can’t imagine having such a hugely successful market in India where a lot of parents struggle to even pay for school. Yes I know that the indian middle class now has more of a disposable income now, but curious as this is a niche market and they were only founded in 2011.

IndiaInvestments

I remember this one instance with my nephew. They came to his house for a demo, he said he's not interested, but they kept insisting that he buys the product. He told them to leave the items and come back later for the money. They've never come back to get the money nor did they take the product back. He got a free tablet.

fttx01

My Broker (Questrade) called the police on me after I refused to take down posts criticizing them

This is kind of part 3 of what's been happening so here are some links to the first 2 posts as well as a link to the original post on WSB about this story: Original post - [My broker (Questrade) wants me to sign an NDA saying I won't talk shit about them after offering me $1200 USD as compensation for losing $50000 from outages](https://www.reddit.com/r/wallstreetbets/comments/frz0fp/my_broker_questrade_wants_me_to_sign_an_nda/) Post #2 - [Questrade Legal Contacted me](https://www.reddit.com/r/wallstreetbets/comments/fsnubq/contacted_by_questrade_legal_team_for_permission/) Post #3 (Original post on WSB)- [Got a call from police regarding "threats" to Questrade last night... I was read some of the posts you guys made on their sub](https://www.reddit.com/r/wallstreetbets/comments/ft80y4/got_a_call_from_police_regarding_threats_to/) So in the original email where they mention legal action they accused me of threats, extortion and defamation. >"We ask that you remove these posts immediately and you cease to use social media to post defamatory and misleading statements about Questrade in an attempt to extort funds from the company. If you do not remove these posts, you are put on notice that this will become a legal matter. Our legal department are already investigating two prior posts you made where you stated that you were ready to "burn down the building" as well as making the following statement: “ if I can’t get my money back I’ll be sure they lose an equal amount in whatever way I can.''" Obviously the quotes in the email don't provide full context but the cops understood that and read it back to me. Paraphrasing here but this is the comment regarding burning down the building: >What is going on with Questrade support? This is such a joke. It pretty much feels like all they're saying is "too bad so sad" and "fuck you". Honestly getting tired with this.. I feel like I'm going crazy... getting ready to burn down the building. What a joke So obviously I was saying it as a figure of speech in a time of frustration and not serious in anyway regarding it but regardless Questrade took it to the police. The other comment about "if I can't get my money back I'll be sure they lose an equal amount in whatever way I can" was meant as in them losing potential/current client's commissions. Obviously I didn't mean any harm which I clarified in my reply to the original email. Basically the police cautioned me and said they don't think I was serious. The call I got was around 1:30am EST and I asked if they usually call this late and the officer said that they were just getting to it cause they had more pressing matters (assuming COVID19). Just a waste of police resources in general if you ask me. Especially during this time. Like the guy from the TradeDesk said to me in an email... >"To keep things in perspective, the world is reeling from a tragic situation. Thousands of people have lost their lives. Our staff have been working around the clock to help our clients get through this unprecedented crisis. In response to our genuine attempts to find an amicable solution, you have threatened and insulted our staff. I urge you to think about your actions." I would urge Questrade to think about their actions. The officer also asked me if I was the one writing posts about "Questrade killing someone's wife"(?) and I think something about Hitler but I was able to clarify that it wasn't me writing those posts and it was other people who were likely upset. Just find it pretty ridiculous that police had to waste their time going through screenshots sent by Questrade of their sub... Not sure why they would waste the police's time with this but it ultimately resulted in nothing. It was, in my opinion, obvious that those comments were both said out of frustration and I removed them (along with all comments) at the request of a Questrade employee as well anyway. I think what people should take away from this though is how poorly Questrade is treating its clients. If I were to phone them and be upset I don't want to be scared of potentially having a criminal charge brought forward on me because they took something I said out of frustration seriously and involved the police. Honestly think their handling of this matter has been incredibly unprofessional throughout. Upsetting to think this was a company I used to admire and recommend to countless people. Even just a few days before all this happened I was recommending them to friends - https://imgur.com/a/DHVOHhE It's amazing to me how poorly they've handled all this and how in less than 3 weeks my opinion of them has done a complete 180. What a joke. I'm sure you guys worked this out for yourselves but just want to point out how it's weirdly convenient that they saw the "threats" last week but the police only contacted me after I refused to take down my posts about them... (15 hours after the deadline Questrade gave me to take down the posts) Proof I was contacted by police since some people think I am lying about it- https://imgur.com/a/rVU3KfR ________________________________________________ Guys if you want to help get the word out and potentially save other Canadians from signing up with this nightmare of a broker **please tweet this thread at Questrade or Business Insider or marketwatch or bloomberg or anyone else that can write about it.** I don't have an active twitter account so can't really do it myself but would appreciate it immensely. I think it's important for Canadians to know that they could potentially get contacted by the police if they say something to their broker out of frustration or anger. People should know what kind of company they are dealing with. You can also email the News Tips email on sites with links to these threads if you want. Thanks guys. edit: To contact cbc: https://www.cbc.ca/mediacentre/contact and gopublic@cbc.ca ______________________________ Edit 2: To those saying I'm in the wrong. I can agree that I shouldn't have said some things but what I want to point out is this I understand that but if they were worried about the threat why did they wait until after my second round of postings to bring it up? Why wasn't I contacted by police sooner regarding it. How is it that police only contacted me about 15 hours after the deadline they gave me to take down my posts had passed? If there was a concern of safety they had screenshots of the posts Thursday March 26 at 5:53 pm EST at the latest. How is it police only contacted me April 1st at 1:16AM EST? 13 hours and 16 minutes after the deadline had passed. Police also had screenshots of posts made on Mar 30 and Mar 31. Obviously I can't know but it seems like they only went to the police after I refused to take down the posts. Here's a more clear timeline: Step 1 - lose money Step 2 - post about it on /r/Questrade (and only /r/Questrade) on every single post and warn people Step 3 - mod on /r/Questrade asks for my number Step 4 - TradeDeskGuy calls me to talk to me Step 5 - TradeDeskGuy says he's gonna see what kind of compensation he can get me Step 6 - TradeDeskGuy asks me to remove my posts while he is "going to bat for me" (no joke he really said that) >While I review your complaint below can you do me a solid and remove repetitive posts on wherever you posted online. You can keep your original complaint if you wish. Your entitled to vent your frustration but there are limits to that. We have thousands upon thousands of happy clients which you were probably one of prior to the outages and you spamming the boards is giving your bias. It is not a fair representation of Questrade nor does it help when I go to bat for you. >I was told you already apologized to those responsible for responding to social posts so I thank you for that. >Thanks Step 7 - I comply and delete even my original complaint Step 8 - Receive 1200USD offer Step 9 - Decline offer and post about what happened everywhere I can think of Step 10 - Get asked to remove my posts again (by TradeDeskGuy): >I have just been notified that you have posted information from our private discussions on Reddit. These discussions were confidential and constituted good faith attempt to resolve your complaint. Your Reddit posts are inaccurate, misleading and contain defamatory content. As we discussed, you incurred a loss as a result of trading in high risk options, which you failed to mention in your posts. >We ask that you remove these posts immediately and you cease to use social media to post defamatory and misleading statements about Questrade in an attempt to extort funds from the company. If you do not remove these posts, you are put on notice that this will become a legal matter. Our legal department are already investigating two prior posts you made where you stated that you were ready to "burn down the building" as well as making the following statement: “ if I can’t get my money back I’ll be sure they lose an equal amount in whatever way I can.'' >If we do not receive your confirmation by 12pm on March 31, 2020, that you will discontinue posting defamatory content on social media, you will leave us no choice than to commence legal action. >To keep things in perspective, the world is reeling from a tragic situation. Thousands of people have lost their lives. Our staff have been working around the clock to help our clients get through this unprecedented crisis. In response to our genuine attempts to find an amicable solution, you have threatened and insulted our staff. I urge you to think about your actions. Step 11 - I don't Step 12 - Mar 31 12pm passes Step 13 - 13.5 hours later I get a call from the police regarding the "threats" that I had deleted in Step 7 I think Step was the wrong word to use in all this but does that clear up the timeline for you?

CanadianInvestor

Good luck OP. Their recent issues where I couldn't make trades and all has been in a real bad taste. I understand many many new clients are prob up and running but still, no excuses. I'm gonna wait for Wealthsimple to clean up their Trade platform and will likely switch once the time comes.

dusg97

Broke down crying cause I’m paying for the bus in 95% pennies

It’s so embarrassing and I just felt so much hatred and jealousy for people who don’t have to go through this. I’m struggling bad and I can’t afford anything. Job cut my hours extremely so I’m SOL. I’m emotionally tired Edit: wow omg first off thank you guys for the love and support. It means the world to me. I never expected this many people to be on my side. I just made a quick post with tears coming down my face, expecting nothing. Thank you I’m gonna cry but happy tears.

povertyfinance

For all people know, you're just trying to use up all your spare change lying around. You have nothing to be embarrassed about. I understand being emotionally tired, financial struggle is draining and stressful. Your mental health is valuable, so try and see what public services are available to you while you try to find better work. I know it feels horrible and isolating now, but we've all been there before and you're not on your own. It's a rough patch and it sucks a lot, but you'll make it through. If you need help finding social services, message me your location and I can try and see what's available in your city.

9r3b6n

Tesla posts profit of $2.92, stock jumps 7 percent

https://www.cnbc.com/2018/10/24/tesla-earnings-q3-2018.html 2.92/share is actually much more than even I was expecting as a Tesla Bull. What does /r/investing think about this earnings?

investing

This might be a good time for many folks on this sub to take a step back, and think about how the relentless financial industry propaganda is causing you to miss out on opportunities. E: Thanks for gold kind sirs (first time)!

l6utb0

Crazy thought..WSB might have just made Value investing cool again.

Sounds crazy but WSB just made value investing cool again. I know right now its all hype and momo investing but the guy that started it all was a value investor named deepf&ingvalue. He bought gamestop as a value play, they are celebrating michael burry for his value play. I know this is value play plus huge luck that market shenanigans amplified your play, but still it started as a value play. I think when its all over people will start looking for the next gamestock buy digging through undervalued out of favor stocks. plus when everyone loses money they always come to Buffett.

ValueInvesting

It’s gotten me here. I pulled *The Intelligent Investor* and Peter Lynch’s *One Up On Wall Street* back off the bookshelves today because of this. And I’m in this subreddit now. Commenting. From books and a desire to invest I’ve had my whole life but couldn’t just ever “find the time” for. (Or depression, anxiety, life, whatever).

xmhyxf

You are doing the opposite of the upper class if you are panicking right now

Now is the time to buy. It could be rough for 1 year, 3 years, 5 years etc. but show me a time where after 10 years the market did not rebound and it’s a very small percentage. You think the upper class invests only when the market is hot? No. They invest when the market is shit. They invest in real estate when it is shit. They invest in crypto when it is shit. They invest when proven assets are shit and real the reward when they are hot. Don’t fret. Ride the wave and keep buying SCHD, VOO, VTI, DGRO, and VYM if able. Also, if the stock market tanks for 10 straight years we have much bigger issues on our hands and you won’t give two shits about your portfolio

dividends

This is exactly where DCA implementation has it's biggest benefit, Steady and regular investments (fixed dollar amount every month) or slight increases as your income allows means you acquire more shares for the same amount. Over time your lower priced purchases outpace your higher priced purchases and your average cost basis per share drops.

gnr93q

Explain like I’m 5: how does real estate investing beat the stock market?

From the data I’ve seen, I don’t really see it. Someone please enlighten me. I’m interested but the returns I see seem to be lower and it’s a ton of work. Leverage? Tax rules? What am I missing?

realestateinvesting

Here's the math. The term cap rate refers to the net operating income divided by the price of the property. Net operating income ignores any mortgage, as that cost can fluctuate greatly based on how big of a loan is taken out. The cap rate is essentially the return you would achieve if you bought the property outright without a mortgage. I'll explain why you wouldnt do that. In today's market where values are high cap rates are lower, but typically still higher than the cost of a mortgage. Let's use 8% cap rate (return) for example as that's around where I bought my last property. Let's see how leverage enhances those returns with a fictional example of a 100K property where we put 20K down and borrow 80K @ a 4% interest rate. A 100k property with an 8% cap rate will return 8k in NOI annually, and the interest on the loan will cost $3,200, for a net income of $4,800 A $4,800 net income on a 20k investment is a 24% leveraged return in your first year. If rent income increases or property value increases, so does you return. And that's how leverage takes an investment which produces an 8% return and turns it into a 24% return. US Real Estste allows you to apply a lot of leverage in a way that's not overly risky (dont get me wrong, more leverage always means more risk). Did I succeed in ELI5? My first attempt.

gcoxw3

Why the hell do we have rent control in various cities when economists mostly agree it’s not good?

This is driving me crazy just from confusion. In like 90% of books and sources I read, experts say rent control creates scarcity, it does the opposite of its desired effect essentially. I’ve seen that when rent control was put into place in various cities it immediately lead to less housing development. I’ve seen that it causes landlords to not care about upkeep, it causes abandoned buildings occasionally cause they weren’t profitable, and I read it can lead to construction of more luxury buildings where rent control doesn’t apply. In that last case it seems like this system that tries to help the poor in fact helps the rich. Yet I still see politicians advocating for it and it still exists in places around the world. What the hell am I missing? People don’t seem that upset over this and I don’t get it lol.

AskEconomics

You are correct, rent control is widely discouraged by economists. I think the simplest answer is that policy is not set by economists, it's set by politicians and the voters that elect them. In *many* instances, politicians enact policies that most economists would advise against. It's likely worth noting that while rent control is negative in aggregate, it can produce some winners in the process. Particularly, if you're a resident in a rent-controlled apartment, the policy may benefit you even if it's at the expense of many others. So it's entirely possible that the beneficiaries (who are current residents) may be a powerful voting group.

ron69w

Should my retired father put $2000000 all in SCHD and just collect 3%, $60000 yearly in dividends?

He will get on top of SCHD dividend income, US social security. He doesn't have a work pension or an IRA withdrawal, because he immigrated to USA 15 years ago and put all his money towards buying a house. He will have to sell his home and rent an apartment. I think I will do this with good confidence. I am age 43 and I bought a lot of SCHD since 2015. It grew and it always paid dividends, even in 2020. What do you think?

dividends

He definitely shouldn't sell his house in order to do this. Rent will almost certainly be more expensive than mortgage if he bought 15 years ago, and in another 15 years his living expenses will drop a ton of he keeps it. Also, even if it's a good dividend security, putting all your eggs in one basket is only good for growth, not stability. He would need to split it up at least a little bit between some ETFs in different sectors to be safe.

y9nds9

I just paid off the last part of my debt!

Sorry if this is entirely irrelevant, but I just wanted somewhere to celebrate this achievement. It’s taken me the last year to pay off all of my debt which totalled around £8700 last September. This morning I paid off the final £475 of a bank loan I took out a few years ago which was £6850 when I made my first payment towards it at the end of October last year. This has felt at times like a day that would never come. I’ve had to make adjustments, postpone my ‘debt free’ date numerous times because of life getting in the way, but for the first time in a long time I can actually breathe freely without that weight on my chest. Next steps I’ve planned are as follows; Save up for Christmas shopping, and also save to pay my car insurance outright (due 21st December). After this I’m going to save up a £4000 emergency fund, then I’m going to save again and treat myself to a new car. For now though, I’ll be celebrating with a meal out this weekend with my girlfriend who has supported me through the highs and lows of the last year. Just wanted to finally say I did it. No debt to my name anymore. It feels like a never ending spiral staircase, but there IS a top and you CAN reach it! Thanks to everyone on this sub also for the incredible knowledge I’ve picked up whilst reading through many posts. You guys are awesome! Edit: A huge thank you to all of you leaving lovely comments, didn’t expect this post to gain so much traction at all! I’d reply individually but I’m currently at work and don’t have the time, so THANK YOU!!!

UKPersonalFinance

This is an entirely relevant post on the success of wrestling your debt as you say through highs and lows. It hopefully show others that its within your power! ​ Congrats, enjoy the feeling have a great meal!

6hd8r3

[ETH Daily Discussion] - 15/Jun/2017

Welcome to the ETH Daily Discussion thread of /r/EthTrader. *** The thread guidelines are as follows: - All sub rules apply here. Please review our **[rules page](https://www.reddit.com/r/ethtrader/about/rules/)** to become familiar with them. The rules page is also linked in the announcement bar above. - General discussion topics include, but are not limited to, events of the day, technical analysis, alternative Ethereum projects, or support issues. - Breaking news or other important content should be submitted as a separate post. - In-depth altcoin discussions should be referred to the /r/CryptoCurrency discussion thread. To view the thread, [follow this link](https://np.reddit.com/r/CryptoCurrency/search?q=%5BMonthly+General+Discussion%5D&restrict_sr=on&sort=new&t=all) and choose the latest entry on the search page. - Pumping, venting, trolling, or any other similar behavior **should be reported** and redirected to the /r/CryptoMarkets trollbox thread. To visit this thread, [follow this link](https://np.reddit.com/r/CryptoMarkets/search?q=Trollbox+Thread&sort=new&restrict_sr=on&t=all) and choose the latest entry on the search page. *** Resources and other information: * For newcomers who have basic questions about Ethereum, you can find answers by visiting /r/EthereumNoobies or our [Ethereum Education wiki page](https://www.reddit.com/r/ethtrader/wiki/education). * To view live streaming comments for this thread, [click here](https://reddit-stream.com/comments/auto). Account permissions are required to post comments through Reddit-Stream.com. * **The daily thread will no longer be stickied so please remember to upvote it for visibility.** *** Thank you in advance for your participation. Enjoy!

ethtrader

hey newcomers, welcome to the Crypto world : If you HODL'ed and haven't panicked, you're now officially a veteran. if you panic sold, that's ok, that was your crypto lesson. both cases, welcome aboard.

tresjr

I WAITED A YEAR AND 2 MONTHS AND THEY FUCKING DID IT AGAIN

I'm fucking furious, after a year and two months, they did the same shit again. MOASS started this morning and the hedge funds mommy and daddy stepped in to protect them. What other explanation is there for what we just watched happen live?? Shares sold at $275, options going ITM at $510. They did it in broad daylight, right in front of all of us, AGAIN! And we will never get an explanation for it, we will never be told what exactly happened. More importantly, we will never get the tendies that we just missed out on. I could be financially free with just my calls at $510. I'd never sell a share for any less than $69,420,420.69, so don't take that the wrong way. Anyway, I just needed to vent my frustrations. I feel so powerless.

Superstonk

If you’ve got any evidence to prove the price is fake https://fliphtml5.com/bookcase/kosyg https://medium.com/@BraveNewFilms.org/heres-how-to-contact-all-535-members-of-united-states-congress-call-email-tweet-20b8a1c54195 tips@rollingstone.com https://www.rollingstone.com/feature/wall-streets-naked-swindle-194908/ https://www.esma.europa.eu/regulation/post-trading/settlement https://www.sec.gov/whistleblower https://www.dtcc.com/client-center https://www.nasaa.org/contact-your-regulator/ SEC hotline for prevention of share transfers (800) 732-0330 investor.gov | SEC.gov FINRA (301) 590-6500 FINRA.org/Investors NASAA - North American Securities Administrators Association (202) 737-0900 NASAA.org https://www.ftc.gov/faq/consumer-protection/submit-consumer-complaint-ftc https://www.bbb.org/ investorrelations@gamestop.com The IRS takes things like this extremely seriously. If you feel it's right for you, send them a form 3949 informational referral. https://www.irs.gov/individuals/how-do-you-report-suspected-tax-fraud-activity I would personally mark >false/altered documents< in section B, plug in Robinhoods info and print your receipts Chair Gary Gensler 202-551-2100 Chair@sec.gov Allison Herren Lee (202) 551-2800 CommissionerLee@sec.gov https://www.sec.gov/oiea/Complaint.html U.S. Secret Service 245 Murray Ln SW - BLDG T-5, Washington, DC 20223 202-406-5708 https://www.secretservice.gov/contact/field-offices https://www.fbi.gov/tips https://www.consumerfinance.gov/complaint/ "Presidential" financial fraud task forces I found. https://www.fincen.gov/financial-fraud-enforcement-task-force-ffetf https://www.justice.gov/fraudtaskforce https://www.fincen.gov/contact Dave Lauer’s new website https://www.urvin.finance/advocacy?intercom

q16wec

My Portfolio: $13k in dividends per year

I've been investing in dividend growth stocks for 7 years now, and this is my current portfolio. A couple of notes: \- The 13k pay for a around 57% of my expenses. Not quite FI, but getting there. \- I own 73 stocks, which is too high for my taste, so I'm re-balancing to focus on my core stocks \- The portfolio payout ratio is only 39%, based on forward earnings. This is a key metric I focus on. I value strong financials and dividend growth over current yield. ​ https://preview.redd.it/kxndbp7a5gr71.jpg?width=1153&format=pjpg&auto=webp&s=0b3752c1ff016f662bba95a27535669e6b4274be ​ EDIT: Since a lot of you have asked for it, here are all the stocks I own, as well as some I sold. ​ https://preview.redd.it/hvjcr98vdir71.jpg?width=1920&format=pjpg&auto=webp&s=79403e2523711b651efab198a91e6b6f39ad0a2d

dividends

Love this for you! Congrats. I think I'm a value + growth investor at my heart, so it's good to hear these sorts of success stories. Compared to your 7 years in the growth sector I'm a baby fish (>1 year ha!) but good to know that success is very much possible. keep on.

xmblbk

Optus customers

Optus has now sent me an email saying a hacker has stolen a lot of my identity, and now has access to potentially more than 100 points of I.D. - so they could open credit cards etc..does anyone know what steps can i take to protect myself.. or has the train left the station edit 1. Upgrade passwords and upgarde to 2FA 2. Subscribe to equifax (paid service) 3. Check [haveibeenpwned.com](https://haveibeenpwned.com/) (free service) 4. Beware of weird emails and activity 5. consider swapping carrier 6. wait for more information from OPTUS

AusFinance

Does anyone else think Optus should be paying for credit protection on behalf of the millions of customers it just spilled the data of? Lazy investment in cybersecurity practices probably led to this moment, so I think they should take some responsibility here.

6zur5h

TransUnion burying their credit freeze to sell their own credit monitoring product TrueIdentity

I'm not sure where to post this, but noticed something had changed on the TransUnion website about freezing credit this morning when I was giving links to family so they could freeze theirs. I froze my credit the day after news about the Equifax breach broke, and it looks like TransUnion has since changed their site to push people away from freezing their credit in favor for their own product called TrueIdentity (like what Equifax was doing with their TrustedID Premier.) The FTC website links to [this page](http://www.transunion.com/freeze) for freezing your credit with TransUnion. [This is what the website looked before the changes were made on 9/11.](https://web.archive.org/web/20170729070041/https://www.transunion.com/credit-freeze/place-credit-freeze) The instructions on placing a credit freeze were clear and there was no mention of their own TrueIdentity product. If you want to place a credit freeze with TransUnion now: * You have to get through a page of info about credit and fraud, and then the action it tells you to take is to "Lock your credit information by enrolling in TrueIdentity." * The option to freeze your credit is under "About credit freeze", deliberately passive in their use of language * The description about credit freezing is dissuasive: "A credit freeze may be available under your state law" * The link for the credit freeze is also a passive "click here" compared with "by enrolling in TrueIdentity" language used for the link to their own product. * Clicking the link to learn more about credit freeze brings you to [yet another page](https://www.transunion.com/credit-freeze/place-credit-freeze2) that tries to convince you to enroll in their product over placing a credit freeze * After searching through their page of BS, you finally get to the [link to freeze your credit](https://freeze.transunion.com). This is such a blatant attempt by TransUnion to take advantage of the Equifax breach for their own financial gain. It's a shitty thing for TransUnion to do, and people should be aware that they are being led away from putting an actual credit freeze on their account. (Edited for formatting on mobile)

personalfinance

I noticed this too. I didn't realize it's a credit agency prerequisite to be willing to exploit millions of people in their time of need. **Forget the website, just call the TransUnion Freeze hotline 888-909-8872** *Edit: since this blew up* If you can't get through try calling at a weird time when the volume might be low. E.g., 12:30AM Here are the other two credit union freeze hotlines: **Equifax: 1-800-685-1111 (NY residents 1-800-349-9960 and for you Canadians 1-800-465-7166)** **Experian: 1 888 397 3742** While you're at it you might as well opt out of promotional solicitations from credit unions too www.optoutprescreen.com. (Also, thanks for popping my golden cherry, stranger)

n7ns5n

/r/thetagang has doubled in size in the last 2 months, if you're new do yourself a favor and read a bit

Seems like a lot of people have flocked over here from WSB. Thetagang went from being a strategy for building *small* and *consistent* gains, to just being another way of trading options on meme stocks. If you're new and don't understand the basics of how selling options works, you're setting yourself up to lose just as much money as you did when you were buying options. Maybe even more—at least when you buy an option your losses are capped at 100%. I used to read this sub every day because it was a great way to learn more about trading mechanics, greeks, and finding good trade recommendations. Now the top posts are usually people panicking about how their underlying is tanking because they thought selling an option on a WSB stock is the inverse of buying it (spoiler: it's not). If the MODS don't do their jobs to regulate this sub, it's never going to recover. Top posts are often loss porn and stock recommendations based solely on premium. Most upvoted comments are frequently promoting advice that is flat out *wrong* on a basic level. No one reading wikis or learning the basics before they start confidently handing out advice. This is just a short and poorly written rant, so I'll leave it at that.

thetagang

I agree. I recently joined @thetagang thinking it was a good community to share knowledge and all i’ve seen my first week are posts of people making themselves feel better by making jokes and memes about how they are stuck holding the bag or turning into a skeleton waiting to sell CC’s and pictures of their position loses. I was able to find some well written historical articles from thetagang that were helpful.

l64xvw

GME Dedicated Thread - Breaking: CNBC engages in market manipulation - lies about Melvin Capital having already covered positions

Hello all, We are opening this thread so it can be dedicated to talks about the current GME situation. Feel free to discuss. Other newly created GME posts will be removed. Disclaimer: The title was sorely written by me and does not represent the views of Reddit or the /r/stocks subreddit. **Short Interest Update** [Short interest still very high](https://www.reddit.com/r/wallstreetbets/comments/l642ms/updated_jan_27th_short_interest_data_posted_by_s3/) , confirming that Melvin having covered is a lie.

stocks

If CNBC released this statement without appropriate vetting and Melvin's statement ends up being false, two things should happen. First, the SEC should investigate any relationship between CNBC and Melvin. Second, retail investors should absolutely boycott CNBC. The battle on Wall Street between the institutional manipulators and the retail investor may be ongoing, but in the battle for who has more eyeballs, the retailers win hands down. How does CNBC survive on institutional viewers alone.

ms06v6

Curious case of CRED coins usage, is it really BREAD app

Context here: [Spoof on CRED](https://youtu.be/lGmwMHsii04) Note: This post might seem like bit of rant. But I want to know from fellow CRED users if they have been able to use the coins to anything meaningful apart from cashback. I have been using CRED app for almost 2 years now. Till this day I found cashback is the only worthwhile feature. Apart from the miniscule cashback I haven't used my coins on any other rewards. None of the feature rewards offers excite me, as almost all products listed are available at cheaper price directly in market. Imagine sitting with more than 10 lakh worthless coins, it's frustrating to say the least. The MagicPin Vijay Raaz spoof youtube advertisement exposes this aspect of CRED. Edit 27-Apr-2021 : As shared by few here, let's burn all CRED points to contribute to oxygen delivery by Milaap. Hope it reaches properly to the needy.

IndiaInvestments

CRED is too ‘upper classy’ for me to do anything. The D2C products they sell and experiences they market are just not for me as a middle class person. I pay my bills and just get out. It’s an easier way to pay my credit cards from a single place.

ld74ho

SCR.TO - Bill reading day - massive opportunity to get in early before 🚀

1:30pm EST - Private member business - Safe and regulated Sports Betting Act (Canadian politics) https://www.ourcommons.ca/DocumentViewer/en/house/latest/projected-business If this passes, this is going to 🚀 this stock. They have investment from PENN a large gambling company US and they are also owned by one of the largest media companies in Canada.... Do your own DD but this is one to keep your 👁 on or blind faith into before the bill reading ✊🏼

Canadapennystocks

What exactly do you think has led to this recent price surge in the first place? Buy the rumour, sell the news. Just like when marijuana was legalized in Canada, people who didnt realize this concept held the bags for 3 years. I sold yesterday because the bill reading is clearly priced in. Will buy again on a significant pullback.

i2ni04

Does anyone else feel $10M is the new $1M?

At one point, having a million was a very decent chunk, hence the popularity of the term millionaire. But in recent times, due to inflation/QE/whatever, seems like being a decamillionaire is the new millionaire. I was watching Bugs Bunny (don’t judge) and this villain gets a $3M inheritance, implying he’d become wealthy. The episode came out in 1942, I popped in $3M into an inflation calculator and in today’s $s, that is a bit over $45M, which is a bs high amount of money for anyone. All this prompts me to re-question what my FI number is. Thoughts?

fatFIRE

Bugs bunny prompted you to question your FI number is probably where I'd start, sir. Seriously, though, your FI number should be based on your expected expenses over time. If you want bugs bunny or the monopoly man to think you're rich, I don't think financial independence is the term you're looking for.

knrjh0

Are State Owned Companies really bad for the economy, or is it more of a problem of administration?

https://pt.linkedin.com/pulse/estatais-privatizadas-de-cingapura-jean-paulo-silva this post (in portuguese), argues that Singapore maintains a system of "Private" state owned companies, where the companies are administred using the logic of the market, so a better alternative to privatization is just using private logic in the public system?

AskEconomics

State-owned enterprises tend to be less profitable than private enterprises (due a variety of factors, such as their habit of over-employing workers). However, their impact on overall economic growth is more ambiguous. One [study](https://www.ingentaconnect.com/content/mcb/006/1995/00000022/00000003/art00002) looked at public enterprises in the OECD, finding that "the evidence fails to support the hypothesis of a negative relationship between [public enterprises] and economic growth." Similarly, a more recent [study](https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1898677) looked at SOEs in China, and found that while they are less profitable, they also generate positive spillover effects that benefit the overall economy. To quote: > Since these two effects offset each other, the contribution of SOEs to economic growth in China during our sample time frame was not significantly different from that of non-state enterprises. There is also some evidence that SOEs can [improve health](https://journals.sagepub.com/doi/abs/10.1177/0020731419833530) and [reduce inequality](https://www.sciencedirect.com/science/article/abs/pii/S1062940818303681), while privatization is associated with [lower wages](https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3278753#:~:text=Following%20privatization%2C%20wages%20for%20incumbent,to%20within-establishment%20wage%20changes.) (an effect which spills over throughout the labor market). One [meta-analysis](https://onlinelibrary.wiley.com/doi/full/10.1111/apce.12092?casa_token=L-2VjCbz21MAAAAA%3Aj6AElLw46DgBTn3bd3Ld2LGxvdwGPmg2e53zOSD4rSsPvjxOxoG_rdLokLoz2NfocsXZ_K6ONaPvgQHn9Q) from 2015 found that, when these other factors (such as social externalities) are taken into account, "there is no support for the claim that private enterprises have better performance ceteris paribus than public enterprises." As such, determining whether they are "bad for the economy" is a bit more ambiguous than the issue of mere profitability; there are other factors to take into account. Applying market logic and competition to them will likely improve their overall profitability, however. Competition does tend to spur greater efficiency, as a general rule.

hcy9r9

How the TFSA works

(Updated September 5th, 2020) ​ \*Please note that I effective Sept. 14, 2020 I am deactivating my account. This post will remain as a public service; however, I will be unable to reply to further questions. There are two problems: 1. I've contributed to other threads, particularly options, and I'm being downvoted on things that I am correct on by people who obviously don't know anything and are asking questions that are covered in any basic options tutorial, and then get upset when you point out they're wrong. 2. I've managed to attract some unsavoury attention by someone who is clearly trolling the threads and the mods aren't doing anything about it. ​ There's a lot of good, smart, hard-working people here on Reddit but there are also a lot of trolls and people who are obviously very immature, and the mods clearly aren't doing their job. I can't participate in that. ​ # Background ​ **You may have heard about off-shore tax havens of questionable legality where wealthy people invest their money in legal "grey zones" and don't pay any tax, as featured for example, in Netflix's drama, The Laundromat.** ​ **The reality is that the Government of Canada offers 100% tax-free investing throughout your life, with unlimited withdrawals of your contributions and profits, and no limits on how much you can make tax-free. There is also nothing to report to the Canada Revenue Agency. Although Britain has a comparable program, Canada is the only country in the world that offers tax-free investing with this level of power and flexibility.** ​ Thank you fellow Redditors for the wonderful Gold Award and Today I Learned Award! ​ (Unrelated but Important Note: I put a link at the bottom for my margin account explainer. Many people are interested in margin trading but don't understand the math behind margin accounts and cannot find an explanation. If you want to do margin, but don't know how, click on the link.) ​ As a Gen-Xer, I wrote this post with Millennials in mind, many of whom are getting interested in investing in ETFs, individual stocks, and also my personal favourite, options. Your generation is uniquely positioned to take advantage of this extremely powerful program at a relatively young age. But whether you're in your 20's or your 90's, read on! ​ Are TFSAs important? In 2020 Canadians have almost 1 trillion dollars saved up in their TFSAs, so if that doesn't prove that pennies add up to dollars, I don't know what does. The TFSA truly is the Great Canadian Tax Shelter. ​ I will periodically be checking this and adding issues as they arise, to this post. I really appreciate that people are finding this useful. As this post is now fairly complete from a basic mechanics point of view, and some questions are already answered in this post, please be advised that at this stage I cannot respond to questions that are already covered here. If I do not respond to your post, check this post as I may have added the answer to the FAQs at the bottom. ​ # How to Invest in Stocks ​ A lot of people get really excited - for good reason - when they discover that the TFSA allows you to invest in stocks, tax free. I get questions about which stocks to buy. ​ I have made some comments about that throughout this post, however; I can't comprehensively answer that question. Having said that, though, if you're interested in picking your own stocks and want to learn how, I recommmend starting with the following videos: ​ The first is by Peter Lynch, a famous American investor in the 80's who wrote some well-respected books for the general public, like "One Up on Wall Street." The advice he gives is always valid, always works, and that never changes, even with 2020's technology, companies and AI: ​ [https://www.youtube.com/watch?v=cRMpgaBv-U4&t=2256s](https://www.youtube.com/watch?v=cRMpgaBv-U4&t=2256s) ​ ​ The second is a recording of a university lecture given by investment legend Warren Buffett, who expounds on the same principles: ​ [https://www.youtube.com/watch?v=2MHIcabnjrA](https://www.youtube.com/watch?v=2MHIcabnjrA) ​ Please note that I have no connection to whomever posted the videos. ​ # Introduction ​ TFSAs were introduced in 2009 by Stephen Harper's government, to encourage Canadians to save. ​ The effect of the TFSA is that ordinary Canadians don't pay any income or capital gains tax on their securities investments. ​ Initial uptake was slow as the contribution rules take some getting used to, but over time the program became a smash hit with Canadians. There are about 20 million Canadians with TFSAs, so the uptake is about 70%- 80% (as you have to be the age of majority in your province/territory to open a TFSA). ​ # Eligibility to Open a TFSA ​ You must be a Canadian resident with a valid Social Insurance Number to open a TFSA. You must be at the voting age in the province in which you reside in order to open a TFSA, however contribution room begins to accumulate from the year in which you turned 18. You do not have to file a tax return to open a TFSA. You do not need to be a Canadian citizen to open and contribute to a TFSA. No minimum balance is required to open a TFSA. ​ # Where you Can Open a TFSA ​ There are hundreds of financial institutions in Canada that offer the TFSA. There is only one kind of TFSA; however, different institutions offer a different range of financial products. Here are some examples: ​ * The Canadian big 5 bank branches and most other financial institutions offer a TFSA that allows you to buy mutual funds, hold cash, GICs, term deposits, and possibly ETFs. This is a good choice if you want guaranteed returns or diversified investing. * There are a number of on-line banks such as Tangerine, Simplii Financial, Oaken Financial, and many more that offer the TFSA. * The discount DIY brokerage arms of the big 5 banks give you more choices, including stocks, warrants, bonds and options. There are also standalone brokers like IBKR Canada, Questrade, Qtrade, and Virtual Brokers, among others, that offer this. * Some brokerages and financial advisors also offer TFSAs that give you these investment choices, in different formats such as: * Traditional brokerage, where a stockbroker invests your money (BMO Nesbitt Burns, RBC Dominion Securities and others) * Financial advisor who will invest your money according to a plan you put together with the advisor (TSI Network and many others) * "Robo" advisors such as Wealthsimple, RBC InvestEase, BMO SmartFolio, or Wealthbar * BMO's AdviceDirect, which is a semi-directed hybrid between standalone DIY investing and fully-advised investing, where you operate on a DIY basis but have access to a registered investment advisor (a live person) who can give you suggetions and advice. ​ # Insurance ​ Your TFSA may be covered by either CIFP or CDIC insuranceor both. Ask your bank or broker for details. ​ # What You Can Trade and Invest In ​ You can trade the following: ​ * GICs, mutual funds, term deposits * individual common and preferred stocks listed on an "approved exchange" which are the TSX, TSX-V, NASDAQ, NYSE, and about 20 other exchanges worldwide, but not the US OTC pink sheets. * stock-like securities like REITS, ETFs and ETNs, including 2x and 3x leveraged * gold and silver certificates * warrants * cash of many countries (CAD/USD/EUR/GBP/AUD/NZD/JPY/CHF and many others) * government debt of most countries, subsovereigns like Canadian provincial bonds, and debt of most corporations * listed options (both calls and puts) on individual equities, and ETFs and ETNs that trade on the Montreal Exchange or various options exchanges in the USA (the main one being the Chicago Board Options Exchange) and the rest of the word (but see FAQ for details) * gold, silver bullion certificates * shares in certain private companies -- but consult your tax advisor on this ​ # What You Cannot Trade ​ You cannot trade: ​ * futures, including commodity futures, and financial futures such as single stock, index, and interest rate futures * options against futures * contracts for difference (which are big in Europe and the U.K. but AFAIK either not allowed or in very limited usage in the USA and the Canadian provinces and territories) * foreign exchange forward contracts (aka spot forex) * option spread positions (see FAQ for details) * crypto (bitcoin, ethereum etc.) * collateralized debt obligations and related securities (e.g. mortgages packaged as tradeable securities) ​ # Borrowing to Contribute You can borrow money to make your TFSA contributions, e.g. against a HELOC or personal line of credit, or other source of credit; obviously you are then obligated to pay back the lender. A TFSA is not a margin account, however, therefore you cannot borrow against securities in a TFSA. ​ # Rules for Contribution Room ​ Starting at 18 you get a certain amount of contribution room. ​ According to the CRA: **You will accumulate TFSA contribution room for each year even if you do not file an Income Tax and Benefit Return or open a TFSA**. The annual TFSA dollar limit for the years **2009 to** **2012** was **$5,000**. The annual TFSA dollar limit for the years **2013** and **2014** was **$5,500**. The annual TFSA dollar limit for the year **2015** was **$10,000.** The annual TFSA dollar limit for the years **2016 to 2018** was **$5,500**. The annual TFSA dollar limit for the year **2019** is $**6,000**. The TFSA annual room limit will be indexed to inflation and rounded to the nearest $500. Investment income earned by, and changes in the value of TFSA investments will not affect your TFSA contribution room for the current or future years. ​ [https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/tax-free-savings-account/contributions.html](https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/tax-free-savings-account/contributions.html) If you don't use the room, it accumulates indefinitely. ​ Trades you make in a TFSA are truly tax free. But you cannot claim the dividend tax credit and you cannot claim losses in a TFSA against capital gains whether inside or outside of the TFSA. So do make money and don't lose money in a TFSA. You are stuck with the 15% withholding tax on U.S. dividend distributions unlike the RRSP, due to U.S. tax rules, but you do not pay any capital gains on sale of U.S. shares. ​ You can withdraw \*both\* contributions \*and\* capital gains, no matter how much, at any time, without penalty. The amount of the withdrawal (contributions+gains) converts into contribution room in the \*next\* calendar year. So if you put the withdrawn funds back in the same calendar year you take them out, that burns up your total accumulated contribution room to the extent of the amount that you re-contribute in the same calendar year. ​ # Examples ​ E.g. Say you turned 18 in 2016 in Alberta where the age of majority is 18. It is now sometime in 2020. You have never contributed to a TFSA. You now have $5,500+$5,500+$5,500+$6,000+$6,000 = $28,500 of room in 2020. In 2020 you manage to put $20,000 in to your TFSA and you buy Canadian Megacorp common shares. You now have $8,500 of room remaining in 2020. ​ Sometime in 2021 - it doesn't matter when in 2021 - your shares go to $100K due to the success of the Canadian Megacorp. You also have $6,000 worth of room for 2021 as set by the government. You therefore have $8,500 carried over from 2020+$6,000 = $14,500 of room in 2021. ​ In 2021 you sell the shares and pull out the $100K. This amount is tax-free and does not even have to be reported. You can do whatever you want with it. ​ But: if you put it back in 2021 you will over-contribute by $100,000 - $14,500 = $85,500 and incur a penalty. ​ But if you wait until 2022 you will have $14,500 unused contribution room carried forward from 2021, another $6,000 for 2022, and $100,000 carried forward from the withdrawal 2021, so in 2022 you will have $14,500+$6,000+$100,000 = $120,500 of contribution room. ​ This means that if you choose, you can put the $100,000 back in in 2022 tax-free and still have $20,500 left over. If you do not put the money back in 2021, then in 2022 you will have $120,500+$6,000 = $126,500 of contribution room. ​ There is no age limit on how old you can be to contribute, no limit on how much money you can make in the TFSA, and if you do not use the room it keeps carrying forward forever. ​ Just remember the following formula: ​ This year's contribution room = (A) unused contribution room carried forward from last year + (B) contribution room provided by the government for this year + (C) total withdrawals from last year. ​ EXAMPLE 1: ​ Say in 2020 you never contributed to a TFSA but you were 18 in 2009. You have $69,500 of unused room (see above) in 2020 which accumulated from 2009-2020. In 2020 you contribute $50,000, leaving $19,500 contribution room unused for 2020. You buy $50,000 worth of stock. The next day, also in 2020, the stock doubles and it's worth $100,000. Also in 2020 you sell the stock and withdraw $100,000, tax-free. ​ You continue to trade stocks within your TFSA, and hopefully grow your TFSA in 2020, but you make no further contributions or withdrawals in 2020. ​ ​ The question is, How much room will you have in 2021? Answer: In the year 2021, the following applies: (A) Unused contribution room carried forward from last year, 2020: $19,500 (B) Contribution room provided by government for this year, 2021: $6,000 (C) Total withdrawals from last year, 2020: $100,000 ​ Total contribution room for 2021 = $19,500+6,000+100,000 = $125,500. ​ EXAMPLE 2: Say between 2020 and 2021 you decided to buy a tax-free car (well you're still stuck with the GST/PST/HST/QST but you get the picture) so you went to the dealer and spent $25,000 of the $100,000 you withdrew in 2020. You now have a car and $75,000 still burning a hole in your pocket. Say in early 2021 you re-contribute the $75,000 you still have left over, to your TFSA. However, in mid-2021 you suddenly need $75,000 because of an emergency so you pull the $75,000 back out. But then a few weeks later, it turns out that for whatever reason you don't need it after all so you decide to put the $75,000 back into the TFSA, also in 2021. You continue to trade inside your TFSA but make no further withdrawals or contributions. ​ How much room will you have in 2022? Answer: In the year 2022, the following applies: ​ (A) Unused contribution room carried forward from last year, 2021: $125,500 - $75,000 - $75,000 = -$24,500. ​ Already you have a problem. You have over-contributed in 2021. You will be assessed a penalty on the over-contribution! (penalty = 1% a month). ​ But if you waited until 2022 to re-contribute the $75,000 you pulled out for the emergency..... ​ In the year 2022, the following would apply: (A) Unused contribution room carried forward from last year, 2021: $125,500 -$75,000 =$50,500. (B) Contribution room provided by government for this year, 2022: $6,000 (C) Total withdrawals from last year, 2020: $75,000 ​ Total contribution room for 2022 = $50,500 + $6,000 + $75,000 = $131,500. ...And...re-contributing that $75,000 that was left over from your 2021 emergency that didn't materialize, you still have $131,500-$75,000 = $56,500 of contribution room left in 2022. ​ # For a more comprehensive discussion, please see the CRA info link below. # FAQs That Have Arisen in the Discussion and Other Potential Questions: ​ ​ 1. United States citizens who are resident in Canada: U.S. citizens residing in Canada are in a unique situation because the U.S. taxes on the basis of citizenship, whereas Canada taxes on the basis of residency. Also, the TFSA is not treated by the Canada-U.S. tax treaty in the same way as the RRSP. Because of the way these rules impact on your personal circumstances, it may or may not be advisable for you to open a TFSA. Do not rely on advice randomly given on Reddit for this. Consult with a tax lawyer or accountant for advice. 2. Equity and ETF/ETN Options in a TFSA: can I get leverage? Yes. Options are an excellent way to get high leverage in a TFSA. You can buy puts and calls in your TFSA and you only need to have the cash to pay the premium and broker commissions. Example: if XYZ is trading at $70, and you want to buy the $90 call with 6 months to expiration, and the call is trading at $2.50, you only need to have $250 in your account, per option contract, and if you are dealing with BMO IL for example you need $9.95 + $1.25/contract which is what they charge in commission. Of course, any profits on closing your position are tax-free. You only need the full value of the strike in your account if you want to exercise your option instead of selling it. Please note: this is not meant to be an options tutorial; see the Montreal Exchange's Equity Options Reference Manual if you have questions on how options work. 3. Equity and ETF/ETN Options in a TFSA: what is ok and not ok? Long puts and calls are allowed. Covered calls are allowed, but cash-secured puts are not allowed. All other option trades are also not allowed. Basically the rule is, if the trade is not a covered call and it either requires being short an option or short the stock, you can't do it in a TFSA. 4. Live in a province where the voting age is 19 so I can't open a TFSA until I'm 19, when does my contribution room begin? Your contribution room begins to accumulate at 18, so if you live in province where the age of majority is 19, you'll get the room carried forward from the year you turned 18. 5. If I turn 18 on December 31, do I get the contribution room just for that day or for the whole year? The whole year. 6. Do commissions paid on share transactions count as withdrawals? Unfortunately, no. If you contribute $2,000 cash and you buy $1,975 worth of stock and pay $25 in commission, the $25 does not count as a withdrawal. It is the same as if you lost money in the TFSA. 7. How much room do I have? If your broker records are complete, you can do a spreadsheet. The other thing you can do is call the CRA and they will tell you. 8. TFSA-->TFSA direct transfer from one institution to another: this has no impact on your contributions or withdrawals as it counts as neither. 9. More than 1 TFSA: you can have as many as you want but your total contribution room does not increase or decrease depending on how many accounts you have. 10. Withdrawals that convert into contribution room in the next year. Do they carry forward indefinitely if not used in the next year? Answer :yes. 11. Do I have to declare my profits, withdrawals and contributions? No. Your bank or broker interfaces directly with the CRA on this. There are no declarations to make. 12. Risky investments - smart? In a TFSA you want always to make money, because you pay no tax, and you want never to lose money, because you cannot claim the loss against your income from your job. If in year X you have $5,000 of contribution room and put it into a TFSA and buy Canadian Speculative Corp. and due to the failure of the Canadian Speculative Corp. it goes to zero, two things happen. One, you burn up that contribution room and you have to wait until next year for the government to give you more room. Two, you can't claim the $5,000 loss against your employment income or investment income or capital gains like you could in a non-registered account. So remember Buffett's rule #1: Do not lose money. Rule #2 being don't forget the first rule. TFSA's are absolutely tailor-made for Graham-Buffett value investing or for diversified ETF or mutual fund investing, but you don't want to buy a lot of small specs because you don't get the tax loss. 13. Moving to/from Canada/residency. You must be a resident of Canada and 18 years old with a valid SIN to open a TFSA. Consult your tax advisor on whether your circumstances make you a resident for tax purposes. Since 2009, your TFSA contribution room accumulates every year, if at any time in the calendar year you are 18 years of age or older and a resident of Canada. Note: If you move to another country, you can STILL trade your TFSA online from your other country and keep making money within the account tax-free. You can withdraw money and **Canada** will not tax you. But you have to get tax advice in your country as to what they do. There restrictions on contributions for non-residents. See "non residents of Canada:" [https://www.canada.ca/content/dam/cra-arc/formspubs/pub/rc4466/rc4466-19e.pdf](https://www.canada.ca/content/dam/cra-arc/formspubs/pub/rc4466/rc4466-19e.pdf) 14. The U.S. withholding tax. Dividends paid by U.S.-domiciled companies are subject to a 15% U.S. withholding tax. Your broker does this automatically at the time of the dividend payment. So if your stock pays a $100 USD dividend, you only get $85 USD in your broker account and in your statement the broker will have a note saying 15% U.S. withholding tax. I do not know under what circumstances if any it is possible to get the withheld amount. Normally it is not, but consult a tax professional. 15. The U.S. withholding tax does not apply to capital gains. So if you buy $5,000 USD worth of Apple and sell it for $7,000 USD, you get the full $2,000 USD gain automatically. 16. Tax-Free Leverage. Leverage in the TFSA is effectively equal to your tax rate \* the capital gains inclusion rate because you're not paying tax. So if you're paying 25% on average in income tax, and the capital gains contribution rate is 50%, the TFSA is like having 12.5%, no margin call leverage costing you 0% and that also doesn't magnify your losses. 17. Margin accounts. These accounts allow you to borrow money from your broker to buy stocks. TFSAs are not margin accounts. Nothing stopping you from borrowing from other sources (such as borrowing cash against your stocks in an actual margin account, or borrowing cash against your house in a HELOC or borrowing cash against your promise to pay it back as in a personal LOC) to fund a TFSA if that is your decision, bearing in mind the risks, but a TFSA is not a margin account. Consider options if you want leverage that you can use in a TFSA, without borrowing money. 18. Dividend Tax Credit on Canadian Companies. Remember, dividends paid into the TFSA are not eligible to be claimed for the credit, on the rationale that you already got a tax break. 19. FX risk. The CRA allows you to contribute and withdraw foreign currency from the TFSA but the contribution/withdrawal accounting is done in CAD. So if you contribute $10,000 USD into your TFSA and withdraw $15,000 USD, and the CAD is trading at 70 cents USD when you contribute and $80 cents USD when you withdraw, the CRA will treat it as if you contributed $14,285.71 CAD and withdrew $18,75.00 CAD. 20. OTC (over-the-counter stocks). You can only buy stocks if they are listed on an approved exchange ("approved exchange" = TSX, TSX-V, NYSE, NASDAQ and about 25 or so others). The U.S. pink sheets "over-the-counter" market is an example of a place where you can buy stocks, that is not an approved exchange, therefore you can't buy these penny stocks. I have however read that the CRA make an exception for a stock traded over the counter if it has a dual listing on an approved exchange. You should check that with a tax lawyer or accountant though. 21. The RRSP. This is another great tax shelter. Tax shelters in Canada are either **deferrals** or in a few cases - such as the TFSA - outright tax breaks, The RRSP is an example of a deferral. The RRSP allows you to deduct your contributions from your income, which the TFSA does not allow. This deduction is a huge advantage if you earn a lot of money. The RRSP has tax consequences for withdrawing money whereas the TFSA does not. Withdrawals from the RRSP are taxable whereas they are obviously not in a TFSA. You probably want to start out with a TFSA and maintain and grow that all your life. It is a good idea to start contributing to an RRSP when you start working because you get the tax deduction, and then you can use the amount of the deduction to contribute to your TFSA. There are certain rules that claw back your annual contribution room into an RRSP if you contribute to a pension. See your tax advisor. 22. Pensions. If I contribute to a pension does that claw back my TFSA contribution room or otherwise affect my TFSA in any way? Answer: No. 23. The $10K contribution limit for 2015. This was PM Harper's pledge. In 2015 the Conservative government changed the rules to make the annual government allowance $10,000 per year forever. Note: withdrawals still converted into contribution room in the following year - that did not change. When the Liberals came into power they switched the program back for 2016 to the original Harper rules and have kept the original Harper rules since then. That is why there is the $10,000 anomaly of 2015. The original Harper rules (which, again, are in effect now) called for $500 increments to the annual government allowance as and when required to keep up with inflation, based on the BofC's Consumer Price Index (CPI). Under the new Harper rules, it would have been $10,000 flat forever. Which you prefer depends on your politics but the TFSA program is massively popular with Canadians. Assuming 1.6% annual CPI inflation then the annual contribution room will hit $10,000 in 2052 under the present rules. Note: the Bank of Canada does an excellent and informative job of explaining inflation and the CPI at their website. 24. Losses in a TFSA - you cannot claim a loss in a TFSA against income. So in a TFSA you always want to make money and never want to lose money. A few ppl here have asked if you are losing money on your position in a TFSA can you transfer it in-kind to a cash account and claim the loss. I would expect no as I cannot see how in view of the fact that TFSA losses can't be claimed, that the adjusted cost base would somehow be the cost paid in the TFSA. But I'm not a tax lawyer/accountant. You should consult a tax professional. 25. Transfers in-kind to the TFSA and the the superficial loss rule. You can transfer securities (shares etc.) "in-kind," meaning, directly, from an unregistered account to the TFSA. If you do that, the CRA considers that you "disposed" of, meaning, equivalent to having sold, the shares in the unregistered account and then re-purchased them at the same price in the TFSA. The CRA considers that you did this even though the broker transfers the shares directly in the the TFSA. The superficial loss rule, which means that you cannot claim a loss for a security re-purchased within 30 days of sale, applies. So if you buy something for $20 in your unregistered account, and it's trading for $25 when you transfer it in-kind into the TFSA, then you have a deemed disposition with a capital gain of $5. But it doesn't work the other way around due to the superficial loss rule. If you buy it for $20 in the unregistered account, and it's trading at $15 when you transfer it in-kind into the TFSA, the superficial loss rule prevents you from claiming the loss because it is treated as having been sold in the unregistered account and immediately bought back in the TFSA. 26. Day trading/swing trading. It is possible for the CRA to try to tax your TFSA on the basis of "advantage." The one reported decision I'm aware of (emphasis on I'm aware of) is from B.C. where a woman was doing "swap transactions" in her TFSA which were not explicitly disallowed but the court rules that they were an "advantage" in certain years and liable to taxation. Swaps were subsequently banned. I'm not sure what a swap is exactly but it's not that someone who is simply making contributions according to the above rules would run afoul of. The CRA from what I understand doesn't care how much money you make in the TFSA, they care how you made it. So if you're logged on to your broker 40 hours a week and trading all day every day they might take the position that you found a way to work a job 40 hours a week and not pay any tax on the money you make, which they would argue is an "advantage," although there are arguments against that. This is not legal advice, just information. 27. The U.S. Roth IRA. This is a U.S. retirement savings tax shelter that is superficially similar to the TFSA but it has a number of limitations, including lack of cumulative contribution room, no ability for withdrawals to convert into contribution room in the following year, complex rules on who is eligible to contribute, limits on how much you can invest based on your income, income cutoffs on whether you can even use the Roth IRA at all, age limits that govern when and to what extent you can use it, and strict restrictions on reasons to withdraw funds prior to retirement (withdrawals prior to retirement can only be used to pay for private medical insurance, unpaid medical bills, adoption/childbirth expenses, certain educational expenses). The TFSA is totally unlike the Roth IRA in that it has none of these restrictions, therefore, the Roth IRA is not in any reasonable sense a valid comparison. The TFSA was modeled after the U.K. Investment Savings Account, which is the only comparable program to the TFSA. 28. The UK Investment Savings Account. This is what the TFSA was based off of. Main difference is that the UK uses a 20,000 pound annual contribution allowance, use-it-or-lose-it. There are several different flavours of ISA, and some do have a limited recontribution feature but not to the extent of the TFSA. 29. Is it smart to overcontribute to buy a really hot stock and just pay the 1% a month overcontribution penalty? If the CRA believes you made the overcontribution deliberately the penalty is 100% of the gains on the overcontribution, meaning, you can keep the overcontribution, or the loss, but the CRA takes the profit. 30. Speculative stocks-- are they ok? There is no such thing as a "speculative stock." That term is not used by the CRA. Either the stock trades on an approved exchange or it doesn't. So if a really blue chip stock, the most stable company in the world, trades on an exchange that is not approved, you can't buy it in a TFSA. If a really speculative gold mining stock in Busang, Indonesia that has gone through the roof due to reports of enormous amounts of gold, but their geologist somehow just mysteriously fell out of a helicopter into the jungle and maybe there's no gold there at all, but it trades on an approved exchange, it is fine to buy it in a TFSA. Of course the risk of whether it turns out to be a good investment or not, is on you. Remember, you're working for your money anyway, so if you can get free money from the government -- you should take it! Follow the rules because Canadians have ended up with a tax bill for not understanding the TFSA rules. Appreciate the feedback everyone. Glad this basic post has been useful for many. The CRA does a good job of explaining TFSAs in detail at [https://www.canada.ca/content/dam/cra-arc/formspubs/pub/rc4466/rc4466-19e.pdf](https://www.canada.ca/content/dam/cra-arc/formspubs/pub/rc4466/rc4466-19e.pdf) ​ # Unrelated but of Interest: The Margin Account # **Note: if you are interested in how margin accounts work, I refer you to my post on margin accounts, where I use a straightforward explanation of the math behind margin accounts to try and give readers the confidence that they understand this powerful leveraging tool.** ​ ## [How Margin Loans Work - a Primer](https://www.reddit.com/r/CanadianInvestor/comments/hbskjb/how_margin_loans_work_a_primer/)

CanadianInvestor

I just realized the other month that the money in my tfsa isn't doing anything. No banker I've dealt with has ever told me that I can invest it. Just opened up a QuestTrade account and transferred everything!

hcy9r9

How the TFSA works

(Updated September 5th, 2020) ​ \*Please note that I effective Sept. 14, 2020 I am deactivating my account. This post will remain as a public service; however, I will be unable to reply to further questions. There are two problems: 1. I've contributed to other threads, particularly options, and I'm being downvoted on things that I am correct on by people who obviously don't know anything and are asking questions that are covered in any basic options tutorial, and then get upset when you point out they're wrong. 2. I've managed to attract some unsavoury attention by someone who is clearly trolling the threads and the mods aren't doing anything about it. ​ There's a lot of good, smart, hard-working people here on Reddit but there are also a lot of trolls and people who are obviously very immature, and the mods clearly aren't doing their job. I can't participate in that. ​ # Background ​ **You may have heard about off-shore tax havens of questionable legality where wealthy people invest their money in legal "grey zones" and don't pay any tax, as featured for example, in Netflix's drama, The Laundromat.** ​ **The reality is that the Government of Canada offers 100% tax-free investing throughout your life, with unlimited withdrawals of your contributions and profits, and no limits on how much you can make tax-free. There is also nothing to report to the Canada Revenue Agency. Although Britain has a comparable program, Canada is the only country in the world that offers tax-free investing with this level of power and flexibility.** ​ Thank you fellow Redditors for the wonderful Gold Award and Today I Learned Award! ​ (Unrelated but Important Note: I put a link at the bottom for my margin account explainer. Many people are interested in margin trading but don't understand the math behind margin accounts and cannot find an explanation. If you want to do margin, but don't know how, click on the link.) ​ As a Gen-Xer, I wrote this post with Millennials in mind, many of whom are getting interested in investing in ETFs, individual stocks, and also my personal favourite, options. Your generation is uniquely positioned to take advantage of this extremely powerful program at a relatively young age. But whether you're in your 20's or your 90's, read on! ​ Are TFSAs important? In 2020 Canadians have almost 1 trillion dollars saved up in their TFSAs, so if that doesn't prove that pennies add up to dollars, I don't know what does. The TFSA truly is the Great Canadian Tax Shelter. ​ I will periodically be checking this and adding issues as they arise, to this post. I really appreciate that people are finding this useful. As this post is now fairly complete from a basic mechanics point of view, and some questions are already answered in this post, please be advised that at this stage I cannot respond to questions that are already covered here. If I do not respond to your post, check this post as I may have added the answer to the FAQs at the bottom. ​ # How to Invest in Stocks ​ A lot of people get really excited - for good reason - when they discover that the TFSA allows you to invest in stocks, tax free. I get questions about which stocks to buy. ​ I have made some comments about that throughout this post, however; I can't comprehensively answer that question. Having said that, though, if you're interested in picking your own stocks and want to learn how, I recommmend starting with the following videos: ​ The first is by Peter Lynch, a famous American investor in the 80's who wrote some well-respected books for the general public, like "One Up on Wall Street." The advice he gives is always valid, always works, and that never changes, even with 2020's technology, companies and AI: ​ [https://www.youtube.com/watch?v=cRMpgaBv-U4&t=2256s](https://www.youtube.com/watch?v=cRMpgaBv-U4&t=2256s) ​ ​ The second is a recording of a university lecture given by investment legend Warren Buffett, who expounds on the same principles: ​ [https://www.youtube.com/watch?v=2MHIcabnjrA](https://www.youtube.com/watch?v=2MHIcabnjrA) ​ Please note that I have no connection to whomever posted the videos. ​ # Introduction ​ TFSAs were introduced in 2009 by Stephen Harper's government, to encourage Canadians to save. ​ The effect of the TFSA is that ordinary Canadians don't pay any income or capital gains tax on their securities investments. ​ Initial uptake was slow as the contribution rules take some getting used to, but over time the program became a smash hit with Canadians. There are about 20 million Canadians with TFSAs, so the uptake is about 70%- 80% (as you have to be the age of majority in your province/territory to open a TFSA). ​ # Eligibility to Open a TFSA ​ You must be a Canadian resident with a valid Social Insurance Number to open a TFSA. You must be at the voting age in the province in which you reside in order to open a TFSA, however contribution room begins to accumulate from the year in which you turned 18. You do not have to file a tax return to open a TFSA. You do not need to be a Canadian citizen to open and contribute to a TFSA. No minimum balance is required to open a TFSA. ​ # Where you Can Open a TFSA ​ There are hundreds of financial institutions in Canada that offer the TFSA. There is only one kind of TFSA; however, different institutions offer a different range of financial products. Here are some examples: ​ * The Canadian big 5 bank branches and most other financial institutions offer a TFSA that allows you to buy mutual funds, hold cash, GICs, term deposits, and possibly ETFs. This is a good choice if you want guaranteed returns or diversified investing. * There are a number of on-line banks such as Tangerine, Simplii Financial, Oaken Financial, and many more that offer the TFSA. * The discount DIY brokerage arms of the big 5 banks give you more choices, including stocks, warrants, bonds and options. There are also standalone brokers like IBKR Canada, Questrade, Qtrade, and Virtual Brokers, among others, that offer this. * Some brokerages and financial advisors also offer TFSAs that give you these investment choices, in different formats such as: * Traditional brokerage, where a stockbroker invests your money (BMO Nesbitt Burns, RBC Dominion Securities and others) * Financial advisor who will invest your money according to a plan you put together with the advisor (TSI Network and many others) * "Robo" advisors such as Wealthsimple, RBC InvestEase, BMO SmartFolio, or Wealthbar * BMO's AdviceDirect, which is a semi-directed hybrid between standalone DIY investing and fully-advised investing, where you operate on a DIY basis but have access to a registered investment advisor (a live person) who can give you suggetions and advice. ​ # Insurance ​ Your TFSA may be covered by either CIFP or CDIC insuranceor both. Ask your bank or broker for details. ​ # What You Can Trade and Invest In ​ You can trade the following: ​ * GICs, mutual funds, term deposits * individual common and preferred stocks listed on an "approved exchange" which are the TSX, TSX-V, NASDAQ, NYSE, and about 20 other exchanges worldwide, but not the US OTC pink sheets. * stock-like securities like REITS, ETFs and ETNs, including 2x and 3x leveraged * gold and silver certificates * warrants * cash of many countries (CAD/USD/EUR/GBP/AUD/NZD/JPY/CHF and many others) * government debt of most countries, subsovereigns like Canadian provincial bonds, and debt of most corporations * listed options (both calls and puts) on individual equities, and ETFs and ETNs that trade on the Montreal Exchange or various options exchanges in the USA (the main one being the Chicago Board Options Exchange) and the rest of the word (but see FAQ for details) * gold, silver bullion certificates * shares in certain private companies -- but consult your tax advisor on this ​ # What You Cannot Trade ​ You cannot trade: ​ * futures, including commodity futures, and financial futures such as single stock, index, and interest rate futures * options against futures * contracts for difference (which are big in Europe and the U.K. but AFAIK either not allowed or in very limited usage in the USA and the Canadian provinces and territories) * foreign exchange forward contracts (aka spot forex) * option spread positions (see FAQ for details) * crypto (bitcoin, ethereum etc.) * collateralized debt obligations and related securities (e.g. mortgages packaged as tradeable securities) ​ # Borrowing to Contribute You can borrow money to make your TFSA contributions, e.g. against a HELOC or personal line of credit, or other source of credit; obviously you are then obligated to pay back the lender. A TFSA is not a margin account, however, therefore you cannot borrow against securities in a TFSA. ​ # Rules for Contribution Room ​ Starting at 18 you get a certain amount of contribution room. ​ According to the CRA: **You will accumulate TFSA contribution room for each year even if you do not file an Income Tax and Benefit Return or open a TFSA**. The annual TFSA dollar limit for the years **2009 to** **2012** was **$5,000**. The annual TFSA dollar limit for the years **2013** and **2014** was **$5,500**. The annual TFSA dollar limit for the year **2015** was **$10,000.** The annual TFSA dollar limit for the years **2016 to 2018** was **$5,500**. The annual TFSA dollar limit for the year **2019** is $**6,000**. The TFSA annual room limit will be indexed to inflation and rounded to the nearest $500. Investment income earned by, and changes in the value of TFSA investments will not affect your TFSA contribution room for the current or future years. ​ [https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/tax-free-savings-account/contributions.html](https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/tax-free-savings-account/contributions.html) If you don't use the room, it accumulates indefinitely. ​ Trades you make in a TFSA are truly tax free. But you cannot claim the dividend tax credit and you cannot claim losses in a TFSA against capital gains whether inside or outside of the TFSA. So do make money and don't lose money in a TFSA. You are stuck with the 15% withholding tax on U.S. dividend distributions unlike the RRSP, due to U.S. tax rules, but you do not pay any capital gains on sale of U.S. shares. ​ You can withdraw \*both\* contributions \*and\* capital gains, no matter how much, at any time, without penalty. The amount of the withdrawal (contributions+gains) converts into contribution room in the \*next\* calendar year. So if you put the withdrawn funds back in the same calendar year you take them out, that burns up your total accumulated contribution room to the extent of the amount that you re-contribute in the same calendar year. ​ # Examples ​ E.g. Say you turned 18 in 2016 in Alberta where the age of majority is 18. It is now sometime in 2020. You have never contributed to a TFSA. You now have $5,500+$5,500+$5,500+$6,000+$6,000 = $28,500 of room in 2020. In 2020 you manage to put $20,000 in to your TFSA and you buy Canadian Megacorp common shares. You now have $8,500 of room remaining in 2020. ​ Sometime in 2021 - it doesn't matter when in 2021 - your shares go to $100K due to the success of the Canadian Megacorp. You also have $6,000 worth of room for 2021 as set by the government. You therefore have $8,500 carried over from 2020+$6,000 = $14,500 of room in 2021. ​ In 2021 you sell the shares and pull out the $100K. This amount is tax-free and does not even have to be reported. You can do whatever you want with it. ​ But: if you put it back in 2021 you will over-contribute by $100,000 - $14,500 = $85,500 and incur a penalty. ​ But if you wait until 2022 you will have $14,500 unused contribution room carried forward from 2021, another $6,000 for 2022, and $100,000 carried forward from the withdrawal 2021, so in 2022 you will have $14,500+$6,000+$100,000 = $120,500 of contribution room. ​ This means that if you choose, you can put the $100,000 back in in 2022 tax-free and still have $20,500 left over. If you do not put the money back in 2021, then in 2022 you will have $120,500+$6,000 = $126,500 of contribution room. ​ There is no age limit on how old you can be to contribute, no limit on how much money you can make in the TFSA, and if you do not use the room it keeps carrying forward forever. ​ Just remember the following formula: ​ This year's contribution room = (A) unused contribution room carried forward from last year + (B) contribution room provided by the government for this year + (C) total withdrawals from last year. ​ EXAMPLE 1: ​ Say in 2020 you never contributed to a TFSA but you were 18 in 2009. You have $69,500 of unused room (see above) in 2020 which accumulated from 2009-2020. In 2020 you contribute $50,000, leaving $19,500 contribution room unused for 2020. You buy $50,000 worth of stock. The next day, also in 2020, the stock doubles and it's worth $100,000. Also in 2020 you sell the stock and withdraw $100,000, tax-free. ​ You continue to trade stocks within your TFSA, and hopefully grow your TFSA in 2020, but you make no further contributions or withdrawals in 2020. ​ ​ The question is, How much room will you have in 2021? Answer: In the year 2021, the following applies: (A) Unused contribution room carried forward from last year, 2020: $19,500 (B) Contribution room provided by government for this year, 2021: $6,000 (C) Total withdrawals from last year, 2020: $100,000 ​ Total contribution room for 2021 = $19,500+6,000+100,000 = $125,500. ​ EXAMPLE 2: Say between 2020 and 2021 you decided to buy a tax-free car (well you're still stuck with the GST/PST/HST/QST but you get the picture) so you went to the dealer and spent $25,000 of the $100,000 you withdrew in 2020. You now have a car and $75,000 still burning a hole in your pocket. Say in early 2021 you re-contribute the $75,000 you still have left over, to your TFSA. However, in mid-2021 you suddenly need $75,000 because of an emergency so you pull the $75,000 back out. But then a few weeks later, it turns out that for whatever reason you don't need it after all so you decide to put the $75,000 back into the TFSA, also in 2021. You continue to trade inside your TFSA but make no further withdrawals or contributions. ​ How much room will you have in 2022? Answer: In the year 2022, the following applies: ​ (A) Unused contribution room carried forward from last year, 2021: $125,500 - $75,000 - $75,000 = -$24,500. ​ Already you have a problem. You have over-contributed in 2021. You will be assessed a penalty on the over-contribution! (penalty = 1% a month). ​ But if you waited until 2022 to re-contribute the $75,000 you pulled out for the emergency..... ​ In the year 2022, the following would apply: (A) Unused contribution room carried forward from last year, 2021: $125,500 -$75,000 =$50,500. (B) Contribution room provided by government for this year, 2022: $6,000 (C) Total withdrawals from last year, 2020: $75,000 ​ Total contribution room for 2022 = $50,500 + $6,000 + $75,000 = $131,500. ...And...re-contributing that $75,000 that was left over from your 2021 emergency that didn't materialize, you still have $131,500-$75,000 = $56,500 of contribution room left in 2022. ​ # For a more comprehensive discussion, please see the CRA info link below. # FAQs That Have Arisen in the Discussion and Other Potential Questions: ​ ​ 1. United States citizens who are resident in Canada: U.S. citizens residing in Canada are in a unique situation because the U.S. taxes on the basis of citizenship, whereas Canada taxes on the basis of residency. Also, the TFSA is not treated by the Canada-U.S. tax treaty in the same way as the RRSP. Because of the way these rules impact on your personal circumstances, it may or may not be advisable for you to open a TFSA. Do not rely on advice randomly given on Reddit for this. Consult with a tax lawyer or accountant for advice. 2. Equity and ETF/ETN Options in a TFSA: can I get leverage? Yes. Options are an excellent way to get high leverage in a TFSA. You can buy puts and calls in your TFSA and you only need to have the cash to pay the premium and broker commissions. Example: if XYZ is trading at $70, and you want to buy the $90 call with 6 months to expiration, and the call is trading at $2.50, you only need to have $250 in your account, per option contract, and if you are dealing with BMO IL for example you need $9.95 + $1.25/contract which is what they charge in commission. Of course, any profits on closing your position are tax-free. You only need the full value of the strike in your account if you want to exercise your option instead of selling it. Please note: this is not meant to be an options tutorial; see the Montreal Exchange's Equity Options Reference Manual if you have questions on how options work. 3. Equity and ETF/ETN Options in a TFSA: what is ok and not ok? Long puts and calls are allowed. Covered calls are allowed, but cash-secured puts are not allowed. All other option trades are also not allowed. Basically the rule is, if the trade is not a covered call and it either requires being short an option or short the stock, you can't do it in a TFSA. 4. Live in a province where the voting age is 19 so I can't open a TFSA until I'm 19, when does my contribution room begin? Your contribution room begins to accumulate at 18, so if you live in province where the age of majority is 19, you'll get the room carried forward from the year you turned 18. 5. If I turn 18 on December 31, do I get the contribution room just for that day or for the whole year? The whole year. 6. Do commissions paid on share transactions count as withdrawals? Unfortunately, no. If you contribute $2,000 cash and you buy $1,975 worth of stock and pay $25 in commission, the $25 does not count as a withdrawal. It is the same as if you lost money in the TFSA. 7. How much room do I have? If your broker records are complete, you can do a spreadsheet. The other thing you can do is call the CRA and they will tell you. 8. TFSA-->TFSA direct transfer from one institution to another: this has no impact on your contributions or withdrawals as it counts as neither. 9. More than 1 TFSA: you can have as many as you want but your total contribution room does not increase or decrease depending on how many accounts you have. 10. Withdrawals that convert into contribution room in the next year. Do they carry forward indefinitely if not used in the next year? Answer :yes. 11. Do I have to declare my profits, withdrawals and contributions? No. Your bank or broker interfaces directly with the CRA on this. There are no declarations to make. 12. Risky investments - smart? In a TFSA you want always to make money, because you pay no tax, and you want never to lose money, because you cannot claim the loss against your income from your job. If in year X you have $5,000 of contribution room and put it into a TFSA and buy Canadian Speculative Corp. and due to the failure of the Canadian Speculative Corp. it goes to zero, two things happen. One, you burn up that contribution room and you have to wait until next year for the government to give you more room. Two, you can't claim the $5,000 loss against your employment income or investment income or capital gains like you could in a non-registered account. So remember Buffett's rule #1: Do not lose money. Rule #2 being don't forget the first rule. TFSA's are absolutely tailor-made for Graham-Buffett value investing or for diversified ETF or mutual fund investing, but you don't want to buy a lot of small specs because you don't get the tax loss. 13. Moving to/from Canada/residency. You must be a resident of Canada and 18 years old with a valid SIN to open a TFSA. Consult your tax advisor on whether your circumstances make you a resident for tax purposes. Since 2009, your TFSA contribution room accumulates every year, if at any time in the calendar year you are 18 years of age or older and a resident of Canada. Note: If you move to another country, you can STILL trade your TFSA online from your other country and keep making money within the account tax-free. You can withdraw money and **Canada** will not tax you. But you have to get tax advice in your country as to what they do. There restrictions on contributions for non-residents. See "non residents of Canada:" [https://www.canada.ca/content/dam/cra-arc/formspubs/pub/rc4466/rc4466-19e.pdf](https://www.canada.ca/content/dam/cra-arc/formspubs/pub/rc4466/rc4466-19e.pdf) 14. The U.S. withholding tax. Dividends paid by U.S.-domiciled companies are subject to a 15% U.S. withholding tax. Your broker does this automatically at the time of the dividend payment. So if your stock pays a $100 USD dividend, you only get $85 USD in your broker account and in your statement the broker will have a note saying 15% U.S. withholding tax. I do not know under what circumstances if any it is possible to get the withheld amount. Normally it is not, but consult a tax professional. 15. The U.S. withholding tax does not apply to capital gains. So if you buy $5,000 USD worth of Apple and sell it for $7,000 USD, you get the full $2,000 USD gain automatically. 16. Tax-Free Leverage. Leverage in the TFSA is effectively equal to your tax rate \* the capital gains inclusion rate because you're not paying tax. So if you're paying 25% on average in income tax, and the capital gains contribution rate is 50%, the TFSA is like having 12.5%, no margin call leverage costing you 0% and that also doesn't magnify your losses. 17. Margin accounts. These accounts allow you to borrow money from your broker to buy stocks. TFSAs are not margin accounts. Nothing stopping you from borrowing from other sources (such as borrowing cash against your stocks in an actual margin account, or borrowing cash against your house in a HELOC or borrowing cash against your promise to pay it back as in a personal LOC) to fund a TFSA if that is your decision, bearing in mind the risks, but a TFSA is not a margin account. Consider options if you want leverage that you can use in a TFSA, without borrowing money. 18. Dividend Tax Credit on Canadian Companies. Remember, dividends paid into the TFSA are not eligible to be claimed for the credit, on the rationale that you already got a tax break. 19. FX risk. The CRA allows you to contribute and withdraw foreign currency from the TFSA but the contribution/withdrawal accounting is done in CAD. So if you contribute $10,000 USD into your TFSA and withdraw $15,000 USD, and the CAD is trading at 70 cents USD when you contribute and $80 cents USD when you withdraw, the CRA will treat it as if you contributed $14,285.71 CAD and withdrew $18,75.00 CAD. 20. OTC (over-the-counter stocks). You can only buy stocks if they are listed on an approved exchange ("approved exchange" = TSX, TSX-V, NYSE, NASDAQ and about 25 or so others). The U.S. pink sheets "over-the-counter" market is an example of a place where you can buy stocks, that is not an approved exchange, therefore you can't buy these penny stocks. I have however read that the CRA make an exception for a stock traded over the counter if it has a dual listing on an approved exchange. You should check that with a tax lawyer or accountant though. 21. The RRSP. This is another great tax shelter. Tax shelters in Canada are either **deferrals** or in a few cases - such as the TFSA - outright tax breaks, The RRSP is an example of a deferral. The RRSP allows you to deduct your contributions from your income, which the TFSA does not allow. This deduction is a huge advantage if you earn a lot of money. The RRSP has tax consequences for withdrawing money whereas the TFSA does not. Withdrawals from the RRSP are taxable whereas they are obviously not in a TFSA. You probably want to start out with a TFSA and maintain and grow that all your life. It is a good idea to start contributing to an RRSP when you start working because you get the tax deduction, and then you can use the amount of the deduction to contribute to your TFSA. There are certain rules that claw back your annual contribution room into an RRSP if you contribute to a pension. See your tax advisor. 22. Pensions. If I contribute to a pension does that claw back my TFSA contribution room or otherwise affect my TFSA in any way? Answer: No. 23. The $10K contribution limit for 2015. This was PM Harper's pledge. In 2015 the Conservative government changed the rules to make the annual government allowance $10,000 per year forever. Note: withdrawals still converted into contribution room in the following year - that did not change. When the Liberals came into power they switched the program back for 2016 to the original Harper rules and have kept the original Harper rules since then. That is why there is the $10,000 anomaly of 2015. The original Harper rules (which, again, are in effect now) called for $500 increments to the annual government allowance as and when required to keep up with inflation, based on the BofC's Consumer Price Index (CPI). Under the new Harper rules, it would have been $10,000 flat forever. Which you prefer depends on your politics but the TFSA program is massively popular with Canadians. Assuming 1.6% annual CPI inflation then the annual contribution room will hit $10,000 in 2052 under the present rules. Note: the Bank of Canada does an excellent and informative job of explaining inflation and the CPI at their website. 24. Losses in a TFSA - you cannot claim a loss in a TFSA against income. So in a TFSA you always want to make money and never want to lose money. A few ppl here have asked if you are losing money on your position in a TFSA can you transfer it in-kind to a cash account and claim the loss. I would expect no as I cannot see how in view of the fact that TFSA losses can't be claimed, that the adjusted cost base would somehow be the cost paid in the TFSA. But I'm not a tax lawyer/accountant. You should consult a tax professional. 25. Transfers in-kind to the TFSA and the the superficial loss rule. You can transfer securities (shares etc.) "in-kind," meaning, directly, from an unregistered account to the TFSA. If you do that, the CRA considers that you "disposed" of, meaning, equivalent to having sold, the shares in the unregistered account and then re-purchased them at the same price in the TFSA. The CRA considers that you did this even though the broker transfers the shares directly in the the TFSA. The superficial loss rule, which means that you cannot claim a loss for a security re-purchased within 30 days of sale, applies. So if you buy something for $20 in your unregistered account, and it's trading for $25 when you transfer it in-kind into the TFSA, then you have a deemed disposition with a capital gain of $5. But it doesn't work the other way around due to the superficial loss rule. If you buy it for $20 in the unregistered account, and it's trading at $15 when you transfer it in-kind into the TFSA, the superficial loss rule prevents you from claiming the loss because it is treated as having been sold in the unregistered account and immediately bought back in the TFSA. 26. Day trading/swing trading. It is possible for the CRA to try to tax your TFSA on the basis of "advantage." The one reported decision I'm aware of (emphasis on I'm aware of) is from B.C. where a woman was doing "swap transactions" in her TFSA which were not explicitly disallowed but the court rules that they were an "advantage" in certain years and liable to taxation. Swaps were subsequently banned. I'm not sure what a swap is exactly but it's not that someone who is simply making contributions according to the above rules would run afoul of. The CRA from what I understand doesn't care how much money you make in the TFSA, they care how you made it. So if you're logged on to your broker 40 hours a week and trading all day every day they might take the position that you found a way to work a job 40 hours a week and not pay any tax on the money you make, which they would argue is an "advantage," although there are arguments against that. This is not legal advice, just information. 27. The U.S. Roth IRA. This is a U.S. retirement savings tax shelter that is superficially similar to the TFSA but it has a number of limitations, including lack of cumulative contribution room, no ability for withdrawals to convert into contribution room in the following year, complex rules on who is eligible to contribute, limits on how much you can invest based on your income, income cutoffs on whether you can even use the Roth IRA at all, age limits that govern when and to what extent you can use it, and strict restrictions on reasons to withdraw funds prior to retirement (withdrawals prior to retirement can only be used to pay for private medical insurance, unpaid medical bills, adoption/childbirth expenses, certain educational expenses). The TFSA is totally unlike the Roth IRA in that it has none of these restrictions, therefore, the Roth IRA is not in any reasonable sense a valid comparison. The TFSA was modeled after the U.K. Investment Savings Account, which is the only comparable program to the TFSA. 28. The UK Investment Savings Account. This is what the TFSA was based off of. Main difference is that the UK uses a 20,000 pound annual contribution allowance, use-it-or-lose-it. There are several different flavours of ISA, and some do have a limited recontribution feature but not to the extent of the TFSA. 29. Is it smart to overcontribute to buy a really hot stock and just pay the 1% a month overcontribution penalty? If the CRA believes you made the overcontribution deliberately the penalty is 100% of the gains on the overcontribution, meaning, you can keep the overcontribution, or the loss, but the CRA takes the profit. 30. Speculative stocks-- are they ok? There is no such thing as a "speculative stock." That term is not used by the CRA. Either the stock trades on an approved exchange or it doesn't. So if a really blue chip stock, the most stable company in the world, trades on an exchange that is not approved, you can't buy it in a TFSA. If a really speculative gold mining stock in Busang, Indonesia that has gone through the roof due to reports of enormous amounts of gold, but their geologist somehow just mysteriously fell out of a helicopter into the jungle and maybe there's no gold there at all, but it trades on an approved exchange, it is fine to buy it in a TFSA. Of course the risk of whether it turns out to be a good investment or not, is on you. Remember, you're working for your money anyway, so if you can get free money from the government -- you should take it! Follow the rules because Canadians have ended up with a tax bill for not understanding the TFSA rules. Appreciate the feedback everyone. Glad this basic post has been useful for many. The CRA does a good job of explaining TFSAs in detail at [https://www.canada.ca/content/dam/cra-arc/formspubs/pub/rc4466/rc4466-19e.pdf](https://www.canada.ca/content/dam/cra-arc/formspubs/pub/rc4466/rc4466-19e.pdf) ​ # Unrelated but of Interest: The Margin Account # **Note: if you are interested in how margin accounts work, I refer you to my post on margin accounts, where I use a straightforward explanation of the math behind margin accounts to try and give readers the confidence that they understand this powerful leveraging tool.** ​ ## [How Margin Loans Work - a Primer](https://www.reddit.com/r/CanadianInvestor/comments/hbskjb/how_margin_loans_work_a_primer/)

CanadianInvestor

I’m confused on one point - I didn’t realize you get extra contribution room through gains - I thought the contribution room is capped at the cumulative total of limits since 2009 - $69,500 as of 2020. The gains are tax sheltered, but don’t create extra contribution room following withdrawal.

tc978q

Don't buy in a flood area

That's it, that's the advice. I really can't believe people are still doing it. Actual quote from an article I just read, from somebody who got destroyed by the flood.. >"It seemed astute to move into a flood area after the last flood, because it's a little bit cheaper and we could afford a place here,.. > >...We just thought it might flood again in 30 years or something like that, and we'd totally avoid it. But yeah, here it is. We couldn't believe it." They knew it was a flood zone, that suffered bad floods recently, decided it sounded like a bargin. Despite the mountains of evidence pointing towards Australia only suffering worse floods, bush fires and extreme weather over the coming years. As this sub is about 'getting out of debt, investing, and saving for retirement.'. And I haven't seen this mentioned, yet people are repeatedly walking into this trap.. the advice seems relevant for preventing debt and securing a retirement.. Just don't buy in a flood zone. You can download the flood maps of any area online. Likewise you can check an area for bush fire risk etc. it's not a lesson you want to learn the hard way. It could be the biggest financial mistake you ever make.

AusFinance

A friend from Melbourne moved to Brisbane. He was making an offer on a place, when the Estate Agent suffered a glitch when his conscience surfaced. He told my mate that the place was in a flood zone, and he wouldn’t know it b/c he’s from another state. Anyway. My mate bought elsewhere. He said that the flood zone place he was going to buy ended up under 1m of water

u2dtqv

Wikipedia has a section arguing that supply and demand isn't real, or no longer applies. Is this a mainstream position in economics at all?

https://en.wikipedia.org/wiki/Supply_and_demand#Criticism Basically, there's two arguments here: 1. Supply and demand is a tautology, or the existence of it is unfalsifiable. The labor theory of value is a better way to set prices. 2. Supply and demand doesn't apply to modern goods, since stores set prices using a fixed markup percentage over their costs. I thought supply and demand was a cornerstone of economics, like Newton's laws are to physics, but I'm just a layperson. Are these criticisms supported by a lot of economists? Is supply and demand really in doubt? Or are these just fringe positions that aren't backed up by research?

AskEconomics

>Is this a mainstream position in economics at all? No. But we can expand on that a bit. Supply and demand is a model. Models are approximations of reality. Whether a model is a good approximation of realty in any specific application depends on how well the particular market you're studying lines up with the assumptions of the model. For example, S&D assumes that (a) everyone knows what they're buying, (b) every firm in the market is selling basically the same good, and (c) there are many buyers and sellers, so that no one customer or firm has outsized influence on the good's price. Some markets satisfy those conditions; others do not. Supply and demand is a general framework that can be used to study a wide variety of market phenomena. However, if you are studying a specific market at a specific time in a specific place, then you might want to use a more detailed model that better conforms to the application under investigation. There is an entire field of economics, *industrial organization,* that studies the behavior of supply in situations where the assumptions of supply and demand are not a good approximation for reality. This includes situations in which there are few competitors (monopoly, oligopoly); situations in which competitors compete on brand (monopolistic competition), situations in which one firm's actions depend on the actions of others (game theory), etc. All of these models allow for a more detailed analysis than simple S&D. Usually S&D should be the first place you go to solve your problem, but not necessarily the last place. You can use S&D to get coarse answers to most questions, and more detailed models to get richer answers. ----- Regarding the two criticisms you mentioned: 1. S&D is not a tautology; classical consumer and producer theory produces implications that can be tested against data. However, S&D *is* a very general framework (by design), so it can accommodate a rather wide range of behavior. 2. Under supply and demand, firms set price equal to marginal cost. There is no markup, and no profit. This is an extreme prediction. In most richer industrial organization models, firms set price equal to a markup over marginal cost. The size of the markup is a key object of interest in IO, and usually can be linked to demand parameters or other such primitives. But it's not necessarily "fixed." Furthermore, in many IO models, the size of the markup falls as the number of competitors grows large -- so S&D is the "limit" as the number of competitors grows. You can even use these richer models to put bounds on how good the S&D approximation is; for example, some models allow claims such as "for any industry with more than 10 competitors, the S&D-predicted price will be within 10% of the more complicated model's predicted price." Such bounds can be helpful, and put S&D in its proper context. I wouldn't say these results "invalidate" S&D, they just provide a richer model of the price-setting environment. So, again, S&D is usually a good first stab at most problems at a high level, and the answers one obtains can be refined by using more advanced models. There are famous cases where the S&D answer and the more complicated model's answer are totally different (such as the case of price controls), but those are famous in part because they're rare. Think of models less in terms of, "is the model right or wrong," and more, "is it more or less useful in this particular situation?" or, "is it more or less useful in giving reasonable answers in a broad range of situations?"

z4pjoy

Multifamily Seller Won’t Share Financials

OK, so I’m interested in this off market 7 unit multifamily asset. I reached out to the owner, and they said they’d consider an offer. I asked the seller for financial so that I can underwrite the property and give them an offer. The seller straight up, told me that he would not be sharing any financials until the property was under contract. How does that make any sense? How am I supposed to put an offer on a property without knowing financials This is my first time doing and off market deal. Is this normal? How would you proceed?

realestateinvesting

Interesting take. The property owner is not listing the property for sale. This in an unsolicited offer from an individual that you know nothing about. Would you provide financials for all unsolicited requests?

foy2eq

Do the billionaires actually have the money?

I've often wondered if there is something I'm missing about how wealth is understood at the billionaire level. Most of their value is not in cash so isn't what they are worth more of an appraisal? I understand scapegoating billionaires. But I wonder how could we expect them to pay for things when they don't have cash, or with value that isn't real but rather projected. How much of the 100 billion in Jeff's worth is translatable to increases in Amazon wages? How would that process work? I thank you in advance and am not looking for political answers but distinctly economic ones.

AskEconomics

We'll take your Jeff Bezos example. The majority of Bezos's fortune is held in Amazon stock. If Bezos wanted to turn his stock into cash, he would simply sell his Amazon stock. However, because he owns such a large amount of Amazon stock, if he decided to dump all of it at once, it would hurt Amazon's share price and lower his net worth in the process. So he'd have to sell it very slowly over time to realise it's full value, assuming the stock price held stable over this time period which is a big assumption. If you taxed his wealth highly enough, then you'd see him have to devalue Amazon stock by selling off enough shares to cover the tax burden.

n2w7o9

Homes are selling insanely fast, with some going $1-200k over asking price. What does that mean for the future?

I'm not involved in real estate much, but I can't help but think that heavily over-paying on a property (which, granted, is a long-term investment) seems a bit crazy on the surface to me. Many are paying cash, waiving appraisals/inspections etc just to get to the top of a list for property listed 48 hours ago. I'm in the US, and I'm a bit familiar with how much foreign investors are at play. Is this just a potential recipe for another major bust, or is there more to this story than I understand?

AskEconomics

So when you say another "major bust" I suspect that you might be thinking of another 2008 style crash. It's important to note that there can be a decrease in home values without the broader economic effects that we saw in 2008. In 2008 there essentially was a lot of things that in one way or another were relying on the fact that home values could only go up. There were a lot of risky mortgages being given out to people who could only afford them by cashing in on rising home prices. Securitization of these loans along with very poor credit ratings led a lot of the financial industry to be exposed to these loans without realizing the risk involved, and the entire economy is very exposed to the financial industry. Eventually new construction responded to the boom in the housing market, which leveled out prices and then the house of cards described above started to collapse. Contrast that with now. There are many causes and it's hard to pinpoint the exact magnitude but they appear to be different than what we saw then. First is low inventory. While the housing market appears to be booming, there's actually not many people selling their home right now. This is most likely because people don't want to move during a pandemic. Then there's higher savings rates. While the pandemic hit many people hard economically, many others are able to (and almost forced to) save more now than ever. Many of the things people normally spend on (travel, entertainment, commuting costs) are no longer there. Add some government assistance like stimulus checks as a bonus and many people are racking up savings. This is very different than 2008 where [savings was very low](https://web.archive.org/web/20071217193831/http://www.bea.gov/briefrm/saving.htm) and it was fueled by lending. There's a lot of cash offers being thrown around and no indication that banks are loosening their lending requirements. Another factor is the pandemic changing what markets are desirable. Many people can now work from anywhere, and cities have many aspects shut down or limited so people want to move to places further from their office where they can have more space. This leads to excess demand in places that never had this level of demand before. The point of all this is to say that there's not much of an indication of systemic risk in any of these explanations we see. This is a short term trend currently, and the low volume means not many people actually paid these prices. Furthermore, people seem to be able to afford these prices and have a sufficient amount of equity in these houses, banks don't seem to be overly exposed. If the housing market corrected tomorrow back to 2019 levels, we would likely see a small minority of homeowners underwater (those who bought at the peak 2020 levels) and they would likely take the losses themselves rather than us seeing 2008 levels of foreclosures. For everyone else, they would be in the same place as before the pandemic (with regard to their home value). The trend could also continue as several of the reasons listed above could be lasting changes. There could be a systemic risk exposed with a sudden correction in housing prices, but that's not readily apparent in the time being. I know this rambled quite a bit but the main point I was trying to get at is that the housing market can go up and down -- even quite dramatically -- and it doesn't mean there has to be giant rippling effects across the economy.

xywkmy

Why didn't Buffett sell when rate hikes were first announced?

Why didn't he just sell? Not just him, but other great value investors, Li Lu, Klarmann... It obviously gets 100% worse once rate hikes start. Consumer spending slowly goes down. And often times, a recession happens. So why didn't they sell, then buy back after the 5th rate hike, or when rate hikes stop, or immediately after rate reductions start? It's not "timing the market" when you know the stock market will 100% go down when rate hikes happen and a likely recession. Burry sold in Q2. So it's not like these big super-investors can't sell for some reason. And they don't even have to time the market perfectly when buying back. They could sell, wait just 2 months and get discounted stocks, or wait 6 months. Those alternatives seem better than holding all the way through. Of course they're in it for the long-run. Burry is too. But it seems like an obvious time to sell at the beginning of rate hikes and rebuy later. I didn't sell because I was a noob. I started investing at the top. I didn't know any better. But now I know. Next time they announce rate hikes 5 or 10 years from now, I'll just sell every except healthcare, consumer-staples, insurance and certain commodities --and buy back at a later time. Even if I don't buy back at the very bottom, I'll be better off than the ones who held through. Educate me please. There must be a good reason these brilliant super-investors didn't sell. It's not like they thought there was a possibility of 2-3 rate hikes, then that's all. They know what they're doing. I'm just trying to understand. BTW is Berkshire's stock portfolio beating the market YTD? Could it be green? I know the business is more than its stock holdings. Maybe their holdings are actually green. Much of their stock picks are bearish and do well in all climates. I wonder what his average cost is for AAPL is. I'm annoyed that I didn't sell. Rate hikes continue, but I'm holding, because we're so far into it. My picks are deep in value territory. I'm down as much as the market. Not bad for a noob.

ValueInvesting

This is like asking why a farmer doesn't sell his business because winter is coming, why a retailer doesn't sell after Christmas. A value investor knows these things happen and values the business averaged over the cycle, and doesn't panic because a trough has arrived, just as any other sensible business owner.

n1o9im

I think I need someone to burst my bubble.

I've just started trading crypto mostly long positions of coins I know about them and bullish. It's been 2 weeks. I've made enough profit worth almost 6 month of salary (started with 5K now, after closing today's position, account is nearly 60K). My first liquidation happened with small amount but enough to understand deeper the risks of over leverage etc. Doing 10x and max 20x when really bullish. I feel a new door has opened. Don't get me wrong, I've been studying long time before I decided to give it a go but still a lot to learn. It's been 2 weeks and I feel my life is shifting towards a new chapter. I enjoy this more than my work. I feel that if I manage to settle, I would be free, work from anywhere, provide for my family. Do you think I'm just being lucky? Or is it with common sense, understanding technicals and market is just good to have descent profits? Would you advise me to do something else, I don't know I guess I'm confused. ------------------------ EDIT: for the sake of making it easier to get you guys to help me, I thought to share what is the process I follow. This is what I do: - I don't chase Green candles. - I understand we are bull Market until is not. - I watch the coins (mostly BNB, ETH and sometimes BTC). - I determine that I am most bullish on BNB hence most of my profit is from there. - I enter long position when a support level has been tested twice and I know coin is def going up (this is subjective). I just know it has to go up. - I put take profit as I ride up the long, normally 25% at each resistance. Sometimes they are all eaten up sometimes they are not. If one of them gets executed, I put a new buy on the previous step. - when support is clearly tested and identified I put stop loss a little bit below the mark to allow some extra room for volatiliness. - I struggled before closing a position too early and then trying to jump back in because of FOMO. So I now stick to the plan and after orders get filled, I close the app for a couple of hours to reset myself. Bad things I know I've been doing: - don't use SL because being afraid of market eating my SL and then going back up. - I don't short. I guess is because I'm bullish but it shouldnt have anything to do. I just feel weird. Tried once and price skyrocketed. Anyway maybe later. - I have borrow against my btc to raise more usdt and inject into margin to reduce liq price. This is true when is late at night and I won't be closing the position because is not green but I don't want to wake up being liquidated and I don't want a stop loss to take me out as it has happened before. This, in my opinion, is the worst I've been doing. This is where I feel I've been lucky as I could have lost it all should the market do a super 70% dip which we all know is possible. EDIT 2: Thanks to those who have commented being objective about it. I would like to know if there is a source you would recommend to study more about trading in crypto? Course or something? All I know is me reading up about the technicals I find easier to work with and crypto behaves different of course. EDIT 3: I have concluded I've been just lucky. I exposed myself into too much risk. I have borrowed against btc at times to inject margin to positions that were close to be liquidated. If liquidation had happened I wouldn't be writing here. I would go to sleep and wake up in the morning back to green with enough profit to pay everything off and get profits compounded into the next position. I will be taking 2 steps back. I have removed 20K and reinvested somewhere else for long term. I will make positions not more than 10K in total and use the 30K to protect against liquidation. For those who wonder what is what I am doing: For instance my current open position is BTCUSD Perpetual Future 20x for 2 BTC, Entry Price 53150 with 8K margin. Currently PNL of 7K. I will update you once I get rekt or otherwise. Thank you all for your comments.

Trading

It's hard to believe it's not luck tbh If you keep increasing your position size you are at risk of losing it all with a few bad trades Protect those profits and trade in smaller lot sizes until you are sure whether this is luck or skill. If it's skill, you can always increase your position sizes again later

v4wxkb

I Spoke With a Former Citadel Client. Here’s What He Said About Ken Griffin & Citadel.

TL;DR: Recorded call with former Citadel client reveals Citadel has been underperforming and may have been cooking the books on their finances. Further evidence shows that Ken Griffin was desperate to hold onto his client's funds, and was ferocious towards anyone that left him. \------------------------------------------------------------------------------------------------------------------------------------------------ If you recall in my [Burning Cash](https://www.reddit.com/r/Superstonk/comments/v0zrni/burning_cash/) DD post, I explained how Citadel has just a handful of clients that provide them with the necessary capital to operate. §1 of my "Burning Cash" DD: "Remember that each of these 19 clients is a very wealthy individual (we're talking aristocrat wealth; someone with a net worth in the billions, or at least $100 million range)." The number of Citadel's clients has dropped to 16 now, as of March 31, 2022, which can be seen on Item 5.D.(f), which is located on page 28 of Citadel's [ADV](https://reports.adviserinfo.sec.gov/reports/ADV/148826/PDF/148826.pdf). I should point of that finding out who are these clients (whether former or current) of Citadel is nearly impossible. But, a few days ago I was tipped off by an Ape "u/ Marijuana\_Miler", that noticed an interviewee on "The Tim Ferriss Show", talk briefly about how he's a former client of Citadel. [Transcripts from "The Tim Ferriss Show":](https://tim.blog/2022/05/28/ed-thorp-transcript/) https://preview.redd.it/pfs2m9aurn391.png?width=625&format=png&auto=webp&s=b817b9f2f2ecc434c6e7742471573812908ed0cb https://preview.redd.it/we8n7nwvrn391.png?width=625&format=png&auto=webp&s=61362c9e52b372d7ced51b13f9dcf65dee311dd4 \[Note: When someone is talking in an open interview (e.g. Tim Ferriss Show), they're usually more careful about the things they say, so you might not be able to get the full picture of what was going on behind-the-scenes. I've personally been interviewed by talk shows before, and the information I'd provide in interviews was very limited in scope to what was actually going on, and I made sure if I talked about someone, that I would be respectful and not try not to defame anyone's character. That's usually how it goes, so I knew that if Thorp had relations with Ken Griffin and Citadel, there's was very likely much more going on not provided in that interview with the Tim Ferriss Show, which is why I wanted to dig deeper. And, as you'll see in the recordings, Thorp's views on Ken Griffin and Citadel are drastically different than what was displayed in the interview.\] Now, who is Edward O. Thorp (PhD)? He's an illustrious American mathematician, hedge fund manager, author, and blackjack researcher. He has a net worth of $800 million, which is the type of wealthy client (of the 16 Citadel clients) I was talking about. \------------------------------------------------------------------------------------------------------------------------------------------------ Here's a biographical [synopsis](https://www.celebritynetworth.com/richest-businessmen/wall-street/edward-thorp-net-worth/) of Edward Thorp: "Edward Thorp is an American mathematics professor, author, hedge fund manager and blackjack player who has a net worth of $800 million dollars. Edward Thorp was born August 14, 1932 in Chicago, Illinois. He is known as the "father of the wearable computer" since inventing the world's first wearable computer in 1961. He was a pioneer in modern applications of probability theory, including the harnessing of very small correlations for reliable financial gain. He is the author of Beat the Dealer (1962), the first book to mathematically prove that the house advantage in blackjack could be overcome by counting cards. He also developed and applied effective hedge fund techniques in the financial markets. Thorp received his Ph.D. in mathematics from the University of California, Los Angeles in 1958 and worked at the Massachusetts Institute of Technology (MIT 1959-61). \[...\] After his success in casino games, Thorp moved to Wall Street, where he used in full measure his mathematical genius to foresee the price anomalies and with his partner J. Regan developed simple and efficient methods of earning money on stock. His methods are shown brilliantly in his book Beat the Market (1967). Edward O. Thorp is a legendary blackjack player and thinker, and is one of the 7 people elected to be original members of Blackjack Hall of Fame." \------------------------------------------------------------------------------------------------------------------------------------------------ When I found out that Edward Thorp was one of Citadel's clients, I felt really lucky, because I just so happen to have certain connections that I could leverage to get me in contact with Dr. Thorp. I was able to reach out to him, and had a chat with him on the phone regarding Ken Griffin and Citadel. Here are the recordings. \*I know mods were previously concerned of any potential legal ramifications for posting this, but I can assure you all that I was legally allowed to record this phone call.\* \[I should note before you listen to these recordings, that I edited out my voice. So, you'll only be hearing the voice of Edward Thorp.\] \------------------------------------------------------------------------------------------------------------------------------------------------ \-My first question: "When did you leave Citadel?" https://reddit.com/link/v4wxkb/video/xnnw31n6sn391/player Dr. Thorp answers that he exited in 2020, before the January 2021 run up and all the craziness that transpired afterwards. This is important to note. \-I later asked him "why did you decide to leave Citadel?" And "tell me about the stipulations in your contract with Citadel. How hard was it to withdraw your money?" https://reddit.com/link/v4wxkb/video/bsfmxd1asn391/player Dr. Thorp's testimony here is a revelation that underscores the many shady practices of Citadel. We'll be revisiting it later on, but to succinctly explain: Citadel was underperforming, their returns were bad (not nearly as good as Citadel/MSM made them out to be to the public), and that was pre-2021. If Citadel's real returns were terrible pre-2021, they must be absolutely awful this year as well as last, as they've only been burning through their cash trying to keep the basket stocks down. We also learn that it's extremely hard for Citadel clients to leave the hedge fund, and that the process takes several years to exit. That would explain why the number of clients Citadel didn't drop from 19 to a significantly less number (such as 10 or less), but instead dropped to 16. I imagine the clients with several billions may have had more leeway/stipulations in their contract; hence, they would've been able to exit quicker (explaining the increase in clients exiting 2021/2022), but for most of the clients, it wasn't going to be as easy. Though, they're most likely actively withdrawing, which is why Citadel needed to cut withdrawal limits and get money from Sequoia. \-I asked Thorp about his history with Ken Griffin: https://reddit.com/link/v4wxkb/video/etr43arbsn391/player "I just rolled out along until they stopped performing well, and I got out as quickly as I could"-Edward Thorp, Former Citadel Client. I really like this quote. Should be part of an ad for Citadel, haha. \-Discussion about Citadel's withdrawal penalties: https://reddit.com/link/v4wxkb/video/58hzumodsn391/player "I said to myself, 'if they're so desperate to keep your capital, it means they probably see some risks that we don't know about'". \-Discussion about how Ken Griffin operates Citadel: https://reddit.com/link/v4wxkb/video/dyvsiy6fsn391/player "He has very tight control. He's in charge; he collects most of the money. And he goes after people with ferocity if they leave him. He thinks they'll take any secrets from his organization." \------------------------------------------------------------------------------------------------------------------------------------------------ There was more in my discussions with Edward Thorp that I would've liked to share, but I was specifically entrusted to keep particular things he said solely between me and him. I'm choosing to do the right thing and honor his request. There's already plenty of information that I've shared here that he's provided, which would make for very strong evidence in the DOJ investigation into Citadel. I've also sent this info to a buddy of mine in the government that can relay it to the right people in the DOJ, to make sure this information is included in the probe into Citadel. I think that the DOJ would be very interested in learning further about how Ken Griffin "goes after people with ferocity if they leave him". Any sort of coercion or bribery can be prosecuted under the RICO Act. Also, I'd like to go back to recording #2. **We have corroborating evidence from Thorp that Citadel was producing returns that were virtually correlated with the stock market (i.e. S&P 500). And Citadel agreed with Thorp's statistical analysis when he presented it to them.** Ok, so example: Market goes up 3% **⇒** Citadel makes positive returns correlated with 3% market rise. Market goes down 3% **⇒** Citadel makes negative returns correlated with 3% market drop. Sound easy enough? Ok...so why has Citadel been reporting that they're outperforming the market? Why do we have MSM articles like this around (this has been going on for years, mind you): [Exhibit A.](https://preview.redd.it/qap8ndnyrn391.png?width=925&format=png&auto=webp&s=fbd6c71b09b098c76be0b3c0cb085faacc777886) [Exhibit B.](https://preview.redd.it/bk8gp0yzrn391.png?width=1023&format=png&auto=webp&s=29965b1e9c019bc2f564b17adcb6b0fdac7c0df0) These publicly reported numbers are not consistent with what Thorp stated. Take, for example, this article published on September 25, 2020: https://preview.redd.it/cjawdj61sn391.png?width=867&format=png&auto=webp&s=e5b76d5cbfe007c6212f1031d593cd7ec0299de6 "Citadel Securities LLC doubled its profits during the first half of 2020, Bloomberg News reported Sept. 25. Let's do some math on this, shall we? \------------------------------------------------------------------------------------------------------------------------------------------------ January 1, 2020 S&P 500 closing price: 3,278.2 July 1, 2020 S&P 500 closing price: 3,207.62 \[[source](https://www.multpl.com/s-p-500-historical-prices/table/by-month)\] Calculations: \[(3,207.62/3,278.2)100\] ≈ 97.85 ⇒ 97.85-100 ≈ **-2.15%** **Citadel should've lost 2.15% from January 1, 2020 - July 1, 2020.** \------------------------------------------------------------------------------------------------------------------------------------------------ Even taking into account any fees being collected, there's no way Citadel would've been able to double its profits during the first half of 2020. It's impossible. If we go by Thorp's statistical analysis (which Citadel agreed with), it's clear that Citadel is artificially inflating their positions. This could be for a variety of reasons: to look good to prospective clients, outside competitors, take out loans, gain leverage, etc. This is what happened in the case of Bill Hwang, owner of the hedge fund Archegos. Hwang was indicted by the DOJ on Wednesday, April 27, 2022 for racketeering & fraud offenses related to a market manipulation scheme, of which include artificially inflating their portfolio from $1.5 billion to $35 billion. [You can read the DOJ press release here.](https://www.justice.gov/opa/pr/four-charged-connection-multibillion-dollar-collapse-archegos-capital-management) This isn't new. We now have a strong case that Archegos wasn't the only one artificially inflating their portfolio, and that Citadel has been likely doing something similar. Considering that Hwang was indicted and may virtually face a life sentence in prison, it wouldn't be a stretch to suggest that Ken Griffin could also face a life sentence is prison as well for artificially inflating his portfolio, if he were to be indicted by the DOJ as well. Every count for racketeering conspiracy carries a maximum potential sentence of 20 years. A couple counts for charges of racketeering conspiracy could already be enough to put Griffin in prison for the rest of his life. Citadel is under the DOJ probe, so hopefully the DOJ will be taking a closer look at these inconsistencies, ascertain whether or not Citadel has been cooking the books, and finally begin to potentially take action, such as making indictments, as they did with Archegos. \------------------------------------------------------------------------------------------------------------------------------------------------ Final note: do NOT harass Edward Thorp. I repeat: do NOT harass him! This is primarily about Ken Griffin & Citadel. Edward Thorp is a good person, and was very helpful in this case. If it weren't for his testimony, none of this would've been possible. Don't make me regret sharing this information on SuperStonk and not solely with the DOJ. \------------------------------------------------------------------------------------------------------------------------------------------------

Superstonk

When I read Thorpe's name here I was like "why does this name ring a bell?". As soon as you mentioned "Blackjack researcher" I got it. I read "beat the dealer" when I was 19, that guy literally invented card counting and basic strategy. That book got me through tough times. Thorpe's a scientist and a good guy (he taught the public how to beat casinos at their own game!). Don't harass him please.

xo2qcx

Optus Hack - Can’t Get New QLD Driver Licence Number

My QLD driver licence details were stolen in the Optus ‘cyberattack’ so I’m trying to get ahead of everything. I can’t get a new driver licence number. Surely this can’t be correct? I have to wait until my details are used by a criminal first? Live chat with Department of Transport and Main Roads this morning.

AusFinance

Yep that’s why the Optus leak is far worse than financial information (card numbers) or passwords being leaked, those can be changed, whereas ID numbers are hard to change and DOB…. It is quite disappointing that Optus seems more focused on downplaying the implications for the customers and shifting responsibilities.

an3b0g

Chuck Schumer and Bernie Sanders call for restricting corporate share buybacks

Proposal would restrict companies from buying back shares unless they pay their workers $15 an hour as well as some other requirements. What are your thoughts about this? Seems unconstitutional to me. [Link](https://www.cnbc.com/2019/02/04/senate-democrats-call-for-restricting-corporate-share-buy-backs.html)

investing

You guys. Stock buybacks have only been [legal since 1982](https://www.vox.com/policy-and-politics/2018/3/22/17144870/stock-buybacks-republican-tax-cuts). Look beyond the messenger and realize there's maybe some good reasons to restrict buybacks. Beyond the equity issue, there's serious evidence to show it's reducing business [investment and innovation](https://www2.deloitte.com/insights/us/en/economy/behind-the-numbers/corporate-share-buybacks-business-investment.html).

ogi6aq

Update: made it to $18,000/yr in dividends!

Haven’t actually gotten that in payouts yet since I moved quite a bit of my cash into some stocks/ETFs just this week. And SCHY hasn’t had it’s “real” dividend yet since it is new. Also, this is outside of 401k (about $1M there all in VTI). Here is where I am at (rounded amounts): Total Account Value: about 800k Top two holdings are VTI and VXUS, which drags down the dividend yield but I am ok with it (about $450k here) The rest: SCHY, ARCC, KO, VZ, BMY, RDS.B, SU, C, V, DE, AAPL, TD (about $350k here) I figure I can expect another 1.2% or so on my 401k so that’s another $12k in annual yield for the total of $30k/yr, but that’s my 401k and I don’t want to touch it. I am 42. Married. One kid. Super crazy expensive large city and we are not good at being frugal (maybe because of very tough childhood). Totally our fault now though... So I have a lot more to work towards.

dividends

Wow!!!! That is amazing. I'm from the UK and have always dreamed of being able to save £20 thousand or have that in dividends each year so I can put it in to my ISA. I think an ISA is equivalent to your 401K. 😃😃😃

rpkrpp

Classic "personal finance wisdoms" that don't apply to EU-folk

Hello all, what are some examples of tropes from online personal finance forums that do not apply to EU-folks in your opinion? For example, an often repeated wisdom is that you need to have at least 3-6 months of expenses in savings as a buffer or emergency fund. I do not see any need for this though, as employment legislation, cheap/free healthcare and excellent renters protection make it hard for me to envision a scenario where I would suddenly be in need for such a huge sum of liquidity. What are some other examples?

eupersonalfinance

As much as I would like to "max out my Roth IRA", nothing of the sort exists in Austria. Building a "dividend portfolio that will pay you monthly" is less tax efficient here than having an accumulating ETF portfolio. > at least 3-6 months of expenses in savings as a buffer or emergency fund. This isn't as necessary in Austria, but I try to keep at least 3 months worth of net income in my savings as an emergency fund anyway. This could come in handy in various circumstances: * I lose my job and the AMS money takes a while to get to me * I have an accident and need cash to pay for stuff right this instant because the money from insurance or whatever will take a while to reach me. * A family member abroad needs urgent financial support because they don't have a social security system. * Something expensive at home, in my PC, in my car, etc. breaks and is a pricey fix.

les0ok

Rocket Companies (RKT) - DD on an Undervalued Gem!

This is my first DD post on any company, be gentle. Disclaimer: I am long RKT. This is not financial advice, and I am not receiving any compensation whatsoever from anyone for this post. I’m not a professional, I’m not even an amateur, this is a Wendy’s. **Sources used:** RKT investor relations website and company website, RKT earnings transcripts, SEC fillings, the SEC EDGAR database, sea king al pha, whalewisdom, finbox, yahoo finance, stockcharts, openinsider, Zacks, google sheets. ​ **Summary** Rocket Companies (RKT) is a fintech company that operates several brands including the flagship Rocket Mortgage. I think RKT presents an opportunity to buy serious value at a cheap price, because the market has not priced in the underlying fact that RKT is a tech company akin to Square, Paypal, etc. * RKT has disrupted the lending industry and has embraced a fully digital ecosystem, which will continue to drive customer acquisition and retention in the future * RKT spends considerable money and resources on UX/UI development, client experience, and marketing. This will also help drive their continued expansion into the lending market. * The RKT “ecosystem” provides a “full cycle” solution for everything related to real estate transactions and insurance. They serve real estate professionals looking to generate leads, develop those leads, better serve their clients, and make every stage of real estate transactions smoother. From the client side, they similarly just make everything easier - it’s an app, it’s online, it’s doable from home and it’s not complicated. There’s an inherent advantage in what they’re doing here because closing on real estate transactions has always been something that’s complex, unpleasant, expensive, and not well understood. You need lawyers, you need agents, there’s a ton of paperwork, it sucks. RKT is changing all of that. * RKTs balance sheet, income, and liabilities support a stock price several times higher than the current one in my opinion. * RKT is currently stagnant in price, and the market appears to be pricing it like a traditional mortgage company, not a rapidly growing tech company (which they are). * RKT has been around for decades (skips the startup costs that will provide barrier to entry for newer companies looking to do what they’re doing), but somehow seems to still be leading the tech charge in the industry. That’s a unique and potent combination in my opinion. * RKT needs a catalyst to get the market to value it as a tech company instead of a lending company. Once that happens, and I expect it to sometime within the next year, RKT should approach an appropriate valuation such as 20x earnings. That’s an estimate I pulled out of nowhere, but is commensurate with the low end of P/E ratios for companies I see as similar to RKT. **Key Point - RKT is Priced Like a Legacy Mortgage Company** The average estimate for 2020 year end revenue is $15 billion, and the yearly earnings estimate average is $3.85 per share. This estimate gives a ttm P/E ratio of just over 5.5. The sector median is something like 8-12, which makes RKT cheaply valued relative to the earnings it produces, *even compared to the financial/mortgage sector*. What’s key here is, I don’t think that’s really an appropriate comparison. I would place them more in line with companies like Square (ttm P/E ratio of 325x lol), PayPal (ttm P/E ratio of 69x, nice), or Fiserv (ttm P/E ratio of 24x). I used Zacks for all of these P/E ratio lookups. Let’s assume RKT is conservatively worth 15x earnings, and that it hits the estimate of $3.85 eps. **That would put its fair value** ***right now*** **at $57.75 per share.** I think it’s worth more than that but, we all should do well to remember that it’s really only worth whatever the market will pay for it. **Key Point - Catalysts** This thing needs a catalyst. Right now I am loading up. I’m buying shares, I’m selling SHORT TERM covered calls to reduce basis on those shares, but I will be stopping the sale of those covered calls within a couple weeks most likely. The Q4 earnings announcement will be on 2/25. I am not sure that the actual earnings numbers will be enough to wake this thing up, although I expect them to be good. But if that announcement comes with discussion of their focus for 2021 and beyond, and gets the market thinking about them as a tech company first and mortgage lending company second, things will start to heat up. I don’t know when the real catalyst will hit that triggers the run-up, but I think it could start with the Q4 earnings call. I am looking at $21 as the floor for this stock, and I expect the price to double within a year. I will be acquiring OTM LEAPs, expiring next spring. Supporting information and background follows. **The Business** RKT is in the business of providing solutions to financial transactions, including mortgage origination and refinancing, auto lending, and more. Specific subsidiaries and my simplistic view of how they interact: *Home Financing* * Rocket Mortgage - The mortgage company. This is a prominent “public facing” part of the Rocket ecosystem. * Amrock - Amrock provides title insurance, property valuations, and other solutions. I see this as “supporting infrastructure” to keep clients within the rocket ecosystem where they would otherwise need to go elsewhere and is part of what makes RKT a one-stop-shop. * Amrock Title Insurance (ATI) Company - basically does underwriting for Amrock. The “business end” in my simple understanding of the world. * Nexsys - provides a streamlined approach to the closing process with their Clear Sign and Clear HOI technologies - taking care of closing day authentications and sharing of homeowners insurance information. * Lendesk - Lendesk specifically provides solutions for the mortgage market in Canada * Edison Financial - Basically the “front end” of Lendesk that Canadian clients would interact with. *Home Sale and Search* * Rocket Homes - Rocket Homes is a proprietary home search platform and real estate agent referral network. Basically this matches buyers, sellers, and agents, and is a key aspect of keeping clients completely working within RKT for all aspects of real estate buying/selling/financing. * For Sale By Owner - A digital marketplace designed to let clients buy and sell real estate on their own. I think it’s absolutely brilliant that RKT owns this, but more on that later. *Auto & Personal Financing* * Rocket Auto - Supports rental and online car purchasing platforms. * Rocket Loans - online personal loan solutions for clients. *Media* * Core Digital Media - a major advertiser in the mortgage, financial, insurance, and education sectors. * Lower My Bills - this company is basically a “portal” business model that connects people with providers of various loan and insurance products. *Services & Technology Development* * Rock Connections - Basically a sales and support platform that handles appointments, prequalifications, generating leads, and data analysis among other things. * Rock Central - I will generalize this as “business support”. HR, administration, etc. * Rocket Innovation Studio - A tech incubator to gather and engage top talent and ideas. **Recent Acquisitions** RKT, through Lendesk, acquired Finmo back in October of 2020 ([https://finance.yahoo.com/news/rocket-companies-subsidiary-acquires-fast-182042594.html?guccounter=1&guce\_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce\_referrer\_sig=AQAAALnvnNBoglSnmMP0O61AqgXBJokNS53LjJYuG3NvYKhayp4I6ZH2RpfmFUbSsCAU4xmnBNGMTwiEG-Ly29EabVy1-OjPIGfkYoQ3389gn3Edebs9sIwWOy1tPzqjRwOwwGA\_PWg0cNzEFCe7HBTilMwADUT\_y0QxWw8vizWecGcv](https://finance.yahoo.com/news/rocket-companies-subsidiary-acquires-fast-182042594.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAALnvnNBoglSnmMP0O61AqgXBJokNS53LjJYuG3NvYKhayp4I6ZH2RpfmFUbSsCAU4xmnBNGMTwiEG-Ly29EabVy1-OjPIGfkYoQ3389gn3Edebs9sIwWOy1tPzqjRwOwwGA_PWg0cNzEFCe7HBTilMwADUT_y0QxWw8vizWecGcv)) Finmo is a rapidly growing Canadian digital mortgage platform and this acquisition I think was perfect - it shows RKTs dedication to embracing a fully digital experience, and making sure they’re the ones leading that charge. **Management** I do not have much to say here, aside from this. The RKT team is not the new kids on the block, they have decades of industry experience. Also, I value leaders that make people feel valued. And on that note, under CEO Jay Farner Quicken Loans has been in the top 30 of Fortune’s “100 Best Companies to Work For” list for 17 consecutive years. **Financials and Growth** When it comes to the numbers, RKT is killing it. I don’t want to just spout a bunch of numbers that anyone can easily go look up so here’s a couple that stood out to me from the Q3 earnings announcement and related data: $4.63 billion in revenue, which is 163% YoY growth. From that revenue, they beat EPS estimates with $1.21 for the quarter vs $1.09 expected. Net income was $2.4 billion which represents a YoY growth of 365%. Closed loan volume YoY growth was 122% to $89B. Net rate lock volume was $94.7 Billion (101% growth). RKT has brought in $13.1 billion in revenue in the first 3 quarters and seems to be on track to close out Q4 with yearly revs above $15 billion. That’s awesome but what I really like is that they pair this amazing growth with **$3.5B cash on hand**. That’s great because I want them to be able to scale as they grow, and make acquisitions as needed (see Finmo) to ensure they can keep that growth going without getting overextended and failing to capitalize. RKTs ability to recapture clients is one of the keys to their future success in my uneducated opinion. Their recapture rate is 4.6x the industry average. The Q3 earnings transcript includes a statement by the CEO on how when interest rates fall, retention rate falls, refinance activity is larger. The high recapture rate RKT has serves as a natural hedge to their retention of existing clients because their recapture is so much higher than average in the industry. Quick aside - RKT announced a $1 billion share buyback program. They’ll be able to repurchase shares from time to time starting Nov10 2020, ending in two years. I don’t love the idea of share buybacks because I think this can be detrimental to actual business growth for the sake of shareholder value. However, with the large cash position RKT has (and it doubled from December 2019 to September 2020) I think this is a reasonable way to deploy some of that cash for now. Ok so what about valuation using DCF, free cash flow analysis, something like that? Honestly I’m not convinced this is as useful as some people make it out to be. It’s nice to know what the numbers indicate, but I don’t spend a lot of time worrying about an exact price target based on anything like this. That said, you can crunch the numbers yourself or check out something like the Finbox resources: [https://finbox.com/NYSE:RKT/models/dcf-growth-exit-5yr](https://finbox.com/NYSE:RKT/models/dcf-growth-exit-5yr) **I don’t believe that fair value estimate for an instant**, but it's a part of the puzzle to consider. Finbox has various models you can check out, but it’s also just a nice place to view aggregate data other than directly from the SEC filings. **Product Channels** RKTs direct-to-consumer channel is their main source of revenue right now, but I think they will be successful in their efforts to grow their partner channels as well. Why do I say that? Numbers don’t lie: * Direct-to-consumer Q3 growth: 131% YoY ($53.5B closed loan volume) * Partner Network growth 127% YoY ($29.6B closed volume) * Adjusted Revenue for Partner Network is up 502% YTD vs 2019 ( see Q3 earnings transcript) The partner network volume is a little over half of the direct-to-consumer volume but the growth rate is just so damn juicy. That revenue growth is hellathicc. **Current Market and outlook** Right now, rates are low. The average 30-yr mortgage fixed rate is 2.92% ([https://www.cnbc.com/2021/02/03/mortgage-refinancing-surges-but-high-home-prices-stop-buyers.html](https://www.cnbc.com/2021/02/03/mortgage-refinancing-surges-but-high-home-prices-stop-buyers.html)) I cannot say how long interest rates will remain low but I believe RKT is positioned to continue to grow regardless of what rates do moving forward. They just cover so much of the space, and they do it with a focus on applied technology. Here’s some blatant speculation. I think as we move into 2021 and the vaccine becomes more prevalent, millennials will buy, sell, and borrow against real estate with renewed intensity. I think RKT is uniquely positioned to capture that market. **Positions**: RKT shares. Cost basis of $21.14.

thetagang

It's a company that's been trading sideways for over a year. It's a thetaganger wet dream, especially if the bull sentiment catches on. I hadn't considered it, but I'll probably start selling CSPs this week. Thanks for the detailed DD.

qfeit9

How Does an Economist Get Up-to-date News Without Going Insane?

My friend is an economist who tries to stay updated with the latest economic news for his job. He mostly watches major news channels and tickers on TV. However, a lot of the media on major news networks is decidedly negative, sensational, biased, and not entirely accurate (usually by omission) and it is making him go insane. It is affecting his mental health, making him more afraid of our world, extremely depressed, and causing him to develop views that aren't accurately reflected in society. I really worry about him and wish he could be happier. There has got to be a better way to get up-to-date economic information. Do y'all have any ideas?

AskEconomics

I read Marginal Revolution daily. Also, I have tailored my Twitter and Reddit feeds to bring me the most relevant news. It's hard to pick through the noise manually, you gotta have systems and filters in place.

yd462u

What happens to countries who raise taxes on the wealthy?

I live in the UK and a big debate here has these 2 sides: 1. We should raise taxes on the wealthiest people because it will raise a lot of money that we need to fund public services 2. We should *not* raise taxes on the wealthiest people, because it will scare rich people and entrepreneurs away from living in the UK, so we’ll end up losing their money entirely I know you could make ethical arguments for both opinions but I am wondering from an economic point of view, which one of these is actually proven to be more correct? I.e. which option ends up better for the overall economy? And do wealthy people really leave because of taxes? Personally I can’t imagine choosing my country to live in just based on taxes but maybe other people would idk Edit: Also I realise “wealthiest people” could be defined a lot of different ways so I am open to any information about that Edit 2: I think my question is actually: **Do rich people really leave a country because of high taxes?**

AskEconomics

See here for some past threads: https://old.reddit.com/r/AskEconomics/comments/ia7k24/is_there_an_actual_smart_way_to_tax_the_rich/ https://old.reddit.com/r/AskEconomics/comments/kjawbh/will_increasing_the_taxes_on_the_rich_hurt_the/ https://old.reddit.com/r/AskEconomics/comments/m8ev88/what_are_ways_in_which_it_would_be_feasibly/ Generally speaking, relatively moderate (about 60%) taxes on income from rich people are unlikely to do significant harm. There are additional measures you can take to make that more effective (make it harder to leave the country, etc.).

h0272j

Any black people in here? If so, what was your story? Any unique challenges along the way?

Just looking for a different perspective. Full disclosure: I am a black person. It’s been a bit lonely. I have often been the “token” in my peer groups, at work, and in school. I’ve been in my line of work for 10 years (we serve law firms) and have only done deals with 1 black client. Just wondering. Edit: Someone has asked for my story and I figure it’s only fair that I also share. I’m 33. $1.2M net worth. I own a small portfolio of real estate (about $2.5M worth) and have worked mostly internet marketing over the last 10 years. I’m currently working on starting a business. COVID-19 as well as some office politics has forced me to start thinking about my next move. We have about $200k in stocks and I’m sitting on about $150k in cash. I have a goal to hit somewhere between $5M and $10M net worth by the time I’m 50. I grew up in a small town. In a way, I believe that I am lucky. I had an innate desire to learn and I thoroughly enjoyed it. As a result, I did very well in school. My nerdy ways kept me out of trouble and, with time, teachers took a liking to me. Because we were poor, I spent most of my nights going to work with my mother. She drove a school bus during the day and was a janitor night. I helped her clean at night until my freshman year of college. Some nights were tough; we’d get home at 2 in the morning and I’d still have to be ready for school in the morning. I’m thankful that she had always put school first because she knew it was my ticket out. This experience did teach me the value of hard work and the experience of working toward a dream. She always wanted to buy a house some day (and she eventually did). When I graduated, I was awarded the Gates Millennium Scholarship (full ride to any university in the country). I will say that this was my greatest financial advantage. I came out of college without any debt and I joined a small startup right out of school. It didn’t IPO or anything, but I was able to watch, learn, and get a bit closer to the money. While growing up, I read any books I possibly could about money and tried my hardest to execute. I got to a place where I was making six-figures at a pretty young age which made me comfortable enough to try my hand at real estate. If I lost money, it wouldn’t put me out on the street.I didn’t have mentors, I didn’t know anyone else that did it, I just trusted the math. Regarding unique challenges specific to being black: 1) The feeling that in order to reach the same level as many of my colleagues, I have to hold myself at a much higher standard. (I.e. it’s difficult for me to feel relaxed, mainly because I am the only black guy). My work is performance based and while on business trips I have colleagues that will get shit-faced drunk and do embarrassing shit as a result. I don’t think I can do that. The consequences for me are much greater in my opinion. 2) The feeling that many of my colleagues have greater financial support from family than I do. I gotten recommendations for expensive items, only to find out that it was a gift from a family member. I have colleagues who’s parents have helped them with down payments for homes, paid for vacations, paid for weddings. I’ve had to cover all of those expenses myself. We once asked my mother-in-law to buy a mattress (in her own house) for my wife and eye and she was so mad, she didn’t talk to us for the rest of the weekend. 3) The constant fear of irrational judgement from non-black people who don’t know me. I live in a nice neighborhood. We are one of three black families in the entire neighborhood. This is embarrassing to admit, but I spent $15k on landscaping because I knew that I was the only black person that lived on a corner lot, off of the Main Street. Therefore, people would see me, and potentially judge my yard it wasn’t pristine. 4) The fact that I will have to take care of my parents in old age. They don’t have enough money to retire and it’s too late for them to do anything about it. Many of my colleagues won’t have to think about this or have concerns about it. 5) Because I’m the only black person in my entire company and have been for over 10 years, the surprising lack of awareness or understanding. Having said that, I understand that businesses owners and coworkers don’t have to care. It’s about getting the work done and making money. But the flip side to that is how this plays out during happy hours and the stories that are shared about past experiences. 6) The lack of exposure to the inner workings of how things work, mainly because you come from of lower social economic status. Mistakes are made, sometimes embarrassing ones that may also have social consequences. I will add this, I like thinking about money because I feel that it can be an equalizer in many ways. It won’t solve all the problems but it will help my family sit on a more even playing field. Edit:I want to thank everyone who has contributed to the conversation. It has really been eye-opening. The response has been greater than I ever imagined. Please keep the comments coming. To respond to a point that seems to be recurring, I do recognize that a number of these issues are not race specific and have a bit more to do with socioeconomic status. However, I would add that they are a significant enough part of the black experience that they cannot be ignored. While I will admit, that I may have a bias of viewing these issues through the lens of my own race, it certainly (in my opinion) should be part of the conversation. I largely raised these points because I had a feeling that they would resonate with other black people in this sub and it would help to spur conversation.

fatFIRE

We are here. Well, I am. Already FatFired $5mil+ (combination frugality, salary in tech and concentrated equity investments yielding more than W2 total compensation), age 50+. Immigrants parents from East Africa. They brought me here at age 5. So I am an immigrant too. America is the greatest country in the world -- not perfect but better than any other. Find another country as vigorously supportive of free speech as the USA. None, my friend. None. My journey included Ivy league education and top 10 MBA program. Was a very good student but not the best -- they are truly geniuses around. I was single minded though and intellectually curious enough to achieve and honor my parents -- they sacrificed so much for me and my sibling. I could not let them down. It is the way for all children of motivated immigrants, regardless of skin color, etc. I had benefit of watching my immigrant father become a millionaire with in 25 years of landing in the USA with nothing. True, good/tough guidance and parents matter (and it is so unfortunate many do not/have not -- subject for another day but in short, putting blacks in public housing ghettoes was the worst mistake of the post WWII to Great Society era --'urban renewal' used as containment policy of blacks). Yes, I definitely had help too via job connections, etc. I honor those relationships too. Seen whites do it too ad nauseum; yeah, there is kinship in similar skin color, religion, background, etc. So what? It exists in all groups and all regions of the world. I learned to live with it. I did not let my 'blackness' or navel gazing thereof get in my way. America challenges you to be more than your demographic -- to be better than what ever loser may think the worst of you, teachers/professors included. So I was sad. Sad to read your story and see that as successful as you are, you still need mental support because you are hyper aware of your blackness or feel lonely because they are not more people like you and your wife around in your area. This thinking suggests impostor syndrome or some other self conscience thoughts that you are not worthy because RACE. You are more than your skin color. Escape non-productive introspection. Open and embrace the world you live in and the neighbors/coworkers/bosses who value you. If it doesn't work out, move! i am not saying racism or cultural ignorance does not exist but it's a lot better society than decades ago. Share yourself more too in this society. You will be pleasantly surprised. Your children will take it to the next level in social confidence, independence and race-neutral achievement. America will be even better for it.

9nw4kl

What is Kaasy

The KaaS blockchain network defines the infrastructure of the current hardware-based, decentralized, democratized, skill-oriented global computing system and algorithm market that is currently used for the adoption of crypto money ... Today, thousands of computer systems are used for crypto currencies, but neither GPUs nor other components have been specifically created for this purpose. Therefore, most of the available resources of these systems are inadequate. Carry out an existing GPU mining hardware, as well as other processing tasks such as crypto-money mining, machine learning and co-processing power - rewarding both events - making RIGs even more profitable. This machine learning will be used in Artificial Intelligence processes that will produce ıla machine functions Bu. When new machine functions are used in a new dataset, the machine gains skill awards to the block chain for learning. This process runs on a Distributed Infrastructure Service architecture, divides the workload between multiple miners and optimizes the minimum runtime with minimal data flow. All this system represents the information as a service and the backbone KAASY ... [https://kaasy.ai/faq/](https://kaasy.ai/faq/)

crypto_currency

Blockchain keeps accurate records, authentication, and execution while AI helps in making decisions, assessing and understanding certain patterns and datasets ultimately engendering autonomous interaction. That's the Kaasy says yes to the both. You too should be part of that platform that works.

9nw4kl

What is Kaasy

The KaaS blockchain network defines the infrastructure of the current hardware-based, decentralized, democratized, skill-oriented global computing system and algorithm market that is currently used for the adoption of crypto money ... Today, thousands of computer systems are used for crypto currencies, but neither GPUs nor other components have been specifically created for this purpose. Therefore, most of the available resources of these systems are inadequate. Carry out an existing GPU mining hardware, as well as other processing tasks such as crypto-money mining, machine learning and co-processing power - rewarding both events - making RIGs even more profitable. This machine learning will be used in Artificial Intelligence processes that will produce ıla machine functions Bu. When new machine functions are used in a new dataset, the machine gains skill awards to the block chain for learning. This process runs on a Distributed Infrastructure Service architecture, divides the workload between multiple miners and optimizes the minimum runtime with minimal data flow. All this system represents the information as a service and the backbone KAASY ... [https://kaasy.ai/faq/](https://kaasy.ai/faq/)

crypto_currency

The system of cutting edge depends on an abilities arranged framework that capacities on the stage’s equipment that is additionally being used for digital currency mining. Kaas AI is hoping to focus on the making of an open-source information blockchain dependent on an AI-environment with its cash.

9x1yxs

ESO Wallet - E-COMMERCE MARKET

Indonesia's e-commerce market is estimated to reach 52 per cent of e-Commerce in the Southeast Asia region. From Nielsen's percentage entitled Indonesia Ocean of Opportunities for Overcoming Dead Win and Riptide 2017, Indonesia's e-Commerce in 2025 will reach the US $ 46 billion, equivalent to Rp 612 trillion compared to 2015 which able to reach the US $ 1.7 billion. The large population of the middle class, increasing internet access, the growth of small cities, and the limited access to the retail market make domestic e-Commerce overgrow. In 2015, the electronic transaction market in Indonesia was less than one per cent of total retail sales, but by 2025 it will increase to 8 per cent of total retail transactions. The total e-Commerce of six ASEAN member countries in 2025 will increase to the US $ 87.8 billion compared to 2015 which only reached the US $ 5.5 per cent. Not only that, digital transactions in these countries will all reach more than the US $ 4 billion. https://i.redd.it/peq275ngwby11.jpg [https://e-so.co](https://e-so.co/) \- [ESO Reddit Account](https://www.reddit.com/r/EntrepreneurShop) ​

crypto_currency

Users only need NFC devices that have been programmed by ESO without having to carry such striking devices like smartphones, etc. The financial future is before your eyes, and ESO will make it come true.

fttzxn

My Broker (Questrade) called the police on me after I refused to take down posts criticizing them

This is kind of part 3 of what's been happening so here are some links to the first 2 posts as well as a link to the original post on WSB about this story: Original post - [My broker (Questrade) wants me to sign an NDA saying I won't talk shit about them after offering me $1200 USD as compensation for losing $50000 from outages](https://www.reddit.com/r/wallstreetbets/comments/frz0fp/my_broker_questrade_wants_me_to_sign_an_nda/) Post #2 - [Questrade Legal Contacted me](https://www.reddit.com/r/wallstreetbets/comments/fsnubq/contacted_by_questrade_legal_team_for_permission/) Post #3 (Original post on WSB)- [Got a call from police regarding "threats" to Questrade last night... I was read some of the posts you guys made on their sub](https://www.reddit.com/r/wallstreetbets/comments/ft80y4/got_a_call_from_police_regarding_threats_to/) So in the original email where they mention legal action they accused me of threats, extortion and defamation. >"We ask that you remove these posts immediately and you cease to use social media to post defamatory and misleading statements about Questrade in an attempt to extort funds from the company. If you do not remove these posts, you are put on notice that this will become a legal matter. Our legal department are already investigating two prior posts you made where you stated that you were ready to "burn down the building" as well as making the following statement: “ if I can’t get my money back I’ll be sure they lose an equal amount in whatever way I can.''" Obviously the quotes in the email don't provide full context but the cops understood that and read it back to me. Paraphrasing here but this is the comment regarding burning down the building: >What is going on with Questrade support? This is such a joke. It pretty much feels like all they're saying is "too bad so sad" and "fuck you". Honestly getting tired with this.. I feel like I'm going crazy... getting ready to burn down the building. What a joke So obviously I was saying it as a figure of speech in a time of frustration and not serious in anyway regarding it but regardless Questrade took it to the police. The other comment about "if I can't get my money back I'll be sure they lose an equal amount in whatever way I can" was meant as in them losing potential/current client's commissions. Obviously I didn't mean any harm which I clarified in my reply to the original email. Basically the police cautioned me and said they don't think I was serious. The call I got was around 1:30am EST and I asked if they usually call this late and the officer said that they were just getting to it cause they had more pressing matters (assuming COVID19). Just a waste of police resources in general if you ask me. Especially during this time. Like the guy from the TradeDesk said to me in an email... >"To keep things in perspective, the world is reeling from a tragic situation. Thousands of people have lost their lives. Our staff have been working around the clock to help our clients get through this unprecedented crisis. In response to our genuine attempts to find an amicable solution, you have threatened and insulted our staff. I urge you to think about your actions." I would urge Questrade to think about their actions. The officer also asked me if I was the one writing posts about "Questrade killing someone's wife"(?) and I think something about Hitler but I was able to clarify that it wasn't me writing those posts and it was other people who were likely upset. Just find it pretty ridiculous that police had to waste their time going through screenshots sent by Questrade of their sub... Not sure why they would waste the police's time with this but it ultimately resulted in nothing. It was, in my opinion, obvious that those comments were both said out of frustration and I removed them (along with all comments) at the request of a Questrade employee as well anyway. I think what people should take away from this though is how poorly Questrade is treating its clients. If I were to phone them and be upset I don't want to be scared of potentially having a criminal charge brought forward on me because they took something I said out of frustration seriously and involved the police. Honestly think their handling of this matter has been incredibly unprofessional throughout. Upsetting to think this was a company I used to admire and recommend to countless people. Even just a few days before all this happened I was recommending them to friends - https://imgur.com/a/DHVOHhE It's amazing to me how poorly they've handled all this and how in less than 3 weeks my opinion of them has done a complete 180. What a joke. I'm sure you guys worked this out for yourselves but just want to point out how it's weirdly convenient that they saw the "threats" last week but the police only contacted me after I refused to take down my posts about them... (15 hours after the deadline Questrade gave me to take down the posts) Proof I was contacted by police since some people think I am lying about it- https://imgur.com/a/rVU3KfR ________________________________________________ Guys if you want to help get the word out and potentially save other Canadians from signing up with this nightmare of a broker **please tweet this thread at Questrade or Business Insider or marketwatch or bloomberg or anyone else that can write about it.** I don't have an active twitter account so can't really do it myself but would appreciate it immensely. I think it's important for Canadians to know that they could potentially get contacted by the police if they say something to their broker out of frustration or anger. People should know what kind of company they are dealing with. You can also email the News Tips email on sites with links to these threads if you want. Thanks guys. edit: To contact cbc: https://www.cbc.ca/mediacentre/contact and gopublic@cbc.ca ______________________________ Edit 2: To those saying I'm in the wrong. I can agree that I shouldn't have said some things but what I want to point out is this I understand that but if they were worried about the threat why did they wait until after my second round of postings to bring it up? Why wasn't I contacted by police sooner regarding it. How is it that police only contacted me about 15 hours after the deadline they gave me to take down my posts had passed? If there was a concern of safety they had screenshots of the posts Thursday March 26 at 5:53 pm EST at the latest. How is it police only contacted me April 1st at 1:16AM EST? 13 hours and 16 minutes after the deadline had passed. Police also had screenshots of posts made on Mar 30 and Mar 31. Obviously I can't know but it seems like they only went to the police after I refused to take down the posts. Here's a more clear timeline: Step 1 - lose money Step 2 - post about it on /r/Questrade (and only /r/Questrade) on every single post and warn people Step 3 - mod on /r/Questrade asks for my number Step 4 - TradeDeskGuy calls me to talk to me Step 5 - TradeDeskGuy says he's gonna see what kind of compensation he can get me Step 6 - TradeDeskGuy asks me to remove my posts while he is "going to bat for me" (no joke he really said that) >While I review your complaint below can you do me a solid and remove repetitive posts on wherever you posted online. You can keep your original complaint if you wish. Your entitled to vent your frustration but there are limits to that. We have thousands upon thousands of happy clients which you were probably one of prior to the outages and you spamming the boards is giving your bias. It is not a fair representation of Questrade nor does it help when I go to bat for you. >I was told you already apologized to those responsible for responding to social posts so I thank you for that. >Thanks Step 7 - I comply and delete even my original complaint Step 8 - Receive 1200USD offer Step 9 - Decline offer and post about what happened everywhere I can think of Step 10 - Get asked to remove my posts again (by TradeDeskGuy): >I have just been notified that you have posted information from our private discussions on Reddit. These discussions were confidential and constituted good faith attempt to resolve your complaint. Your Reddit posts are inaccurate, misleading and contain defamatory content. As we discussed, you incurred a loss as a result of trading in high risk options, which you failed to mention in your posts. >We ask that you remove these posts immediately and you cease to use social media to post defamatory and misleading statements about Questrade in an attempt to extort funds from the company. If you do not remove these posts, you are put on notice that this will become a legal matter. Our legal department are already investigating two prior posts you made where you stated that you were ready to "burn down the building" as well as making the following statement: “ if I can’t get my money back I’ll be sure they lose an equal amount in whatever way I can.'' >If we do not receive your confirmation by 12pm on March 31, 2020, that you will discontinue posting defamatory content on social media, you will leave us no choice than to commence legal action. >To keep things in perspective, the world is reeling from a tragic situation. Thousands of people have lost their lives. Our staff have been working around the clock to help our clients get through this unprecedented crisis. In response to our genuine attempts to find an amicable solution, you have threatened and insulted our staff. I urge you to think about your actions. Step 11 - I don't Step 12 - Mar 31 12pm passes Step 13 - 13.5 hours later I get a call from the police regarding the "threats" that I had deleted in Step 7 I think Step was the wrong word to use in all this but does that clear up the timeline for you?

investing

I am going to have my mother and brother take their business to another company. They both have a substantial amount of money with them I will have them move ASAP, I'll help them with that tomorrow morning. They will no longer do business with a company that does petty things like this. Terrible.

ry83hz

The Greatest FUD Ever Told

I've been thinking a lot since last night. Cause some shit is just not adding up. For months I've sat here and lauded options, I've tried to point out how they apply massive pressure to the options writers (market makers), Authorized ETF Participants, Volatility Swaps, and ultimately those short GameStop. I have spent countless hours explaining how January presents an opportunity for retail to use these leveraged positions to apply pressure to theses entities at a time when they are weakest and their positions are most exposed. I've stood my ground in the face of the massive FUD campaign thrown at u/criand, u/leenixus, u/Turdfurg23, u/zinko83, u/bobsmith808, myself, and many others, these last several months. My viewers/followers and I have been called shills, pickle lickers, anti-drs, simps, and liars. I have had my discord, YouTube, and reddit posts repeatedly taken out of context for what I can only describe as "hit pieces" here on this sub. Yet, I held firm to my thesis because I believed in it. I've taken down my "monetized links" and stopped sharing links to my DD to stop "brigading" because my posts got too many upvotes, I've sat by while hours of research were flaired as "possible DD" and "technical analysis" in an effort to discredit it, because a small vocal group of people pushed very hard for the mod team to do so (hard enough that they couldn't be ignored). But, I kept posting, because I wanted as many people to know as would listen. I have been posting on this sub since the day Warden walked away for "school stuff: and long before the drama that later ensued. I had not done anything different than I had done for the previous eight months, besides post a DD about options... Last night GME ran up $45 dollars at it's peak on the back of 890k volume in after-hours, for what I can only describe as **absolutely no fucking reason**. * XRT begins it's threshold process today, not last night. * GameStop didn't release any press statements, whatsoever. * FTDs are still minimal till next week. * The "news" articles that came out last night didn't tell anybody anything they didn't already know. **So, I have to sit here and ask myself, Why?** Why go to the effort of such a massive cover-up, why burn $112 million dollars worth of puts bought in the last week to stabilize price while low volume FTDs were covered? **Because the other day** [**this video came out**](https://www.reddit.com/r/Superstonk/comments/rww52i/wall_street_veteran_charles_gradante_calls_out/)**, confirming what Thomas Peterffy had said** [**earlier this year**](https://gmedd.com/opinion/interactive-brokers-gme-was-headed-to-the-thousands/)**, and suddenly vindicating my DD and thesis on retails power through options.** All of this at a time when GameStop's price is lower then it had been all year and options were cheap. So what really changed? Why did they shift their tactics so rapidly? # People started buying options https://preview.redd.it/j1wfpsf3taa81.png?width=922&format=png&auto=webp&s=00761419d612cfd02afd7cfb2a0e954a7f36e208 Not the 0-DTE or cheap weekly shit retail normally buys, far dated ATM and Slightly OTM calls, **the ones with the good delta**, the one's that put massive pressure on their long-term synthetic hedging strategy. Even the degenerate gambler's at the sub-that-shall-not-be-named started FOMO'ing yesterday. So their response is simple, it is direct, and it is effective. # They are pricing retail out, they are gonna pump IV enough on the back of their fake media epiphany, to turn off the buy button one more time, pricing retail out of those exact far-dated calls that put the most pressure on them. Worse yet put pressure on GameStop to announce something to correct their false narrative. They are exposed, cornered, and desperate. u/yelyah2 is already showing an increase in Delta Sensitivity again, the last time it spiked they shorted an entire sector... ​ I've always viewed MOASS as self-fulfilling, if retail wanted it badly enough they could take it. To me, this entire movement has been a strategic cornering of an overexposed short position. Well, here they are making mistakes, taking risks, cornered, desperate. **Are you going to let them catch their breath?** ​ \- Gherkinit 🦍❤️ https://preview.redd.it/n772nn0bw9a81.png?width=2280&format=png&auto=webp&s=af3d3ce8528b04332935c326c135f4f444b06556 **Disclaimer** *\*Options present a great deal of risk to the experienced and inexperienced investors alike, please understand the risk and mechanics of options before considering them as a way to leverage your position.* \**This is not Financial advice. The ideas and opinions expressed here are for educational and entertainment purposes only.* *\* No position is worth your life and debt can always be repaid. Please if you need help reach out this community is here for you. Also the NSPL Phone: 800-273-8255 Hours: Available 24 hours. Languages: English, Spanish.*

Superstonk

They have been running away from the Calls on the Options Chain for the past month, tanking the price with everything they could with the plan to hold it beneath the majority of the Calls throughout December and January (where Apes had options purchased expecting a run from the FTD cycles). They clearly were willing to burn their ETF source to the ground to get it there, but they didn't care - it was game over if those options started requiring hedging & price runs into gamma ramps started. Survive. One more month. One more week. One more day. That's what they've been doing this entire year. FOMO into shares by retail is easily handled. Retail doesn't move the price by buying. Lots under 100 don't affect anything. Lots that come in in bunches of 100 can be split up and processed by the MM to avoid price movement. Options chain purchases however, do move the price. FOMO into Options, like we started to see in the degenerate sub, would be their ruin. So, the play is to jank the price & spike IV. Make the options that hurt (further dated calls - Feb and out) them expensive af. Absolute desperation stakes now. You think that other sub & degen retail give that much of a shit if Calls are more expensive, *if* they think there's massive profit to be had from a squeeze? Instituions, like JP Morgan, already piled in with shares an options - and directly signaled a squeeze. We have major banks and Prime Lenders shedding all their puts & loading up on calls and shares. It's too late for them now. FTD's need to be filled starting either today or Monday. Those ramp up buy pressure. The needle moves up and existing calls start to come in the money. Requiring more heding. Moving the needle. We're in the elevator & the doors are closing. We've been hammering the penthouse button non stop, we're finally going to start ascending :D

7efsm2

Just lost my only parent today at the age of 19, I don't know what my first steps are.

Hello, I only recently came back to my college dorm after having to drive back home to talk to officers to inform me that my last parent has passed away. I do not have any other adult relatives to rely upon. I will admit right now, I am naive and young. I don't know a single thing about the real world yet and how financing works. I don't know what responsibilities I bear now that I am alone. I'm just looking for mostly financing advice on what I have to get done quickly as possible so that I do not have to pay hefty fines or debt later on. This is all the information I know so far. I am in the New Jersey area. I'm estimating my father only had 3 or 2 thousand dollars saved, maybe even less. He owns a 2008 car. I am not sure if he had life insurance. I am not aware of any loans he owes. For sure he has bank accounts, but I am not allowed by the police to retrieve my father's wallet. (For now) We lived in someone's basement, and we don't pay rent, because of certain reasons, it's a complicated situation. If anyone needs further information please pm or comment, I will respond as soon as I can. (Edit: I woke up this afternoon and I didn't expect this to blow up. I thank everybody for their supportive comments and messages. It really means a lot to me and I'll try my best to read everything.) (Edit 2: I never thought I would receive so many thoughtful and helpful messages and comments. I feel a lot more comfortable with all the love that's been shown. I read every single message and comment as much as I can. Because I feel so grateful towards all of you guys, I thought that would be the least I can do to respect you guys back. Thank you, from the bottom of my heart. You guys really showed me there is still light in life.)

personalfinance

My condolences. To reconstruct what debts he may or may not have owed, check his last few months of bank statements. You may also be able to order his credit reports. The good news is that while his creditors have a claim on any assets he had, they don't have any claim against you. For example, if he owed $20,000 on the car, but it was only worth $4,000, they can't come after you for the other $16,000 (unless you wanted to keep that particular car for some reason.) If he left massive medical bills, the hospital budgets to take those losses. Some unscrupulous debt collectors do try to convince people to pay off debts that are not theirs. Don't fall for it, and get everything in writing. Also, talk to your school's office or councilor. They probably have some resources for you. It is going to take a lot of time to get everything settled, but it shouldn't take your money.

zjt1vw

Are trade unionists right, that the companies they work for have large enough profits to raise all their wages?

Are trade unionists right, that the companies they work for have large enough profits to raise all their wages? My understanding was a lot of businesses operate on very slim margins. But in the UK (and elsewhere) there is a wave of trade union strike action. Across all sectors from trains, to nurses. All are demanding higher pay. Which seems perfectly fair on an individual level giving the cost of living crisis. They claim that companies are making huge profits, which should go to workers. Is this generally speaking true? Are they making large enough profits for these above inflation pay rises?

AskEconomics

The reason you're not getting any answers is because it's impossible to formulate a general answer that applies to every sector/company, let alone to every country with its own economic intricacies. If you can give an example of a specific company, we could look up its financial reports, but without a clear target this is a very difficult conversation to have without getting overly political.