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o14y4f

Why is JPMorgan stockpiling cash if they expect inflation?

JPMorgan chief executive Jamie Dimon said on Monday the investment bank is sitting on $500 billion in cash in anticipation of higher inflation. ​ It has been "effectively stockpiling more and more cash" in anticipation of investing at higher rates rather than putting money into Treasuries and other investments now, he said at Morgan Stanley's US Financials, Payments & Commercial Real Estate Conference. ​ "We have a lot of cash and capability and we're going to be very patient, because I think you have a very good chance inflation will be more than transitory," Dimon, the longest-serving CEO among the big US banks, said. ​ Why? ​ Inflation means fiat is worth less, no? So why stockpile fiat?

AskEconomics

Because inflation that is not transitory will be met with a response of tapering from the fed — when this happens and they increase interest rates, it will set off a chain reaction of events. The most important one(s) in the context of your question is it will make businesses harder to grow because of higher lending rates, and it will push much of the markets back into bonds. You you could at that point (arguably) get a better rate of return on a fixed income (in theory, less risk) instrument rather than risk it in current markets. This all means there will be a correction (who’s size is unknown but sounds like dimon is betting it will be on the big end), which is what he’s hoping for to put that extra cash to work

hgdyom

I am a failed real estate investor. Here's what I learned.

Hi! I just closed on the sale of my second investment property, and I'm officially "out of the game". I read this sub religiously for two years before making a leap and buying property. So I thought I'd come back here and share what I learned and what I should have done differently. My story is very common: high income, high cost of living area, property here is crazy expensive, want to diversify, etc. I started looking for places to invest. After a couple failed attempts and about six months of research into cities I decided on a Midwest city. I flew out there and met a property manager and realtor (business partners) and eventually bought 2 duplexes. I was super excited to start my real estate empire! I ran the numbers hundreds of times. The rents were almost double the payments. What could go wrong? Then reality hit. There was always something happening with the properties. Always. Sometimes big stuff like the AC breaking. Stupid stuff too. Every time the PM sent someone it would be another $200-300 out of my pocket. We had two evictions (across 4 units total) and unit turnover was 10k every time, and that's after I pushed back on most of the stuff the PM insisted on "fixing" (like replacing a shower head that worked just fine. why?!). Good months, I got 80% of the rent I had been counting on in those spreadsheets I spent so much time on, but there were a lot of months where there was nothing coming in. So what does it mean when you have a mortgage on two properties with no money coming in? Risk. How long can you remain solvent? The properties were supposed to be net positive, instead I never even bothered putting them in the income section of my budget sheet because it was so unreliable. I realized that I have no stomach for the degree of risk that comes with increased debt. I once thought that I would buy one property per year. I can easily afford the down payments. But each one is another amount that becomes a tighter noose around your neck if / when the tenants don't pay. I sold my first property after the tenant got evicted. I sold the most recent one after I had a dream that covid caused the economy to crash to 2008 levels and it lost half its value. I just don't have the stomach for that level of risk. Lessons learned: ** Do not invest out of state unless you have multiple, personal connections that have worked with the property manager in the past. I still don't know if they fucked me over or if I got unlucky with the properties/tenants. I suspect it's a bit of both. They certainly padded the to do list when turning the units over by at least 50 percent. I was charged $400 to haul away the debris after one turnover. ** Get a separate property manager, realtor, and attorney with no connections to each other. You need checks and balances. ** Understand how much risk you can stomach. Know yourself. I have a "fuck you money" amount of savings in cash because I'm just inherently not a very risk taking person. You don't want your investment to keep you up at night. ** Talk to the PM before signing anything on what the process is to end your relationship with them if things go south. Document it. ** This one is kinda random but if you're trying to keep your investment a secret from family, put it in an LLC. Wholesale vultures called my estranged father trying to get him to sell them his property in <city>! Which was just great when I purposefully didn't tell anyone about the investment to keep my financial situation under wraps. So, in the end, I'm a failed real estate investor. Due to property appreciation I basically broke even on one property and made maybe $20k on the sale of the other, so it was just a collosal waste of time for the number of trips across country, all the transaction fees, etc. Hope this was useful info for someone. Like I said, I never told any of my friends or family about any of this so Reddit is all I've got to get this off my chest.

realestateinvesting

I think it is the relationship between Property Manager and investor. Both have different goals and I believe an antagonistic relationship. PM makes money when investor is screwed. I have seen excitement only when there is repairs involved. I also feel a lot of PMs are in the property game. The better tenants with good scores and jobs do not even make it to you and will land with the PMs personal property. Not always the case but I think a possibility. Motto is to stay local if possible. Control is everything. Being able to drive and verify repairs and get multiple quotes is important.

u7eute

Netflix

Hey, Netflix fell to $267 a share after hours, after a high of almost $700 in october 2021, which makes me want to look into it. Do you reccomend any good reading material to get a insight about the industry? Thanks

ValueInvesting

Just because it’s fell doesn’t make it a good buy / good value. Netflix has been subject to huge hype and has a PE of 32 (pre earnings) - any negatives in an earnings can bomb the share price like we have just seen in after-market hours. I’d do a lot of research before investing in high PE companies as large drops are hard to stomach for most people 👍🏼

lw1zgd

Roaring Kitty, CFA

Has anyone else watched Roaring Kitty's YouTube channel? Aside from the GME events, which I agree with his analysis when GME was a $4 stock, the quality of his content is really top-notch in my opinion. He goes through his process in detail and it is clearly heavily rooted in value investing. Not trying to stir the pot on anything related to WSB, GME or any other stock for that matter. Just wanting to shine the light on great content that I think we could all benefit from. Anyone who has seen his content agree? [Roaring Kitty - YouTube](https://www.youtube.com/c/RoaringKitty/featured)

ValueInvesting

Watched a couple of his videos and fully agree. He’s a legit value investor who performs thorough DD and understands the market well. The whole GME thing blew up into something crazy, which he never intended. He states his bull thesis and notes the short interest could also result in a short squeeze at some point.

l7iorh

GME Overnight Pajama Party Megathread

Yo, health check time: - Get proper sleep - Eat proper food - Stretch occasionally - 💦 HYDRATE 💦 I'm sure we've all been glued to our screens all week, but please make sure you take care of yourselves. If you promise to do a good job, we can take turns piloting the rockets 🚀🚀🚀

wallstreetbets

Listen to me. Hedge fund dicks. 1%. And who ever the wants to read this. I will sell every position I own tomorrow. Red, green... I will sell. I will use all my capital to buy gme tomorrow. Fuck you hedge funds and 1%. I have been hit by every single financial and economic in the last 25 years. That’s been my adult life. You have taken every fucking thing from me. And now I will spend every single grand I have buying GME. What do I have to lose? My money? Well you fuckers made damn sure over decades that I’d never be able to own a house or live the life that you’ve been able to enjoy. But blocked from us. What do I have to lose? My future? You’ve tried to make sure to that I have to work my whole life being a gear in your machine. If I have to spend more time working to make it back, well I’d still have to if i believed you weren’t criminals working against me. But here’s a chance to show the world your corrupt hustle. Fuck you. What do I have to lose? The chains you want me to wear. So fuck you. I’m buying G M E. 🚀up your fucking asshole.

oevhep

Sonar ($PING) | 💻 By Investors For Investors | CMC listed today | Join our AMA x Trubadger.io on 7/7/2021 | Team doxxed | 5K+ holders | 1.3m cap | Blockfolio fasttracked 💎

**Game Changing Dex Tool, Made By Investors For Investors!** We are building an **AI-driven data aggregation platform** which monitors BSC and Ethereum network tokens, **providing holistic analysis and tracking capabilities** for any given token – All within a carefully crafted UI. Description: The **Sonar Platform** is a multi-chain analytical tool, which presents its users with an interface that tracks social network/influencer trends, vets contract code, price charts, creates price action alerts, executes orders, as well as feature other innovative and unique solutions, including the **implementation of artificial intelligence for investments**. For example you can use the platform to buy a token the second it is listed on Coin Market Cap or a Binance listing is announced! The Sonar Platform intends to serve as a **crypto analysis one-stop-shop** and provides users with all the **necessary tools** and **information** need to make **smart investment** choices and to reduce the likelihood of traders falling for rugpulls and honeypots. In progress: \-Techrate audit in progress \-Blockfolio coming soon \-Web3 wallet in development \-Dev hire announcement soon ✅ CG listed ✅ CMC listed ✅ Partnership with Cryptotoken Media ✅ Doxxed Core Team ✅ Real Use Case (Utility Token) ✅ Web3 demo ✅ Clear Roadmap and Whitepaper on Website Sonar Token ($PING) Distribution: \-Total Supply: 4,000,000,000 \-Team Tokens: 4% \-Development/Marketing: 4% \-Pre-sale tokens: 56.2% \-Token Burn and Launch Fee: 5.6% Transaction taxes: 💰 3% tax to Liquidity Pool to create a stable price floor 🤑 2% tax to Redistribution 👨‍🔬 2% tax to Sonar Innovation Lab Wallet 👨‍💻 3% tax to Sonar Marketing and Development Wallet ✉️ Telegram: [https://www.t.me/sonar\_official](https://www.t.me/sonar_official) 📷Instagram: [https://www.instagram.com/sonar\_token/](https://www.instagram.com/sonar_token/) 🐦Twitter: [https://www.twitter.com/SonarToken?s=09](https://www.twitter.com/SonarToken?s=09) ⭕️Reddit: [https://www.reddit.com/r/sonarplatform](https://www.reddit.com/r/sonarplatform) 🎮Discord: [https://www.discord.gg/7kuNHxZeCP](https://www.discord.gg/7kuNHxZeCP) 🎥Tiktok: [https://www.vt.tiktok.com/ZSJ9oBTDo/](https://www.vt.tiktok.com/ZSJ9oBTDo/) 📽Youtube: [https://www.youtube.com/channel/UCixkuolcOuQdEnn80E-tyew](https://www.youtube.com/channel/UCixkuolcOuQdEnn80E-tyew) 👫Facebook: [https://www.facebook.com/Sonar-Token-107371881570425](https://www.facebook.com/Sonar-Token-107371881570425) 🌐 Website: [https://www.sonarplatform.io](https://www.sonarplatform.io/)

CryptoMoonShots

By far one of the most amazing new projects on BCS. It's a new crypto dashboard that tracks tokens. This could easily be a 100 million dollar coin no doubt. Check out the whitepaper and the website guys it's amazing. The team is also huge and always on the voice chat in telegram for any questions.

leq2kt

A new milestone! 100k net worth

I am now officially among the 6 figure club (provided there isn't a pullback this week) . 50-50 growth and dividend. With an average monthly dividend of 368.68$ and growing. Hoping to reach 128k by end of year and $400 monthly average. Made possible through aggressively saving on 40-50k a year since 2017. I can't tell friends or family because they hate hearing "rich people" issues/achievements so here I am telling you guys instead.

dividends

Congratulations on making it and realizing that you will likely bounce around that mark for a bit. I hit it in late 2019 and took a big paper hit from the COVID dip and am just now reaching that high water mark again. I redirected a portion of my investment allotment toward mortgage reduction but never turned the funds off completely. In retrospect I would have been better off doubling down on investing but didn't have that certainty.

m3bjty

34, making 35k a year 5k savings.. have I failed?

So I’ll be 34 in June. I’ve been out of work for a while and on disability but I just recently started feeling better and landed a great job I enjoy! I’m only making 35k a year and I have nothing in retirement. I have about 5k saved up. I rent from a friend right now $800 a month and my car is 300 and insurance 200. I’m working on my credit it’s 633 right now .. I don’t know what financial goals I should have everything seems out of reach. Real estate is so expensive in my area . I’m trying to be content with what I have but sometimes I feel like I’m a failure and should be doing better.. any advice?

FinancialPlanning

First off take a breather and actually give credit to yourself. You have a job that’s paying you. You have $5k in the savings, not a whole lot but it’s something. $35k is indeed low but in the meantime you can begin building your portfolio by investing into 401k if your employer offers it or having a Ira and contributing every pay check. Also try looking to find yourself a higher paying job. You asking this question about your financial well-being makes you smart and not a failure. Trust the process and believe in yourself. Takes time to build wealth

xtto23

Why do banks have anything less than 100% reserve requirements?

[This argument for mandating 100% reserve requirements is compelling to me.](https://blog.p2pfoundation.net/the-100-reserve-requirement-for-banks-a-proposal-by-herman-daly/2010/05/08) It makes me wonder why banks were allowed to do anything else in the first place. Why is this allowed?

AskEconomics

In essence, reserve requirements are not going to be 100% for the same reason that we won’t require insurance companies to have a 100% reserve: the chances of a simultaneous withdrawal at 100% is almost infinitesimally small, and the chances of it happening across the whole financial system would imply we were on the verge of complete societal collapse already. So what do we get from giving up the 100% reserve requirement? Now banks can do things with your money- they can offer loans (generally good for the economy that we have credit) and they are happy to hold your money for free. What would happen if the reserve requirement was 100%? As banks can no longer loan out your money, they’d likely want to charge you (potentially exorbitant) fees to go through the process of holding and securing it. Loans would have to come entirely from financial capital already owned by lenders, which would massively reduce the supply of credit. All in all, the benefits outweigh the risks.

l6wbbj

Can you say "CLASS ACTION LAWSUIT". Fuck you RobinHood

Edit 6: I created r/ClassActionRobinHood for people to gather around so that my reddit won't crash under the sheer force of autism that my inbox is receiving. This post was just out of frustration and memes over RHs bullshit corruption; I am not a laywer nor am I claiming that i'm going to create a class action by creating this post. You retards do as you wish, feel free to join if you want. Hell, use it as a backup in case something happens to WSB, I don't give a fuck Edit: Stop giving me these beautiful awards you retards, use the money on GME. This is the way. 💎🙌💎. GME GANG FOREVER 🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀 STRAIGHT TO THE Nth DIMENSION BOYS 🚀🚀🚀🚀🚀🚀 Edit 2: I will be acquiring more shares today. I have 17.7k liquid money in my TD. Bought 15 shares @327. Waiting for another dip to yolo 12.7k into the rest. I have 18 shares holding on RH with average cost of $112. 1000EOD Boys. Fuck the shorts, fuck the establishment. Melvin and friends can suck my fat diamond encrusted cock. Don't forget to leave RH a nice review on the app store thanking them for your gains Edit 3: I convinced my mother to yolo her stocks into GME early on @90. She still continues to add onto it and as of now she holds 147+ shares and is profiting well over 60k. I don't know what her cost average currently sits at but if my mother can 💎🙌💎 then so can you. She's more diamond-handed than me. Do your part brothers. We'll all be feasting on tendies from our golden plates and washing it down with Shitron tears as we wipe our asses with Melvin bucks by end of next week. Edit 4: I can't believe how much this is blowing up. I wasn't expecting it. But while I have the spotlight, I just wanted to thank every single one of you from the bottom of my heart. You tards have done absolute wonders for the community and started a financial revolution fueled by memes and autism. I read all these stories about how this community has helped people pay off their debts, care for sick loved ones, allowed people to give back to their local communities, and so much more. You guys are the true unsung heroes of this generation and are some of the most wholesome degenerates i've ever seen. This fight isn't about just tendies anymore, its about justice and equality, it's about sticking it to the corporate elites who run the world. Don't let these greedy scumbags take what's rightfully yours, for too long the little guy has been pushed and shoved around but now it's our time to shine. Keep up the good fight and don't back down. 💎🙌💎 for days boys, WE WILL NOT STOP UNTIL WE SEE ELON SHOOT A GME THEMED ROCKET FILLED WITH THE BURNT ASHES OF THESE BASTARDS TO MARS. FUCK SHORTS. THIS ONE IS FOR THE HISTORY BOOKS! 🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀 GME 5,000 IS NOT A MEME NOW. POWER TO THE PLAYERS! EDIT 5: Stop spamming me with awards and upvotes, you retards are crashing my inbox! Put forth all this glorious energy into GME. TL;DR: GME to 1,000 EOD, GME 5000 EONW. THE SUQEEZE HAS NOT SQUOZEN YET, BUY AND HOLD 💎🙌💎🚀🚀🚀🚀🚀🚀🚀🚀

wallstreetbets

Robinhood will file for bankruptcy before IPO at this rate Edit: since this has gotten big. HOLD UNTIL SQUEEZE. THEN WE SELL AND FIND A ROBINHOOD REPLACEMENT. Right now holding is in our collective best interest.

hwdfwg

Today at 34 years, 1 month and 2 days old - I hit 100k in my 401k (with company 4 years), and 1M net worth.

I've been with my company for just shy of 4 years. I started working for them on Sept 28, 2016. I thought I was going to hit 100k in my 401k back in March but damn you Corona virus! Ive been waiting for this day for sometime and also - same day, we hit $1M net worth. I am so damn proud of my husband and I. Back in 2013, my husband and I bought our first rental property on an FHA loan and 3% down. We lived in a tiny 1 bedroom for 2 years and the first floor covered our mortgage 100%. We purchased our second rental property in 2017, and put 20% down and moved out 1 year later, profiting $1890 between the two properties a month. Now we are living in our 3rd rental property, and have been living well below our means. We save 60-70% of our income which immediately goes into saving and retirement. When all of my friends are purchasing new vehicles, and spending copius amounts of money on their wardrobes, I'm content with spending money on experiences with my family that we will remember forever. Currently we are looking for a single family home and though we were approved for $700k, I'd feel most comfortable in a home worth $375-$425k. It's simple. Live below your means. I'm proud to say we have $245k in cash just waiting for houses to come on the market. I'm hoping for a housing market crash so we can buy in cheap, but we will see. I have no one to tell, except Reddit but it's 6:35am, my daughter's asleep, we have one more baby on the way (due Jan 2) and couldn't be happier right now.

FinancialPlanning

Congrats and very happy for you and your family! Its is strange how easy and , dare I say, consequence free it is to brag about major/useless purchases, but looked down up on if you talk about how big your savings account is.

lw68ai

Wealth Tax proposal discussion

With the recent wealth tax chatter I am curious to hear from people that might actually be impacted ($50m NW). What is your thinking here? 2% Wealth Tax with compounding can have huge consequences.

fatFIRE

I'm a ways off from this threshold, but I'll say this: No amount of money can shield you from seeing tent cities crop up in a beautiful public park. Or a 7 year-old selling lemonade to raise money for brain surgery. Or a mother of 3 driving for Uber Eats at night to make ends meet. Income & wealth inequality is reaching modern historic levels, and personally I don't like the affect this is having on the city, state and country that I live in. I'd rather be slightly poorer in a fairer society.

a3o87k

Javvy is a universal wallet that unifies access to cryptocurrency exchanges into a single, comprehensive application.

Javvy is the full integration of a universal wallet connected to numerous exchanges presently available to the cryptocurrency market. It eliminates the need for multiple accounts and applications while taking advantage of their respective benefits. Javvy brings confidence and clarity to the user as cryptocurrencies approach mass adoption. * A Universal Wallet * Built-in Decentralized Exchange * Quick & Easy Registration * Superior User Experience * User-friendly Security Focus * Numerous Advanced Features

crypto_currency

The [JAVVY](https://javvy.io/) project deserves attention in the world of cryptocurrency. [JAAVY](https://javvy.io/) stands out among its competitors in this field. A team of professionals is always, always one step ahead. ICO has a good rating in the blockchain community.

l8xd80

What are some of the investing lessons which you would like to share from your life?

I began investing some five years back in 2016.At that time,the principal source of my income was just some measly internship stipend which I used to receive working in a CA office.That was the first time I had ever invested in equity markets and it seemed fascinating.During the course of my investment journey of these five years,I would have been able to say I had a decent run if not for the following blunders which I would like to share with every newcomer out there: **1)Blindly investing on the basis of new when it has already been priced in:** In the beginning of July 2016 just during the launch of GST,I was reading a lot about the way GST is going to transform the logistics sector.Hence,I ended up investing a large sum of money in *Snowman Logistics* despite the stock having a massive bull run in the months before.The stock had already run up \~90% in the last few months from \~Rs 50 in February 2016 to Rs 90 in July end,which was the price at which I invested.Funnily enough,the price at which I invested is literally the highest it has seen in the last five years.I finally had to cut my losses and exit the trade after waiting for long. **Lesson learnt**:No matter how lucrative the news seems to be,its important to have a look at the price action preceding to it. **2)Blindly investing on the basis of concepts like PE ratio without understanding the context** Like many newcomers,I took metrics like PE ratio as a gospel and invested with the notion of cheap PE=undervalued.This led to some disastrous investments like *Dena Bank* and *Brightcom Group*(erstwhile Lycos Internet).I simply filtered industry wise stocks on the basis of PE and went with investing in several stocks with the cheapest PE.In lure of investing in the stocks which were undervalued based on my understanding,I failed to look at some vital aspects like promoter quality and business prospects.Like above,both Lycos and Dena bank wiped out a lot of my capital. **Lesson learnt**:While theoretical metrics are important they should not be relied upon blindly **3)Not respecting stoplosses and holding poorly performing stocks for long term** Somewhere around 2017,I invested a major amount in *Ashok Leyland* and *AB Capital*,both of which I intended to hold for the long term.Out of these,while Ashok Leyland returned with some good returns over the year,AB Capital was a disaster and was negative most of the time right after its demerger from Grasim.I continued to hold both of them and while AB was already negative,Ashok Leyland also began to reverse and soon turned negative.Since I planned to hold both of the stocks for a long term,I didn’t bother to cut my losses when I should have and when a return to their investment prices seemed impossible,I had to exit the trade with huge losses. **Lesson learnt**:Even if there is a plan to hold the stocks for a long term,it is important to have a reasonable stoploss **4)Catching falling knives** Most of you would recall the price action of *DHFL* after some fund houses sold its commercial paper due to liquidity concerns.The share crashed from the \~600 levels to \~300 levels in a single trading session.I ended up investing a lot of money thinking DHFL to be too big to fail and again,lost a lot. **Lesson learnt**:Market’s wisdom is supreme and when a stock corrects to such levels in absence of an overall market crash,its NOT a time to buy. **5)Day trading like its gambling** When I first learnt about day trading and margins.It appeared nothing short of a way to earn quick riches and as luck would have it,I made a lot of profit in the beginning mostly as a fluke.However,I had the habit of overleveraging my trades and I would use the highest possible margin available with my capital.I also began to like the adrenaline rush which came with trading and would take \~30 trades in a day!Losses were imminent and coupled with charges which accompanied such high volume of trading,I again lost a lot of my capital. **Lesson learnt**:Margin is a double edged sword and over trading is a sure shot way to burn capital owing to charges. While most of the people in here would already be knowing these,I thought about writing it for the new entrants in the stock markets. Similarly,what are some of the investing lessons from your life would you like to share here?

IndiaInvestments

1. Remember that you are not smarter than the average investor. You ARE the average or most likely below average investor. So just go ahead and SIP in a low-cost wide index fund. 2. Start young. 3. Stay invested in thick and thin. Time in the market beats timing the market.

6nlay8

As a veteran investor

I lurk here because I am entertained by the enthusiasm. Many of you remind me of myself 15 years ago. I think many of you younger guys who read this sub just learned an important lesson, so I'm going to bring it home. NOBODY KNOWS WHAT THE FUCK IS GOING TO HAPPEN NEXT. TA is good at interpreting the past, but if it was able to actually predict the future then somebody already wrote a script that can suck the value out of that play faster than any of our monkey brains can. This is true regarding ETH, BTC, the price of gold, the S&P, bond yields, you name it. Trading is not much different than gambling in the short term Two Warren Buffet quotes (I think): "The market can stay irrational for longer than you can stay solvent." In other words the market doesn't give a shit how smart you think you are, you either need the ability to wait or you should not be in it. "The market is a voting machine in the short term and a weighing machine in the long term." In other words, what we just saw over the past 2 months was the voting machine. Now the weighing machine is kicking in. Perhaps we were a little overbought, fine. If you have time to wait then you'll see another cycle happen. If not, then you shouldn't be in it. Good luck, young bucks. Keep reading these subs for fun, but remember: NOBODY KNOWS WHAT THE FUCK THEY ARE TALKING ABOUT.

ethtrader

That first quote was actually from the economist John Maynard Keynes. Buffet is a fucking hero, though. Some great quotes: >"Our favorite holding period is forever." >"What counts for most people in investing is not how much they know, but rather how realistically they define what they don't know." >"We have long felt that the only value of stock forecasters is to make fortune-tellers look good." >"You shouldn't own common stocks if a 50% decrease in their value in a short period of time would cause you acute distress." > "You only have to do a very few things right in your life so long as you don't do too many things wrong." The last one is actually one of my favourites. The most successful investors are typically not those who seek to add points to their portfolio, but rather those who seek to avoid losing points by managing risk. If you can make your investment strategy about not losing points, you will make longterm gains.

qhou3x

Just Sold a Bunch of Junk

Back in the spring I was an idiot and made some dumb moves. You know what happened, something about monkeys and diamonds… Anyway, it was the future and I wasn’t going to be left behind. Like I said, I was an idiot. Jumped on a pump and dump basically…along with some other ‘future tech’ plays. Oh wow, that was smart /s. Anyway, I’m sick of it. I was primarily a value investor before and that’s what I’ve been doing since about June. I’m finally comfortable again and have high conviction stocks that I want to buy more of. Those big red -50% or more plays in my portfolio have been eating at me. They’ll come back right? Right!? Well, would I buy them today at this price? No. So today I finally bit the bullet and locked in those ugly losses. It’s ok though, I think. The idea is to shunt what money is left from those trades into higher convictions stocks. Anyway, I was really hesitant to rip off the bandaid but I do feel relived so maybe there are some of you like me.

ValueInvesting

There’s two kinds of investors, those that pay tuition on occasion and those that lie about it. Everyone goes to school every now and then. The difference between the successful and the broke is that the successful learn while they are there.

kn0a22

Could the rise of 'work from home' cause more jobs to be off-shored to cheaper countries?

I would certainly imagine so. As labour becomes more digital it would be very easy for a company to off-shore much of their work load to cheaper countries. I'd assume highly regulated fields will be unaffected but unregulated fields like IT, customer service, software etc could easily be undertaken remotely. Anecdotally I've already seen this happening in software engineering jobs due to severe corporate budget cuts.

AskEconomics

I don't think the effect of the current crisis will be bigger than before. On one hand, yes, more companies should think about outsourcing workers, but what stopped them from doing that in 2019? Time zones, language barriers, and work culture. So while more companies will think about outsourcing, I doubt we will see a drastic shift. But what could happen is overall wage reduction for remote workers if they move out of the expensive areas like the Bay area into more rural lands. A lot of people would take that pay cut if rent was cheaper. And also lets not forget other issues with remote work that will force companies to call everyone back into the office when they can. Productivity and cooperation reduction is already noted in different sectors.

snrrsy

Economists, what is the single biggest misconception you feel the "Econ 101" crowd has about economics in the real world?

By Econ 101, I do not mean people who are ignorant of the study of economics. I mean individuals who draw incorrect conclusions about economics based on a failure to recognize the simplifying assumptions we make in introductory courses. Here is something I believed early on in undergrad when I (wrongly) thought I knew everything there was to know about economics: "printing money" essentially has a 1:1 relationship with inflation. I never considered that the velocity of money could fall!

AskEconomics

Economics isn’t about clocking in GDP levels, or making sure the stocks are up; it’s prime purpose is to help people, and to make them better off. I hear a lot of liberal types say that economists fail to understand that people are…. people. That being said, a majority of my studies revolve around measuring/improving social welfare, and on the theory side, maximizing social welfare. Conversely, conservative types seem to get all of their economic ideologies from Micro 101. The problem with this, is the policies suggested in introductory courses are made under the assumption that the markets are perfectly competitive, which is not typically the case in the real world.

7jtnmh

UPVOTE if you're sick of KRAKEN's performance!

I understand that all exchanges have to deal with the huge influx of new users. However, since I use a lot of exchanges, the performance on KRAKEN is the worst by far compared to other exchanges. It doesn't matter whenever I try to use it, it's not usable. Yesterday I tried Coinbase during the same time and it worked perfectly. I used to defend KRAKEN as I am an old-school user, but guys, get your shit together. And why isn't there more communication on when KRAKEN is going to implement it's new and more stable trading system? God damn it, I am seriously considering leaving KRAKEN for good... you can't rely on it ... #frustrationintensifies EDIT: oh wow, didn't expect so many upvotes. would be nice if someone from KRAKEN would comment on this topic

ethtrader

my god, I try to login every so often but always get cloudflare errors.... then if I'm finally able to login, I try to transfer my remaining funds to my wallets but it just says withdrawals are suspended. between like 25 more cloudflare errors. man I'm so tired of this... :( on the other hand I hear they are doing some upgrades in december... wish them a lot of luck and hope it will be better sonn :)

kr2xb5

Has anybody achieved a NW of $5-10MM on $150-$300k income?

A recent post [about $10+MM net worth](https://www.reddit.com/r/fatFIRE/comments/kqgr3n/decamillionaires_of_rfatfire_how_has_your_life/) got me thinking, has anybody here gotten to $5-$10MM net worth off boring investing (index funds), high-ish savings rate (40-60%) and 150-300k income? I posted a response on that thread but figured this would get more responses, I'm 27, net worth of 400k and earn 150k (180k for 2021). A basic compounding interest calculator says that I'll get to 5MM by 46 and 10MM by 55 if I save 70k a year (2021 projected savings) at 8%. How realistic is this? Anybody have a similar path? EDIT: wow! Thanks for the silver! I've never gotten one of these before, I guess this means I can fatFIRE now right?

fatFIRE

Husband and I make 140k each. HHI is 280k. Our net worth is 5.5M. We maxed out on our 401k and IRA starting in our 20s. Lived on one income. Never received an inheritance or stocks from companies we’ve worked at. We will hit 10M by 50 if the market keeps up. Edit: Thank you for these awards! In response to a few questions. We are in our 40s with young children. We own our house with no mortgage or debt in a MCOL area. Value is 400k which I did not include in our 5.5M net worth. We don’t own any other real estate. Retirement accounts are 54% of our portfolio. I didn’t know about Fire until a few years ago. We never thrived for it. We are just natural savers and luckily we started investing early. Compound interest worked for us.

b0ku1b

According to the Federal Reserve, the average net worth for Americans between the ages of 65 and 74 is $1,066,000, however, the median net worth is $224,000. Under the age of 35 was an average of $76,200 and a median of $11,100. The average is skewed by a small percentage of affluent Americans.

https://turbo.intuit.com/blog/real-money-talk/net-worth-by-age-704/ I honestly thought that the medians would be higher. But it seems that people have much less than I thought. How will all these people retire on just ~200k or less? Edit: if you guys are interested in seeing where you stand, there are calculators like this one https://dqydj.com/net-worth-by-age-calculator-united-states/ **you "only" need 110k in the 25-29 bracket to be in the 90th percentile!** Edit2: also, choose your major wisely https://www.newyorkfed.org/research/college-labor-market/college-labor-market_compare-majors.html Remember to be compassionate...!

investing

Retirement isnt the myth the retirement industry sells you where you have unlimited free time to travel the world and pursue all your passions. The only way it becomes that is if you plan out your retirement from the day you start your first job. Most people dont give a shit until theyre like 45. Hell the article itself has the advice to someone in their 30s that "maybe" they should start putting money in their 401k. If they started in their 20s theyd have well above the average saved.

pe2jus

I sold a covered call that went ITM. My shares just got called away with 50 DTE. I wasn't expecting such an early assignment. Does this happen often?

Open interest for this option is still more than 150, so I guess I just got unlucky? EDIT: I sold the call in March. The expiration was Oct 15 with a strike price of $115. I collected a premium of about $4.5 a share. The underlying was $108 when I sold the call and $131 on the day I got assigned. I was thinking about rolling it into next year to collect a little more premium and delay the capital gain (I've held the shares for while). Just thought I'd have more time to decide.

thetagang

You got lucky you mean? Someone just gave you 50 days worth of premium for absolutely nothing. You can buy the underlying at market price and pocket the difference. This is a win by the strictest of definitions.

vyr2qx

I'm gonna be sick...

I tried to buy a house. I met with a broker and we crunched all the numbers: income, expenses, savings, assets, etc. He gave me a figure to work with. I purchased a house in Sydney for 100k less than what he said I could borrow. Signed the contract and everything. It's a week before settlement and the broker has just called me. The loan application came back **300k** short. Apparently the bank won't accept the percentage of my salary that's commission (even though I can prove to them that I've received 100% of it for the past 3 years). The broker knew that part was commission. I was very upfront about my entire financial situation. How does someone miscalculate to that degree? Now I have one week to come up with 300k before I can "just switch to another bank that accepts commission as salary." And my broker's solution? Personal loans from people I know... I think I might pass out. ​ EDIT: I'm very aware that this is a bad situation. Venting anonymously online is a coping mechanism. Yes I was misinformed. In my defence, if you saw my salary and the price of what I'm buying, it really doesn't look daunting. I also live at home and have near-zero expenses. At the time, it did not look like a longshot. Internet strangers, I invite you to cringe alongside me. It's weirdly helping ​ UPDATE: [https://www.reddit.com/r/AusFinance/comments/w5ry40/update\_im\_gonna\_be\_okayhopefully/?utm\_source=share&utm\_medium=web2x&context=3](https://www.reddit.com/r/AusFinance/comments/w5ry40/update_im_gonna_be_okayhopefully/?utm_source=share&utm_medium=web2x&context=3)

AusFinance

Brokers are known to overpromise, which is why people obtain pre-approvals or have the contract subject to finance. Your best bet is to contact your conveyancer, look for other brokers to see if they have any ideas, or you might lose your deposit.

7jj0oa

I'm donating 5057 BTC to charitable causes! Introducing The Pineapple Fund

Hello! I remember starting at bitcoin a few years ago. When bitcoin broke single digits for the first time, I thought that was a triumphant moment for bitcoin. I watched and admired the price jump to $15.. $20.. $30.. wow! Today, I see $17,539 per BTC. I still don't believe reality sometimes. Bitcoin has changed my life, and I have far more money than I can ever spend. My aims, goals, and motivations in life have nothing to do with having XX million or being the mega rich. So I'm doing something else: donating the majority of my bitcoins to charitable causes. I'm calling it 🍍 The Pineapple Fund. Yes, donating ~$86 million worth of bitcoins to charities :) So far, The Pineapple Fund has/is: * Donated $1 million to Watsi, an impressively innovative charity building technology to finance universal healthcare. * Donated $1 million to The Water Project, a charity providing sustainable water projects to suffering communities in Africa * Donating $1 million to the EFF, defending rights and privacy of internet users, fighting for net neutrality, and far far more * Donated $500k to BitGive Foundation, a charity building projects that leverage bitcoin and blockchain technology for global philanthropy. If you know a registered nonprofit charity, please encourage them to apply on the fund's website! While I prefer supporting registered charities, I am open to supporting charitable causes as well. Check out the website :) # 🍍 https://pineapplefund.org/ All transactions are posted on the website for full transparency :) ----- edit: **Pineapple Fund does not donate to individuals. Please do not post your addresses or PM.** edit 2: Thanks for the gold! Highlighting new comments is a really useful feature <3

Bitcoin

Spend 1% to hire some people to do the charity research for you. EFF, Khan, it's all great, but it's a power law distribution and they are getting 90% of donations. Because marketing, and it's hard to find smaller charities who you can trust. It takes time and can be risky. But it's very possible that with a little research they can have much bigger impact for the same money. GiveWell does something like that but I would suggest trying on your own. If you do, please post the results on the fund site or here. You probably could find reasonable people in academic circles to do the research for you .It's a hard problem and I know you want to donate money not time, but it may be worth it. Rock on. edit. In case you need to convert your BTC to USD before donating somewhere, ask some exchange for 0% fee cooperation. They will very likely do it for publicity and these fees matter with this kind of money. edit2: instead of simply donating say $1M to EFF ask them to make a double your donation action. So you donate the same amount as somebody else during that period up to $1M. This will motivate some people.

m2mr0n

Living Off Dividends

Hello all, Curious if anybody in here has gone the route of building a portfolio centred around dividends. To this point, I’ve got a few rental properties, one full Bitcoin, and a few ETFs like xaw, xuu, vee, vcn. I’m completely ok with risk. I’m a buy-and-hold guy. But I’ve gotten to wondering what it might be like to make dividends a centrepiece of my portfolio. This will be in addition to rental incomes and equity draw-downs. Has anybody here invested primarily for dividends? What does your portfolio look like? Have you had significant regrets about this kind of portfolio construction? 27 years old, looking to retire (or semi-retire) by 2030. I put away 45-55k in savings a year. Thanks in advance; good luck out there. P.S. You folks are awesome. So many impressive portfolios and perspectives in the replies below. I hope your investments continue to work magic!

CanadianInvestor

Our country has various benefits for why dividend investing should be a top priority for each Canadian. For example our dividend tax is 30% as opposed to Americans at 50% and companies that pay 4%+ dividends are usually one of very few in a controlled market. I pick what I believe to be the best company in each sector that shows growth of dividends, revenue, income, equity, over at least a 10 year timeframe. Why care about the latter 3 you may ask? Because of my goals! My goals: 1. Capital preservation - every investor should hold their first goal in investing as being able to preserve their original investment. By investing in only high dividend yielding stocks, you risk your actual equity side of the investment because usually these companies focused on solely dividends issue debt in order to keep paying them out to attract shareholders. A quick indicator of this is happening is to check the payout ratio (should be 50-70% for traditional companies). 2. Dividend income - obviously this is the another reason why you would be looking at building such a portfolio. Try to aim for 4%+ dividend yield! I wouldn’t exclude solid companies that can make your portfolio more defensive just cause they have low dividend yields, you can always balance it out if you are creative. 3. Capital appreciation - Not sure what planet some people may be coming from but it’s not a good look to have bought a stock 20 years ago and today it’s trading at the same price. They should be at least keep up with inflation (2%) otherwise your money is slowly getting burned. To determine how you can find a company with solid capital appreciation and solid dividends, just take a look at consistencies in revenue and income growth. The portfolio: Fortis - 47 years of dividends nuff said it’s literally a linear regression, if you are really picky buy when it taps the EMA on the monthly (hint: just did a few days ago). Pays 4% dividend and ppl need to pay their power bill it’s a century trade. TD - Guess what? We have some of the greatest financial institutions in the entire world based on regulation and accountability! imo this bank is the best in Canada going forward with the highest revenue, income growth in their industry whilst continuing to pay dividends. Kinda rare to see such massive growth for a Canadian company especially a bank but this is because they are focused on our neighbours down south! RBC is a close second but I like the colour green baby $$$. Pays 4% dividend Enbridge - just lol. This industry was beaten to a pulp from our government and it isn’t a good look to be invested in. They pay a solid dividend at 6-7% and are throwing most of their remaining cash into projects that will create more renewable infrastructure. Their management doesn’t have to lie to their shareholders cause they aren’t directly in on oil so they can tell them, “look 2050 our revenue is gonna be nearly 100% renewable”. These guys are in it for the long hall - this I evaluate as my riskier bet but the high dividend yield will allow me to pick a super conservative stock that has low dividend (2%) to balance out back to our 4%. CNR - speaking of conservative stocks we got CNR it’s I think the widest moat and hardest hurdle to jump into the ring with because who in their right mind is gonna put up $100B in CAPEX to build a railroad, plus jump through all the provincial legislation hoops, and all the aborigines treaties. Yeah not likely right? CP was the only other company I considered for this sector nothing wrong with that company but I needed a purely safe bet to balance out “risk on” bets so here we are. I think it pays 2% dividend BAM.A - this is just a sexy stock honestly and it gives you exposure into real estate among various other businesses internationally without getting destroyed by crap management, large issuance of debt, and dividend baiting. This is the growthiest stock of them all and they also pay roughly 2% yield. BCE - high dividend at 6% yield, biggest telecom in Canada, 5G coming, tbh not really all that excited with where cable is going in the future so I may transition this into Telus because I see more growth through their wireless and teledoc initiatives. Manulife - this is your unsexy boring insurance company stock but hey they got great constant growth over the years and pay a dividend that meets our goal of 4% so let’s pick it up Algonquin - they got rekt from I think the texas power outage if I’m not mistaken recently? So good buying opportunity. Same sort of idea - high revenue growth, high dividend growth, only concern is the income growth this is I believe the lowest income generator based on market cap and revenue compared to the rest in the list. Also if you aren’t comfortable with so much overlap you already have fortis and BAM.A which owns BIP which owns utilities too. This you can leave out and toss more into fortis or Brookfield.

kx3det

I made $10M in an IPO from a tech startup I worked at. What should I do now?

Throwaway account but I was an early employee at a tech startup that has gone public recently. I left a few years ago and worked at some other well know companies which I’ve made some money from as well. Now I’m 32 with 8 figures but still living in a $2k apartment in San Francisco and single. Weird. It seems silly to try to win lottery another time so feels like my time as a traditionally employed mid level person is probably ending soon. Have no aspiration to be an executive of any kind unless I’m the founder. But I haven’t really planned for a different life as of yet. What should my first step be to figure things out? Maybe start going to therapy on the regular.

fatFIRE

Hey, I had a similar situation to you. Made 8 figures at the age of 27 from working at a successful startup. Lived in a $2k apartment and had a serious girlfriend at the time. This windfall will change your life dramatically, in ways you can’t even imagine today. It has taken me years to get acclimated to a new lifestyle... one that is filled with different possibilities, different opportunities, different friendships, different power dynamics, different social influence, different lovers than ever before. My advice to you would be to take it slowly. Don’t make any drastic decisions. You’re young, what’s the rush? To the best of your abilities, pretend like the money doesn’t exist for awhile. This will allow you to carefully navigate the transition and reflect at each step of the way — what kind of person do you want to be? Do you want to be a rich asshole or a kind, humble and caring? Do you want to buy a Ferrari or drive a Tesla Model 3? To be clear, these are rhetorical questions. What I’m saying is that you should critically analyze the choices you make at each step of the way, and think about what it means for the person you’re growing into. I believe this slow and steady introspection will lead you to the right path. So why not keep working your current job for now? Why not stay at your current apartment for a little while? For me, I kept my job and ended up finding deep fulfillment learning how to build effective teams and how to empower others. I stayed in my $2k apartment for a year or so, and then upgraded to a multi-million dollar house. I realized who my true friends really are. I found love. I constantly reflected on the person I was becoming, and found deeper purpose in life. That’s what worked for me, anyways. Your mileage may vary. Congrats and good luck!

vthdkr

Most of my tenants have become heroin addicts and it's really starting to piss me off.

I own 20 units with 45 tenants across 7 buildings. Over the past 3 years, I have observed more and more of them turn to heroin and it sucks. They all moved in with jobs, sobriety, and no pets. Whether it's a curled and burned spoon I find tucked away in the basement, or a p-trap jammed full of used broken syringes under a kitchen sink. Or the stink of a couch I drag to the dump after the HAZMAT team does their best to scrape the rotting flesh of my previous tenant's corpse off it. The pet-free apartments that they sneak pets into a year after moving in, and I only find out because I can smell the urine in the hallway after they stop changing the litter. The filth that comes with addiction. Destroying lives and houses one tenants at a time. I'm in a town of 20k people in the midwest. I've known some of these people for almost a decade. They were productive members of a society that was once productive, and I'm the last thing between them and homelessness. I've already had to send a few to the streets to keep their neighbors safe. Just a vent but this sucks. Drugs suck. Needles scare me, but I've been collecting them like stamps. Being a landlord is glamorous.

realestateinvesting

From a fellow landlord who has never had this happen as a landlord but used to live in a heroin riddled town of 20k in the midwest, I can empathize. Perhaps it's time to sell and upgrade to units on the nicer side of town? Not that people don't do heroin in all parts of town but it does tend to concentrate and it sounds like it's concentrating in the areas of your buildings.

9zfqpq

Navibration benefits of navicoin

BENEFITS OF NAVICOIN Holders of Navicoin will be a privilege to unlock all the functionality of the platform. Holders of Navicoin will be rewarded continuously. Purchasing products on the platform with Navicoin will attract a 30% discount. Navicoin is an access to the Navibration ecosystem thereby bringing togetherness.

crypto_currency

Navibration team is composed by a group of qualified professionals, among engineers, programmers, designers, editors, writers, speakers, translators and some other roles. These are some of the core team face

a1glod

Navibration – The Way Of Knowing The World, Reinvented

PREAMBLE The buzz about cryptocurrency is increasing, people have heard about it, and more and more people want to find more about it, and find a way to be a part of it. When blockchain technology came, so many things changed, for better, we say. So many businesses have improved, so many companies have started using crypto currencies in their work. The new ideas are coming every day. People want to invest in the new projects. We have the biggest tool in the world, and it is called the Internet. The internet is a enormous base of information where we can do anything. Internet has connected the entire world. One of these projects is Navibration, a Spain-based technology company with a patented technology that has been backed by the Government of Spain, is creating a next-generation navigation system which will redefine not only the way we move in unknown places but all of the details and secrets of them.

crypto_currency

Navibration Experiences will be a decentralized social network of audio-guided routes from different cities around the world. These audio-guides will be geolocated and will have the peculiarity that they will be narrated by the main historical figures of each city in question.

9zfqpq

Navibration benefits of navicoin

BENEFITS OF NAVICOIN Holders of Navicoin will be a privilege to unlock all the functionality of the platform. Holders of Navicoin will be rewarded continuously. Purchasing products on the platform with Navicoin will attract a 30% discount. Navicoin is an access to the Navibration ecosystem thereby bringing togetherness.

crypto_currency

Navibration is a navigation system by vibration with which an individual can move about anywhere in the world with no Internet connection or maps, and no need to look at your device. It is designed wholly for use on foot. It is a Patented navigation system. Participants of this platform will be rewarded equally base on their contribution.

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

Just like other online shop planners, ESO mall is engaged in the sale of products or services, but on this platform, ESO is more advanced than its predecessor enriched with various features that will make it easier for buyers to get goods faster and sellers to market their products or services broader again.

stvxn7

Why did Brazil fail economically, but China, Korea and Japan succeeded?

Productivity in Brazil has been stagnant for 30 years. We were richer than China in the early 1990s, but now we are humiliated in every way. Why did this happen?

AskEconomics

A failure to climb the value chain. [Here](https://upload.wikimedia.org/wikipedia/commons/b/b9/Rank_in_the_Economic_Complexity_Index%2C_OWID.svg) is a map of countries by economic complexity - the diversity of skills, knowledge, and productive capabilities in a country. From the [full list](https://atlas.cid.harvard.edu/rankings), Japan is #1, South Korea #4, China #16, and Brazil #53, behind famously commodity-dependent Russia. Brazil's [top exports](https://www.statista.com/statistics/1191541/products-exported-from-brazil/#:~:text=In%202019%2C%20Brazil%20most%20exported,U.S.%20dollars%20worth%20of%20exports.) are agricultural and raw materials, while China's [top exports](https://tradingeconomics.com/china/exports) are all manufactured goods. Contra popular belief, the bulk of these now adays are not labor intensive consumer products, but capital intensive and complex products: the top 5 are mechanical & industrial products, machinery & transport equipment, high tech products, automatic data processing equipment, and cell phones. It should be noted as well that countries like Japan, South Korea, and China are the exception, where Brazil is the norm. Countless other promising economies like Turkey, Argentina, Egypt, Indonesia, Thailand, and even India have been trapped in boom and bust cycles. Understanding this requires an understanding of the different economic strategies employed. Until 1931, the economic reputation of Japan was the same as that of Brazil today: the country of the future... and always would be. It was fueled by exports of labor intensive industrial products, silk, and rayon. The barriers to entry in this business were low and a few large companies controlled the international distribution chain, just as a few large trading firms control the exports of Brazilian agricultural and mineral products today. The result was low profits and frequent market crashes whenever the international market worsened. From 1931 to 1954, Japanese bureaucrats tested and perfected a strategy to climb the value chain and shift to more capital intensive industries with higher barriers to entry. It involved 1) limiting competition in low-barrier industries to increase the rate of profit, 2) channeling profits from low-barrier industries into "strategic sectors": the next rung on the value chain (i,e. textiles to steel, steel to machinery, machinery to consumer appliances, consumer appliances to automobiles), and 3) restricting foreign competition in strategic sectors until they could *outcompete* foreigners. This strategy was imitated by South Korea and later China. It of course had downsides. For one, restricting competition in a low-barrier industry is tantamount to imposing a consumption tax on the public: they bear the burden of higher prices. Restricting imports also increases prices until local strategic sectors can mature. Finally, in the short-term, this policy defies comparative advantage: strategic sectors begin very inefficient. It only succeeded because, over time, the "experience curve" (brief summary of the concept [here](https://hbr.org/1985/03/building-strategy-on-the-experience-curve)) changes comparative advantages over time. Understanding its advantages is less straightforward. As mentioned, industries up the value chain have higher barriers to entry, so they tend to also have higher margins, but not always. More importantly, compensation is better. Economic growth is highly counter-intuitive. Most people will interpret "6% growth" as "the average person in country X is getting 6% richer a year". In practice, it's more like 6% of the people have seen their incomes increase greatly this year, while most people's real incomes have barely changed. Assume you live in a town with a textile mill where most workers are being paid $15 an hour. A windshield glass factory opens next door and offers $30 and a sizable share of the town's incomes have doubled. The impression often given by economists is that the face of economic growth is that textile mill getting more and more efficient, when in practice it's that glass factory opening and doubling local wages. That glass factory starts with a far higher input cost than its competitors due to being on the left hand of the experience curve, but over time equalizes with them. In that time, it either requires huge amounts of capital to stay afloat, unnatural advantages like government subsidies, free land, or tax benefits, or both. Japan, South Korea, and China had their attention on building the glass factories and giving them that capital and those unnatural advantages: uncompetitive trade policies, free land harborside, infrastructural development meant to lower transportation costs specifically around a few industrial parks, hostile labor policy, and tax incentives (including tax deductions on buying their products) all but guaranteed those industries would be in the black from day 1, even if their methods were very inefficient. Then, when they became more efficient, they became dominant in export markets for a while, both because they still had *most* of these advantages (though would lose "strategic sector" privileges shortly after this point), and because wages hadn't caught up with the rest of the world. As wages rose and certain industries stopped becoming profit leaders, *they* would then become the new "textile industry" and see competition limited and profits redirected to fund a new class of "strategic sectors". The state in Japan, China, and South Korea managed a never-ending cannibalism of industries to fund increasingly capital-intensive ones. The growth model in boom and bust dependent "failed miracle economies" was very different. In Turkey and Brazil, just to give two examples, growth was typically driven by FDI. That FDI took advantage of relatively low wages, and, in some areas, relatively high levels of skill and education to create export-oriented businesses. Those businesses would then turn a profit for a while, but the influx of foreign capital into the country increased the value of the currency, and thereby decreased competitive of exports. Eventually, black balance sheets would go red and foreign investors would flee. These economies crashed into low wages and cheap currency again and once again became attractive to investors, so this cycle started over. All the while there were only very limited attempts to "collect" profits of industries further down the value chain and establish higher value chain industries: the only real initiative to do this were the establishment of a few public sector firms (on a much smaller order of magnitude than what was happening in East Asia) and periods of increased investment in education. The difference between the rare miracle economies and the mass of disappointments came down to political incentives. Too often this is oversimplified to "dictatorships focus on the long term while democracies focus on the short term": this ignores the fact that most of the world's poor countries are dictatorships. Rather, we have to adopt a nuanced understanding of Northeast Asian governments during the boom years. They were not democracies where leaders are accountable to the public (even Japan is essentially a one party state), nor were they "traditional" autocracies where the leader is accountable to no one. Rather, for thousands of years, Confucian rulers have been accountable to *the palace*. The expectation has always been that the top leader is the public face of the regime but allows his ministers to govern autonomously, controlling only who gets promoted and fired. Whenever a leader - even an absolute monarch - lacks virtue or ability, there is a long tradition of his ministers either removing him or turning him into a puppet (we've seen this even in modern years with Jiang Zemin). The result in all the Asian miracle economies was an "economic general staff" that ran the country with 10 and 20 year timetables in mind, and that was relatively insulated from politics.

l71zmm

Whether you have GME or not, this manipulation is a scary thing. It’s not right and we can’t let them win (HOLD GME!)

I know a lot of this sub obviously just trades Canadian stock which is alright. But brokers restricting our ability to buy more GME creates a scary precedent that no matter how screwed hedge funds are, they can still cheat their way out of it. A quick summary of the situation is this. Billionaires shorted the hell out of GameStop. Basically that means they borrowed millions of shares, sold them right away in hopes that they later buy them back when the price goes down. They bet on the price going down, and at this point literally owe more shares to the brokers they borrowed them from than there currently are available to trade. Aka they dug themselves into a huge hole, even doubling down as the price got higher and higher. When they finally have to buy all those shares back, it will create a short squeeze which means the price spikes up and they buy at whatever price they can (which could even be north of 1k). The only weapon they had was scaring people into selling by lying, getting media to spew bullshit, etc. There was no way out until... This morning a bunch of brokers restricted our ability to buy more GME! This created panic selling so they could get out of the short squeeze without going bankrupt. THEY ARE STRAIGHT UP CHEATING, THIS IS THE MOST BLATANT MANIPULATION! Robinhood is gonna be done after this since they’re the used broker by retail traders and people are rightfully pissed off. I just ask that everyone does what they can to not let these guys win. Even if you’re just a passive investor who only holds VGRO, you should be on our side and help us out. We know these guys never pay consequences for what they do but there are too many eyes on this. We know the stock market is rigged but this maybe the biggest attempt of cheating yet. This should be something that concerns everyone. Even emailing your concerns with every broker participating in this would help out. <3 For everyone still holding GME, remember they still need to buy back all the shares they borrowed! The squeeze has not happened yet. This morning hasn’t been fun but the best thing we can do is keep holding.

CanadianInvestor

In my opinion, if they literally prevented retail investors from being able to buy GME all day and all they managed to pull off was a 30% drop, then they don't have much hope. Once retail investors find a new brokerage that allows them to go back to business as usual, things will go back up again. Plus, it's not like the big boys saved Melvin Capital today. All of their puts are still ludicrously OTM, and they're still going to go bankrupt.

m329wn

Medivolve is growig rapidly in the lucrative Covid-19 testing market. Potential monthly revenues of US$428K

(NEO:MEDV; OTC:COPRF; FRA:4NC) **Medivolve** Medivolve is a Canadian publicly traded company that seeks out disruptive technologies, ground-breaking innovations, and exclusive partnerships to help combat COVID-19 and generate remarkable risk-adjusted returns for investors. With a seasoned executive team and renowned global advisors that provide expertise across industries, Medivolve offers investors a diversified investment in the COVID-19 medical space across geographic regions and three focus areas: detection, prevention, and treatment. Medivolve’s primary focus is to provide convenient and assessable medical services for testing of the COVID-19 virus to help combat the pandemic. Medivolve’s wholly-owned subsidiary Collection Sites, LLC continues to help consumers access its effective and convenient COVID-19 testing solution. **Medivolve’s Propietary Advantage:** * Research team Google Partner powered digital analytics * Investment team with combined experience of 500-years + * Advisory board providing wide spectrum of brilliant insight * Network comprised of experts, specialists & thought leaders * Global team of operational teams and organizations **Market Opportunity:** The global COVID-19 diagnostics market size is estimated at USD$84.4 billion in 2020 and is expected to expand at a compounded annual growth rate (**CAGR) of 3.1%** from 2021 to 2027. **Wells Fargo estimates that US. Covid-19 testing market of $157 Billion.** **Collection Sites** Medivolve’s wholly owned subsidiary Collection Sites has rolled out over 740 Covid-19 testing sites across the U.S. with partners including Simon Property Group, Brookfield, Sandor, H&S Energy Products, etc. Collection Sites provides quick and convenient Covid-19 testing in conjunction a CLIA registered lab, including rapid antigen, PCR and rapid antibody test with insurance coverage options. **There is also a significant and substantial upside per test. The testing market is highly profitable with projected ABITDA margins over 55% and potential monthly revenue of US$428K** Collection Sites offers same-day results from certified high complexity Alcala Labs with **98% accuracy**. Each site can complete up to 150 tests per cube per day at an affordable US$100 per test. The current demand for tests in the U.S. is 30 million tests per week, making the testing market extremely lucrative. **Recent News:** ***Collection Sites Launches Operating Partnership to Extend Covid-19 testing with Besser Brands*** Medivolve Inc. announced the launch of an operating model with Besser Brands in the state of Florida. Under this framework Besser Brands is initially operating 9 Collection Sites locations under the Collection Sites branding, where they are responsible for all related operating costs and systems management. In return for using the Collection Sites name, Besser Brands will pay a royalty on all tests sold. Implementing a franchise-type model will allow Collection Sites to more rapidly expand its network and leverage its infrastructure and branding to generate additional revenues for the company. ***Medivolve Closes Noble Biosciences Transaction*** Medivolve has announced that it has entered into a definitive agreement and subsequently closed the transaction to acquire 100% of Noble Bioscience Corp. Medivolve issued a total of 12.5 million Medivolve common shares to the shareholders of Noble Bioscience, in exchange for a 100% interest in Noble Bioscience. Noble Bioscience holds the agency rights to Nuturell’s Surface Shield technology in the United States, Canada and Caribbean countries. Nuturell’s non-toxic silver surface shield technology is a COVID-19 disinfectant that converts into a protective shield when air dry, killing the coronavirus among other pathogens for up to 90 days after only \~30 seconds of contact. Nuturell’s Surface Shield technology was created to overcome the limitations of standard harsh chemical disinfectants and cleaning agents that suffer from various constraints such as their harmfulness, corrosive nature and bacterial resistance. ​ Disclaimer: Please do your own research. This is not investment advice

Canadapennystocks

As a dedicated MEDV investor, this DD is full of GLARING ERRORS. If people want to see more accurate DD, you can checkout my post here : https://www.reddit.com/r/pennystocks/comments/m0003b/medv_coprf_catalyst_update_why_value_matters_more/?utm_medium=android_app&utm_source=share Biggest beefs with this: 1. MEDV has made public that they made $7.1 million in general public covid testing and $2 million in selling covid tests to a mining company in JANUARY ALONE. Which means they have realized over $9 million USD revenues in January - nearly 10x the OP's claim of $428k per month. 2. MEDV has NO WHERE NEAR 740 Testing Sites rolled out. In January they had 35 sites, selling over 70,000 tests at average $96 per test. Last we heard in February there was around 70, and most knowledgeable investors are hoping to see over 100 in March. OP I hope you edit and fix this entirely innacurate post to reflect the actual facts. Last thing people need is misinformation about this truly undervalued stock. Sources: Medivolve Collection Sites Provides January Sales: https://finance.yahoo.com/news/collection-sites-provides-january-sales-123000629.html Questcap (Medivolve) Provides Covid Testing to Kinross Gold: https://medivolve.ca/questcap-provides-covid-19-testing-kits-to-kinross-golds-russian-operations/

vteun0

Should I convert my EUR savings into USD?

I'm a software engineer living in Bulgaria right now, all of my savings are currently in euros (around 80k); I don't have any real estate properties, loans, debits, etc. Due to the recent drop of EUR value wrt to USD, what would you suggest me to do right now? I don't have time to learn how to invest in stocks (but this is something that I will definitely do in the near future), so my question is: would you suggest opening an account in USD and converting my euros to USD? Would it make sense to invest in real estate in a country such as Bulgaria? I just recently moved to Bulgaria, so I don't have a good idea yet on how the real estate market here is going, also in one year I would like to move to my home county, Ukraine, if the war will be over by that time, so I will need to sell my properties in Bulgaria (in case I will decide to buy something). Any other options? Thanks for any suggestions.

eupersonalfinance

You don’t have time to learn about investing but you are willing to gamble your 80k on the advice of some randoms on Reddit. Dude, don’t make any financial decisions until you know what you are doing. Read as much as you can before you commit to anything.

rv4axv

A News Blackout on the Fed’s Naming of the Banks that Got Its Emergency Repo Loans; Some Journalists Appear to Be Under Gag Orders

Final edit at bottom. If you are on new Reddit or the standard app, a screenshot from the final update may appear here, when it is supposed to appear at the bottom. I’m not sure why this screenshot shows at the top of the post, when it isn’t at the top, so I’ll just write here to let you know, it goes with the final link in the final update from 10JAN21, at the bottom. 🤷‍♂️ Alternatively, view this post by opening it in old Reddit: https://old.reddit.com/r/Superstonk/comments/rv4axv/a_news_blackout_on_the_feds_naming_of_the_banks/ ___ Second attempt to try to post this...will post the link in the comments below. Intro: > Four days ago, the Federal Reserve released the names of the banks that had received $4.5 trillion in cumulative loans in the last quarter of 2019 under its emergency repo loan operations for a liquidity crisis that has yet to be credibly explained. Among the largest borrowers were JPMorgan Chase, Goldman Sachs and Citigroup, three of the Wall Street banks that were at the center of the subprime and derivatives crisis in 2008 that brought down the U.S. economy. That’s blockbuster news. But as of 7 a.m. this morning, not one major business media outlet has reported the details of the Fed’s big reveal. ___ Edit: This appears to be the dataset used: https://www.newyorkfed.org/markets/OMO_transaction_data.html#rrp *(Also, thank you for the awards - I’m just glad this got some attention. The real awards should go to the authors, Pam Martens and Russ Martens, but that’s another matter, and I am not allowed to directly link the WSOP site here in the post, despite the site having an incredibly reputable, fact-based reputation for several decades now. Regardless, the link is in the comments (odd, site-wide rule, huh?). Here is what I will add: Please read the full article, I know it’s tempting to just read a headline, but this is kind of a serious matter in my personal opinion. And, if you would like this to gain more attention, please consider reaching out to your state’s representatives, consider sharing the article with those outside of reddit, etc.)* ___ Edit 2: The site was given the ol’ Reddit hug o’ death - I emailed the author, Pam Martens, explained (and apologized). I don’t think she was aware of where all the traffic was coming from. She said they’re working on a server fix, and was thankful for us bringing this “assault on press freedom” (her exact words) to the attention of Reddit users. She also has no idea why they’re banned from Reddit, as they post articles 5 days a week and have no time for a social media presence. Nice job Reddit! :) *RIP inbox, gonna take some time to sort through this* ___ **Edit 3:** How can we petition (?) Reddit admins to unban links to WSOP? No idea why it was actually originally banned, and it makes no sense. The site is great and there’s simply no reasonable, logical reason it should be banned at a site-wide level. It doesn’t seem to be subreddit specific. That in itself is insane to me. Kinda mirrors what the article is talking about, actually. This seems to go to the top (the Reddit admins), not the mods here. If the mods or anyone has any experience with appealing a ban like that, I welcome your help. *shrug* ___ **Edit 4:** Today’s article, “Redditors Raged Against the News Blackout of the Fed’s Bailout – Then All Hell Broke Loose When They Learned the Wall Street Banks Literally Own the New York Fed” was just posted. wallstreetonparade dot com/2022/01/redditors-raged-against-the-news-blackout-of-the-feds-bailout-then-all-hell-broke-loose-when-they-learned-the-wall-street-banks-literally-own-the-new-york-fed/ (Site may take a couple of tries to load) Archived version if that doesn’t work: https://archive.is/zYcb9 *(And, upon seeing a few requests, I’ve updated the flair from News -> Due Diligence. Hope this helps.)* **Nice job everyone!** ___ **final edit - Today, 10Jan22, ~10PM ET, I was permanently banned, without warning, from news sub for trying to post the following article from bettermarkets.org:** https://bettermarkets.org/newsroom/vice-chairman-claridas-resignation-confirms-there-is-an-epidemic-of-ethical-and-legal-violations-at-the-highest-levels-of-the-federal-reserve/ I’m not sure why, as this is not a political issue, and better markets is a nonpartisan, nonprofit group. Further, I was given no warning, and was told I was banned because my account had an “agenda.” I replied that my only “agenda” was exposing corruption. Here is the conversation. (*The “blank spot” in my final message to them was simply a link to wallstreetonparade’s article. The Apollo app has a bug right now where it sometimes doesn’t show the links you send in messages.*) ___ Convo: > https://imgur.com/a/nntFVwe/ If they decide to unban me I will update this, but so far they have not responded. More and more, it seems that information distribution online cannot be trusted to be fair.

Superstonk

This is now surely national security risk. The corrupt are just symbolically shouting "EVERYTHING IS FINE". All it would take is a successful media package from a foreign power set to benefit from the collapse of the US markets. Say the Russian (just as an example, hell even the UK could do it if it wanted) manage to flood their news with all the evidence the US market is now rigged and no longer a free market, run by the corrupt and flooded with fake shares. Doesn't need the US to believe it, but if the rest of the world did then security of the market collapses. No cell, no sell.

ljy0tk

What do I (mid 20’s) and my parents (early 60’s) do to prepare for a market crash?

I’m not knowledgeable enough to predict a crash, but sooo many people are saying things are overvalued and we’re in a stock bubble that I’m convinced I should prepare for a crash to happen in the next 6 months. Do you all agree? Is the basic idea to sell and hold cash before a crash and buy back in after? I have a lot of cannabis and renewable energy stocks; perhaps hold onto those and sell some total stock market index funds I have? Is there any other strategy besides selling and holding cash to prepare for a crash? Perhaps I should just hold since I’m young? What should my parents do as they’re nearing retirement? They have some Tesla and bitcoin but also tons in total stock market index funds. They’ve told me it’s hard to earn much from bonds with interest rates low. Is there a better option for them than to just sell and hope 2020 doesn’t boom? This is something we should all be considering right? Thanks in advance for any tips on this topic.

FinancialPlanning

Timing the market does not work. Period. Try it for yourself [here](https://www.personalfinanceclub.com/time-the-market-game/) For someone in their 20s, the best thing to do when the market goes down is to just keep buying more stock because everything is on sale. For your parents, the best thing to do is make sure their stock/bond allocation matches their risk tolerance. Stay the course. EDIT: Thanks for all the upvotes and awards. I definitely wasn’t expecting that. For all new investors out there, one of the things that helped me most was reading [Vanguard’s Principles for Investing Success](https://about.vanguard.com/what-sets-vanguard-apart/principles-for-investing-success/). It’s one of the best primers I’ve ever seen for how to invest over the long term.

o0b3g0

I'm pretty sure private health insurance is a scam

I'm sorry for this rant, this might be common knowledge, but I've just wasted about 10 hours of my life trying to understand how private insurance works, do I need it, and finally, begrudgingly, trying to buy it. To start, I'm a doctor, new to Australia. I have 4ish years of experience providing health care in Australia, all in the public system. From my point of view, as a provider, the public system seems to work pretty well. I have almost no experience as a consumer, though my partner has a little bit more. Under normal circumstances, I wouldn't even consider private health coverage. The existence of the medicare levy surcharge means people who earn over 90K (180K for couples) must consider it (i.e. me). Looking at plans, the most obvious thing to me is that 1) They are expensive 2) They don't seem to cover very much. Even the most expensive plans don't seem to offer a guarantee that you'll never pay out of pocket. So, even with private health insurance, if you're in a private hospital, you're *probably* going to be out of pocket. The breakdown seems to be this: The government sets out the recommended price for stuff in the MBS. If you go public, 100% is covered by the medicare. If you go private, medicare will cover 75% or 85% of the MBS. If you're covered for whatever thing you're accessing (and I couldn't find a plan that covered common things like scans or blood tests) then private health care will pay that 15% or 25% difference. If your private provider chooses to charge more than what's recommended on the MBS then you have to pay "the gap". Your insurer might cover some of the gap; they might cover all of the gap (expensive plans only); they might cover none of the gap (e.g. the specific provider is not covered by your insurer, even if you a fancy and expensive plan). I think a realistic example of this is: You have fancy insurance. You need an operation, it can wait a couple of weeks but not a couple of months. You decide to go private because you have fancy insurance. Your operation is covered, so is the 3 day hospital stay that follows. You intentionally choose to see a surgeon whose gap is covered by your insurer. But it turns out that your anaesthetist isn't covered, so you have to pay that gap out of pocket. So, in summary, you pay a lot of money for expensive insurance and you're still out of pocket. Alternatively, you go public, maybe (maybe not) wait a bit longer and pay nothing. (And I know there are plenty of anecdotes of the public health care letting people down; but there are plenty of anecdotes of the private system letting people down too.) And, to state the obvious, insurance companies exist to make money. That means on average over the course of your life, you will probably pay more to the company than you would have if you just paid for private care out of pocket. Also, I would like just say here that paying for "Extras" plans is probably always a money loser for you. I assume it's because private health insurers offer so little value for money, is the reason the government has stepped in to prop up the industry. * Carrot: [The government rebate](https://www.privatehealth.gov.au/health_insurance/surcharges_incentives/insurance_rebate.htm). A discount applied to policies based on age/income (subsidised by the Australian tax payer) * Stick: [Medicare Levy Surcharge (MLS)](https://www.privatehealth.gov.au/health_insurance/surcharges_incentives/medicare_levy.htm) A tax on high earners who don't have hospital coverage. (Extras don't matter) * Stick: [The Lifetime Health Coverage (LHC) levy](https://www.privatehealth.gov.au/health_insurance/surcharges_incentives/lifetime_health_cover.htm) This very stupid policy is designed to scare young people (who are profitable for insurance companies) into buying insurance they don't need. It also acts as disincentive for older people (who are expensive for insurance companies) to buy insurance for the first time. This government policy is designed for the benefit of insurance companies at the expense of Australians and is very gross. That grossness aside, [it probably isn't a good reason to buy insurance you don't need.](https://www.choice.com.au/money/insurance/health/articles/how-to-pay-the-lifetime-health-cover-loading-and-save) So back to me. I'll have to pay the MLS if I don't buy insurance I don't want. So, it only makes sense to buy this if it's cheaper than the MLS I'll pay. In my experience of trying to buy the cheapest insurance possible, I found the language used by almost all websites were to encourage/scare you into buying expensive plans. Comparison sites are almost all run by the insurance companies. The government comparison tool is good, Choice is good (but their comparer is only available for paid subscribers). I found the cheapest plan that would cover me in my state (the policy was not available on the insurers website, but both Choice and the government said it was available). So I got on the phone, spoke with a sales rep. He tried to upsell me by telling me that while the cheap plan is good enough for the MLS, it's not good enough for the LHC and I should get a bronze plan (which is not true). To recap: I was lied to in order to buy a more expensive version of a product I don't need, but want to buy in order to save money because of policies enacted by the Australian government at the expensive of Australian tax payers to prop up an industry that doesn't provide value for money. Anyways, for anyone who read this far, thanks for reading this rant. So yeah

AusFinance

I’m not against private health insurance at all, like many of these comments say it’s the only option to get certain treatments in a timely way. But the government bending over backwards to drive people into getting it is unethical.

pj8suc

Why Moonpot is your best Moonshot — new DeFi project developed by Beefy, winners of Binance’s Most Valuable Builder award, with a token (POTS) that gives holders a share of revenue, plus free entry to a monthly prize draw worth around $725k

**OVERVIEW** The POTS token launched in the first week of Aug 2021 so you’re still early. It’s the native token of a DeFi prize-linked savings account built and backed by Beefy Finance, who have won awards from Binance and been audited by Certik. The project has already got $73m TVL and given out $2.1 million in prize money. The token is undervalued at $7, and also gives you a share of the platform’s revenue if you stake it, as well as access to a monthly prize draw. The first draw took place on Sep 1 and was worth around $725k. Buy and stake today and you are in with a chance of winning the next big POTS prize draw (set for Sep 29), plus you get 105% APY on your protected deposit (paid daily). ​ **BACKGROUND** I started using the Moonpot platform from Day One thanks to being a long-term fan of Beefy Finance — a multi-chain yield optimizer that has won awards from Binance and been audited by Certik. They first posted about their Moonpot project in the middle of July. It’s essentially a crypto savings account that pays you interest on your deposited assets, but also puts every user into a prize draw to win big money prizes (paid out in crypto), without any entry fee or deduction on your original deposit. When I try to explain that offering to people they tell me it sounds too good to be true and must be a scam. But Beefy is one of the most proven and trustworthy projects on Binance Smart Chain so I gave them the benefit of the doubt and took the time to look into it more deeply. Essentially what they have done is take a very recognized concept from traditional finance and reworked it for DeFi. **Because Moonpot is basically a prize-linked savings account for the crypto world.** See here if you don’t know what that is: [https://www.nerdwallet.com/article/banking/prize-linked-sweepstakes-savings-accounts](https://www.nerdwallet.com/article/banking/prize-linked-sweepstakes-savings-accounts) They launched their native token at the beginning of August at a price of $1. One month on it is now 7x, but given what I’ve learned about the project from both using it and reading about it I am convinced it has much more growth to go, and is a great potential Moon Shot, still in its early stage. **FIVE REASONS WHY I THINK $POTS IS A GREAT MOONSHOT** **1.** **There is a huge prize pool paid out every four weeks to anyone holding and staking $POTS in Moonpot’s governance pot, which they call Ziggy’s Pot** Every savings pot on the Moonpot platform does two things: (1) pays out interest (2) has a regular prize draw. Ziggy’s Pot, where you stake POTS, pays out its prize fund to ten winners every four weeks. The prize money is collected from 5% of all the interest earned across the entire platform over those four weeks. This alone is a great reason to buy and stake POTS. It’s a monthly Moon Shot just for staking, and you earn interest on your deposit while waiting for each prize draw — with no deduction at any point. The first Ziggy’s Pot prize draw took place on Sep 1 and $725k was awarded to ten users. The next prize draw will be on Sep 29 with a similar amount expected in the prize pool. **2. Anyone who stakes POTS in Ziggy’s Pot earns a share of the platform’s revenue** Moonpot’s token is also a revenue-generating asset. Aside from the prize fund, another 5% of all the interest earned across Moonpot is taken by the platform, sold for POTS on the open market, and then paid back as interest to any users staking POTS in the governance pot. This is where the money for the interest comes from. And it also means there is constant buying pressure on the token. Which is another reason why I am bullish about this project’s token as a potential Moon Shot. It’s not about a quick buck. But offers a genuine chance to grow your cash. It’s like having shares in a bank. **3. Proven development team that has been recognised by Binance and audited by Certik** Always DYOR but I have great confidence this project is as safe as they come in DeFi. The development team is basically from Beefy Finance, which won Binance’s Most Valuable Builder award, already manages more than half a billion dollars of assets, and has been audited by Certik. If they were a rug pull they would have done it by now. It’s obvious from the product, marketing and branding that a huge amount of work has gone into Moonpot — which is also undergoing a Certik audit right now (https://www.certik.org/projects/moonpot). This is a team that also took their BIFI token from $70 at the start of this year to over $3,000 three months later. So they clearly know what they’re doing. They got their BIFI token listed on Binance within six months of launch, for example. **4. Great product that’s first to market with no competitors in sight** Moonpot is possibly the most innovative DeFi project on Binance Smart Chain right now. As I said before, it’s basically a prize-linked savings account. Which is an absolutely proven model in traditional finance. But this is the first time anyone has brought it to BSC. The only thing I can think of in crypto that is comparable is PoolTogether on Ethereum. But Moonpot is absolutely the first project to bring this idea to Smart Chain. It’s extremely positive to see a team bringing something new to the space. And given gas fees are so much lower on BSC it’s already set to be a much bigger success than PoolTogether. Even in the space of one month Moonpot already has $73m TVL. We’re still early so I can only imagine that number getting bigger, and the POTS token price growing with it. **5. Exciting roadmap and project partners** Remember, Moonpot is still in its infancy. But it’s clear to me that this is a project going places. The list of partners for such a young project is both impressive and reassuring. Including a Wallet Holder Offering with SafePal — which doesn’t let any random team through the door — and partnerships with the likes of ApeSwap, which was the first project to launch a Community Pot on Moonpot. The devs and designers are constantly active, with frequent upgrades to the UI and UX based on user feedback, and new savings pots and asset classes very much in the pipeline. Last week they announced a BIFI Moonpot would be the next release on the platform, and the roadmap shows plans for a different prize draw each and every day of the week. I have faith from spending time in their community channels that this isn’t just for show, but will continue in the months and years ahead. ... **Do Your Own Research** POTS is still not that well known. I told friends to buy in at $2, and then again when it dipped to $5, but they didn’t listen, and the token then went to $10, and beyond. We’re still early. And there has been a price correction recently, but I think this is massively undervalued at $7, which is the price as I write this. DYOR, of course. But I hope this post stays around so that when people see it in six months they realize I was right. Because this is an actual CryptoMoonShot worth looking into. - SoulWeaver Docs: [https://docs.moonpot.com/](https://docs.moonpot.com/) Website: [https://moonpot.com/](https://moonpot.com/) Product: [https://play.moonpot.com/#/](https://play.moonpot.com/#/) Token price: [https://coinmarketcap.com/currencies/moonpot/](https://coinmarketcap.com/currencies/moonpot/) Twitter: [https://twitter.com/moonpotdotcom](https://twitter.com/moonpotdotcom) Telegram: [https://t.me/moonpotdotcom](https://t.me/moonpotdotcom) Discord: [https://discord.gg/8YquFwfw3N](https://discord.gg/8YquFwfw3N)

CryptoMoonShots

I trust Beefy and I've been in Cake (later Pots) draws, generally big holders win but still I have better chance than my country's national lottery lol. Also there is no ticket like pancakeswap lottery thing, you earn token (some part of it goes to lottery pool of course) if you trust beefy vaults, there is no reason not to trust this.

krjbnl

A beginner's guide to investing in the bond market (and debt mutual funds).

2020 has been a wild ride for investors in the financial markets. All over the world, stock markets crashed in March, central banks started to *print money* (out of thin air) at [an unprecedented rate](https://www.cityam.com/almost-a-fifth-of-all-us-dollars-were-created-this-year/) and the markets bounced back to new all-time-highs even though the global economy haven't fully recovered from the pandemic. A lot of investors have been reminded about the importance of managing the risk & protecting the downside of the investment portfolio. As a follow-up to my earlier post about [stock market investing](https://www.reddit.com/r/IndiaInvestments/comments/k7v0dg/a_beginners_guide_to_investing_in_the_stock/), let's look at how investing in bonds can benefit investors. Compared to stocks, bonds are a low-risk *stable* investment. Holding bonds in an investment portfolio reduces the risk & volatility of the overall portfolio, while ensuring decent returns for the investor. ## What is a bond ? Most of us are familiar with a traditional Fixed Deposit. To create an FD offline, we'll go to a bank and give our money to them for a specific period of time at a specific interest. They give us a ['receipt'](https://raghbirsinghcollegeofeducation.com/images/bankfd/PNB%20-%20Confirmation%20slip.jpg) as a representation of the FD. The receipt will have the FD owner's name, principal, interest rate and maturity date. We can't transfer the FD to someone else. During the duration of the FD, we don't care about how & where the bank uses our money. We merely want the money to be kept safe, and we want to continue receiving/accumulating interest. Once the FD duration is over, we go to the bank to return the receipt and they'll give us the money along with the interest. As long as the bank stays afloat, it's a risk-free way of earning returns on our money. Essentially, we have lent our money to the bank, and the bank repays the money at a later date with some interest. This is the simplified version of how a bond works. A bond is a *fixed-income* debt instrument that represents a loan given by the investor to the borrower (a.k.a bond issuer). In the case of an FD, the borrower is the bank and we are the investor. Bonds are known as fixed-income instruments because they provide a fixed 'income' to the investor via the regular interest payments. Unlike FDs, bonds are actively [traded in the secondary market.](https://www1.nseindia.com/products/content/debt/wdm/ndm.htm) Bonds come in all shapes and sizes, and it can be tough for a new investor to choose the fixed-income investment that's suitable for their needs. To understand things better, let's look at the basic attributes of a bond. ##Bond Attributes 1. **Face Value** : Also known as Par Value. It's the price of the bond when it's first issued. It is also the amount of money the bondholder will get once the bond matures. 2. **Coupon Rate** : It's the interest paid by the bond. It's represented as a percentage of the bond's face value. For most bonds, the coupon payments are paid once or twice a year. 3. **Term to Maturity** : Simply known as Maturity, it's the lifetime/tenure of the bond. The time period after which investors will be paid back the money. The above attributes are constant/fixed for most bonds. Apart from these, there are other dynamic attributes : 1. **Price :** This is the market value of the bond after it has been issued. Since all bonds are [marked-to-market](https://www.investopedia.com/terms/m/marktomarket.asp), the bond's price will fluctuate in relation to the price of other bonds. When a bond is freshly issued, the price will be equal to the face value. But, soon after, the price will vary depending on market conditions 2. **Credit rating :** This indicates the bond issuer's ability to repay the debt. The credit rating of a bond can change during the lifetime of a bond. A bond's credit rating is often used as a measure of how much risk an investor takes by investing in such bonds. 3. **Yield-to-maturity (YTM)** : YTM is the expected return an investor can get by holding a bond till maturity. It depends on the current market price & the remaining years till maturity. YTM is considered as the XIRR of the bond, since it considers the 'time value' of the future coupon payments. 4. **Modified Duration** : It is a measure of how much the bond prices can change when the interest rates change in the market. For example, if the modified duration of bond is 5, it means that the bond's price can increase/decrease by ~5% when the interest rate changes by 1%. Long-term bonds have higher Modified Duration, because they're more sensitive to interest rate changes. 5. **Macaulay Duration** : Simply known as Duration, it's a measure of how long it takes for an investor to earn back the money they invested. (ie) It's the duration needed for investors to be paid back the bond's price. Duration shouldn't be confused with Maturity, although both are measures in years. ## Bond categories On a broader level, there are two categories of bonds : ###Government bonds These are bonds issued by the government - Central govt, state govt or municipal govt. Government entities issue bonds to raise money from the public for various purposes. Bonds issued by the government are virtually risk-free since they have a **Sovereign Guarantee** (ie) The government always repays its debt. Government bonds have a maturity of a few weeks to a few decades. Treasury Bills are short-term bonds issued by the Central Government with maturity of 3 months, 6 months or 12 months. G-Sec (also called as 'dated G-Sec') are long-term bonds issued by Central & State Governments with maturity of several years. Although government bonds are risk-free for a domestic investor, it's not the same for foreign investors. Each country is assigned a [sovereign credit rating](https://en.wikipedia.org/wiki/List_of_countries_by_credit_rating#Standard_&_Poor's) based on the country's economic stability. [India's international credit rating](https://economictimes.indiatimes.com/markets/stocks/news/indias-credit-rating-cut-puts-it-one-step-away-from-junk/articleshow/76151725.cms) is BBB- . International bond investors use the country's sovereign credit rating to assess the risk of investing in the government bonds of a particular country. In the domestic bond market, government bonds are the most actively traded & they have high liquidity (ie) A government bond can be easily sold at a fair price, whenever we want. Moreover, financial institutions like banks are required to hold a certain percent of their assets in short-term government bonds. So, it's guaranteed that there'll be a lot of buyers & sellers of govt bonds. If there's a mismatch between the supply and demand in the govt bond market, RBI will buy/sell government bonds (via [Open Market Operations](https://www.investopedia.com/terms/o/openmarketoperations.asp)) to restore the balance of liquidity in the bond market. If we look at the list of [Outstanding Government Securities](https://rbidocs.rbi.org.in/rdocs/Content/PDFs/OS_GS_L2014.PDF), we can see that bonds issued at different times have different interest rates. The interest rate of government bonds depend on the economic conditions & the demand/supply in the bond market. When there's high demand, the govt can afford to issue bonds at lower interest rates. Conversely, when the govt needs to raise money quickly, they'll have to issue bonds with high interest rates to lure investors. ### Corporate bonds Any bond issued by a non-government entity comes under this broad category. More specifically, any bond without a sovereign guarantee can be considered as corporate bonds. The issuer can be a PSU, private bank, private corporation. The different types of corporate debt include Commercial Paper, Certificate of Deposit, Secured/Unsecured Debentures etc. Corporate bonds' interest rates depend on the issuing corporate entity and the economic condition. Each corporation is assigned a Credit Rating to indicate its 'credit-worthiness' (ie) Its ability to pay back the debt. The credit rating of an organisation and its bonds can change based on the corporate's finances, its total debt and its future economic prospects. Credit rating upgrades & downgrades are a very common occurrence in the bond market. The credit rating for the issuer is given by several rating agencies like Standard and Poor's, Moody's, Fitch. The S&P credit ratings for long-term bonds, in the order of highest rating to lowest rating, are AAA, AA+, AA, AA-, A+, A, A-,BBB+, BBB, BBB-,BB+, BB, BB-, B+, B, B-, CCC+, CCC, CCC-, CC, C, D. The bonds with credit rating AAA to BBB- are termed as **investment grade** bonds. All companies strive to become investment-grade so that more investors will buy their bonds. Naturally, well-established & financially-stable companies tend to have a higher credit rating than emerging companies. Since the repaying capacity of emerging companies is questionable, they have to issue bonds with a higher interest rate to entice investors into buying the bonds. ## Types of bonds The most common type of bond is called a **Straight Bond**. The list of attributes (in the 'Bond Attributes' section) applies to Straight bonds. However, there are some special types of bonds in which the attributes vary. 1. **Floating-Rate Bond** : The coupon/interest rate of these bonds varies on a regular basis. The interest rate is usually tied to a short-term interest rate benchmark. When the benchmark rate changes as a result of economic conditions, the interest rates of these bonds are also changed. 2. **Zero Coupon Bond** : These bonds have no coupon payments. Instead, the bonds are sold at a price that's discounted from the face value. For example, if the face value of the bond is ₹100, the bonds are sold to investors at ₹95. The 'returns' from the bond is the difference between face value and discounted price (ie) ₹5. Short-term bonds, like Treasury Bills, tend to be zero-coupon bonds. 3. **Callable Bond** : Some bonds have a 'callable' option. (ie) The bond issuer can call back the bond before it reaches maturity & give back the money to the investor. Generally, the bond issuer uses the call option to buy back the bond if the current interest rate in the market is lower than the bond's interest rate. 'Callability' is one of the extra attributes that a bond can have. 4. **Convertible Bond** : Companies sometimes issue these special bonds that can be converted to stocks of that company. These bonds offer dual benefits to the investor - If the company's stock performs well, the investor can convert the bond to stocks & reap the benefits of the stock's growth. If the stock performs badly, the investor can still earn a fixed return by keeping the bonds. Investor's downside is protected, while letting them benefit from the company's potential upside. 5. **Perpetual Bond** : These bonds have no maturity date. Investors receive coupon payments [forever](https://news.yale.edu/2015/09/22/living-artifact-dutch-golden-age-yale-s-367-year-old-water-bond-still-pays-interest) (unless they sell the bond in the secondary market or the bond issuer buys back the bond). Since there's no maturity, perpetual bonds are often compared to dividend stocks. However, perpetual bonds are more risky than normal bonds. The bond issuer can choose not to make the coupon payments. Also, the bonds can easily be 'written down' if the bond issuer is in severe financial trouble. (Eg: [Yes Bank](https://economictimes.indiatimes.com/wealth/invest/yes-bank-crisis-risks-of-investing-in-perpetual-bonds/articleshow/74548419.cms), [Lakshmi Vilas Bank](https://www.thehindubusinessline.com/money-and-banking/rbi-writes-down-lvb-tier-2-bonds-what-are-these-bonds-and-why-have-investors-been-caught-unawares/article33193293.ece)) 6. **Inflation-Indexed Bond** : A special type of bond where the face value and coupon payments vary depending on the inflation. These bonds serve as a 'hedge agains inflation' by preserving the value of the bond by indexing it with respect of inflation. In US, it's known as Treasury Inflation-Protected Security (TIPS). [In India, the bonds aren't as popular](https://m.rbi.org.in/Scripts/FAQView.aspx?Id=91). Although it seems like a great investment, the inflation-adjusted price of the bond is taxed. So, it can diminish the investor's returns. 7. **Sovereign Gold Bond** : A unique bond issued by the RBI (on behalf of the Government) where the face value is pegged to the price of gold. Investors choose how many 'grams of gold' they want to buy, which will determine the face value of the bond. The returns fluctuate based on the movement of gold price. The bond maturity is 8 years. The coupon rate is 2.5% and the coupon payment is done twice a year. From the investor's perspective, it's a risky-free way to 'invest' in gold. From the government's perspective, it's a way to reduce the demand for imports of physical gold. ##Debt mutual funds Retail investor can buy bonds directly through portals like [NSE goBID](https://www.nseindiaipo.com/eipodc/rest/login), [The Fixed Income](https://www.thefixedincome.com/), [Golden PI](https://goldenpi.com/), [Zerodha Coin](https://coin.zerodha.com/bonds/invest), [Fincues](https://fincues.com/bonds). However, investors would benefit by investing in debt mutual funds instead of buying bonds directly. Debt mutual funds invest in bonds of all varieties and all durations. There are several types of debt mutual funds, and each of them can be used for specific purposes. Investing in debt mutual funds has two key benefits : 1. **Diversification** : Instead of putting our capital in a single bond, we'll be investing our capital in a diversified portfolio of bonds. So, the risk of loss is significantly reduced. Sometimes, the face value of some bonds can be large enough that the average investor couldn't afford it. Examples : [#1](https://i.imgur.com/uzxusYd.png) , [#2](https://i.imgur.com/4rjCntg.png), [#3](https://i.imgur.com/psVHhMU.png). If investors want exposure to such high-yield bonds, investing in debt mutual funds might be the only way. 2. **Taxation** : When we buy a bond directly, we'll get regular coupon payments. Those payments will be taxed as per the investor's income slab, which'll diminish the overall return from the investment. In a debt mutual fund, the coupon payments are reinvested (in Growth plan). So, investors are taxed only when we redeem from the fund. For young investors, buying bonds directly is disadvantageous from a taxation standpoint. They won't need the coupon payments as a source of income, since they'll most likely have a job that provides regular income. ##Types of Debt mutual funds Debt mutual funds are classified based on two different criteria : The maturity/duration of the bonds and the type of bonds. A debt fund's Macauley Duration will be slightly lower than (or equal to) the fund's Average Maturity - The weighted average of the time taken for all the bonds in the portfolio to mature. So, a fund's Macauley Duration can be seen as a *rough estimate* of the time taken for all the bonds to mature. #####Categories based on bond maturity and Macaulay duration Fund type | Bond maturity & duration ---|--- [Overnight fund](https://www.prudentadvisors.in/wp-content/uploads/2018/08/debt-mf-1.png) | Invest in bonds with maturity of 1 day Liquid fund | Invest in bonds with maturity of upto 91 days Ulta Short Term fund | Invest in short-term bonds so that the portfolio's Macauley Duration is 3-6 months Low Duration funds | Invest in short-term bonds so that the portfolio's Macauley Duration is 6-12 months [Money Market fund](https://www.prudentadvisors.in/wp-content/uploads/2018/08/debt-mf-categorization-2.png) | Invest in bonds with maturity of upto 1 year Short Duration fund | Invest in short-term bonds so that the portfolio's Macauley Duration is 1-3 years Medium Duration fund | Invest in medium-term bonds so that the portfolio's Macauley Duration is 3-4 years (Can buy shorter-term bonds during averse market conditions) Medium to Long Duration fund | Invest in medium-term bonds so that the portfolio's Macauley Duration is 4-7 years (Can buy shorter-term bonds during averse market conditions) [Long Duration fund](https://www.prudentadvisors.in/wp-content/uploads/2018/08/debt-mf-category-3.png) | Invest in long-term bonds so that the portfolio's Macauley Duration is more than 7 years Dynamic bond fund | Invests in bonds of all durations #####Categories based on bond type Fund type | Bond type ---|--- Corporate bond fund | Atleast 80% of portfolio is high-quality (credit rating of AA+ and above) bonds from corporations Credit risk fund | Atleast 65% of portfolio is low-quality (credit rating of AA and below) bonds [Banking & PSU fund](https://www.prudentadvisors.in/wp-content/uploads/2018/08/debt-mf-categorization-4.png) | Atleast 80% of the portfolio is bonds issued by banks, PSUs, public financial institutions Gilt fund | Atleast 80% of portfolio is government bonds of all maturities. Gilt fund - 10 year Constant Maturity | Atleast 80% of portfolio is government bonds, and the portfolio's Macauley Duration is 10 years Floating rate fund | Atleast 65% of the portfolio is floating-rate bonds. FMP fund | Closed-ended fund with a fixed maturity period. ## Risks of Debt mutual funds With so many types of debt mutual funds, it can be overwhelming for an investor to choose the right debt fund for their requirement. It's important to consider the risks (and not the returns) while choosing a debt fund. Here are the different risks that investors face in debt mutual funds : ###Credit Risk This is the biggest risk in debt mutual funds (and bonds), and it can cause a permanent loss of capital. Credit risk occurs when the 'creditworthiness' of the bond issuer is in question & the bond issuer is unable to repay the interest (or principal) to the bond holder. When it happens, the bond's credit rating will be downgraded to D (for default), and the bond holder suffers a loss. When a bond issuer is unable to repay the debt, it's called as a **credit event**. In debt mutual funds, credit event has happened time and time again. Any fund that holds non-government bonds is subject to credit risk. **Even liquid funds are not safe from credit risk**. [Ballarpur bond default](https://www.capitalmind.in/2017/02/ballarpur-downgraded-to-default-and-taurus-debt-funds-get-whacked/) has caused Taurus Liquid fund's NAV to fall by 7.22% in one day. Investors who used liquid funds as an 'alternative to Savings Account' would have been shocked when the reality set in. Over the years, bond defaults have spooked debt fund investors [many times](https://economictimes.indiatimes.com/markets/stocks/news/10-companies-default-on-bond-interest-payments/articleshow/56699160.cms) - [IL&FS bond default](https://www.livemint.com/Companies/YlDSvn0mgNngEEJPl9EcPJ/ILFS-Financial-Services-declares-fresh-defaults-of-395-cro.html), [DHFL bond default](https://timesofindia.indiatimes.com/business/india-business/debt-mutual-funds-navs-halve-as-dhfl-defaults-on-bonds-payment/articleshow/69668367.cms) causing debt fund NAVs to [fall upto 9%](https://www.personalfn.com/dwl/do-you-own-these-debt-schemes-with-exposure-to-dhfl), [Jindal Steel bond default](https://www.capitalmind.in/2016/03/jindal-steel-and-power-downgraded-to-default-a-39000-cr-debt-problem-as-franklin-mf-takes-25-haircut/), [Essel bond default](https://www.livemint.com/companies/news/mutual-funds-withhold-roll-over-fmps-with-exposure-to-zee-group-1554904025102.html) in [Kotak AMC's FMP funds](https://www.moneycontrol.com/news/business/mutual-funds/fmp-crisis-kotak-mutual-fund-writes-to-investors-to-assuage-fears-3813651.html)(2018) & [Franklin debt funds](https://www.businesstoday.in/current/corporate/franklin-templeton-faces-default-on-essel-infra-bonds-debt-schemes-ncds/story/404748.html)(2020). Note that [even PSUs bonds have credit risk](https://www.business-standard.com/article/economy-policy/centre-defaults-on-psu-bond-obligation-105021801045_1.html). Even if the PSUs are owned & operated by the government, [PSUs don't have a Sovereign credit rating](https://www.livemint.com/news/india/icra-downgrades-bmtc-to-default-after-delays-in-debt-servicing-1568701450022.html). When there's a default, the bond's market price plummets and effectively becomes zero. So, investors' capital will be lost because the money invested in those bonds can never be recovered. Even if there's no default, investors can face a mild loss when a [bond's rating is downgraded](https://freefincal.com/these-71-mutual-funds-were-hit-by-bond-rating-downgrades-in-sep-2019/). The credit rating downgrade causes the bond's price to fall, which causes the debt fund NAVs to fall. **How to mitigate credit risk :** Avoid funds with low AUM. If the fund has a huge AUM (several thousands of crores), it will have a massive & well-diversified portfolio. Even if there's a bond default, the investor will be affected to a lesser extent. Also, avoid funds that exclusively invest in low-quality bonds. Always look at the fund's portfolio and scheme mandate before investing. If a fund gives better returns than all of its peers, that fund will most likely invest in risky bonds. If you want to avoid credit risk altogether, invest only in gilt funds. But, gilts have their own risks ! ###Interest rate risk If investors choose gilt funds to avoid credit risk, they'll have to deal with this risk. Interest rate risk arises because of the change in interest rates in the bond market, which will adversely affect the prices of long-term bonds. Let's say the government issues a 10-year bond with 5% coupon/interest rate. Debt mutual funds will buy these bonds and hold it in their portfolio. Next year, the govt issues 10-year bonds with 6% interest rate. Now, the newer bonds (with 6% interest) will be preferred by everyone because they offer higher returns. The price of the older bonds (with 5% interest) will fall (because they're less valuable now), which will cause [the debt fund NAV to gradually fall.](http://www.onemint.com/2013/articles/steep-fall-in-debt-fund-navs-reasons-behind-tuesdays-bloodbath/) Note that this fall is often temporarily and it won't result in a significant loss of capital. Eventually, the NAV will recover, but the recovery depends on the debt fund's modified duration. Interest rate risks affect long-term bonds the most. The longer the average maturity of the debt fund, the more sensitive it is to interest rate changes. So, Gilt funds & Constant Maturity Gilt finds have the most risk. Conversely, if the newly issued bonds have lower interest rates, the older bonds will be more valuable and so the debt fund's NAV will rise rapidly. To witness interest rate risk in action, observe the historical NAV of an Ultra-Short-Term debt fund (or Liquid fund) and compare it with the historical NAV of a Gilt fund. While the former will have a smoothly increasing NAV, the latter will have a more volatile and irregular NAV. As a result, it's possible for Gilt funds to give negative returns for [a particular time period (like 2009)](https://www.livemint.com/Leisure/YnXC0dzqyou3epfTzU9rMO/Are-gilt-funds-losing-their-shine.html). Whenever there's a sudden change in the interest rates, bond prices are affected which causes debt fund NAVs to [plummet](https://www.livemint.com/Money/JDYw9dZKhcktqoJTYedSDO/Debt-funds-plunge-as-RBI-squeezes-market.html) or [soar](https://www.business-standard.com/article/pf/gilt-fund-returns-soar-as-yields-soften-115012101102_1.html). **Even liquid funds are not safe from interest rate risk.** When RBI suddenly increased the interest rate in 2013, [liquid funds 'fell'](https://www.capitalmind.in/2013/07/liquid-funds-navs-fall-for-the-first-time-in-5-years/). Although they'll recover in a few weeks, investors will be at a loss if they redeem the money before the NAV recovers. **How to mitigate interest rate risk :** Invest in debt funds with lower Modified Duration (like UST funds, Short Term funds). Those funds will have lower NAV fluctuation because of interest rate changes. To completely avoid interest rate risk, invest in Overnight funds. ###Liquidity Risk Liquidity is the ability to easily buy/sell an asset at a fair price in the market. Liquidity risk arises in debt funds when the bonds of the fund can't be sold. Or, they'd have to be sold at a lower price. If there's a mismatch in the demand & supply (more supply & less demand), the bonds have to be sold at a discount because there are less buyers. Bonds with low credit ratings can't be sold easily, if at all. No investor would be willing to buy the bond at market price, so selling such a bond would result in a loss. Government bonds have the highest liquidity in the bond market because they're risk-free. [Liquidity risk is the reason for the closure of Franklin debt funds](https://blog.investyadnya.in/franklin-mutual-fund-closed-6-debt-funds/). The funds had significant exposure to low-rated bonds. When the pandemic started, a lot of investors started to redeem. So, the fund manager has to sell the bonds to give back the money to investors. But, those bonds aren't meant to be sold because they're low-rated bonds. No one will buy it at a fair price. If the fund managers sells the bonds at a lower price, the NAV will fall and other investors will be affected. In an effort to prevent such liquidity problems, [debt funds are mandated (from Feb 2021) to hold atleast 10% of their portfolio in liquid assets like cash, cash equivalent, money market instruments, treasury bills and short-term government securities](https://timesofindia.indiatimes.com/business/india-business/debt-mfs-must-invest-10-in-liquid-assets-says-sebi/articleshow/79091311.cms). Even if the mandate is enforced, the funds can face liquidity problems if there are mass redemptions. ###Reinvestment Risk When compared to the other three risks, reinvestment risk is moderate. There is no loss of capital, but there'll be a reduction in returns. Reinvestment risk refers to the risk an investor faces when the capital is reinvested in lower-yielding bonds, which results in overall lower returns for the investor. Reinvestment risk can be observed in PPF. As the [PPF interest rates gradually start to fall](https://i0.wp.com/stableinvestor.com/wp-content/uploads/2016/08/PPF-Rate-History-2020-2021.png), the investor's returns would also fall because the interest rate of a particular year determines the investor's return. If someone opened a PPF account in 1995, they'd have witnessed interest rates go from 12% to 8% in 2010. The risk is also easily observed in Liquid fund returns throughout the years. Considering [HDFC Liquid Fund](https://www.valueresearchonline.com/funds/16167/hdfc-liquid-fund-direct-plan#fund-performance) as an example, the returns for the fund went from 9% in 2014 to 7% in 2016 to 6% in 2017 to 4% in 2020. The gradual decline in returns is a result of the gradual decline in the yield of Treasury Bills. Anyone who invested in liquid funds by thinking of it as an 'alternate to Fixed Deposit' would have been disappointed. ## Which debt fund(s) should an investor choose ? The availability of so many types of debt funds can make it tough for investors to choose the proper fund. While choosing a fund, there's one important point to keep in mind : "**Never choose a debt fund only based on returns. Always choose a debt fund based on the investment horizon**". [Being hungry for high returns & investing in random funds](https://www.reddit.com/r/IndiaInvestments/comments/bwyxno/debt_fund_30_down/eq2dyqx/) (without understanding the risks) is the worst thing a debt fund investor can do. Debt funds are not a 'simple alternative to Fixed deposit' because the risk profile of Debt Funds and Fixed Deposit are completely different. Debt funds ought to be used for adding stability to our overall investment portfolio, not to get 'high returns at low risk'. [Investing](https://economictimes.indiatimes.com/mf/analysis/mutual-fund-investors-dump-equities-and-buy-gilts-in-january-2013/articleshow/18444130.cms) & [redeeming](https://economictimes.indiatimes.com/mf/mf-news/gilt-funds-see-outflows-of-rs-498-crore-in-may/articleshow/20556527.cms) in funds randomly, in the quest for high returns, is also futile. **Choosing a fund based on investment time horizon :** Decide on how many years you're going to invest the money. Divide the time horizon (in years) by 3 or 5, and you'll get a number. Select debt funds whose Average Maturity is (approximately) equal to that number. That's the simplest to do it. If you don't know the investment horizon, stick to Overnight funds or Liquid funds (Arbitrage funds *can* be considered for short durations, because they have better taxation. Be aware of the risks, though). When parking money for a handful of months, don't expect great returns. [Keeping the money safe is more important than maximising returns.](https://www.reddit.com/r/IndiaInvestments/comments/fyyrzl/which_debt_fund_to_choose/fn2ku7t/) To park money indefinitely (as a part of the Emergency Fund), choose [quality Liquid funds](https://www.paytmmoney.com/mutual-funds/insta-redemption-funds). Liquidity is the most important aspect for an emergency fund. [Keeping emergency fund in random debt funds](https://www.valueresearchonline.com/stories/48353/where-can-i-park-my-emergency-fund/) can be problematic if we don't have immediate access to our money. Other things to consider while choosing debt funds : 1. Check out the fund's scheme document before investing. Ensure that the fund doesn't have the leeway to invest in risky bonds. 2. Funds with larger AUMs (thousand crores or more) are preferable. Large AUM allows the fund to diversify better. Generally, it's better to invest in debt funds of big AMCs like HDFC, ICICI, SBI, Axis, ABSL. 3. Avoid funds that invest in risky bonds. **Debt funds are not the place to take high risks.** Even when equity mutual funds crash, it usually happens over a series of days/weeks. [Debt mutual funds can crash overnight](https://www.moneylife.in/article/dhfl-crisis-debt-scheme-loses-50-percentage-in-a-single-day/57355.html). 4. Check the fund's portfolio every month/fortnight. [AMCs are mandated to disclosure the portfolio to investors on a fortnightly basis](https://economictimes.indiatimes.com/mf/analysis/fortnight-portfolio-disclosure-by-debt-mfs-to-bring-transparency-experts/articleshow/77139654.cms). The portfolio will be provided in an Excel file, which will be easy to review. 5. Don't select debt funds (or any mutual funds) simply based on Star ratings or recommendations from investment portals. Do enough research by yourself. Check out [this older ELI5 article about selecting debt funds](https://www.reddit.com/r/IndiaInvestments/comments/50izzv/how_to_select_debt_funds_eli5_series/) & [Debt Mutual Fund Categories Explained](https://freefincal.com/debt-mutual-fund-categories-explained/) for more info.

IndiaInvestments

This is a fantastic post, thank you for taking the time to write this down! One question - i have come across two types of perpetual bonds AT1 bonds and tier II bonds. I understand yes bank was an AT1 bond, while Lakshmi vilas had tier 2 bonds. What is the difference between these perpetual bonds? Both of them can be written down, but while reviewing some mutual funds I got the impression it is more difficult to write down tier 2 bonds (ie tier 2 safe than at1). Is that correct?

t6amnf

What would be the economical effects of raising everyone's salary to match inflation every year?

I can't understand very well why workers simply don't get a raise according to inflation for every year of work. I'm not so cynical that I think that companies are simply exploiting more more from the workers, but it does seem very suspicious that it's hard to get a raise in the same position after a year, even if it's just to stay even with inflation. So what could be a possible consequence if, say, everyone got a raise very year according to a given inflation index? And what would this imply in periods of hyperinflation, where you would need to raise everyone's wages every week or so? (Assuming that paperwork is easy, just interested in economic effects, not practical ones).

AskEconomics

This might sound great and fair, but it's very much doubtful this is a good idea. First of all, this sets you right on track to a wage-price spiral. Inflation happens, which forces companies to raise wages, which leads to further inflation, until you end up in a situation where wages keeping up with inflation is the least of your problems. The currency goes down the drain, imports get super expensive, lending unreasonable, etc. Second of all, wages are rigid downward. People don't like wage cuts, surprise. Inflation helps companies during downturns by lowering real wages, and helps them to avoid firing people or going under instead. Third of all, what about dying industries? Eventually the revenue you generate falls below your wage, right now you'd still have the choice to accept a lower wage, if you couldn't cut wages, people would against just get fired. Median real wage growth is usually positive, wages *do* keep up with inflation, just not always and not immediately.

da0dqr

People don't consider the psychological consequences of being poor

We all agree that the idea of budgeting yourself out of poverty is utter bullshit, but one thing I never see anyone talking about is how hard it is to have self-control when you're poor You chronically don't have enough money to do what you want to do. Your car breaks down? You're fucked. A relative or yourself get sick? You're fucked. And there's bills, food, gas, rent. If you're poor, most likely you work a lot and earn very little. You are deprived of energy, nutrition, and happiness. Then you get like, 300 extra bucks. You've wanted to get pizza for three months. You've walked past that expensive book you've wanted to buy for months. There's that bicycle you've wanted for years. That nice phone (yours sicks, of course). That pretty dress. Those nice shoes. For MONTHS you've wanted that. MONTHS. Willpower is a limited resource. You've been forced to economize every dollar for necessities for a lengthy period of time. Chances are that you're going to spend those 300 hundred dollars in something you don't need because you are TIRED. Deprived. Unhappy. You have these 300 hundred dollars now. You don't know when the next 300 hundred will come. You could indeed put them aside... but that byke? When will you have the money again? You've worked 12 hours and you're coming home. Your fridge is empty. You should go to the grocery store, pick food, get home, get the bags home, cook the food, eat the food 2 hours later. You are too tired for that. You still have to clean your house up and have a shower. It's three weeks that you want pizza. You say "fuck it" and buy pizza even if you can't really afford it. Rich people spend their money better because they know they are going to have more money. There's no rush because if they can't buy the bicycle this month, you will be able to another time. They could afford pizza last week, so it's easier to say no to pizza this week. They worked 8 hours, there's time to clean up. Other money is going to come. We are just human beings. We are constantly bombarded with ads and things and new needs created by new markets (smartphones didn't even exist in 2007. Now you literally can't function in society without one and an internet connection. You literally can't find a job if you don't have at least a smartphone). Poor people do tend to do poor choices when it comes to money, but it's just physiological (I, at least, do many). You can only go so far with depriving yourself of pleasurable things. Sooner or later you are going to break and spend your money on something dumb because you are exhausted. It's not just a matter of not materially having money. No one considers energy, time and willpower, resources that you quickly finish when everything you have to do it grind your teeth and keep going. EDIT: I meant 3 hundred not 300 hundred sorry lol I'm tired

povertyfinance

When I was broke and had student loans over my head and credit card debt and made basically no money because I was in school and was only working part time money was an insane mental load. I constantly worried about it. Couldn't focus on anything else. Once those went away it was like the clouds parted and clarity returned. I had the mental energy to focus on other things besides how fucked I was because I had no money. I get it, and it really changes the way you utilize money and also how you care about yourself. Once I was out of that hole suddenly I had the time and energy to give a shit about my health again. When broke, a $1 box of candy was a cheap tasty thing that made me not feel like a sack of shit for a little while. When out, I had the energy to say no to the box of candy because it'll be there later, I don't need it right now. It's such a mind fuck. I still battle with that mindset and have major anxiety that something will happen and I'll be right back in that hole again.

mm0cvc

Does "Why nations Fail" contradict "Guns, Germs and Steel" ?

I guess I could crosspost this to r/AskHistorians as well. The main thesis of Guns, Germs and Steel is how our environment shapes our societal evolutionary trajectory and the main thesis of Why Nations Fail (more generally Acemoglu's work) is that geography has little to no influence on the way societes evolve but rather institutions are the key factor. Acemoglu gives the example of North/South Korea to illustrate how geography is not a significant factor but also has other published works in which he details how African societes evolved with regards to the colonial period and demonstrate that being closer to the equator does not play a significant role. Are these two contradictory or am I reducing them too much to allow them to coexist ? Thanks Edit: thank you so much for your answers everyone, I'll try to read them all and answer if I have any contribution to make

AskEconomics

Both books are talking about very different things, on very different time scales, in their attempt to reduce history to a single factor. The question of guns germs and steel - why were European countries more technologically advanced than the americas - covers thousands of years, so it's unlikely that north and south Korea would show geographical evidence in 50 years.

i6askd

A complete newbie’s step by step guide on the property buying process

I just wrote this on another thread as a comment. But I think it’ll go wasted as a comment so I’d like to share this here for complete newbies to reference. Please note, this might differ from state to state. I’m speaking from experience in VIC in the year of 2020. It can be more simple or more complicated as not all sales are the same. But here’s a general idea: 1. You contact a bank or a mortgage broker to help you get a pre-approval. The bank will assess your financial situation. That’ll give you an estimate of how much you can afford to purchase. Try to get all your finance assessed as much as you can during pre-approval. The pre-approval will take into account your situation, including any government grants/deposit/gifts (my situation), then based on your income and job history, credit rating, and other lending criteria, the bank will provide you with a number they’re comfortable lending you. Using this number (the loan amount + deposit + give it some room for additional fees - conveyancing, building inspection, any stamp duty or title transfer if the bank is not paying those, etc. I had a room of about $10k just to be sure, but this is specific to my situation) you should know what your maximum budget is to put in an offer. In courtesy of u/septembers57: Pre-approval is the amount up to which the bank will lend to you, but it is also dependant on what the bank evaluates the property you intend to buy is worth. For example, you can have preapproval of up to 600k, but the bank evaluates the property to be worth 580k. Therefore, they will only lend you 580k. 2. Once you got a pre-approval, you can start looking at properties, inspect, negotiate, review contract of sale. When you’re inspecting the property, make sure you check everything. I mean everything. Turn on every single button/tap/machine you can find. Check for scratch/cracks on the walls. Is the exhaust fan working? What about all the lights - inside and outside? Are the doors working? Can they be closed tightly? Oven, dishwasher, range hood, are they still working? Is there any damage? What about cupboards? Are they intact? Any sign of pest? If possible, pay $400 for a building inspector to thoroughly inspect the property for you. This is expensive, but is much less expensive than having to fix all the defects yourself down the track. I also strongly recommend to have a conveyancer to review the contract. They will point out clauses that are strange/not standard, tell you what they mean, and you can ask for recommendations. If you want to negotiate anything here, this is also the step. Your conveyancer will help you put those conditions in the contract of sales. I recommend to put the subject to finance clause and subject to pest and building inspection clause. Subject to finance is to protect you - in case you can’t get an official approval from the bank for any reason, this clause will help you walk away risk free without any penalty. Same thing for subject to pest and building inspection. If the house is not of good condition and the building inspection presents that, you can walk away risk free. Please note, these will be your negotiation strategy, because if two offers come in with the same price, it’s very likely the vendor will agree to the one WITHOUT these clauses because that means the vendor is protected. If you work with a mortgage broker and they’re sure they can get you a final approval within x days, you can also put a subject to finance within x days (as a precautionary measure) to make your offer more attractive. After x days you’re fully bound to the contract and if you walk away you’ll get hit with penalty and lose the deposit. Also, you can negotiate settlement term here (30 days, 45 days, 60 days, 90 days). The shorter the settlement term, the more attractive your offer is because that means both you and the vendor will finalise the sales more quicker. But also comes with a risk - if for any reason you can’t get all your finance and paperwork done during this time and you miss settlement date, you can be charged. Also you can ask to have the withholding clause to be added here (i’ll explain further below). Please make sure everything you need to negotiate is reviewed and put into the draft contract during this step, especially if you’re buying off auction. Because in auction, there’s no cooling off period and the purchase is unconditional. If you win at auction and change your mind or walk away, you’ll lose the deposit. If you buy into an apartment or a townhouse that is a part of a body corporate, don’t forget to walk around the block or the building to check for damages on the block/building during your inspection. Make sure to check if there’s any flameable cladding as well. Also, check strata reports. The contract normally includes the body corp’s Annual General Meeting minutes (AGMs), and will tell you the BAUs of the building, any item the owner corp has agreed to pay annually (e.g. windows cleaning, caretaking, etc.) how much money is allocated to admin fund and how much money is allocated to sinking fund. How much money was raised throughout the year as a special levy to fix up a damage. From there, you just gotta make your own judgement. If the AGMs and the finance looks healthy, e.g. no major spending on major damage, then the building is fine to live in. If there’s damage, clarify with the body corp manager (they’ll have a number to call on the AGM). Reach out to them and ask what it is, how it happened, is it the apartment owner’s duty to fix it, or is it the owner corp’s duty to fix it through sinking fund or a special levy has to be raised. If so, how much was quoted. When will the work be carried out. Then justify for yourself, whether it’s worth living in and paying for all these damage, or walk away. Side story: I once inspected a ground floor apartment that has a big crack on the wall. And it’s a step crack so it identifies structural damage. When walking around the building to inspect, there are cracks in other apartments as well. The building inspection came back saying that it was because the garden bed sits right next to the walls. Long term watering caused the soil below to move, and caused the cracks to occur. To rectify, structural engineers need to inspect and provide recommendation. The garden bed needs to be removed or stablising measures need to be added. Then the building foundation needs to be strengthen, and then we can think of fixing cracks for cosmetics. In the AGMs report in the past 3 years, nobody has mentioned anything about it. So I went further and use the login credentials in the AGMs report to log into the body corp’s portal and read reports in the past 10 years. Nobody has mentioned anything about fixing the cracks. I pulled out because in my personal opinion there’s no way in 20 years time I wouldn’t be whipping out big $$$ to fix that building. And the cracks are so obvious, so if nobody has ever mentioned it, this means the people living in that building seem to not care. Who knows after putting all your life saving down, it’s not suitable to live in and we’ll be forced to vacate and lose a home. Even if I move in, I still need to raise the concern with the owner’s corp, get their agreement to carry out the work, and then money will be raise to fix it. And that doesn’t mean everyone will agree to fix it because some of the apartments are not cracking so they won’t be willing to get the money out. Too much hassle for me so I walked away. The apartment ended up selling 25k more than I could afford though. Guess we’re not meant for each other. 😕 In courtesy of u/septembers57: Be VERY CAREFUL of the wording about being subject to a building inspection. You need to be specific that it is subject to the building inspection being satisfactory to your liking, otherwise the clause is meaningless if there is no significant structural issues to be addressed. A building inspection is worth it’s weight in gold, or alternatively get a builder, plumber, and electrician friend to look at the house for $$$. Also, find a conveyancer before you find a property. They’ll talk you through the wording of how to make sure you aren’t taken advantage of by the real estate agents. 3. If you have to go through auction, and have had your special conditions reviewed and amended by the conveyancer, send the contract of sales back to the vendor. If the vendor is happy with your conditions, they’ll proceed with your contract of sales if you win at auction. Normally what you can negotiate in an auction contract is just settlement term or deposit % or strike out some weird conditions that are not on the standard contract. Be aware that if you win at auction, you’ll have to sign the contract straight away and the contract is unconditional, so subject to finance clause won’t apply for auction contract. You just have to hope your finance game is strong and the bank will lend you the money enough to pay for the price won at auction. That’s why it’s important to know when to say no at auction. Otherwise, if it’s a private sales and both you and the vendor are happy with the contract, you will then sign and exchange contract. This is when the contract is executed. The contract of sales will also tell you on what date settlement will happen. The REA will send you details of their trust account, and the amount you need to pay. Normally 10% of the purchase price, and you’ll have to make this transfer. If there’s a limit on your transfer, ring your bank. They’ll temporarily increase your transfer limit for 24 hours. 4. After you’ve got the executed contract of sales, bring that to the bank/mortgage broker to apply for the final approval. Provided the bank hasn’t tightened their credit policy, the closer your finance situation now to what it was when you got the pre-approval, the higher the chance you can secure the approval. Also, if you have a subject to pest and building inspection clause in the contract and haven’t organised a building inspector yet, organise a building inspector at this stage. If the building report comes back not satisfactory, this is where you can pull out. Again, this is not applicable for auction. So, get the pest and building inspection done and justify whether you still want the place or not before decide to fo to auction. To book a pest and building inspection, provide the building inspector with the REA’s details and the property address. They’ll organise an inspection and come back and write up a report for you. 5. At this stage, you’ll do a lot of paperwork. The bank will ask for your IDs, payslips, bank statements, and send you a loan document to read and sign. Make sure to read and understand all. The loan document will also tell you how much they’ll pay on settlement. Please note, at this stage the bank also evaluates the value of the house. If they think the purchase price is ok, they’ll lend you the loan amount. If they think the house worths less, they’ll only lend you whatever they feel comfortable with. You will then need to organise the shortfall on settlement yourself, or find another lender that’s willing to lend you more. This happens more frequently during off the plan purchase. If the bank rejects, and you can’t find any other bank that is willing to lend you, the subject to finance clause will protect you at this point so you can walk away. 6. Once you’ve signed everything, then they’ll grant you a final approval. Now there’s not much you can do except for waiting for settlement to happen. 7. During this period, your conveyancer will help you prepare documents to transfer the land title to your name and help you calculate the final amounts to be paid on settlement (the settlement shortfall). This settlement shortfall includes outstanding body corps on a pro-rata basis (if applicable), any fees and charges proportionately, council rates, water rates, land and title transfer fees, any government grants and stamp duty concessions and the remaining of the deposit. If there’s a request from the vendor for early release of deposit from the REA trust account, your conveyancer will get you to sign form to release it. You’ll have to release it at the end anyway, so if you don’t see any need to withhold it in the REA’s trust account, you can release it early as a nice gesture. 8. A few days before settlement - depending on where you are, you’re entitled for pre-settlement inspection to ensure the property is of the same condition as when you signed the contract. Contact the REA and arrange that. 9. If you discover any defect, immediately notify your conveyancer, so they can get in touch with the vendor to rectify. Perhaps when the REA moved the staging furniture out, they left scratches and holes on the wall. If the defect is huge, this might delay the settlement. If the defect is small, then ask for a compensation (as an adjustment on settlement) or withhold the money on settlement. I know in Victoria you’re entitled to withhold up to 5k on settlement to fix for damages (of course if the withholding clause is on the contract - on a standard contract, it’s always there, but some vendors will choose to remove it to protect them). At this stage, the contract is unconditional. You can’t walk away anymore. So make sure you sort everything out before settlement. 10. 1 day before settlement, the conveyancer will send you a final calculation on how much you need to pay on settlement. If the bank pays all of this amount and you don’t need to pay anything that’s fine. If you need to pay this amount to the bank, your loan document should already tell you how, normally they’ll have a section to direct debit that amount from your account. Otherwise, this settlement shortfall has to be paid to the conveyancer’s trust account. If this is the case, make sure you ask your current bank to do a RTGS transfer (Real Time Gross Settlement). This means they’ll transfer a large lump sum of money to the receiving account on the same day. Otherwise, if the money takes a few days to clear, settlement can be delayed and you can get charged. 11. On settlement date, if you do online settlement, you don’t need to do anything. The people from your bank with meet up with the vendor’s bank to finalise paperwork and exchange money. 12. Once settlement has gone through, the bank will notify the conveyancer, the conveyancer will notify you. The vendor’s bank will notify the vendor. You can then meet the vendor or the REA to pick up the key. Good luck. Note: never assume your purchase will be risk-free. Always be proactive and reach out to the relevant parties to check on progress and what you need to do next and make sure you’re on top of it. Someone misspelling your name at some stage or changing your gender on the Land Title Transfer (happened to me) can lead to a disaster down the track. That means settlement can be delayed, and you’ll end up paying big $$$ on fees and charges. Or if property is wrecked one day before settlement... I’m sure reddit doesn’t lack of settlement horror stories. I once read post somewhere saying that someone’s future home was broken into by a group of bogans and the property was turned into an orgy fuck fest and was filled with piss, cum, needles and blood... Edit: here it is https://www.reddit.com/r/auslaw/comments/em2lza/settlement_crashing_horror_stories/fdlwwdd/?utm_source=share&utm_medium=ios_app&utm_name=iossmf EDIT: Some words. Please pardon if I made any spelling mistake. English is not my first language. EDIT: updated step 2 and 3 so they’re more relevant in an auction scenario. Also updated step 7 on early release of deposit. Step 9 on pre-settlement inspection. Step 2 on pre-purchase inspection. Step 4 on building inspection. Step 1 on what pre-approval might look like. Step 2 on strata meeting minutes and step 3 on auction contract EDIT: Thank you kind user for gifting me my first gold ever 🙏🎊🥰

AusFinance

What a fantastic write up. I’m surprised I haven’t seen more information like this for first home buyers and I’ve googled it plenty of times. I had to get my mortgage broker to explain in depth most of these steps and that was 20 mins before I was about to make my first ever offer on a property. It was very stressful. Thanks again.

oenoun

Am I just dumb or does Reddit really not understand how supply and demand with limited supply goods work (e.g. PS5)?

There are a lot of people in [this post](https://reddit.com/r/SubredditDrama/comments/oe89i4/rgaming_argues_about_a_16yearold_scalper_who_has/) who are angry at scalpers. And I get that, if you have to pay 2x MSRP for a PS5 then of course it doesn’t feel good. But that’s *literally* what happens in a shortage. You aren’t able to get things However, what a lot of these people seem to get wrong is that, even if scalpers *didn’t* exist, it would have no effect on the supply. There would still be the same number of PS5s as before. You wouldn’t have a better chance of getting a PS5. When scalpers exist to regulate the free market, the person with the highest marginal value for a PS5 will be able to get it. When scalpers don’t exist, the same thing will happen. Sure, people would resell the goods but people would pay in other ways—for example by waiting in line longer. This is all basic economics. Am I just stupid or do most redditors not understand basic economics concepts like this?

AskEconomics

Think of it this way, every individual who is able to purchase a console at the Manufacturer's Suggested Retail Price (MSRP), despite being willing to pay more, would experience an economic gain. Every additional dollar they have to pay to a scalper reduces their economic gain and increases the scalper's. If you would pay $1,000 for a console, but are able to get it for only $500, that's an extra $500 in your pocket and possibly some intangible happiness. If you have to pay $1,000 for the console, you realize no gain. Even though the market as a whole might be functioning efficiently in the latter scenario where you pay $1k, a rational consumer would prefer the former where they realize a gain. While the actions of the scalper might be rational, his profit is in some cases derived from the losses of people who would have otherwise been able to purchase the console at MSRP. While the scalpers don't affect total supply, they do affect demand, which can increase the market price. I think what you have to understand is that while this does seem rational from the perspective of the free market in basic economics, the real world is composed of individuals who are subject individual gains and losses as well as location differences, search costs, and expectations. Let's consider how some of these other things can affect individual opinions against the behaviors of a rational economic actor like a scalper: 1. Location Differences - While you're correct that the scalper's actions will not have any effect on overall supply, they can impact local supply and demand. When some profit-seeking individuals purchase large quantities of these consoles, they can reduce the quantity of consoles available in their local area, because the scalper might be able to make a greater profit selling it online to a different city or state. A Walmart in Giddings, Texas might receive a limited quantity of PS5s because of the relatively small population and median household income of [$44,000](https://www.census.gov/quickfacts/fact/table/giddingscitytexas/IPE120219v). A scalper who purchases all of their consoles and sells them to individuals in New York City with a median income of [$64,000](https://www.census.gov/quickfacts/fact/table/newyorkcitynewyork/IPE120219) might price them above what an individual in Giddings is able to pay. While it makes sense for the scalper from an economic perspective, individuals in certain locations might not appreciate being forced to compete with other areas earning higher median incomes. 2. Search Costs - Some consumers are not price sensitive, so the search costs for a console are minimal, because they're willing to pay the market price of a console on an auction site. For these consumers, scalpers can provide a valuable service by drastically reducing their cost (time spent) searching for a console. Other consumers who are price sensitive might only be willing to purchase a console if it's below a certain price. For them, the added demand from scalpers and potentially reduced local supply of consoles can increase their costs of searching for a console. 3. Expectations are an important part of economics that can influence opinion and behavior. In this case, people expect to be able to purchase a console at MSRP, and scalpers are economic agents who act explicitly for the purpose of selling consoles above MSRP. The actions of the scalper undermine peoples' expectations of what they feel is fair, which could explain the overwhelming negative response. Even though the actions of the scalper are rational due to limited supply, some individuals bear the economic costs of their actions either through a higher purchase price, lack of a local supply, or increased search costs. Additionally, many people expect being able to purchase a console at MSRP, and might view the actions of the scalper as undermining their expectations. *Edit: I focused my comment on why people might justifiably be angry at scalpers, but as* u/YaYaOnTour *correctly pointed out in their* [*comment*](https://www.reddit.com/r/AskEconomics/comments/oenoun/am_i_just_dumb_or_does_reddit_really_not/h482so4)*, a more complete response should have mentioned that scalpers create a benefit for people who are willing to pay more for a console but unable to find one. I made that a bit clearer in the section on Search Costs.*

m5rwqe

How I research stocks from idea to buying decision

I'm **not** an investment professional or regulated to give any form of advice, so this is only how I do it (and not necessarily the best way). I am sure there are plenty of people who can offer some constructive criticism. Thorough stock analysis is something people should do before buying any stock for investment. I've done the classic story stocks, jam tomorrow etc, and now looking to build some investment positions for the longer term. I have a 15 step process which I'll explain in detail: ​ 1. Find an idea 2. Find the market capitalisation 3. Analyse the chart of the stock 4. Read the recent RNS announcements 5. Check the stock's EV 6. Check the stock's PE 7. Check the company website and AIM Rule 26 8. Look at the income statement 9. Check the balance sheet 10. Understand the cash flow statement 11. Identify any sector headwinds/tailwinds 12. Understand how the company makes its money 13. Identify the drivers of the business 14. Research the company's competition 15. Check the broker forecasts ​ **1. Find an idea** This can be from anywhere. I was surprised at how often ideas came from real life - I once got a Gear4 Music speaker from my parents for my birthday or Christmas - when I checked years later the stock had multibagged. I thought it was a cool product but didn't follow that lead. As Peter Lynch says "Behind every stock is a company - find out what it's doing". Ideas can come from new brands/shops popping up, friends talking about works, the news, and more. For example, the Guardian reported that many bars are already fully booked up for months. That suggests to me there will be a large tailwind in the hospitality sector with pent-up demand, so I may look to try and trade this. ​ **2. Find the market capitalisation** This is important because elephants don't gallop. It's also harder to get an edge on larger companies, as there will be several teams of analysts covering the stock in detail. The smaller companies get less attention, therefore the opportunity to outperform is greater (but risk also increased). The calculation for market cap is simply share price \* shares in issue. I'll rarely look at stocks above £250m market cap - at the moment there are lots of small cap stocks that have slashed costs and are now leaner than they were pre-Covid. ​ **3. Analyse the chart of the stock** Lots of investors say that charts don't matter. I find that hard to understand as the price charts tells me the money-weighted opinion of the stock over a period of time. I avoid charts that are trending downwards. Look for stocks trending above the 200 SMA and where the price is pointing upwards. ​ **4. Read RNS announcements** The goal here is to understand what has been happening recently. Check the results, or trading statements, and read the narrative.  It’ll always sound positive, but there are always clues: * A focus on highlighting revenue or EBITDA growth may mean the business isn’t as profitable as directors would like it to be * A mention of a ‘step change’ or turnaround could be a lead to dig further * Recent directorate changes could signal an underperforming board being replaced by new faces Only by reading the RNS announcements do I feel I can begin to understand the story and start making sense of the share price chart. For example, a profit warning several months ago would explain a gap down in the share price and continued downward slump. ​ **5. Get the stock's EV** EV is Enterprise Value. This is simply the market cap plus debt minus cash. There are other more conservative EV calculations but this is the one I use. It's a quick way of checking whether the company has plenty of cash or plenty of debt, or evenly balanced. For example, a company with a negative EV has more cash than its debt and market cap! Companies with discounted EVs compared to market caps show the company has net cash rather than net debt. Debt isn't always a bad thing but high debt companies I'll tend to steer clear from. ​ **6. Calculate the PE** The PE is the price-to-earnings ratio for the stock, and the earnings multiple of the company (PE ratio = share price/earnings per share). For example, a PE ratio of 5 would tell us that the market currently rates the stock at a 5x multiple of the company’s earnings per share.  It also means that - all variables remaining constant - the stock will take 5 years for the company to earn its share price in earnings. The P/E ratio tells me the sentiment of the stock. A stock rated at 40x earnings is highly valued by the market, and a stock rated at 5x earnings is rated cheaply. One issue with PE though is that it doesn't factor into the earnings growth rate. Paying for a company at 30x earnings may be a bargain if it is growing its earnings at 50%. However, this doesn’t mean that the market is right. We may wish to check the price/earnings to growth ratio (PEG ratio) which is the stock’s PE ratio divided by the company’s growth rate in earnings per share.  A fairly valued stock for its growth rate of earnings will give a PEG ratio of 1. Anything above could be considered to be overpriced, and anything below could be considered to be underpriced. Hence why I prefer numbers close to 1 and below. ​ **7. Check the company website and AIM Rule 26** The most important parts I feel here are: * Significant shareholders * Directors * Annual report *Significant shareholders* The shareholder register is important. Any notable institutions or individuals with a good track record here are signs of interest. If there are few institutions this can be a catalyst in the future if institutions decide to buy. *Directors* Directors are a big part of small cap stocks. What I look for here: * What companies did the directors work at before and were these companies successful? * What size were these companies? If a CFO makes a huge jump he could be out of his depth * Were these companies listed and did they deliver shareholder value? * How many non-execs and do they sit elsewhere? Are they busy directors? * What do the directors pay themselves? Is this excessive? * Does the company have **entrepreneurial management?** The last bullet point is what I'm most interested in. A director who has successfully turned around companies before and has a track record is someone I'd like to see in a potential turnaround play. *Annual report* The annual report is rarely read by investors. This contains a lot of the information management doesn't want us to see for that reason. The financial notes are a must-read, as are the chair and chief executive statements, the remuneration report, the segmentation for revenue, risks report, and the audit report. I read annual reports from start to finish. ​ **8. Income statement** Here, I want to see the revenue increasing, as well as a strong gross margin. The number I most look out for as a comparator is operating profit and EBIT (these will usually be the same as operating profit includes minority interests). EBIT is an earnings number before those with interests and taxes see claims. I also look for administrative expenses. These should be relatively flat or slowly going up, or even better going down. A company that grows its sales but also sees its admin costs rise relative to revenues is not going to go far. Keep an eye out for share-based payment charges. I've heard one management team tell investora to ignore these - you shouldn't because SBP charges have real consequences. These shares dilute investors (the owners of the company). Profit after tax is the bottom line and the line that really matters. Be careful companies aren't reporting 'exceptional' costs every single year. Companies that do will report 'adjusted profits' which are always better than the real profits - or lack of them. ​ **9. Balance sheet** I check the cash balance here, as long as payables and receivables. I don't want to see receivables growing much faster than payables as that means cash is spending less time out of the business. With smaller companies it's inevitable but poor cash collection can lead to cash calls such as discounted placings. Current and non-current liabilities are always worth checking too. Debt is not a bad thing if it's manageable and even has certain advantages (tax shield). NAV and NTAV also worth checking to see what the company is worth in real terms (net asset value). Be careful with NAV because one company decided to capitalise its drilling costs as an asset (despite the company drilling and finding nothing) which fluffed up the NAV price. This is why I like NTAV as it only looks at the tangible asset value. ​ **10. Cash flow statement** Check the cash flow of operations to see whether the company can generate enough cash to keep itself going. Cash is the lifeblood of the business and more important than profit. Also, check the investing cash flow statement to see what the company has been doing in the financial year. There will likely be capex but is this for maintenance or growth? Maintenance capex keeps the company bumbling along whereas growth capex is for growth. If we want to go deeper than check the depreciation and amortisation policies too. Many a profit has been overstated by management teams using discretion here. The financing cash flow statement shows how a company has financed itself through the year. Large inflows here often mean dilutive share placings (but not always). ​ **11. Identify the headwinds and tailwinds** Smaller companies will be more affected by these than larger companies. Sector environment - if it's involved in commodities then what is the outlook here? Global outlook? Regulatory environment - what are the regulations like? Are there pressures to change these? Economic environment - important for consumer facing business. What is discretionary spending looking like in the next six and twelve months? If the company operates in another country, what is their economic environment looking like? Other things to consider are interest rates. When the cost of capital rises, the risk-free rate increases and so stocks become less attractive and bonds more attractive. Finally, political environment - mining companies in Africa? Can their assets be seized? Stocks operating in unstable or unusual countries tend to trade at discounts. Sometimes for a good reason and sometimes for no reason. ​ **12. Understand how the company makes money** This one sounds obvious but if I can't understand how a paying client gets value out of the stock's offering and how that cash moves through the business into profit then I don't buy it. If a business is too hard to understand then there might be a reason for it. Or maybe I'm too dumb. But I don't take that risk. I like technology stocks and I'll never understand how the technology itself works, but as long as I know what it does and how the customer gets value out of it, that's what matters. ​ **13. Identify the drivers of the business** This is where I look to see how the company can grow its earnings or justify a re-rerating. Lots of companies are listed on AIM but never achieve the scale and size to hit the inflection point and start growing significantly. Potential drivers include exiting a loss-making subsidiary, fast-growing product or offering, new board and management, change of strategy and business model etc, bull market for commodities.. ​ **14. Research the company's competition** I use Michael Porter's Five Forces here and think about the threats from the existing competition, but also from suppliers and buyers, substitutions and new entrants. Smaller companies can adapt to threats much faster but are also more vulnerable to destroyer pricing. The company needs to have an edge to beat the giants. ​ **15. Check the broker forecasts** Don't place too much value on broker notes. This is because you never bite the hand that feeds and so you'll never get an objective view. But broker notes can be useful in understanding the business better but also checking the forecasts. Earnings upgrades are key drivers of a stock price and if the company is on track or has a good chance of beating the consensus forecasts, this can be a catalyst for the stock price to move up over time. ​ **Conclusion** I realise this is a long post, but I think I've covered most things I look at. Interested to hear what you look at or what I should pay more attention to. Ideally, from all of the above, I want to find a company for a fair price that has a reasonable chance of growing into a valuation or with a runway for growth, which has no big red flags and has capable management. I also want this to be in a stable environment where success is not too demanding, and there is little broker or institutional interest in the shares. If you're interested, please check out my blog on the UK stock market: [www.shiftingshares.com/blog](https://www.shiftingshares.com/blog)

UKInvesting

My only issue with this, you say you're not an investment professional or regulated to give any form of advice. Then we go to your website and it's literally selling this: "My fully-fledged UK online stock trading course, created to help you profitably trade the UK stock market."

u7vkar

£65k a year but living paycheck to paycheck. Any advice please?

I’m not quite sure where to start but at the end of every month, right before I’m paid and when my credit card bill is due, I have sleepless nights as I lie awake with panic about my finances. Each month, my salary is entirely depleted. I have a disposable income of just over £2000 and I regularly spend around this amount on my credit card. I have had to rely on my parents (I actually mean my 66 year old retired mother) to pay £9000 over the past year, as the bills racked up and I couldn’t afford it. I’m a 30 year old female and I want to start a family soon, yet I have no money to my name. I spend the majority of my money via my credit card on deliveroo/other forms of eating out or expensive branded clothing and jewellery or items related to hobbies that never last. I don’t think before I buy, I always tell myself that I can afford it. I grew up ‘poor’ and this all started as a lifestyle creep. My partner is from a wealthy background and I’ve found myself understanding the value of money less and less, like he always has. We do not share finances. I am a GP, and I know that this is a well respected profession (to some of the public) with guaranteed job security but the job makes me so depressed and stressed. This is the sole reason for my overspending. I buy food and items to make me feel happy but obviously it doesn’t work. I would love to retrain as something else, but having given up my 20s to this profession, I don’t know where to start. I worry that any cut in my salary would mean that I struggle to pay my mortgage and my partner and I would like to buy a larger property soon (in London, so we need a high joint income). I’ve tried all that I can think of. Deactivating the credit card - but sometimes I do need it for large and necessary purchases or I will memorise the numbers and buy something online on a whim. I can’t tell you how many times I’ve written out my expenses vs income. I know what my daily or weekly budget should be. I’m aware that my suboptimal mental health is contributing to my financial struggles and I’m looking into it. I wondered if I could read some advice from anyone else who has been in a similar position. I feel like I’m drowning every month when I shouldn’t be, I’m earning 3x more than my single mother did and she did a better job at life than I’m doing right now. **Edit:** I wanted to thank you all so much for so many very helpful responses and PMs. I really appreciate those who took the time to message me or write out long replies with great advice. I’ve read them all. I guess my personal finance question was about how to manage money responsibly and avoid impulsive spending. I really wanted to hear from others who had been stuck in the same cycle that I am. Payday is a week away and I have £6500 waiting on my credit card. I can see that it is all very obvious in hindsight. The main problem for me is using my credit card for every single expense (contactless or memorised the card details) and I never check the balance until it’s due. Purchasing things online had become a simple click of a button or the use of Face ID. So I’ve been going overboard. This has been a problem for the past 18 months. Prior to this, I had £40k in savings. I had to spend this all on a deposit for a property. Since then, my spending just spiralled. Since posting this afternoon, and reading u/londonmania’s post + others + MSE, I’ve removed my credit card from my apple wallet and I no longer intend to use it. I opened a Chase bank account (pretty quick approval process, I chose them because of the 1.5% savings account) and I’ve got an account for my daily spending, saving for a treat, regular outgoings and finally, a hidden account for my salary - which means I won’t be able to see it, a pretty nice feature from Chase. I’ve previously used Monzo but they won’t replace my card even though I never received one (it’s the principle) and I already use Starling as a joint account with my partner for holidays etc. Thanks again.

UKPersonalFinance

I was actually similar to you in my 20s, but earnt more and spent even more than you do. I’ve done a 180 now, which is evidence that you can, and will, change your ways. The best advice I can give is to use standing orders, and multiple accounts. 1. Create a current account just for your salary. You never touch this one, and it doesn’t exist in your mind and it’s not ‘yours’ to spend. Never keep this card in your wallet, give it to your parents if need be. 2. Your second account should be something like starling / monzo / chase - set a weekly, not monthly, budget for all of your disposable expense. I have set this as £180per week. Create a weekly standing order to go from your salary account into ‘your’ which you can do whatever you want with. No limitations, go crazy, do whatever you want with this. 3. Create another current account for your bills that are not avoidable - such as mortgage, electric, council tax etc. Now set a standing order to go into this account. Never ever touch this account as if you do, you will get missed bills payments on your record and it will ruin you. 4. Create a savings account, such as chase, and again set a standing order for money to go into this account. You never touch this account, never keep the card onyou, give it to your parents. After you mentally stop thinking that accounts 1, 2 and 4 are ‘your’ money, then the pattern of over spending stops. Weekly payments help hugely, as it’s easier to have a weekly allowance instead of monthly - because a month is a long time and in London you can spend all that money in a few days easily. I don’t like ‘pots’ in current accounts, because it’s too easy to move money from them. The above helped me enormously. If you saw the state of my spending before and now, it’s night and day. I’ve managed to save about £70k using the above, and I haven’t felt like I’ve missed out as I’ve always spent all the money in account 2 on whatever I want. Standing orders are the answer! Good luck!

k6w5wd

Should I reduce rent for one month as a holiday gift to the tenant?

My property management company suggested that we consider reducing rent for one month as a holiday gift to the tenant and as a way to let them know we appreciate their business. The idea sounds intriguing but I am considering whether it’s a good idea to do so. The monthly rent is $1500 and I was considering allowing for up to 20% discount on rent for one month, both as a thank you and in recognition that we live in unprecedented times. The tenant has been at the residence for at least two years. There have been maintenance issues that I had to deal with, including putting the tenant up at a hotel for a night while the problem got fixed. However, I could afford the discount of up to 20%. But, I also didn’t want to set an unrealistic expectation that this will happen every year. Finally, I note that there was no offer from the property management company to reduce our fees to show their appreciation to us owners. What are your thoughts? Should I reduce the rent of my tenant for one month? If so, by how much and why? If not, why not. Thank you.

realestateinvesting

We gave our tenants gift cards to a local grocery store and gas cards this year as a thank you in a christmas card. That way they are not expecting a rent decrease everytime something unfortunate happens.

ljzobj

This sub has become r/wsb but with ETFs

The posts are getting more and more ridiculous. > Rate my medium risk portfolio, it is 70% crypto, weed, NASDAQ, eSports, clean energy, and videogaming, with some junk bonds for the safe part. I know past performance is not an indicator of future gains. My strategy is to double my initial investment in five years. This is a personal finance subreddit, not a gambling community, and bullshit like this should be shot down. Instead we have a bunch of newly arrived shoeshine boys upvoting and encouraging each other and giving each other genius tips like "Clean energy is the future and lots of people do weed so they will outperform the market". This is concerning and dangerous for the people involved. Not sure what can be done about it. But I know what is not ok. Looking at the people who understand what is going on but write something to the effect of "Well, maybe do 20% crypto instead of 45%". Recommending moderation in gambling is just enabling gambling. My 0.02€ worth of opinion.

eupersonalfinance

Well, look it on the bright side, at least a lot of new people are going into investing. And in Europe, which is traditionally very non-investment friendly. The Crypto / Esport / Clean Energy / Cannabis manias will all die down. Some people will get burned, it is inevitable. The ones holding ETFs much less so, as it is inherently less volatile than owning a random stock, even the ones that track volatile sectors. I know a thing or two about gambling (after 15 years in the Gambling Industry you would think so). People are going to do it no matter what. So best you can do if you have their best interests at heart is let them contain it to sums they can afford so they don't ruin them financially. I have the same philosophy with active speculation bets - I keep 5-10% of my portfolio for active bets (although it has fallen under 3% as I can't find anything attractive for me recently), and advise people with appetite for active bets to do the same.

7hmjdw

My brother killed himself because of BTC

I don't really know where to post this but I feel like I need to vent. Do not take this as criticism of Bitcoin, blockchain technology, or cryptocurrency users & developers, it's not. There are probably other factors that led to my brother's suicide, but he had been beating himself up over Bitcoin for the past several years to the point where he seemed constantly depressed over it and gradually became a shadow of his former happy self. He claimed to have owned 15,000 at one point, which may have been an exaggeration. But I know for a fact that at some point around October-November 2012 he did have at least 6,000 BTC which he showed me in his wallets. He was so enthusiastic about Bitcoin and how cryptocurrencies would revolutionize the financial world. For awhile he was annoying the fuck out of our relatives about how it would make them millionaires. I'm not sure exactly what happened to his BTC. Sometime in 2013 he claimed to have lost most of them in a hack and sold the remainder too early. He very well may have sold them all too early, but who knows. As the price took off in late 2013-early 2014 you could tell he was distraught over it and became increasingly withdrawn from family and friends. Whenever I did manage to contact him he would sometimes end up ranting about how badly he had fucked up and how he would never have a chance to be rich again. As the price climbed up to 10k over the past several months it became even more difficult to make contact with him, he just wouldn't reply to me or my parents calls and texts. A couple weeks ago my parents flew out to see my brother and found him dead by suicide with no note. He was 29 with 50 years of life ahead of him. Other than obvious grief I don't really know how to feel about this. If I had missed out on $50M I might have killed myself too. I can't imagine what my brother must have been feeling these past several years knowing he missed his best & easiest shot at the wealthy life he had always fantasized about. Bitcoin totally fucked up his mindset to the point where you couldn't talk about anything related to investing, money or finances without him storming off or crying. If there's any more of you in a similar situation feel free to PM me. Please try to recognize there are endless economic opportunities in life and 1 mistake doesn't define your future. There are family and friends who care about you and will listen.

Bitcoin

I'm sorry for your loss. (I truly mean it; screw r/buttcoin for ruining that honest phrase.) I hope you and your family find a way through this. > Sometime in 2013 he claimed to have lost most of them in a hack The timeline aligns somewhat with mtgox, which collapsed in 2014 and stopped bitcoin withdraws sometime around then. If your brother filed a claim with mtgox when they entered bankruptcy, then there's a chance there's still ~$500k or more waiting to be distributed to his heirs. I would check the mtgox claims list (google it, or see r/mtgoxinsolvency) and see if you find his name on it.

l92fz7

Jim Cramer Gave an Interview in 2006 on how the Hedge Funds Manipulate the Markets

[https://www.reuters.com/article/cramer-interview-idUKN2036292620070320](https://www.reuters.com/article/cramer-interview-idUKN2036292620070320) [Direct link to Interview Video since the old in-article links aren't working](https://www.youtube.com/watch?v=CpMEFtPZJLc) "What's important when you're in that hedge fund mode, is to not do anything remotely truthful. Because the truth is so against your view, that it's important to create a new view, to create a fiction." "Then you call the (Wall Street) Journal and get the bozo reporter in Research in Motion and you would feed that (rival) Palm's got a killer it's going to give away. These are all the things you must do on a day like today, and if you're not doing it, maybe you shouldn't be in the game." “It might cost me $15 million or $20 million to knock RIM down but it would be fabulous because it would beleaguer all the moron longs who are also keying on Research in Motion." "A lot of times when I was short at my hedge fund ... meaning I needed (a stock) down, I would create a level of activity beforehand that could drive the futures. It’s a fun game and it’s a lucrative game." "Who cares about the fundamentals? The great thing about the market is that it has nothing to do with the actual stocks." \- Jim Cramer, hedge fund manager from 1987-2001, Dec 2006 [Dealbook NY Times Article on Cramer's Interview](https://dealbook.nytimes.com/2007/03/20/cramer-market-manipulator/) [Investopedia Article: Short and Distort Bear Market Stock Manipulation](https://www.investopedia.com/articles/analyst/030102.asp#:~:text=Short%20and%20distort%20(S%26D)) [Anatomy of a Short Attack](https://seekingalpha-com.cdn.ampproject.org/v/s/seekingalpha.com/amp/instablog/11442671-gerald-klein/3096735-anatomy-of-a-short-attack?amp_js_v=a6&amp_gsa=1&usqp=mq331AQHKAFQArABIA%3D%3D#aoh=16119453107704&referrer=https%3A%2F%2Fwww.google.com&amp_tf=From%20%251%24s&ampshare=https%3A%2F%2Fseekingalpha.com%2Finstablog%2F11442671-gerald-klein%2F3096735-anatomy-of-a-short-attack)

investing

CNBC and Cramer are desperately trying to make people sell GME, it's straight up manipulation. News move really fast these days, but retail investors should use this as a reminder and never forget how the GME saga played out.

4xtawg

Clinton Economic Plan Megathread

We've been getting submissions about the candidates economic policies. They're worthy of discussion, but we also don't want political content displacing other economics content. So we're trying two sticky megaposts. One for Clinton's plan, one for Trump's plan. This way we can have a discussion on candidates policies without overrunning the sub, like we did with [the economic analysis of Bernie's plan](https://www.reddit.com/r/Economics/comments/46sx5a/bernie_sanders_economic_proposals_megathread/). ## Clinton's policy platform: * [Generally](https://www.hillaryclinton.com/issues/) and on [taxes](https://www.hillaryclinton.com/issues/a-fair-tax-system/), [labor and worker's rights](https://www.hillaryclinton.com/issues/labor/), [college costs](https://www.hillaryclinton.com/issues/college/), [social security & medicare](https://www.hillaryclinton.com/issues/social-security-and-medicare/), [wall street reform](https://www.hillaryclinton.com/issues/wall-street/), [workforce skills & job training](https://www.hillaryclinton.com/issues/workforce-and-skills/), [jobs and wages](https://www.hillaryclinton.com/issues/jobs/), and [more](https://www.hillaryclinton.com/issues/). ## Analysis of Tax Plan * [Tax Policy Center](http://www.taxpolicycenter.org/publications/analysis-hillary-clintons-tax-proposals/full) on the progressive tax policy and reduction of incentives to work, save, invest, and further complicating the tax code. * Committee for Responsible Federal Budget [Analysis of both candidates](http://crfb.org/sites/default/files/CRFB_Promises_and_Price_Tags.pdf), [Executive Summary](http://www.crfb.org/papers/promises-and-price-tags-fiscal-guide-2016-election), and [Update](http://crfb.org/blogs/analyzing-clintons-health-and-education-expansions). Covering debt as a percent of GDP, growth assumptions or tax increases, and a policy cost scorecard. * [Tax Foundation Analysis](http://taxfoundation.org/sites/default/files/docs/TaxFoundation-FF496.pdf) on tax revenue, incidence, and economic impact ## Other Analysis * [Moody's Analysis](https://www.economy.com/mark-zandi/documents/2016-07-28-The-Macroeconomic-Consequences-of-Secretary-Clintons-Economic-Policies.pdf) of the impact on GDP, employment, median household income, and more under current law, full implementation of policy platform, or partial implementation ## Fact Checking * [WSJ fact checks Michigan speech](http://blogs.wsj.com/economics/2016/08/11/fact-checking-hillary-clintons-speech-on-the-economy/) * [NPR fact checks Michigan speech](http://www.npr.org/2016/08/11/489563362/clinton-to-lay-out-economic-plan-in-contrast-to-trump) * [Annenberg Public Policy Center fact checks the Michigan speech](http://www.factcheck.org/2016/08/clintons-economic-speech/) ## Other * [NPR Comparison of Plans](http://www.npr.org/2016/08/13/489761605/how-did-trumps-and-clintons-economic-policy-speeches-compare) ## Resource Recommendations If you have any other articles on Clinton's economic plan, please post here or [PM me](https://www.reddit.com/message/compose?to=jambarama&subject=Clinton%20Megathread%20Suggestion) and I'll get it into the body. Articles must be written by an economist, rely heavily on analysis by an economist, or include simple fact checking of economic claims.

Economics

"will reduce incentives to save and invest for high earners" I still need someone to explain to me how higher taxes on capital gains would mean that people would stop investing their money. If I'm a 1-percenter, I can only consume so much as an individual. The rest of my income will be saved and reinvested pretty much by default.

u16moi

Challenger banks will be a great investment and here's why

I'm a 33 year old man and I just spent 40 minutes in Lloyds waiting to be served and the thing I needed doing wasn't available in the app. During those 40 minutes I didn't see a single person below the age of 30 in there, most of the customers were in their 50's. Then I went to Natwest and experienced the same thing, elderly people queuing up to transfer / withdraw money, completely app illiterate people. Big banks are on the way out and with challenger banks capturing the 18 - 30 demographic I think it's very likely challenger banks will be the future. Monzo, Revolut and Starling are the 3 main ones and I'll be buying these banks as soon as they eventually IPO. I honestly think in 20 years time the traditional banks will collapse and be replaced by these new challenger banks. As these banks get larger you'll start to see more services offered like credit cards and loans I've used challenger banks for 3 years and never had a single problem. You get near instant help via the app and everything can be updated or changed in the app. It's so convenient. With an aging demographic I think traditional banks are on the way out.

UKInvesting

Where do you think banks make money? Is it the tech savvy, deal seeking, impoverished18-30 demographic, or is it the older demographic with big mortgages and big savings who can’t be bothered to find the best deal? Challenger banks might have quite a few customers, but the next time money expert supermarket come out with a new Best Buy/money saving tip, all those customers are off to the next shiney new bank. The old banks have way too much money tied up in loss making branches and bad historic practices (PPI etc) but the new ones are a long way from guaranteed profit. Whole sector stinks.

xiiqoh

What would happen if every person in the country was paid the exact same wage?

My girlfriend has this political opinion that every person should be paid the exact same wage, no matter what job they do. I don’t know enough about economics to explain why this wouldn’t work. Looking for some insight.

AskEconomics

Here are a few common problems people bring up about this kind of proposal: 1) Jobs that are more difficult, [more dangerous](https://advisorsmith.com/data/most-dangerous-jobs/), or just more unpleasant will not be filled now. We call the difference in salary needed to get someone to do these jobs "compensating wage differentials". Who would go down in the coal mines, fight in the army, work with toxic chemicals all day, or clean out the clogs in the sewer system? 2) What about people who start their own business? Exact same wage implies that there will be no reward for doing this. Who will work hard to invent better ways of doing things (or curing cancer)? Again, with no reward system available, it isn't going to happen. 3) There is no incentive to **work hard**, either. With no way of getting raises, no way of getting a promotion, it is difficult to see why people would *work hard*. Everyone might phone it in, all the time. What are you going to do to me if I don't do any work at all? I can always get another job making exactly the same thing. (This is the **opposite** of the "efficiency wage" idea, where you might pay someone more just for the fact that they will work harder to avoid losing the job.) 4) "But human beings just love working, and will do all of these things anyway", your girlfriend says. Sadly. most people do not agree. I would be searching for the cushiest job I would enjoy the most (petting kittens, playing competitive video games whether I'm any good or not, be a member of a band), and will do the minimum I have to. 5) What about jobs that require 6-10 years of schooling and training before you ever get paid? Are we going to pay the students the same amount as well? Then, I change my answer-- I will be a student for the rest of my life. I will be really good at it though! 6) Think about this "same wage", what we will be paying a 16 year old kid. What about a single mother who has 5 kids? What about a single father who went to Med school with 5 kids who is also responsible for taking care of his parents? You are going to limit him to the same salary, so that they now starve? 7) What about people who earn money on Patreon or similar platforms? What about people who are really good at earning tips because they do a great job? Are we making laws preventing people from voluntarily giving other people money? 8) Finally-- many people who make the "same wage" argument are also in favor of confiscating all the wealth, and dividing it equally among everyone. What they fail to see is that within one month, some people will have spent or lost all of the money (we know what happens to many [lottery winners](https://www.gobankingrates.com/net-worth/bankruptcy/lottery-winners-who-lost-millions/)), and people who are savvy/inventive/desire to save and invest/have that entrepreneurial bug in them will all of a sudden have a lot more. ***How often are you proposing we reconfiscate and redistribute everything?*** Every night before bedtime? As you can see, **really** trying to do this in the real world will have a lot of problems. And as you start creating exceptions for the issues I have raised above, or creating extra laws/rules saying that people **must work hard**, you quickly see that we are getting very far away from some utopian ideal. [Here is an article about a real company that tried it](https://www.bbc.com/news/business-55800730) for its own employees, but they realized very soon that it just didn't work.

na6ut0

It’s happening ..$HAPPY just rocketed from $9m to a $60M market cap. Now there's no limit on where this beauty can go.

**The gears are in motion. Strap in for the ride.** The last 24 hours we’ve seen **parabolic growth** from $HAPPY. Despite Pancake swap migrations causing a stir (Use Bogged swap for the best buy price) Happy is still making **huge gains.** Many people thought HappyCoin was moving sluggishly for the past 2 weeks... **the paper hands left** and what remained a few days ago was an incredible project at an undervalued marketcap, and **a solid community with 30,000 holders..** The fundamentals were all setup to **launch happy into the stratosphere.** **The fully doxxed founder** has laid the foundations [(easy how to buy page)](https://thehappycoin.co/buy) A-List influencers, 24/7 support on their website) to prepare for a **HUGE** marketing push, and as a result the price is up 600% in just over 24 hours with way more fuel left in the tank. **This week alone there’s going to be a CoinMarketCap listing, WhiteBit marketing push, Certik audit, merch, 2nd centralized exchange announcement, and a huge influencer marketing + community push for mental health awareness week..** Which is solidifying HAPPY as a token with **staying power.** Here’s the juicy news.. **The fully doxxed HappyCoin founder is flying out to LA this Sunday for a month.** Yep, you heard that right. It looks like they’ve already locked Jesse Wellens (10m + youtube subs), who is best friends with **Casey Neistat.** The devs can’t help but leak easter eggs. When all is said and done, **$HAPPY** has all the makings of a token and brand designed for mainstream success. With a huge liquidity pool, and a community that stuck with it through thick and thin, I have a feeling by the end of this week, this market cap will look like a speck on the chart. **I’m bullish as ever on this one. I won’t be surprised to see it at $1B+ by June.** Check out their site, watch the AMA’s, meet the dev, and you’ll be just as sold as me. Stay $HAPPY friends :) 🌐 Website: https://www.thehappycoin.co/ 💸Bogged Swap (still uses pancakeswap, just way easier 😊): https://bogged.finance/swap?token=0xb0b924c4a31b7d4581a7f78f57cee1e65736be1d

CryptoMoonShots

$happy is going to be HUGE. I can just feel it. Amazing community with an amazing team. I look forward to the weekly donations they make to mental health charities... so wholesome! This is going to 1B MCAP soon, mark my words!

xpjgef

Dividend paying ETFs & individual stocks is the best strategy for me.

49yo focused primarily on growth ETFs over the last 25 yrs, and focused on dividend paying stocks over last 3 yrs. I love the process of building up my 10 dividend paying stocks, digging in to each company and seeing the higher yields compared to my ETFs. But having ETFs, largely VTI, VXUS, iShares, that also pays regular dividends has been a boon to my dividend income (still DRIPing at this point) strategy, albeit with much lower yields. The combination of growth and fixed income is what helps me sleep at night.

dividends

@patsfan2019 quite an impressive portfolio! My father invested in the market and taught me to do the same. Born during the depression, he quit junior year of high school to help support his family when my grandfather suffered a stroke. Needless to say he worked blue collar jobs and long hours at that. He swore he would never be poor again. Understandably, my father was always a saver. He researched how to invest in the market and in the late 60s he started investing in stocks that paid dividends. He didn’t make much money but he managed to save small amounts to invest. When he worked overtime or had extra cash he invested it and over the years continued to drip. Growing up we lived comfortably but not extravagantly. On top of an impressive portfolio my father built on his own research and knowledge, my parents managed to purchase 2 homes, pay for my entire education (masters in art education) as well as my brother (doctor of veterinary medicine). They were able to retire in their 50s and live off SOME of the dividends while continuing to drip others. Neither had a job that paid a pension. My father started an IRA for him and my mother. My mom passed in 2008 (portfolio took a hit) but my father didn’t flinch as he survived many bear markets. My father passed December 2021 with the legacy of his impressive portfolio worth millions while accomplishing all he set out to achieve by saving and investing in dividend paying stocks which was the best strategy for him! Keep up the great work!

mw9u9g

My Landlord is Dead - What Now?

We have been trying to contact our landlord for the past two weeks trying to get our next year lease signed. We had agreed to this lease over the phone but were waiting for the landlord to prepare them. They were never signed and our lease is up in 1 month. Last night one of the water lines broke on the exterior of the house (THANK GOD) we immediately tried to contact him with no response and with a little digging found his obituary. He's been dead for 22 days and we have no idea A, how to repair the busted pipe and B, what will happen with our living situation. No one has contacted us.... We're considering looking into a first time home buyer loan to see if we could purchase the property, but we don't know when we'll be contacted by the family.

realestateinvesting

\-Fix the problem and save the recipt \-Don't pay the rent (save rent amount every month) \-Wait until the new owner contacts you \-Only pay rent to someone once you confirm they are the new owner \-Be ready for new owner to maybe want to sell (ask if you can buy it)

n6zzak

What will happen to economy with the rise in popularity of cryptocurrency?

With the explosion of Bitcoin in the last few years and with the whole GME and AMC ordeal, people are highly incentivized to « get in on the action ». And I notice more and more cryptocurrency subreddits popping up (ETH, DOGE, BTT, etc) and people investing in them trying to get rich quickly. What could the effects of having multiple « viable » cryptocurrencies be on the world economy? Note : I am very much a novice in the world of economy and apologize if some terms I use aren’t used properly and all that stuff. An explanation in layman’s terms would be appreciated.

AskEconomics

For a currency to be viable it need to be easily divisible, easily accessible and have a stable and recognize value. I cannot buy food with bitcoin or any crypto. Cryptocurrency are volatile as hell. USD is backed by taxpayers. I can buy grocery food with it and it's value even with inflation is more stable across time than the value of any cryptocurrency. I can have access to USD for fairly small transaction cost. Bitcoin transaction are slow and costly. The idea that cryptocurrency will overtake state currency is bollocks. Cryptocurrency and blockchain as a technology might be use by states on state currency, but a currency not backed by any state will never be able to rivalize state currency. At best, cryptocurrency is similar to gold to due scarcity. At worst, cryptocurrency isn't scarce because there's an infinite amount of cryptocurrency clones. At best cryptocurrency have value through its security, but the retail investors don't need crypto security, they need need standard credit card security. At worst the security of crypto doesn't add any value and the value is only based on offer and demand and right now, people are buying crypto not for the technology, but for the get rich quick scheme so there's ''gamblers'' are going to sell to earn a profit. Same for those mining coins. When more people will sell than the liquidity available, the price will tank. It can take 2 weeks, 4 years, 10 years. This make the bitcoin unstable. If you need to pay wage or if you need to buy anything, the USD will be more useful and convenient and stable than any cryptocurrency ever will. The most likely outcome is not crypto overtaking USD. It's USD bank acount using crypto technology for transaction.

n9eds5

Raise your hand if you’ve been here since Jan/Feb and have continued to quietly buy more and hold through all of the fuckery we are witnessing everyday 🙋💎🙌🏻🚀🚀🚀🚀🚀

Everyday for the last 4/5 months hundreds of thousands if not millions of people all over the globe have been buying and holding GME, yet the price either stagnates or goes down. In what other scenario is this even possible? A supposed finite asset has been bought up in its entirety, yet more and more of these assets magically appear for sale everyday, resulting in more sell pressure than buy pressure that makes the price go down. How the fuck are the SEC and all the other regulators able to sit there and watch these Mickey Mouse fake shares being dumped into the market? As a Europoor, I am completely disgusted at what I’ve witnessed over the last few months and will never invest a single cent in the US markets once this is over. Gary Gensler, what the fuck are you doing?? We know you’re only been in the job 3 weeks, the time for action is now! You know there is fuckery going on in GME, yet it seems you’ve done nothing so far. Enough is enough! To my beloved apes and apettes, I don’t give a fuck about karma. Please raise your hand if you’ve been buying and holding since this all began. Let’s see how many of us have 110% conviction in seeing justice served. 🙋‍♂️ 💎🙌🏻🚀🚀🚀🚀🚀🚀🚀🚀🚀

Superstonk

Here as well. And I agree - if nothing much changes after this. Will never invest in any US based stocks and will advise, yes advise, others to stay away from this rigged casino.. seriously, US stock market is not any better than rigged casino. I would never have thought that I would think this way - I have way more respect for casinos, as casinos are straight forward and, honest for most part, especially compared to US stock market. Edit: My first award. Thanks stranger. :)

m6rb7l

Could this sub band together and just buy the whole company of DLC?

Why simply buy *shares* in such an excellent, diversified company, when we can just... *buy the company*? Delecta Ltd (DLC) **Market cap:** $6,051,727 [https://www.marketindex.com.au/asx/dlc](https://www.marketindex.com.au/asx/dlc) There are 62,000+ of us dumb cunts on here, meaning it would cost less than $100 each to buy all of the company's outstanding shares on the ASX. Our mods would make an excellent board, free uranium dildos for our wives' boyfriends to use on her, basically no downside really 🤔 *Edit 1: here is a more accurate estimate...* Let's value all of company's shares at $0.015 (latest sell price is $0.007) as the "premium" for this premier, amazing company: $15,129,318 total for shares, from what I can see they have roughly $8 million in assets, so say \~$23 million total, let's call it $25m due to paying a premium for their ownership to want to give away rights to their famously high-grade dildos. **$25,000,000 ➗ 62,300 = \~$400 per member here to buy ownership of DLC, including existing dildos + dildo warehousing + 1 x heavily used excavator they use for mining** *Edit 2: I... can't believe I actually need to clarify, but... this is a joke and I do not recommend buying shares of this godforsaken company. If you buy a bunch of shares, the SP will go up and would make it more expensive to* ***theoretically*** *acquire anyway 🤦‍♂️*

ASX_Bets

I would participate. As most are commsex users Min buy $500 we need approx 12k of users to participate. I have secretly been designing a dildo that could shatter the marketplace/your anus. Results are looking promising happy to share my design to the new board once instated as CDO (corporate dildo officer)

t1lz0c

Russian Stocks are not value

Ethical issues aside, the first rule of value is DON'T LOSE MONEY. If you invest in a warmongering dictatorship in the middle of international sanctions because of a perceived future turnaround...MAYBE you will make fantastic money, or maybe you will lose your shirt, but one thing it isn't is value investing.

ValueInvesting

I learned very quickly as an investor in CTC Media that you cannot touch anything related to Russia. I sold it like the day before it was expropriated to a Russian oligarch for pennies on the dollar. I escaped unscathed miraculously and will never again take the risk.

6gusu9

When the first 7 out of 10 posts in a trading sub are MEMES, we have a problem.

This is getting absolutely ridiculous. It's to the point where even the best memes are fucking annoying. This sub has become a cesspool of shit jokes, lambos and questions on how to buy ETH. The vast majority of people here don't even know what ETH does but jump on the meme boat because they feel that's the only way they can contribute. Then when someone posts their own TA, it gets massively shit on. This needs to change before this sub gets so out of control that censorship starts happening and soon there's two major Eth subs and a divide in the community. Please, read the infinite amounts of tutorials/explanations littered throughout google an even this subreddit. Please stop shoving memes down everyone's throats that just want to read the latest news and not have to scroll down 5 pages to see it.

ethtrader

I don't mind the memes. I do mind all the delirious posts about the moon and lambo's. It is clear that many of the people here have never had any kind of wealth and are living in a perpetual orgasmic fog at the idea of swimming in a gold-plated pool filled with money. It is the blindness that accompanies this sort of euphoria that could end up causing problems as the months and years go by.

7vfexy

I've made 500k in profits. I'm fine. HODL is a community problem. If you can't think for yourself, you deserve to lose. I expect downvotes, but is there no one that thinks this is insane? Don't let the Internet tell you how to manage your risks/assets.

Posted this on a FB group last Friday. I'm going to offer an opinion that differs from the HODL. That's not to say I'm not going to buy back in, but it's hard to take away from Reddit's bubbled crypto subreddits, whereas "everyone" has the same hive mind mentality. Here's one that's not. Anyways. I sold out. =\, Today's movement (+) I don't think is sustainable. I think everything is at systemic risk right now. Unlike before, this is a global sell off, and not just a concentrated one (coupled with next weeks stock action). People understand Mt Gox happened. There is billions tied to this market, so that is also going to put a stop on buys for awhile. The hype is dying down. People aren't getting crazy moon gains, so less people are wanting in, collectively. People are getting burned by the crazy price swings - so all the grandmas, aunts and uncles who got in Dec, sorry for your loss. There was a ton of ignorance from people that came in from Dec as well. Further, there is a systemic risk, and it starts and stops with the exchanges. I know I keep touting this horn, but I think Bitfinex sort of fucked this entire market with monopoly money. I don't see the market immediately recovering. A modest bump, but then back down again. At best I see Eth getting to and staying sideways $1300 for a month. At worst, $450-500. It really depends on how people treat this market, and what the hell the SEC is going to do with Tether. This is going to be a long played out process. I could be wrong, so I will stay humble. Psychology has alot to do with it, and with each passing day - people find out more and more about this market. Edit - I was forntunate to begin making the vast majority of my sales Dec31-Jan14, before everything went kaboom. I still have about 30 in the market. In VEN. Just incase anyone is wondering. **I don't want to see people burned, just because they took Internet advice from a collective group of strangers.** Edit 2 - **I've seen this hive mind mentality before with Wall Street Bets, /WSB/ and AMD stock. Moon moon moon. No, it didn't go to the moon.** It crashed, and its just gone sideways ever since everyone jumped on it via Reddit - and said 'hodl'. From $15.50 to $9.00. In that time, Intel (and nVidia*) has outperformed AMD's stock. Lisa Su memes, everywhere. That is this, all over again. Edit 3 - **Even the top post in this subreddit, is Leonardo DiCaprio saying he aint going the fuck anywhere. XD. Its the top post. Do you know from that meme, how many people are actually going to subconsciously follow that advice? It's sad.** If Facebook interferred in our election, Reddit is a transference of that same viral-attitude to get quick rich scheme. Edit 4 - While we like to stick to Crypto, just be aware of what's happening in the broader markets as well. https://www.marketwatch.com/story/buckle-up-this-ultimate-bear-chart-signals-a-pivotal-moment-for-investors-2018-02-05 I did find this quote to be cynical, funny (unforntunately relevent) at the same time. “Bull markets don’t die from old age,” says Guggenheim Partners CIO Scott Minerd. “They typically get shot in the head.”

CryptoMarkets

The bubbled subreddits are strange place indeed. Every cryptos subreddit, they're all certain *their* coin is going to change the world, be the next Google, go to the moon, etc. Every time there's a blog post, a tweet, or the CEO farts, people are eagerly anticipating the price bump from the 'huge' news. If you're in one of these crypto subreddits and buying into all that shit, please take a minute to explore subreddits for crypto's you aren't invested in. You'll see all the same posts there. From reddit's darlings like VeChain all the way down to coins you might not have heard of like Vibe or CyberMiles. And I'm not trying to wholly condemn these subreddits. Some of them are great for keeping up with your favorite projects, getting info from devs, etc. Just remember, it's an echo chamber, and you need to try to think objectively about these things. Not every one of these projects will survive.

9az9da

Dataeum - How did you shift towards blockchain technology?

We made a shift towards blockchain when we realized that this technology could solve all the problems regarding transparency,traceability and immutability of the data provided. After, there was a lot of iterations to find the best way of doing it and we’ve been helped a lot by tech teams and our advisors.

crypto_currency

THANH-QUY NGUYEN - Blockchain Developer; Blockchain developer by day, day trader by night, he has been following the blockchain technology with a keen interest since mid-2016. He has worked in the most disruptive and technical fields there can be. His expertise goes also through finance and quantum physics.

9t7vfb

What is Pigzbe?

Pigzbe is a decentralised application that allows people to create their own enclosed, autonomous financial networks and to exchange money within them.   Decentralisation means that no central authority is needed for operation. Anybody can participate and the degree of decentralisation increases as the number of  independent participants grows.  The complexity of linking existing banking systems causes delays and inefficiencies which increase costs to a level that limits practical minimum transaction sizes. By employing distributed ledger technology, we circumvent the current convoluted,  centralised global payment infrastructure, creating efficient and trustless networks.  The back-end code that powers the DApp runs autonomously on the decentralised network, rather than on centralised networks such as cloud hosting. The DApp builds on the core technology through Smart Contracts and User Interfaces in order to provide some utility.

crypto_currency

There is a vital fifteen-year window of opportunity, from age 3-18, to transform the UK’s future financial health.Pigzbe is designed to teach kids 6+ how to understand, discuss and articulate new knowledge around money habits in the real world.

9az9da

Dataeum - How did you shift towards blockchain technology?

We made a shift towards blockchain when we realized that this technology could solve all the problems regarding transparency,traceability and immutability of the data provided. After, there was a lot of iterations to find the best way of doing it and we’ve been helped a lot by tech teams and our advisors.

crypto_currency

Dataeum has already proven a high demand for physical data it’s going to collect. It was a part of a large Google case study concerning data accuracy and has already licensed data for large data companies.

9t7vfb

What is Pigzbe?

Pigzbe is a decentralised application that allows people to create their own enclosed, autonomous financial networks and to exchange money within them.   Decentralisation means that no central authority is needed for operation. Anybody can participate and the degree of decentralisation increases as the number of  independent participants grows.  The complexity of linking existing banking systems causes delays and inefficiencies which increase costs to a level that limits practical minimum transaction sizes. By employing distributed ledger technology, we circumvent the current convoluted,  centralised global payment infrastructure, creating efficient and trustless networks.  The back-end code that powers the DApp runs autonomously on the decentralised network, rather than on centralised networks such as cloud hosting. The DApp builds on the core technology through Smart Contracts and User Interfaces in order to provide some utility.

crypto_currency

The app provides the means to construct and submit these transactions to the network through an intuitive user interface, and to display the data they represent in an attractive and easily understandable manner

sr16d8

I tried to post in the Ontario Reddit that inflation was under reported and I got downvoted through the floor

I recently posted something saying that Canadian inflation was likely closer to 8–10% rather than the number they gave of 4.8% and I just got downvoted like crazy. I tried to explain they don’t report many increases, and referenced used cars and I think I had one person agreeing and 20 downvoting me and sending me every stupid ctv news article saying it was only 4.8%. I tried to use basic logic also, like how is it possibly that US is 7.5% and ours is only 4.8%. And eventually they removed my post for misinformation.

CanadianInvestor

Inflation isn't 'underreported', it's that the CPI basket may not accurately reflect what people are spending their money on. Go look at the breakdown of the CPI and tell us where it deviates from the average Canadian.

xpjgef

Dividend paying ETFs & individual stocks is the best strategy for me.

49yo focused primarily on growth ETFs over the last 25 yrs, and focused on dividend paying stocks over last 3 yrs. I love the process of building up my 10 dividend paying stocks, digging in to each company and seeing the higher yields compared to my ETFs. But having ETFs, largely VTI, VXUS, iShares, that also pays regular dividends has been a boon to my dividend income (still DRIPing at this point) strategy, albeit with much lower yields. The combination of growth and fixed income is what helps me sleep at night.

dividends

I'm 31 now, but started more seriously investing last year. The market has been making me nervous because this is the first time I've had any kind of money in the market, but this is also proof that it comes in cycles and be consistent helps. This is a great inspiration to me, thank you.

9nhbhu

Quick warning to any single women looking to cut costs by getting a roommate.

Ask for women only. I initially had my ad open for everyone because I didn't want to narrow the window too much. As long as you're a professional around my age and aren't a sleazeball, I didn't mind. It only took about two days for the messages from thirsty men asking if I would be open to living with them rent free in exchange for sex. Which was always phrased as "help around the house/cleaning" or "companionship". I ignored most, but one guy called me directly. Now someone did ask me if "a blowjob a week was really that bad in exchange for free rent". From a pragmatic standpoint, no. From a "personal morals, safety, and mental health" standpoint, YES. Don't EVER feel like under the table prostitution is your only option. Do NOT let someone coerce you into doing it no matter how much you need the money. If sex work is something you want to do, that's perfectly fine. Just...don't start through these guys. And even if it started out as a BJ a week, these guys will never stop asking for more. And no one needs their life controlled by the sexual whims of some dickhead who thinks he's entitled to your body in exchange for a roof over your head. I'm sorry it got a bit ranty towards the end there, but that was a disgusting couple of days and I'm now working on getting a part time job instead of a roommate. Would rather have some extra expenses than have to deal with so many creeps.

povertyfinance

This happened to my brother and his girlfriend when looking for a roommate. The person renting out the room said they could only rent this room out if his girlfriend did “sexual favors” in return. Absolutely disgusting.

liegc9

First Personal Goal Reached at 16 Years Old

I've started dividend investing in September of 2020, at the age of 15. 5 Months later and I reached my first investing goal of reaching $1000 in portfolio value, generating $40 annually. Now, this may not seem like a lot but as a high school student who doesn't have a job and saving allowances from my parents, it's a start. The purpose of this post is to tell the people who may not have a lot of money to invest like me to not give up, I know that it may seem pointless to invest such a small sum of money but with time it will grow and just let time do the work for you. I hope this post inspires at least a single person to start investing, even if it is a small amount of money. Remember, the hardest part is getting started.

dividends

WTG kid! Starting early, no matter how small, will pay huge dividends down the road. *pun intended. All those extra years taking advantage of the magic of compounding returns will set you up beautifully. 📈

laikd0

I feel like clarification is needed about Today

There’s a lot of new people on here that don’t really understand the play going on right now on both sides and I felt like we need to clear up some misconceptions so you can make your own decisions. **Why no spike today?**: First of all, we can’t know on what day the Squeeze happens / they cover their shorts. All we know is it has to happen sooner or later since the hedgefunds are losing millions if not billions EVERY SINGLE DAY THEY DON’T COVER.  They use several tactics to delay it, but they can’t circumvent it. They’re bleeding, and all the retail investors holding are slowly sucking the blood out of their fat ugly bodies. It might take just a few days, or weeks... But eventually, when they cover, WE retail investors get to set the price. That’s why you keep seeing 10k (or 69420$) is not a meme. Because it’s not. We also know they’re down BAD. Why? Because they’re attacking us any way they can and wasting millions doing so. So let’s see what tactics they are using: **Short ladder attacks**: What is a short ladder attack? The big hedgefunds are putting in lower and lower bid prices between themselves. There is little to no volume on those trades, and since no one can buy, it "looks" like the stock is plummeting. It’s only effective if we would sell. https://www.reddit.com/r/wallstreetbets/comments/l9ay2s/short_ladder_attack_explained/?utm_source=share&utm_medium=ios_app&utm_name=iossmf https://www.reddit.com/r/wallstreetbets/comments/la6vcb/wall_street_plan_trying_to_psychologically_scare/?utm_source=share&utm_medium=ios_app&utm_name=iossmf Just look at the volume. People are not selling: https://www.reddit.com/r/wallstreetbets/comments/la5upr/dont_panic_and_just_look_at_the_fucking_volume/?utm_source=share&utm_medium=ios_app&utm_name=iossmf **Infiltrating WSB and other social media**: Here are some random screenshots I took of WSB Synth. Notice the people saying to jump ship and to take GME gains and invest into FORD. Obvious shills. There’s tons of them. Always new, or old accounts that suddenly post again. All those people came in just in time when the short ladder attacks started, just to make it look like people are panic selling and convince us to sell: https://www.reddit.com/r/wallstreetbets/comments/lahqex/notice_the_two_obvious_melvin_employees_time_to/?utm_source=share&utm_medium=ios_app&utm_name=iossmf **Manipulating the Media**: Here are some News channels caught lying / manipulating the market: (SEC if you read this...) https://www.reddit.com/r/wallstreetbets/comments/la8n7o/fake_news/ https://www.reddit.com/r/wallstreetbets/comments/la6e16/cnn_back_off_this_is_a_lie_literally_a_5_second/ https://www.reddit.com/r/wallstreetbets/comments/l9runf/the_silver_squeeze_is_a_hedgefund_coordinated/?utm_source=share&utm_medium=ios_app&utm_name=iossmf https://www.reddit.com/r/wallstreetbets/comments/la8x7g/bloomberg_now_insisting_gme_is_old_news_ha/?utm_source=share&utm_medium=ios_app&utm_name=iossmf Now let’s get some clarification on **SILVER:** There is so much misinformation swirling around concerning Silver. People don’t seem to realize 3 things: 1. **Silver is not a get rich quick move. Silver is a LONG TERM HOLD move.** GME is a risky short term play. So YOU decide what makes more sense to get in right now. (Personally I sold all my stocks to buy GME today. YOLO)  2. The actual Silver sub on reddit does not advocate buying SLV, nor do most of them believe SLV is the move to make.  3. The hedge funds would love for you to go all-in on Silver and ignore the GME opportunity. Every dollar spent on SLV instead of GME is a double win for them, since SLV is inverting GME and they own a ton of Silver and that’s why they’re pushing this narrative in the media.  SLV inverting GME: https://www.reddit.com/r/wallstreetbets/comments/la4mog/stop_buying_slv_you_smooth_brained_retards_its/?utm_source=share&utm_medium=ios_app&utm_name=iossmf The amount of paper contracts or IShares SLV available is basically infinite. Physical silver is a rare physical commodity with a finite supply, and a very low supply of retail sized bars/rounds/coins. **IF** you want to go into silver for whatever reason, buy physical. But that’s just my retard opinion. **SILVER ISN’T “REDDITS NEXT BIG PLAY“.** You guys need to realize the GME situation is very unique and WSB is not, and never was about starting crazy short squeezes. GME is a rare opportunity where the big guys actually fucked up BIG TIME. Silver squeeze not happening links: https://www.reddit.com/r/wallstreetbets/comments/la1o04/there_is_no_silver_short_squeeze_happening_none/?utm_source=share&utm_medium=ios_app&utm_name=iossmf https://www.reddit.com/r/wallstreetbets/comments/la1xhf/guess_who_owns_tonnes_of_slv_options_fuck_citadel/?utm_source=share&utm_medium=ios_app&utm_name=iossmf https://www.reddit.com/r/wallstreetbets/comments/l9runf/the_silver_squeeze_is_a_hedgefund_coordinated/?utm_source=share&utm_medium=ios_app&utm_name=iossmf Well. Let’s see to what extend they fucked up exactly:  **Short Version:** The short version is that a review of the **'strategic fails–to–deliver'** data indicates that institutional insiders may have counterfeited a massive number of Gamestop shares which is why they tried to stop retail investors from buying more shares on Thursday. There are are **71 million shares** of GME that have ever been issued by the company. Institutions have reported to the SEC via 13F filings that they own more than **102,000,000** shares (including the 13% of GME stock is owned by Ryan Cohen). That is already 30,000,000 shares more than even exist. On top of the shares reportedly owned by institutions, retail investors may currently hold 50+ million shares (counting both long holdings and call options – both ITM and OTM). Once you include call options, **retail investors may already hold more than 100% of GME (not just 100% of the float, more than 100% of the actual company)**. This would be definitive proof of illegal activity at the highest levels of the financial system. Long version here: https://www.reddit.com/r/wallstreetbets/comments/l9rk78/sec_doj_60_minutes_public_data_suggests_massive/?utm_source=share&utm_medium=ios_app&utm_name=iossmf **At these levels it’s NOT about the price, it’s about the number of shares in the hedgefunds possession. That’s why they want you to sell so bad.** 🤚🏼💎🤚🏼💎🤚🏼💎🤚🏼💎🤚🏼💎🤚🏼💎🤚🏼💎🤚🏼💎 Last but not least I’m holding because this is a once in a lifetime opportunity. I’m holding because I hope to see a better future and I’m holding for all you out there. To the Moon or zero. 🦍🦍🦍 APES. STRONG. TOGETHER. 🦍🦍🦍 Disclaimer: This is not financial advice, I’m literally an ape. I just like the stock. Do your own DD and avoid the fake new and/or resurrected accounts here and the manipulative Media. Edit: wanted to post a few new posts but it seems like I’m shadow banned. No one can see my posts. I don’t know if I got caught in some kind of spam filter. u/only1parkjisung can a mod confirm this?

wallstreetbets

Please make this : >At these levels it’s NOT about the price, it’s about the number of shares in the hedgefunds possession. That’s why they want you to sell so bad. Like this : #At these levels it’s NOT about the price, it’s about the number of shares in the hedgefunds possession. That’s why they want you to sell so bad. That is what people do not understand and the price alone is their metric.

noc4sc

If the squeeze was worth only $1,000 a share, or 5,000 a share or even 10k a share.. You know the hedgies would have just covered by now...

Dear Reddit world, as a new front page post, I need to call your attention to something. You could make some real change in this world. Please read... https://www.reddit.com/r/Superstonk/comments/mvk5dv/a_house_of_cards_part_1/?utm_source=share&utm_medium=ios_app&utm_name=iossmf Follow u/Atobitt to learn more Think about it. Countless times to have covered, ended this, and moved on. They know what they did, they expect to now make double, even quadruple off their bet, that we are too stupid to pull this off. They don’t plan to cover, but they will be forced to. IF we HOLD. For them it’s their ego, their livelihood For us it’s our futures, and the future of a better market for all. Do not fucking sell, until it’s EIGHT figures or more. For fucks sake. It’s pretty simple. Edit: IDGAF what a shill has to say. It’s obvious with you presence, we are on the right path. This is G M (fucking) E, and we know we are headed the right way, when we keep encountering shitty little trolls along the way. If you need something to read, someone to follow who you can trust, here’s some DD https://www.reddit.com/r/Superstonk/comments/mvk5dv/a_house_of_cards_part_1/?utm_source=share&utm_medium=ios_app&utm_name=iossmf Follow u/Atobitt to learn more

Superstonk

You have to go back to what MC said in February: they never intended to cover their bet...ever. If they didn’t cover at $20-300, what makes anyone think they will cover at any price unless they are forced? They must be forced and that’s just that...

n9eds5

Raise your hand if you’ve been here since Jan/Feb and have continued to quietly buy more and hold through all of the fuckery we are witnessing everyday 🙋💎🙌🏻🚀🚀🚀🚀🚀

Everyday for the last 4/5 months hundreds of thousands if not millions of people all over the globe have been buying and holding GME, yet the price either stagnates or goes down. In what other scenario is this even possible? A supposed finite asset has been bought up in its entirety, yet more and more of these assets magically appear for sale everyday, resulting in more sell pressure than buy pressure that makes the price go down. How the fuck are the SEC and all the other regulators able to sit there and watch these Mickey Mouse fake shares being dumped into the market? As a Europoor, I am completely disgusted at what I’ve witnessed over the last few months and will never invest a single cent in the US markets once this is over. Gary Gensler, what the fuck are you doing?? We know you’re only been in the job 3 weeks, the time for action is now! You know there is fuckery going on in GME, yet it seems you’ve done nothing so far. Enough is enough! To my beloved apes and apettes, I don’t give a fuck about karma. Please raise your hand if you’ve been buying and holding since this all began. Let’s see how many of us have 110% conviction in seeing justice served. 🙋‍♂️ 💎🙌🏻🚀🚀🚀🚀🚀🚀🚀🚀🚀

Superstonk

I recently graduated so I don’t have an income source until mid June. I have XX shares and want to buy more so I’ve been working on a drop shipping website and will use all profits to buy GME. Best thing to do is just sit back, buy, hodl, vote and chase success 🦍🚀

9xals1

EntrepreneurShop(ESO) HEALT & INSURANCE

In addion to focusing on e-money, e-commerce, payment systems. We will also collaborate with health insurance, accidents, old-age benefits to make our users more comfortable and made comfortable in everything they need with just a simple device but can fulfil all needs. If you have pain or have to undergo treatment in the hospital you no longer need to bother to pocket money, insurance cards or smartphones because we will integrate with the insurance that works with us so that you only have to carry UGW devices (such as rings, bracelets etc.) and you will handle you quickly. His technology will be beneficial when the user has an accident. [https://e-so.co/](https://e-so.co/)

crypto_currency

existing solutions offer to solve just one problem at a time, our team is up to build a secure, useful, & easy-to-use product based on private blockchain. It will include easy cryptocurrency payments integration, and even a digital arbitration system

n9eds5

Raise your hand if you’ve been here since Jan/Feb and have continued to quietly buy more and hold through all of the fuckery we are witnessing everyday 🙋💎🙌🏻🚀🚀🚀🚀🚀

Everyday for the last 4/5 months hundreds of thousands if not millions of people all over the globe have been buying and holding GME, yet the price either stagnates or goes down. In what other scenario is this even possible? A supposed finite asset has been bought up in its entirety, yet more and more of these assets magically appear for sale everyday, resulting in more sell pressure than buy pressure that makes the price go down. How the fuck are the SEC and all the other regulators able to sit there and watch these Mickey Mouse fake shares being dumped into the market? As a Europoor, I am completely disgusted at what I’ve witnessed over the last few months and will never invest a single cent in the US markets once this is over. Gary Gensler, what the fuck are you doing?? We know you’re only been in the job 3 weeks, the time for action is now! You know there is fuckery going on in GME, yet it seems you’ve done nothing so far. Enough is enough! To my beloved apes and apettes, I don’t give a fuck about karma. Please raise your hand if you’ve been buying and holding since this all began. Let’s see how many of us have 110% conviction in seeing justice served. 🙋‍♂️ 💎🙌🏻🚀🚀🚀🚀🚀🚀🚀🚀🚀

Superstonk

I consider myself a veteran. Not an OG, those were in well through 2020, but I was there when the boy from Bulgaria stole our moment. Through the force of will of hodlers throughout the world, we might just get it back.

n6xif1

PSA: Don't clutter your mind with chasing stupid cashback program, credit card offers, or privileged banking

I've noticed a significant increase in the cashback program, reward points and credit cards in the last 5 years Some of the examples: 1. Do a recharge of Rs 100 to win Rs 10 cashback 2. Get our free credit card and spent 5 Lakh in a year to get annual fees cancelled 3. Maintain 10L as the minimum balance in our bank to become a privileges member which will give you extra benefits. 4. Create a bank account with us and fund with 10K to win a 100Rs voucher. Here is the reality. You will spend much more with your credit card than you wanted to, just so you get the relief that you didn't have to pay annual fees. Your 10L minimum balance would have made you 10K per month if you have invested instead. Free demand drafts you will get as a privileged member will never amount to 10K in a month. In nutshell, all these programs are just an illusion of savings and you are not only spending more but also saving less. So next time instead of spending 1 hour trying to find the best deal for 100rs recharge, invest that time in your education instead, learn new things. Your increased income in upcoming years will be much higher than 10rs saving. Same with bank account. Don't try to match the high balance requirement. Don't keep a penny higher than your liquidity needs in a saving account. **Finally, I wanted to add that some deals are really good and are worth it. But 90% of the deals are crap and not worth your time.** **Update: Many people are just missing the point of this post. Just because you use everything wisely doesn't mean everyone is. If it was the case, credit card companies would bankrupt. So I'm not talking about you. Don't argue, just smile. Don't comment and brag either. It doesn't help the people who need to understand this.**

IndiaInvestments

I have 3 credit cards. 1. Amazon Pay ICICI : Free. All my Amazon shopping goes here and my go to card for my daily expenses because of the cbs . 2. ICICI Rubyx : Free - because it came bundled with my salary account. Highest credit limit hence keep this for emergencies before I could liquidate my savings. Also use this for Icici card benefits in flipkart that comes at times. 10 percent discount. Amazon pay icici was not giving 10 percent discount on Flipkart for whatever reason. 3. Standard Chartered Super Value titanium : Free - because this came bundled with another salary account. Use this for all my fuel and electricity needs. Has 5 percent cashback on both and that's a steal deal. I've never crossed the credit limits in any of the above. Never missed a payment. Heck never even used them if I don't have cash in my account - I don't use and wait for salary to pay. I haven't spent a single rupee because there was a discount. I spent only what I would have spent anyways. And did I tell you, my primary spendings are from my cc for the last 5 years. Credit card is not all that bad it you use it right, honestly..but only a fraction of the cc users would have that attitude which is how the banks make money..and we make cash backs/points. Also, grab that credit card if it comes with your salary account.

krjbnl

A beginner's guide to investing in the bond market (and debt mutual funds).

2020 has been a wild ride for investors in the financial markets. All over the world, stock markets crashed in March, central banks started to *print money* (out of thin air) at [an unprecedented rate](https://www.cityam.com/almost-a-fifth-of-all-us-dollars-were-created-this-year/) and the markets bounced back to new all-time-highs even though the global economy haven't fully recovered from the pandemic. A lot of investors have been reminded about the importance of managing the risk & protecting the downside of the investment portfolio. As a follow-up to my earlier post about [stock market investing](https://www.reddit.com/r/IndiaInvestments/comments/k7v0dg/a_beginners_guide_to_investing_in_the_stock/), let's look at how investing in bonds can benefit investors. Compared to stocks, bonds are a low-risk *stable* investment. Holding bonds in an investment portfolio reduces the risk & volatility of the overall portfolio, while ensuring decent returns for the investor. ## What is a bond ? Most of us are familiar with a traditional Fixed Deposit. To create an FD offline, we'll go to a bank and give our money to them for a specific period of time at a specific interest. They give us a ['receipt'](https://raghbirsinghcollegeofeducation.com/images/bankfd/PNB%20-%20Confirmation%20slip.jpg) as a representation of the FD. The receipt will have the FD owner's name, principal, interest rate and maturity date. We can't transfer the FD to someone else. During the duration of the FD, we don't care about how & where the bank uses our money. We merely want the money to be kept safe, and we want to continue receiving/accumulating interest. Once the FD duration is over, we go to the bank to return the receipt and they'll give us the money along with the interest. As long as the bank stays afloat, it's a risk-free way of earning returns on our money. Essentially, we have lent our money to the bank, and the bank repays the money at a later date with some interest. This is the simplified version of how a bond works. A bond is a *fixed-income* debt instrument that represents a loan given by the investor to the borrower (a.k.a bond issuer). In the case of an FD, the borrower is the bank and we are the investor. Bonds are known as fixed-income instruments because they provide a fixed 'income' to the investor via the regular interest payments. Unlike FDs, bonds are actively [traded in the secondary market.](https://www1.nseindia.com/products/content/debt/wdm/ndm.htm) Bonds come in all shapes and sizes, and it can be tough for a new investor to choose the fixed-income investment that's suitable for their needs. To understand things better, let's look at the basic attributes of a bond. ##Bond Attributes 1. **Face Value** : Also known as Par Value. It's the price of the bond when it's first issued. It is also the amount of money the bondholder will get once the bond matures. 2. **Coupon Rate** : It's the interest paid by the bond. It's represented as a percentage of the bond's face value. For most bonds, the coupon payments are paid once or twice a year. 3. **Term to Maturity** : Simply known as Maturity, it's the lifetime/tenure of the bond. The time period after which investors will be paid back the money. The above attributes are constant/fixed for most bonds. Apart from these, there are other dynamic attributes : 1. **Price :** This is the market value of the bond after it has been issued. Since all bonds are [marked-to-market](https://www.investopedia.com/terms/m/marktomarket.asp), the bond's price will fluctuate in relation to the price of other bonds. When a bond is freshly issued, the price will be equal to the face value. But, soon after, the price will vary depending on market conditions 2. **Credit rating :** This indicates the bond issuer's ability to repay the debt. The credit rating of a bond can change during the lifetime of a bond. A bond's credit rating is often used as a measure of how much risk an investor takes by investing in such bonds. 3. **Yield-to-maturity (YTM)** : YTM is the expected return an investor can get by holding a bond till maturity. It depends on the current market price & the remaining years till maturity. YTM is considered as the XIRR of the bond, since it considers the 'time value' of the future coupon payments. 4. **Modified Duration** : It is a measure of how much the bond prices can change when the interest rates change in the market. For example, if the modified duration of bond is 5, it means that the bond's price can increase/decrease by ~5% when the interest rate changes by 1%. Long-term bonds have higher Modified Duration, because they're more sensitive to interest rate changes. 5. **Macaulay Duration** : Simply known as Duration, it's a measure of how long it takes for an investor to earn back the money they invested. (ie) It's the duration needed for investors to be paid back the bond's price. Duration shouldn't be confused with Maturity, although both are measures in years. ## Bond categories On a broader level, there are two categories of bonds : ###Government bonds These are bonds issued by the government - Central govt, state govt or municipal govt. Government entities issue bonds to raise money from the public for various purposes. Bonds issued by the government are virtually risk-free since they have a **Sovereign Guarantee** (ie) The government always repays its debt. Government bonds have a maturity of a few weeks to a few decades. Treasury Bills are short-term bonds issued by the Central Government with maturity of 3 months, 6 months or 12 months. G-Sec (also called as 'dated G-Sec') are long-term bonds issued by Central & State Governments with maturity of several years. Although government bonds are risk-free for a domestic investor, it's not the same for foreign investors. Each country is assigned a [sovereign credit rating](https://en.wikipedia.org/wiki/List_of_countries_by_credit_rating#Standard_&_Poor's) based on the country's economic stability. [India's international credit rating](https://economictimes.indiatimes.com/markets/stocks/news/indias-credit-rating-cut-puts-it-one-step-away-from-junk/articleshow/76151725.cms) is BBB- . International bond investors use the country's sovereign credit rating to assess the risk of investing in the government bonds of a particular country. In the domestic bond market, government bonds are the most actively traded & they have high liquidity (ie) A government bond can be easily sold at a fair price, whenever we want. Moreover, financial institutions like banks are required to hold a certain percent of their assets in short-term government bonds. So, it's guaranteed that there'll be a lot of buyers & sellers of govt bonds. If there's a mismatch between the supply and demand in the govt bond market, RBI will buy/sell government bonds (via [Open Market Operations](https://www.investopedia.com/terms/o/openmarketoperations.asp)) to restore the balance of liquidity in the bond market. If we look at the list of [Outstanding Government Securities](https://rbidocs.rbi.org.in/rdocs/Content/PDFs/OS_GS_L2014.PDF), we can see that bonds issued at different times have different interest rates. The interest rate of government bonds depend on the economic conditions & the demand/supply in the bond market. When there's high demand, the govt can afford to issue bonds at lower interest rates. Conversely, when the govt needs to raise money quickly, they'll have to issue bonds with high interest rates to lure investors. ### Corporate bonds Any bond issued by a non-government entity comes under this broad category. More specifically, any bond without a sovereign guarantee can be considered as corporate bonds. The issuer can be a PSU, private bank, private corporation. The different types of corporate debt include Commercial Paper, Certificate of Deposit, Secured/Unsecured Debentures etc. Corporate bonds' interest rates depend on the issuing corporate entity and the economic condition. Each corporation is assigned a Credit Rating to indicate its 'credit-worthiness' (ie) Its ability to pay back the debt. The credit rating of an organisation and its bonds can change based on the corporate's finances, its total debt and its future economic prospects. Credit rating upgrades & downgrades are a very common occurrence in the bond market. The credit rating for the issuer is given by several rating agencies like Standard and Poor's, Moody's, Fitch. The S&P credit ratings for long-term bonds, in the order of highest rating to lowest rating, are AAA, AA+, AA, AA-, A+, A, A-,BBB+, BBB, BBB-,BB+, BB, BB-, B+, B, B-, CCC+, CCC, CCC-, CC, C, D. The bonds with credit rating AAA to BBB- are termed as **investment grade** bonds. All companies strive to become investment-grade so that more investors will buy their bonds. Naturally, well-established & financially-stable companies tend to have a higher credit rating than emerging companies. Since the repaying capacity of emerging companies is questionable, they have to issue bonds with a higher interest rate to entice investors into buying the bonds. ## Types of bonds The most common type of bond is called a **Straight Bond**. The list of attributes (in the 'Bond Attributes' section) applies to Straight bonds. However, there are some special types of bonds in which the attributes vary. 1. **Floating-Rate Bond** : The coupon/interest rate of these bonds varies on a regular basis. The interest rate is usually tied to a short-term interest rate benchmark. When the benchmark rate changes as a result of economic conditions, the interest rates of these bonds are also changed. 2. **Zero Coupon Bond** : These bonds have no coupon payments. Instead, the bonds are sold at a price that's discounted from the face value. For example, if the face value of the bond is ₹100, the bonds are sold to investors at ₹95. The 'returns' from the bond is the difference between face value and discounted price (ie) ₹5. Short-term bonds, like Treasury Bills, tend to be zero-coupon bonds. 3. **Callable Bond** : Some bonds have a 'callable' option. (ie) The bond issuer can call back the bond before it reaches maturity & give back the money to the investor. Generally, the bond issuer uses the call option to buy back the bond if the current interest rate in the market is lower than the bond's interest rate. 'Callability' is one of the extra attributes that a bond can have. 4. **Convertible Bond** : Companies sometimes issue these special bonds that can be converted to stocks of that company. These bonds offer dual benefits to the investor - If the company's stock performs well, the investor can convert the bond to stocks & reap the benefits of the stock's growth. If the stock performs badly, the investor can still earn a fixed return by keeping the bonds. Investor's downside is protected, while letting them benefit from the company's potential upside. 5. **Perpetual Bond** : These bonds have no maturity date. Investors receive coupon payments [forever](https://news.yale.edu/2015/09/22/living-artifact-dutch-golden-age-yale-s-367-year-old-water-bond-still-pays-interest) (unless they sell the bond in the secondary market or the bond issuer buys back the bond). Since there's no maturity, perpetual bonds are often compared to dividend stocks. However, perpetual bonds are more risky than normal bonds. The bond issuer can choose not to make the coupon payments. Also, the bonds can easily be 'written down' if the bond issuer is in severe financial trouble. (Eg: [Yes Bank](https://economictimes.indiatimes.com/wealth/invest/yes-bank-crisis-risks-of-investing-in-perpetual-bonds/articleshow/74548419.cms), [Lakshmi Vilas Bank](https://www.thehindubusinessline.com/money-and-banking/rbi-writes-down-lvb-tier-2-bonds-what-are-these-bonds-and-why-have-investors-been-caught-unawares/article33193293.ece)) 6. **Inflation-Indexed Bond** : A special type of bond where the face value and coupon payments vary depending on the inflation. These bonds serve as a 'hedge agains inflation' by preserving the value of the bond by indexing it with respect of inflation. In US, it's known as Treasury Inflation-Protected Security (TIPS). [In India, the bonds aren't as popular](https://m.rbi.org.in/Scripts/FAQView.aspx?Id=91). Although it seems like a great investment, the inflation-adjusted price of the bond is taxed. So, it can diminish the investor's returns. 7. **Sovereign Gold Bond** : A unique bond issued by the RBI (on behalf of the Government) where the face value is pegged to the price of gold. Investors choose how many 'grams of gold' they want to buy, which will determine the face value of the bond. The returns fluctuate based on the movement of gold price. The bond maturity is 8 years. The coupon rate is 2.5% and the coupon payment is done twice a year. From the investor's perspective, it's a risky-free way to 'invest' in gold. From the government's perspective, it's a way to reduce the demand for imports of physical gold. ##Debt mutual funds Retail investor can buy bonds directly through portals like [NSE goBID](https://www.nseindiaipo.com/eipodc/rest/login), [The Fixed Income](https://www.thefixedincome.com/), [Golden PI](https://goldenpi.com/), [Zerodha Coin](https://coin.zerodha.com/bonds/invest), [Fincues](https://fincues.com/bonds). However, investors would benefit by investing in debt mutual funds instead of buying bonds directly. Debt mutual funds invest in bonds of all varieties and all durations. There are several types of debt mutual funds, and each of them can be used for specific purposes. Investing in debt mutual funds has two key benefits : 1. **Diversification** : Instead of putting our capital in a single bond, we'll be investing our capital in a diversified portfolio of bonds. So, the risk of loss is significantly reduced. Sometimes, the face value of some bonds can be large enough that the average investor couldn't afford it. Examples : [#1](https://i.imgur.com/uzxusYd.png) , [#2](https://i.imgur.com/4rjCntg.png), [#3](https://i.imgur.com/psVHhMU.png). If investors want exposure to such high-yield bonds, investing in debt mutual funds might be the only way. 2. **Taxation** : When we buy a bond directly, we'll get regular coupon payments. Those payments will be taxed as per the investor's income slab, which'll diminish the overall return from the investment. In a debt mutual fund, the coupon payments are reinvested (in Growth plan). So, investors are taxed only when we redeem from the fund. For young investors, buying bonds directly is disadvantageous from a taxation standpoint. They won't need the coupon payments as a source of income, since they'll most likely have a job that provides regular income. ##Types of Debt mutual funds Debt mutual funds are classified based on two different criteria : The maturity/duration of the bonds and the type of bonds. A debt fund's Macauley Duration will be slightly lower than (or equal to) the fund's Average Maturity - The weighted average of the time taken for all the bonds in the portfolio to mature. So, a fund's Macauley Duration can be seen as a *rough estimate* of the time taken for all the bonds to mature. #####Categories based on bond maturity and Macaulay duration Fund type | Bond maturity & duration ---|--- [Overnight fund](https://www.prudentadvisors.in/wp-content/uploads/2018/08/debt-mf-1.png) | Invest in bonds with maturity of 1 day Liquid fund | Invest in bonds with maturity of upto 91 days Ulta Short Term fund | Invest in short-term bonds so that the portfolio's Macauley Duration is 3-6 months Low Duration funds | Invest in short-term bonds so that the portfolio's Macauley Duration is 6-12 months [Money Market fund](https://www.prudentadvisors.in/wp-content/uploads/2018/08/debt-mf-categorization-2.png) | Invest in bonds with maturity of upto 1 year Short Duration fund | Invest in short-term bonds so that the portfolio's Macauley Duration is 1-3 years Medium Duration fund | Invest in medium-term bonds so that the portfolio's Macauley Duration is 3-4 years (Can buy shorter-term bonds during averse market conditions) Medium to Long Duration fund | Invest in medium-term bonds so that the portfolio's Macauley Duration is 4-7 years (Can buy shorter-term bonds during averse market conditions) [Long Duration fund](https://www.prudentadvisors.in/wp-content/uploads/2018/08/debt-mf-category-3.png) | Invest in long-term bonds so that the portfolio's Macauley Duration is more than 7 years Dynamic bond fund | Invests in bonds of all durations #####Categories based on bond type Fund type | Bond type ---|--- Corporate bond fund | Atleast 80% of portfolio is high-quality (credit rating of AA+ and above) bonds from corporations Credit risk fund | Atleast 65% of portfolio is low-quality (credit rating of AA and below) bonds [Banking & PSU fund](https://www.prudentadvisors.in/wp-content/uploads/2018/08/debt-mf-categorization-4.png) | Atleast 80% of the portfolio is bonds issued by banks, PSUs, public financial institutions Gilt fund | Atleast 80% of portfolio is government bonds of all maturities. Gilt fund - 10 year Constant Maturity | Atleast 80% of portfolio is government bonds, and the portfolio's Macauley Duration is 10 years Floating rate fund | Atleast 65% of the portfolio is floating-rate bonds. FMP fund | Closed-ended fund with a fixed maturity period. ## Risks of Debt mutual funds With so many types of debt mutual funds, it can be overwhelming for an investor to choose the right debt fund for their requirement. It's important to consider the risks (and not the returns) while choosing a debt fund. Here are the different risks that investors face in debt mutual funds : ###Credit Risk This is the biggest risk in debt mutual funds (and bonds), and it can cause a permanent loss of capital. Credit risk occurs when the 'creditworthiness' of the bond issuer is in question & the bond issuer is unable to repay the interest (or principal) to the bond holder. When it happens, the bond's credit rating will be downgraded to D (for default), and the bond holder suffers a loss. When a bond issuer is unable to repay the debt, it's called as a **credit event**. In debt mutual funds, credit event has happened time and time again. Any fund that holds non-government bonds is subject to credit risk. **Even liquid funds are not safe from credit risk**. [Ballarpur bond default](https://www.capitalmind.in/2017/02/ballarpur-downgraded-to-default-and-taurus-debt-funds-get-whacked/) has caused Taurus Liquid fund's NAV to fall by 7.22% in one day. Investors who used liquid funds as an 'alternative to Savings Account' would have been shocked when the reality set in. Over the years, bond defaults have spooked debt fund investors [many times](https://economictimes.indiatimes.com/markets/stocks/news/10-companies-default-on-bond-interest-payments/articleshow/56699160.cms) - [IL&FS bond default](https://www.livemint.com/Companies/YlDSvn0mgNngEEJPl9EcPJ/ILFS-Financial-Services-declares-fresh-defaults-of-395-cro.html), [DHFL bond default](https://timesofindia.indiatimes.com/business/india-business/debt-mutual-funds-navs-halve-as-dhfl-defaults-on-bonds-payment/articleshow/69668367.cms) causing debt fund NAVs to [fall upto 9%](https://www.personalfn.com/dwl/do-you-own-these-debt-schemes-with-exposure-to-dhfl), [Jindal Steel bond default](https://www.capitalmind.in/2016/03/jindal-steel-and-power-downgraded-to-default-a-39000-cr-debt-problem-as-franklin-mf-takes-25-haircut/), [Essel bond default](https://www.livemint.com/companies/news/mutual-funds-withhold-roll-over-fmps-with-exposure-to-zee-group-1554904025102.html) in [Kotak AMC's FMP funds](https://www.moneycontrol.com/news/business/mutual-funds/fmp-crisis-kotak-mutual-fund-writes-to-investors-to-assuage-fears-3813651.html)(2018) & [Franklin debt funds](https://www.businesstoday.in/current/corporate/franklin-templeton-faces-default-on-essel-infra-bonds-debt-schemes-ncds/story/404748.html)(2020). Note that [even PSUs bonds have credit risk](https://www.business-standard.com/article/economy-policy/centre-defaults-on-psu-bond-obligation-105021801045_1.html). Even if the PSUs are owned & operated by the government, [PSUs don't have a Sovereign credit rating](https://www.livemint.com/news/india/icra-downgrades-bmtc-to-default-after-delays-in-debt-servicing-1568701450022.html). When there's a default, the bond's market price plummets and effectively becomes zero. So, investors' capital will be lost because the money invested in those bonds can never be recovered. Even if there's no default, investors can face a mild loss when a [bond's rating is downgraded](https://freefincal.com/these-71-mutual-funds-were-hit-by-bond-rating-downgrades-in-sep-2019/). The credit rating downgrade causes the bond's price to fall, which causes the debt fund NAVs to fall. **How to mitigate credit risk :** Avoid funds with low AUM. If the fund has a huge AUM (several thousands of crores), it will have a massive & well-diversified portfolio. Even if there's a bond default, the investor will be affected to a lesser extent. Also, avoid funds that exclusively invest in low-quality bonds. Always look at the fund's portfolio and scheme mandate before investing. If a fund gives better returns than all of its peers, that fund will most likely invest in risky bonds. If you want to avoid credit risk altogether, invest only in gilt funds. But, gilts have their own risks ! ###Interest rate risk If investors choose gilt funds to avoid credit risk, they'll have to deal with this risk. Interest rate risk arises because of the change in interest rates in the bond market, which will adversely affect the prices of long-term bonds. Let's say the government issues a 10-year bond with 5% coupon/interest rate. Debt mutual funds will buy these bonds and hold it in their portfolio. Next year, the govt issues 10-year bonds with 6% interest rate. Now, the newer bonds (with 6% interest) will be preferred by everyone because they offer higher returns. The price of the older bonds (with 5% interest) will fall (because they're less valuable now), which will cause [the debt fund NAV to gradually fall.](http://www.onemint.com/2013/articles/steep-fall-in-debt-fund-navs-reasons-behind-tuesdays-bloodbath/) Note that this fall is often temporarily and it won't result in a significant loss of capital. Eventually, the NAV will recover, but the recovery depends on the debt fund's modified duration. Interest rate risks affect long-term bonds the most. The longer the average maturity of the debt fund, the more sensitive it is to interest rate changes. So, Gilt funds & Constant Maturity Gilt finds have the most risk. Conversely, if the newly issued bonds have lower interest rates, the older bonds will be more valuable and so the debt fund's NAV will rise rapidly. To witness interest rate risk in action, observe the historical NAV of an Ultra-Short-Term debt fund (or Liquid fund) and compare it with the historical NAV of a Gilt fund. While the former will have a smoothly increasing NAV, the latter will have a more volatile and irregular NAV. As a result, it's possible for Gilt funds to give negative returns for [a particular time period (like 2009)](https://www.livemint.com/Leisure/YnXC0dzqyou3epfTzU9rMO/Are-gilt-funds-losing-their-shine.html). Whenever there's a sudden change in the interest rates, bond prices are affected which causes debt fund NAVs to [plummet](https://www.livemint.com/Money/JDYw9dZKhcktqoJTYedSDO/Debt-funds-plunge-as-RBI-squeezes-market.html) or [soar](https://www.business-standard.com/article/pf/gilt-fund-returns-soar-as-yields-soften-115012101102_1.html). **Even liquid funds are not safe from interest rate risk.** When RBI suddenly increased the interest rate in 2013, [liquid funds 'fell'](https://www.capitalmind.in/2013/07/liquid-funds-navs-fall-for-the-first-time-in-5-years/). Although they'll recover in a few weeks, investors will be at a loss if they redeem the money before the NAV recovers. **How to mitigate interest rate risk :** Invest in debt funds with lower Modified Duration (like UST funds, Short Term funds). Those funds will have lower NAV fluctuation because of interest rate changes. To completely avoid interest rate risk, invest in Overnight funds. ###Liquidity Risk Liquidity is the ability to easily buy/sell an asset at a fair price in the market. Liquidity risk arises in debt funds when the bonds of the fund can't be sold. Or, they'd have to be sold at a lower price. If there's a mismatch in the demand & supply (more supply & less demand), the bonds have to be sold at a discount because there are less buyers. Bonds with low credit ratings can't be sold easily, if at all. No investor would be willing to buy the bond at market price, so selling such a bond would result in a loss. Government bonds have the highest liquidity in the bond market because they're risk-free. [Liquidity risk is the reason for the closure of Franklin debt funds](https://blog.investyadnya.in/franklin-mutual-fund-closed-6-debt-funds/). The funds had significant exposure to low-rated bonds. When the pandemic started, a lot of investors started to redeem. So, the fund manager has to sell the bonds to give back the money to investors. But, those bonds aren't meant to be sold because they're low-rated bonds. No one will buy it at a fair price. If the fund managers sells the bonds at a lower price, the NAV will fall and other investors will be affected. In an effort to prevent such liquidity problems, [debt funds are mandated (from Feb 2021) to hold atleast 10% of their portfolio in liquid assets like cash, cash equivalent, money market instruments, treasury bills and short-term government securities](https://timesofindia.indiatimes.com/business/india-business/debt-mfs-must-invest-10-in-liquid-assets-says-sebi/articleshow/79091311.cms). Even if the mandate is enforced, the funds can face liquidity problems if there are mass redemptions. ###Reinvestment Risk When compared to the other three risks, reinvestment risk is moderate. There is no loss of capital, but there'll be a reduction in returns. Reinvestment risk refers to the risk an investor faces when the capital is reinvested in lower-yielding bonds, which results in overall lower returns for the investor. Reinvestment risk can be observed in PPF. As the [PPF interest rates gradually start to fall](https://i0.wp.com/stableinvestor.com/wp-content/uploads/2016/08/PPF-Rate-History-2020-2021.png), the investor's returns would also fall because the interest rate of a particular year determines the investor's return. If someone opened a PPF account in 1995, they'd have witnessed interest rates go from 12% to 8% in 2010. The risk is also easily observed in Liquid fund returns throughout the years. Considering [HDFC Liquid Fund](https://www.valueresearchonline.com/funds/16167/hdfc-liquid-fund-direct-plan#fund-performance) as an example, the returns for the fund went from 9% in 2014 to 7% in 2016 to 6% in 2017 to 4% in 2020. The gradual decline in returns is a result of the gradual decline in the yield of Treasury Bills. Anyone who invested in liquid funds by thinking of it as an 'alternate to Fixed Deposit' would have been disappointed. ## Which debt fund(s) should an investor choose ? The availability of so many types of debt funds can make it tough for investors to choose the proper fund. While choosing a fund, there's one important point to keep in mind : "**Never choose a debt fund only based on returns. Always choose a debt fund based on the investment horizon**". [Being hungry for high returns & investing in random funds](https://www.reddit.com/r/IndiaInvestments/comments/bwyxno/debt_fund_30_down/eq2dyqx/) (without understanding the risks) is the worst thing a debt fund investor can do. Debt funds are not a 'simple alternative to Fixed deposit' because the risk profile of Debt Funds and Fixed Deposit are completely different. Debt funds ought to be used for adding stability to our overall investment portfolio, not to get 'high returns at low risk'. [Investing](https://economictimes.indiatimes.com/mf/analysis/mutual-fund-investors-dump-equities-and-buy-gilts-in-january-2013/articleshow/18444130.cms) & [redeeming](https://economictimes.indiatimes.com/mf/mf-news/gilt-funds-see-outflows-of-rs-498-crore-in-may/articleshow/20556527.cms) in funds randomly, in the quest for high returns, is also futile. **Choosing a fund based on investment time horizon :** Decide on how many years you're going to invest the money. Divide the time horizon (in years) by 3 or 5, and you'll get a number. Select debt funds whose Average Maturity is (approximately) equal to that number. That's the simplest to do it. If you don't know the investment horizon, stick to Overnight funds or Liquid funds (Arbitrage funds *can* be considered for short durations, because they have better taxation. Be aware of the risks, though). When parking money for a handful of months, don't expect great returns. [Keeping the money safe is more important than maximising returns.](https://www.reddit.com/r/IndiaInvestments/comments/fyyrzl/which_debt_fund_to_choose/fn2ku7t/) To park money indefinitely (as a part of the Emergency Fund), choose [quality Liquid funds](https://www.paytmmoney.com/mutual-funds/insta-redemption-funds). Liquidity is the most important aspect for an emergency fund. [Keeping emergency fund in random debt funds](https://www.valueresearchonline.com/stories/48353/where-can-i-park-my-emergency-fund/) can be problematic if we don't have immediate access to our money. Other things to consider while choosing debt funds : 1. Check out the fund's scheme document before investing. Ensure that the fund doesn't have the leeway to invest in risky bonds. 2. Funds with larger AUMs (thousand crores or more) are preferable. Large AUM allows the fund to diversify better. Generally, it's better to invest in debt funds of big AMCs like HDFC, ICICI, SBI, Axis, ABSL. 3. Avoid funds that invest in risky bonds. **Debt funds are not the place to take high risks.** Even when equity mutual funds crash, it usually happens over a series of days/weeks. [Debt mutual funds can crash overnight](https://www.moneylife.in/article/dhfl-crisis-debt-scheme-loses-50-percentage-in-a-single-day/57355.html). 4. Check the fund's portfolio every month/fortnight. [AMCs are mandated to disclosure the portfolio to investors on a fortnightly basis](https://economictimes.indiatimes.com/mf/analysis/fortnight-portfolio-disclosure-by-debt-mfs-to-bring-transparency-experts/articleshow/77139654.cms). The portfolio will be provided in an Excel file, which will be easy to review. 5. Don't select debt funds (or any mutual funds) simply based on Star ratings or recommendations from investment portals. Do enough research by yourself. Check out [this older ELI5 article about selecting debt funds](https://www.reddit.com/r/IndiaInvestments/comments/50izzv/how_to_select_debt_funds_eli5_series/) & [Debt Mutual Fund Categories Explained](https://freefincal.com/debt-mutual-fund-categories-explained/) for more info.

IndiaInvestments

I have not read the post thoroughly. On a skim, it looks great. Thanks for putting this together. Please see if you can also refer to this article series in freefincal on debt mutual funds - [https://freefincal.com/debt-mutual-fund-categories-explained/](https://freefincal.com/debt-mutual-fund-categories-explained/)

orewi5

Wealthy people are so damn out of touch!

They say if you ask a poor person for money advice is poor and with rich it's rich. So I have been asking advice of people who have become financially independent, at least money isn't a stressing factor in their lives. Oh my god. "Save 20% of income and invest it." I explain money is tight and hardly any left to buy a single stock. "Oh then ask for a raise or job hop." OK, my review is 6 months away, and in the Mean time what else? "A side Hustle! Whatever you make there invest it!" Tried and got burned out, actually made me work less from exhaustion. So I asked "what did YOU do?" And the story is what you expext; my parents paid for college, I got into tech, my dad knew someone in the company, etc. They are giving me advice they didn't follow through with. They could have just said "I don't have any experience with that, I grew up in privilege."

povertyfinance

It reminds me of when McDonalds came out with budgeting advice to help employees. The budget included a 2nd job that magically works around a fluctuating food service schedule….. ….and no budget line for food

l71fl1

Like this post if you are holding!!💎 The real squeeze is yet to happen🚀

Buy more during dips if you can, but at least hold. We just have to hold until they fold. Today's actions by several brokers just show how desperate the hedge funds are getting. Hold with your immovable diamond hands for all that you hold dear and we will be breaking Wall Street **TOGETHER** while making gargantuan tendies in the end! **WE LIKE THE STOCK.** Comment with brokers that aren't corruptible and that we can move to fast! **YOU CAN STILL BUY ON** **Fidelity** (10k instant deposit, accounts can be opened quickly) **Others:** Vanguard, Revolut, TastyWorks, Charles Schwab, TD Ameritrade, Webull, Degiro, Wells Fargo, M1, Public, etc. *Edit*: It seems like TD Ameritrade, Webull, M1 Finance, and Public have removed their restrictions. Brokers are folding to the political support we are receiving. [**http://isthesqueezesquoze.com/**](http://isthesqueezesquoze.com/)

wallstreetbets

HOLDING?!!! Bitch I doubled down at the dip. 64 shares at 186.87. This has only begun now For those who have lower stakes and want to know people are legit holding. Evidence = [https://imgur.com/gallery/nZw9e6s](https://imgur.com/gallery/nZw9e6s) I also have 4.65 shares on Robinhood too. Fucking cunts.

omf9q5

This sub has no integrity if red and madie remain as mods. Upvote if you agree. Downvote is you disagree. Let the people speak

Tried to make a poll but it didn't allow me. Let's try it this way. Feel free to add you opinions on the matter in the comments. My personal opinion - Get the fuck out of here with your highschool drama. You had your chance. You broke the rules. Plenty of other very capable individuals ready to step up. Update: 30.0k upvotes and on the front page. Do the right thing guys. There are millions of dollars worth of GME stock held by members of this sub. Your responsibility and loyalty is to them, and not to your fellow mods. u/broccaaa u/luridess u/jsmar18 u/atobitt

Superstonk

I have ZERO idea who the fuck this Madie person is or why she feels so important to this subreddit when in reality any of us can do her job. Her and her drama are completely irrelevant to the movement. Get her and any other drama queen the fuck off of this platform.

omf9q5

This sub has no integrity if red and madie remain as mods. Upvote if you agree. Downvote is you disagree. Let the people speak

Tried to make a poll but it didn't allow me. Let's try it this way. Feel free to add you opinions on the matter in the comments. My personal opinion - Get the fuck out of here with your highschool drama. You had your chance. You broke the rules. Plenty of other very capable individuals ready to step up. Update: 30.0k upvotes and on the front page. Do the right thing guys. There are millions of dollars worth of GME stock held by members of this sub. Your responsibility and loyalty is to them, and not to your fellow mods. u/broccaaa u/luridess u/jsmar18 u/atobitt

Superstonk

The problem is Red and Madie and to a lesser degree Rensole are now distractions. And they will be as long as they are on the mod team. "Hey man, you should go buy some GME - check out Superstonk for some of the DD there!" "Oh is that the place led by the Runic Power Anonymous witch who hexes people's dreams and her Blackwater thirst trap? No thanks."

uup6ox

How is it that people at /r/sweatystartup are earning an US middle class income, while people doing the same work in Bangladesh are earning below the international poverty line?

Non-native English speaker here. I live in Bangladesh. I see on subs like /r/sweatystartup, where people earn an US middle class salary doing work such as pressure washing, deck staining, lawn care, tree removal and such. They seem to make very good money by US standards. People there say that they are earning more than someone with a Bachelor's or Masters degree. Yet, here in Bangladesh, people who do these types of work or businesses are at the absolute bottom of the income ladder. They earn USD 1.50 per day or less. They are below the international absolute poverty line. I also don't see how productivity has anything to do with it. Its not a high tech occupation, where someone using more high technology would be more productive. Here the job and productivity is nearly the same. The same goes for the quality of the output. Can someone explain this phenomenon?

AskEconomics

1) *Other* industries are more productive. Therefore you have to pay these individuals more to guarantee their labor supply, or else they will exit for jobs in industries which have become more productive across time. (i.e., in the long run, opportunity cost is a constraint on labor supply) This is [Baumol's cost disease](https://en.wikipedia.org/wiki/Baumol%27s_cost_disease). 2) In the same way, if you're in a more productive industry, your time is valuable, and so your willingness to pay to outsource household labor is also higher, and so prices for those services will rise. (That is, productivity increases in some sectors may shift around labor *demand* in others) Rising general productivity in the US relative to Bangladesh is going to cause wages of all individuals to rise.

a4bezk

KittieFIGHT synopsis - As a reminder ; kittieFIGHT is an Ethereum-Cryptokitties Real-Time Blockbuster Dapp Game. It is a crowd-driven, real-time fighting Dapp game.

KittieFight Tokens and ETH are awarded to winners of each fight session that utilizes customized fighting kittie characters derived from the Cryptokitties platform. https://i.redd.it/s0rn6owuk2321.jpg kittieFIGHT is gamified with a unique economic token model utilizing limited supply with suppressed emissions and incentivized crowd dynamics to drive up each value of token necessary to reward owners of Cryptokitties non-fungible tokens. The kittieFIGHT Dapp also solves the problem of oversupply of Cryptokitties via euthanasia/kittie-sink called ***kittieHELL***. The sink effect from fights also serves to create demand for new kitties on the Cryptokitties platform. Winners of fights on the kittieFIGHT platform can trade winning tokens to buy more Cryptokitties collectibles. [https://www.kittiefight.io](https://www.kittiefight.io/#/)

crypto_currency

This means your Call Recharge voucher or piece of Art work is Non-Fungible because it can not be exchanged for goods or service. Fiat/Cash(naira) or Bitcoin alongside other cryptocurrencies are Fungible but there are some that are classified as Non-Fungible.

ts90zb

Could this hypothetically work

If I take out a loan for 50,000 at the local bank and the agreed upon interest is 3.59% APR for 6 years. At the end I would need to repay 61,784. But with the 50,000 if I make 12 percent apr, resulting in 98,000. Excluding to collateral and taxes, wouldn’t I have netted a 17,000 profit. And I know people will say I need to a find a 12% interest bringer machine but let’s say I can. What are the pitfalls to this idea?

Money

Yes in your hypothetical "perfect scenerio" this would be great. Also, everyone would do it. What you're describing is "math". In the real world, you wouldn't borrow money to invest because the real world loves nothing more than to fuck you.

ggqsz3

Why do we have unemployment, rather than paying people to work?

This may seem like a dumb question, but why do we pay unemployment benefits to people for nothing, rather than paying people to work on infrastructure projects for the same price? This seems obvious to me but I’m not sure if there’s some hidden downside to that or if it’s just a political problem. Edit: lots of people saying that not everyone can do construction, which is fair. But I imagine there are lots of non-construction jobs that could be beneficial to do as well, like street cleaning or something. Edit 2: obviously high unemployment caused by coronavirus caused this question, but I’m asking in a general sense

AskEconomics

I think unemployment insurance (UI) benefits are commonly misunderstood. 1. Unemployed people are not doing "nothing"; they're looking for work. Benefits expire after a said period of time. UI benefits are meant to smooth consumption while you're looking for a job. 2. There's evidence that UI improves the quality of your search. People with benefits find jobs that they are better-qualified for, have higher wages, and/or longer tenure. This is good for the labor market because it means the right people are being matched with the right job, and increases what we call "match quality". 3. Human capital (like skills) are occupation specific i.e. people are good at what they do. There's a lot of research demonstrating that exogenous (as in random) occupation switches lead to long term loss in wage prospects and job quality. Forcing unemployed people to switch occupations/ learn something unrelated to their field when they could be spending their time and resources into finding a good job would lead to overall loss in productivity. 4. You only qualify for UI if you've been laid off due to no fault of your own. It could be the business was shutdown, there was a natural disaster, etc. It is unwarranted to ask these people to take up additional costs (which could be many and varied) to switch trades, even temporarily. Hope that helps!

ymq8g3

Why do families not share details of financial assets and policies with family??

My neighbour's husband recently passed away unexpectedly. I witnessed how his demise opened the floodgates of troubles in their life, particularly for his wife. It broke my heart. His wife has been a traditional homemaker. Aunty has always been a joyful and giving woman but her entire life came to a standstill after his death. Their daughter was supposed to start college this year, but this misfortunate circumstance has changed their life. Both of them were completely clueless about their household finances and financial liabilities. **It hit me hard when I realised that there is no way under any law to find out information regarding a deceased person's assets, policies, properties, investments and funds even by their successors unless they are already equipped with this information. It's a scavenger hunt after that.** She asked me for help since I work in consulting. I was disheartened when I came to know she has never visited a bank and had no clue about any of his current or savings accounts, policies, or investments. He never shared any relevant details with her. She confided that he was a loving and dutiful husband. Their marriage was traditional where her responsibility was to manage the family and he was to manage the finance and outside responsibilities. While he sometimes discussed but never shared any exact details. Now she feels completely handicapped. Between handling crematory responsibilities, and dealing with guests to day-to-day expenses she exhausted all the funds she had with her. She had no clue about any documentation and paperwork. Witnessing their struggle to access their own claims and funds, facing financial responsibilities while dealing with the loss & trauma has been exhausting, even for me. **I too had never shared the actual details about my bank accounts & investments with my parents.** In our family, while we discuss finances very openly, my father still hasn't shared all details. It is crucial to discuss and share household and personal finances with family, in detail. It is alarmingly essential to be open and inclusive about your finances with your loved ones. **Most women in India who are between their 40-60's were married to men older than them. They were not allowed opportunities or the privileges to be financially independent. They were conditioned to not involve themselves in matters of business and finance. Women also tend to live longer than men. These women will be faced with similar circumstances in the last years of their lives unless they are actively equipped.** Further, in India, parents also seldom share their true financial circumstances and decisions with their children and vice-versa. I realised that in a society where survival means protecting self-interests from very early on, the head of the family or anyone in any position of power is so deeply engaged in managing responsibilities & safeguarding their interests that they rarely trust others with it. Sudden death in the family can lead to a complete breakdown of stability for the family. It is truly sad that in a lifetime, we aren't being able to say the most important things to the people that matter the most. I wonder how truly big this problem is. **Do you/your parents have open conversations about your finances with your family? If not, why?** **Have you discussed the details of funds, assets, and policies in detail with your family? How do you do it? In an excel sheet?**

IndiaInvestments

This is real. I hardly know anything about my fathers finances. He doesnt include my mom or me or discuss any decisions. I am a financial analyst and yet have no clue. Its just feels awkward, not sure why ... I tried talking to him sometimes but got vague answers.

lowvnw

I've been successfully trading since the late 90s. All I have is a single cheap 27" HP monitor. What gains did I miss out on by not having 6 monitors?

I was also a professional derivatives trader. Even at work, all we needed were two monitors. A lot of us old guys (mid 40s) are still very actively trading and for the life of us, we dont understand why folks need that many monitors. What are we missing out on? I'm not being snarky or sarcastic. Why do you need that much information for a job you do for an hour after open and an hour before close? Most lifers only work the opening gaps and make a very comfortable living. Even if you're scanning setups to scalp throughout the day, how many setups are you scanning that requires that many screens? Again, not being sarcastic. Just sincerely curious.

Daytrading

I'm trying to convince my husband to allow me to get one of those fancy desktop setups with 4, 5 maybe 6 monitors!! He looks at me as if I'm crazy and just asks how many of the monitors will I be using for porn 🤣 Only 2 I tell him hmmm😉

tafd0h

I did some math for buying a house with cash vs buying it with loan.

Lets say I have 25L in cash with me and I want to buy a house. There are 2 scenarios, I can buy it all cash or I can finance it at 6.5% interest. 1. I buy it with Cash. I have a house from day 1. 2. I make 20% down payment and take 20L home loan at 6.5% for 20 years, which makes EMI of 15k per month. Now I take the 20L cash and put it in Nifty Index and withdraw 15k per month from it. I have calculated the returns for it. If Nifty performs bad for 20 years then lets say it gives 8% CAGR, and I withdraw 15k per month from it for EMI. I will be left with 7L in my portfolio after 20 years of paying the EMI. If the market performs as per past and gives 13% CAGR and I withdraw 15k per month. I will be left with 78L in my portfolio after paying all the EMI. Overall I think this should be the way if I have cash and wants to buy the house. But it seems to good to be true. Am I missing something? Or this is a correction calculation? Please share your thoughts.

IndiaInvestments

The calculations are a start, but you have made some implicit assumptions which may not be true. 1. 6.5% housing loan you would get is most certainly a floating rate loan, so will not stay constant for next 20 years, given that the current interest rates are kept low due to Covid, the rate will inevitably go up in the future, might also cross the 8% pessimistinc estimate of Nifty return that you have. 2. While Nifty may have 8~13% return rate when averaged over next 20 years, the individual years may have wildly varying returns... A series of negative return years, say -20%, -10%, -30% followed by some very good years might wreck your financial plan. You still will have to withdraw 15k per month to pay off your EMI. Sequence of returns is very important, more important than averaged returns over x years... Combine both scenarios and you are looking at more trouble. If you look at investing part of the portfolio in some debt instrument for "safety" then the averaged out return may not be enough to justify the time and effort involved.

mikrfv

Why would poor people argue against minimum wage?

I had a very interesting conversation with three gaming buddies that all make under 12.50 an hour. Two are at 10. They were all against a minimum wage hike, living in Mississippi, Texas and unknown. "Price of bread will go up." I showed them a Seattle study that had not increase if food prices. "People are lazy and with more money they will will not change jobs or educate themselves." I didn't have much of answer for this other than what people do with their time is their own business. "Small business will close. Businesses that are struggling to pay 3 employees wont be able to." This is a mixed bag it seems. Some business are negatively effected but others are positively effected with new spending. But what interested me the most is why would they not want to have more money. The one thing that is actually in their control they seemed to be less interested in than their vision of possible negative changes. They even brought up some of the true stories of people who were making more money on unemployment that did not want to return to work, suggesting that people would want to cut their hours with a higher wage. This might be true for some folks who have reached a financial equilibrium and would rather do other things with their time. Any thoughts or studies?

AskEconomics

Two mistakes you are making: * First, some studies do find slightly lower employment but higher net income (as low-income employees have a higher job rotation). That means, on a micro scale, you may still be negatively affected. If you are happy at your job, and your employer says (s)he would fire you if the minimum wage is increased, this may lead you to be opposed to a hike - even if this is not true. Income isn't everything. * Second, not every policy opinion is based on self-interest, which should be obvious. Your point would be equivalent to ''Why are some billionaires in favour of a wealth tax, or higher income taxes?''. I am not poor (nor rich), nor am I against a minimum wage hike. But you could be of the opinion that, if a worker thinks his/her wage is unfairly low,he/she should quit and find a better paying job. If he/she is unable to find a better paying job, he/she is responsible to improve themselves. Introducing a law would then simply be cheating. I am not saying that this isn't mixed with misconceptions and misinformation. But even if you *do* know all the facts, you could still oppose a minimum wage hike. That you don't agree doesn't mean that their reasoning is not sound. Their reasons also do not have to be founded in economic theory. You can be morally in favour of an economically inefficient or counterproductive measure. Edit: To be clear if I was supposed to take the anti-minwage stance and you would counter my lack of incentives argument with ''I didn't have much of answer for this other than what people do with their time is their own business'', I would find that a really poor counter.

n3ak7m

35 - yet to start investing - need suggestions :(

We are a family of two right now ( in fact 3 including our pet dog ) . I am 35 and my wife is almost 30 years old and we are a couple working a same firm. We both currently just have two major investments in place 1.) Our home for which we have put majority of our savings ( 25 lakhs ++ in terms of DP and we are running a home loan of appx 59 lakhs ) . This is a home for self occupancy and not rental. The appreciation is just on paper but we do enjoy being in a good locality, close to office and our parents place. 2.) We invest a fixed sum of our salary (comes to appx 8 to 9k ) in our company shares ( XYZ) on which we get a 3:1 bonus every 3 years . However this investment is done in European market and till date the numbers are looking good. Our combined salary is appx 1,50,000 out of which we pay EMI's to a total of appx 50% of our income. We do not have any significant liquid savings right now & there are tons of reasons for it - our lifestyle in past, our expenditures for home's etc. I am looking forward to change this and start working our investment part. I know its late & I am looking forward for a few suggestions on below points, 1.) How can I go about planning my investments for future - there are SIPs but I am honestly too confused to even understand how it works :( I have read lots of online literature but I am unable to decide which one to choose. 2.) Is it worth hiring a financial planner to do this job for me to analyse my currents situation and chalk out a decent plan - is it recommended ? The ones I talked to are asking fees upwards of 20k which I am not sure is worth spending .. 3.)Since I am already late to the game, is there any way I can make this situation better right now ? Suggestions and criticism welcome :)

IndiaInvestments

1 - Buy SIP as direct mutual funds. Avoid regular mutual funds. Open a demat account as well. SIP can be done in shares as well. Make sure you have 1/5th to 1/4th of your investment in GOLD ( ETF/Mutual Fund/ Bond ) 2 - No need to hire a planner 3 - Who told you are late? You aren't. You are leading a happy life, that's more worth than 1cr portfolio

yaxkjj

What do economists know now that they didn't 50 years ago?

i.e. What have economists discovered in the last 50 years? A lot has happened since the 1970s, like the two oil shocks, US stagflation, fall of the Soviet Union, 1997 Asian financial crisis, and the 2008 financial crisis. Has economics undergone any fundamental shifts over this period of time? Has there been any breakthroughs or major shifts of thought?

AskEconomics

Economics is *very* different than it was 50 years ago. Microeconomics, for instance, has undergone a drastic shift. Microeconomic theory in the 1970s was very much what you might call "classical" microeconomic theory- there was still a large focus on consumer and producer theory that underpins general equilibrium, and decision theory was still an active subfield. Since then, microeconomics evolved; many of the issues in decision theory were worked on and resolved (or at least resolved enough that economists figured further inquiry would be largely mathematical exercises of little real interest). Further, game theory rose to forefront of microeconomic theory and took over the field and has *almost* gotten to the point of exhausting it's traditional lines of inquiry (e.g. game theorists have moved away from a lot of traditional approaches to mechanism design to focus instead on more exotic approaches that yield "worse case" bounds or robust mechanisms; good examples of this would be the work of Bergemann or Brooks). Behavioral and Experimental economics (in many ways deeply related to microeconomic theory) became a field, and some of the results (such as Vernon Smith's stock market experiments with ASU undergrads) were deeply shocking to the field (among other things, this experiment exhibited evidence of bubbles arising even in relatively simple settings). Econometrics evolved as well. For one, in the most recent two or three decades, there's been an explosion of interest in causality on all levels. This means on a philosophical level, on an estimation level, on an implementation level, and in specific particularized applied problems. This has led to drastic advances in econometric methods, giving the applied researcher a very powerful toolbox as well as something of a guide to best practices in experimental implementation (thanks to the work of people like Duflo and Banerjee in doing so many experiments and learning the good practices the hard way). The combination of this interest in experiments, good guidelines, and strong tools for estimation has allowed us to answer questions we would have found impossible to answer before: what is the impact of UBI? Which aid programs to developing countries are most effective at increasing health outcomes? etc. Of course, as an econometrician, I find the theoretical advances that this has brought more interesting, but most people care less about that. Other things of note in econometrics are the rise and fall of a whole theoretical subfield, that of time series analysis (much like decision theory, there *was* a lot of productive work, but most of the questions have been exhausted). Whole nonparametric methods of estimation have come into style, gone out of style, and come back into style in the last 50 years- a good example would be neural networks, which actually saw pioneering work in the early 90s by an *econometrician* who would later go on to win the Nobel Prize for his many *other* contributions. Finally, macroeconomic theory is a very different beast than it was 50 years ago. Stagflation and the Lucas critique led to a drastic underlying shift in macroeconomic theory which pulled the field towards microfounded models beginning in the early 80s. While early microfounded models got a lot of well deserved flak, they eventually became an essential part of modern macroeconomic research, and in recent years, the most advanced of these models have become as good at forecasting as the traditional gold standard, VARs. Moving away from macroeconomic "methods" and more to macroeconomic "facts", many of the crises you mentioned have been taken in stride by macroeconomists in pursuit of understanding economic dynamics. There are certain macroeconomists who constantly emphasize the tightly related role that oil shocks seem to play in the business cycle (one prominent macroeconometrician in particular who emphasizes this that comes to mind is Jim Hamilton). The 2008 financial crisis spurred a whole host of literature on financial networks, systemic risk, and macroprudential policy; the low interest rate environment that results from the GFC spurred research into macroeconomic policy at the zero lower bound (when interest rates are nominally 0). The "lost decade" of Japan led to the now Nobel prize winning research of Ben Bernanke on interest rate targeting and forward guidance, research that would inform his actions during and after the GFC. All this is to say that economics is a very large and very active field, and if you were a newly minted PhD student in 1972, there's a huge chance that much of what you learned as being the leading edge of economics would be seen as being so outdated as to not even justify inclusion (or inclusion to a significant degree) in the standard first year PhD sequence.

t3rqfq

Citadel Still Has No Clothes

**EDIT:** u/MrGold93 **messaged me and pointed out an error with the 2015 calculation. I reported $1,236,536,000 worth of "securities sold, not yet purchased", but this is actually their "securities sold under agreements to repurchase" (AKA Repo liability). I calculated this as 15.7% of total liabilities, when it should have been $6,464,142,000- 82% of total liabilities. I read through the statement too quickly and reported the wrong line, so thank you to** u/MrGold93 **for the fact-check!** https://preview.redd.it/x78oq389kbl81.jpg?width=807&format=pjpg&auto=webp&s=c1be4249e15c04d84d106d2b6fe45b795b8b6e76 **TL:DR** **Citadel Securities pumps up their short position during 2021 and Citadel Advisors is even more fuller of hot air than in 2020. They also had a FINRA orgy with 14 different exchanges over erroneous pricing practices between 2014 and 2020.** \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ It's FINALLY HERE.. At long last, Citadel Securities has published their financials for 2021 and I've done me a dabble or two. If you haven't read [Citadel Has No Clothes](https://www.reddit.com/r/GME/comments/m4c0p4/citadel_has_no_clothes/), please do so before reading on. Before I go balls-deep into this b\*tch, let me start off by updating our total [brokercheck.finra.org](https://brokercheck.finra.org) report on Citadel Securities. At the time of writing my first piece back in March 2021, we were at 58 total violations. As of writing, Citadel Securities has achieved another **15 violations**, bringing Kenny's grand total to [73](https://files.brokercheck.finra.org/firm/firm_116797.pdf). \*light applause\* To be fair, 14 of these violations were for the same thing... they were just hit by 14 different exchanges at the same time... \*Insert black guys & blonde girl meme\* **NASDAQ MRX, LLC** **CBOE EDGX Exchange, INC** **CBOE BZX Exchange, INC** **CBOE BYX Exchange, INC** **CBOE EDGA Exchange, INC** **NAXDAQ ISE, LLC** **NASDAQ Options Market, LLC** **NASDAQ GEMX, LLC** **NASDAQ Stock Market** **NASDAQ PHLX, LLC** **NASDAQ BX, INC** **NYSE** **NYSE ARCA, INC** **NYSE National, INC** Their other violation from 3/2021 was covered in my post ['Walkin Like A Duck'](https://www.reddit.com/r/Superstonk/comments/ml48ov/walkin_like_a_duck_talkin_like_a_duck/).. Check it out. ...Anyway.. If my maff is correct, that means Kenny G did himself a heckin' naughty and racked up another **25.86% of his TOTAL violations in just one year**. \*little bigger applause\*. Now let's remember, although these violations were published in December 2021, they were an accumulation of issues from prior years. In fact, the earliest date I found was August 15th, 2014 and the most recent was in May or June 2020.. **So that's 1 issue, reported by 14 different exchanges, across 6 years, totaling... $225,000** \*little fart noise\* Before I make anyone think the sky is falling- this is NOT a monumental fine.. This is just what has been reported by FINRA during 2021. I'll explain why I find it interesting in a sec but I need to preface these things because I know someone out there will say *"tHaTs NoT tHaT bIg Of A dEaL, RoBiNhOoD hAd A bIgG...."*... I promise you, I know. At any rate, here's the violation: https://preview.redd.it/byby06na0nk81.jpg?width=1037&format=pjpg&auto=webp&s=175108e496e71c13c34049f0c4c34ecb4669ec40 Right off the bat, we have Citadel's signature violation **"IT FAILED TO ESTABLISH AND MAINTAIN REASONABLE RISK MANAGEMENT CONTROLS AND SUPERVISORY PROCEDURES"** ... BLAH BLAH BLAH. Long story short, here's why I think this matters: When an option order is placed, Citadel has a price control mechanism that would reject orders priced at a "certain percentage" away from the NBBO. This makes sense.. no big deal.. You shouldn't execute on trades that are too far outside of the best bid. However, if that order is cancelled and replaced, you should repeat this process... which clearly didn't happen. When an order is placed, it is often broken into several "child orders". This allows trade blocks to execute and complete the order at the best price for the customer. If too many of those child orders are outside of the NBBO, the blocks should stop executing until either the order is cancelled or the NBBO is back at the appropriate price.. If this system doesn't work appropriately, it will complete the order outside of the NBBO.. Hopefully you can see where this would be a major disadvantage to the customer. What's interesting here is the language ***"The firms erroneous order controls ... included a price control that would reject limit orders that were priced at a certain percentage away from the NBBO"..*** ..then.. ***"However, when an option order was cancelled and replaced, the price control was NOT applied to the replaced option orders."*** So... all 14 of these exchanges would receive limit option orders from Citadel before the market opened. If Citadel replaced the original order *after* the orders were sent to those exchanges, ALL of those orders would execute without appropriately reviewing the new parameters set by the replacement order.... **That's NUTS!** Even more alarming is the lack of documentation that their personnel were supposed to follow in these situations. I know things get hectic for traders and it's hard to keep track of everything. We're all human and sh\*t happens, but SURELY someone at Citadel noticed this occurring before the hammer had to come down, externally. Every past violation seems to highlight Citadel's lack of "give a f\*ck" when it comes to these things. It just leaves a sour taste in the mouth.. I'm sure everyone knows about the DOJ investigations going on right now. These issues can have a direct impact on their ability to manipulate prices. Intentional or not, if you're aware of these issues and fail to fix them, you're guilty. **PERIOD.** \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ **MEAT N' POTATOES, TIME** Recall from [Citadel Has No Clothes](https://www.reddit.com/r/GME/comments/m4c0p4/citadel_has_no_clothes/) that **Citadel ADVISORS** had roughly $385,000,000,000 (that's billion) in assets under management in 2020... That consisted of roughly **76.7% derivatives and less than 25% of actual, physical assets....** I was shocked to learn that initially, but after following their filings through 2021, I realized it was basically their bread n' butter. According to the most recent report on [https://whalewisdom.com/](https://Whalewisdom.com), their AUM as of 12/31/2021 had increased by over $100,000,000,000 (again, billion). But that "increase" doesn't really represent true value... In fact, **it's the highest-risk profile** I've ever seen. Here's the market value of their equities & derivatives on 12/31/2020: https://preview.redd.it/z0lfg8jr9nk81.jpg?width=1001&format=pjpg&auto=webp&s=d9f25be61927ea3ac081d45d604df0b052d27c98 *AAAAAANNNNNNNNNNNNNDDDDDDDD* here's the AUM for year-end 2021.... https://preview.redd.it/fs2dkn55ank81.jpg?width=996&format=pjpg&auto=webp&s=023327ebb2c63479f99dde8e17c0d88f3c7e4be5 Market value of physical equities is up 7.88%.... and their derivative values are up almost **37%?!?!** 37%?!?!?!!?!! IN ONE YEAR?!?!?! **THEIR ENTIRE PORTFOLIO IS NOW 82.59% DERIVATIVES...** I've waited an entire year for someone to show me one other firm that has this type of portfolio.... or WHY it would be a smart idea.. If you're not sure what this means, I'm saying more than 80% of their portfolio is a STRAIGHT- UP gamble. Over 9% of their portfolio is a bet on Tesla... (they're bullish FYI). Hell, almost 7% of their portfolio are SPY PUTS. \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ THIS NOW MAKES TWO YEARS IN A ROW THAT I'M AWARE OF.. NOT ONE, BUT TWO.... WANNA KNOW SOMETHING ELSE THAT'S INTERESTING ABOUT THE NUMBER TWO? IT'S ALMOST THE SAME NUMBER OF PHYSICAL SHARES THAT CITADEL ***ACTUALLY*** OWNS.. Moving on.. Citadel Securities upped their short position to $65 billion this year. It's the highest since...... 2020.... which was the highest since...... 2019... which was the highest since.... here, just take a look at this: https://preview.redd.it/223tiwo8lbl81.jpg?width=538&format=pjpg&auto=webp&s=f5d39cf70966dabd249d823a72d1dea4f4e756d9 Basically, Citadel Securities' holds over 87% of their liabilities as short obligations. This is split between options and equities, which is nothing new for them... Interestingly, they haven't had this level of short liability since right before the financial crisis of 2008... If I were to make a guess, I'd say they are betting against..... well.... everything? I wish I had their [whalewisdom.com](https://whalewisdom.com) reports so I could compare how Citadel Securities scales with their hedge fund's prior filings. Would be interesting to see if the shorts are outgrowing their physical assets... well that's not a fair statement because anything can grow quicker than their physical asset portfolio. But you know what DOESN'T have problems growing? Their **#SHORTS** ​ **DIAMOND.F\*CKING.HANDS** \#GMEtotheMOON \#HODL

Superstonk

Am I the only one who thinks that a Hedge Fund should also not be a MM? I understand the Cit Sec and Citadel are “two” different entities but that’s just breeding grounds for corruption and manipulation. If I’m wrong, I stand corrected.

l71fl1

Like this post if you are holding!!💎 The real squeeze is yet to happen🚀

Buy more during dips if you can, but at least hold. We just have to hold until they fold. Today's actions by several brokers just show how desperate the hedge funds are getting. Hold with your immovable diamond hands for all that you hold dear and we will be breaking Wall Street **TOGETHER** while making gargantuan tendies in the end! **WE LIKE THE STOCK.** Comment with brokers that aren't corruptible and that we can move to fast! **YOU CAN STILL BUY ON** **Fidelity** (10k instant deposit, accounts can be opened quickly) **Others:** Vanguard, Revolut, TastyWorks, Charles Schwab, TD Ameritrade, Webull, Degiro, Wells Fargo, M1, Public, etc. *Edit*: It seems like TD Ameritrade, Webull, M1 Finance, and Public have removed their restrictions. Brokers are folding to the political support we are receiving. [**http://isthesqueezesquoze.com/**](http://isthesqueezesquoze.com/)

wallstreetbets

I went from $45000 to 1 FUCKING MILLION USD over the past month This morning was the point where I hit one million Never in my fucking life would I have dreamed of one million dollars at my disposal. I have 1910 shares @ 39$ and I haven't sold even a fucking fraction of one. Fuck wallstreet, fuck the elite

x1lmh7

Why isn’t economics taught with calculus as a prerequisite?

I’m in a microeconomic class right now and I feel like all of this would be so much easier/intuitive/effective if we used calculus. Elasticity, marginal benefit, everything. There’s no way this can be used in the real world without calculus right? Why isn’t the class taught with calculus in mind.

AskEconomics

It depends on the country and the university. In the US, Intro Micro is usually taught without calculus, but Intermediate usually is with calculus (but certainly not always). In some engineering focused universities in the US (e.g. MIT) and most European ones (from what I have heard), they use calculus in intro micro. I am in the US, and in my intro classes that don't require calculus I briefly go through the idea of taking the derivative of a total revenue function to get marginal revenue, so they can see where the "twice the slope is demand is linear" rule comes from. Probably 80% of my students have seen calculus before they take it. As to "Why no calc?", there are too many college degrees in the US that don't require any calculus classes at all, and many of those majors also require some kind of introductory economics course (e.g. some management degrees, political science, construction management).

fhpejn

The Fed just pumped $1.5 trillion into the financial system. Where did the money come from? Where does it go?

I'm not terribly versed on this stuff, I'm aware my question might be naïve. $1.5 trillion dollars seems an absolutely astronomical sum - I've seen it pointed out that it's as much as the total amount of student loan debt in the US. My question is - if this money doesn't represent taxes paid or goods exchanged or whatever, what does it even represent? Where does it come from? Who gets to "keep" this money and spend it going forward? Is the fed just essentially devaluing everyone's existing dollars in order to keep the bond market going? Tangential question to help me understand this: Would it be possible for the Fed to inject $1.5T into, say, infrastructure?

AskEconomics

The 1.5T is essentially short term loans to big banks to stabilize their balance sheets, so that nobody worries about their ability to pay or worries the banks will be unstable. These types of short term loans will be repaid in the very short term, it seems like between a few days to a few months.

mn0ykx

Kelly's criterion for gamblers

I go to a casino and walk over to the first table I see. The sign above the table says, "Kelly's Game". The dealer says, "Place a bet and The House will flip a coin. If you win the flip, The House will pay you 150% your money back. If you lose the bet, The House will keep 40% and return the remaining 60% to you." "That sounds great," I say. *Positive expected value. If I bet a lot, I should expect to get 105% of my money back on average. That's a good bet.* "What's the catch?" "Ah, yes. There *is* one more rule," says the dealer. "You must bet all of the money you have each bet or not at all." ### How many times should I bet? My intuition tells me that the more times I bet, the better I should do. The law of large numbers should mean that over time, my overall winnings per bet converge on my expected value of 105%. In the long run, I feel like this is a rational bet. So, my strategy will be to make the bet 800 times and see where I am at.  Since I'm betting all my money on each bet, I can only actually test my strategy once. Let's think of that as a single universe, my universe, where we see a single unique chain of events. But, before I actually go to the casino and bet it all, I want to guess what my universe will likely actually look like. To do that, we will simulate a multitude of universes, each completely independent of the others.  Here's 1,000 simulations of my strategy where each colored line is my total bank, each simulating a single possible universe where I execute the strategy faithfully: [1000 simulations of 800 sequential bets of 100% of the bank with 50% to go 1.5x or 0.6x](https://preview.redd.it/wq79mdbxf0s61.png?width=820&format=png&auto=webp&s=f229d1e4ee4463721ff82f13a0338ef0a576b8b8) Notice the log Y scale. The dashed grey line with slope of 0 is breaking even. Negative slopes are losing money, and positive slopes are winning against The House. The dotted black line is what I expected to gain, 105% per bet for 800 bets, netting me an expected 80,000,000,000,000 more than I started with. If I take the average of an infinite number of universes, my mean return *is* equal to the dotted black line.  **But I only sampled 1,000 universes.** After 800 bets, only 1 universe in 1,000 has (just barely) more money than they started with. The more bets that I make, the worse it gets for me. The typical (median) return marked by the dashed white line is 1,000,000,000,000,000,000 *less* than what I started with (since you can never reach 0, you always get 60% back). I have a few tiny fractions of a penny left and a dying dream to recoup my money. **The typical universe is very, very different than the average of all possible universes.** I'm not from a mean universe. I'm from a typical, likely, universe. The median of a small number of samples more accurately reflects my reality than the mean of the infinite set. While the total money in all universes grows at 105% per bet, the money leaks from the typical universes to just a few extremely rare, lottery winner universes. There are some small number of universes in the set where I win an ungodly amount of money, but in almost every *other* one I lose big. Why is this so? In short, there are many more ways to lose money than to win money. Let's look at all four of the possible universes of 2 sequential bets: [There are more ways to lose than win](https://preview.redd.it/csnn9uf2g0s61.png?width=581&format=png&auto=webp&s=d01610db7effcc89e7d9bb78f1a8adeb4406c04b) There is 1 way to win and 3 ways to lose. The average winnings are still 105% per bet, compounded to 110.25% over two bets, but 75% of the time you lose money and 25% of the time you win big. The more times you bet, the worse it will typically get for you since you are more and more likely to be in one of the exponentially growing number of losing universes rather than the rare, exponentially rich ones. In this game, the rational number of times to bet depends on how much you care about losing 40% or more of all of your money. Since I consider having a 50% chance to lose 40% of my money too unpalatable, the number of times it is rational for me to bet is zero, even though the bet is positive expected value. *Screw this game.* In the universes where I bet 800 times I've lost all my money. In one of those universes, I go back home and wait for my next paycheck. ### How can I win the game? When my paycheck comes in, I go back to the casino and back to the same table with the same dealer. "Your game is rigged," I say. "I want to bet against The House with my paycheck again, except this time I won't bet everything I own every time. I want to bet less and see how it goes."  The dealer considers this, and says. "Fine. But you must pick a percentage and you must make every bet with that percentage of all of your money." "Great. I'll bet half my money each time." *That way if I lose in the beginning, I'll still have money to bet with.* Let the gods simulate another 1,000 universes, using our new strategy: [1000 simulations of 800 bets of 50% of your bank with 50% to go 1.5x or 0.6x](https://preview.redd.it/tq552k45g0s61.png?width=820&format=png&auto=webp&s=ca4db3d2b64d8902fee2172377227407bdf88cf2) After 800 bets, half of our universes have made money, and half have lost money. Keep in mind that **nothing has changed except how much of my total bank I use to bet**. My typical universe is doing much better than before, but a far cry from the 80,000,000,000,000 return that my infinite selves are earning on average. After 800 bets, I'm right back to where I started. The dealer says, "The House is feeling generous. You may now choose a new percentage to place on each bet. What will it be?" *Reducing my bet size improved my situation. Perhaps even smaller bets will continue to make things better.* "Twenty five percent," I declare as I lay down last week's paycheck on the table, again. The gods flip the coin 800 times in 1,000 universes yet again: [1000 simulations of 800 bets of 25% of your bank with 50% to go 1.5x or 0.6x](https://preview.redd.it/1hg1jvr9g0s61.png?width=820&format=png&auto=webp&s=1288c977cb6e6b9b50a7d80c758e3ca7d1e33472) Now my typical universe is making good money, most of them are up more than 10x, and some as much as 100,000x. Now, satisfied, I finally get up to leave the casino with my money in my pocket. *But, I have to know.* I look at the dealer and ask, "So what's the optimal bet?" ### Kelly's Criterion *In probability theory and intertemporal portfolio choice, the* [*Kelly criterion*](https://en.wikipedia.org/wiki/Kelly_criterion) *(or Kelly strategy or Kelly bet), also known as the scientific gambling method, is a formula for bet sizing that leads almost surely to higher wealth compared to any other strategy in the long run (i.e. approaching the limit as the number of bets goes to infinity). The Kelly bet size is found by maximizing the expected value of the logarithm of wealth, which is equivalent to maximizing the expected geometric growth rate. The Kelly Criterion is to bet a predetermined fraction of assets, and it can seem counterintuitive.* To calculate the optimal bet size use [Kelly's criterion](https://preview.redd.it/c1oiagsag0s61.png?width=126&format=png&auto=webp&s=8734d6f709c4e43ade29656a60e9cf9b3ad87b9a) where  **{b}** is the the percent your investment increases by (from 1  to 1 + b) **{a}** is the percent that your investment decreases by (from 1 to 1-a) **{p}** is the probability of a win **{q=1-p}** is the probability of a loss **{f\*}** is the fraction of the current bankroll to wager (i.e. how much to bet) Using the calculator, you can see the **the optimal bet size is 25%** of your money on each bet: https://preview.redd.it/bks0yqccg0s61.png?width=820&format=png&auto=webp&s=b023fcc98a3ebb31f4ade5732166c8b37042870a Looking again at the above graph, that means that **the optimal betting strategy typically yields less than the expected value** for the strategy. ### Kelly's Criterion Bet Size Calculator [Here's a spreadsheet](https://docs.google.com/spreadsheets/d/1gXIAsFgf86_RPiiG8qfoKScj9e4v5DZp4k1FgvbTQC4/edit?usp=sharing) to play around with the above equation and calculate optimal bet sizes.  Make a copy and edit the cells highlighted in yellow to see what the optimal bet is. Read more in this [awesome Nature Physics paper](https://www.nature.com/articles/s41567-019-0732-0) and this [great article an AMMs](https://research.paradigm.xyz/uniswaps-alchemy).

thetagang

So I’m retarded. But this is more of a meta post saying you shouldn’t YOLO all your spare change if you want an overall positive return on you portfolio? Over time, you’re better off “betting” i.e. making trades with a fraction of your free cash, and you’ll yield more returns over the life of your portfolio?

6534gm

I'm a 20F college student who just got guardianship of my 12 year old sibling. HELP!

Long story short: my mother is a raging alcoholic and after CPS and law enforcement being involved (and the father being out of the picture), I'm now the guardian of my younger sister. I have no idea what to do. I work full-time in a food service job making $10 per hour not including tips, which brings it to around $11-$14 per hour depending on the day. I bring home between $1,700 and $2,000 per month. (Depending on tips) I just signed a lease for a 2br apartment at $900 per month. It is literally the cheapest option I could find that was in a safe area and not too far of a commute to work (around 11 miles). My current expenses are: $160 for a personal loan, $40 for cell phone, $180 for car insurance, $80 credit card. Per month. I honestly don't know what to do. Her child support is coming to me now, so that gives me an extra $400 per month. She doesn't have health insurance and hasn't been in school for almost a year now. Since I am her guardian can I add him to my own health insurance as a dependent? I figured posting here would be most helpful because as a college student I have no idea how to budget for a child. Tuition isn't an issue because it's fully covered by grants. How do I plan this? What are my options? I don't even know where to start... EDIT: Also there are no other adults to help. I am the oldest sibling and my father is also out of the picture. No aunts/uncles/etc. My grandma lives on the other side of the country but is sending a little bit of money to help but nothing else more than that..

personalfinance

Okay, so let's assume the worst case scenario for your income at $1,700 Expenses | | Income | | Net -----------------|--------------|------------------|--------------|---- Rent | -$900 | Job | $1,700 | Utilities? | ??? | | | Personal Loan | -$160 | Child support | $400 | Car Insurance | -$180 | | | Credit Card | -$80 | | | **Total** |**-$1,360**| |**$2,100**| **$740** I didn't see anything about how much you pay in utilities. Electricity, water / sewage, gas, internet are going to add up as well, are any of those included at your apartment? If not, I'm going to estimate and say all of those will cost you another $150 bringing your take home to $600. If there is any room to slim down your expenses do so. Let's sum up some of the advice others are saying in this thread. 1. Don't quit school 2. Talk to your school's financial advisor, they may offer additional support 3. [Apply for food stamps](https://www.fns.usda.gov/snap/apply) 4. Apply for low income housing 5. Sign her up for low income lunch at school 6. Apply for [Medicaid/Healthcare](https://www.childwelfare.gov/pubs/issue-briefs/health-care-foster/) 7. Apply for [Temporary Assistance for Needy Families (TANF)](https://www.acf.hhs.gov/ofa/programs/tanf) 8. Contact [211](http://211.org/). A free service by United Way 9. Declare her as a dependent on your taxes. [United Way](https://www.unitedway.org/myfreetaxes/) can help with that too 10. Find local non-profits, charities and churches. Reach out for help. Research organizations specific to your situation, one example I found from a quick google search is [Nation Association for Children of Alcoholics](http://nacoa.org/). I don't know anything about them specifically but you get the gist. [More information](https://www.childwelfare.gov/topics/outofhome/kinship/support/financial/) This isn't going to be easy, don't forget to take care of yourself too. * Talk to your teachers and academic advisor, let them know what's going on and they can help make accommodations for you when necessary. If you don't, they're going to treat you like every other 20 year old without such huge responsibilities. * Find a support network. Talk to a therapist if you have access to one through your school. Talk to single moms, and others in similar positions. * Lean on support where you can get it As for your sibling * Get them back into school * Talk to their teachers * Get them free tutoring when possible * Help them apply for FAFSA and scholarships their junior(?) year. They can probably go to college for free given their position as a foster kid as long as they graduate high school with a good/average GPA You are doing a wonderful thing and I wish you and your sibling the best of luck.

82z8yk

Quick Reminder to Not Give Away Your Salary Requirement in a Job Interview

I know I've read this here before but had a real-life experience with it yesterday that I thought I'd share. Going into the interview I was hoping/expecting that the range for the salary would be similar to where I am now. When the company recruiter asked me what my target salary was, I responded by asking, "What is the range for the position?" to which they responded with their target, which was $30k more than I was expecting/am making now. Essentially, if I would have given the range I was hoping for (even if it was +$10k more than I am making it now) I still would have sold myself short. Granted, this is just an interview and not an offer- but I'm happy knowing that I didn't lowball myself from the getgo.

personalfinance

This is another frustrating thing about those online form type applications. Many ask you to input a salary requirement and many of those won't let you input something like "Negotiable" as they only take hard numbers. I feel like I'm gaming it a lot of the time by trying not to offer myself out for too low but also not disqualify myself by asking for too much.

qf9tud

If you have to ask you can’t afford it

Now that I have finally gotten to a point in life where I’ve made it I wanted to get this off my chest because it’s an expression that did more damage than good and continues to annoy me. This expression gets thrown around like gospel every time someone asks a question about affordability, whether a car, a boat or a house or what have you. The reality is that I have always asked what things cost because I like to be informed. When I bought my first house I knew I could afford it. I still wanted to know what my expenses would be, so I asked the sellers to provide utilities bills and the insurance premium etc. to get a true sense for the cost. When I bought an expensive sports car I asked around on forums about the cost of maintenance, ownership, insurance and so on, and every single time I got answers that seemed written to discourage a purchase, including the “if you have to ask you can’t afford it”. Now, some 12 years later in life I can look back at all this with more knowledge. The knowledge that people consistently give crappy answers to questions pertaining to affordability. I was told I shouldn’t buy the house because I was asking about costs associated with keeping it maintained. I was told an exotic car was out of my reach because I was asking these questions. Now I know for a fact that this expression is a bunch of BS. Fuck you guys who spew this crap. I still ask about the cost of things no matter how much money I have. It’s ALWAYS relevant when buying something fairly expensive. There’s a lot of jealousy and people like to tell other people that they can’t afford something because it makes the experience more unique to themselves and they don’t want to acknowledge that there may be more people than they think out there who can have nice things. Some idiots quote $5M NW to buy a $100K car. If you listen to knuckleheads like this you could die before you ever realize your dreams. So as a word of encouragement for those of you who are young and working your way up... the next time you hear this, ignore it and do your own research. Determine your own affordability based on accurate data. Chances are you can afford it just fine.

fatFIRE

A friend of mine once dated this college kid who was born into wealth. Parents gave the guy a AMEX black card. He went out to one of the fancier restaurants in town for a first date. He was trying to impress her, so he asked for the most expensive bottle of wine. The waiter warned him that it was expensive, but that it was currently on sale for "half off". The guy didn't ask for the price and just said bring it out. Turned out that it was a $30,000+ bottle of wine that was aged for a very long time. Even worse was that he later found the same year bottle of wine for way cheaper online. His parents took away his AMEX black card after that. The girl didn't even continue dating him after that. Moral of the story: If you don't ask the price, you might get ripped off even if you can afford it.