OT: Stock and Investment Thread

[phs73rc77gsm83]

Switching gears a bit, what advice do you all have on using a financial advisor? I've typically managed my own investments but should probably have some help at some point to make sure I'm not missing anything. Financial advisors keep contacting me on linkedin and anywhere else they can find me, but not interested in handing it over to someone. Thinking maybe just some guidance from a fee only advisor but seems like that could run up a nice bill quickly. Any thoughts/experiences?

I would never fault anyone for their choice with respect to money management. Having said that, I strongly advise folks to learn how to do it yourself and manage your own finances. I use Vanguard and don’t pay for trades and pay an average expense ratio of about 10 basis points on my portfolio. Advisors will often charge you 100 or more basis points on AUM. So by way of example, on a million dollar portfolio you’re paying $10,000 per year. And often more.

An exception may be a very complex situation where you are selling a business, farm, or have some other out of the ordinary circumstances. That might call for some professional advise from an advisor and/or estate planning attorney. Just my opinion.

 

[Jtung230]

I’m actually looking into hiring an advisor now. The fee sounds high but not as bad if factor in mgmt fees on funds, esp income funds. The reason I’m looking is that I need an unbiased opinion. I will still have my own portfolio but the longer term stuff can be invested w/o FOLM. Of course the main reason is that I’m just too lazy to read 10ks .

 

[RU05]

I’m actually looking into hiring an advisor now. The fee sounds high but not as bad if factor in mgmt fees on funds, esp income funds. The reason I’m looking is that I need an unbiased opinion. I will still have my own portfolio but the longer term stuff can be invested w/o FOLM. Of course the main reason is that I’m just too lazy to read 10ks .

Why not just go simple and buy the S&P?

 

[Jtung230]

I've never actually shorted a stock, so I don't even know how, and I'm a little wary of the process.

Fast Money did note some unusual options activity with GME(the guy noted there is always unusual activity with GME) but someone bought like 8000 of the April something calls at a $800 strike price. Maybe whoever bought it is just a nut, but maybe something worth watching.

I posted about those calls last week. Those people are literally setting their money on fire. The guys who are writing them like Bill Gross are very happy to take their money. They are probably the same people betting on RU football winning the Natl Championship next year. YOLO

 

[Jtung230]

Why not just go simple and buy the S&P?

I like more beta in my stock portfolio and I still need someone on the fixed income side.

 

[RU05]

@jtung230

QS below $42. This has been a level of support twice before, if it breaks here, not sure where it goes.

Many other stocks are in a similar spot.

I just went on a selling spree.

 

[Jtung230]

Why not just go simple and buy the S&P?

I’ll give you the perfect example. Last March during the sell off, my advisor called me on some deep discounted prefers. I bought some but not nearly as much as he wanted me to. Next day, it all snapped back. FOLM got me.

 

[Jtung230]

@jtung230

QS below $42. This has been a level of support twice before, if it breaks here, not sure where it goes.

Many other stocks are in a similar spot.

I just went on a selling spree.

SPACs are getting crushed. I’ll avg in slowly.

 

[RU05]

I’ll give you the perfect example. Last March during the sell off, my advisor called me on some deep discounted prefers. I bought some but not nearly as much as he wanted me to. Next day, it all snapped back. FOLM got me.

So you then fired that advisor?

 

[T2Kplus20]

I’m actually looking into hiring an advisor now. The fee sounds high but not as bad if factor in mgmt fees on funds, esp income funds. The reason I’m looking is that I need an unbiased opinion. I will still have my own portfolio but the longer term stuff can be invested w/o FOLM. Of course the main reason is that I’m just too lazy to read 10ks .

We have an advisor for our Roth IRA accounts (mostly to help with the backdoor paperwork). This accounts for about 15% of our retirement assets. He does a good job and earns his fee (about 1%). We get good advice on our entire portfolio and it has paid off. Got us into XLE a few months ago and some small cap value plays. He is very conservative, which is a nice POV, but open-minded. He actually owns 2 BTCs that he bought several years ago since clients started asking about cryptos and we wanted to learn about them.

But as the saying goes.....an advisor is only as good as his/her advice. I'm sure there are a lot of crappy ones out there.

 

[RUAldo]

I’m actually looking into hiring an advisor now. The fee sounds high but not as bad if factor in mgmt fees on funds, esp income funds. The reason I’m looking is that I need an unbiased opinion. I will still have my own portfolio but the longer term stuff can be invested w/o FOLM. Of course the main reason is that I’m just too lazy to read 10ks .

The issue for me is that I have yet to find an advisor that tells me something I don’t already know. Most of them are not stock pickers and are more content with putting your money in funds that pay them on the back-end in addition to the front-end AUM fee.

 

[RUAldo]

We have an advisor for our Roth IRA accounts (mostly to help with the backdoor paperwork). This accounts for about 15% of our retirement assets. He does a good job and earns his fee (about 1%). We get good advice on our entire portfolio and it has paid off. Got us into XLE a few months ago and some small cap value plays. He is very conservative, which is a nice POV, but open-minded. He actually owns 2 BTCs that he bought several years ago since clients started asking about cryptos and we wanted to learn about them.

But as the saying goes.....an advisor is only as good as his/her advice. I'm sure there are a lot of crappy ones out there.

FWIW, Fidelity takes care of my back-door Roth strategy with a 5 min phone call.

 

[Jtung230]

So you then fired that advisor?

Someone has to take the blame. LOL

 

[RU in IM]

Well my friends, more downward pressure on Tesla and ARKK this morning. If they open at or near the current futures prices, they will both be down 30% from their high. Cathie had a GREAT 2020 and Tesla is a good company; but it is clear now (even though a few were fighting a good fight on this board) that they were significantly over priced.

 

[RU05]

Well my friends, more downward pressure on Tesla and ARKK this morning. If they open at or near the current futures prices, they will both be down 30% off their high. Cathie had a GREAT 2020 and Tesla is a good company; but it is clear now (even though a few were fighting a good fight on this board) that they were significantly over priced.

All the high flyers are being reeled back in.

 

[Jtung230]

The issue for me is that I have yet to find an advisor that tells me something I don’t already know. Most of them are not stock pickers and are more content with putting your money in funds that pay them on the back-end in addition to the front-end AUM fee.

That’s a red flag. Why pay double the fees. I’m going with someone who has a basket of stocks and fixed income. No funds. It’s like their own Dow 30. They rotate sector to sector based on the background.

 

[RU05]

China now putting pressure on Nike.

Stock down 5.6%

 

[Jtung230]

So you then fired that advisor?

The other funny thing is that he left my open orders in the system for like 3 months as a reminder for me.

 

[T2Kplus20]

Well my friends, more downward pressure on Tesla and ARKK this morning. If they open at or near the current futures prices, they will both be down 30% from their high. Cathie had a GREAT 2020 and Tesla is a good company; but it is clear now (even though a few were fighting a good fight on this board) that they were significantly over priced.

Let's all calm down. TSLA went below $550 a few weeks ago and bounced back to $700+ within days. The market is just trying to figure things out. Lots of good news coming out and some folks fear the feds pulling back on the pumping. However, once this dust settles, folks will remember that a good economy is.....wait for it.....good for the market and companies. Everything will be fine.

But yes, I agree with you. TSLA is overvalued based on traditional metrics. Investors need to decide what is the right price to add or jump in.

 

[Jtung230]

@T2Kplus20
If your logic is correct, why did all these tech stocks take off in 2020 when the economy was bad?

 

[T2Kplus20]

@T2Kplus20
If your logic is correct, why did all these tech stocks take off in 2020 when the economy was bad?

The economy was MUCH better that expected. Much. much better.

 

[RUAldo]

I believe this explains much of the tech turmoil. Retail traders may be getting bored or perhaps distracted now that warmer weather is here and reopening is underway. In 2020, Retail traders were dumping stimulus money into “cool” and familiar companies/stocks without regard to fundamentals.

https://www.cnbc.com/2021/03/24/tec...=iosappshare|com.apple.UIKit.activity.Message

 

[RU05]

@T2Kplus20
If your logic is correct, why did all these tech stocks take off in 2020 when the economy was bad?

Many of those tech stocks benefitted from the shut down.

 

[RU05]

I believe this explains much of the tech turmoil. Retail traders may be getting bored or perhaps distracted now that warmer weather is here and reopening is underway. In 2020, Retail traders were dumping stimulus money into “cool” and familiar companies/stocks without regard to fundamentals.

https://www.cnbc.com/2021/03/24/tec...=iosappshare|com.apple.UIKit.activity.Message

How much more were we thinking these stocks were going to run?

Of course the TSLA's and the ZM's of the world needed to come back.

GME is a whole thing in itself, but it has dropped hard then spiked again a couple times, it was up a bit this morning after yesterdays crash.

 

[RU05]

SPACs are getting crushed. I’ll avg in slowly.

remember they are years away. I'd be wary that this thing can maintain any type of upwards momentum until they start actually producing a product.

 

[Randal7]

blackberry reports on Tuesday -- thoughts?!

 

[Jtung230]

Many of those tech stocks benefitted from the shut down.

now the economy is moving back to normal, those benefits will be gone and the stock prices are reflecting that.

 

[T2Kplus20]

How much more were we thinking these stocks were going to run?

Of course the TSLA's and the ZM's of the world needed to come back.

GME is a whole thing in itself, but it has dropped hard then spiked again a couple times, it was up a bit this morning after yesterdays crash.

Focus on the value tech plays that are at or below FMV. You are right, time to put the pure spec plays on the sidelines.

Should be a fun day with the market! Gotta run for a family outing.

 

[Frida's Boss]

Focus on the value tech plays that are at or below FMV. You are right, time to put the pure spec plays on the sidelines.

How does Morningstar arrive at its estimates for fair market value?

 

[T2Kplus20]

FWIW, Fidelity takes care of my back-door Roth strategy with a 5 min phone call.

Thanks for the heads up.

and FYI, never put you on ignore. You are more good than bad.

 

[RU05]

blackberry reports on Tuesday -- thoughts?!

I know that was a WSB's play, and I guess BB is getting more into areas that look to be growing sectors, but they've shown no upward trend in rev or earnings in recent years or even recent qtr's, Estimated rev's are expected to be less in 2021 then they were in 2020.

Did anything change in this last qtr that will lead to a change in trajectory so as to beat expectations? Just viewing from afar I'm doubting it, the hype seems to be merely WSB's driven.

 

[T2Kplus20]

How does Morningstar arrive at its estimates for fair market value?

I'm post more later tonight. Very conservative and traditional metrics (deep dive from their analysts). A few examples:

FMV for AMZN is $4000
FMV for TSLA is $340

Gotta run for now.

 

[RU05]

now the economy is moving back to normal, those benefits will be gone and the stock prices are reflecting that.

Definitely part of it, as is the fact that they ran way too hot.

But the consensus is thinking that the rotation to cyclicals will continue, and that is where you will, hopefully, see the rise in rev's/earnings.

 

[RU05]

QS bounces to $45, support holds.

 

[RU05]

NSDQ bounces, in the green.

Edit: not anymore.

 

[RUAldo]

Thanks for the heads up.

and FYI, never put you on ignore. You are more good than bad.

Years ago I had to deal with a bunch of paperwork. But these days contributing to the rollover and then going from the rollover to the Roth is a piece of cake. Fidelity even helps me move my after-tax 401K contributions (in excess of limits) from my 401K into my Roth through a similar back-door strategy. It’s another nifty way to beef up the Roth that a lot of people don’t take advantage of.

 

[RUBlackout]

What is this Roth backdoor strategy? I was told I cant contribute to a Roth due to income

 

[RUAldo]

What is this Roth backdoor strategy? I was told I cant contribute to a Roth due to income

It’s hard to give you the complete picture in a post but if you Google “back door Roth” there are tons of articles. Plus, I’ve been doing it for so long as a regular strategy to the point I may have forgotten some of the intricacies. I do know that if you already have a traditional IRA it complicates the typical back-door Roth a bit. And, the 401K back-door Roth angle depends on whether you can make after-tax contributions (and if your 401K plan allows it). But, it’s worth researching to see if you can benefit. Fidelity has always been extremely helpful in educating me about how to implement the overall strategy. FWIW, I’m a huge fan of Fidelity on all fronts. Their platform, resources, customer support, etc. are like no other IMO.

 

[RUBlackout]

It’s hard to give you the complete picture in a post but if you Google “back door Roth” there are tons of articles. Plus, I’ve been doing it for so long as a regular strategy to the point I may have forgotten some of the intricacies. I do know that if you already have a traditional IRA it complicates the typical back-door Roth a bit. And, the 401K back-door Roth angle depends on whether you can make after-tax contributions (and if your 401K plan allows it). But, it’s worth researching to see if you can benefit. Fidelity has always been extremely helpful in educating me about how to implement the overall strategy. FWIW, I’m a huge fan of Fidelity on all fronts. Their platform, resources, customer support, etc. are like no other IMO.

Thank you! I maybe to look into fidelity at this point. I use Schwab, Have AXA with an advisor(not fiduciary), and robinhood(for fun)

 

[RUAldo]

Thank you! I maybe to look into fidelity at this point. I use Schwab, Have AXA with an advisor(not fiduciary), and robinhood(for fun)

I’ve seen/used other firms but eventually moved my entire portfolio to Fidelity. Best move I ever made.