She should establish a TD account, yes. You'll need to transfer the bond to her in 2023 via her account.
OT: Stock and Investment Thread
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Yikes! I have very small exposure to SNAP via one of my growth funds, but nothing to worry about. Not sure if they will turn it around any time soon. Sounds like they have real monetization issues.
Over the past few months, I have consolidated my modest stock holdings to 10 (down from 14). These are the buy and hold bellwethers. My focus remains on leveraged ETF opportunities.
FYI - I think you can also open an account for your children even if they are under 18 years old (and buy up to the limit).
I just looked at my granddaughters 529 which I opened in February 2020. I contributed $5600 to open the account and that initial deposit is now down 21%. It actually dropped in March 2020 to around the price it is today.
I started with DCA at $100 a week and now am at $400 plus a week. Overall, the account is down about 7.3%. That initial deposit makes up the majority of the loss and would be basically gone if I made the purchase a month later.
But it is also the reason I try to buy consistently because doing so offsets the huge downside over time
I started with DCA at $100 a week and now am at $400 plus a week. Overall, the account is down about 7.3%. That initial deposit makes up the majority of the loss and would be basically gone if I made the purchase a month later.
But it is also the reason I try to buy consistently because doing so offsets the huge downside over time
Amen, the power of DCA is stronger than any temporary bear market. See my post above from Fidelity. Lots of folks losing money by trying to time the market and going cash because they are scared.
We have 7 retirement accounts due to jobs (past and current), backdoor Roth IRAs, and our brokerage account for excess savings. Overall, we likely have 20-25 specific ETFs and Funds in these accounts.
Our biggest account is T. Rowe Price and it consists of 7 of their funds. Our brokerage account (E-Trade) consists of 7 ETFs (which are much better for taxable accounts due to lower cap gains distributions). Our Fidelity IRA rollover has a mix.
Down 17% on my daughter and 21 on my son. He’s younger so in a more aggressive fund making the difference I assume. Will up my contributions for the next year or so to offset. Thankfully I can do that, I feel for those who can’t
Ya ad revenue has dried up as companies look to tighten their belts.
but they did beat on earnings and user growth was strong. The stock might be in a bad place for awhile but if user growth continues and we get to the other side of recession/recession fears such that ad rev comes back the stock could at some point be a strong buy.
Technically, SNAP could go down to ~5.7-5.8 but if it breaks that level we may see if go ~4.9-5. Those are the levels I would be looking for. If it gets to ~$5.75, I would be buying 50% of my allotment.
Morningstar still bullish on SNAP:
Snap Disappoints Yet Again During Q3, but User Growth Makes Us Optimistic
Analyst Note | Updated Oct 21, 2022
For the third consecutive quarter Snap disappointed the Street with miss on the third-quarter top- and bottom-line when compared with the FactSet consensus estimates. While daily average users expanded impressively, monetization remained difficult. In addition to factors such as macroeconomic uncertainty and Apple’s privacy policies, changes in Snapchat user behavior are also increasing hesitancy by advertisers. While these changes may also be hindering ad revenue growth for Meta and Alphabet, we believe it is a lesser concern for these firms.
Snap provided some color regarding the fourth quarter, pointing to results below the FactSet consensus estimates. We have lowered our near-term projections but are maintaining our $27 fair value estimate as we believe the firm’s continuing user growth will bring more advertisers onboard in the medium and long term. Putting aside the macroeconomic and geopolitical issues that are affecting overall ad spending, we believe Snap is addressing its user monetization issue correctly as it not only continues to focus on user growth—but also on enhancing the technology and tools for advertisers to both purchase ads and more accurately measure the performance of those ads. In addition, we applaud Snap’s capital allocation as it announced a $500 million share buyback given its progress toward generating free cash flow consistently. Shares of this no-moat firm are down 27% after-hours and are trading at a 70% discount to our fair value estimate. However, this investment requires patience.
Total revenue increased 6% to $1.13 billion driven mainly by user count, which was up 19% from last year to 363 million. The increase in users lifted ad impressions sold 8%, but weak demand from advertisers drove the average price down 3%. As a result, revenue per user declined 11% year over year to $3.11.
Snap Disappoints Yet Again During Q3, but User Growth Makes Us Optimistic
Analyst Note | Updated Oct 21, 2022
For the third consecutive quarter Snap disappointed the Street with miss on the third-quarter top- and bottom-line when compared with the FactSet consensus estimates. While daily average users expanded impressively, monetization remained difficult. In addition to factors such as macroeconomic uncertainty and Apple’s privacy policies, changes in Snapchat user behavior are also increasing hesitancy by advertisers. While these changes may also be hindering ad revenue growth for Meta and Alphabet, we believe it is a lesser concern for these firms.
Snap provided some color regarding the fourth quarter, pointing to results below the FactSet consensus estimates. We have lowered our near-term projections but are maintaining our $27 fair value estimate as we believe the firm’s continuing user growth will bring more advertisers onboard in the medium and long term. Putting aside the macroeconomic and geopolitical issues that are affecting overall ad spending, we believe Snap is addressing its user monetization issue correctly as it not only continues to focus on user growth—but also on enhancing the technology and tools for advertisers to both purchase ads and more accurately measure the performance of those ads. In addition, we applaud Snap’s capital allocation as it announced a $500 million share buyback given its progress toward generating free cash flow consistently. Shares of this no-moat firm are down 27% after-hours and are trading at a 70% discount to our fair value estimate. However, this investment requires patience.
Total revenue increased 6% to $1.13 billion driven mainly by user count, which was up 19% from last year to 363 million. The increase in users lifted ad impressions sold 8%, but weak demand from advertisers drove the average price down 3%. As a result, revenue per user declined 11% year over year to $3.11.
From it's lows in late 2018, when the stock went below $5, it went on a run up towards $18 mid 2019, and then traded between $12ish and a $20 till the covid dip.
It's still not at those 2018 lows, but is well below that percovid range, despite having added a ton more users, more then doubling rev's(from 2019) and now showing profits consistently.
I guess there is the question of which of these social media apps stand the test of time, but given the continued user growth, I think this is merely recession fears affecting media spending. Once we get through that and ad spending comes back, this could be a great own.
Who knows the timeline, but if this recession hits harder then expected then the whole market is going to feel that pain.
I'm not concerned with a possible recession, but rather the next evolution of social media. Can SNAP adapt quick enough to stay relevant and successful? Not sure, but the fact that Morningstar is bullish is a good sign.
Ya, similar story for all sorts of emerging sectors, fintech (sofi for instance), EV's, streaming, social media.
Who are the long term winners?
But like I've said above, if they keep growing users, the ad rev will bounce back significantly on the other side.
Looks like Capital One went up to 2.35%. My question is if they raise their rate and you currently were getting 2.20% does your rate automatically go up or do you have to cancel your existing account and open a new one?
It's automatic whenever rates change, either up or down (so is Ally and I think all such accounts). This isn't like CDs.
Good read:
Other experts have also noted inflation is trending down, raising concerns that the Fed could overtighten financial conditions if it plows forward with more aggressive rate increases. Wharton professor Jeremy Siegel noted that there is a lag of about 18 months between what Consumer Price Index data shows and what inflation is "on the ground," meaning the inflation picture could be far less bleak than the Fed initially believed.
"A more nuanced dialogue is taking place regarding CPI as well. [The] Fed conditioned markets to only focus on 'hard' data," Lee said. "Many investors are starting to see the fallacy of looking at lagged CPI versus leading [CPI indicators]," he added.
Labor market conditions are also showing signs of cooling, a key signal the Fed is watching for to understand if inflation is easing.
Other experts have also noted inflation is trending down, raising concerns that the Fed could overtighten financial conditions if it plows forward with more aggressive rate increases. Wharton professor Jeremy Siegel noted that there is a lag of about 18 months between what Consumer Price Index data shows and what inflation is "on the ground," meaning the inflation picture could be far less bleak than the Fed initially believed.
"A more nuanced dialogue is taking place regarding CPI as well. [The] Fed conditioned markets to only focus on 'hard' data," Lee said. "Many investors are starting to see the fallacy of looking at lagged CPI versus leading [CPI indicators]," he added.
Labor market conditions are also showing signs of cooling, a key signal the Fed is watching for to understand if inflation is easing.
Who said anything about lagging metrics? You need to ignore the "official" numbers. They are not real. Unofficial inflation could be 10%+. Most likely scenario, we settle in a 5% inflation rate over the next few years. 2%-3% is not coming back any time soon. The fed will try to make you feel better trying to maneuver around housing, wage, and healthcare inflation, but has zero control over food and global energy prices. Did you not see what Saudis did about oil production? And if anyone missed it, there is a little issue in Eastern Europe affecting food supply.
Double beat for MSFT! Great quarter:
- Earnings: $2.35 per share, vs. $2.30 per share as expected by analysts, according to Refinitiv.
- Revenue: $50.12 billion, vs. $49.61 billion as expected by analysts, according to Refinitiv.
How many of you have decided certain items are not worth the price increase and stopped buying the product?
Earlier in the thread I mentioned I switched to store brands but for certain things I will not do that
So no ice cream now because I would only buy the better brands and the increase made me decide to drop a few pounds
If sales volume goes down will prices drop?
Earlier in the thread I mentioned I switched to store brands but for certain things I will not do that
So no ice cream now because I would only buy the better brands and the increase made me decide to drop a few pounds
If sales volume goes down will prices drop?
Honestly, we don't even look at prices in grocery stores for food or day-to-day items. We also buy a ton via organic farms in the area. Regardless, I have noticed some items pop in price. Just not a big deal for us at this time.
Rarely will prices ever drop. Much of this depends on whether the product or service is discretionary or a necessity. It will also depend on what competition exists to purchase that product or service elsewhere.
Manufacturers develop elasticity models where they will measure changes in price to expected changes in volume. Therefore, an expected drop in volume can sometimes be more than offset by selling less but at at higher prices.
Grocery store doesn’t make or break me but the price increases on certain items like organics is insane. Applegate farms products are 40% more expensive even at Walmart.
Apple and Amazon report earnings on Thursday. XOM and Chevron on Friday a big week for earnings all together.
You seem out of touch, to put it politely as possible. LOL. It's really not about your financial achievement or the fru-fru purchasing habits it may afford you, or me, for that matter. Get over that highbrow schtick. Put it in the context of the general population. It's about Main Street America, blue collar/working class. Those folks are being squeezed financially, and this could last quite a while.
It has nothing to do with emotion, ego, or being in touch. It's just about dollars and sense. When we first got married, we worried about such things and were coupon experts. Times have changed. We are mid-career and doing well. We don't need to track day-today expenses (within reason). This isn't just because of income, but also since we live well below our means.
Regardless, as we approach retirement I'm sure we will track such expenses again.
As for the topic, remember that lower income folks have experiences the highest wage gains. Real inflation isn't as bad as the scary headline numbers.
We buy a few different Applegate products via Shoprite. Good quality, especially their organic grilled chicken strips. Great for quick weeknight dinners.
We won't hit the bottom until there is increase in unemployment. If unemployments stays low then we will stay in the current uncertainty for the stock market. We need there to be a recession before the stock market improves. I have a feeling that after the election, there will be more news of a recession and the job market will cool significantly.
It was a double beat. Great performance in light of the strong dollar and its impact. Nothing MSFT can do about that.
Not really, I have transitioned to store/cheaper brands on certain items(mostly salsa), and, I've been making my soups from the basics, dried lentils and adding veggies, as opposed to just buying canned soups. Now I had done this previously, and I do prefer it because it's less additives, while being just as good if not better.
I'm also not a huge consumer in general, but it's pretty much been business as usual, I need something, I buy it.
Visa just came out and said it doesn't see any signs of consumer weakness. Which makes sense given unemployment rate and rising wages, especially at the lower wage levels.
I disagree a bit on this.
I think the road to a soft landing is via inflation coming down in the face of low unemployment.
There just seems to be way too many jobs out there.
There is a stealth debate going on on CNBC
One camp, led by Cramer, especially after the Google and MSFT results, is saying these companies need to cut the fat, lay people off, become more efficient.
While the other camp, led by Josh Brown is saying companies are going to keep workers around, because they don't want to be in a situation again where they want to higher people, and won't be able to. Not to mention the costs, and inefficiencies associated with laying people off, and then rehiring people.
One camp, led by Cramer, especially after the Google and MSFT results, is saying these companies need to cut the fat, lay people off, become more efficient.
While the other camp, led by Josh Brown is saying companies are going to keep workers around, because they don't want to be in a situation again where they want to higher people, and won't be able to. Not to mention the costs, and inefficiencies associated with laying people off, and then rehiring people.
Taking some profits from non tech stock after this run. After Fed increase rate next week, what direction will the market move?