Investment BS Thread - Stocks/Futures/Mutual Funds/Bonds/Commodities/Options/ETFs/401ks/Etc

My understanding of target funds is that they hold mutual funds within them. That is why they have higher expense ratios than index funds. Vanguard is a great company to invest with.

 

Just looked at all of the investment options and my head is spinning now. What do you guys thing about Small vs Large Cap Funds?

 

Small cap companies would more likely be in a growth stage, large cap more in a value stage (although some may still be growing). Small caps more volatile, large caps more stable.

Edit: Probably worth adding, you can make a lot of money in small cap stocks if you know what you're doing (or get lucky). I like the safety and stable but slow growth of large cap companies.

 

Eeek, woke up to a tsla dump.

 

That's normal though isn't it?

 

i was just about even too.

 

LYFT options are trading today. Thinking about buying some puts.

 

Thoughts or opinions on 20-30% of 401k allocated to an international fund?

 

I have been hearing a lot lately that foreign money is going into U.S. stocks. I think the rest of the world economy may be doing worse than ours (the German bund yield was recently negative). For a long-term hold, it's probably fine and will work itself out like it always does. I think the U.S. is the strongest economy at the moment though.

 

Thoughts on SAN (Santander Bank)? I work for a Low Income Housing Tax Credit syndicator and this bank just toured our offices. They are based out of Spain. It seems like they must be fairly sophisticated and expecting US profits if they are dealing with us. Their share price is close to historic lows and they pay a 6.24% yield. Share price is under $5 a share so I may go in for a 1-2 hunnit shares and see what happens.

 

Maybe hold this one for the great yield and not expect anything in terms of share price. It was about this price in the late 1980's, but that yield could make it a great investment if you like income and a steady 6% per year.

 

^ To add to that, a lot more research would be needed. The biggest thing I'd focus on is if the dividend history and the company's ability to cover it. If they cut it, you'd be screwed. But if it's a reliable dividend, lock that 6% in and it should only go up.

 

Good point. I'll do some more research on them while the market is so high and next dip be ready to go if in if they seem reliable in terms of dividend.

 

Their div has been decreasing but I'm going to buy some if they hit $4.75

 

It looks like it decreased with the share price. If it hadn't decreased, the yield would have been ridiculously high. The payout ratio is 47%, that is very good, they should be able to cover the dividend at that rate with no problem.

 

I'm contributing 10% to an int'l index fund.

 

I saw 30% recommended but it was just some guide on reddit, so I did 20%(of my 401k, not 20% of my income) being cautious.

Edit: it looked like the fund wasn’t doing as well recently so maybe it’ll kick back up after I get some money in it. I’m pretty sure I only saw one international fund available for me.

 

Intl stocks have been doing poorly since beginning of last year. US stocks are more resilient. US stocks had no gains 2018 but intl stocks lost 10-15%

 

I'll have to reallocate some of my S&P 500 index to an International index. Now would be a good time, market high as a kite

 

This may prove to be a good idea, no clue what will happen with the market. But remember, at one point, every price was at one point an all time high. I constantly remind myself of this so that I don't get scared of adding money.