So I jumped into this not knowing much, I purchased FSELX because I liked the companies within it, they had some wins and now I'm up 72%. Do I ride it out longer? Sell? How do I predict this again? I basically just believed in NVIDIA and that's what made this rise so much. Is there a way to get info on rising companies that's not scouring reddit posts and TikToks?

My 16 year old has saved quite a bit of money. We have a checking account with Bank Of America.

QUESTION: Deciding if it’s easier and worth it to open a custodial account with Merril which is the investing arm of BofA OR open an account with Fidelity?

I like Fidelity‘s choices for mutual funds. Does Merrill have the same choices or different funds?

PRO: The ease since we are already, Bank Of America customers seems seamless versus open account with Fidelity?

CON: Don’t know what fund choices Merrill has to offer.

What do you think? Does Merrill have a good fund line up similar to Fidelity?

Looking at SP500 constitute stocks, majority of the gains have been driven by a few tech names with many stocks/industries being flat

I suppose the question is, at what point do we concede that a market approach underperforms vs a tech ETF?

Looking at ETFs like SCHD, SPYV, the delta to tech ETFs has been growing consistently over the years.

I guess my question is (and I suppose the answer is no one knows), which statement would you agree with more:

1) is this dynamic statistically significant and tech large caps just command such buying power that they can continuously innovate and outperform.

2) other SPY names might be undervalued presenting an opportunity

Thanks !

Hi,

The short story is, I was 16/17 and heard about Tesla stock split and figured it would only go up. So I bought roughly 2k USD worth of shares. Of course my poor philosophy did not go to plan… so here I am two years later down about 50%. What do I do? Hold? Sell?

(Bloomberg) -- With the S&P 500 Index setting record after record, Evercore ISI is predicting another double-digit rally through the end of 2024.

Julian Emanuel, the firm’s chief equity and quantitative strategist, raised his year-end forecast on the S&P 500 Index to 6,000, the highest among major equity strategists tracked by Bloomberg — and roughly 10% above the gauge’s closing level on Friday. That’s an about face from one of Wall Street’s most prominent bears who previously expected the gauge to finish the year at 4,750.

Optimism over a resilient economy, improving corporate earnings and the end of the Federal Reserve’s tightening cycle has pushed the S&P 500 up 14% this year, and Emanuel says ebbing inflation and artificial-intelligence fervor will propel stocks even higher. Emanuel’s new estimate tops the 5,600 level Goldman Sachs Group Inc.’s David Kostin, UBS Group AG’s Jonathan Golub and BMO Capital Markets’ Brian Belski are penciling in.

“The pandemic changed everything,” Emanuel wrote in a note to clients on Sunday. “Record stimulus, elevated cash balances and low leverage support the consumer. Then came AI. Today, GenAI’s potential in every job and sector is inflecting. The backdrop of slowing inflation, a Fed intent on cutting rates and growth support Goldilocks.”

Emanuel also raised his estimate for the index’s per-share earnings in 2024 and 2025 to $238 and $251, respectively. The new levels imply a 8% and 5% profit growth, he said.

The S&P 500’s jump to 6,000 by late December on EPS of $238 will push the gauge’s price-to-earnings multiple to 25 on a trailing basis, Emanuel said. While definitely elevated by historical standards, that’s still short of the 28 level during the dot-com peak, Emanuel said. He sees a possibility of the 500-member index reaching 7,000 by the end of 2025, he added.

While AI exuberance has pushed valuations “to the top decile since 1960,” the S&P 500’s price-earnings multiples may remain elevated for “extended periods,” Emanuel said.

The move comes after Goldman’s Kostin on Friday upgraded the firm’s year-end target for the S&P 500 for a third time, reflecting Wall Street’s optimistic outlook for earnings growth and the US economy. Among the big Wall Street banks, JPMorgan Chase & Co. has the lowest year-end target for the S&P 500 at 4,200, implying a drop of more than 20% from Friday’s closing level.

https://finance.yahoo.com/news/evercore-isi-sees-p-500-163352153.html

hello,

Let's say you buy an ETF and 1% of its portfolio contains a stock, and you also buy that individual stock.

since ETF is a basket of multiple things, if a stock does really well or bad, would the value of the individual stock increase/decrease more than that of the ETF?

For example, if the stock gains $100. Then how much does the value of the ETF rise (since this stock is 1% of it)?

thanks

Which one would you choose between the two and why? If someone know those companies deeply I would like to know which one you think would bring bigger returns in the future? I chooses to invest in the Cybersecurity sector because I think the demand will only rise in the future, one of them can become 1 trillion dollar company?

So currently Nvida has the monopoly on microchips because nobody can deliver what they currently offer. The comon question is; how long will that be the case? Other companies are trying to catch up and the demand is high. So my question is; what companies are the best bet and is it a good idea to invest in them now?

I have both 401k and Roth IRA that I fully contribute to max each year.

My wife and I have been saving up a rather large joint emergency fund in a HYSA worth over $200k. But, now we want to explore early retirement (Early 60s) in which we have a lot saved and invested that will last up to 30 years. We plan to just invest 100%/All-in into VOO to keep it simple and my other retirement accounts are well-diversified with both broad total US and international market funds.

We like the idea that there aren’t any restrictions to a taxable brokerage account since it’s exempted from RMDs. Just pay dividend/interest taxes and pay taxes on long-term capital gains when we sell parts of the shares. It’ll something we’ll contribute into our early to mid 70s.

Does this sound like a solid plan?

I am trying to educate myself on the difference between index funds, mutual funds, ETFs, and any other security options for long-term investment you can think of.

My understanding is that all three have different tax impacts and different fees involved. Each consists of a basket of different stocks and their performance determines the value of each unit. The price of a mutual fund is determined by NAV so it's the same cost/ day vs a constant change of market price when purchasing an ETF. It was mentioned in this subreddit introduction page that, "An index fund is commonly an ETF or mutual fund which is passively managed to track a particular index." How does one determine if an index fund is an ETF or mutual fund since they have different tax impacts?

Some of the mutual funds and ETFs were mentioned to be a mimic of S&P 500, so what is the purpose of these mimics? Why not just buy the S&P since there is no minimum investment requirement?

Can someone recommend a website to give a clear breakdown of the differences? Is there a specific subreddit I should join for this topic? I didn't truly understand the terms "benchmark" and "index" when I was reading between websites. Some of the readings were very clear and novice-friendly, and some were more in-depth with mentions of mutual funds with ETF, Admiral or Investor shares, and they threw me for a loop while I am still trying to get the basics down. I don't understand how people know what to choose between these different "basket options". ETF was mentioned to have a better tax advantage, but I am not sure if it is associated with more fees compared to the other options.

I am interested in opening a brokerage account, which I believe is a taxable account. I would like to get a better understanding of the different options before even looking at the different brokerage companies. Thank you.

Goldman Sachs Group Inc. strategists have boosted their year-end target for the S&P 500 Index for a third time, reflecting Wall Street’s optimistic outlook for earnings growth and the US economy.The bank’s equity strategists led by David Kostin now see the US stock benchmark index finishing the year at 5,600, up from a 5,200 level they predicted in February. The new target implies a roughly 3% advance in the gauge from its Friday close.Goldman’s upgraded target ties with that from UBS Group AG’s Jonathan Golub and BMO Capital Markets’ Brian Belski for the highest on Wall Street.The upgrade in the target is “driven by milder-than-average negative earnings revisions and a higher fair value P/E multiple,” Kostin, the firm’s chief US equity strategist, wrote in a note to clients on Friday.

The upgrade comes one month after Kostin reiterated the firm’s 5,200 target, stating there was no further room for upside in the 500-member gauge through December. The firm’s strategists first introduced their 2024 target in November, before raising it in December and again in February. The S&P 500 closed at 5,431.60 on Friday.While the firm’s strategists maintained their earnings-per-share forecast for 2024 and 2025, they noted that robust earnings growth by the top five megacap technology stocks have offset the “typical pattern of negative revisions to consensus EPS estimates.” Kostin also raised the S&P 500’s price-earnings multiple he deems fair to 20.4 from 19.5.

Kostin gamed out several other scenarios in which stocks can run even higher than his new baseline forecast. If gains broaden out and lift the S&P 500 Equal Weight Index, the main, cap-weighted benchmark could rise another 9% to 5,900 before 2024 closes out. In his most optimistic case, if mega-cap “exceptionalism” persists, the gauge could soar to 6,300 by the end of the year.Conversely, if earnings estimates prove too optimistic or recession fears resurface among investors, the S&P 500 could see a correction of about 13% and fall to 4,700.

https://www.bloomberg.com/news/articles/2024-06-14/goldman-sachs-boosts-s-p-500-target-on-upbeat-profit-outlook

Hi all, I am 18 and have roughly 8k in personal savings put away from part time jobs throughout highschool that I feel can be doing more than sitting in saving. I am about to be a freshmen in college and plan to continue working during my enrollment and would like some advice as to what I should start putting my money and where I should continue putting it as I’m rather inexperienced in anything that could be considered investing and personal finance.

I have a fidelity account and have been observing the sub for a little bit but feel it would be safer to get opinions from those with more experience.

Apologies if this is the wrong place for this post.

Thank you

I miss nightly business report. Straight, to the point and 25 minutes every night. It has been years. I hooe everyone involved with that program is doing well. The cnbcs and fox businesses of the world are too sensationalist for me. What do you guys watch about the market that is unbiased and educational? Thank you so much

I want to start saving money for my little brothers nephews and nieces. Not much but I’d like to let my little brothers choose what to invest in and I’d like to be able to handle everyone seperately. Are there any that make this possible or would I just need to keep track of it myself?

Hello, I’m somewhat new with investing long term, I have a bucket of stocks and I just want to know if it’s smart, or if consolidation of certain stocks would make more sense to hold more shares. Much appreciated!

Symbol VOO VANGUARD IND...

BRKB BERKSHIRE HAT...

VUG VANGUARD IND...

VTI VANGUARD IND...

SOXX ISHARES TR ISH...

XLV HEALTH CARE S...

XLE SELECT SECTOR...

XLP CONSUMER STA...

SCHB SCHWAB US BR...

O REALTY INCOM...

SCHF SCHWAB STRAT...

I've recently met with a Fidelity advisor and they have given some number to show their performance over the years for a portfolio focused on "Growth" (not agressive, more middle-ish). The numbers they showed were.. not impressive. Lower down in the document was listed several markets for comparison (suspiciously, not side by side). I don't know if I can post a screenshot here (doesn't seem allowed by the community), but they underperformed by what I consider a lot. I would assume some underperformance, but this was too much to ignore. Compared to the S&P 500 average annual returns, here are some numbers provided:

3yrs: Fidelity 2.5% vs S&P 500 9.57%. 5yrs: Fidelity 8.82% vs S&P 500 15.80% 10yrs: Fidelity 6.79% vs S&P 500 12.69%

Even Fidelity's Calendar Year Returns were at least several percent poorer (at least is nice)

On top, they want a ~0.8% fee for the advisory service annually.

I think I already know the answer to their proposed offer to manage my accounts, but I thought I would put this at the table for thought.