Let's say there's a demand for some high tech device like mobile phones and they need to be made.

How is it decided and carried out?

Who pays the start up costs associated with starting this all up, like the plant and equipment, the manufacturing site itself, parts, distribution, staffing, and other overheads?

Also who wears the losses if the venture fails?

I'm curious to find out how it would be any different to what we have in capitalist/market economies where it's a fairly simple process of raising capital and people (investors/capitalists) invest to get a return on the investment of their capital if they feel the investment is safe.

Bernanke had the same issues at the end of 2008. Go pull up a chart and compare equity markets to a decline in the Fed’s balance sheet then: https://www.federalreserve.gov/monetarypolicy/bst_recenttrends.htm

Welcome to the world of debt monetization, where the government buys its own debt en masse. We’ve been robbing Peter to pay Paul and the US and the Fed are both Peter and Paul.

Edit: I’m not suggesting that you buy or sell, or do any of the flip flap trip trap trader stuff. I’m holding and continue to DCA stocks and funds I believe in. I’ve learned better than to try to time the market. Do whatever you think is best for your own situation and risk tolerance. Not financial advice of course, do your own research and be skeptical of everything you read.

What's the overall verdict? I'm sure the answer lies in the middle.

Having to pay employees more (at corporations/companies who do attempt to give cost of living raises) and having your entire supply chain cost more is a problem. Can you pass 100% of the inflation-related expenses on to your consumers? I don't know.

Sometimes the market goes up, up, up and the advice passed around here is "billions of dollars need return! bonds too low, inflation good!"

Then the market goes down and we get news articles about fears of inflation.

Inflation is here. We're like 38% higher than we were on 02/14/2020 (right before COVID crash) on the S&P. $337 -> $467 on SPY. Far more than the typical 7-10% we see touted around these forums. It hasn't caused the market to stop climbing yet.

Got a question here, I’ve got a startup that sells climbing gear. I have a business connection that allowed us to acquire the inventory for a fraction of the wholesale price (worth about 250k retail, paid 40k). Recently, my business partner has told me that I need to sell back half my equity (for nothing) so he can pitch the business to investors by giving them the equity I sold back. Is this a common thing? I figured that if we get investors onboard we can transfer our own equity rather then having it floating around in the business, or is it there a reason to pitch the business with non-vested equity?

Hey Everyone,

My wife and I of 10 years (I'm 39, she's 42) have decided to divorce (we share one child). My wife is more attached to our current home than I am and she has hinted that she'd like to stay in it post-divorce, but she's been a SAHM for the past 2.5 years. Before becoming a mom, she earned about 40K/yr.

We have about 900K in retirement assets that will likely get split in half. So, let's just say for argument's sake that she gets 450K of that.

Here are our house details: 240K left on loan, Valued at 500K. That leaves us with 260K equity.

So, my wife will struggle paying the mortgage on her own even if she refinances (and qualifies). I suggested her buying me out (260K/2 = 130K) with the retirement assets that she'd likely get after we settle the divorce. Even then though, she'd likely struggle to pay the monthly mortgage and associated home expenses.

So, even though I'm not as attached to the home as my wife is, I'm now considering possibly buying her out of the home...and giving her more retirement assets to serve as the buyout. So, if I do that, I'd be left with about 300K in retirement assets, but I'd have the house. I'd be able to afford the mortgage even after possibly alimony and child support (I did some rough calculations) and it would only be a few hundred bucks more expensive than renting an apartment (after you consider property taxes and other miscellaneous "home-only" expenses). We'd be sharing custody of our child 50/50. I'm trying to figure out if it's better just to sell the home, take the equity, rent for a year...and then figure everything out after that. Or, see this as an opportunity to invest in an appreciating asset (our home has gone up 150K in value in less than 3 years). Honestly, I could go either way...and if I went to re-purchase a home in the next few years, I doubt I'll be able to get anything of this size and in this good of an area for the same price (we paid 358K for a brand new 3000 sq ft townhome with great public schools nearby). I won't need this big of a home since it'll only be my son and I living here (and him only half of the time), but it would suck to have to pay more in the future for less space (which appears likely with the continued increase in home prices over the past 4-5 years). Our son is only 2.5 and hasn't really made any friends here, so he'd probably be okay with whatever relocation we do.

Thoughts? Suggestions?

My colleagues are always talking about investing in real estate.

Talking about "property" for investment is the only option for them.

I on the other hand have been investing in mutual funds and stocks for a long time.

How do you convince people to consider looking into Investing in other instruments?

Hello all,

This Megathread is to be a resource for apes to have a direct link to the SEC Report as to cut down on spam in /New. The direct link to the report can be found below as well as the SEC website link that leads to the pdf.

https://www.sec.gov/news/press-release/2021-212

https://www.sec.gov/files/staff-report-equity-options-market-struction-conditions-early-2021.pdf

All talk of the report does not have to be kept to this megathread, but future posts containing only the link to the report will be removed in the near future.

Edit 1: JUST A REMINDER, NO BRIGADING. We will issue bans for those who are found to be doing this.

As always this is a temporary sticky, and a link to Doom's Computershare Guide can be found below.

https://old.reddit.com/r/Superstonk/comments/ptvaka/when_you_wish_upon_a_star_a_complete_guide_to/

Some highlights of the 2022 global investment outlook from MS.

- Inflation peaking as supply chains ease up

- S&P500 to decline 5% in 2022

- Europe and Japan reasonably priced and should see growth

- Stock selection to matter more than the style and sector

- Oil (90$/barrel) and Aluminum top pick amongst metals

The 5% predicted drop in S&P500 by MS is bullish compared to the 15-20% correction Mike Wilson has been suggesting for months

https://www.morganstanley.com/ideas/global-investment-strategy-outlook-2022

Happy New Year! I logged in to rebalance my accounts this morning and noticed some interesting emotions.

When I retired in May 2019 I decided to adopt ERN's rising equity glidepath from part 19 of the ultimate guide to SWRs. In particular, an "active" glidepath from 65% equities to 100% equities (or as high as I can stomach). My specific routine is this:

• I have a spreadsheet that adjusts my allocation based on a 10-year horizon (ie, the formula for equity allocation is =max(0.65,0.65+0.35*(S29-N29)/3650), where S29 is =today() and N29 is my "retirement date" [ETA: in the "how long ago did I retire?" sense])
• On the first of the month, I see whether the S&P 500 hit an ATH in the previous month. If it did, I adjust my retirement date back by one month [ETA: meaning, even though I've actually been retired one month longer, I adjust the retirement date to fake the spreadsheet into thinking I retired more recently.]
• Once I have my equity allocation, I rebalance like normal. I'm skipping some details of how I divvy up equities across US/Int'l and Large/Small, but it's all proportional to the overall allocation.

In theory, this boosts my failsafe WR from about 3.25% to about 3.5%, a 7.5% increase in retirement spending. I get this free money by reducing sequence-of-return risk, and I reduce SoR risk by giving up some upside potential (graph).

So, to the title of this post, how does this all feel in actual practice? Well, Stocks had a phenomenal year. I'm 2.5 years into retirement, so I should have moved from 65% equities to almost 75% equities. But no, I'm not even to 68% equities yet, because my "retirement date" is no longer May 2019 but rather April of 2021! So I feel like I missed out on a a piece of 2021's stellar performance, and that feels lousy. BUT, the whole reason I invest like a conservative old man in the first place is because I got ulcers in 2008 at 80% equities. This lousy feeling from missing out on some gains is WAY better than those ulcers.

For all I know, next year will be another 2008. The lower I keep equities now, the more room I'll have to increase equities while the market is down, to see more of the recovery. So that's what I remind myself of when I consider cheating on the plan and bumpin

I recently bought a house and my fiance is saying that he wants equity because he is paying half the mortgage. Our original plan was to add him to the title once he'd payed half the cost of the downpayment because he was not able to help with any of the purchase costs. However recently, he said he won't make any more mortgage payments until we have in writing that it's counting towards equity.

We split all the bills equally. I do most of the cooking and cleaning, he's doing most of the repairs/maintenance that won't require permits.

We approach finances very differently and have always had separate bank accounts. I'm hesitant about the equity thing because on the chance things don't work out - 1. I really don't want to lose the house 2. I don't know if I'd have the liquid cash to buy him out and the house has a 60k foundation issue I need to save up for to fix

So I'm not sure if I should just pay the full mortgage in the meantime or if he already may have equity by default because he's been paying half the mortgage for 6 months.

Any advise would be much appreciated!

Edit: Thank you everyone for the responses. I really appreciate it and it's given me a lot to think about. I think I'm going to propose this to him:

Mortgage payments he's paid to date/(total mortgage amount + downpayment & closing costs + foundation repair cost + loan interest to date)/2 to get the percent equity.

And then equity x (1/2 current home value on Zillow)

Dr. Jim Decosta Travels to the Future a Couple of Decades Via His Old DD and Explains That the Official Gamestop Report from the SEC Indirectly Confirmed That There are Hundreds of Millions of Counterfeit / Phantom / CEBE shares of GME in Existence.

Staff Report on Equity and Options Market Structure Conditions in Early 2021 by the SEC:

https://www.sec.gov/files/staff-report-equity-options-market-struction-conditions-early-2021.pdf

Staff Report on Equity and Options Market Structure Conditions in Early 2021 by the SEC:

>The shorts closing their position was a small fraction of the run-up in GME stock price in 1/2021. Buying to cover or closing the short positions did not account for the majority of the run-up in GME stock price in 1/2021. A short squeeze did not appear to be the main driver of events.

Staff Report on Equity and Options Market Structure Conditions in Early 2021 by the SEC:

>The unusually high amount of short selling raised the question of whether some of the short sales were “naked”—namely, made without arranging to borrow the underlying security. When a naked short sale occurs, the seller fails to deliver the securities to the buyer, and staff did observe spikes in fails to deliver in GME. However, fails to deliver can occur either with short or long sales, making them an imperfect measure of naked short selling. Moreover, based on the staff’s review of the available data, GME did not experience persistent fails to deliver at the individual clearing member level. Specifically, staff observed that most clearing members were able to clear any fails relatively quickly, i.e., within a few days, and for the most part did not experience fails across multiple days.

Question: How the fuck do you (a) short GME public float at least 226% (outstanding float > 100%) along with having the short interest later drop to < 10-15%, (b) not close the overwhelming majority of your naked short positions, AND (c) "clear fails relatively quickly" or "not experience fails?" (You cannot short insider shares as far as I know.) This series of events is literally impossible because any share above 100% of the public float is a phantom share and would fail to deliver for sure . . . unless you . . .

Answer: Deliver

I got a small refresher after a couple yrs at a mediocre company, and around the time of my 4 year vesting, it felt like having to re-negotiate your job from scratch.

I left the job for a new one with much higher pay overall. Never stayed in a job more than 4yrs.

Is it normal at MANGA companies to give a competitive refresher after 4 yrs? Or is it better to keep asking for more and more equity every year? I don’t want to want to leave my job after 4yrs by getting the equity piece wrong after a few yrs in

I read this comment on the sub:

> Amortization is just a fancy word for paying down the principal every month through your regular mortgage payments. These days, this is probably the best way to make money from your properties. With interest rates so low, and loan terms so good, I'm seeing between 5% and 15% equity build up per year on my investment through principal pay down. Even if you ignore the other benefits of owning real estate, the amortization itself beats the stock market for me.

I don't quite understand how the principal mortgage payments could be considered a form of return. The amount of money you have is still the same, just in a different form (property instead of cash). So your wealth or equity hasn't grown in any way? If someone could explain this to a noob like me I would really appreciate it.

quero saber se eh possivel chegar nos 120k ano ou não do brasil.

I hope the Sub will forgive that this borders on politics, but is a way to get good rum to all our Sub members!

This bill, the USPS Shipping Equity Act, introduced to the US House of Representatives this summer, would allow the Post Office to deliver alcoholic beverages. They have been prevented from doing so by law since 1909. The bill has bipartisan support, and would help save the cash-strapped Post Office.

You can read a 1-page white paper here: https://www.ncsla.org/pdf/news/One_Pager-USPS_Shipping_Equity_Act.pdf

You can read the official wording here: https://www.congress.gov/bill/117th-congress/house-bill/3287 In the lower right of the grey box on that webpage is a link to directly contract your Congress Member.

Current mortgage is $775 a month and 13 years remaining. Refinance offer would leave me with $30,000 in hand, and a $570 monthly payment for 20 years...

If I had the $30K in GUSD for the 13 years it would be worth $85,420. At that time the refinanced loan would have $53,979 remaining, So I could pay it off and have a nice chunk of change left over... Not to mention I would of been paying $205 less the entire 13 years saving roughly $32k....

I smoked a lot today but I cannot find the downside here... I mean other than GUSD rates may lower over time...

Hello - I am looking for some advice, I have purchased a home in Montreal in 2015 and over the past few years we all know what happened with real estate.

We purchased for 420k in 2015 and have put approx 150k in upgrading our home and a conservative estimate for the house is now worth approx 1.2mm. We have 490k left on our mortgage.

We were thinking about selling the house, taking the equity and purchasing land off island and building a custom house to our liking. The goal would be to try and be mortgage-free with the custom house.

Has anyone done something like this before or has any suggestions on what to do with all this equity? Ive also read about Smith Maneouver as well but not sure if I have the tolerance for that type of risk? Not sure but I want to make this work for me.