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    8. Euro reaches parity with dollar

      Text 304 words
      I didn't find any great links so made this a self post. Here are some just from Google but they mainly just say what's on the tin:...

      I didn't find any great links so made this a self post. Here are some just from Google but they mainly just say what's on the tin:

      https://www.bloomberg.com/news/articles/2022-07-11/euro-plunges-to-fresh-two-decade-low-as-dollar-runs-rampant

      https://www.cnn.com/2022/07/11/investing/euro-dollar-parity/index.html

      https://www.reuters.com/markets/us/safe-haven-dollar-stands-tall-inflation-energy-jitters-2022-07-11/

      As of 5:00 pm Eastern on July 11th 2022, if you check the exchange rate, the dollar is now 1:1 with the Euro.

      In terms of effects, it seems complicated. Europe has a decently export heavy economy, unlike the US (for which only 10% of its GDP comes from manufacturing), so a weak Euro will help that.

      However, it will make all imports more expensive. This is another supply shock, as most of continental Europe already faces heavy issues with regards to energy given the sanctions on Russia, one of the primary energy providers.

      So it will certainly make domestic inflation worse (note: domestic inflation and the value of the currency on FX are different things - although they can mutually affect each other). If nothing else, the LNG Europe is buying from the US will be more expensive. The ECB has struggled to raise interest rates to fight inflation given Spain and Italy's high debt levels, and this won't help.

      Winter could potentially be very, very bad.

      For the US, a strong dollar is probably fine. The US is not a heavy export country, and the dollar surge helps cement reserve currency status from which the US gets a number of benefits. A slowdown in exports will also help tamper inflation.

      The pound for the most part has tracked with the Euro, brexit or not.

      17 votes

    33. Some companies like vanguard and blackrock/ishares exclude losing companies from price to earning ratio calculations, where can I find reliable pe numbers?

      Ask (advice)
      For example Vanguard Russell 2000 Growth ETF shows a pe ratio of 19.5 on it's portfolio page, but etf.com (which reportedly calculates PE ratio in the "logical" method we probably all think of)...

      For example Vanguard Russell 2000 Growth ETF shows a pe ratio of 19.5 on it's portfolio page, but etf.com (which reportedly calculates PE ratio in the "logical" method we probably all think of) says it's 236.89.

      There is also the russel 2000 etf, which shows 14.3 on vanguard and 43.63 on etf.com (I saw no clear indication on the vanguard website they are removing losing companies), ishares does say that for it's etf.

      I want to know the PE ratio because economic bubbles (like the dot comm bubble and japan stock market bubble) were characterized by very high pe ratio, and there is historical evidence low pe performs better (probably because of the optimism bias).

      I can use etf.com, but would like another source to validate etf.com is reporting correctly .

      11 votes

    37. PSA: Venmo just changed its terms, now including a more draconian arbitration requirement, requiring opt out by 6/22/22

      Text 303 words
      I have mixed views on arbitration, it does lower costs, but arbitrators rarely see things from the consumers' perspectives. Here are the instructions for opting out, which I will be recommending...

      I have mixed views on arbitration, it does lower costs, but arbitrators rarely see things from the consumers' perspectives.

      Here are the instructions for opting out, which I will be recommending to all my friends (followed by a link to the form):

      You can choose to reject this Agreement to Arbitrate (“opt-out”) by mailing us a written opt-out notice. For new Venmo users, the opt-out notice must be postmarked no later than 30 days after the date you accept the User Agreement for the first time. If you are already a current Venmo user and previously accepted the User Agreement prior to the introduction of this Agreement to Arbitrate on May 23, 2022, the Opt-Out Notice must be postmarked no later than June 22, 2022. You must mail the opt-out notice to PayPal, Inc., Attn: Litigation Department, Re: Venmo Opt-Out Notice, 2211 North First Street, San Jose, CA 95131. For your convenience, we are providing an opt-out notice form you must complete and mail to opt-out of this Agreement to Arbitrate. You must complete this form by providing all the information it calls for, including your name, address, phone number, Venmo user name, and the email address(es) used to log in to the Venmo account(s) to which the opt-out applies. You must sign the opt-out notice for it to be effective. This procedure is the only way you can opt-out of the Agreement to Arbitrate. If you opt-out of this Agreement to Arbitrate, all other parts of the User Agreement will continue to apply. Opting out of this Agreement to Arbitrate has no effect on any previous, other, or future arbitration agreements that you may have with us.

      The form:

      https://help.venmo.com/hc/en-us/articles/360062640153

      22 votes