KABOOM for the R2K and mid-caps. So much for Afghan and the Feds signaling that the tamper is coming soon.
OT: Stock and Investment Thread
- Thread starter RU05
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I own SOFI. Still bullish, but this is a difficult period.
OTOH a bright but strange day. For one account my biggest dollar gainer was $ATER and biggest loser was $SE. I am very long $SE, but only hanging on to $ATER as an object lesson about throwing good money after bad (aka next time I will fight myself and NOT try to catch a falling knife). At least with SOFI, I haven't compounded my losses.
OTOH a bright but strange day. For one account my biggest dollar gainer was $ATER and biggest loser was $SE. I am very long $SE, but only hanging on to $ATER as an object lesson about throwing good money after bad (aka next time I will fight myself and NOT try to catch a falling knife). At least with SOFI, I haven't compounded my losses.
I really thought there was going to be a taper tantrum today. Who really knows what the market reacts to on any given day, but I guess today's income report put investors in a good mood.
$AFRM has been another brutal hold (though it has been on a minor upswing recently). I'm about to be vindicated for hanging on.
Affirm shares soar more than 40% on news of Amazon partnership for buy now, pay later
Is your ATER a candidate for tax loss harvesting? As a long-term, buy and hold investor I really can’t tax loss harvest but it looks like a fair number of people in this thread trade more frequently. Just be sure not to trigger a “wash sale” if you repurchase but it could be an strategy for this or other investments that didn’t pan out .
A good idea, but the $ATER investment is in an IRA.
In regards to the fintech space, money should be spread around multiple companies. Established ones like PYPL, SQ have a big lead. Niche companies that are in the BNPL (buy now, pay later) space are having their moment. There will be more winners and some losers in other niche spaces as time goes along. SOFI has a good chance to be a winner but they need a product which separates them from the group. I am most heavily invested in SQ, PYPL. I have a smaller and equal position in SOFI, AFRM, UPST, FISV, MELI, SHOP. I have a much smaller position in CUEN, PSFE, GDOT, GPN, BILL and a few others. The smaller positions are in companies that maybe more of home run swings.
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I’d invest in the rurahrah000 fintech fund of those companies as soon as you open it
This is a great post. In the name of diversification in this space, I'd also suggest a couple of ETFs as a easy way to get into fintech - ARKF or FINX. In addition to the names mentioned, I'll also note SE.
Hold ARKF in two of our accounts. Very happy with the stock mix.
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The issue with those two funds is that they are not pure FinTech plays. ARKF has a lot of stocks that are not really FinTech (SNAP, FB, PINS, OPEN etc). Cathie also has a lot of China stocks in there which I am not a big fan of.
She has 4-5 in there. Maybe not in the top 10 holdings, but unnecessary to hold any China stocks at this time.
She has a more nuisance and smarter POV on China than your simplistic notion. Watch and learn:
First of all, I like Cathie, but I don't agree with her position that investing in companies that are doing things that the Chinese government "likes" are the winners. The Chinese government has made it clear that they want shared prosperity and that runs counter to capitalism. This would limit the potential ability of any Chinese company to expand to a level of Apple, Tesla, Amazon, Microsoft, etc.
CW has been very deliberate with getting out of most Chinese companies, except for a few that seem to be aligned with the gov goals and objectives. This is very reasonable. China can go only so far with this shared prosperity without tanking their entire economy. As part of a fund, modest exposure is fine.
Did another round of stimulus checks go out? GME and AMC are both up around 30% over the last week. And, unrelated to AMC, the Chinese have essentially closed their videogame market in the last 48 hours. "If God had not wanted them to be shorn he would not have made them sheep."
Yeah, this helps explain the new/young investor mindset:
Thinking about a possible investment strategy - timing the purchasing of equities as the companies move to a new index. Purchased small lots of $APPS between January and June, and the stock has tanked.
Until today. Up 18% today! Woo hoo! Why? Adds to the S&P Midcap 400.
Does anyone know websites that track the stocks that are likely to be added to major indices?
Until today. Up 18% today! Woo hoo! Why? Adds to the S&P Midcap 400.
Does anyone know websites that track the stocks that are likely to be added to major indices?
Yeah, I saw that. More use social media for investment decisions than financial advisors, investment websites or new sites. So as opposed to the Peter Lynch or Benjamin Graham Schools of Investing it's now the Middle School Lunch Room School of Investment.
With all the BS Internet posts/articles/pumpers/etc. these folks have no clue what they are doing other than riding momentum swings - which works great in a market that keeps going up but the second the market retreats and the party is over it’s going to get ugly.
When we enter a bear market and there no more stimulus money given out, the momentum investing particularly in poorly run companies will abate.
I would love, love, love a repeat of March 2020. You can make a lot of money during those irrational/emotional corrections.
That’s about the only thing we probably agree on - when it gets that bad gotta buy hand over fist. I always remind myself that the politicians have their fortunes tied up in the stock market just like us and they will never let it fail. My biggest regret is that I didn’t buy more in March 2020 but the market snapped back quicker than anyone imagined. Should get entry point opportunities once the rent forbearance crap ends, stimulus checks run out, and housing bubble starts to deflate. New investors don’t know what a correction feels like.
Easy to say when you (and I) won't be getting a margin call on the securities you bought with unemployment and stimulus checks.
Corrections, bear markets are healthy for the markets as they allow for new investors to enter the market. In the long run, markets always go up, but corrections are needed to recalibrate the valuations.So desperate for a bear market! LOL.
I wonder how often corrections lead to new investors entering the market. Money on the sidelines re-enters the market, I do think that happens, but I don't think potential new investors are sitting there waiting for a correction. Most people would tell you that's not a great strategy anyways.
Now there were certainly a ton of new investors who entered after the big dip last spring, but I think that was a very unique situation.
Didn't the article you posted the other day note that some advisors are using social media? So I don't think it's accurate to say all social media stock advice is bad advice.
Now certainly there will be some bad advice on social media, but we also saw well respected long time investors like Jeremy Grantham saying we were in a bubble last June, and then again in the fall, and then again in January. So bad advice can be found from both new and experienced investors alike.
Actually I posted the same article as Aldo, so no. No, all social media advice is not bad. Just like all lottery tickets aren't losers.
Actually you posted a different article, and yes it does.
“On social media, everybody can jump in, regardless of who they are, what their background is, what their experiences are,” Winnie Sun, co-founder and managing director of Irvine, California-based Sun Group Wealth Partners.
Sun is one of those who has embraced social media. She does a live stream every day on several platforms, including LinkedIn, Facebook and Twitter."
Did you get past the headline on either article? Then again, the headlines weren't even the same.
Keep saying bubble, bubble, bubble, bubble.....and one day the blind squirrel may finally find that nut.
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When most people say "new investors", it refers to investors that did not previously hold a stake in the company, not necessarily folks who have never invested before. For example, about 1 year ago when TSLA corrected from ~$600 to ~$350, a lot of my buddies who had missed the previous run up decided to jump in. New investors in TSLA that will probably hold the stock for many years.
There is always a bubble. Sometimes it is in certain sectors and sometimes in the entire stock market. Sometimes the bubble bursts and then a new bubble starts. Most often, the bubble slowly deflates and stabilizes.