• Wealthy Joe Weekender, 10/20/2018

    Look, losing money is never an easy thing.  But stay the course.

  • Is Tesla A Buy?

    One of the most covered, and controversial, companies on the market is Tesla (NASDAQ: TSLA).

    To many people, Tesla is a car company.  But to others, it’s a technology company at the forefront of artificial intelligence, battery storage, and robotics.

    One of the best resources for investors is Ark Investment.  In my opinion they are a must-follow if you are interested in disruptive innovation.

    Here is a recent article that makes a compelling case to buy Tesla…

    https://ark-invest.com/research/tesla-through-the-lens-of-apple

     

     

     

  • A.B.B. – Always Be Buying!!!

    Good morning, investors and investors-to-be!

    Here’s a snapshot of yesterday’s action in case you missed it.

    Screen Shot 2018-10-17 at 5.56.40 AM

    I cannot say this enough: you have to buy when the market looks scary on the down side.

    I know it feels very scary.  But you must do it.

    Otherwise, you will miss days like today.

    Even if the stock continues to fall, don’t worry.  It will come back!

    Haven’t started investing yet, please pick up a copy of my short beginners’ guide, The Stock Market is For Everyone.  Everyone needs to be in the market.

    Until next time!

  • The Future Of TV Is Streaming!

    So…Netflix (NASDAQ: NFLX) reported earnings after the market close today, and blew the estimates away.

    In the third quarter, Netflix added 6.96 million new subscribers. The company’s estimate was 5 million, and analysts were looking for 5.28 million.

    Netflix has a total of 137 million subscribers.  There are 7 billion people on the Earth, and if only half have Internet capabilities (and that number is rapidly growing!) that leaves us with 3.5 billion+ potential subscribers, still!

    I know this sounds crazy, but Netflix STILL has tremendous growth ahead.

    Streaming is definitely the future.

    Check out this article: https://ark-invest.com/research/netflix-largest-us-tv-network

    Until next time!

  • Birthday Bonanza, Part 7

    Good morning, all!  This is the seventh installment in my series about how to set your child up for wealth by investing $1000 at the time s/he is born.

    When it comes to investing, the focus is always on the future.  

    Sure, there are companies that have been great investments over the past 20 years, but we are only interested in the future.

    So look for companies that are poised to do well over the next 20 years of your child’s life.

    I would probably avoid companies that have been around since the Industrial Revolution.  These companies may do well, but it is unlikely that they will be the leaders going forward.

    Here are some industries and investment themes you may want to consider.

    1) Artificial Intelligence (Deep Learning)

    2) Robotics and Automation

    3) Genomics

    4) Mobile Payments

    5) Blockchain Technology

    6) Energy Storage

    7) Gaming

    8) Cloud Computing

    9) E-Commerce

    The guiding principle here: Invest in the future – for your child’s future!

     

  • Don’t Be Too Quick To Sell!

    On one of the podcasts I listen to, I recently heard an interview with a successful stock picker.  He was telling an oh-so-familiar tale about his biggest investment mistake.

    He bought Amazon in 1998, and sold it for a 30% profit.  He then bought it back again in 2002…only to again sell soon after.

    Had he held on to his investment both times, he said, he could retire today.

    I know of another investor that left at least $2,000,000 on the table because he sold Netflix way too soon.

    Identifying the right company is important.  But having the temperament and the patience to hold over decades is how you make a fortune!

  • The Wall Of Worry Will Continue To Climb!

    “Wall of worry”?  What’s that?

    A wall of worry is when the market advances exponentially over a period of time, defying so-called conventional wisdom.

    The wall of worry has watched the Dow go from 22,000 to almost 27,000 over the past five years.

    Today, we are still adding bricks to this wall in the form of a trade war with China, rising interest rates, higher wages, emerging market instability, and a bull market in its late innings.

    So…what is an investor to do?

    Here’s something very few people are talking about:

    What if the bull market didn’t start until 2016?

    What if we are, in fact, at the beginning stages of one of the greatest bull markets in history?

    On the other hand, I have seen commentary from some of the best investors on the planet who believe the easy money has already been made.

    They may be right.  But what if they’re wrong?

    If they’re wrong, a lot of people are going to be caught off guard and scurry to get back into stocks, pushing the market much higher.   In that case, we could see the Dow triple over the next five to ten years.

    If they are right, it makes no difference to me.  Because I’m invested for the long haul.  And so should you be.

     

  • Wealthy Joe Weekender for October 13-14, 2018

    We’ve seen a lot of commentary in the media this week regarding the “turmoil” in the stock market.  In this YouTube video, I’m attempting to do my part to balance the conversation…

  • How Often Do Markets Decline?

    Depending on how old you are, you may have only experienced a time when the stock market went up.  For people that may have started investing in 2010 or afterward, this week might be very scary.

    However…market sell-offs like this one are a very healthy and necessary part of the stock market.

    Since 1900, the Dow Jones Industrial Average has fallen 5% or more at least three times per year.  It falls 10% or more approximately once every year.  It declines 15% every two years, and a 20% decline happens every three and a half years.  The average duration of each decline is less than a year.

    Overall the market rises three out of every four years.

    This is why you have to stay invested and not try to time the market.

    Have a good weekend!  If you haven’t yet, please pick up a copy of my book, The Stock Market is For Everyone.  It’s a short read that will provide beginners to the stock market with all the information needed to get started investing.  If you know someone who isn’t invested yet, pick up a copy for that person!  With stock prices lower, now is a great time to pick up those first shares.

  • Is It Safe To Buy Again?

    The answer to this question is:

    You should always be buying!!!

    Let’s say, for example, you decided to invest $100 a month.  This technique is called dollar cost averaging.

    By doing this, you will buy when prices are high, as well as when prices fall.

    Over time, as your investment rises in value, the growth you experience can be exponential!  This is because you were buying when markets were down – and that can supercharge your growth.

    If you are like me, and your time frame is 10 to 20 years away…and definitely if it is longer than that…you shouldn’t be the least bit bothered by this sell-off.

    To answer the question “Is it safe to buy again?”

    My answer is yes, yes, yes!