Sorry…We Don’t Accept Cash!

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The “war on cash” is very real.

I am starting to hear about more and more retailers no longer accepting cash.  In fact, some companies, such as the restaurant chain Dig Inn pictured above, are making it against their policy to accept cash as payment.

I also look at my own spending habits for example.  I have reached a point in my life where I hate using cash.  I use cash for three purchases: to do laundry in my building, to get my beard shaped at the barber, and to get taps put on my shoes.  Other than that, I never use it.  I would bet that your list of expenses you absolutely must pay in cash is similarly short.

The trend towards a cashless society is on the horizon, and banks are taking notice.

Want to invest in this trend?  If so, I think Square (NYSE: SQ) would be a great choice.

Square is the innovative merchant services company serving small to midsize businesses.  If you have made a debit or credit card purchase from a smaller vendor, signed using your finger, and had your receipt texted to you, chances are that the transaction was processed using Square.

The stock was up 44% in 2018, and that’s after being down 38% from its 52-week high.  Square is taking market share from banks with its Cash App, which allows people to transfer money to one another via their phones.  The company recently applied for a banking license.

Square represents the future of financial payments.  It’s definitely on my watch list, along with these other stocks.  It should be on yours as well!

Talk to you tomorrow.

Disclaimer/Disclosure Statement: Information in this article is not intended to be a recommendation to invest in any stock.  Rather, it is presented for readers’ education and consideration when making their own investment decisions.  The author has no position in any of the stocks mentioned in the article.

*  The Stock Market is For Everyone, Eric Milton’s short guide to stock market investing for beginners, is available in e-book and paperback formats.  If you like what you see on this blog, we hope you’ll take a moment to purchase and read the book, let us know what you think via a blog comment or Amazon review, and share this information with others!  Thank you. *

 

How To Make 140 Times Your Money!

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Last week I was listening to a story on one of my favorite podcasts.

The host of the show was telling a story of how his father bought $50 worth of stock for him when he was 14, roughly 30 to 35 years ago.

What’s fascinating about this story is that he hadn’t known his father had purchased this stock until recently.  His older brother was going through some old documents, and stumbled upon a brokerage statement that named him the beneficiary of these shares.

When he read the statement, he saw that the cost basis, which is the amount that was initially invested in the stock was $50.  He was blown away at the balance of the account after all these years, which was $7000!

The name of the company his father invested in is Exxon Mobil (NYSE: XOM).

The return on that $50 is 140 times his father’s initial investment.

This is absolutely phenomenal!

Investing is quite simple in this regard…

Find a great company to invest in, and never sell the stock over the course of decades.

*  The Stock Market is For Everyone, Eric Milton’s short guide to stock market investing for beginners, is available in e-book and paperback formats.  If you like what you see on this blog, we hope you’ll take a moment to purchase and read the book, let us know what you think via a blog comment or Amazon review, and share this information with others!  Thank you. *

 

 

My Top Stock Pick For 2019!

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My top stock pick for 2019 is a company called Invitae (NYSE: NVTA).

Invitae is one of the leaders in molecular diagnostic testing.

What this means in plain English: through your primary care physician, you can have your entire genome sequenced to determine which diseases you are at high risk of developing.

Invitae is a small company with a market cap of $879 million.

Its mission is to bring comprehensive genetic information into mainstream medicine to improve health care for billions of people.

Invitae wants to aggregate the world’s genetic tests into a single service with higher quality, faster turnaround time, and lower cost.

Invitae’s growth has been off the charts.  In the 3rd quarter of 2018, the company reported an increase in revenue of 106%, driven by 95% increase in volume.

Invitae ended 2018 up 40%, which was great given the carnage the market experienced the last 3 months of the year.

Genomics will play a huge part in in the future of health care.  And Invitae will be one of its leaders.

Invitae is not for the faint of heart, because it can be very volatile.  However – it is a stock with tremendous growth potential that you should definitely watch.

Disclaimer/Disclosure Statement: Information in this article is not intended to be a recommendation to invest in any stock.  Rather, it is presented for readers’ education and consideration when making their own investment decisions.  The author is long NVTA.

*  The Stock Market is For Everyone, Eric Milton’s short guide to stock market investing for beginners, is available in e-book and paperback formats.  If you like what you see on this blog, we hope you’ll take a moment to purchase and read the book, let us know what you think via a blog comment or Amazon review, and share this information with others!  Thank you. *

What Happened In The Market Today?

If you haven’t already heard, the stock market had a massive rally today.

The Dow was up over 1000 points, which is the biggest one-day gain in history.

The S&P 500: up 4.96%.  NASDAQ: up 5.84%.

What was the reason for the move higher?

It was something called an oversold bounce.  When stocks go down at a fast rate, as they have over the last three months, they become oversold, and will rally in the way we’ve seen today.

Will this move last?  Unfortunately my answer is no, in the short term.  I’ve been watching the market since 1995; right now, we are still in a down trend.  Rallies like this almost never last, but they are part of the process.

I’m not trying to discourage anyone – far from it! –  but I want you to understand that the sell-offs are not over.

Now…if Trump announces that the trade war with China has been settled, all bets are off!

However, expect more selling in the immediate future.

*  The Stock Market is For Everyone, Eric Milton’s short guide to stock market investing for beginners, is available in e-book and paperback formats.  If you like what you see on this blog, we hope you’ll take a moment to purchase and read the book, let us know what you think via a blog comment or Amazon review, and share this information with others!  Thank you. *

Let Your Stomach Be Your Guide!

Times of adversity are when we learn things about ourselves.

If you own individual stocks, you’re learning something about yourself right now.

The question you should ask yourself is: “Can I stomach owning individual stocks?”

Are you losing sleep at night thinking about the stock market?  Are you feeling physically ill, in a literal sense, when you look at your brokerage account?  If you answered “yes” to either of these two questions, you might want to go with an index fund.  It won’t make you immune to some pain, but it’s not as volatile as owning, say, Roku (NASDAQ: ROKU).  I talk about index funds in The Stock Market is For Everyone; they are one of the best vehicles to wealth there is!

As we approach a new year, this is something you definitely want to address.  Please only do what you are able to live with.

I happen to have a very high risk threshold.  It’s just the way I am, so it works for me.  Don’t get me wrong – I don’t like losing money any more than you do.  But I can sleep at night, and I can stomach the volatility.  That’s not for everyone.

Do what’s best for your peace of mind.  Wealth without health is, for all intents and purposes, useless.

*  The Stock Market is For Everyone, Eric Milton’s short guide to stock market investing for beginners, is available in e-book and paperback formats.  If you like what you see on this blog, we hope you’ll take a moment to purchase and read the book, let us know what you think via a blog comment or Amazon review, and share this information with others!  Thank you. *