OT: Stock and Investment Talk
- Thread starter RU-05
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We buy every Monday (401ks) and every other Friday (brokerage/E-Trade). However, we normally carry some cash in our E-Trade account to take advantage of dips from time to time.
But today is a special day! Happy Annual Bonus Day!!!!! Technically bonuses, but whatever. Huge money just hit the account. We don't need to add to our cash reserves, so what should we do:
A. Go all in today across our allocations?
B. Dollar cost average it in over the next few months?
C. Buy a few BTCs? 🥳
Probably will do a combo of A and B (lean to B), but C would be fun! LOL.
🚀🚀🚀🚀🚀
But today is a special day! Happy Annual Bonus Day!!!!! Technically bonuses, but whatever. Huge money just hit the account. We don't need to add to our cash reserves, so what should we do:
A. Go all in today across our allocations?
B. Dollar cost average it in over the next few months?
C. Buy a few BTCs? 🥳
Probably will do a combo of A and B (lean to B), but C would be fun! LOL.
🚀🚀🚀🚀🚀
How to invest a lump sum of money | Vanguard
How to invest a lump sum of money--all at once or over time using dollar-cost averaging.
investor.vanguard.com
Most research says you are better off investing all at once rather than DCA. Here is one link. Are you at your desired asset allocation? I’d deploy it as per your written Investment Policy Statement. So if you are at target, deploy across all groups as per AA. If you are not at target, use to rebalance.
+1How to invest a lump sum of money | Vanguard
How to invest a lump sum of money--all at once or over time using dollar-cost averaging.
Most research says you are better off investing all at once rather than DCA. Here is one link. Are you at your desired asset allocation? I’d deploy it as per your written Investment Policy Statement. So if you are at target, deploy across all groups as per AA. If you are not at target, use to rebalance.
I know that from a while back (even posted this info last week). I believe I originally saw this in a Kiplinger's article a few years ago. The market goes up, so you normally miss out when waiting.
Essentially, all of this money will hit out E-Trade brokerage account (since our other retirement accounts are 401ks, IRAs, and either old or maxed out). I have a modest amount of rebalancing to do. I will likely dump half in today and add the other half to our normal biweekly purchases.
I’m lifting the moratorium on talking TSLA. The 30% free fall is exactly as predicted. Where are all the TSLA bulls now? And, I’m NOT suggesting that it isn’t a good long-term play. But, those that argued against the short term bubble should probably stick to the threads about football.
I should’ve listened to @BellyFullOfWhiteDogCrap on shorting it 😀. I closed out my puts too early but hard to complaint the return I had over such a short period.
Bottom? Two-thirds of my stocks are up today and I am only 2% off my all time high. But for the high flyers, I see a lot less crowing. Not sure if they hit Cramer’s five stages of grief yet, but getting there.
Too bad, but glad you made some money.
I would look into a long position in a few months.
Perhaps some of the emotional traders should read and understand all of what Powell said. It was very positive. Market-friendly policies will remain in full force for the foreseeable future (and at least all of 2021).
Or, maybe people have realized that the crazy unsupported equity prices were way out of whack.
People have been rewarded buying the dips over the last decade. A sense of extreme overconfidence in doing so is readily apparent. But the tough thing to do is to buy as close to the bottom of the dip as possible. Lots of questions. Will the dip be over very quickly like last year's March swoon? Or will it last much longer. If you have a quick trigger finger, you could be buying at very rich multiples and not have the fresh powder to throw into the market at more attractive valuations. You can get stuck. Throw in job insecurity (especially for those of us in finance) during an economic decline, it makes it challenging to buy when everyone seems to be selling. Bottom line, if investing was as simple as some make it sound, we would all be very rich. The business cycle is not going away, govt actions can push the day of reckoning off, but eventually that day arrives as it has always.
Lots of amazing deals on the market right now. Buying season is fun! Amazon, FB, Exxon, Google, all way below fair market value as per Morningstar. I'm sure so are many others.
Why not just cut the middleman and buy TSLA?
Something to consider for the Ark fans. Might be better off buying a basket of the small cap names she holds rather than buying the fund.
There are increasing signs that ARK’s funds are facing capacity challenges. This is evidenced by the changing contours of its flagship fund’s portfolio and the market impact of its trading activity.
The complexion of ARKK’s portfolio has changed. Over the five years from July 2015 through July 2020, the average market cap of companies within ARKK’s portfolio never topped $10.5 billion, consistent with the team’s goal of finding under-the-radar companies that the market doesn’t fully appreciate. Since then, the fund’s average market cap has spiked, topping $20 billion in November 2020 and reaching over $35 billion in January 2021.
Much of the increase in ARKK’s average market cap has owed to rapid price appreciation among many of the smaller companies in its portfolio. But as assets have swelled, ARK has also begun deploying cash in more-established large-cap companies, a shift that is further changing the makeup of the portfolio. From Oct. 31, 2020, through Jan. 31, 2021, the fund initiated new positions in 10 companies. All but three of these companies had market caps greater than $30 billion at the time of purchase, and three--Novartis (NVS), PayPal (PYPL), and Baidu (BIDU)--are mega-caps with market caps of more than $100 billion. It appears the fund’s heft is at least partly responsible for pushing it toward owning larger names.
As its picks have posted big gains and it has added bigger names at the margin, small caps’ representation in ARKK’s portfolio has fallen. At the end of October 2020, 33% of ARKK assets were in stocks with a market cap under $5 billion; by the end of February 2021, those stocks made up just 14% of the fund. None of those stocks rose as a percentage of fund assets over that time period.
There are increasing signs that ARK’s funds are facing capacity challenges. This is evidenced by the changing contours of its flagship fund’s portfolio and the market impact of its trading activity.
The complexion of ARKK’s portfolio has changed. Over the five years from July 2015 through July 2020, the average market cap of companies within ARKK’s portfolio never topped $10.5 billion, consistent with the team’s goal of finding under-the-radar companies that the market doesn’t fully appreciate. Since then, the fund’s average market cap has spiked, topping $20 billion in November 2020 and reaching over $35 billion in January 2021.
Much of the increase in ARKK’s average market cap has owed to rapid price appreciation among many of the smaller companies in its portfolio. But as assets have swelled, ARK has also begun deploying cash in more-established large-cap companies, a shift that is further changing the makeup of the portfolio. From Oct. 31, 2020, through Jan. 31, 2021, the fund initiated new positions in 10 companies. All but three of these companies had market caps greater than $30 billion at the time of purchase, and three--Novartis (NVS), PayPal (PYPL), and Baidu (BIDU)--are mega-caps with market caps of more than $100 billion. It appears the fund’s heft is at least partly responsible for pushing it toward owning larger names.
As its picks have posted big gains and it has added bigger names at the margin, small caps’ representation in ARKK’s portfolio has fallen. At the end of October 2020, 33% of ARKK assets were in stocks with a market cap under $5 billion; by the end of February 2021, those stocks made up just 14% of the fund. None of those stocks rose as a percentage of fund assets over that time period.
I've made a nice gain on it and still like it so not selling it. So, no, I'm not late. Just wish that I had put more down on it but hindsight is always 20/20.
So after 10 months, it's now your turn to crow, have at it.
Shed pretty much all my speculative plays this week. Def took a beating the past week and a half, but after the mid day bounce I'm still in pretty decent shape.
Still holding some crypto's, so I'm not completely out of the speculatives. Interesting how much the miners dropped given BTC and ETH have held, but I guess that is not unsimilar to precious metals.
Will be interesting to see how the R2K will perform.
Still holding some crypto's, so I'm not completely out of the speculatives. Interesting how much the miners dropped given BTC and ETH have held, but I guess that is not unsimilar to precious metals.
Will be interesting to see how the R2K will perform.
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i have been doing great for 10 months, thank you. Just pointing out that only the speculators have been getting hurt. I responded to question whether someone wanted to call the bottom. The S&P is only 3% off the high and many stocks are having a solid year and haven’t been impacted. I’m an objective investor that isn’t interested in pumping my stocks and cheerleading like some people.
Many here have argued that the S&P is expensive. So back to the question to which you responded, maybe there is still a lot to give back?
I was never in favor of the moratorium in the first place. But given the plunge I can’t help myself.
Of course. I’m not anti-TSLA. I had to fight my strongest FOMO urges not to jump in during the climb. But, on a valuation basis, the stock still needs to drop considerably more for me to start buying, especially now that Musk added BitCoin risk to the investing equation.
As long as they keep the dividend (Dividends? On this board?????) it's not. They resisted pressure to cut it during the crash, so you were getting paid over 8% of the then stock price to hold on. But it hung around in the low to mid 40's most of the fall when the worst was over and today it went over 60. Even there the dividend is good.
I bought some TSLA today at 560, probably gonna sell by the end of the day for a nice day trade.
7-8% of their cash in BTC is risky? If BTC goes to $0, how would that affect Tesla's fundamentals? I'll answer....it wouldn't. For a guy that doesn't like to believe the media hype, you're sure buying into this tale.
I won’t debate the 7-8% because I’m approaching it from an optics perspective. BTC weakness will undoubtedly impact TSLA share price. How much - who knows...
For a business with the growth prospects of TSLA and the need to raise proceeds from the primary sale of equity to meet them, a $1.5bn discretionary purchase of BTC speaks to weak governance and suspect capital allocation.
If BTC goes to $0 doesn’t that mean TSLA lost $1.5B due to a cash management error? It would create massive turmoil for Tesla and Musk and could be the death-blow to Musk’s legacy. But, if BTC went to $0 everyone is screwed.
I’ve made a lot of money, and preserved a lot of capital, based on short term thinking. If you only think long term there’s no reason to read this thread. Just sock all your money away in investments and only check your statements during tax season.
You just TKR reverse jinxed it. We should all buy TSLA now.
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