So, Steemizens, What's Your Stocks Game?
While still working on bringing my long lost fiat to Israel, I found a loophole to partially bypass the crypto boycott issued borderline illegally by the local banks.
Basically I'm depositing some of the fiat directly into an Israeli investment house (commonly known as a stock broker), buying a bunch of stocks, bonds and ETFs, and then safely depositing the income they generate into my checking account.
Oddly enough, the banks don't care how a person acquired said stocks, as long is he\she funnels only the dividends they generate, and not the principal used to buy them.
But, what stocks should I (and consequently Steemizens in general) buy?
For those who manage their own portfolio, how do you choose want to invest in, and ,equally important, for how long to HODL?
I tried that Motley Fool Stock Advisor for a few weeks. But their recommendations seem... unwise...
If I want to put it delicately.
Too many of their 'favorite' stocks are simply overpriced businesses, that are expected to earn more money in the future... meaning they're still overpriced, but slightly less so...
I'm sorry, but I don't follow that logic.
A good strategy might be finding stocks with better than average (S&P 500 average, for example, or better than their respected sector, if possible) P/B, P/S, and P/E, or at least two of which.
Obviously the payout ratio matters as well. I wouldn't touch a company that pays more than 65% percent of its earnings as dividends. While nothing makes me happier than seeing my balance grow every quarter, I still want the business I invest in to have a better economic cushion, when the inevitable hard times come.
I think www.finviz.com does a great job separating the companies with bad financials, from those with good ones. But I don't think it's really enough to pour money into one or another stock. Solely focusing on current fundamentals.
So let's do some brain storming, folks. If you had (or actually have) 50,000$ to invest in the stock market.
Which publicly traded companies would you choose, and why?
*Interesting comments will get some nice upvotes ;)
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I’m diversified into tech, energy, and healthcare. I have a few things in food and real estate. That EXAS was my proudest buys and calls last year.
As dumb as it sounds, I also dipped my toes into F, GE, etc. simply because Uncle Sam most likely won’t let them die.
I’m in building phase right now, so I’m not selling or trading aggressively.
I think that the tech companies will take over the automotive industry in the next decade or two.
Tesla, Apple & Alphabet will probably be the first movers in the completely autonomous vehicles, while GE, F and the others will either have to license the software, or bet their entire future on developing their own iteration of algorithms for self-driving cars. Something I'm unsure they will be able to do effectively enough to stay relevant.
It will be interesting to see how they evolve within the next decade.
And just to add. I read somewhere that Ford is planning on producing self-driving cars by 2023.
As for relevancy, I have no idea. I assume their assembly lines will always be relevant given they were used for war in the past.
Search dividend kings and dividend aristocrats. From all I know those are the best stock dividends around and that is what I would go for, most are established companies almost too big to fail. Stocks like mcdonalds, pespico, AT&T, etc... are in the aristocrats and kings. But I would feel safer by buying a vanguard dividend fund, at least I would know that they were always on top of the stocks and that they would sell them and buy others if anything happened.
Oh, yeah. I completely forgot about those.
Gonna dive into a chart over there, hidden gems should be present.
Although consumer staples isn't where I would put my money, since it's a saturated market, with little to no growth prospects. And companies like AT&T make a decent chunk of the earnings from cable TV, earnings that are bound to shrink as Netflix & Amazon Prime Video gain traction internationally & in the US.
Maybe once I pick my stocks, I can make another post about it, to keep things interesting around here.
Yes, I do see what you are talking about, it's a saturated market and most companies are near their growth potential limit...
If you want growth potential maybe chip manufacturing, AI and water dividend stocks would be the best:
Chip manufacturing - Nvidia and AMD, both of these are going to start using 3D printers to print chips. In the near future everything will have chips, our clothes, our beds, our robots, our self-driven cars, our drones, etc... AMD has no dividend but Nvidia provides 0.37% dividends (i think they changed this last year because of the huge BTC mining GPU demand)
AI - IBM , YEXT and BAIDU are doing incredible things in the AI sector, and IBM even has crypto connections with Stellar and other blockchains. IBM - 4.5% dividend , YEXT and BAIDU have no dividends. Nvidia is also improving in the AI sector.
Water - With the huge increase in population we will need better ways to remove salt from water, I can't recommend any dividend stocks in this sector since I don't know much.
I'm more into dividend cryptos atm, which I can help you find some strong ones with really good FA, partnerships and use cases.
With all this said, I wouldn't be buying stocks atm, the stock market doesn't feel very safe, and I heard a large % of the student loans default in 2023, so I don't feel safe in buying any stocks, I would rather buy cryptos with strong FA which, imo, are probably going to grow more than the stock market.
I definitely have a lot of stocks to look into.
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For long term, graphene looks like a good sector to get into, however, major players are still yet to surface.
Samsung, despite being well known for their phones are one of the main producers of semiconductors/superconductors, screens, and ram which are all important in device manufacture. On top of that, they're knee deep in crypto.
Lastly, steemit Inc, obviously 😂
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I remember all the buzz about it from back a few years ago. Gotta look into it, mostly whether potential winners & losers can be estimated at this point.
I think buying stocks after a 10year bull run is probably not the smartesrät move. I would wait for the next big corection in the market and than diversify into different companied from many sectors. Buy cheap and sell high not the other way around.
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Then, the most important thing would be to have liquid funds when opportunity arises.
It’s awful when everything is down and you find yourself without the capital to pick things up.
I did convert most of my stocks into bond ETFs after the last correction. Taking seriously the warnings of analysts about frighteningly high multipliers (all those fancy P/Xs). But when I checked what the multipliers were before & during the last housing prices, I realized I was played the fool by all those talking heads.
If a stock's fundamentals are good, and are expected to get even better, it'll probably still be a good buy, since there doesn't seem to be any reason for a recession in the near future (next 2-3 years). And Stocks can rise quite a lot in that time.
But I'm still going to keep about 30%-50% of my funds in low(ish) volatility assets, to convert them to stocks after a bear market persists.
One thing I hadn't looked into enough, is the claim that corporate debt is at dangerous levels, which supposedly can expedite a downturn if interest rate rise, or consumer\business spending decreases too much.
I have personally gotten out of the financial markets as I expect continued volatility until the next cycle is determined but if you would like an onchain option, @carrinm here posts daily ideas for almost any strategy.
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If he's any good, he should be on Seeking Alpha, Tip Ranks or both. He churns out a whole lot of content. If his calls are good, he can make serious $$$ outside of STEEM, which he seems not to be doing.
There is no simple answer when it comes to picking stocks. Everybody ends up developing strategies that fit their personalities. If goal is a long term investment I would go with companies I like and trust. However, I perefer short term trading over long term investment.
I think Amazon will going to grow more because of our commercialized world today as people really are relentless in buying stuffs even though they don't needed it @imacryptorick
Conversely, more and more people are adopting the minimalist approach. And several consumer related psychological biases are becoming common knowledge.
Think FOMO, dishonest pricing tactics and mental accounting. As people become more aware of their psychological shortcomings, most of them will be able to better overcome them, thus reducing impulsive, and irrational buying...
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@imacryptorick, I am not in Stocks. I am really bullish about Crypto and just holding Steem at this moment. Good wishes from my side and hope that your Stocks will give effective returns to you.