We have been hearing this for years now. Lets hope it is now going to happen and that this is not just simply a PR announcement to placate shareholders that are tired of the company and their earnings being held hostage by China. Management needs to finally wake up....if for no other reason....to preserve their jobs. Apple looks to Southeast Asia, India as hedge against China difficulties https://finance.yahoo.com/news/appl...dge-against-china-difficulties-185416388.html For a company of this size and earnings power to be NEGATIVE in their stock for these time spans is a real indictment of MANAGEMENT: One month (-0.43%) Six months (-0.58%) YTD (-8.80%) One year (-0.17%) AND....to make it worse...MUCH WORSE...this is all happening during one of the greatest tech advances in history....AI. This company through extremely POOR messaging and obviously poor management decisions is squandering all the AI momentum that other companies have been seeing. I will continue to own the company....it is too great not to.....but they need to pull their head out and turn things around. I HOPE this statement is NOT some sort of pre-earnings damage control. I guess we will see on Thursday.
I like one little part of this article. Billionaire Investor Bill Ackman Has 100% of His $11 Billion Portfolio in Just 8 Stocks https://finance.yahoo.com/news/billionaire-investor-bill-ackman-100-075000142.html "What sets Ackman apart from his hedge fund colleagues is that Pershing Square owns large stakes in just eight to 12 companies and generally holds them for years. It focuses on high-quality, large-cap, North American companies with limited downside and predictable, recurring cash flows. That strategy has been wildly successful for Ackman, as Pershing Square has generated a 31% annualized return over the past five years, roughly double the performance of the S&P 500." MY COMMENT Reminds "ME" of "ME". NO...I am not recommending the eight stocks that he owns to anyone. What I like about this is his strategy. Same thing I have been doing for many decades. "It focuses on high-quality, large-cap, North American companies with limited downside and predictable, recurring cash flows." Seems like a no-brainer way to invest for the long term.....to me. Of course I like this since it is what "I"do. We all think that how we do things is the best way. It is for "me". BUT....for someone else....the key is to find out what works best for you and simply repeat over, and over, and over.
With the Ten Year Treasury yield down today we are seeing a nice GREEN open in the markets to start out the new week. Although it looks like we have moderated the gains since the open today. The BIG KEY this week will be the earnings on Tuesday and on Thursday. NO.....I dont care about the FED BS that we will see and hear discussed incessantly in the media this week
Speaking of earnings. Super Micro Computer Highlights Another Busy Earnings Calendar; Amazon Stock Strong Ahead Of Results https://www.investors.com/research/...n-stock-super-micro-smci-earnings/?src=A00220 (BOLD is my opinion OR what I consider important content) "A sell-off for Meta Platforms (META) cast a pall on first-quarter earnings season. Now attention turns to upcoming results for Amazon.com (AMZN) stock, as well as Super Micro Computer (SMCI) and Apple (AAPL). Amazon stock fell sharply Thursday but rallied back strongly Friday with quarter profit expected to more than double, but sellers have hit Super Micro hard ahead of its report. A maker of artificial intelligence hardware, Super Micro has made it a habit of preannouncing strong results in recent quarters. Wall Street didn't get a preliminary outlook from the company this time around, however. That's raised concerns of a tepid first-quarter report, although Super Micro is showing growth on par with fellow AI stock Nvidia (NVDA). Analysts polled by Zacks Investment Research expect Super Micro to report adjusted profit of $5.97 a share, up 266% year over year, with revenue up 220% to $4.11 billion. Super Micro reports Tuesday after the close. Mild Pullback For Amazon Stock Amazon's pullback has been more orderly than Super Micro's. Super Micro stock is more than 30% off its high; Amazon is only about 10% off its peak. Amazon stock gapped up powerfully in early February after the company reported strong fourth-quarter results. Revenue growth accelerated from the third quarter, rising 14% to $170 billion. Further, ad revenue grew 27% to $14.7 billion. In January, Amazon starting showing ads on Prime Video. Revenue at Amazon Web Services, the company's cloud computing segment, increased 13% to $24.2 billion, making up 14% of total revenue. Web services growth accelerated slightly from the third quarter. Earlier this year, Amazon abandoned plans to acquire iRobot (IRBT), which makes robot vacuums, for $1.4 billion due to intense scrutiny from European regulators. For the first quarter, analysts are modeling adjusted profit of 82 cents a share, up 164% from the year-ago quarter. Revenue is expected to rise 12% to $142.5 billion. Other high-profile technology names on the earnings calendar include Apple (AAPL) and Advanced Micro Devices (AMD). But sellers have been dictating the action in both stocks in recent weeks. Apple has been trending lower since late January amid slowing iPhone demand. AMD, meanwhile, is more than 30% off its high despite strong annual earnings estimates. Full-year earnings are expected to increase 20% this year, with growth accelerating in 2025, up 68%."........ MY COMMENT It will be a fun week with some earnings excitement. Looking forward to the results.
WELL....that is about it for today. NO news....NOTHING going on. We are simply in waiting mode for the earnings and the FED later in the week. Fine with me....I really get tired of the constant fear mongering and breathless media that we usually see EVERY DAY. It is kind of nice to have a no-news....nothing going on....day once in a while.
I just checked my account a little early today since I have to head out to a routine medical appointment in about fifteen minutes. At this moment I have the following in the green....PLTR, SMCI, AAPL, HD, and AMZN. My other four stocks are in the red including NVDA. With NVDA being in the red and two of my five UP stocks being the junior positions, PLTR and SMCI, I am in the RED early in the day today. I have good hopes for the close today.....being very positive. If I had to bet on it I would bet on a nice positive close for the markets. I would be surprised to see the early morning weakness in NVDA carry through for the entire day......not that a single day matters to me as a long term investor.
Regarding the article about the power of compounding, I was wondering what makes more sense or better say, what gives better returns statistically: invest a lump sum annually or invest equal amounts every month. Has anyone made any calculations on this topic?
My off the top of my head comment is......investing it all as a lump sum at the start of a year will....probably.... do better than investing each month through the year. It gets the money to work immediately. I do know that....contrary to what most people think....investing a sum of money all at once when you have it available....over the long term produces the greatest return.....compared to dollar cost averaging and/or market timing. This is because the market has a positive return about 74% of years....so getting that money to work sooner tends to work better. BUT....most people can not bring themselves to do this....they can not get beyond what they think is common sense of waiting for a buying opportunity or a lower price. SO....I PERSONALLY ALWAYS....go all in, all at once, when I have money for the markets....regardless of if the markets are at a high or even an all time high.
Regarding the above....this little article is in line with most of the academic research done by Dalbar and others that I am familiar with. Lump-sum investing versus cost averaging: Which is better? https://investor.vanguard.com/inves...vesting-versus-cost-averaging-which-is-better "A recent Vanguard research paper, Cost averaging: Invest now or temporarily hold your cash? explores these and other questions, including an analysis of the performance of cost averaging (CA) and lump-sum investing (LS) across markets, historical periods, and simulated return scenarios. We find that LS tends to outperform CA, highlighting how a cash allocation reflects the opportunity cost of lost risk premium, said Megan Finlay, an investment strategist in Vanguard's Enterprise Advice group, who coauthored the paper with Josef Zorn, a U.K.-based wealth planning research strategist in the group. But for some risk-averse investors, a CA approach may be more suitable, because it reduces the risk of drawdown or even abandoning their investment plan altogether because they fear large losses."
As the previous answers above show....I think lump sum wins out statistically, as studies have shown. However, many working folks are DCA in every month on an automatic basis with their paychecks. Most are probably set up to do this contribution automatically. I believe this method ends up averaging out over the long haul as well. There will be times when you are buying up shares in a bear and times when you are picking up shares in a bull. The great thing about setting it up automatically, it eliminates any decision or attempts to get wrapped up into timing the market. If one is receiving a nice lump sum at retirement or some other type of windfall, well you are going to have to decide how to go about it. Some go all in and others will set up a certain % over a period of time. The key is to decide and make the plan. Then stick to it. I currently buy shares every month no matter what. Although, there are occasions where a bonus will come into play or I have some extra to throw in the market. I will usually put it to work immediately. I think people should do what they are comfortable doing. Find your comfort zone and do that. Nothing else matters if you can't stick with it.
Thank you all for your inputs. It basically boils down to finding what each of us is comfortable with and what suits our personalities.
Yes....the above are factors.....but....do not change the FACT that all in immediately as a lump sum will produce a better return over the long term. Comfort and personality are key considerations....if... necessary to get it done....for sure.
A RARE day for me today....my account at Schwab shows a 0.00% day for me today. This does not happen often..I am glad to take a 0% gain/loss today since I was in the RED all day and about an hour or so before the close I was down. A NICE come-back for my stocks. Even NVDA managed to show a gain of about $.22Cents...after being red all day. In the end I had three stocks in the RED....COST, MSFT, and GOOGL. I did get beat by 0.32% by the SP500 today. ALL in all a nice ...."moral"...victory for me.
Out of curiosity I was looking at the last couple of positions that I sold out. HON and NKE. Both were perhaps 1.5 to 2 years ago. So glad that I made that decision. HON: One week -- red One month-- red Three months-- red Six months-- green YTD -- red One year-- red Two years-- red Five years-- +20.23 NKE: One week-- red One month-- green Three months-- red Six months-- red YTD -- red One year-- red Two years-- red Five years-- +8.36 Horrible results for both.
I remember when I entered markets for first time, bought AMD shares for $2000, it was end of December 2021. Perfect time to enter the markets btw. I think I would be better back than with dollar cost averaging throughout dismal 2022 rather than investing a lump sum at the start of the year.
