The Long Term Investor

I TOTALLY agree with this little article as an.....INVESTOR.....the parts that I have BOLDED. I NEVER invest according to what government is going to do...is doing...or has done. It is a waste of time and it is a HUGE danger to any investor to get caught up in government action or inaction as a driving force in how and why you invest. Investment by its very nature is......PRIVATE BUSINESS....based. Total focus as an investor should be on the PRIVATE businesses that you own that their FUNDAMENTAL business results.

One Big Beautiful Country
It's Mistaken to Think of the U.S. In Terms of Its Government

https://edgyoptimist.substack.com/p...e&r=67wdy&triedRedirect=true&utm_medium=email

(BOLD is my opinion OR what I consider important content)

"As Washington consumes itself with the One Big Beautiful Bill and as the Second Season of the Trump Show launches a fragrance line of perfumes and cologne, it’s an opportune time on the eve of the 249th anniversary of the Declaration of Independence to remember that the United States, like most countries, is far more than the sum total of its government.

That should be an obvious statement, and yet year by year, the federal government consumes more of our limited public bandwidth to the point that it has become the dominant news story on any given day. The ability of Trump himself to manipulate and dominate the media landscape is part of his genius, yet it is creating an even more distorted optic. In fact, it’s getting to the point where we are discussing the United States almost entirely in terms of what emanates from Washington. That is a profound mistake. We are far more than what the federal government does or doesn’t do.
That’s certainly true economically. In 2024, government spending in the United States was about $6.75 trillion, which is a bit less than 25 percent of the country’s GDP. Almost half of that is health spending (Medicare and Medicaid primarily) and Social Security payments, which means that much of the budget is simply transfer payments for the safety net. Another $1 trillion is interest on the debt, and nearly another $1 trillion is spent on defense. Another $1 trillion or so is veteran benefits, retirement plans for federal employees, and an array of income security programs like unemployment insurance and SNAP (which used to be called food stamps). That leaves less than $1 trillion of non-defense discretionary spending, and for the most part, it is that $1 trillion that becomes the focus of all debates, pro and con.

It is that $1 trillion that includes USAID, the Department of Education, NASA, the National Institutes of Health, the State Department, the Parks Department, transportation, and the EPA. It is that $1 trillion that everyone fights over, and that is less than 3 percent of the U.S. economy.

For sure, that $1 trillion is a lot of money, and cutting that spending affects a lot of institutions and people. But not nearly as much as you would think given the intense focus. Yes, you could fill up every news site and podcast for weeks and weeks with stories of people adversely affected by how that spending is allocated, but that’s because in a country of 330 million people and that many programs funded, the absolute number of those impacted is huge.

Relatively, however, it isn’t nearly as big. I wrote a few weeks ago about how the R&D budgets of the five top tech companies are about 3x greater than the entire research funding that the federal government provided in 2024. On just about every meaningful metric, the same pattern exists, and even more so. The amount of money spent on education locally is vastly more than whatever the federal government spends, as is private money for private schools. The amount spent on land conservation privately and at the state and local level (often in the form of tax abatements) is also immense relative to public efforts. Private universities spend nearly $300 billion a year. Public universities (most of which receive no more than 10% of their budget from the states) spend close to $500 billion. In every area of life, non-governmental spending dwarfs governmental.

The point of these stats is to highlight that the vast bulk of how we live our lives is not funneled through Washington D.C. And yet, we have created a collective narrative that the fate of everything runs through the beltway.

Government — federal, state and local — has one unequivocal monopoly: it alone has the legal right to use violence and force against citizens. That makes government everywhere loom large in people’s lives because it has the tools to coerce. We hope that those tools are used sparingly and in the service of an agreed-on public good. Often, however, those tools are abused and misused. And with July 4th in the United States, we should remember that one animating force of the rebellion, and then the subsequent founding of the Republic in 1789, was the fear and awareness that with the monopoly on the legitimate use of force, people and institutions of power will tend to abuse that power unless checked.

There was also, of course, a strong inclination to limit the scope of government that animated the founding of the United States. Yet, starting in the mid-19th century, especially with the Civil War, the scope of the federal and state governments began to expand. The expansion of government took off during the New Deal and then World War II. The subsequent creation of the national security state apparatus, and the Great Society programs of the 1960s, further accelerated it. The result is that we have far more government than most generations of Americans wanted or fully intended, and we have a far more expansive array of presidential powers as well.

Even with that, however, much of American life remains only marginally touched by the federal government. Paying taxes and receiving Social Security checks and medical benefits are by far the most common and regular interactions any of us have with Washington and its agencies. Much of our lives is both untouched by and unaffected by government, even in an age of draconian immigration enforcement and the attempt of the White House to exact retribution on public and private institutions it finds objectionable.

A more balanced daily discussion would, of course, expand beyond what Congress, the presidency, and the courts decide and debate. To a degree, I suppose, news about celebrities and gossipy lurid trials à la Sean Combs are broadening the aperture, but that can be like substituting one set of hollow calories for another rather than creating a more balanced diet. A more balanced daily discussion would look intently at AI, at medical discoveries, at innovative urban programs to address pressing needs, at non-profits and what they are accomplishing (and non-profits spend close to $4 trillion annually, which is 4x the discretionary budget of the federal government), at local governments and what they are doing well, or not doing well.

And with this July 4th, it is worth recognizing that in most respects, the United States has carved out a remarkable space of individual freedoms and liberties over the last 249 years, compared to most societies on the planet. The United States remains an open society, even as the limits of that are tested and contested. Even with its monopoly on the use of force, the government is constrained by the rule of law to a degree that most societies for much of history would have found astonishing and enviable. In many of my pieces this year, I have been trying to remind us how dark the American past has been, because recognizing our past ugliness makes the present more a part of a problematic continuum than a dramatic break. As we celebrate July 4th, it’s equally vital to recognize the best of us."

MY COMMENT

I "like" this little article from the stand point that too often as investors and people we let the daily media OBSESSION with government control and drive our lives. It is all consuming and totally dominating in the media.

The FED....all the economic data releases.....the political drama.....etc, etc, etc. In spite of it all..... over the longer term it is NOT that important to investors.

 

As many know on here.....If I have a lump sum of money available to ivnest.....I simply go all in all at once. I dont care if we are at a market high or not. I dont try to wait for some mythical entry point or time the market. When I have it.....I invest it...all at once, right away. I do this because the academic research tell me that the.....PROBABILITY....is that this will maximize my returns going forward especially over the medium to long term......and.....will beat those that dollar cost in, market time and/or wait for a good entry point.

Investing a Lump Sum at All-Time Highs

https://awealthofcommonsense.com/2025/07/investing-a-lump-sum-at-all-time-highs-2/

(BOLD is my opinion OR what I consider important content)

"A reader asks:

I recently sold my condo for $400k and want to invest the money in the stock market. However, it appears the market is at an all time high. Should I invest elsewhere or wait for a market correction?

Excellent question.

Let’s start with the math first and then work our way to the psychological ramifications.

Here are some charts from Exhibit A on the history of all-time highs:



The good news is that new all-time highs are perfectly normal. On average they happen 20 times a year since 1990.

The bad news is that there can be dry spells as those new highs tend to cluster. Here’s another way of looking at this:



Obviously, the all-time highs cluster around bull markets while the droughts are caused by bear markets and lost decades.

Let’s do some more good news since I like to be positive:


Not only are new all-time highs perfectly normal, your returns are actually better when you invest at those levels than putting your money to work on all other days over 1, 3 and 5 year windows.

If you’re looking at this strictly from a cost-benefit perspective, you don’t need to be scared off by new highs in the stock market. They happen more often than you think.

Long-term investors need to become accustomed to buying and holding at new heights.

People have been trying to call THE top of this bull market since the bottom in 2009.

The thing is one of these all-time highs will be THE peak that occurs before a nasty market crash. There will be a painful bear market and we won’t see new highs for a few years.1

This is the hard part when thinking through a lump sum investment like this.

The math tells you the stock market is up three out of every four years, on average, and investing at all-time highs offers slightly above average results. Those are pretty good odds.

But the psychology tells you losses bring far more pain than the pleasure you receive from gains.

This is why many people are more comfortable dollar cost averaging into the market, even if it’s a sub-optimal approach from a spreadsheet perspective.

Regret minimization is key when working through these decisions.

Some people would regret missing out on further gains if they dollar cost averaged into stocks and the market keeps moving higher. Most people would feel more regret if they put that lump sum to work and the market immediately rolled over.

You shouldn’t always allow behavioral psychology to guide your actions but you have to weigh the pros and cons of both the math and human nature when making big investment decisions like this.

You also don’t have to put all of this money into stocks. You could create a more balanced portfolio of stocks, bonds, cash and other investments if that makes it easier to be fully invested sooner.

An all-or-nothing approach tends to invite more opportunities for regret."

MY COMMENT

MOST people probably have a very hard time investing with the PROBABILITIES when it comes to investing a lump sum immediately....even at a market high. I have ZERO PROBLEM....I have done it many times and it is my long term TOTAL habit to do so. I TRUST the research and probability data.

This is a perfect test of ability to ignore emotions and go with the logic. BUT.....if you struggle with this or simply cant do it....dont beat yourself up....you are probably in the majority. Just do what you can stand to do and get that money working in the markets in a way that you can mentally endure.

 

YES...I am ignoring the markets today because the short term action that we are seeing is simply STUPID to me as a long term investor.

There is NOTHING actually happening today....it is all short term nonsense and some profit taking. Of course it is AMPLIFIED and MULTIPLIED by the AI TRADING PLATFORMS taking advantage to trade the news content and headlines.

I do like this little story.

Citi lifts Nvidia's price target on booming sovereign AI demand

https://finance.yahoo.com/news/citi...on-booming-sovereign-ai-demand-133311040.html


"The firm raised its price target on the chipmaker to $190 per share, implying a roughly 15% upside from Nvidia's current trading levels. Citi analysts said they see Nvidia capturing a larger piece of an expanding total addressable market (TAM) for data center infrastructure. The upgrade comes as Nvidia continues its charge toward a $4 trillion market cap, with shares up 12% in the past month."

MY COMMENT

Of course...I own NVDA....so DUH.

 

We are CERTAINLY seeing this here in the Austin region. Although I would not call it a buyers market.

Housing Supply Has Bounced Back In Some Markets

https://finance.yahoo.com/news/housing-supply-bounced-back-markets-142919438.html

 

And as to the above.

Mortgage rates drop for fifth straight week
The average rate for a 30-year fixed mortgage stood at 6.67%.

https://finance.yahoo.com/news/mortgage-rates-drop-for-fifth-straight-week-160544782.html

 

I have ONE stock up right now.....PLTR. BUT....my loss today....so far...is holding at a medium level....actually less that I expected.

It is a waste of time for me to watch the markets today......move on....nothing to see here. Just short term churning over current event news opinion and content.

 

I like that KO....Broteau. An old school holding. I like the concept of holding some old school big cap DIVIDEND stocks along with the big tech modern names.....for balance and a bit of safety. I have held KO and PG and many others over the years. I dont hold any right now....except for WMT. I do like PG.

I try to achieve the same things with a good percentage.....well below 50% now with the growth in my stocks....in the SP500 Index.

Looks like you have a great portfolio.

 

I am now less red than earlier. I still only have one stock up....PLTR. I would now call my loss a "small" loss. There is NOT much selling enthusiasm today......although there is enough to drive the big averages into the red. A MILD and IRRELEVANT day in the markets......so far.

 

I find this an interesting concept.....BUT.....I AM NOT TALKING ABOUT THIS PRODUCT BY TALKING ABOUT IT.

Wall Street Builds S&P 500 ‘No Dividend’ Fund in New Tax Dodge

https://finance.yahoo.com/news/wall...NjkhKeeD921JNsfT7Iwaj_I5aN1VhcSltGk41SkL6KN6I

(BOLD is my opinion OR what I consider important content)

"(Bloomberg) -- Wall Street’s latest tax dodge doesn’t hide in the Cayman Islands or rely on complex derivatives. It’s engineered to turn a publicly traded fund into a tax-minimizing machine that hums quietly on autopilot.
While dividends have long been a defining feature of stock investing — a sign of corporate discipline and investor reward — Roundhill Investments plans to launch the S&P 500 No Dividend Target exchange-traded fund on July 10 with the ticker XDIV. Its ambition is simple but strategic: track the performance of the famous benchmark while dodging its payouts. The fund will sell holdings just before their dividend dates — steering income away from ETF shareholders and, in the process, away from their tax bills.

As stock benchmarks have climbed in recent years and tax bills have grown alongside them, asset managers are building products that give investors more control over when — and whether — they owe taxes. These rely on sophisticated mechanisms to reduce taxable events, essentially transforming the fund structure into a programmable tax-sensitive tool.

These strategies are executed through US-regulated ETFs that trade on public exchanges, offering investors easy access and the kind of fiscal flexibility once reserved for private wealth clients.

It’s “for people who are tax-aware — intended for people who want to have S&P 500 exposure without the downside of distributions,” said Dave Mazza, chief executive officer at Roundhill. “There hasn’t been a product in the market to meet the needs of investors for this.”

While most ETFs already sidestep capital gains by using a mechanism known as in-kind redemptions, XDIV’s strategy takes aim at a different category of tax exposure: ordinary income. The fund, which will charge a 0.0849% fee at the start, will invest in other S&P 500 ETFs, such as Vanguard’s VOO, but will exit positions just before ex-dividend dates. It will then rotate from one such index fund into another that isn’t about to pay a distribution.

That could appeal to clients who don’t reinvest payouts consistently — which can be a drag on performance — or high earners seeking to limit taxable income in brokerage accounts.

“There are certain investors who don’t want taxable income — there’s institutional investors who only want the total return for an investment,” Mazza said. “Then, there’s tax-aware mom-and-pop investors who are focused on long-term compounding, but they don’t want to receive current income because that means their total income — even if it’s modest compared to what they may be making from their compensation — is still going to be taxable.”

Skipping the dividend isn’t an own goal. When a company pays out cash to shareholders, its stock typically falls by the same amount, so by selling just before that moment, the ETF gives up the payout but also sidesteps the price dip. In other words, the value of the trade should net out, the thinking goes. What changes is how — and when — investors owe taxes.

XDIV joins a growing wave of tax-optimized offerings. Others, like the Burney US Factor Rotation ETF, convert entire portfolios into the wrapper without triggering a taxable event. Cambria’s Tax Aware ETF, meanwhile, seeded its portfolio with appreciated stocks, allowing investors to swap exposures without formally realizing gains.

And more products that hew to this idea could come to market soon. A firm named LionShares LLC in mid-June filed for an ETF that would invest in other ETFs tracking the large-cap US equity market, but would at the same time look to “minimize” distributions, according to its paperwork. Earlier, F/m Investments, a Washington DC-based asset manager with a growing ETF lineup, filed for a number of new bond products that would swap between different holdings in order to dodge dividend payouts, something that industry veteran Dave Nadig dubbed “clever.”

“The ability of ETFs to sidestep capital gains isn’t just a technical quirk anymore — it’s a core selling point, and issuers are leaning into this edge,” said Athanasios Psarofagis, ETF analyst at Bloomberg Intelligence."

MY COMMENT

For some people probably an option. I have NOT researched any of these products.....this is my first awareness of them.

I prefer a regular ETF that makes distributions since I want to get the compounding that comes from reinvesting capital gains and dividends.....BUT....that is just me.

 

With a bit less than an hour to go I have IMPROVED to three stocks green....PLTR, COST, and WMT. STILL.....a small loss day for me.

 

I closed out the day with three stocks GREEN.....COST, PLTR, and WMT. Good enough to earn me a small loss and a good beat on the SP500 by.....0.48%.

I am happy to have those three up today and the SP500 beat.....onward and upward.

 

Here is the relatively worthless day today.

Dow, S&P 500, Nasdaq retreat as Trump reignites trade tensions with flurry of letters, August deadline

https://finance.yahoo.com/news/live...NjkhKeeD921JNsfT7Iwaj_I5aN1VhcSltGk41SkL6KN6I

Nothing much of a day.

 

God help us....here is the FED's meeting schedule for the rest of the year.
June 17-18

• June 17-18*

• July 29-30

• September 16-17*

• October 28-29

• December 9-10*

MY COMMENT

Not that they have any relevance or real power anymore. The dates with an asterisk are those for which the meeting is associated with a Summary of Economic Projections.

 

I like this little article as a PLTR owner. I ran into it while looking into the stock tonight.

Palantir: Clarity In A Fractured World

https://seekingalpha.com/article/4799488-palantir-stock-clarity-in-a-fractured-world

(BOLD is my opinion OR what I consider important content)


"Summary

• Palantir's deepening government contracts and AI-driven defense solutions position it as a critical player amid rising geopolitical tensions and national security needs.
• Despite a premium valuation, Palantir's robust fundamentals—organic growth, debt-free balance sheet, and expanding margins—justify a long-term bullish outlook.
• The recent technical pullback creates a tactical entry point, with no fundamental weakness, enhancing risk/reward for long-term investors.
• Highly liquid options markets offer flexible strategies; I recommend long-dated calls or synthetic longs to capitalize on Palantir's asymmetric upside potential.

Introduction

Palantir Technologies (NASDAQ:PLTR) stands at the forefront of national security, artificial intelligence and cutting-edge data analytics, all three acting as powerful forces that are quickly reshaping the global economy. While its compelling narrative often capture investors' attention, the investment case lies on more than just the story; the company boasts robust fundamentals, an abundance of liquid options for risk mitigation and return enhancement, and employs stellar executives that can navigate through this obscure macroeconomic economic environment. Plus, amid deepening government partnerships, increasingly unstable geopolitical tensions, accelerating AI adoption, and a substantial technical pullback, I believe Palantir now offers an attractive risk-adjusted opportunity to long-biased investors.

Heightened Government Relationships

Palantir's growing relationships with U.S. defense, intelligence and allied government agencies uniquely position the company as a mission-critical software provider. Notably, the company continues to secure major multi-year contracts that magnify revenue visibility and ultimately strengthen its economic moat. Per Yahoo Finance, the company was recently awarded a $795M with the Department of Defense to deliver AI-enabled operation command and in-depth battlefield analytics. Furthermore, announced in early 2025 was Trump's proposal of an American equivalent to Israel's Iron Dome (a cutting-edge missile defense system), but on a much larger scale; it is structurally designed to protect the entire U.S. homeland. Intuitively, the architecture relies on several moving parts, but ultimately operates through an AI-powered core. Initially, the program has a proposed budget of $175B, with long-term permissions to exceed $500B. Emphatically, government contracts tend to be long in duration and provide sticky, margin-effective revenue streams.




Israel's Iron Dome (Axios)



Beyond defense, which in itself is substantial in a geopolitical environment defined by growing tensions, Palantir has generated a vast portfolio of government contracts that support several diverse civilian agencies. In the public health care space, the company shows per its investor relations that it has secured deals with both the Center for Disease Control (CDC) and the Department of Health and Human Services (HHS) to provide pandemic analytics and public health infrastructure. In the world of debt, the company operates alongside Fannie Mae for risk modeling and compliance analytics. Additionally, Palantir supports space-related programs directly associating with NASA and other civilian space agencies. This versatility and diversification of income sources strengthens Palantir's viability as a going concern capable of generating income consistently amid shifts in demand cycles.

However, a risk emerges in Palantir's presence in all corners of U.S. sectors, as concerns over data privacy and ethical concerns around constant surveillance show in consumer sentiment that could potentially prompt regulatory action. This raises a significant regulatory risk for the tech leader.

Geopolitical Tailwinds

International relations are defined by global instability, plagued with conflicts across Eastern Europe and the Middle East and intensifying tensions in U.S.-China dynamics. Naturally, Palantir is well positioned to benefit from this environment, as these situations prove to drive defense spending and accelerate demand for AI-powered defense solutions that can address the complexities of modern warfare and national security.

At the same time, the rampant international proliferation of artificial intelligence throughout both government and commercial sectors amplifies these tailwinds. Currently, some estimates value the total AI market around $391 billion and projections estimate the market to reach $1.81 trillion. Stated otherwise, and shown visually below, the AI market is expected to expand at a CAGR of 35.9% over this period. Advantageously, Palantir's deep integration of AI within its flagship Gotham, Foundry and Artificial Intelligence Platform (AIP) places the company to benefit from its dual exposure to geopolitical demand and widespread AI adoption.




AI Global Market growth (Canva)



Cooling Off

In late June 2025, the stock experienced a significant 10.8% pullback from its recently acquired all-time highs (ATH) on the 26th when shares peaked at 148.22. This recent dip presents an attractive and tactical entry point for both new and existing investors to add to their positions. Notably, this pullback was not prompted by any structural inefficiencies, but simply the convergence of several temporary factors, such as forced selling from the annual Russell 2000 rebalance (PLTR moved into large-cap territory), profit-taking from short-term momentum traders, and rapid return to pre-Liberation Day market value while forcefully breaching its 50-day moving average, a critical technical threshold. Thus, the broader trend of unstoppable growth remains firmly intact.




1 YR Price Action (TradingView)



I view that investors with a long-term horizon should treat this retracement as an opportunity to tactically enter alongside recently improved risk/reward dynamics, as opposed to the breakdown of a fallen giant. In confluence with this tactical opportunity, the fundamental context is thoroughly supportive.

Under the Hood: Palantir's Fundamentals

Critics naturally discuss gross overvaluation, and the company undeniably trades at a premium, which is evident in multiples-based valuation. Currently, PLTR's Forward P/E is 238.10, and 574.43 on a TTM basis, per Yahoo Finance, well above historical software industry averages. However, such measures can be deceivingly misleading when applied to a company at Palantir's stage of growth and unique market positioning.

Ultimately, what matters more is the company's ability to maintain all-around growth, plain and simple; top-line expansion, earnings scalability, economic moat deepening, etc. As physically exemplified below, the company continues to deliver exceptional growth, roughly 29% YoY top-line expansion and 71% YoY margin growth. On a quarterly basis, the company continues to showcase dynamism, as growth in all metrics continuously rises despite seasonality.




Revenue/Earnings/Margin (TradingView)



Notably, this explosive growth is purely organic, as the company maintains a rare feat: a debt-free balance sheet. Along with its strengthening government relationships and leadership in AI-enabled platforms, strong fundamentals give the company the operating leverage needed to justify premium pricing without excessive debt capital. For long-bias investors with a long-term horizon, I recommend focusing on Palantir's robust fundamentals and growth trajectory rather than simply short-term valuation metrics.

Option-Enhanced Portfolio Strategies

My favorite part. In my opinion, Palantir's appeal lies beyond its common equity and delves into derivatives, as its highly liquid options unlock limitless profile flexibility. The tight bid-ask spread, voluminous open interest across a wide range of strikes and expirations together provide investors with sophisticated portfolio implementation strategies that are optimal for expressing directional views, enhancing yield or simply managing risk profiles. Aligning with my bullish outlook, I recommend straightforwardly expressing simply through the purchase of long-dated (9 month +) call options (initial theta decay for long-dated options is comparatively negligible). Notably, long options are inherently long volatility. This aligns well with the fact that PLTR's current Implied Volatility Rank (IVR) sits below 23, per Barchart. Given the mean-reverting nature of volatility, this current volatility environment of low idiosyncratic IV and a systematic VIX print of 16.38 at close today (below a median of approximately 17) offers an asymmetric risk/return probability. Taken together with recent price action, this seems like an opportune method for investors to express a bullish sentiment.




Synthetic Long + Long Stock return profiles (Corporate Finance Institute)



Furthermore, investors can purchase a "synthetic long" if seeking a more advanced strategy. The synthetic long is a strategy that involves purchasing an ATM call while selling an ATM put, essentially resulting in a cost-free position that mimics the return profile of a typical long stock position, but comes with the added benefit of capital efficiency, as it leverages margin rather than tying up 100 shares worth of capital. An added benefit in this specific case is the lack of dividend risk, as PLTR distributes no dividends. That being said, this is a synthetic long position, not an actual equity position, so it bears no voting rights. Albeit unlikely in reality for non-dividend paying underlying assets, another risk is the possibility of early assignment, resulting in purchase of the underlying stock and negating the synthetic structure.

Conclusion

To briefly wrap it all up, I recommend a "strong buy" on Palantir Technologies as supported by its fundamental robustness, evolving macroeconomic tailwinds, widespread and ever-growing AI adoption and a temporary technical pullback. Though, I must emphasize that a stock, if not easily investable, may prove unattractive for many investors. Well, the advent of a developed derivatives market truly offers countless portfolio implementation solutions. Considering this company boasts a market cap of "only" $317B, I can see the stock more than tripling in value to a trillion dollar valuation and a $400 share price, barring any splits or share issuances/buybacks."

MY COMMENT

The BASIC BULL case for PLTR. I am NOT into the options talk since I dont do options.....ever.

BUT...like everything.....just one persons opinion.....and....time will be the arbiter of this opinion.

This is one stock that is very personal....right for some people and wrong for many others. Know your risk tolerance and be able to stomach a ride with this stock if you get on board. There is always great potential for this stock to be very erratic....even though the current direction has been pretty steadily to the UP side.

DO YOUR OWN RESEARCH ON THIS ONE BEFORE DOING ANYTHING.

 

An interesting concept. It "might" happen....time will tell. Being old and having participated in the "old" market system for so long I am probably not going to be interested. For me as a long term investor I dont really see much benefit. I am not going to use my stock account as a piggy bank and I am certainly not going to trade, trade, trade. I would also have TRUST ISSUES...involving security, fraud, and the danger of having my stocks on some thumb drive or other storage subject to all the issues that we now see with Crypto.

The End of the Stock Market As We Know It
Startups and Wall Street giants alike are racing to turn stocks, bonds, and real estate into crypto-like tokens. We asked an expert to break down what that means for your money.

https://gizmodo.com/the-end-of-the-stock-market-as-we-know-it-2000625351

 

I start another slow low volatility day with two stocks in the green....COST and NVDA.

I have not done a lot of reading yet....butt....I see that the minute to minute financial media is still ALL caught up in pushing the trade story-line again today. I would put this as about a 2-3 day story at best. IRRELEVANT to anything to do with actual investing.

 

Not a lot out there in the financial media today. Basically NOTHING other than trade, trade, trade. I do like this little article......as a life-long BIG CAP GROWTH stock investor.

The 'new normal' of growth stock dominance

https://finance.yahoo.com/news/the-new-normal-of-growth-stock-dominance-100049359.html

(BOLD is my opinion OR what I consider important content)

"It pays to be big. And it's a good time to be on team growth.

A key insight from recent years — from the pandemic crisis through the "Liberation Day" turmoil — is that the most well-capitalized and growth-oriented names are outperforming their counterparts.

Investors who tend to favor small-cap and value stocks, because of their time horizon, risk appetite, or other preferences, might point to earlier periods of trading to show the merits of their strategy.

Last year notably featured glimmers of a small-cap revival.

A broadening of the stock market rally, optimistic economic forecasts, and expectations of Fed rate cuts bolstered the case for the double-A and triple-A tickers that don't always get the major league limelight.

But the call for small caps turned out to be short-lived, ill-suited for the trade conflicts of 2025 and the wait-and-see posturing of the central bank.

In fact, the performance gap between US large and small caps has widened considerably over the last two-and-a-half years, according to a new analysis by DataTrek co-founder Nicholas Colas, who wrote in a recent note to clients that the duration of the relative outperformance suggests it's structural rather than cyclical.

"Relative return data suggests that there is a 'new normal' at play in US stock markets, one where large caps and Growth have the upper hand versus small caps and Value," he wrote. "Moreover, enough time has passed that these differences look durable rather than being temporary anomalies."

Big Tech's steadfast march to higher valuations has played a major role in the stock market's lopsided behavior.

But the growth of the Magnificent Seven is only part of the story.

While a broadening rally hasn't unfolded in the way small-cap proponents had hoped, the spoils of AI excitement have flowed to many other players aside from the mega-rich tech platforms. As my colleague Josh Schafer has reported in this newsletter, AI chip and data center trades not named Nvidia (NVDA) have posted some of the highest gains in the S&P 500 (^GSPC). Investments in AI energy and cloud tickers have payed off too.

That's probably cold comfort for close watchers of the Russell 2000 (^RUT), which has underperformed the broader market this year, posting a loss of about 1% compared to the S&P's 6% gain. It's difficult to imagine market sentiment shifting away from Big Tech, especially amid the fresh trade uncertainty unleashed on Monday.

Rejuvenated bulls see even greater gains ahead, motivated in part by the seeming invincibility of the tech trade, itself a kind of defensive play to weather realigned global trade.

For a certain investor, large caps and growth names have been a part of the portfolio worth prioritizing and fussing over. Halfway into this pandemic decade and this chaotic trading year, they are increasingly the only one."

MY COMMENT

A NEW NORMAL? Ok....I have been investing this way for over 50 years. I am not sure i like being part of a "new normal"....but....WHATEVER.

This take in the media will last till they suddenly discover the next......new normal. I have seen a lot of NEW NORMAL'S over the past 50 years....they come and go. Meanwhile I just keep ignoring all this sort of talk and just keep plugging away as usual.

 

NO....."investors" are not trying to recover from a little MILD one day dip over the massive media coverage of tariffs. It is the TRADERS and SPECULATORS that care about this "stuff". The typical "retail investor" is not impacted by this sort of one day story at all. It is just another little mosquito of an event to swat away and ignore. A slight irritant....nothing more.

S&P 500 is little changed as investors look to recover from Monday’s tariff shock

https://www.cnbc.com/2025/07/07/stock-market-today-live-updates.html

(BOLD is my opinion OR what I consider important content)

"Investors tried to recover from a steep Monday sell-off after President Donald Trump pushed the tariff deadline once again and signaled flexibility on that timing as well with countries willing to negotiate.

The S&P 500 traded just below the flatline, while the Nasdaq Composite was unchanged. The Dow Jones Industrial Average
slipped 116 points, or less than 0.3%.

Trump late Monday said the new Aug. 1 tariff deadline is “not 100% firm,” adding that “If they call up and they say something a different way, we’re going to be open to that.”

His comments came after he posted letters to countries announcing new tariffs on their respective imports.

Stocks sold off Monday following Trump’s posts, with the Dow tumbling more than 400 points, after the president set 25% tariffs on goods imported from South Korea and Japan. Overall, at least 14 countries are set to face new duties including South Africa and Kazakhstan.

However, some traders no longer forecast the latest U.S. tariffs to be as strict as initially feared, with many expecting that the worst from the trade war has now passed.

Nvidia shares rose 0.6% on Tuesday. The chipmaker is also closing in on reaching a $4 trillion market cap. Tesla shares also rebounded 1% after losing 6.1%.

On the other hand, big banks were the worst performing cohort following a downgrade from HSBC. Shares of JPMorgan
and Bank of America shed 2%, while Goldman Sachs slipped 1%."

MY COMMENT

Some day the MEDIA will learn the difference between TRADERS and INVESTORS. Actually they know the difference but choose to mix the two in order to push their fear-mongering opinions.

Anyone with half a brain now has a good handle on how the government is doing the trade issues and negotiation....it is a non-issue and patently obvious how the game is being played.