BUMMER.......for the DOW today. BUT.....the index is so concentrated and a conglomeration of companies........that is why I PREFER the SP500 as a benchmark. That is ALSO why I TOTALLY prefer the SP500 as an Index Fund versus a DOW Index Fund. Off to a good start this week. NICE to beat the SP500 to start the week........by .50%. Also a nice GREEN day in the old accounts. One down.......four to go (market days this week). You......KNOW.....Tesla is in extreme territory.......probably somewhere beyond the Twilight Zone........when shares bought on June 23.........ONLY eight weeks ago......are closing in on a 100% gain. That is the definition of insanity..........I will keep riding that horse.......but it is insanity. FULLY INVESTED for the long term as usual.
Tesla. No words. I love the company. But... no words... That’s the reason why stock trading is not for me. I don’t have that kind of vision EVEN WITH A PRODUCT THAT I LOVE AND SUPPORT... Yes I’m not complaining
Looks like Tesla has the SPLIT THUNDER! It's fun to watch even on the sidelines..LOL Happy Investing!
It is INTERESTING to watch the ONE DAY chart for Apple. It has become a trading vehicle. Approximately every 10 minutes it is spiking up and than approximately 10 minutes later reversing sharply down. It has been doing that ALL day.......so far. The short term traders are having a field day. It was similar yesterday through the day. NOT a good thing for those that are hoping to make money holding from now to the split. If the stock can not get any upward momentum and overcome the trading it will just linger in a very narrow trading range for the next few weeks.
HD.......kicking ass on earnings. Of course the stock.........as is the norm for the past few years.....pays the price for cautious forward looking statements. I find it interesting that the markets LIVE off the short term day to day......stuff. But with earnings......they IGNORE the REAL data......for longer term fantasy. Home Depot quarterly sales soar 23% as consumers take on more DIY projects in pandemic https://www.cnbc.com/2020/08/18/home-depot-hd-q2-2020-earnings.html "Here’s what the company reported for the fiscal second quarter compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv: EPS: $4.02 vs. $3.71 expected Revenue: $38.05 billion vs. $34.53 billion expected Home Depot’s profit also surged 25% to $4.33 billion, or $4.02 per share, during the fiscal second quarter ended Aug. 2, up from $3.48 billion, or $3.17 per share, a year earlier. Analysts surveyed by Refinitiv were expecting earnings per share of $3.71. Net salesrose 23.4% to $38.05 billion, topping expectations of $34.53 billion and setting a record high for quarterly revenue. CEO Craig Menear said digital sales doubled, with customers picking up about 60% of their orders in stores. Its U.S. same-store sales soared 25% in the quarter as consumers visited the retailer more and spent more money. Average purchases rose 10.1% compared with the same time last year to $74.12."
Seems like it would T0rm3nted. BUT.......like HD......it will beat every number by a big amount......yet......based on some vague future statement it will be down 1-4%. the good news is the post earnings......fantasy dip.....will only last a few days. So......I assume you own Lowe's?
AMAZING.......we are now in the middle of an OLD FASHIONED..........August.......summer rally. A STEALTH rally..........many dont even know it is happening. Just like the good old days. Today......much green in the old accounts. ALSO.........a BIG BEAT of the SP500 by 1.00%. This is one of those times when the markets REFUSE to go down. In this sort of environment you hang on and ride it for all you are worth. BUT.......do NOT get greedy.......do NOT get overextended. Keep the focus on the LONG TERM. We have been in a time period for the past five years where NORMAL compounding is out the window. Many big name stocks are doubling every five years........OR LESS.......that kicks the RULE OF 72's into high gear. This......"dangerous time".....is where the long term investors make the big gains that are responsible for MASSIVE PERFORMANCE. At the same time.....being long term investors.......the risk is less because of the long time horizon.........and the avoidance of market timing.
As usual.......I post something.....above......and than I run into an article that is the perfect compliment to the post. Here is an article that is........so true. The stock market just re-taught investors a crucial lesson https://finance.yahoo.com/news/the-...ght-investors-a-crucial-lesson-171916124.html (BOLD is my opinion OR what I consider important content) "As the memes rightly state, 2020 is a disaster in many ways: more than 170,000 deaths from coronavirus, over 10% unemployment, and lines at the food bank. At the same time, the S&P 500 index (^GSPC) is at an all-time high, and it just had the best 100 days of all time. What does this teach us? On the one hand, a lot of investors jumped into the market in the spring as the S&P 500 took a 30% hit, falling to below 2,300 on March 23 from its February high. These investors have been the big beneficiaries of the run-up since the index is back to an all-time high." But others stayed out of the market, seeing risk because they rightly judged that times were uncertain with a global pandemic raging and unemployment ready to balloon. The times have been uncertain, but those who were stayed on the sidelines missed the best 100 days ever. Up until recently, the best 100-day run was a 45.9% increase, beginning in July of 2009 after the Financial Crisis. That run and this current one are a head above the rest: According to analysis from LPL Financial, just four of the 17 best runs of all time have been gains of over 30%. A huge comeback, faster than ever. (Yahoo Finance) The fact that the best 100 days of all time came amid one of the worst years for the economy in recent history underscores the key lesson advisers have continuously harped on: you, a regular person, are probably very bad at timing the market. And if you think that because the market is at an all-time high means we’re due for a reckoning, maybe! Or maybe not. According to LPL, the year after the 16 of the best 17 100-day runs, stocks were up. “Previous big rallies usually saw continued strength, so don’t bet against this bull market just yet,” LPL Financial Chief Market Strategist Ryan Detrick wrote." MY COMMENT Who knows but........you got to be in it to win it. I am fully invested for the long term as usual. YES........YOU.....the average investor are TERRIBLE at timing the markets. So say the professionals and advisors. AND......the TRUTH is those same professionals and advisors are EVEN WORSE at timing the markets. Amateur or pro.....market timing does not work.
I manage two trust funds for my young boys. The reason I set them up was that I wanted to get my boys interested in investing. I set them up about a years ago and have had a good run on them. The hard part for me is explaining to the boys that this market isn't normal. The main goal is for them to see how the markets work over the long run. The trust's get turned over to them when they are 21 and I hope they learn along the way. But at this rate they will not have to work a day job. LOL.. Happy Investing!
This isn't what we knew as normal. However, tomorrow's new normal could be quite different. We look backwards, to see the future. We use historical data. Charts. What do you do when none of that exist? A brand new entity? Company opened yesterday. You then look forward, to imagine the future? What if every company's history were wiped clean? Today is a new day. The past means nothing. There was a fire. The CEO, chairman... The entire board... They all got shot, and / or died in the fire. Today's trader looks at a company's future with fresh eyes. They are not assigning any value to past performance. They don't care if the company's a loser, or delivered year over year profits. They want something which nobody can do, which is to see into the future. They are willing to buy a cruise ship company that can't sail. They will buy "natural" shrimp raised in a fishtank. They believe in technology so much, that TelaDoc will replace doctors offices. Teladoc the OB /GYN for your pelvic exam. Hold the iPhone between your legs, and zoom in. Imagine what you're doing to yourself with the other hand, broadcasted live in real time.
YES.......blow out numbers for Lowes. AND....they were smart enough to state........or......NOT state: "Lowe’s did not provide an update on its 2020 forecast, which was withdrawn in May, but said that its sales momentum is continuing into August." Good holding T0rm3nted
I live in a small city but, around here, building materials for fences, decks, and outdoor projects are difficult to find stock.
GOOD FOR YOU TRAHN. Securing the future of your children and perhaps a generation or two after them. You are taking care of them financially and even more importantly showing them how to invest. As to NEW NORMAL.......I have heard that all my life and all my life it ends up to be.......EXACTLY like the old normal. HUMAN BEHAVIOR does not change. The basics of money and investing do not change. BUT......as an investor I try to NOT assign any value to past performance of any company. I dont care for charts........and.......other than a look at financials when I am deciding to buy a business.........I dont obscess over financial data. I am more of a BIG PICTURE.....marketing oriented.......product oriented......sales oriented......management oriented, kind of investor. In my opinion much of the STUFF that investors do is just BUSY WORK. If I have to look deep in the weeds of data, charts, financials, etc, etc to buy a company I dont want it. I want ICONIC companies that are clear as the nose on your face. I WANT........long term growth momentum. That is why I buy the sort of companies that I hold in my portfolio model.
I HATE.......the old late day fade. ESPECIALLY when it is caused by the FED. Those guys know how to stick their foot in their mouth about a thousand different ways. The good news is.........the fade today was not something more substantial. So.....that should mean that the market direction......UP, UP, UP..........is unchanged. We........the SP500......is STILL slightly positive for the week. Lets end the week with a couple of good days. NOT a prediction.......just a positive thought.
Of course........RED it was........for me today. At least I BEAT the SP500 today by .15%. If I cant be green at least let me beat the SP500. Rack up those SP500 beats and it is money in the bank over the medium to long term. The tail end of earnings are coming in REALLY NICELY. Lowe's, Target, Walmart, Home Depot,.........we are on a roll.
