Every so often, the world of investing turns upside down, producing huge new opportunities, like work at home, and killing old ones, like airlines, energy, hotels, retailers, etc.
This change is happening at warp speed.
It’s complicated. It mixes all the elements of being a good investor –timing, panicking, optimism, etc.
Timing: Airlines died, but have since bounced back from their lows, viz. the good trade in Southwest Airlines:
The classic work-at-home stock is Zoom, which just keeps gong up, despite being way overpriced. But everybody and their uncle and aunt and children are using it and want to own shares in it. Good on them. I love Zoom. The grandkids are getting smarter than me doing their lessons on Zoom.
There’s also Netflix, Roku and DraftKings for entertainment.
There are also stocks for doing business at, and from home, like DocuSign and Shopify. And getting medical attention, like Teladoc Health.
And of course, the new banks, like PayPal and Square, which take a cut of everything I buy. Or seem to.
Then’s there’s the virus-controllers that make it safe to access sensitive distance corporate databases from home. Like Zscalier and CrowdStrike.
If you’re confused, buy VGT, which is Vanguard’s facsimile of Nasdaq ETF. It works fine.
If you’re not too confused, go to my web site, here and check out my updated (as of today) “Stocks We Like and Own — updated June 3,2020“
It’s a long list. But they’re all doing well. Pick the ones whose names you’re familiar with, and perhaps use daily.
There’s two caveats.
- Don’t panic. They’ll all pull back at some time, like they did in March. That will NOT be the time to panic and sell.
You can’t predict the market. See the Prophecy cartoon below.
They fell in March. Since then they have come roaring back. Panic in March. But in a hole in June. “Sell in May and Go Away” is nonsense.
2. The second caveat: Don’t look too closely at their fundamentals. By all measures they’re all way over priced.
This not a time for fundamentals valuation. There are too few hot stocks to buy and too much money around to buy them. Hence their price rises. Economics and all that.
Zoom is up another 3.2% today already. Its P/E ratio according to Fidelity is 2,312.
More lessons
+ Don’t trust the US Post Office to forward your mail. Some letters they will. Most they won’t. Your best solution is go electronic. The superintendent at my Manhattan apartment building, shows me what I’v received using FaceTime. Most we junk. The good stuff he sends me by FedEx. I send him labels printed off the FedEx site.
+ If you’re running a business, please make sure that you have someone who answers your customers’ emails. Amazon is the best. Send an email to Jeff@Amazon.com and it will be answered. Often something will be done to address your concern.
+ I’m not BIG on most new laptops — their screens have too many pixels, making type often teeny-weeny — too hard to read. Their keyboards are too small for accurate, fast typing. Moreover their speed is over-rated for what most of us do — push words and numbers around a screen. I’m happy with a 1920 x 1080 screen and a decent keyboard. You’ll find that on older X1 Carbon Lenovo machines on eBay. I still prefer Windows 7, though I have been pushed into Windows 10 because of its better virus protection and faster speed.
+ Your present laptop needs to be updated with a new Bios, changes to its operating system, updates to its device drivers nd updates against viruses.
+ The best feature of Chrome, the Google browser. is that it can synch with all your laptops, including all your spares.
+ Thousands of people are using apps to monitor police scanners during the ongoing protests in the US. A popular one is 5-0 Radio Police Scanner.
+ If you’re replying to an email, please change the subject line. That way we’ll know what you’re talking about.
+ Stop sitting close to your laptop when you’re on a Zoom call. You’ll be out of focus.
The country where we live now
Our Robins have hatched and flown away.
This is what they started out as.
From eggs to flying. About a month.
This morning the mother is back, preparing the nest for another batch (aka brood).
She’s one prolific lady, a joy to have around, while we watch the world continue, despite our quarantine.
Two of the grandchildren.
More progress. Eleanor has lost a third tooth. The price remains a miserable $2 a tooth. The tooth fairy is an ultra-cheap mother.
This is Zoe learning to climb. She’s becoming the athlete of the family. Watch for her as gymnast of the year in about five years.
Comments on our time
See, I can be funny and family. I don’t have to be political, like yesterday.
The politics continue to worry me. I don’t see any movement towards addressing the underlying issues of police brutality and black fear.
If you have a mind, this latest Rolling Stone piece summarizes the problem:
Gary Clark Jr.: ‘I Feel Like Every Time I Walk Out of My Goddamn House, I Could Die’
In a nearly 10-minute Instagram video, guitarist speaks out — and encourages others to do so, too
You can read it here.
I suspect that the dangerous part of the protests — the looting — is passing. Under control, without the “benefit” of the military.
Normalcy will prevail.
Tell your friends they can receive this blog by email (sign up on my web site) or simply visit my web site. Click here. There’s no paywall.
See you tomorrow, God Willing — Harry Newton
See Harry, when you stick to business, no complaints. BTW, I bought Tesla in mid $500s thinking already expensive, now raking in close to +75%, beating your Genius son’s return 🙂 …until you start losing money. I also lost some betting on more money on LADR when it was low $9s. Your timing was very good to get out of it. But I hear from contractors working at my house, business is picking up. I hope we don’t get a 2nd phase which usually is worse than the 1st.