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Another day older, but not deeper in debt. Tech stocks are booming. What do we do with all that cash?

Today’s CNBC headline:

Zoom shares soar after revenue more than quadruples from last year 

That’s it. You can now play tennis.

All our other tech stocks — the ones I’ve been pushing for eons — are booming also.

The list of tech stocks I like is on the right hand column of my web site. Click here.

Now is your time, dear reader, to say. “Thank You Harry.

I don’t need your money. But a few nice comments on the web site would be nice.

Now to our next issues:

What do we do with all the cash that many of us have?

Here are suggestions:

+ First: Put it in..

There’s nothing wrong with having cash — unless you do something stupid with it.

+ Second. Avoid stupid.

Stupid includes funds organized by institutions. They called everything from distress real estate, to venture funds, to buyout funds, to alternative investments.

I can’t give you all the names to avoid because they keep coming up with new names. The best thing about these funds is their initial marketing — i.e. their awesome sales skills for latching onto your money. What they do later with your money — how they “invest” it — is irrelevant, so long as there’s enough left over for them to squeeze fees for themselves forever and ever. Think I’m being cynical? Want a shoebox-full of evidence?

+ Third. Buy high yielding stocks. There are plenty in all the distressed industries, like retail real estate. Harry’s Rule: When something “safe” yields over 10%, it’s  no longer “safe.”

+ Fourth. Buy CDs and muni bonds. Don’t.  They yield nothing. NOTHING. Niente. Do I make myself clear?

+ Fifth. Buy cheap real estate.

You would think that retail stores, malls, apartments in New York and other semi-dead cities, would be going cheap. Exhibit One is yesterday’s cover:

UWS is the Upper West Side, where I have an apartment and used to live — until Covid-19 and 174 days of tennis upstate.

Four moving trucks don’t make for cheap apartments. This is the time of year when college begins, leases expire and people move. My brokers tell me New York apartments are probably down 10% to 20%. But few are on sale, since no one knows if the city is coming back soon. The only thing they know is that the City has been through a zillion crises — from the 1970s to 9/11 — and it always bounced back.

Right now there’s no reason for Susan and I to spend time there. No theater. No ballet. And outside eating on the street, where the homeless rush up and snatch your pricey food. (True story.)

There is collateral damage. When restaurants are booming, there’s plenty of food for New York’s rats. Now the rats are starving, they’ve taken over Central Park and the UWS, along with the homeless people and released criminals that our idiot mayor stuffed into a vacant UWS hotel — that normally was full of students.

+ Sixth. You can buy more tech stocks, which is what I’ve been doing. I’m working on suggestions. Watch for the next blog or two.

+ Seventh, You can buy cheap multi-family residential housing.

When Covid hit, everyone and their uncle thought tenants wouldn’t pay their rent and the value of the apartment and multi-family housing properties would plummet. Wrong. The tenants paid their rents and the price of properties rose, as buyers wanted some place to put their money that was better than Harry’s Mattress Bank.

Come to Columbia County

I bet any place outside a big dead city is booming. But I know this County. We’ve had a house here for 36 years.

Right now, you can’t find a a roofing guy, an electrician, a plumber, a contractor, a carpenter for love nor money.

If you want to live here, you may find it hard to buy a house. They’re all gone. In fact, some New Yorkers have bought houses — sight unseen — straight off the Internet and have paid way more than the asking price. The pretty pictures on the Internet didn’t show the flooding basement or the leaky roof… They can, of course, be fixed — if you can find a roofing guy, an electrician, a plumber, a contractor, a carpenter.

Thoughts for pandemic investing

+ My luck is so bad that if I bought a cemetery, people would stop dying. — Rodney Dangerfield

+ I have never hated a man enough to give his diamonds back. — Zsa Zsa Gabor

+ Money can’t buy you happiness …. But it does bring you a more pleasant form of misery. — Spike Milligan

+ I don’t feel old. I don’t feel anything until noon. Then it’s time for my nap. — Bob Hope

It’s getting cooler

Now we can play in the afternoon. That can be a reward for accomplishing something important in the morning — like taking the garbage out.

See you tomorrow — Harry Newton

 

 

 

 

  • Tom Thayer

    Harry
    Here’s a couple of 3G stocks They’ve been on fire (along with a lot of other stocks) but check them out please: SITM & XIACY
    Okay, I’ll suggest one more: RYTM

  • Carl A. Wright

    Harry,
    My vote for using your cash won’t cost a lot, but will benefit us big time. Spend the money with a trainer, a training facility or a combination of the two. Build and retain muscle and the beneficial hormones that muscles and exercise produce.

    Just two tips: Don’t work out more than twice a week so that your body has the time to grow the muscles in response to the exercise. Don’t work out more than 20 minutes and do it slowly. You want to stimulate muscle growth response. You can’t sweat them on. You get weaker when you work out; then stronger when you recover.

    • harrynewton

      I’m playing singles tennis aggressively for one and half hours a day. If I had a trainer for an hour each day or two, I’d be a better tennis player, But I don’t know what I have the patience nor the time. I prefer playing.

  • Greg

    I can’t believe how well the tech stocks you have been pushing are doing – look at Zoom, Docu, CRM. Wonder if you end up doing better this year than last. Will have to let your readers at the end of the year know. To that end, how do you know when to sell these skyrocketing tech names? Is your son kicking himself for selling HD, MSFT, AMZN, AAPL and GOOG back in early June. Odd choices to sell. It’s the Telsas, Zoom, DOCU, CHWY, PTONs type names that I would have no clue when to sell.

  • Bruce Miller

    June 30th Fauci project 100,000 covid daily cases during a hearing within 6 wks…seems the public did not hear him. Nor did any smart money tech investors. But say hay…the public is just the herd.

  • TomFromVa

    OK, here is my nice comment – for the plumber, stick with money and skip the love

  • Rich Marsanico

    Thank you, Harry!