Whatever happened to the popular stocks like FANG ? Facebook, Amazon, Netflix and Google? Since early this year, there has been no more acronyms, no more new “buzzwords” to help investors gauge sentiment. Of all the said stocks, I only really monitor and trade Facebook because it is the one in my price range, plus also I am a regular user so I know about its power of engagement. OK then so here comes the quarterly report, which is stellar on revenues and sales, however, the outlook for repeat performance, they say, is dim. I was thinking — why “cop out” already? There’s a lot that can still be done for them to say the ad sales can not be improved upon. Anyway, this about face of Facebook is going to get the stock dumped some more — it’s like they hung up a sign that says “growth stops here”.
I would sugget you hang on to your cash before doing any buying of stocks despite what investment analysts are saying like keeping the “strong buy” or price targets above the current prices. I, for one have to wean myself from wanting to buy previous “favorite” stocks since there are better / more attractive options considering:
1.) Value – check that it is below 17. FB stock has PE ratio of 61 versus say, AAPL which has a PE of 13.41
2.) Income – those that pay above 3% and continue to increase through the years. Dividend-wise, FB pays none, zero, zilch.
3.) Defensive / safe haven – stocks that still make money with a lean economy, and with the politics mixing up financial markets, if everything goes to poo with the Election, Brexit, Fed interest rate hike > FB may still get people chattering on the site, but talk is cheap, FB is not gold.
OK so really, most popular stocks like FB is a growth story, and if growth is not in the cards (as the FB company executives have already said), then there is limited upside. Now if they do manage to get more business out of China, then maybe they can crank up growth numbers again. Or if millions more Chinese immigrate per quarter and open FB accounts elsewhere.
Anyway, looking out at the horizon with the US election coming in a few days, there seems to be no support that can hold prices with the neck and neck polls, I’m thinking the best bearish position to use is an Options strategy — called “Buy Put” for today, because like, there’s no one going to venture on a bullish / bargain hunting position on a Friday, given that the Election is Tuesday (so near yet so far — as it happens a minute is a long time in politics). With Buying a Put today, you have a minimal outlay which you can close within the day as it meets your profit-taking exit.
Also another good Options trade, if you have more experience is to open a Call Bear spread which lets you take advantage of the fall in price of the stock but also the time value of the Call Option 🙂 a bit of reverse-thinking needed but can be very lucrative.
I will be conducting my workshop next Saturday November 26 (and webinars to follow) on investing in the US Market. If you are looking for world-class stocks, income, risk management and leverage (the ability to use little of your money to invest double (or more) in stocks, and still pay very little finance cost — this is certainly the market to invest in!
Can you invest straight into the US market without experience? Yes you can. It is the US market that sets the tone for the world markets anyway. You just need to get the right start knowing how the market works. That’s why I am offering in tandem with the US Investing workshop our Invest Right Foundation Workshop in which you will discover the investing mindset you need, managing the risks, and systems to take profits that could give you the prime advantage in this business. Remember, it is not just about the stocks. It is how you do things with the right knowledge, emotional and mental preparation. It is best to learn to invest right now so you too can get in position with added security and confidence!
Here again are our fantastic value events with their freebies:
1st Event : “Invest Right Foundation Workshop”
November 26, 2016 830am-12nn
Ortigas area (exact location upon registration)
Early-Bird Rate : 2,000 pesos (Regular rate : 3,000 pesos)
Freebies : Full eBook of “High Heeled Traders (worth 800 pesos), Investing Kit (no need to start from scratch – priceless!). We will hold your hand as you start to invest to help you achieve added security and confidence!
2nd Event : “US Investing Workshop”
November 26, 2016 1-530pm
Early-Bird Rate : 5,000 pesos (Regular rate : 8,000 pesos)
With FREE attendance to the morning session and the freebies that come with it!
To learn more about the workshop topics – please visit this link :
Learn more about investing in the US market in this link!