Market Mondays
**IAN: Watch original episodes with all the highs. (he predicted this)
Last year the hype was options, now this year people are chasing NFTs.
Market is going to be different, I say. nothing that moves at that high a rate last forever. we are resetting a little bit. if you invest every month you are good. great time to buy in.
pick one person you will follow. You cannot listen to everyone.
Rashad:
Dow Jones down 1100 points. NADAQ, 600 points. For Netflix hit $450 at one point today.
IAN
you want to invest in businesses that are not bleeding through money. you are co-owners of, that don't have a lot of debt on the table. that's not fun (to go from $790 to $450).
Netflix from $700s to $350s is a big drop.
We don't have to do options right now. All these things are possible.
IAN: Zoom is dead, don't touch it.
Rashad: conservation is my biggest priority. (Marc Cuban said you have to protect your wealth)
#1 conserve #2 be composed (big rules as a trader).
Troy: I got to my 1,000 shares in Apple. 200 EMA Exponential Moving Average, in the last 200 days, it did it last year once and it did it today. gotta grab some shares, and it closed at 296.
Facebook, already got option calls on it. I shorted the stock. I loved it at 300 so I have to love it at 290.
NVIDIA, my price was $219, it was $211 so got in there.
BTI shares, added to custodial account of the kids.
**Stick to your target point! you did all the work, wait for it!***
Rashad: I never lost money in a in-the-money or close-to-the-money, long term options.
Average black family networth is 2500. if everybody is making money, who's poor?
IAN: stop following these 900% returns. Stop gambling.
***IAN reveals secrets of investing, article I did in 2016.Look it up, Steal my whole strategy. ****
Rashad: 2 companies that hit its 52 week low. One of them is Amazon.
IAN: I have Disney (bought today) and buying Amazon tomorrow. and CRWD
Its a correction for the entire tech space. next week they report. what they have coming for the year, we are 3 weeks into January. It will be my stock of the year, too big to fail.
Rashad: Square, another one that hit 52 week low.
IAN: give Square 6 to 7 months to recuperate. In a year or 2 they will be okay, they are getting their team together.
We see it in crypto. they are tied together. you are going to see when the market tanks.
Rashad: Peloton, rest in peace. stock has been crashing and fall even further. pressure for CEO to step down, pressure to sell the company. who is in consideration to buy Peloton? Apple.
5 mistakes that Peloton made and what can be learned.
1. they are hardware business who into tech. (any business that you are depending on humans to get it done, not a good business to be in)
2. didn't raise money at the right time. only 5-6 months of reserve in the company.
3. they misled the investors about how much capital was needed. a lot of stocks up went up in 2020 but when you begin to lie to not admit to the mistakes of the business, never a good sign.
4. changing the price strategy. either be premium or low end, you cant play both. subscription based business lose 5% every month no matter what. worst case, you can lose 25 percent if they don't love your product. so in a couple of months you can be out of business.
5. lifestyle creep: bought big building in NY and CEO bought a vacation home nearby. as business grows, you have to keep expenses low.
6. not knowing there was not enough demand
7. not pitching to sell to apple or google at this time last year.
Troy: what's the competitive advantage? of Peloton. not enough integration there. (no Disney plus, Youtube, no apps)
Rashad: Zoom currently 62% off its all time high. in pandemic, it went up people and schools were using. why Ian you say its dead?
IAN: Who else is in the landscape? Google, Facetime, other apps you can use.
2020-2021: Everyone was chasing gains. issue with active management, pick stocks that are going to win.
Zoom has no competitive advantage, the top 4 hedge funds were not investing in it to keep them afloat.
There was nothing that Zoom did. Great product but better things can be done with it. If Zoom died tomorrow would it devaste our lives? If Apple closed tomorrow, change the whole world. NVIDA, Google, but Zoom, we can survive.
Would Zoom be the one to go to change your child's life? No.
***Great companies don't fall 60-70% off their all time high***
Rashad: Cyber security is very important. What is your thought process in investing in couch stripe?
IAN: 52 week low. I missed my moment, C scale, option call on that.
I wanted shares in a cyber security company. but what is the cyber security company????
3 big impacts? companies with biggest war chest are going to win.
Microsoft, boring company you don't lose sleep over it
Call of duty, under their possession, HALO, under their possession. mobile gaming, CANDY CRUSH
merge that with Game Pass, its over. they will be significant player in the metaverse.
Apple and google, Microsoft and Facebook: these 4 will be big in metaverse.
Troy: Game Pass their version of a Netflix, part of community and access to library of games. they have 25 million subscribers, $16 subscriptions. 45 million a month.
IAN: what's the trend rate? If you know then you know what they will average in 2 years.
Only invest in the biggest players in the Metaverse. Some are cheaper, they are cheap for a reason.
CRYPTOCURRENCY
Crashing all week, Bitcoin was $36k ETH 3600 Solana 88 Dodgecoin 13.
How do we feel about crypto?
IAN: I thought it was going to take over the banks! Banking system works is, the banks control everything. They are not going to give up their power.
#2 all assets compete against each other for capital.
we go to 15% in inflation, we are going to get battered. what is going to give you the biggest return?
I like buying at the deepest low, so that it hurts less when they go down.
Cut the all time high by half to start (for a buy price). 20,000 in Bitcoin doesn't sound so damn crazy now does it? Be patient.
Rashad: 13,000 for the first time. biggest viewership ever. thank you!
IAN: mastery of craft, do a value add.
IAN: 20,000 for Bitcoin is a great buy in price. side note: (hasn't been that since Dec 2020)
*** Do research on the CEO of Binance Coin. Look at what's going on, couple of issues that he can face.***
Tomorrow: American Express, Microsoft, 3M will report their earnings.
Wed: Tesla, Intel
Thursday: Apple will be reporting. Wall St estimating 118 billion dollar quarter, it will break records.
Troy: Intel figured out how to get their chips faster.
IAN: go play 'who wants smoke?' (re: INTEL) great company, stock won't move.
***Troy: Yahoo Finance, pull up their charts and compare at the same time and you can see the progress: INTEL, NVIDIA, AMD. Look at the trend that they have.
look at the trend that they both have. $51 bucks. AMD was 1.61 in 2017. Members got in at $12.
It's 116 bucks right now.
AMD down 22% and Intel is 2%. Intel CEO said AMD is in the rearview mirror, will never again be in the windshield. IAN: companies don't say it, they just do it.
IAN: 34 cents in 86. 2002 19.79 to 20 bucks. this company as a stock is not good. It's not that hard. CEO is great now, but bad leadership team over the years. no hits for a long time.
Rashad: AMD, very bullish.
Troy: I like both of them at the same time, AMD and NVIDIA. I exercised the AMD options contract got 500 shares, halfway to the 1,000 shares there. My investment strategy. I create my table. my ETFs are the legs. companies I invest in are inside of those. If I have all of those, apple is inside SLQ. AMD on top of my table, NVIDIA, in top of my table. I love semi conductors. I wanted to have those individual shares.
IAN: invest in top 2 in a space, undeniable competitive advantage. visa and mastercard. we told you the top 2 in gaming.
Q/A:
Book summary: dollar can collapse due to the deficit. focus on saving and investing, and to discourage consumerism.
***are we there yet? no. close? yes. outside of Microsoft and apple what other company makes great products? Walmart, Target, China. We are not producing here at a great price. Read Dalio's book in 25 days. no excuses.***
Q: new investor, dollar cost averaging 200 to 300 a month.
Apple, VTI and VUG.
Red Panda Stimulus Package he got.
**** a low cost ETF is SPLG, its at $51.71.*****
Once you see that it continues to work, you will find ways to find the money.
Invest 80% in, if you get money on the Cashapp. We will call you in 2 months, ask for an update.
Q: VTI and VOO have similar overlap, why you recommend if one is much higher than the other
VTI is mostly gives you exposure to one sector. VOO is broader composite of overall market. VTI gives you upside in tech, VOO is offset any losses in VTI.
Rashad: opportunity in every market.
IAN: I love when markets bleed like this, 160 ticks is easy. 4 swing trades in a year, and you'll be good. if you focus. should be making 20 to 60k in these down days. 25 contracts, hit easy targets. 40 ticks go on your favor, its good. practice man, practice.
****Book recommendations: One up on Wall Street, Breaking the Habit of Being Yourself*****
SHOUT OUT: If you're a single mom, put your name in the chat. Watch me
Make you 100k in one year, single mom. investing part is the part I care about the least.
Put your name on there, we'll pick some and we will do all of it. and you get to keep it (100k)
