Hot - Stock Summer

Wow what a summer! It can be described best as a Hot Girl Summer considering Megan Thee Stallion's dominance on the music charts. If you are an investor like me, I asked you to flash back to a post I wrote back in 2010 on why stocks are red hot. I learned from legendary investor, David Tepper, to NOT FIGHT THE FED. They clearly have printed so much money that the stock market has come roaring back. That is why many are calling this market a K shaped rally. With the backdrop of COVID, investors and asset owners are going up and to the right and making money in this market. It's sad and very disappointing that a good majority of main street and communities of color are trending down and to the right -- as they are not benefiting from PPP loans, the Federal Reserve inflating the stock market, or even the huge boom in the housing market. 

For those that do not like or understand economics, we all just got another clear lesson this year. The Fed can print dollars and create programs that can inflate stocks, corporate businesses, houses, and precious metals (Gold, Silver, etc.) even during an environment of double digit unemployment. Like in 2010, even when things are bad you must buy assets because the Federal Reserve is telling you they won't let the economic machine fail. 

Moments like this are hard because some people can take maximum risk but I'm first generation many things in my family so you'll recall I took the less risky approach with my retirement funds. They are NOT benefiting from the upside BUT I am ensuring that I have a sizeable nest egg waiting for me down the line. Luckily for me I constructed a barbell asset portfolio. About half the dollar size of my retirement account is in a stock investment account. This strategy allowed me to have money stacked away for a rainy day (in my retirement acct) while taking advantage of the free printing of the Fed (in my stock acct). With only 1 quarter left to go in 2020, it truly is a Hot-Stock Summer. Here is a quick look at what's moving on my radar:

E-Trade Hook-Up Alert - Trade Completed

I acquire stocks like a coach recruiting players. E-TRADE Financial Corp. (ETFC) is a player I recruited based on a disruption trend I watched firsthand. Robinhood, has come in and shaken up the investment community. Free trades has disrupted the landscape and are now the NORM and all of the other players have followed suite, kicking and dragging their feet. I invested in E-TRADE after I witnessed TD-Ameritrade get purchased by Charles Schwab. Shortly thereafter, Morgan Stanley agreed with my train of thoughts and made an offer for E-TRADE. I just saw in my news feed yesterday that the Federal Reserve has approved the acquisition. So this deal is officially done. My trade terms where laid out here and yes your boy is due to collect roughly $1.2K on this trade. Time to find another stock recruit:

Link to E-TRADE position: E-TRADE Hook-up Alert


Hot Stock Summer Trades
ROKU - PLAY ON COVID; PEOPLE STAYING AT HOME, CUTTING THE CORD, AND STREAMING MEDIA

COLLECTORS UNIVERSE - SMALL CAP, ACTIVIST BUYING LARGE STAKE, DIVIDEND PLAY, 

ALIBABA - RECOVERY IN CHINA, GLOBAL PRINTING CAUSING ONLINE PURCHASES

NOVAGOLD - FED PRINTING MONEY WILL LEAD TO INFLATION, MOVING TO GOLD FOR AN UNCERTAIN FUTURE

Fall Radar Trades

DRAFTKINGS - CATALYST: STATES NEED MONEY

VIASAT - UNDERVALUED

CORE LOGIC - BARBARIANS AT THE GAME, LOOKING TO TAKE OVER THE COMPANY
CUBIC - UNDERVALUED

CROWN CASTLE - WIRELESS

IPOs/SPACs  -- RISKY / SPECULATION BUT SHOOT YOUR SHOT ON A MOONSHOT