When to Buy: Playing Offense | Side Hustle 101: Pay to Play | Moral Vote

 

Investing In Yourself – Using Pillars to Build Your Core	https://urbanomics.blogspot.com/2015/04/urbanomics-pillars-path-set-for.html
Setting Budgets + Saving for Black Swans	https://urbanomics.blogspot.com/2013/02/personal-finance-budget-101-free-credit.html
	https://urbanomics.blogspot.com/2019/11/hey-henry-high-earner-not-yet-rich.html
How to Open My First Brokerage Account	https://urbanomics.blogspot.com/2015/04/personal-finance-101-starting.html
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Coming soon is a post on Health -- The Body. You have to invest in and know the data about your body. Like many people of color, I get nervous about hospitals and doctors. Thanks to my corporate job, I was exposed to annual exams and blood tests. Unfortunately, when I made the shift to being an entrepreneur I didn't keep up with my annual exams. And it may be costing me...stay tuned for a future post on Health and how that impacts your Wealth. 

Also Coming Soon - a series on #HowtoInvest. People have been reaching especially after the spikes in Gamestop, AMC, and other stock to learn the basics. I self taught myself how to invest beginning at the age of roughly 18 and have never stopped. To be a good investor and ensure you are not gambling (speculating), I'll cover (hardest parts of investing in RED):

Budgeting 101 - How to Fund Ur Investments?

Why Stocks as an Investment?

What is Ur Investment Profile + Personality?

How to Pick Stocks?

When to Buy Stocks?

How to Enter My Trade?

How Many Stocks Should I Own?

When to Sell Stocks?

Am I Speculating (Gambling)?

When To Buy A Stock - Go On Offense 

Learning From David Tepper (Street Cred: #ABilliSquad Member Net Worth: $14.5B, When He Speaks Markets Listen, Owner: Carolina Panters; Charlotte FC (Major League Soccer): David has been a buddy for a long time. If you search my blog, he was instrumental during the financial crisis of 2008. When many were scared or unsure, wondering if the horrible housing bubble would ever end...David spoke calmly about what the Federal Reserve was doing and the fact that it was "Game On". He signaled it was time to be less afraid and start investing and that's what we did here. By following David's advice, we start investing around the lows of the market and our stock portfolios benefitted greatly.

So I wanted to share the following snippet from David for my "When to Buy A Stock" series:

"Tepper says big market corrections create big opportunities for investors and they need to spot those opportunities to become successful in investing.  

The investing legend advises investors to remain updated on all the market information and conduct thorough research before investing in a company to understand the best opportunities available."

Source: By Anupam Nagar ETMARKETS.com

Thanks David and in case you didn't completely follow what he meant, here is a "Detail" breakdown:

Market corrections create big opportunities - For us regular folk that don't speak Wall Street, he's simply saying to find opportunities to buy stock when the market is off its game.

What is a Correction? Try these example(s): 

a) When LeBron James, Serena Williams, or Tom Brady has a bad game (aka: market correction), INVEST -- they are ballers and will bounce back.

b) When you stand in line for hours on Black Friday freezing waiting for low priced deals (aka: market correction), INVEST -- buy that TV because those rock bottom prices are temporary.

This week I have 8 stocks that will expire profitably:

Tegna (TGNA) - Bought months before the elections when they media companies were at their lows. This is a hedge the stock will trade higher, as I have a big position in TGNA

Navistar (NAV) - Shareholders, like myself, approved the takeover from Traton. Small, but nice profit made here

P****** - This is a subscriber alert stock. We have a big position and continue to go on offense in this position.

Wabash National (WNC) - Small position, our play is to if things can continue to re-open...trucks will be on the road.

Viacom (VIAC) - Still on offense in this position. Read my previous posts

Roku (ROKU) - Still on offense in this position. Read my previous posts; This is a hedge and will be profitable by the end of the week

Snap (SNAP) - Small position, Snapchat is finding ways to make money off advertising and it's working

Palantir - I keep hammering this stock. I told the doctor who took care of me that Government, Cloud, and Security are forces that are converging.

Roku - So nice, I traded it twice 👌

#getthebag

Side Hustle 101 - Know Your Worth

1) Someone's Listening - Skipping College Sports Isn't Insane 

Why I'm Reading: Someone's listening. To keep it short, this article is about a league being developed to COMPENSATE high school athletes in a development type league prior to them being considered or drafted for the National Basketball Association (NBA). Again, I've been a broken record - NCAA makes money, colleges make money, coaches make money (and have radio shows)...the players are one injury away from devastation. On top of the fact on 3% of college athletes will make it to the professional leagues. I can sincerely say they ARE NOT being paid their worth.

Link: The game plan: Elite players find paths to pros besides NCAA (msn.com)

Prism - Voting is a Moral Issue

1) When I Lost I Shook The Opponents Hand --- I Didn't Get Revenge 

Why I'm Watching: The Ken's did an amazing job a few weeks ago. They used their muscle to alert the business community of a troubling development. A business community that was slow in it's initial response because businesses usually stay outta of it. Laws being developed across the country after record voter turnout. As a technology subject matter expert, I find it interesting we can use our mobile phones to securely gamble on sports and even purchase lottery tickets. Oddly, voters lines remain long, drop boxes are constantly argued, and more not less restrictions are being placed on this pillar of democracy. Making "progress" in our voting process doesn't mean you have to be progressive. Thank you Ken Frazier and Ken Chenault.

Video: 

Ujima | Collective Work and Responsibility

 We often hear the phrase..."It Takes A Village", but as COVID-19 rages on I truly wonder if as a country we share those collective values. Growing up in the African community, Ujima or the belief in communal society was on display everyday. As a child, my parents were so avid that we did most things as a group...a community.  For example, when the seasons changed and spring was upon us my parents would remind our large family of the importance of being unified (Umoja) in our work and each of us being determined (Kujichagulia) in adding value to the garden we spent endless weeks of cultivating. Digging, tilling, seeding, watering, and fencing were the activities completed together until the project was done. I remember looking over at the basketball court that was calling me and my younger brothers names but my parents were adamant that we must collectively finish the task at hand first. Weeks and months later, it was hard to believe all of the plants and vegetables that were sprouting (some native to West Africa) in our backyard. I would laugh, my new "responsibility" was keeping our basketball away from the garden. 

The principle of Ujima is so important in my daily life. It helps me collectively work in Corporate America, it assists me in collaborating and debating contracts with companies/vendors, and it deepens my ties with my friends and colleagues who span many races, cultures, and points of time in my life. Successful people in Corporate America constantly talk about the importance of their network --- I call it their Ujima. Why because they use their network to collectively invest, manage risk, and build businesses together. There is not a day that goes by that I don't speak with persons in my network to grow my knowledge, challenge my thoughts, or to invest alongside with me should an opportunity exist. Unfortunately, there are not enough people of color yet that are able to invest in some of the assets I'm interested in. 

I'm sure my parents were teaching us life lessons each year we went out to garden, plant, and work together. Due to these lessons learned as a child, I was able to handle college group projects, Corporate America's hourly team meetings, and the responsibility of communicating goals and objectives that benefit my stakeholders (me, my family, my community). This is why I'm so outspoken about the African and African-American community getting stronger about defining their top 5-10 goals. Then going on an awareness campaign to educate ourselves and other communities about how helping us achieve those 5 - 10 goals will better the global community. For example, I do this for my business, myself, and I truly think this is what people like Ice Cube are trying to do when they create "plans" or "bill of rights" for our community. To avoid missteps made, this is not something to go at it alone, we need a collective to manage the risks, the optics, and fund the push.

My dad laid out our family's Ujima goals, which I think are similar to my pillars:

Education First - I remember having a stern discussion when I brought home all A's and 1 "B"; he knew I had it in me to consistently bring home all A's

Work - At 14, he used his "network" and the CEO of a local retail company gave me my first job at 14. I've never forget that summer I put in 40 hours a week @ $4.25. Boy was I tired that summer.

Health - To many peoples surprise, my father would randomly have us run down the block, and began having us participate is sports an early age. It was critical in our physical development, team/collective awareness, competitive nature, and humility in the face of defeat (we always shook hands). 

Spirituality - No matter what, we always made it to church. I remember reading scriptures to the Church as I completed confirmation and more importantly I remember how my father could lead prayers in both the Christian and Muslim faiths...not an easy task but what a way to collectively bring people together.

I wonder if our community and our plan could rally around some of these principles?? Finally, I would add in this day and age it takes financial support. We need to look to the government but also to these celebrated figures in our community to do their part. To be fair not all of them are billionaires but here a few examples of what some of my billionaire buddies give their money to which helps their communities:

David Tepper (Worth: $13.5 Billion, former minority share owner in Pittsburgh Steelers, now owner of the NFL Carolina Panthers, and MLS soccer team: Charlotte FC) - His donations of $67M to Carnegie Mellon will impact many in that community

Seth Klarman (Worth $1.5 Billion, investor trying to bring MLS soccer team to Las Vegas) - Mr. Klarman is a value investor like myself so we go way back just not as far back and me and Warren. Seth founded a foundation that clearly lays out the communities and areas of interest his donations serve: 

• Advancing understanding of the biological basis of health and illness
• Ensuring a healthy democracy
• Expanding access to vital services and enrichment opportunities in Greater Boston
• Supporting the global Jewish community and Israel

So on the 3rd Day of Kwanzaa, I remind people of Ujima. Don't just call on me for my vote. My community has needs that differ sometimes from that of other communities. It's okay to invest with me to advance, expand and support the global African community. My belief is that investments in my community will ensure a vibrant, diverse, and healthy democracy. Finally, to our growing list of million and billionaires (Jay Z, Robert F. Smith), please continue your collective work and focus on our community's goals just like my buddies David Tepper and Seth Klarman do. Your work will help our growing list of millionaires to learn how to do their part. Peace and love

Quick Stock Note: I finally bought a Roku device. I cut the cord many months back and love the decision. I do miss my sports and wonder if FUBO TV will benefit from those like me willing to pay for live sports. I'm nibbling at this trend, needs more research: Fubotv Inc (FUBO:NYSE)

Is the Stock Market "Weak"? or should you be "Right Here" (SWV Mix)

I get so weak in the knees I can hardly speak.

I lose all control and something takes over me.

In a daze and it's so amazing, it's not a phase.

I want you to stay with me, by my side.

I swallow my pride, your love is so sweet.

It knocks me right off of my feet.

I can't explain why your loving makes me weak.

    ~ Artist: SWV     Song: "Weak " 

I was jamming to some classics and decided I needed the help of SWV to describe how I and many others feel about the economy, stocks, and life right now. Yes, only the classic hits of SWV and that soulful rhythm and blues (R+B) sound of the 90s can really assist in what this market is doing and how it's making people feel. I won't spend much time on the backdrop but if you need a reminder I tried to signal what was to come back in March. Remember it didn't take a rocket scientist to figure out that the impacts of COVID-19 were going to be devastating. These simple facts were in front of us at the time:

- China and the Asia Pacific region had been shut down since early January and even Chinese New Year was canceled (something reported on each day from Beijing by Eunice Yoon and others)

- The market prior to COVID-19 was already near record levels. We hit those levels in my opinion around 2017 when I changed my investment style to ensure I wasn't holding stocks too long (which is contrary to what I believe in). While the market IMO wasn't overvalued, we were in the longest bull market ever recorded (if history serves me correct). Since then, the market continued to melt-up and made us weak in the knees that we could hardly speak. Truss 2019 was a great year, remember: Tesla, Okta, Sprint, Symantec Norton Lifelock, Audentes, Celgene. How good, I got rid of Tesla and Okta way to early. At the time, I was riding great gains, however; they continued to skyrocket further. I feel weak. To put things further into perspective Tesla and Okta aside...the remaining companies I named above ALL got bought out easily making 2019 one of my best years on record investment wise (and the worst personally as I lost my father).

- Finally, I was concerned about the US response to COVID-19. If you flip back to my March posts, I highlighted scenarios that are now playing out when there isn't much of a plan and poor tone at the top leadership --- I said you will get to a situation where US states would start to draw lines in the sand and say citizens from other states cannot cross state lines without strict conditions. Recently, the state of New York told people from 31 states you must quarantine for 14 days (IMO a statement basically saying don't bother coming). I was concerned about the US Lil Nas X culture of "Can't Nobody Tell Me Nothing" to an airborne respiratory disease... who knew that would seriously lead to daily fights about whether masks should be mandated.

So if the market is so SWV "Weak", why is the Nasdaq hitting highs everyday and my portfolio and your retirement plan feeling so good. Well that's where SWV "Right Here" comes in. The Federal Reserve and even Congress has been right here with STIMULUS. I don't have a running total but over $7 Trillion with a T has been pumped into the economy after it began tanking in March.  

Lately, there seems to be

Some insecurities

About the way I feel

Where I wanna be

Boy, you know it's with you

No one can do

The things you do to me

                                                                    ~ Artist: SWV     Song: "Right Here" 

haha The Federal Reserve came out swinging boy. Go back and look at the March lows and damn there were some insecurity about the way we felt. The things you do to us...well here is a list:

- Unemployment + $600

- Federal Moratorium on Foreclosures

- Stimulus Check

- Loans to Small Businesses (PPP)

- Economic Disaster Loans

- Purchasing Company Bonds

- $25 Billion Dollar Bailout to the Airlines

Was this response unexpected. Hell No, just look back to the Federal Reserve did back in the 2008 Financial Crisis. I wrote about it here and it even got its own name: the Tepper rally, for my dawg Billionaire David Tepper who laid out the investment thesis --- You DO NOT fight the Federal Reserve when they come in the big guns...they can print money longer than you can stay liquid (if you were betting the market would fall). And that's exactly what happened...they came in with helicopter money, making it rain.  Don't knock my hustle, read here how a strategy from a decade ago prepared us for what to expect:  Tepper - Don't Fight The Fed Reminder

I hope this wasn't complicated but I think you now get how to position yourself going into the end of year and 2021. As my friend said it best after reading my posts, the Federal Reserve and others won't let the machine fail (and this is capitalism👌).  Fast forward to today, the extra $600 unemployment boost IS NOT being renewed. A second stimulus check is coming but smaller and I believe going out to less people. The Federal Moratorium on foreclosures has been extended but what are you going to do if you are a renter...sign up for paying 1 year of back rent once you finally get a job?? This new stimulus package comes in at roughly $1Trillion which will put the government easily over $8 Trillion in newly printed debt...AND after this round I don't feel there is any appetite for more. With 2 new states recently surpassing New York in COVID cases (California, Florida) and states like Texas and Georgia never really shutting down and cases rising...I'm positioning myself for when the Federal Reserve stops pumping the economy full of steroids (whips I mean stimulus).  Delta and American have announced 25K + layoffs after their stimulus ends October 1st and I'm afraid many announcements like this will be coming if we cannot get the cases under control (basically a vaccine). I'll continue to ride the wave and not fight the Federal Reserve but I'll be sleeping with one eye open. Most of my retirement funds are in cash and I'm riding the wave from my personal investment account where I willing to take the risk. Don't get greedy.

My Free Trade Reveal: The stocks that haven't performed well in my portfolio. Notice the theme RETAIL:

COTY - Purchased @ $10  

AMC - Purchased @ $11

Foot Locker - Purchased @ $59

Kohls - Purchased @ 57

Tapestry (formerly Coach) - Purchased @ $30

Red Robin - Purchased @ $20

I was up at one time in all these positions except I believe Foot Locker and Kohls and decided to be aggressive. Lesson(s): manage risk, don't get greedy, and don't believe the hype. Restaurants and Retail are not doing well, bankruptcies are rising and I am working to get out of these positions.  Peace Out

My Predictions On the Upcoming War... (Free Picks Included)

Well I had a very interesting discussion last week on wars...and that was in a bar, so I figured I'd keep going I guess.  I could talk about North Korea but I'd rather talk about a different possible war.  I started off believing that only athletes and musicians "make it rain" and usually in dimly lit places :)

At Urbanomics, we don't leave you out in the cold, here is a quick definition from URBANDICTIONARY.COM:

Make It Rain: When you're in the club with a stack, and you throw the money up in the air... The effect is that it seems to be raining money. 

Then, I learned about Central Bankers around the world and their endless access to cash and they put guys like Lil Wayne, Adam 'Pacman' Jones, and P. Diddy to shame.  Central Bankers (around the world) are the equivalent to the US version of Ben Bernanke, the head of the Federal Reserve.  Earlier this year, I wrote about Ben and how some very smart investors (see David Tepper, Ray Dalio) were telling us that when the Fed 'makes it rain' it's our job to pick up the money and buy stocks.  We did just that and we've rode the stock market ALL THE WAY up to all time highs in the Dow Jones Industrial Average and the SP500.

Here is where the war begins...other countries don't usually like when one country prints money because their goods become cheaper and the people across the world begin buying those cheaper goods and so far this has helped the US economy. So guess what they in turn do...THAT'S RIGHT, they sometimes do the exact same thing.  So who is ready for battle, see JAPAN.  They have an official that has promised to 'make it rain' at levels that only we've seen in here in America.  Here's why I find this interesting...and how we make money:

Dow at 14000 (Pt.3) - The Markets Will Go Lower!?!

If you've followed my last few posts its very clear by now that the Dow Jones Industrial Average (DOW) is trading right around 14,000.  The Dow is a broad representation of many companies throughout the US and is often used as a indicator by many investors. These levels are significant because they are very near all-time highs and more importantly a representation of how far we've come. If we go back four years ago, the DOW was at roughly 8900 and thanks to the American people, companies, government we've bounced back almost 50%.

  In PART 1 of this series (Dow @ 14000), I tried to show you how information available to the public can be used to develop your direction on where the markets are headed.  In short you should always be invested in the stock market but when the market is cheap you should invest more and when its expensive you should pull back some.  So clicking on the link above helps to show that through a little research the average investor can pick up on some signals that assist us in knowing when to buy stocks.  And who better to get some tips from then billionaire investor, David Tepper.  

So we participated in this nice run up in the markets, however; the REAL question is... will stocks continue to go up??  I guess the first thing to point out is there will be a correction! A correction in this case will be a pull back or a move down in the stock market. Simply put, a correction will likely happen because the markets have moved up in a straight line.  And think about the markets like you think about dieting...it never goes in a straight line (no one loses all of the weight all at once).  There will be really good weeks and a few bad ones and while the markets are getting healthy and losing the weight but they haven't had any setbacks.  You can almost hang your hat on the fact that there may be a pullback because so many investors are talking about the need for one to justify that this market is for real (one with fluctuations) and not just some type of fad (like with diets).

So now its time to listen to some really smart people who believe the market(s) may go lower.  First up is Jeffery Gundlach who predicts that another crisis is coming to world markets who will try to stall by pumping money (see 'Making It Rain')...however; this story likely leads to inflation and possible default for some countries. I've read the following link and found his points very interesting:

Gundlach's Negative View On Markets

Now that you've read the article along with me, I find it interesting that Gundlach wants to buy the following hard assets: 

• Gemstones,
• Art, and 
• Commercial Real Estate

When it comes to stocks he'll be investing in the following types of equities:

• Chinese stocks
• Nat Gas producers
• Gold Mining stocks

The next investor that believes that the picture is also a little murky is Marc Faber.  Please click on the link below to hear why Marc thinks the markets are due for a pullback:

What do you believe?!? If you feel that it's intuitive that markets can't just go directly up then you may be in the camp for a pullback because that is natural and healthy.  So you could benefit by selling some of your winners and/or by waiting for a pullback to buy more stocks.

Dow At 14000 (Pt.2) - The Markets Are Going Higher!?!

You heard it here, the markets are going higher!  Okay that was in my best Jim Cramer voice.  In reality, I am actually a little nervous about the markets.  I guess I start to get nervous when family and friends usually begin to take more interest in stocks.  Usually by the time my sister is talking about the markets it means that its probably moved significantly HIGHER and she along with other non-investors are late to the party.  If you followed my last post on the Dow @ 14000 I gave you a video from billionaire investor, David Tepper.  That video was from September 24, 2010 and in that video he indicated WHY the markets were going to go up. Since September 2010 until now, the markets have soared up over 31%.  Yes believe it or not, I actually listened to this video when Tepper made his revelation that markets would go up because the Federal Reserve was continuing quantitative easing (QE). I won't bore you with what QE means, but my best analogy is he was saying the Fed is 'Making It Rain' in the club.  And think about what happens to the person that benefits when its raining money in the club...the next day they go shopping.  Well when the Fed 'Makes It Rain' on our economy guess what goes up, yes: STOCKS.  Which is why he was telling us to buy back then.  So in my mind...if you weren't picking up stocks back then you are a little late to the party and you do need to be mindful of this.

The next question is where do we go from here at Dow 14000.  Well listen to our friend David Tepper on December 17, 2012 about where he thinks the markets are headed now.


Listen for the following beginning at 2:02 in the video:
- He talks about tailwinds or good things going for the economy (Housing, Car Sales)
- There is 1 Trillion Dollars Worth of Stimulus Coming from the Fed
- The Fed will keep it up until the Unemployment (Jobs) Rate Drops to 6.5% Target

I would say he is in the camp of markets going higher until the Fed stops. And considering that the Job Rate is at 7.9%, maybe the markets go HIGHER.  But one thing I've learned is markets don't go straight up...so tread carefully.  But he's not alone, my ears perked up when I heard that Ray Dalio shared a similar point of view...stay tuned.

Dow at 14000 (Pt.1) - Are You Too Late for The Party!?!

For the first time since 2007, the Dow Jones Industrial Average has closed above the 14,000 range.  This range puts the Dow near its all time high of 14,165.  You know you're getting old when you remember where you were...when something happened years ago. I remembered the last time we where at these levels and here was the brief post I wrote about it:

Dow 14,000 in 2007

Well I took the market for granted the last time it reached these levels but this time I understand how long its been and the gravity of what it means.

Are You Late For the Party??

My initial thoughts are yes! I get a little nervous when people that don't normally bring up the stock market in normal conversations start to talk about their portfolios and the need to get in before they miss out.  That usually means its already too late.  My goal is to attempt to check my emotions to the side and I usually like to buy the markets when things have gotten pretty bad.  Its not very easy to do and sometimes you have to stomach all the critics and naysayers that say the end will never come.  I bought my first condo in 2010 and the housing market in the Midwest had been plummeting for the last few years but I did my research and truly believed a bottom was very near and the decline, which was needed, was near the end of running its course.  If you buy then (buying @ discount) you enjoy out sized gains in the future.  I navigated the markets as well as an amateur investor could have done at the time (took my share of lumps) but and pulled a significant amount of funds into safer investments.  After 2008-9 when we were calling for the world to come to an end, we needed some confidence to help reiterate when to get back in. I was very hesitant to increasing my exposure to stocks but listening to one investor in late 2010 gave many firmer ground to wade back into the markets.  So think about that question in the future as you continue to invest thoughtfully during periods where its bleak or really booming.   

Help In Getting the Timing Right

I love when investors lay their points out very quickly and in 2010 the simple points of David Tepper, a billionaire hedge fund investor, allowed many to understand why we should be in the markets. If you haven't listened to the points laid out by David, you can find the video and excerpts from that discussion here:

David Tepper Rally Video

This simple excerpt from David Tepper's discussion makes it clear (from CNBC):

"Either the economy is going to get better by itself in the next three months...What assets are going to do well? Stocks are going to do well, bonds won't do so well, gold won't do as well," he said. "Or the economy is not going to pick up in the next three months and the Fed is going to come in with QE.

"Then what's going to do well? Everything, in the near term (though) not bonds...So let's see what I got—I got two different situations: One, the economy gets better by itself, stocks are better, bonds are worse, gold is probably worse. The other situation is the fed comes in with money."

I'll conclude with my thoughts that you may be a little late to the party because David laid out the case that (1) the economy will improve and stocks do well or (2) things won't go well and the Fed will inject money (QE) making stocks do well. An indication that we should should have been in stocks enjoying the rally up until this point.  However, my next few posts will share the views of both sides who argue that from here we go HIGHER...and those that definitely think the markets go LOWER.

Housing – When will the comeback story be written?

I look at the giant housing market here in the US like a prized fighter that has seen better days. The complacency is easy to see when you compare it to other fighters (like Canada) who’ve trained harder and set higher standards, such as requiring 20-30% down payments. However, all good prize fighters don’t stay down too long and eventually bounce back. I still think that the US housing market needs to see improvement in areas such as jobs and foreclosures but this fighter is getting its feet back underneath him. As usual, I’ll remind you to not listen to the Wall Street hype men out there who are always trumpeting that everything is great in housing, look where that would have put us 2-3 years ago. You have to always do our own research! I have not done a large amount of research but I think the housing market will make a comeback similar to LL Cool J’s return on ‘Mama Said Knock You Out’.