AFLAC Inc currently has a market cap of 28 billion dollars, a PE ratin of 10 and provides a dividend yield of 2.79%
Looking at their financials, we can see that last quarter they generated over 5 billion dollars, they generated profits of over 566 million dollars and they are sitting on 4 billion dollars in cash, an amazing business in my opinion.
Good afternoon and welcome to Investing4profits.com, if you have been watching the stock market for the past few weeks you have probably noticed just how volatile stocks have been, one day we get bad news and the stock market goes up, the next day we get good news and stocks go down… if you are a day trader this is heaven since volatility brings opportunities to make money, however if you are a long term investor it can be painful to see your stock market portfolio go up and down.
The question is, do you think we have finally hit the bottom and is it safe to invest in stocks right now? Well the answer to that is that nobody really knows and as everybody will tell you, I am not a financial adviser and you should do your own research before buying stocks, however there are several clues that will allow us to make decisions and to invest so we can all make money.
This article from Seeking Alpha got me thinking if this is really truth or not:
Now, before we continue I wanted to ask you if you already are invested in the stock market, if you are interested in investing in stocks and etf’s I recommend that you use the Robinhood app, as always make sure that you understand in what you are investing and do it at your own risk, however I do like the app and I use it all the time, if you sign up with my link I get a free share of a company that they chose and you will get a free stock as well, you can sign up for the Robinhood app here.
Has the stock market bottomed?
So here is my personal opinion, as you might have noticed, when the news about COVID-19 were announced, the stock market plummeted very fast, for almost 3 weeks every single stock kept on dropping and hitting new lows, the drop was so fast and aggressive that I personally was down over 60% in my portfolio, this is coming from someone who has a relative safe, blue chip dividend portfolio. The drop continued and even though things have moved sideways I am still down 30% so even though people say that the stock market has been going up the reality is that the market is slowly reacting to the news, good or bad.
In this case, what I am actually doing is being very careful how I deploy my capital, I have been averaging down on stocks that I believe will go up in the next few months and I am collecting dividends as well, I am only buying stocks when things go even lower and on days that the stocks rally I do not buy any stocks at all to protect myself from new lows.
Another strategy that I have implemented is day trading stocks in small amounts, by the end of the day my position is cash and I analyze the stock the next day to find a good entry and exit point, so far I have traded companies like $UNH, $MSFT and $AAPL. I only trade stocks that are underpriced and take profits on the daily basis.
Now, as I mentioned before, it is possible that the market could go lower however what I believe will happen is that the market will stay flat for at least a couple of quarters, it will take several months of profit growth for the stock market to start seeing highs again, while this happens I highly recommend that you either swing or day trade or invest and collect dividends.
Bottom line is, the stock market can be very unpredictable and it is very hard to predict if stocks will go up or down, all we can do is analyse and speculate, however it never hurts to have a plan and take action. First of all I always make sure to have an emergency fund and cash, that way I am not forced to sell stocks at a loss. I rarely sell stocks at a loss and the reason why I can do that is because I do not invest every single dollar that I have, I usually allocate an amount of money for a rainy day.
With this in mind there are 2 things that you can do if stocks go lower. The first is to wait and be patient… it is as simple as that. If the fundamentals are there for the stocks that you picked then all you have to do is wait and be patient, your stock will go up sooner or later and you will be able to make money.
If you do not want to invest additional cash the second thing that you can do is sell stocks that have gone really high and re-invest that money in the stocks that are much lower, this will allow you to average down and make money once the stock recovers.
I hope this information was useful to you, if you like this article please share it with your friends and family and please make sure to bookmark Investing4profits.com and come back for more soon.
If you are not invested in the markets and want to start today, open your Robinhood account today and get a free stock, link below:
Ford Stock provides a 7% yearly dividend yield, stock is down this year and will it recover, is it time to buy the dip? You decide, I like investing in dividend paying stocks for cash flow, the demand for cars is there however there are changes in the industry and Ford will need to adapt.
If you are down this is an opportunity for you to average down and get more shares at lower prices, the dividend appears to be safe based on their cash flow and cash on hand.
Current Ford price is around $7.89 and has a Market Cap of $31 billion dollars.
Today I came across this thread on Reddit regarding the worse stocks picks for 2019 and it really shows how painful the losses were for Aurora Cannabis investors, this was a tough year for $ACB and it really shows just how volatile the markets can be, I am personally down 50% and it is easy to doubt your picks and it’s easy to considering selling at a loss, here is the thread below:
When I pick a stock, I am not just buying based on the stock price or any specific valuation method, I pick my stocks based on my vision on what the future could be for a company, here is for example the reason why I picked Aurora Cannabis, first of all I consider that the industry will continue to grow in the upcoming years, you can say that they are part of the companies that are in a way pioneers on the legalization of weed and they are some of the first to market. I personally consider that they have a solid business plan and that there is enough demand to make this a viable, profitable business.
When I pick a stock this is what I invest in, I see their numbers grow every year and they continue to develop new products and strategies to bring their products to market, they offer unique products that people want and they are positioning themselves just to be one of the main providers of cannabis and to me this is what I bought in to the idea that demand will continue to grow and there will be more products that derived like edibles that will allow them to grow their revenues.
Why am I down 50% you may ask? Well its simple, I got in a bit late and paid a high price for the stock, however I have continued to invest and that has allowed me to average down and buy shares at lower prices which for me is fantastic, once again I am not buying shares to trade and make a little profit, I am buying shares now so that I can see this company grow and make millions of dollars while share prices go up, I am looking at a 5 to 10 year outlook which may or may not allow me to collect a solid return on my investment.
So why do people lose money when they invest in the stock market? Very simple, they come in looking for that quick dollar and they are not investing in what they believe in, the buy shares and look to make that quick 5 or 10 percent return to then get out and move on the the next one, the problem with this is that things do not go their way and most of the time people are impatient and they sell their shares at a loss.
I will not be selling my shares or Aurora Cannabis any time soon nor will I sell at a loss, I will continue to buy cheaper and cheaper shares and I will continue to invest small amounts and hold them long term, I am looking for that 10x return 5 or 10 years from now, I believe that the industry will continue to grow and the profits will be there for those who stayed with the company and were patient.
Should you do the same? NO, you need to do your own research and invest based on your own strategies and ideas, you need to buy shares at your own risk and only invest money that you can afford to lose.
If you have never invested or traded stocks and would like to start I use Robinhood as my main stock broker, if you sign up today with my link you and I will receive a free stock.
As you may be aware, this month there has been a lot of volatility in the stock market, if you take a look at the $SPY Chart you will see that it has been down for the last month, this is due to trade war tensions and the public being afraid that an economic recession might start soon, this brings a lot of opportunity to the stock market and with volatility there is always the opportunity to profit from these swings.
This month, I have been really active in my Robinhood Account (get a free stock), for the most part I am a long term dividend investor however I have seen a lot of blood on the street as Warren Buffett would say and this opportunity to profit has incentive me swing trade some of my positions to move my capital to stocks that I believe will appreciate even higher once the market stops being fearful.
So with that in mind, here are some of the transactions made in my portfolio, I consider Cash a position as well and I always have that ready to be deployed, however seeing so much opportunity has made me sell some of my positions for a profit and move those capital gains into other stocks that will have an upside in the future, I personally rarely sell any stock at a loss, I rather average down and continue to invest until I am able to obtain a return.
Now onto my latest Robinhood transactions:
Sold most of my Bitcoin position for a 100% return
Sold most of my Bitcoin Cash position for a 80% return
Sold my Litecoin position for a 30%
Sold my entire $V (Visa) position for a 20% return
The main reason for selling these shares is because I know there will be a higher opportunity to profit once the market recovers, sure these other stocks and cryptocurrencies could move up higher however I see a higher opportunity to cash out and re-invest the profits on the stocks that got hit due to trade wars between China and the US.
What stocks am I buying in August 2019?
Aurora Cannabis (highly discounted, trading around $5 dollars per share)
Ford – Dividend paying stock
As you can see, these might not be the most exciting companies however they provide a high upside potential and the money is made when there are big discounts on the market, my only stock that does not pay a dividend is Aurora Cannabis however this is a high volatility stock and I will profit once sentiment turns bullish.
What stocks are you buying right now, share your picks below or email me.