Hello investing intellectuals,
As you may already know, the economy for most people right now is not so good. The traditional jobs economy has shrunk. The unemployment numbers that are going down means people are finding more part-time jobs and jobs in the gig economy that still don’t exactly support them. Yet, somehow the stock market is reaching record highs in our time of crisis and the people who have a piece of that market are thus also reaching record highs. This is called privilege. It is a privilege for those with money but even more so for those with knowledge. Anyways, my latest stock picks are Apple and Walmart (Though in hindsight I could’ve doubled down on Netflix instead of Walmart). The reasons I picked these two companies: Apple has historically outperformed the market and has been one of my biggest winners. Is there a lot of FOMO that I didn’t get in earlier? Of course, but Apple isn’t getting smaller anytime soon. Furthermore, by making their own chips, they will cut costs significantly (Vertical integration). Walmart has been expanding during quarantine because as the largest cheap grocery store chain in the country/world, they are getting all the income from people on a budget. Before quarantine, they expanded online operations to challenge Amazon’s supremacy and were thus prepared for the new mass of online shopping during COVID. Unfortunately, without more government stimulus handouts right now, people are spending less there. Still, I am optimistic about Walmart’s future. Now, take some unsolicited advice about budgeting. A solid target goal for anyone is the 50/30/20 goal. 50 percent goes into needs like housing, food, gas, electric. 30 percent goes into “wants” such as eating out, entertainment, cars. 20 percent goes into savings or investments. Now, that doesn’t necessarily mean stocks. It could be in real estate or put away for a rainy day fund. However, the first thing to do is ALWAYS pay down high interest debt. Credit card debt is a killer in America. Never carry it. Stuff like student loan debt and mortgages you should take your time because your money can be used for other stuff. Auto loans depend on your credit score but their interest rates are still pretty horrendous. Have fun living life, Joshua So
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Where we update others about current events and how they may affect the economy and market.
Authors| Joshua So | Archives
October 2020
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