Top Index Funds?

Hey all,

Disclaimer, these are just my opinions and not official financial advice :). 

My two favorite index funds are Invesco QQQ (QQQ) and Fidelity Zero Large Cap Index Fund (FNILX). Here are some reasons:

Both index funds have large tech holdings (QQQ more than FNILX). I am very optimistic about tech and the potential growth it has. The next reason is both funds are very low in their 52-week ranges. This makes me think that they will most likely go up from here. Finally, FNILX has no fee or cost associated with it and no minimum investment account.

This was a quick article sharing my two current favorite index funds! Let me know what you think by leaving a comment!

Happy Trading!!

Should You Buy Airline Stocks Right Now?

With the current state of the world and the stock market, airline stocks may be very tempting to buy due to the low cost of their stocks. However, some analysts argue that the debt acquired by these airlines during the pandemic will make it hard for them to quickly turn a profit and get out of the hole they are currently in. Others argue that once travel returns to normal the price of airline stocks will jump a good amount.

One thing is for certain, if you are trying to make a quick buck, airline stocks probably aren't for you. On the other hand, if you are willing to wait out the current pandemic to make some money, I see airline stocks as a good investment.

The Argument to Buy

I think the future of airline stocks will be optimistic. According to the Transportation Security Administration (TSA), the number of daily passengers has tripled compared to April's numbers. Also, a stock like United Airlines (NASDAQ:UAl) was trading at about $79 a share in January and is currently at about $35 a share which gives it lots of room to grow as the state of the airline industry increases. Simply eventually returning to where it was at just months ago will mean great returns on your investment.

In addition to the increasing number of passengers and room for growth, as with Norwegian Cruise Line stock, I find human nature as a positive factor. I still believe that once the world goes back to normal and people are able to travel with ease of mind, I believe they will do so. Thus resurgence in travel should have nothing but good effects on the price of airline stocks.

Finally, airline stocks are already showing potential, even as quarantine continues. As I am writing this article, United Airlines (NASDAQ:UAl) is up 14.5% today, American Airlines (NASDAQ:AAL) is up 16%, and Southwest Airlines (NYSE:LUV) is up 7.5%.

The Final Consensus

As I always say, nothing is certain and the market can always surprise you. With that being said, I believe airline stocks have the potential to have great returns once the COVID pandemic is over and things return to normal. Due to the room to grow, an increasing number of passengers, and a large percentage gain in recent days, I am going to rule airline stocks as HIGH VOLTAGE. If you are ready to invest and don't mind waiting for a good return, I recommend checking out the airline stocks referenced in the paragraph above. 

Follow This Rule to Make Better Investments

A Good Rule to Follow

In this article, I want to expand on some advice that I have heard which is to invest in companies that are going to change the world. Now off the bat, this seems to be very obvious and trivial advice. However, as I expand on this topic I want to dive deeper into why these companies are the most profitable in the long run as well as how to try and identify companies that fall into this category.

Why This Advice Works

The advice to invest in companies that are going to change the world works because people are drawn to new ideas and new innovations. It is obviously possible to create a new oil company or a new electric car company and be successful. However, companies that were trailblazers in their specific fields hold an advantage whether it be due to resources, better technology, or even a following of people who respect their work. 

In addition to simply being successful, these companies are more sustainable in the long run. Take Microsoft, Apple, or Google for example. Even though the stock prices of these companies are rather high (Microsoft - $208, Apple - $388, & Google - $1520 & ), they are involved in so many areas of the tech field that they are, in my opinion, going to provide great returns for the many years to come. Also, relating back to the advice, they change people's lives. A large number of people rely on their iPhone, Amazon Prime shipping, and Microsoft Word for example to function in their daily lives.

Companies such as Microsoft, Apple, Google, and so many more continue to change how people live their lives, making their value grow by the second. However, you may be wondering how to find the next "world-changing" company and that is a good question.

Is This Company Life-Changing?

Being able to recognize if a company is going to change the world may be one of the hardest things to do when considering buying a stock. There are many factors such as competitors, resources, and if the idea is sustainable. My advice on the issue is to take a moment and consider the question. Is the company and the product they offer going to be accepted and needed by society? Would people rather sit on their couch to watch a movie than go to a movie theater (Netflix)? Yeah probably. Will people pay a yearly subscription of $99 to get almost anything delivered to them for free in the next two days (Amazon)? Yes definitely. These are things to consider when trying to find the next "big" stock or considering buying a powerhouse that is already taking over the market.

My Consensus

My final consensus is that investing in "world-changing" stocks is a difficult thing to do, maybe. We already know that companies like Apple and Microsoft have changed the world so is it too late to invest in them? Not at all. Although we never know what is going to happen, in my opinion, the long term returns of these "world-changing" stocks will continue to be massive in years to come!

Here's How Social Media Influenced Cryptocurrency

What is Dogecoin?

Dogecoin is a cryptocurrency that was introduced in 2013 as a "joke currency." So why are we talking about it? Well, Dogecoin is a prime example of how social media may be able to influence cryptocurrency and even the stock market. Could this be dangerous? Maybe. 

Social Media's Influence

In the past week or so, many users on the social media platform TikTok have been using Dogecoin to push a "get rich" agenda. These users are claiming that if the 800 million users on TikTok buy a small amount of Dogecoin, let's say $20,  then the value of this coin will skyrocket and allow the investors to make thousands of dollars!

Now obviously this sounds a little ridiculous and some are assuming this is a "Pump and Dump." A Pump and Dump occurs when people buy large amounts of a stock or cryptocurrency and then influence others to do the same, pumping up the price of the stock. Then, when the price of the holding is high, the initial investors dump all of their stock, making a large profit but then causing the value to crash. 

Did This Plan Work?

In a sense, yes the plan worked. The TikTok craze over Dogecoin did cause the coin to go up over 100% very quickly. However, after the quick rise, the dump occurred and the coin is now on the decline, and fast! The Pump and Dump method worked for some but did not achieve TikTok's "goal" of making an investment of $20 be worth thousands.

What Does This Mean?

This crazy turn of events could potentially mean that social media may be able to greatly influence the stock market and cryptocurrencies. Is this a good idea? Probably not.

Although this was not an article based on investment advice I found it as a very interesting topic to cover. Time will tell if this trend will continue or if it was just a one-time "joke" by TikTok...

  

Great Stock to Buy Now in the Midst of the Pandemic!

In the midst of the Coronavirus Pandemic that is turning the world upside down, investing may be the last thing on your mind. However, the pandemic has created a rare opportunity to invest in quality stocks for very cheap. One such stock has caught my eye in particular as a very rare opportunity: Norwegian Cruise Line (NCLH). 

Why NCLH is Cheap

So hear me out... NCLH is currently trading at $16.36 per share and has been fluctuating between $15 and $17. A month ago, NCLH hit $26.85 a share, which isn't a bad gain from what it is trading at now. I can guess that the concerning state of the world due to the Coronavirus has brought down the value of this stock and is keeping it in that $15 to $17 vicinity. People obviously aren't able to go on cruises right now which is definitely hurting the value of a company that makes it's living off of cruises...However, there is some great upside that I believe will make this stock a winner.

The Upside

There are multiple reasons why I believe the Norwegian Cruise Line Stock will have a very bright future and they are mainly based on logic. First of all, people have been cooped up in their homes during this Pandemic and I can guess that when the world returns to normal, taking a cruise doesn't sound like such a bad idea. This would increase revenue for Norwegian Cruise Lines and thus increase the value of their stock. Next, as touched upon earlier, just a month ago NCLH reached $26.85 per share. This shows that the company hasn't been merely declining throughout the whole market crash and there is some upside. Finally, NCLH has been trading at a value consistently between $35 and $60 for the past five years before the market crash. That is a very promising statistic to me because if the NCLH stock just merely returns to what it was worth, an investment now would allow you to double or triple your money! The cruise line just has to get back to normal so if it can consistently stay up in the $35 to $60 range for five years, I don't see a reason it wouldn't return there eventually. 

The Final Consensus

There is no way to know what for sure is going to happen in the coming future and nothing is a guarantee. There is always a chance that the market will surprise us and an investment here would lose money. With that being said, Norwegian Cruise Line has 36,000 employees and has the potential to provide great gains in the future. Due to the great upside of this stock, I am going to rule it a HIGH VOLTAGE stock and conclude that I believe it is a good time to buy!