Sheesh…
Just when TikTok Investors on X couldn’t come up with something seriously retarded, here comes the alleged “mainstream” CBS Marketwatch with this beaut:
I inherited $50,000. Is there a single stock I should invest in? Or should I put $10,000 in 5 stocks?
Now before I go and dissect the article itself, if this wasn’t written by one of the brokerages, I’ll perform oral pleasure on whatever bodily unit the author of this garbage he/her/them proclaims they have.
Excerpt:
Dear Quentin,
I have inherited $50,000 and I am thinking of investing it in dividend stocks.
My question is twofold:
1. Is there a single stock I should invest in?
2. Or are there five stocks I could each put $10,000 into?
My plan is to reinvest everything, but not make any additional contributions.
Thank you in advance for any advice.
$50,000 Richer
Nah, that doesn’t sound like something _______________ broker would promote in a time when their book was getting prepared to tank from a potential correction of severe magnitude, right?
But wait, there’s more:
Dear $50,000 Richer,
You will be $50,000 poorer if you decide to invest your entire inheritance in individual stocks.
Thankfully, some sanity from the Marketwatch reporter.
Then, he says if you decide to invest in stocks, go with mutual funds (which are run by the lowest 2% of idiot managers or 1999 computer programs) or ETFs which are the ultimate definition of a major holding company repackaged from the 1920’s.
For stock ETFs, Van Doorn says, one simple strategy is to track the performance of the S&P 500, which you can do by purchasing shares of the SPDR S&P 500 ETF Trust (SPY). Keep in mind that the S&P 500 is weighted by market capitalization, which means Apple, Microsoft and Nvidia make up 19.3% of this portfolio.
So could mix up your choice of ETFs and broaden your horizons even further. One example is the Invesco S&P 500 Equal Weight ETF (RSP), Van Doorn adds; or you might take a hybrid approach to incorporate value features (increasingly popular lately) and price momentum with portfolio resets twice a year thorough any (or all) of these:
Invesco S&P 500 Momentum ETF (SPVM) Invesco S&P MidCap Value with Momentum ETF (XMVM) Invesco S&P SmallCap Value with Momentum ETF (XSVM)
- Invesco S&P 500 Momentum ETF (SPVM)
- Invesco S&P MidCap Value with Momentum ETF (XMVM)
- Invesco S&P SmallCap Value with Momentum ETF (XSVM)
Van Doorn described Invesco’s value/momentum strategy recently.The simplest investment strategy — investing in one or five stocks — could yield equally simple regrets.
Ugh. The problem is that ETFs have never really been tested in a truly illiquid market. 2018 was the closest they came and 2020 was bailed out by the Fed with stupidity. My opinions on ETFs is long standing as they are the holding companies of this generation. Your mileage may vary and this is not investment advice.
However if you want to know why this website has its name, look up Blue Ridge Corporation and 1929.
To the author’s credit he does offer safer, boring bond alternatives, but the bond funds don’t advertise on the Bubblevision websites plus they don’t offer the experience of watching CEO’s signing boobies.
Enjoy your bubble America, it’s about to freaking pop again.
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