Best investment opportunities following Home Appreciation!
Home appreciation (on avg.) was around 4.7 percent in 2000 and 7.7 percent in 2012, however in the last three years, it's been a little absurd. This is happening when we have historically the highest mortgage rates
I'm being generous if I said homes would appreciate at least 6% for the next 15 years. At that rate, a home that costs 450k in this economy would cost 1.5M $ in 2039. And imagine what the costs, insurance, and taxes associated with properties would look like.
My questions are;
Amazon Q1 Analysis Fy 2024
Amazon opened strong in 2024 with its Q4 earnings pushing the stock up. Analysts are watching this tech behemoth for many reasons but primarily due to its ability to consistently innovate its huge online retail business while making strides in the cloud computing world.
Facing competition from online sales of Walmart and Target, Amazon is capped at 1.8 trillion USD.
Q1 earnings rose 13% YoY to 43 billion USD
Surpassed Wall Street forecasts by 750 million USD
Operating income in the NA (North America) segment rose 455% to 5 billion USD
Online retail sales still account for more than 80 percent of its revenue
AWS’s revenue rose by 17% YoY with advertising sales up by 24%
AWS currently holds a 31 percent share in the cloud computing segment with its client list including big names like Meta, Netflix, and Sony. Q1’s reports suggested that AWS accounted for 61% of Amazon’s op income.
Amazon’s P/S ratio is one of the lowest among competitors making it one of the best stocks on the market
Undervalued Health Insurance Stocks
Am I the only one who thinks and are undervalued atm? They are offering reasonable TTM, forward PEs, have good EPS growth and forecast. I'm struggling to find any downsides to this. Can someone help me understand this better? they look like a solid investment for the long run
Drug Sales Are Boosting Pharma Stocks
Pharma giants have not had a moment of peace for a while now. Their quarterly estimates have beaten yet another estimate and their stock is soaring.
Some hot picks are
Here's my analysis;
Why Options Trading?
In simple words, options contracts give buyers the right to buy or sell an equity at a pre-decided price and date. However, they are not obligated to do so. Well, what does that mean? Let’s break it down further. Imagine there is a stock currently trading at $100 per share. I can go ahead and purchase an options contract that allows me to buy that stock for $110 per share in a week from now. This is considered a ‘call option,’ an option that gives me the right (I’m not obligated to) purchase a stock in the future.
Now the question is, why would I want the right to buy a stock in the future? There are many reasons for doing so but the simple answer would be less initial investment than buying the stock outright. If I go down the typical route and decide to purchase the stock outright, I’d need to put down $100.
On the other hand, with an options contract, I only need to pay the premium and if my predictions are right, I pocket the difference in a week. For instance, if I buy the contract for $2 and in a week, the stock goes up to $115, I still own the right to buy it at $110. So I’d be able to execute my option and pocket the $5 difference ($115-$110). And, I only had to invest $2 to make the bet! I think we are all starting to see the bigger picture now.
Covered Calls
Let’s say that I own 10 shares of a particular stock which is currently priced at $100. (Note: Options are always 100 shares per contract, but for convenience, I’m using a smaller number). If I want, I can sell a call option contract at the strike price of $110 to someone else for $20 (10 shares x $2). Since I own the shares to back up this contract, it’s referred to as a ‘covered call’.
Now you might be asking yourself, what happens in a week if the stock drops? Like any other business deal, you are either going to lose or make money. So let’s discuss the two scenarios;
Stock Goes Up In Price and Buyer Executes Option
If the stock goes up to $115 in a week and the buyer executes their option, I will collect $1000 from them but I’d also owe them shares at $110. And, since I own the 10 shares in question, I can simply sell them to the buyer. But, remember when I initially sold the contract, it was at $100, so selling it at $110 is still profitable for me.
Stock Remains at $100 and the Contract Expires
This is where things get interesting. So if the price of the stock doesn’t move in a week, the contract will expire worthless. But there is more to it. I get to keep my shares and pocket the premium for the contract, too. This is how investors make money with options trading.
Pros and Cons of Selling Covered Calls
Pros
Cons
Hope this helps. Happy investing!
Pharma stocks after approval
I’ve noticed a pattern among pharma stocks that seems to be a common thing but I don’t get it. A lot of the time when a product in the pipeline gets FDA approved, the price of the stock goes down. This seems counterintuitive to what should happen in theory. What can be the cause behind this? It’s not a rare occurrence either so I feel like there must be a more practical explanation for this.
Should I even evaluate US stocks anymore?
Here’s the pickle. We all know that more money is in passive funds than active funds these days which do not really care about valuations. They are merrily chasing the stock market as it moves.
Besides the billions of dollars flowing into retirement funds every two weeks, the year by year flow of money into passive instruments has also grown. is your prime example. It will be bought based on its market cap relative to the rest of the market, no one cares why its overvalued.
To add, isn’t the stock market a federally protected asset? Many Americans depend on their portfolios to fund their retirement, so I’m sure the government has measures in place to ensure a big crash doesn’t happen. We have tools to help foresee crashes and at that point the government would do something to avoid a crash.
So the question is, are metrics like PE, D/E, CAPE even useful anymore?
Are US tech stocks a buy in 2024?
The market continues to see all-time new highs with tech stocks becoming more popular than ever before. In fact, people have started leaning toward tech SPDR that outperformed S&P 500’s total return in the last year. For what felt like forever, AI was treated like the middle child but for more than a decade, the underperformance of the tech sector has been serving opportunities for long-term buyers.
Although April battled with concerns of inflation and the risk sentiment was mostly negative on tech names, we all know that tech companies are building our future. So whether it’s a phone maker or an AI company, are tech stocks a buy in 2024?
Best investment opportunities following Home Appreciation!
Home appreciation (on avg.) was around 4.7 percent in 2000 and 7.7 percent in 2012, however in the last three years, it's been a little absurd. This is happening when we have historically the highest mortgage rates
I'm being generous if I said homes would appreciate at least 6% for the next 15 years. At that rate, a home that costs 450k in this economy would cost 1.5M $ in 2039. And imagine what the costs, insurance, and taxes associated with properties would look like.
My questions are;
Amazon Q1 Analysis Fy 2024
Amazon opened strong in 2024 with its Q4 earnings pushing the stock up. Analysts are watching this tech behemoth for many reasons but primarily due to its ability to consistently innovate its huge online retail business while making strides in the cloud computing world.
Facing competition from online sales of Walmart and Target, Amazon is capped at 1.8 trillion USD.
Q1 earnings rose 13% YoY to 43 billion USD
Surpassed Wall Street forecasts by 750 million USD
Operating income in the NA (North America) segment rose 455% to 5 billion USD
Online retail sales still account for more than 80 percent of its revenue
AWS’s revenue rose by 17% YoY with advertising sales up by 24%
AWS currently holds a 31 percent share in the cloud computing segment with its client list including big names like Meta, Netflix, and Sony. Q1’s reports suggested that AWS accounted for 61% of Amazon’s op income.
Amazon’s P/S ratio is one of the lowest among competitors making it one of the best stocks on the market
Undervalued Health Insurance Stocks
Am I the only one who thinks and are undervalued atm? They are offering reasonable TTM, forward PEs, have good EPS growth and forecast. I'm struggling to find any downsides to this. Can someone help me understand this better? they look like a solid investment for the long run
Drug Sales Are Boosting Pharma Stocks
Pharma giants have not had a moment of peace for a while now. Their quarterly estimates have beaten yet another estimate and their stock is soaring.
Some hot picks are
Here's my analysis;
Why Options Trading?
In simple words, options contracts give buyers the right to buy or sell an equity at a pre-decided price and date. However, they are not obligated to do so. Well, what does that mean? Let’s break it down further. Imagine there is a stock currently trading at $100 per share. I can go ahead and purchase an options contract that allows me to buy that stock for $110 per share in a week from now. This is considered a ‘call option,’ an option that gives me the right (I’m not obligated to) purchase a stock in the future.
Now the question is, why would I want the right to buy a stock in the future? There are many reasons for doing so but the simple answer would be less initial investment than buying the stock outright. If I go down the typical route and decide to purchase the stock outright, I’d need to put down $100.
On the other hand, with an options contract, I only need to pay the premium and if my predictions are right, I pocket the difference in a week. For instance, if I buy the contract for $2 and in a week, the stock goes up to $115, I still own the right to buy it at $110. So I’d be able to execute my option and pocket the $5 difference ($115-$110). And, I only had to invest $2 to make the bet! I think we are all starting to see the bigger picture now.
Covered Calls
Let’s say that I own 10 shares of a particular stock which is currently priced at $100. (Note: Options are always 100 shares per contract, but for convenience, I’m using a smaller number). If I want, I can sell a call option contract at the strike price of $110 to someone else for $20 (10 shares x $2). Since I own the shares to back up this contract, it’s referred to as a ‘covered call’.
Now you might be asking yourself, what happens in a week if the stock drops? Like any other business deal, you are either going to lose or make money. So let’s discuss the two scenarios;
Stock Goes Up In Price and Buyer Executes Option
If the stock goes up to $115 in a week and the buyer executes their option, I will collect $1000 from them but I’d also owe them shares at $110. And, since I own the 10 shares in question, I can simply sell them to the buyer. But, remember when I initially sold the contract, it was at $100, so selling it at $110 is still profitable for me.
Stock Remains at $100 and the Contract Expires
This is where things get interesting. So if the price of the stock doesn’t move in a week, the contract will expire worthless. But there is more to it. I get to keep my shares and pocket the premium for the contract, too. This is how investors make money with options trading.
Pros and Cons of Selling Covered Calls
Pros
Cons
Hope this helps. Happy investing!
Pharma stocks after approval
I’ve noticed a pattern among pharma stocks that seems to be a common thing but I don’t get it. A lot of the time when a product in the pipeline gets FDA approved, the price of the stock goes down. This seems counterintuitive to what should happen in theory. What can be the cause behind this? It’s not a rare occurrence either so I feel like there must be a more practical explanation for this.
Should I even evaluate US stocks anymore?
Here’s the pickle. We all know that more money is in passive funds than active funds these days which do not really care about valuations. They are merrily chasing the stock market as it moves.
Besides the billions of dollars flowing into retirement funds every two weeks, the year by year flow of money into passive instruments has also grown. is your prime example. It will be bought based on its market cap relative to the rest of the market, no one cares why its overvalued.
To add, isn’t the stock market a federally protected asset? Many Americans depend on their portfolios to fund their retirement, so I’m sure the government has measures in place to ensure a big crash doesn’t happen. We have tools to help foresee crashes and at that point the government would do something to avoid a crash.
So the question is, are metrics like PE, D/E, CAPE even useful anymore?
Are US tech stocks a buy in 2024?
The market continues to see all-time new highs with tech stocks becoming more popular than ever before. In fact, people have started leaning toward tech SPDR that outperformed S&P 500’s total return in the last year. For what felt like forever, AI was treated like the middle child but for more than a decade, the underperformance of the tech sector has been serving opportunities for long-term buyers.
Although April battled with concerns of inflation and the risk sentiment was mostly negative on tech names, we all know that tech companies are building our future. So whether it’s a phone maker or an AI company, are tech stocks a buy in 2024?