For once, the week ending Friday, July 23rd, 2021 went very well. The portfolios are moving up as expected after we finally saw an uptick in the stock market indices.
Keep in mind that we’ve been through a slump or market correction that started around February 16th of this year. Why? For a number of reasons as the new administration was getting its feet into the true problems of this pandemic and the economic turmoil it has created.
However, the entire fund needs to get back to all-time highs experienced back in January 2021. And once we get past that we will be back on track… imagine how tough it’s been since February 16th?
The Dilemma of Tesla and Ark Innovation
In stock investing, we may make decisions that can wreak havoc on our investment portfolios. In the case of the Western Sage Equity Fund, Tesla (TSLA) and Ark Innovation (ARKK) has been in a slump for several months. I guess I had faith in Cathie Wood, but her ETF and collection of Crypto-related investments and Tesla hasn’t been good to her.
I confess, I should’ve done my due dilligence with regard to Cathie Wood. There was a LOT of talk in the media about how she was going to be the next big investor, perhaps the next female version of Warren Buffett. But in 2021? I’m sorry to say I haven’t seen it.
It just makes one wonder, that money spent could’ve gone to the big winning stocks like AMZN, GOOG, GOOGL, SHOP, MSFT, AAPL, etc.
The Strength of the Trillion Dollar Market Cap Companies
These should be burned into our minds…
These companies are the cream of the crop: AAPL, AMZN, FB, GOOG, GOOGL, MSFT
These are the biggest U.S. companies that have had the most success, and all of them are over $1 trillion in market cap!
Investing in these companies should be a no-brainer. Their success and their products & services are ubiquitous and omnipresent in our world.
It’s safe to say that if you invested in these companies and you’re a total n00b in the stock market, you should do well.
The WSEF has done well investing in Shopify (SHOP), but who knows how far this Candian company can climb? It seems to have survived well the last 5 years and especially during this global pandemic. It has been the most successful investment in the fund.
Since We Climbed High This Past Week, What’s Next?
Once again, with the surge in the stock market this past week, the question arises… will we continue to see the same next week?
Honestly, your guess is as good as mine, but…
Many companies have quarterly earnings reports coming up, which will be crucial in the midst of a pandemic.
Monday could be a total down day. Be prepared!
Always have cash ready to scoop up good companies at the lower price.
Hold onto your winners.
Sell stocks that aren’t performing as well as you expected, but definitely sell at a profit.
Don’t lose money!
If you sell at a loss, you lose money!
That is why it’s important to ‘vet the stock’ first!