I used to invest in oil companies and banks, like BP and Shell and Lloyds above. I personally don’t think those groups will stand the test of time.
The pandemic changed everything for me. I’m looking at tech, e-commerce, etc.
I used to invest in oil companies and banks, like BP and Shell and Lloyds above. I personally don’t think those groups will stand the test of time.
The pandemic changed everything for me. I’m looking at tech, e-commerce, etc.
I expect to see a lot more expensive US stocks as fractional shares are released to more people.
Tesla topping the list at current prices? - Or is it because of current prices they top the list?
It’s because of fractionals, I think
I just don’t understand the want to owning a fraction of a share.
I feel it’s a ‘nice’ thing to have or do but is it a wise investment?
Most of the stocks in which people want to take a share are grossly overvalued in my opinion - like amazon with a PE of over 100 and NO dividend. Yikes - I don’t want to ride that roller coaster down
Why wouldn’t you?
Look at Apple for instance, over 50% increase in a year.
If you only have £100- to invest, some people will want to invest in more established companies like Apple, and that’s still a 50% increase if you invested it a year ago!
Dollar cost averaging up
My main point is that I feel most tech ‘giants’ are overvalued - a stock can continue to gain 50% indefinitely does not mean it’s valuable -On the flip side - a stock cannot drop indefinitely eventually it will to get to zero.
I’m not saying that will happen but just questioning the values.
What happens at a rights issue or a stock reversal when you own a fraction ? In my mind it’s just gambling - more so than normal investing
Best of luck
A stock being overvalued is irrelevant to the value of owning a fraction. I don’t understand the point you’re trying to make. Fractional shares make shares that would be inaccessible to many retail investors available to purchase, that’s all.
Yes it’s a nice thing to have - I’m just curious as to the hype of fractions.
Nothing against it - ownership of something is ownership however small the percentage.
They ‘hype’ is that a lot of very desirable investments are now available to more people. I would have invested in Amazon a long time ago had I the liquid for it. Now I can. Pretty simple really.
Tesla $TSLA
Physical Gold $SGLN
ITM Power $ITM
Amazon $AMZN
Nvidia $NVDA
FTSE 100 $ISF
BP $BP
Lloyds $LLOY
Aston Martin $AML
Shell $RDSB
DYOR
Why on earth is Aston Martin so popular ?
Don’t get it at all myself either.
It’s basically people hoping they recover, and trying to pick the bottom so if it’s 30 and gets back to 60 then they have doubled their money.
The risk is it drops to few pence or gets delisted.
The problem is the business is fucked imo even with Mr Stroll bailing them out. So whilst it might temporarily peak I think it’s going to suffer long term.
Banks as I’ve mentioned before is another crazy one imo, they have nothing going for them long term.
BP/Shell probably ok for the long future, but better stocks atm.
Care to explain why banks are such a bad investment longterm? Just curious.
Banks depend on large NIMs (Net Interest Margins). This is the difference between the rate at which banks borrow money (or pay on deposits) versus the rate at which banks lend. In theory, there is a lower bound rate on deposits (i.e. people will not pay to keep their money with the bank and so the lowest you can get is 0% per annum). As the central bank rate falls the rate at which banks can lend falls but the rate at which they raise funds does not fall as far. This compresses the margins and so reduces profitability. At the same time, increased compliance costs etc. are driving up the cost base for banks.
We have seen in the Eurozone how unprofitable banks can be when impacted by negative rates. Look up Canada and Australia where banks are becoming less profitable year on year as interest rates in these historically inflationary economies fall inline with the rest of the Western world. The US was the last true bastion of bank profitability but now money printers go brrrr. Banks are not a bad investment long term but you need to be sure you are not paying over the odds and are getting a yield you are comfortable with.
What @hrochfor1 said and my post above with the max charts which says it all.
Freetraders’ most popular buys this week 🗓 - #211 by phildawson
Monzo/Starling/R being the exception if/when those will shoot up and then a massive correction.