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!!

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!

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!