I Asked My R/Wallstreetbets Friends What You Should Be Investing In. Here Is What They Said
I am going to start this blog with a fair warning. None of my co-authors or I are hedgefund managers, we did not go to school for business, we are not experts in this field. We (they) are a set of individuals who love learning about the stock market and investing. Everything written should be taken for reference only. Invest at your own risk, and do your own research.
With that being said, I know very little about investing. I am slowly learning, but for the sake of not writing another budget blog or listicle, I brought in a few friends who love to go on r/wallstreetbets and learn about investing, and have been actively doing so for years. I sent out a group message and asked if they could give my blossoms some advice on where to start investing. Here is what they said!
A. Powell
Fair Warning. I am not a financial advisor. All options below are my personal opinions, and this is not intended as financial advice. As far as my personal sentiment on the market goes, I believe we are in an inflated period and should see a correction within the near future. Also, all funds listed below are offered through Fidelity and Fidelity only. This is not an endorsement of Fidelity, this is just who I personally use for trading and investment purposes. For all market information I have, please watch “The Big Short” (P.S. That is an endorsement)
FSTFX: Fidelity® Limited Term Municipal Income Fund
This type of fund buys up debt issued bonds from municipalities who raised debt to build infrastructure, schools, etc. Avg. returns will be fairly low due to the security of the underlying assets. Avg returns over 10yrs have been at 2.11%, but will typically do well and stay safer during recessions.
FAGIX: Fidelity® Capital & Income Fund
This type of fund buys up debt/securities/equities of troubled or more financially insecure companies. This way the RoI is better due to the risk the fund takes on. This would traditionally make the fund less secure in crashes despite the basis of investment since the companies raising debt are also most at risk in a crash. Avg returns over 10yrs have been at 7.00%, but should perform slightly better than the S&P during recessions.
FBNDX: Fidelity® Investment Grade Bond Fund
This type of fund splits its investments between more secure investments in U.S. Treasury bonds/notes and more risky BBB rated investments. This way the fund can balance stability and resiliency without fully sacrificing growth in up-markets. Avg returns over 10yrs have been at 4.33%, but should perform slightly better than the S&P during recessions.
FXAIX: Fidelity® 500 Index Fund
This fund manages itself in a way that closely matches the S&P 500 weighting index. Which is a weighted average listing of 500 companies. This means this fund will closely match the market as a whole, which is a good long term position to be in if you can afford losses during crashes such as during COVID and 08. Avg returns over 10yrs have been at 13.5%
FOCPX: Fidelity® OTC Portfolio
This fund will have many similarities to the FXAIX fund, but with the main distinction that it is not wholly tied to US companies, or companies listed on the S&P 500. This gives the fund more flexibility to target growth at the cost of stability and ease of management of the S$P 500 fund. Avg returns over 10yrs have been at 19.1%
FBGRX: Fidelity® Blue Chip Growth Fund
This fund will have many similarities to the FXAIX and FOCPX fund, but with the main distinction that it exclusively targets companies worth more than $10billion. This gives the fund more flexibility to target growth at the cost of stability and ease of management of the S$P 500 fund. Avg returns over 10yrs have been at 19.3%
L. Autry
I am not a financial advisor and the plays I put up are a bit riskier and should be followed if you're looking to actively trade stocks.
Safe Bet
$AMD - AMD has had a huge comeback story the last few years in competition with Intel. They are taking more and more market share every month. They have great financials and a great plan for the next couple of years. Look for this to rise at least $20 by the end of 2021 bar any unforeseen circumstances.
Emerging
$PBW - This is a Clean Energy ETF which basically holds various stocks in a single fund. This means you are not as risky in regards to any 1 specific stock, however, if the sector is red, then your ETF will likely be red. I think this is a smarter, safer play if you are wanting to get in on the shift to cleaner energy.
$QQQJ - This is another ETF, and its holdings are in the Nasdaq but are the "next gen" or rather stocks that have the potential to make it into the top spots soon. These have high growth and offer good value.
$KERN - This is a play on the upcoming Cannabis market that the US will inevitably have. While there is no guarantee that it will be the sole compliance software used in the Cannabis industry across the states, it has a big headstart working with compliance in Colorado.
Honorable mention: $VISL (drones are coming... and they're an established company)
Risky but huge upside
$CCIV - This is a shell/blank check company that is speculated to be merging with Lucid Motors. Lucid Motors is a player in not only the EV space, but the Luxury level of cars. If CCIV indeed becomes Lucid Motors, this is a no brainer as they have tech that is ready to be driven by THIS year. Expecting a merger any week now, and not after April. The downside is that even with lots of large institutions buying this stock, there is a world in which the merger falls through and the stock goes back to the $10-$15 range.
B. Thies
Preface: I am not a financial adviser; the below references are my opinion and for information purposes only. It is not intended to be investment advice and suggest doing your own research prior to taking a position in the market. I prefer to invest in companies that I can see myself using in everyday life or those that are see making a real impact in the world. Below are 5 stocks I have in my portfolio and why I like them.
Stock #1: Apple (AAPL)
Apple has the potential to outperform the S&P 500 index (9.6%) over the next few years as many iPhone users will be upgrading to the new 5G handsets. Apple is one of the most dominant stocks due to brand loyalist and a large diversity in product offered to the market which help the company continues to grow. Over the last 10 years Apple has averaged a 27% return which is a huge reason I have a large position on Apple in my portfolio.
Chart pulled from Webull
Stock #2: Amazon (AMZN)
The amazon box and I meet at least once a week at my doorstep. In 2019 Amazon delivered 3.5 billion packages globally and in doing so also made themselves the fourth largest delivery service in the world. Amazon not only continues to grow as an E-commerce site but has expanded into groceries and web services. Amazon will likely continue expanding into additional markets and continue to increase its revenue substantially year over year. Over the last 10 years Amazon has averaged a 34% return which is why I bought slices (a piece of one stock) before I was able to afford one whole share.
Chart pulled from Webull
Stock#3: Google (GOOG)
Alphabet, Inc. Simply known as “Google” is the provider of the largest search engine in the world and best internet browser (in my opinion). Google has continued to diversify its offerings to include hardware, digital content, security, and an expanding list of services. Although Google has had some bad press revolving around antitrust laws, it will find a way to overcome these issues and continue to grow with other tech giants. I personally use google everyday and from a quick search can tell you that the average return over the last 10 years is 21%.
Chart pulled from Webull
Stock #4: Square (SQ)
Out of the pandemic grew the necessity for digital payments has grown immensely worldwide and make companies like Square more value. The digital payments market is expected to grow from roughly $79.3 Billion in 2020 to $132.5 Billion in 2025 allowing plenty of from for companies like square and PayPal to grow without having to compete heavily for market share. Square is also the owner of Cash App which has reached 15 million active monthly users as of 2018. Cash app has grown not only as a peer-to-peer payment method but also offer small loans for those who need it and now allowing users to invest in the growing crypto market. Square has averaged a 32% return over the last 10 years which is why it fills a small portion of overall portfolio.
Chart pulled from Webull
Stock #5: Plug Power (PLUG)
Plug power, a renewable energy company focusing on hydrogen and fuel cell technologies. With alternate energies becoming a larger push with the new US presidency and more countries looking to limiting the carbon footprint, PLUG projects to increase revenue from roughly $300 Million in 2020 to $17 Billion in 2030. PLUG has generated an average 10-year return of 22% and in my opinion will continue to grow as renewable energies become more affordable in the future. For these reason I have added this to my portfolio this year and will likely hold them for the long term.
Chart pulled from Webull
And there you have it! I think I am going to go open up my pocketbook and put a few dollars in the stock market today! Again, these are for reference only. Please do your own research and don’t try to sue us if you loose money.
And that is it y’all! If you have any questions about investing, feel free to reach out and comment below! If you like what you read, sign up for my newsletter so you are first to know when new education blogs are posted!
Until next time :)