Stocks I’m Selling as this Market Drops

…None. Sorry folks, but I always buy and hold for the long haul! You shouldn’t be selling anything if you original investment thesis still holds true.

Recent Buy: AAPL (Apple Inc.)

Recent Buy: 2/2/18

Today, I purchased 19 shares of AAPL (Apple Inc.) for $163.32/share or $3,103.07 in total capital. I had 0 shares of AAPL prior to this purchase. This increases my forward dividends by $47.88/year.

Although not a purist’s “dividend stock,” AAPL is a solid company that over the past few years has been increasing it’s dividend payout by nearly 10% yearly. That’s about as much as you can ask for, especially coupled with the natural growth of Apple as a business which should translate into increased share price. The price of AAPL is also at a near 6 month low, which looks like a good entry point to me. Throw in a quarter of disappointing iPhone sales, and you have a great company at a pretty good discount!

Forward Yearly Dividends: $1006.56

Just Blowing Off Steam

After a 59% rally from February 2016, it was about time the markets as a whole blew off a bit of steam. The pot was already getting frothy with pressure, so it was only a matter of when, not if.  We’ve all been spoiled lately because of an enormous lack of volatility in the stock market; we’ve seen weeks upon weeks of higher highs and new records being set so consistently it’s been almost “expected.”

But, alas. The market giveth the market taketh away, although only around 5%. The reason this market drop is causing such a raucous in the news is because we’ve been blissfully ignorant of the typical waves of ups and downs the stock market usually experiences. Especially over the last two years. Not to worry though, these moves are normal, and it’s better to have a down day or two, than to enter into a completely bear market for months or years.

 

Nothing to fear yet, just the pot blowing off some steam. Plus, everything is selling at a 2-7% discount! Buy up!

Stock Picking is Hard.

“Back in 1999, a chimpanzee named Raven picked stocks by throwing darts at a board. Her portfolio ultimately outperformed over 6,000 money managers by scoring a whopping 213% return for the year. And years later, a Russian circus chimp named Lusha assembled a portfolio that beat 94% of Russia’s mutual funds. Kind of makes you question the benefit of paying the experts.” – The Motley Fool

Stock Picking is Hard. That’s why financial advisors make so much money doing it for you! Take a look at the chart below or above, you can see the total 2017 returns for a few big name stock picking websites. Only 1 beat the actual market itself. Just 1!

This chart only emphasizes the need for everyone to research their stocks carefully before jumping in blindly, and take everything you read on the internet with a grain of salt, even when it comes from a “reputable” sources.

MW-GB415_downlo_20180109122401_NS

You might as well go find that chimpanzee, Raven, and have her pick the stocks for you. Or better yet, do you have a dog or cat in the house?

Give them something to do for 2018.

Bitcoin Cash – Live on Coinbase with dash of Insider Trading

Yesterday, at around 7pm PST, Coinbase announced it would allow trading of Bitcoin Cash (BCH). A “spin-off” of Bitcoin (BTC).  Bitcoin Cash could be considered a branch of the Bitcoin tree, despite being slightly different code used to write it. Mining the original Bitcoin Blockchain was considered by some to be getting to difficult to create new ‘blocks’ so Bitcoin Cash was created as a remedy for it and would allow more transactions to be processed faster than Bitcoin, while also allowing miners to start mining blocks that would be easier and hence, yield them more profits.

If you owned any amount of Bitcoin on or before August 1st, 2017, and held your coins on a trading exchanges that was going to accept the new Bitcoin Cash, you should have received an amount of BCH equal to the amount of BTC you owned prior. So, if you had 1 BTC on July 31st, but Aug. 1st you should have received 1 BCH.

Unless…

…you had your BTC on an exchange such as, Coinbase. In that case you didn’t receive anything. But, on December 19th, as I mentioned above, Coinbase decided it was time to allow trading of BCH.

Then all hell broke out.

All Coinbase users who did actually have BTC on August 1st received an equal amount of BCH on Dec. 19th. But within minutes, the exchanges owned by Coinbase (Coinbase & GDAX) went down due to a massive amount of traffic and all trading was suspended temporarily. Obviously, this angered a lot of users because the coins they received minutes earlier, could not be bought or sold. A few more minutes later, the price of BCH on Coinbase skyrocketed to an artificial price tag of $9,000/coin, up from $3,000 when it went live on CB. No other exchange was reporting such an astronomical price.

Fast-forward a mere half-hour and thousands of crypto-followers noticed a strange trend in the price of BCH. For days the price of BCH was hovering around $1,800/BCH coin, but then saw a pretty dramatic rise to $3800, only a few days before Coinbase was going to announce trading of BCH. This has alerted everyone in the crypto-world and even Coinbase is launching an internal investigation into it’s own employees for potential insider trading.  So, Coinbase tweeted this…

Screen Shot 2017-12-20 at 1.06.19 PM

Then, a Reddit form was unearthed that seems to show someone with a insider who works at Coinbase, hinting that BCH is “coming in the next few days.”

DRguGURX0AAxAgL.jpg-large

I have no idea if any of this is true or false, but it all is very suspicious and not something you want to hear from a company holding thousands of your dollars or coins.

In another article I will give instructions on how you can move your coins off of the Coinbase platform and into a more secure, “hard” wallet that will be theoretically impossible to have stolen or hacked. I am becoming increasingly nervous of either a hack of Coinbase itself or Coinbase having to dissolve their assets due to SEC intervention (if even possible.) What a wild ride this crypto-business is!