That’s right, even in today’s bear market, retail investors have big opportunity right now.
If you’re a new investor or entered the market during the bull run, chances are your portfolio is down significantly.
But don’t let your first bear market shake you off because there are numerous opportunities out there that have the potential to yield big returns.
If you’ve been reading my blog for a while now, you’ve more than likely capitalized on opportunities such as AMC, HYMC, Shiba Inu Coin, Terra Classic, and Bitcoin during properly and fortunately timed moments.
So, what’s new?
In this article, I’m going to go over the opportunities I see that lie ahead for retail investors.
None of the information on my blog is financial advice but rather speculative content based on current information and trends in the market.
And with that being said, let’s get started.
Not Invested in The Markets Yet?
If you or someone you know are not invested in the markets yet, the two articles below are going to walk you through, step-by-step on how to buy stocks for the very first time and how to buy cryptocurrency for the very first time, too.
Much information on how to invest in the markets is outdated so I wanted to create easy guides for beginners.
Remember, one of the greatest wealth you can share with someone else is that of knowledge.
Opportunities in the Stock Market Today
During a bear market share prices tend to tumble, hence why many long-term investor’s portfolios tend to lose value.
And although we can’t entirely time the bottom, we know that at some point the stock market is at a massive fire sale.
Value investors such as you and I can pick up shares from our favorite companies at these low prices before the market reverses trend.
Economists, analysts, and entrepreneurs alike predict there is still room for another 10%-15% drop in the markets.
But for the record, these are just predictions after all.
The point here is for value investors to capitalize on this falling trend by purchasing low and holding during the next bull market.
Whether you choose to capitalize on opportunities presented in a bull market or not will ultimately be up to you.
However, capitalizing during a bull market will require value investors to buy during a bear market, not during the bull market.
After being involved in the retail community for almost three years now, there are stocks and crypto that just stand out as having big potential during the next bull run and I’m going to discuss them below.
Stocks Worth Buying During a Bear Market
None of the information provided below is financial advice, but rather speculative in nature based on market trends and current information at the time of publication.
AMC Entertainment Stock (AMC)
You’ve probably heard all the ruckus on AMC and ‘meme stocks’.
It’s true, the stock jumped from $5 per share to an all-time high of $72 per share.
AMC Entertainment stock is currently trading below $6 again due to this bear market.
What makes this stock such an interesting value investment is that it has a huge community made up of millions of people who plan to take its current price up again.
Plus, the company has beat earnings every quarter since 2021.
Investing in the largest movie theater chain in the world could prove to pay out big during the next bull market.
SPY Stock (SPY)
I’ve talked about SPY stock numerous times on my blog.
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Let’s dive right into it.
Compounding starts with reinvesting
The list below is made up of cash dividend paying stocks, companies with enough cash at hand which allows them to pay cash dividends to its investors every quarter.
The key here is to ensure that you opt in to ‘reinvest’ these cash dividends back into the asset so that your number of shares automatically compound every quarter.
On some occasions, the default setting is set to ‘cash’ instead of ‘reinvest’, which means your broker account will receive the cash dividend as a form of payment and settle in your funds like a deposit.
When you’ve built a strong retirement portfolio and you’re ready to claim the fruit of your labor many years from now, then you’ll want to begin taking that big cash.
But in the meantime, we’re focusing on setting ourselves up for that chapter in our lives so make sure you opt in to ‘reinvest’ that cash dividend.
Over time, you will see your number of shares grow fractionally and then eventually turn into whole numbers.
This process will continue repeating as you continue to fund your cash dividend stock portfolio.
Which Stocks Can Take Care of You Forever?
Building wealth is a constant journey of increasing your income and investing in assets that can take care of you forever.
If you would like me to publish more content on how to increase your income let me know in the comments section at the end of the article.
Granted that you have the capability to invest now during this bear market, here is a list of cash dividend paying stocks that can take care of you forever.
GPC has paid $3.42 per share but is currently paying investors during this bear market $0.90 per share.
Genuine Parts Company is an American service organization engaged in the distribution of automotive replacement parts, industrial replacement parts, office products and electrical/electronic materials.
#3. VNQ (Real Estate REIT)
Dividend Yield: 3.53%
VNQ has paid $2.86 per share but is currently paying investors approximately $0.56 per share in today’s bear market.
VNQ is Vanguard’s real estate ETF which invests in stocks issued by real estate investment trusts (REITs), companies that purchase office buildings, hotels, and other real property.
#4. OMF (One Main Holdings, Inc.)
Dividend Yield: 7.96%
OMF currently pays investors $0.95 per share but has paid them as much as $6.80 per share during the bull market.
OneMain Holdings, Inc. is an American financial services holding company that provides loan products, offers credit cards, and other personal loans.
#5. T (AT&T)
Dividend Yield: 9.71%
AT&T is currently paying shareholders $0.28 per share but has paid investors $1.60 in the past.
AT&T Inc. is an American multinational telecommunications holding company offering internet and cellular services.
#6. NRZ (Real Estate REIT)
Dividend Yield: 9.85%
NRZ stock is currently paying investors $0.25 per share but has paid $1 per share before.
New Residential is a publicly traded mortgage real estate investment trust with a diversified portfolio and a strong track record of performance.
#7. EMR (Emerson Electric Co.)
Dividend Yield: 2.45%
EMR pays shareholders $0.51 per share but has paid investors $2.05 per share prior to today’s bear market.
Emerson Electric Co. is an American multinational corporation headquartered in Ferguson, Missouri.
The Fortune 500 company manufactures products and provides engineering services for industrial, commercial, and consumer markets.
#8. ESGV (ETF)
Dividend Yield: 1.26%
ESGV currently pays shareholders $0.20 but has paid investors $0.88 per share in the past.
ESGV tracks the performance of large-, mid-, and small-capitalization stocks.
The ETF specifically excludes stocks of certain companies related to the following: adult entertainment, alcohol, tobacco, cannabis, gambling, chemical and biological weapons, cluster munitions, anti-personnel landmines, nuclear weapons, conventional military weapons, civilian firearms, nuclear power, and coal, oil, or gas.
Investing in other stocks that aren’t paying cash dividends could be a great way to raise capital fast.
One example is Tesla, AMC, GameStop, etc.
Retail investors who were able to jump on these stocks early were able to capitalize on massive price fluctuations.
The key here is to get in early, otherwise you may end up holding substantially large losses.
If you’re going to invest in individual companies, make sure you’ve done your due diligence and cash out when in profit.
Send this list to someone you know!
Share this list of the best dividend stocks to buy right now with someone you know who is invested in the market.
I personally hold these stocks in my stock portfolio and figured I’d share with my readers which dividend stocks I recommend checking out.
I’d love to hear your thoughts on this list – do you hold any?
There comes a point when you realize that in order to build wealth it will require you to build multiple streams of income. The average millionaire has seven. The stock market is one way you can invest your earned income in order to start earning passive income and multiply your money. Here’s how to invest in the stock market step by step for beginners.
Welcome to Franknez.com – the blog where you can digest content on personal finance, entrepreneurship, market news, and trending investing topics.
Lets get started!
I’ve been investing in the stock market since 2019.
When I learned how to open a brokerage account and buy company stock, I knew I had to show people how to do it too.
Everything I found online was outdated so I wanted to make it easy for people to start.
Benefits of investing in the stock market
One of the greatest benefits of investing in the stock market is that you get to hedge against inflation.
Inflation is at an all-time high right now and simply letting your money lose its value isn’t going to create wealth.
The stock market also provides an average return of 7%-8% annually which means those CDs and high yielding savings accounts are a thing of the past.
Even so, you can always create a portfolio bringing in 20%+ annual returns!
In June of 2021, AMC shareholders saw a whopping 3000% return on their investment at its high.
GameStop shareholders saw about half!
Although these trades are much different anomalies then traditional long-term investing, it paints a picture of the power of the market.
Let’s get you started!
#1. Set a Budget When Planning to Invest
Before you begin to invest you will need to set a budget on your first investment(s).
The great thing about the stock market is that you can invest with as little as $50 or so depending on the cost of a share.
A share is a fraction of a company you can own and earn money from as the company grows and profits over a period of time.
If you set a budget of $200 and the share of a company you want to invest in costs $50 then you can purchase (4) four shares of said company.
If a month later the shares you purchased are worth $60 each then your shares would now be worth $240, resulting in a $40 gain.
This is how investing in the stock market works.
Note: I highly recommend having your emergency fund built prior to proceeding with investing in the stock market.
It is important to highlight that the money you invest in the stock market will need to be money you can tolerate losing.
The stock market is volatile meaning the value of your assets is constantly going up and down.
Something to keep in mind is that the value of your investments can go down just as fast if not faster than they went up.
Now, this is not addressed to scare you. The stock on average has an annual return of 6-8% per year.
Why should you invest in stocks?
Investing in stocks is a great way to diversify your portfolio.
You don’t want to keep all your eggs in one basket.
For this reason, the wealthy invest in companies they believe have long-term potential to thrive and to multiply their investment.
#2. Know What to Invest In
Now that you’ve set a budget you’ll need to know what you want to invest in.
Once you do, find the stock market symbol of the company on Google search engine.
If you wanted to invest in Coca-Cola for example, you’d search ‘stock market symbol for Coca-Cola’ on Google.
You’ll see that the NYSE (New York Stock Exchange) symbol for Coca-Cola is KO.
This is how you will identify and search for companies to invest in when you’re in the market to buy stocks.
Here are some different type of investments you can invest in within the NYSE.
A stock is a share of a company just like Coca-Cola.
Buying a share from one specific company is a stock.
Stocks are good to purchase if you strongly believe in the continued success of your choice of company.
Invest in companies that have room to grow and are constantly innovating.
Stocks I personally favor are Tesla, Apple, and Amazon.
These tech companies are always innovating therefore I have strong conviction towards their continued growth and success.
An index fund is a fund that tracks and follows the index (growth) of a group of companies.
When you own a share of an index fund, you own a percentage of a pool of companies oppose to just one company.
What makes an index fund great is that if a company within an index fund isn’t performing very well there are other companies that may balance the overall performance of the fund resulting in a fair return.
A popular choice is the S&P500.
This index fund tracks the performance of the top 500 companies in the United States.
This type of investment tends to be a less risky and yield great profits over the long run.
It’s an investors favorite and I personally hold shares in the S&P500.
I’ve found a fortune! And I want to share it with you. These stocks have allowed me to profit and snowball my investments within as little as a year. I understand stock picking can be quite difficult. Sometimes you just need someone to provide you with a list of stocks that has worked for them. Here are my top picks of stocks to invest in right now.
The company is going to be accepting cryptocurrency as a form of payment and is also in the works to getting licensing agreements that will allow it to premier live sports events and even live concerts.
Carvana is currently the fastest growing used car dealer in the United States. And for good reason too, but more on that later. Carvana Stock, ticker symbol CVNA is up almost 50% this year-to-date.
The stock has had an incredible runup since its inception back in 2017 when it was only worth $11. The stock is up more than 3000% in only 4 years. That averages to an astonishing 750% yearly return! Will Carvana stock keep going up? Or is it overvalued now?
Welcome to Franknez.com – today I want to go over stats, charts, and predictions on Carvana stock. Why? The company might just have some more room for growth.
Lets get started!
I came across Carvana stock when I was actually looking up the previous BMW M4 model online. I was curious to see how they were doing in the market and that’s when I stumbled across Carvana.com.
It wasn’t until after my experience on the website that I decided to look at the Carvana stock price. I looked at the 1 month, 6 month, and YTD chart and wasn’t surprised.
There’s a lot I want to go over so grab a drink or a snack and hang out with me for a minute.
Why Is Carvana Stock Going Up?
Carvana has had a great earnings report both Q1 and Q2 of this year, 2021. The company beat Q4 of 2020 by 31.72% in earnings per share, and Q2 beat Q1 this year of 2021 by a whopping 165.21% in earnings per share.
The company is doing a great job at earning revenue and keeping a positive cash flow. Carvana earned $3.34 billion dollars in revenue this Q2 which is a 198.39% increase from Q1 when it earned $2.24 billion in revenue.
Carvana’s current net income this second quarter was a whopping $22 million compared to being negative last quarter. Carvana is seeing some positive cash flow now and for this reason is why Carvana stock is rising.
Because Carvana is both a traditional business and eCommerce platform, we can expect more of the tech side to be automated in the near future.
Starting up the tech side costs money, which is why we are seeing the company finally begin to reach higher earnings. The eCommerce side of the business is now performing as it should, attracting more and more buyers to the user experience.
See, at Carvana you don’t have to leave your home to purchase a vehicle. Carvana has done an amazing job at configurating every vehicle at their dealer for an online shopping experience.
What makes Carvana so unique is that no other dealer is doing this. Carvana buys vehicles and stores them at their locations. They then create an online model of the exact vehicle with 360′ degree enhancement that you can toggle right from your phone or laptop.
The images are high quality and you get to look at the exact vehicle you’re looking to buy. They even display bullet points wherever the car has minor damage (if it has any) and provides you with an image of the discrepancy (as shown below).
What’s amazing though is the user experience. You also have the availability to view the interior of the vehicle and access the key feature information from within.
When you decide you’re going to buy a car with Carvana, they deliver your vehicle directly to your home. It’s this convenience in the marketplace that sells and why it makes Carvana an attractive choice to buy a vehicle from.
Carvana stock certainly has room for growth. The company is still relatively new and as innovation and practicality grows, so will the company earnings and share price with it.
If we look at Carvana’s stock chart trend then we can see that it’s had a steady growth for the past 4 years in a row.
Even as companies shut down during the start of the pandemic in 2020, the company kept growing. It’s these type of companies that have innovation and an online platform that will be the future of America.
Just like Fiverr stock, the online sector is where scalability is massive. I believe Fiverr could be the Amazon for freelancers. This online marketplace is dominating its space by offering freelancers all around the world a place to sell their services from home.
Carvana’s eCommerce platform can allow people around the globe to purchase vehicles directly from them rather than going into a local dealership or specific dealership.
The potential is certainly massive in my opinion.
How High Will The Stock Go?
Carvana stock could be a great long term stock to hold. The company is still new with lots of room for growth. They are definitely changing the way we buy cars today. Like any eCommerce or tech company, Carvana stock has the potential to reach the high hundred mark to even 4-figures per share.
The company will have to continue to innovate and dominate in order to accomplish this. My Carvana stock prediction is that the price action will skyrocket throughout this decade.
There’s an online business boom that’s going to take place very soon as more and more companies begin to evolve. Whether it’s a hybrid online business model like Carvana, or a full online business like Fiverr, there is no limit to scalability online.
Carvana’s competitors include both CarGurus and CarMax. Both of these companies sell vehicles but don’t utilize an innovative eCommerce platform such as Carvana does for it’s users.
Unlike Carvana or CarMax, CarGuru doesn’t have its own dealerships. CarGuru sells cars from other dealerships and gets a cut from prospects who contact the dealers straight from CarGuru’s website.
CarMax is a more direct competitor to Carvana, though it doesn’t use the tech Carvana does. Instead, it has a more traditional car dealer business model.
Carvana is in the lead and I believe the company will continue to further innovate down the road.
“The more awareness that’s being built, I think the more understanding and eventually adoption and acceptance of buying a car online,” he says. “Certainly when you look back 10 years ago, to where it’s gotten now, it’s been crazy the growth that’s happening there.” Words from Ryan Keeton, via InsideHook.
More People Want Online Services
According to a survey conducted by Root & Associates, 53% of U.S consumers would be either extremely or very likely to purchase a vehicle entirely online. 59% said they prefer to conduct business on a website provided that they’re able to test drive the vehicle before purchasing it.
86 percent of those surveyed by Root & Associates said that they’d choose to do business with dealerships that offered online sales rather than those that didn’t, via. The Washington Post.
Roots & Associates says that only 35% of dealers are interested in selling vehicles via their website. That’s incredible. It’s for this sole reason that Carvana has more market share online and are leaders in this sector.
Most car dealers aren’t even willing to take this route. They fail to understand that online business models are the future. It’s incredible to think just how far Carvana can scale their services.
Could they possibly one day sell more Toyotas nationwide than Toyota dealerships? We’re just going to have to find out now aren’t we.
Does Carvana Pay Dividends?
Carvana does not currently pay dividends to its shareholders. This is rather common for a brand new company with only a few years being public.
Offering dividends is something companies can incentivize to their investors as the company continues to grow and yield promising returns.
Right now, Carvana is in the growth process. Dividends could be an incentive for perhaps another year down the road as the car company continues to scale.
So, Is Carvana Stock A Buy?
Carvana stock is certainly a buy if you have a strong conviction towards the online business sectors and marketplaces. Online business models are scaling businesses quickly and shooting up their stock price as well.
The stock market has currently been volatile so I would personally wait for the markets to dip. If you’re able to catch Carvana stock while the market is on fire, I would buy the stock on discount.
Stock market crashes are indeed the best times to bulk up on your favorite stocks at a discount.
How To Buy Carvana Stock
If you’re not invested in the stock market yet, first you’ll need to open a brokerage account using Vanguard or Fidelity for example, which are free to use by the way. Once you create your account you’ll be able to fund it and buy stock.