Tag: Stock Picks (Page 1 of 2)

Robinhood Review 2022: How it Works and All you need to know about this Stock Trading App

Robinhood Review 2022: How it works and all you need to know about this stock trading app
Robinhood Trading App Review 2022 – Robinhood Review

Written by: FrankNez Team

Robinhood is an online investing platform that offers commission-free stocks with high-yield cash management offerings.

This popular stock market trading app does not charge commission for stocks and cryptocurrency trading.

Robinhood, the financial technology company offers trading in stocks, ETFs, other options, and cryptocurrency.

Moreover, this online brokerage provides web and mobile-based services which will allow you to invest and trade easily.

Additionally, the mobile-based services of this platform have made it stand out from its other competitors.

You may be wondering about many questions arising in your head about Robinhood & Robinhood stock.

No worries!

Here in this article, you’ll find the answers to your queries and get to know all the details about this popular online brokerage like- How does it make money, the pros & cons of Robinhood, Robinhood stock price, the behavior of Robinhood in cryptocurrency & its future, and benefits of long-term investing in stocks & cryptos.

Keep scrolling to read more.

Let’s begin!


         Overall Rating: 3 / 5                                               OPEN AN ACCOUNT         Account Minimum: $0         Fees: $0
Robinhood Review – Robinhood Trading app

Understanding Robinhood

With more than 13 million users, Robinhood is the best platform for active investors or younger investors who want commission-free trading and investing on mobile.

If you want to invest in cryptocurrencies like Bitcoin, Ethereum, Dogecoin, you can use this mobile and web trading platform to invest long term.

Apart from it, Robinhood (a popular stock trading app) went public in July 2021 and its share price was set at $38 for IPO (Initial Public Offering).

Also, Robinhood was listed on the Nasdaq stock exchange under the symbol “HOOD.”

Recently, Robinhood’s CEO Vlad Tenev said that the company is planning to release the feature that allows customers to trade stocks outside of market hours.

The company named this feature, “Hyper-extended hours.”

According to Bloomberg, Robinhood stock is the favorite stock of Cathie Wood’s ARK funds and they’re purchasing the stocks every week since October 2021.

Last week, ARK Funds have bought about 2.45 million shares of Robinhood markets.

Robinhood Business Model- How the company generates income

With no minimum and no fees for trading in stocks, cryptos, and ETFs, the company has to generate income as a business to be sustainable.

This online brokerage makes money from market makers and some other ways.

Here are the ways through which the company generates revenue.

Payment for Order Flow

In 2021, the company generated 75% revenue through the process payment for order flow (PFOF), in which the company directs their customer’s orders equity and options to a particular market maker and the company receives payment for this compensation.

Hence, PFOF is the major income stream for the company.

Payment for order flow unfortunately plays against retail investors.

The SEC has talked about banning the practice since it allows market makers to manipulate the stock prices.

Stock Loan Income

Robinhood generates revenue by lending margin securities to counterparties.

Furthermore, the company keeps all money it generates from lending your stock and does not share it with you.

This is a big problem because large financial institutions make more money from the user while orders are processed through dark pools.

Borrowing Uninvested Cash

Robinhood generates income by borrowing uninvested cash and depositing this cash in interest-bearing accounts.

Membership Fees for Robinhood Gold

Robinhood Gold program is a paid subscription service that allows users to benefit from premium features like margin trading, Level II Market Data, professional research, and enhanced quick access to deposits.

It is also one of the income sources of the company.

Robinhood Gold costs $5 per month.

Also, it gives a free trial of 30 days.

What can you invest in on Robinhood?

Robinhood Review
Robinhood Review 2022 – Robinhood trading app

Robinhood is a popular trading platform that allows the user to invest in stocks, cryptocurrencies, Exchange Traded Funds (ETFs), and options.

If you want to do commission-free trading in stocks, ETFs, and cryptocurrencies, then Robinhood is great for you.

Moreover, the company allows the investors to buy portions of stocks without paying the full share price.

It gives a free stock upon making referrals and opening the account.

When it comes to investing in cryptocurrencies, Robinhood allows to trade in several digital currencies including Bitcoin, BitcoinCash, Ethereum, Ethereum Classic, Litecoin, Bitcoin SV, and Dogecoin.

Most importantly, Robinhood has introduced IPO access for traders.

Besides, Robinhood does not offer the ability to invest in mutual funds, forex, bonds, and futures options.

The pros and cons

Pros 

  • Simple, Easy to Use, and Easy to navigate                          
  • Free stock, ETFs, Cryptocurrency Trading                                  
  • No account minimum   
  • IPO access                                                           
  • Cash management accounts
  • Margin investing and Fractional shares

Cons

  • Limited customer support
  • No mutual funds and retirement accounts
  • Limited investment offerings
  • Limited investing research and trading tools

The Pros explained

Robinhood, the popular brokerage in the US, is extremely easy to use and accessible for people of any age and any income.

Robinhood is a mobile-first company that differentiates it from other companies.

Its trading app and web-based platform are well-designed and more than enough to trade.

The new investors or inexperienced users can easily trade on it due to its simple and user-friendly features.

When it comes to costs, Robinhood provides commission-less trading with no minimum fees.

You can invest in stocks, cryptos, options, and ETFs for free.

Furthermore, the company offers fractional share trading, and you can invest in expensive stocks without much capital.

Additionally, it gives quick access to deposited cash.

The account opening process in Robinhood is fully digital and free.

Rather you get free stock upon opening the account and by referring the new members.

Last but not least, the company offered IPO access in July 2021 to benefit its users.

If you trade often, the savings can be huge on this platform due to the lower cost.

The Cons explained

Along with plenty of advantages, there are a few cons of it.

Robinhood does not offer to trade in mutual funds, bonds, and futures trading.

The research, educational resources of this financial company is limited.

It provides basic tools for the services and users can access professional research by purchasing paid membership of Robinhood Gold.

The customer support available in this stock trading app is limited.

Although, the company had made necessary improvements to its customer service in the last year.

The Robinhood scandal has blown up after the freezing of buying ‘meme stocks’ in 2021.

The company lacks full trust from retail investors after restricting the rights to buy specific stocks from its users.

Recommended brokerage: Vanguard

Robinhood Stock Price and Recent Developments

Robinhood stock price
Robinhood stock price – Robinhood trading app review – Robinhood Review

Robinhood stock price has dropped significantly since its IPO and is currently trading around $15 per share.

Weeks back, Robinhood’s stock price dropped to 11.61 USD and the stock hit the lowest price of 11.15 on January 24.

In June 2021, the company’s funded accounts rose to above 22 million.

Besides, Robinhood’s stock price hit an all-time high of 85% on Aug 4 at 85.00. 

On the other hand, the company stated Q4 results on January 27.

The company lost 49 cents per share on sales of 362.7 million in Q4.

In the current stock market, HOOD is one of the IPO stocks to watch.

The company is growing popular among young investors to trade stocks, cryptos, and NFTs.

Robinhood (HOOD) and Cryptocurrencies

Robinhood crypto - Robinhood cryptocurrencies, robinhood crypto list,
Robinhood cryptocurrencies – Robinhood Review – Robinhood app review

Robinhood, one of the best online stockbrokers generated huge transaction-based revenue within cryptocurrencies in Q4 2021.

It has a fast-growing cryptocurrency business as the company launched crypto gifts.

Most importantly, the company has introduced cryptocurrency wallets to 1,000 users as a part of the beta test.

Crypto wallets will help the users to transfer digital currencies in and out of the Robinhood app.

The rollout of crypto wallets may be expanded to 10,000 users in March.

Adding a wallet will help the traders to transfer their digital assets out of the online platform to invest. 

Moreover, the company is planning to test new crypto-related functionality on its stock trading app which will allow the user to get statistics, transactions on blockchain at a glance.

The introduction of crypto wallets closed the gap among Robinhood app and cryptocurrency exchanges which will increase the trading in crypto markets.

Most of the US brokers don’t offer crypto wallets, therefore the rollout of crypto wallets on Robinhood will have positive impacts on Robinhood accounts opening in the future.

When it comes to Coinbase vs Robinhood, our personal choice when it comes to investing in cryptocurrency is Coinbase.

Investing in stocks and cryptos is great in so many ways.

If you’re thinking, why should you invest in stocks and cryptos?

Here we’ve discussed the importance and benefits of long-term investing.

Read on to find ways to become financially independent.

Related: How to invest in cryptocurrency for beginners

Importance of Long-term Investing in Stocks & Cryptos

A long-term investment strategy is like holding assets such as stocks and cryptos for more than a full year.

Anything under a year is a short-term investment.

Long-term investment requires patience and discipline, but it gives incredible outcomes.

Market volatility is a prime matter in investment as the prices fluctuate regularly.

The higher the volatility, the higher the investment’s price fluctuation and the higher the risk.

Here is why you should go for long-term investment.

Long-term holdings in stocks and cryptos exhibit lower volatility, greater profits as compared to short-term.

Assets such as stocks & crypto give higher returns over a long time. It maximizes the growth potential of your savings.

Now, investment in US stocks and digital currencies is far better than bonds and gold investment.

When you watch your investment portfolio grow, your satisfaction increases more.

Stocks are long-term investments and generate better long-term returns.

The longer you invest in stocks, the longer your money will grow.

Among asset classes, the stocks have surpassed all other asset classes.

If you want to keep your money multiplying and become a better investor, it’s wise to go for long-term investment so that the market bump can’t knock you.

Because, when the prices go up and down, you can handle it by remaining patient.

Apart from making you financially strong, the investment makes you disciplined with your money.

It’s a necessary rule to succeed in your life financially.

Long-term holding means fewer trading fees because you will need to pay the fees every time you trade.

Also, it’s easy to do, you can start trading in Robinhood stock-trading app, just by implementing the strategy and patience to make the most of your returns.

Or through a more traditional broker like Vanguard.

Through investment in the stock market, you can benefit from various trading strategies.

Apart from stocks, cryptocurrency is an attractive investment and future of technology that gives high returns.

Long-term investment in cryptocurrency is good for investors to recover and get profits.

You can invest in crypto on Robinhood or cryptocurrency exchanges.

Long-term holding in popular cryptocurrencies such as Bitcoin, Ethereum can harvest good returns in 2022.

If you’re a new investor and can’t tolerate big risks, short-term investment cannot work for you, rather you must go with long-term holding.

Digital currencies are rising globally, and the number of investors is investing in them. 

They provide a safe and long-term store of value.

Like other assets, cryptocurrency also exhibits volatility.

If you’ll invest in stocks & cryptos for the long term, there would be less fear, less risk, less trading cost, lower tax rates, and more returns.

Also, you’ll be able to buy the future house, vacation, and can save your education or retirement.

Along with your regular income, trading is the way by which your money keeps multiplying, and you can earn more and do more.

The Bottom Line

Robinhood Review
Robinhood Review – Robinhood trading app review

Robinhood, the US-regulated broker is best for active traders who want to invest in assets with no commission.

Whether you’re looking to invest in cryptocurrencies or stocks, Robinhood could be an option for you due to its minimalistic trading platform that has made it easy to buy and sell assets.

The biggest perk of trading on Robinhood is a lack of fees with no costs.

However, payment for order flow is affecting the entire stock market as a whole.

Retail investors are ditching the trading app.

Whether you’re in school or college or doing a corporate job, start investing today to achieve financial wellness.

Start with a positive mindset and stay flexible because your today’s decision can make a huge difference in your life.

Become financially literate and learn how to invest in the stock market and crypto, and how to start an online business here.

I’m committed to guiding you on your journey to achieve financial freedom.

In a nutshell, long-term investment and business allows you to become financially independent and follow your dreams.

Written by: FrankNez team

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My Top Picks of Stocks to Invest in Right Now

Stocks to invest in today
Stocks to invest in right now
Stocks to invest in this week
Best stocks to invest in long term

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.

If you’re new to the investing world and haven’t started, bookmark this post on how to invest in the stock market (step by step) for beginners.

franknez.com

Welcome to Franknez.com – the blog where you can digest content on personal finance, entrepreneurship, and trending investing topics.

Lets get started!

These stocks have allowed me to diversify my portfolio very well.

You’ll get my favorite index fund, favorite ETF, and favorite REIT.

Adding these stocks to your arsenal will proof to balance your investing portfolio out a little more.

I’ve been invested in the stock market since 2019 and have noted that these picks have been a strong foundation in my portfolio.

Often times when other stocks were down, these were up.

Let’s dive right into it.

#1. EMR – Emerson Electric Co.

Emerson Electric Co. Stock

Emerson Electric Co. is an American multinational corporation that manufactures electric motors using their own patent.

The company became the first to sell electric fans in the U.S and expanded its product line to electric sewing machines, electric dental drills, and power tools.

EMR basically produces electric motors for every type of business and necessity you can think of.

Dividend Yield: 2.1%

This is a great stock to invest in because electric motors are always going to be needed.

As our society continues to innovate, electric motors will continue to play a very important role.

EMR Emerson Electric Co stock chart

EMR Annual Return

Emerson Electric Co. has an average annual return of 9%.

They are also involved in all sort of industries including automotive, life sciences & medical, water & waste, industrial energy, marine, and food & beverage just to name a few. Innovation?

They’re currently involved in several stem projects too.

#2. GPC – Genuine Parts Co.

GPC Stock Genuine Parts Company Napa Stock

Genuine Parts Company is an American service organization that distributes automotive replacement parts, industrial replacement parts, office products and electrical goods.

Parts are sold under the NAPA brand in North America.

Dividend Yield: 3%

GPC is great because cars aren’t going anywhere anytime soon. As cars evolve, this auto parts company will continue to manufacture and distribute parts.

GPC Genuine Parts Co. Nappa Auto Parts Stock Graph

GPC Annual Return

Genuine Parts Co. stock has seen an annual return ranging from 7% to 15%.

GPC has more than 10,000 locations in 14 countries and employs approximately 50,000 people.

75% of GPC’s sales come from North America, 15% from Europe, and 10% from Australia.

#3. VNQ – Vanguard Real Estate (REIT)

VNQ Real Estate REIT stock

VNQ invests in stocks issued by real estate investment trusts (REIT’s), companies that purchase office buildings, hotels, and other real property.

Dividend Yield: 3.65%

The real estate market has been HOT recently.

It’s a sellers’ market at the moment

. With property selling almost instantaneously this REIT has been performing extremely well recently.

VNQ Vanguard Real Estate REIT stock

VNQ Annual Return

VNQ’s annual yield has varied with some years reaching up to 30%.

Its history also shows annual yields between 5%-8%.

This investment seeks to provide a high level of income.

#4. VOO – S&P500

VOO S&P500 Index Fund Warren Buffett

This Vanguard ETF invests in stocks within the S&P500, representing 500 of the largest U.S companies.

Companies in the S&P500 include Apple, Tesla, Johnson & Johnson, Walt Disney, Netflix, and Coca-Cola to name a few.

You can see all the companies in this index fund in the link at the end of this article.

Dividend Yield: 1.39%

The S&P is one of the best index funds in the market.

Warren Buffett himself is a huge fan.

Fun fact: his trustee is expected to receive all of Warren’s assets with 90% of his stock picks moved in the S&P500!

When you own the S&P500 you own a piece of the fortune 500 companies.

Since they are all working and innovating towards being better every year, you can only expect this index funds’ value to go up.

VOO - S&P500 Index Fund

S&P 500 Annual Return

The S&P500’s annual yield has been approximately 10% – 11% since its inception back in 1926.

This is an index fund I’m continuously adding to my position in.

The diversity in companies it holds makes it an attractive stock for both novice and experienced investors.

Bookmark: Fiverr stock could be the next Amazon stock

#5. ESGV (ETF)

ESGV is a Vanguard ETF that invests in the top 10 companies in the U.S.

These companies include Apple, Microsoft, Amazon, Alphabet (Google), Facebook, Tesla, JP Morgan Chase & Co, Visa, Inc., United Health Group, and NVIDIA Corp.

Dividend Yield: 1.06%

Unlike the S&P500, owning this ETF means you own a piece of the top 10 companies in the U.S.

This growth ETF puts the top earners in your portfolio.

This attractive stock only knows up.

The companies in this pool are companies that are constantly innovating. It’s always day one with them.

ESGV Vanguard ETF Stock

ESGV Annual Return

This ETF is relatively new. It was created in 2018 and has gained 24%-31% in annual returns.

This type of investment is meant to provide you with the highest returns possible.

Building your position in this ETF can prove to be a great offense. Very few times you’ll find this ETF on red.

Bookmark these investing tips for beginners.

Bonus Stock

AMC Stock

Have you seen what’s been going on with AMC Entertainment recently?

This stock is set up for a short squeeze.

If you can manage to buy this stock before it takes off then you’ll be able to make a quick trade.

A subcommunity from Reddit who skyrocketed GameStop’s share price also began moving AMC Entertainment.

Well, AMC now has a bigger community due to how much more affordable its stock is than that of GameStop’s.

You can read more about this stock’s short squeeze DD (due diligence) here.

Are you already investing in one of these stocks? Let’s start a conversation.

Leave me a comment below.

Related: Retire a millionaire with the S&P 500: Is it possible?

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Stock Rover Review


Is Your Portfolio Down? 3 Tips to Navigate the Weather

is your stock portfolio down? 3 Tips to navigate the bad weather
Is your stock portfolio down? 3 Tips to navigate the bad weather

Nothing is more dissatisfying than seeing your portfolio down.

You work so hard to earn the money to invest it, finally begin to see some growth, and then the market dumps.

Now your stock portfolio is down.

Most of you aren’t ‘hedging’ against your losses like most financial institutions are either.

So, what can you do to navigate this bad weather?

Here are 3 tips that will get you through it.

franknez.com

Welcome to Franknez.com – if your stock portfolio is down right now some of you might be wondering whether you should cut your losses or not. Here’s what I’m personally doing.

Let’s dive right into it!

Join the newsletter to receive weekly market news and stock updates.

#1. Increase your position(s)

increase your position when your stock portfolio is down
Increase your position when your stock portfolio is down

One way I personally take advantage of the market when my stock portfolio is down is by increasing my positions.

If you’re a long-term stockholder like I am then you understand the current market situation is only temporary and the market always tends to bounce right back up.

This means that any stock that’s red in my portfolio is at a discount.

Some of you who are part of my private community have received alerts and notifications of when I’ve bought a dip (both stock and crypto).

It’s these types of strategies that have allowed me to weather the bad storm when my portfolios are down.

Why buy on red days?

why buy when the market is down?
Why buy when the market is down?

Buying on red days even if your portfolio is down means you will profit as soon as the market begins to trend upwards again.

If a stock you purchased is down -5% then it goes down to -10%, you can take advantage of buying the asset cheaper at -10% if you anticipate its value will go back up.

In this scenario, if the value goes up again and the original stock you purchased has broken even, then the other share(s) you bought low are up +5%.

If your conviction towards a stock or company is strong, buying heavy during the lows could significantly increase your portfolio’s value as the stock begins to climb again.

While many novice investors might panic at the sight of their assets declining in value, it’s best to stay calm and rely on your conviction and have a strategy in mind.

#2. Invest your money in other assets

Buy crypto with Coinbase
Buy crypto with Coinbase

Other assets you can invest your money in when your portfolio is down could be a business, a crypto wallet, or even in yourself.

One way I’ve invested my money during this bear market aside from stocks and cryptocurrencies has been in my business and in my health.

The reason we invest is to get a return.

So why not invest in a startup or even in yourself?

Because ultimately you are the vehicle that’s going to take you to where you want to be.

Think about how else you can make a return on the money you’re about to invest.

Nothing is ever certain, not even in the stock market.

Take a risk and invest in yourself.

Assets you can invest in other than stocks

  • Cryptocurrencies
  • NFTs
  • Startup/Side Hustle/ Business
  • Health

You’ll find that once you invest in other income generating opportunities, those same opportunities will eventually allow you to invest more into the markets and within one another.

This form of diversification is going to armor you up for when your stock portfolio is down.

Keep track of your net worth as well as the sources growing it to build your portfolio’s confidence.

#3. You can always play it passively

Long-term investing
Long-term investing

When your stock portfolio is down, you can always choose to play it passively and do nothing.

You understand building your net worth is going to take time despite what the market is going through.

Perhaps you don’t find cryptocurrencies or startups attractive, and that’s okay.

This third tip is to be patient and let your portfolio go through the growing pains.

Believe me when I say I’ve been there too.

The important thing here is to stay calm and not let your feelings control your financial decisions.

I know too well this is one of the hardest things about having money planted in the stock market.

But in the end, this all about taking in that learning experience so you can do better the next time an opportunity comes your way.

When should you cut your losses?

when should you cut your losses?

You should cut your losses only when you’ve identified an investment is a dead play or you are not seeing results after 1-2 years, especially if you’re going long on a stock or company.

Day traders cut their losses quick because they’re in the stock market for short-term gains.

Long-term investors should keep a close eye on what they’re investing in to identify whether there is future growth of a stock.

One way I’ve identified a potentially great long-term stock is by looking at the stock’s history chart.

If there’s been consistent growth for over a period of a few years, then you can assume the trajectory will follow in the coming years.

I created a list of these type of long-term stocks here.

I cut my losses on SPRT shortly after the merge with Greenridge because at that point I didn’t trust the company nor its partners.

Another stock I sold was AT&T because after a little over a year all it did was consolidate and its performance was not on parr with my expectations.

These are just my personal experiences selling stocks in the market.

AT&T has a great dividend, and I might create a portfolio specifically based on dividend stocks in the near future to further amp up my portfolio strategy.

Is your portfolio down?

Let’s start a discussion in the comment section below.

Is your portfolio down?

And if so, how are you navigating through today’s bear market?

The community and I would love to hear from you.

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Why SPY Stock is The Perfect Retirement Vehicle

SPY Stock
$SPY Stock S&P 500 ETF Warren Buffett – SPY Stock

SPY stock was the very first stock I purchased when I first began investing back in 2019.

In fact, I bought shares of the index fund under VOO from Vanguard.

I bought in at around $320 per share, SPY stock price today is worth approximately $439.

It’s crazy to believe the S&P 500 was worth $44 back in the 90s.

It’s had a quite the climb and I’m excited to see my portfolio grow with this index fund.

franknez.com spy stock

Welcome to Franknez.com – today I want to discuss with you one of my favorite stocks and why I think it’s the perfect retirement vehicle.

Lets get started!

1. SPY Stock Growth

spy stock growth

SPY stock is the perfect long term growth investment vehicle.

The S&P 500 has an incredible 917% return since inception, and a 21.2% return year-to-date.

SPY stock is they type of stock that will always move in an upwards trend because the S&P 500 index tracks the top 500 companies in the U.S.

The sentiment behind business in the U.S. to always do better than the previous year.

Companies aren’t in business to consolidate for several years.

They’re in business to provide more value the following year than they did the previous year.

It’s this type of mentality that’s going to allow SPY stock to surge throughout the coming years and decades.

[Click here for a full list of companies in the S&P 500]

Did You Know Warren Buffett Loves The S&P 500?

Warren Buffett S&P 500
SPY S&P – Spy Stock

You might know Warren Buffett for being one of the most successful stock pickers of our time.

If you follow him you’re quite aware of how much he encourages new retail investors to invest in a growth driven index fund like the S&P 500, or SPY stock (VOO).

In fact, Warren Buffett wants to move 90% of his wealth into the S&P 500 after he’s gone.

The Oracle of Omaha even said he’s instructed the trustee in charge of his estate to invest 90% of his money into the S&P 500 for his wife after he dies, Buffett told CNBC’s Becky Quick in an exclusive interview on “Squawk Box”.

WOW! That says a lot about SPY stock coming from Warren Buffett himself.

If you think about it, it took Warren so many years of trial and error to figure out his best bet was to simply invest in a long-term growth index fund.

This leads me to believe that anything else in the market could very well be played short term to add to this long term retirement vehicle.

For instance, I’m heavily invested in the momentum stock, AMC.

I’ve made a tremendous amount of gains (on paper) but don’t plan on cashing out until it squeezes.

You can bet I’m parking a ton of cash in SPY stock.

#2. SPY Stock Pays Dividends

Spy stock dividend

The S&P 500 has a dividend yield of 1.25% and an annual dividend of $5.573.

A company provides dividends, or a ‘payout’ to its shareholders for holding the stock.

It’s a little lower now than it has been before (3-5% dividend yield) but this fluctuates.

Dividends are not the same as ROI or annual returns.

Investors love dividends because it allows us to either cash in this payout, or reinvest it back into the stock.

When you reinvest your dividends back into SPY stock, you begin accumulating fractions of the share which eventually leads to the stock buying another share on its own.

Put enough cash in SPY stock and this snowball can grow quite large over the years.

I’ve been personally investing in momentum stocks this entire year so I haven’t updated my SPY stock position just yet.

However, it’s one of my top stock picks for my long term portfolio.

Let me know if you own SPY stock in the comment section of the blog below. I’d love to know.

#3. Annual Return of 13.55% In Recent Years

SPY Stock Annual Return

SPY stock has had an amazing return of 13.55% over the past 3 years. Since inception, the S&P 500 has yielded an annual return of approximately 10%.

If you make $5 million dollars from momentum trading, pay your taxes, and put at least $1 million in SPY stock then you could be earning a whopping $100k yearly return.

If you put $2 million and leave yourself with the remaining in your pocket, well then now you’re earning $200k per year and have a cool $1.3 million in your pocket.

This is just an example of how new retail investors can use SPY stock as a long term retirement vehicle that will continue to multiply your profits.

Using this same example, I would personally leave $3 million in SPY stock and leave the $300k in my pocket.

Some of this money could go into other stocks or crypto, or even other momentum trades.

The S&P 500 Always Grows

Index Fund Growth

Through the ups and downs, throughout economic downturns and abundance, SPY stock has always grown.

When is the best time to buy the S&P 500?

In my opinion, when the stock is on discount.

During the COVID pandemic the stock market tanked but the wealthy made a lot of money.

How?

Because they took advantage of the fire sale and loaded up on ‘cheap’ stock, or ‘discounted’ stock.

As stock price began to rise again, the wealthy began to see profit.

This is how the rich get richer during economic downturns.

One thing is certain, SPY stock is safer than picking individual stocks to grow your stock portfolio.

And individual stock may become volatile or may plunge and maybe even go bankrupt.

And if a company goes bankrupt, you lose all your money in that company.

SPY stock on the other hand always levels out.

If a few companies aren’t performing too well, it can always be balanced or countered by companies that are doing extremely great.

This is what makes the index fund such an attractive asset to both novice and experienced investors alike.

Have you shown someone how to invest in stocks?

Franknez.com

If you know a family member or a friend who wants to learn how to invest in stocks but hasn’t yet, send them this step by step guide for beginners I created.

It saves you the time from teaching them by walking them step by step on how to open their brokerage account with Vanguard.

I inform them on the differences between a REIT, Index Fund, and Stock.

If you liked this article be sure to bookmark it or jot down the information for your future stock picks.

You can reach out to me via social media if you have any questions as well.

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Read: My top picks of stocks to invest in right now


“Dumb Money” Gained More Than 1200% in AMC Stock Last Year

AMC Dumb Money 2022
Should you invest in AMC stock in 2022?

Dumb money may not be so dumb after all.

The group referred to as “dumb money” ended up making significant gains in 2021 from AMC stock.

Retail investors who got in early made a whopping 1200% return in their investment with the share price only sitting at $27 per share.

Those who traded the stock back in June made nearly 3000% in return when AMC reached $72 per share.

Is dumb money actually dumb?

Here’s what’s next.

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Welcome to Franknez.com – the ape community made a ruckus last year and has become a beacon for change in the markets. There’s a lot going on this year and a lot more money to be made.

Let’s get started!

AMC stock took the internet by a storm all of 2021.

It was on the top 10 list of most searched words on Google, and it was the most searched ticker symbol in the markets.

Why did AMC get so much traction?

The story is incredible.

The Data Showed These Possibilities

AMC Short Squeeze Data

You might wonder, how the heck did this stock provide investors with more than 1200% in returns?

The truth is a small group of retail investors on Reddit’s r/wallstreetbets found data that predicted it to do so.

In fact, the data says AMC can still rise much higher than its climb to $72 per share.

See, we knew two things.

AMC stock was heavily shorted, and short sellers (investors betting against the stock), eventually needed to cover.

This meant that as retail investors bought the stock, the demand for it would increase the price, causing a short squeeze (massive price influx).

The people on the opposite side of the spectrum were hedge funds, financial institutions who lost billions of dollars betting the stock would go down.

In the midst of pursuing one of the biggest trades in history, retail investors were able to save AMC Entertainment from going bankrupt.

The century old movie theatre chain raised more than $2 billion dollars in cash and began innovating ever since.

Mainstream media fought hard

What surprised retail investors is how much mainstream media actually cared about their finances.

Finance media warned investors to stay clear from the stock, eventually attacking the company and anyone who invested in it.

The Fool, MarketWatch, Benzinga, Yahoo Finance, and other finance media began attacking the ‘ape community’.

Come to find out there was a massive conflict of interest given that all these news platforms were tied to News Corp., a company indirectly owned by the biggest hedge fund shorting AMC stock, Citadel Securities.

While mainstream media might have been able to scare a few people from their money, the ape community persisted to educate the public.

My platform introduced hundreds of thousands of people to AMC stock, and now millions.

YouTubers such as Trey’s Trades and Matt Kohrs used their channels to expose the data that triggered millions of retail investors to buy the stock.

As an early adopter, my blog has educated the public on the data that predicted these price moves and has fought for a fair market through investigative journalism.

Is the AMC short squeeze over?

is AMC short squeeze over
AMC Entertainment stock was the most searched ticker in 2021

The AMC short squeeze is not over, AMC’s reported short interest is still very high.

Although you cannot buy the stock at $2 or $5 anymore, entry at $25-$27 is very cheap compared to where the price can still go.

AMC’s share price rose from $14 to $72 when the short interest dropped from 20% to 14%.

The short interest is currently at 17% meaning shorts have opened new positions.

And as long as there are this many shorts betting against AMC, they have locked in positions to be squeezed out of.

Third wave price predictions are looking at AMC trading at hundreds of dollars per share.

As retail investors continue to buy and hold the stock en masse, AMC will continue to set new all-time highs (ATH).

Should you buy AMC stock in 2022?

AMC stock 2022
“Dumb money” is still buying AMC Stock in 2022 – AMC Short squeeze 2022

There are conditions to buying AMC stock in 2022.

First, be willing to invest money you can afford to lose because nothing is certain in the markets.

The stock market is a very institution-oriented device and still very much plays in the favor of banks and hedge funds alike.

Your risk tolerance will play a massive role in this trade but could very well be worth it.

To take things into perspective, majority of the community who got into AMC last year is still holding the stock even though they can cash out massive gains.

The reason being is conviction.

AMC has so much more potential, and we are all excited to see it come to fruition this new year.

If this sounds like it could be a play for you then you might want to consider it.

Opportunities like this don’t come very often.

I guess dumb money wasn’t very dumb after all.

Read: How to invest in stocks for beginners (step-by-step)

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