Individual stocks, ETFs and options all offer potential, if you know how to use them. Here’s a primer.
That is, company news, earnings announcements, negative developments for its industry or sector and a host of other factors can make any stock vulnerable to a violent price reaction. This has become more pronounced in an era where hedge funds, algorithms, and passive managers dominate daily stock market volume.
That’s a goal, and in a market that flips around like the current one, no stocks can be expected to deliver on that.. I don’t know if that has happened since I started buying individual stocks for client portfolios. But if there is ever a time to adjust your rules for “playing offense,” this is it.I substituted ETFs and call options for where stocks would normally be, in order to limit that stock-specific risk for a while.
I typically use ETFs as “tactical” side-car investments alongside that main stock portfolio. However, this year, they have become what college basketball legend Dick Vitale calls a Prime-Time-Player, or PTP .Buying a call essentially gives you the right to buy a security or index at a specified price.
Just don't follow r/wsb and you should be fine lol
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Source: Forbes - 🏆 394. / 53 Read more »