News / QQQTrades.Club
Mutual Fund Managers can Tell You what Stocks will Takeoff Next
Trent Grinkmeyer
June 28, 2023
The restrictions of Mutual Funds
Did you know that equity mutual funds can only allocate up to 5% of capital to an individual stock? Most equity mutual funds limit this amount so that they do not get concentrated in one individual stock. This can become a bit of a limitation as money comes into the fund via deposits from 401(k) plans or individuals. For example, if you look at one of the largest held mutual funds in 401(k) plans, American Funds Growth Fund of America, a equity fund with top holdings are Meta, Amazon and Microsoft. Once they’ve hit that upper limit of their allocation maximums, what do they do?
They begin to look for companies that are not near the size of Microsoft, Amazon and Meta.
Did you know that in 1929 only 15% off retail investors owned stocks compared to today’s 55%. Much of that money is within 401(k) or other types of retirement plans allocate to the S&P 500 Index fund. The top holdings in the SP500 are the following:
The reason I’m telling you this is because the way we invest today is much different in the past fundamental analysis approach. If you want to know what stocks are going to takeoff in the future, compare the SP500 top holding with the top holding of the largest mutual funds and find the discrepancy’s. #Nvidia use to be one of those along with #Tesla.
Subscribe today for $25 a month. You receive my latest stock ideas along with my Intermediate-Term Portfolio Allocation Ideas.
Share this article:
More in QQQTrades.Club:
Bond Market is the Truth | Yields Rise
Bond market is doing the Feds work.
Bond market is doing the Feds work. US 10 Year Treasury is about to cross the 4.50% yield level. This...
Trent Grinkmeyer
September 22, 2023
U.S. 10-Year Treasury Yield Soars: Highest Since 2007
The U.S. 10-Year Treasury Yield, a significant indicator in the financial markets, has reached a pinnacle, marking its highest level since 2007.
The U.S. 10-Year Treasury Yield, a significant indicator in the financial markets, has reached a pinnacle, marking its highest level...
Trent Grinkmeyer
September 21, 2023
Understanding the Impact of Federal Reserve Interest Rates on the Economy and Your Wallet
Will he keep raising?
Will he keep raising? The Federal Reserve’s decisions on interest rates have far-reaching implications for the economy and individual financial...
Trent Grinkmeyer
September 20, 2023
The Collapse of China and the Products that Serve the USA
Inflation fighting stock idea below.
Inflation fighting stock idea below. Peter Zeihan has been calling for the collapse of China since his latest book, “The...
Trent Grinkmeyer
September 19, 2023
Challenging the Optimism: Why a Soft Landing in 2023 Might Be Wishful Thinking
In the world of economics, the notion of a "soft landing" has often been treated as a holy grail – an ideal scenario where inflation is tamed, and the economy continues to grow without the dark cloud of recession looming overhead. However, while the majority seems to be banking on a soft landing in 2023, a contrarian perspective might suggest that such optimism is misguided and overly reliant on hope rather than a realistic assessment of the challenges ahead.
In the world of economics, the notion of a “soft landing” has often been treated as a holy grail –...
Trent Grinkmeyer
September 18, 2023
Consumers are Paying more for Food and Energy
Consumer see inflation everyday.
Consumer see inflation everyday. The Consumer Price Index (CPI) rose 0.6% in August, after increasing 0.2% in July. This is...
Trent Grinkmeyer
September 14, 2023