News / Uncategorized
[Platinum Watchlist] (3.10.23)
[Platinum Watchlist] (3.10.23)
August 21, 2023
Good morning,
Markets were hit yesterday with concerns in the banking sector and specifically in Silicon Valley Bank. This morning SVB stock has been halted pending some upcoming news.
This week we exited positions in APD and BRKB based on some of the oscillator movement and knowledge of potential market moving situations which was Powell’s Testimony to congress. Since the paper trade exit from BRKB, price action has decreased over 3% and APD price action has decreased over 2.6%. Combining technical analysis with general market conditions & events helped prevent loses this week.
With market trending down, the S&P trading below the 200-day SMA and some unknowns in the banking sector, conditions are not conducive for successful swing trading at the present. We will keep the powder dry and look for more set-ups as the market present them to us.
We need to manage risk and the opportunity to not lose money is greater than risk required to make money today. This is opportunity cost. This information is for educational purposes only and is not a recommendation to buy or sell a security.
Opportunity Cost for Swing Trading:
Opportunity cost is the value of the next best alternative that is forgone when choosing one option over another. It is the cost of an economic decision in terms of the value of the next best alternative that is not chosen.
Lost opportunity cost refers to the potential benefits or profits that are missed out on when choosing one alternative over another. It is the cost of an opportunity forgone or missed, and the benefits that could have been obtained if that choice had not been made.
For Example: If an investor had invested $50,000 in the S&P 500 in 2008 and it lost nearly half its value during the financial crisis, the value of the investment would have decreased to approximately $25,000.
Assuming the investor did not sell the investment and held onto it until it recovered, which took 2 years, the value of the investment would have returned to approximately $50,000.
If instead, the investor had invested $50,000 in treasury bills paying 5% interest, the investment would have earned interest over the 2-year period. The total return on the investment would be: Interest earned = $50,000 x 0.05 x 2 = $5,000
Total value of the investment after 2 years = $50,000 + $5,000 = $55,000 Therefore, the opportunity cost of investing in the S&P 500 instead of treasury bills paying 5% interest was the difference between the returns earned from both investments over the 2-year period:
Opportunity cost = $55,000 – $50,000 = $5,000 In other words, the investor could have earned an additional $5,000 in returns over the 2-year period by investing in treasury bills paying 5% interest instead of buying and holding in the S&P 500 during the same timeframe.
Have a Great Day!
Share this article:
More in Uncategorized:
Ultra Clean Holdings (UCTT) July 25, 2024, Earnings Call Summary
Future Price Projections Participants: Rhonda Bennetto – Senior Vice President, Investor Relations Jim Scholhamer – Chief Executive Officer Sheri Savage...
[Platinum Watchlist] (3.10.23)
July 26, 2024
APPLE, MICROSOFT, NVIDIA PRICE TARGET 🎯
Short term, price targets for the top three S&P 500 holdings
Short term, price targets for the top three S&P 500 holdings The following are my price targets for the very...
![Trent Grinkmeyer in front of stock market with bull background](https://bestofusinvestors.com/uploads/2023/06/trent-e1687263019450-300x300.webp)
Trent Grinkmeyer
July 25, 2024
Nvidia's Stake in Serve Robotics: A Game-Changer for AI-Powered Delivery?
The tech world was buzzing last week when news broke that AI chip giant Nvidia owns a 10% stake in Serve Robotics, a company specializing in autonomous sidewalk delivery robots. This revelation sent Serve's stock soaring an impressive 233% over two days. But what does this mean for the future of AI-powered delivery, and should investors jump on board?
The tech world was buzzing last week when news broke that AI chip giant Nvidia owns a 10% stake in...
![Trent Grinkmeyer in front of stock market with bull background](https://bestofusinvestors.com/uploads/2023/06/trent-e1687263019450-300x300.webp)
Trent Grinkmeyer
July 24, 2024
The Commercial Real Estate Crash
Its Ripple Effect on the Banking System and The Stock Market
The commercial real estate market is on the verge of a significant downturn, potentially mirroring the infamous 2008 financial crisis....
[Platinum Watchlist] (3.10.23)
July 23, 2024
The Democratization of Compute
A Paradigm Shift in Business and Investment Artificial Intelligence (AI) is undeniably transformative, poised to revolutionize the world as we...
![Kerry Grinkmeyer in a suit standing in front of a stock chart with a bull on it](https://bestofusinvestors.com/uploads/2023/07/kerry-300x300.webp)
Kerry Grinkmeyer
July 23, 2024
Are Google and Meta Heading for a Stock Price Slump?
As an investor, it's crucial to keep a keen eye on market trends and potential shifts that could impact major players. Today, I want to discuss two tech giants that have long been darlings of Wall Street: Google and Meta. While they've enjoyed impressive growth and dominance in their respective fields, there are signs that their stock prices might face some headwinds in the near future.
As an investor, it's crucial to keep a keen eye on market trends and potential shifts that could impact major...
![Trent Grinkmeyer in front of stock market with bull background](https://bestofusinvestors.com/uploads/2023/06/trent-e1687263019450-300x300.webp)
Trent Grinkmeyer
July 23, 2024