20 LARGE CAP STOCKS TO INVEST IN

 Following are list of 20 stocks which are safe to invest in for near future. Even if they go down, due to market correction, these are some great companies which are going to outperform overall market given 3 to 5 year time frame. 

They are:

Amazon (AMZN), Mastercard (MA), Nvidia (NVDA), Disney (DIS), Abbvie (ABBV), 

SalesForce (CRM), Costco (COST), Pinduoduo (PDD), Honeywell (HON), Citigroup (C), 

Bristol Myers (BMY), Boeing (BA), Starbucks (SBUX), Raytheon (RTX), American Express (AXP), 

3M (MMM), CVS, Target (TGT), Square (SQ) and Intuitive Surgical (ISRG). 

These list of companies has range of companies to cover multiple industries. These companies are all worth over 100 billion in market cap, so the selection is from large cap industries and hence risk level is low. 

Stock Market Beginner Advice

 Full disclosure: I have been trading stocks since 2007. Lehmann brothers collapse destroyed my account in 2008. Although, I was investing from 2007 till 2016 - intermediately - I was not a full time trader until 2017. 

From 2017, I have spend roughly 40-60 hours on a weekly basis, doing lot of analysis and following is my advice for any beginner. 

Step 1: Open a stock trading account. (Although professionally speaking, TD Ameritrade, E-Trade are two of the best trading websites - if you are a beginner - Robinhood's user interface is very customer friendly.)

(You may choose following link to open a Robinhood account: https://join.robinhood.com/viralp56)

Step 2: Invest 5$ in the following 5 ETF's

• SPY
• QQQ
• IWM
• INDA
• FXI

SPY will cover 500 top companies trading in United States.

QQQ will cover Nasdaq's top 100 companies in United States.  

IWM will cover top 2000 United States companies - many of them are small and mid caps. 

INDA will cover top companies from India (an emerging market)

FXI will cover top companies from China (perhaps the next global leader)

Step 3: 

Set up a recurring payment of 5$ on daily basis in each of the above 5 ETF's (Monday to Friday).

Note: This will ensure you are covered for downturn as well as you are averaging out on uptrend. 

Step 4: 

Enjoy nice 8 to 10% return on an average per year. 

Step 5 (Optional): 

Thank me after 10 years when you have more than 100% Gain on your investment :)

Edit 1: Follow above method at least for your first 10,000$. Once you reach that threshold and wanted to jump in individual stocks, please invest in any of the following three buckets based on your risk tolerance. 

https://viralpatel15.blogspot.com/2022/04/my-favorites-stock-compilation-list.html

Invincible Media won

 Leftist media has declared Joe Biden has won the election. There are certain states where margin of victory is so small, that there is going to be recounts. So expect the unexpected. But in the long game - this is a victory to China. 

Bill Clinton was a democrat but he was a southern democrat. Many of his policies were left leaning but only slightly. His war against drugs policy, some of the financial reforms etc were more or less centrist. It is through Obama's administration when USA started leaning towards Socialism. Providing healthcare through government was the first step, restricting banks through lot of regulations was second and so on. Another significant progress that was made during Obama's administration was taking the control of Media houses. Before 2008 - there was a left leaning media - but there was also platform for being unbiased opinion (CNN) and right wing voices (FOX). However, a place where there was plenty of opportunity for right wing and centrist voices was "Social Media". Trump took complete advantage of Twitter, Facebook etc to get elected through Social Media. 

However, things changed in last four years. There are no platforms available for right wings. Hollywood movies ensured plenty of content delivered to project right wing is the villain. Helped by Sports celebrities (take a knee movement), music celebrities and what not. Next came suppression through Social Media. Facebook, Twitter, Reddit - started blocking any content from right wing voices. 

Election result was the result of all the steps taken above. You do not need to even wait for the result and how media started projecting Biden has more seats. When even 70% of votes were not counted in Arizona, they declared Biden a winner, there and many other places. Resulting in constant display of Biden having more electoral votes than Trump. This is to create a picture that Biden was winning all along and if there is a doubt, that doubt will be projected in such a way that Trump is whining. Media is too smart, too powerful and in some way Invincible. 

In fact, Biden was selected from Democrats side because he would do what Media will tell him to do. Poor Bernie Sanders again got defeated in Primary through that same politics - because he does not represent the left wing establishment. 47 years - Biden is in Politics - but majority of people voted for him - may not even name one or two ideas of Joe Biden. What did Joe changed in 47 years? What was the tag line of Biden's campaign? Well, many of them did not voted for Biden - but instead voted to kick Trump out of Power - and they Won. But Did they? or Did Media won. 

Left may claim that Republicans have the senate and they have the Judges, but do they? Senate race is still not over. There is a possibility that fraud may have happened in Michigan race (for both senate and presidential election), but for now, since Michigan is a blue state (Blue Governor), its kinda kept under the carpet. Media has smartly taken the discussion over Georgia, Nevada, Arizona race and removed Michigan from the conversation. In the best case scenario for Republicans - they can only have 51 Seats. Having a slim majority with one or two more Senators does not prevent from Media to run blue policies. Senator Mitt Romney already congratulated Joe Biden over Twitter and seems like very happy - an easy candidate to flip - if needed. 

But from the larger perspective, this is not just a victory for Biden or Left wing Media but bigger victory for China. China was being pushed by Trump over trade deal. Now he is gone and more left leaning party is taking control of the America. America has already taken few steps towards Communism. Government will provide healthcare, Government will buy company bonds, Government will provide more money if you are unemployed, Government will provide Stimulus money. China will be very happy seeing all these policies. Europe was already moving left. Putin already indicated due to his health, may step out in a month. 60% of World Population is in Asia. China is truly winning and ready to dictate the world. Like it or not - 21st Century belongs to ASIA. Even Buffett is investing in Japan. 

Why Should I vote for Donald J Trump?

 From last three days, Official Mail-In-Ballot has been staring at me to be filled up with my choices. It should be a simple choice for someone who is a registered Republican - yet - I am waiting for something to fill my vote. Thought let me write down, why I should vote for Trump. 

Every person have their own definition for what President should do for them or for their country. Some believe, President should bring equality among all of us, some believe he should protect the nation, some believe he should help the poor, some believe he should be the smartest among us, some believe he should be honest. Eventually, you are selecting the head of the government - who is going to dictate the policies for the next four years. Aha - The most important word -"Policy" and not the "Politics". 

 First question that you must answer while selecting the choice is, "What do you want from your Government?". In my opinion, what you want from your Government, is something that you can not do it yourself. In other words, I do not want monthly paycheck from Government (I can earn and get it myself), I do not want money to buy me food, clothes, rent etc from Government (because I can pay that from paycheck), I do not want healthcare, transportation money etc etc - Whatever you can do, you must do yourself. However, you can not build hospitals, you can not build roads, you can not protect from outside armies, you can not control law and order - For those things, you need Government Help. 

President is not Government - he is the "Head" of the Government. Major decisions that take place in four years time, are mainly driven through Congress (and not White House), by passing the laws. President can request their Party - but eventually they get debated out by Congress. Some of the other key decisions taken by President - are not necessarily taken by President - but their staff members. This does not mean, President is not important, He is - but there are hardly any decisions taken explicitly by them change common people's lives. Common people and Business owners lives gets impacted by the laws passed or changed by Congress more than executive orders from Presidents. However, How we deal with the rest of the World gets most impacted by the Presidents. In other words, Congress (Senate and House) is more responsible to what happens "inside" the country and Presidents and their cabinet members are more responsible to what happens "outside" the country.

So, lets address some of the key changes enforced by Trump with respect to outside world. 

1. Got out of Paris deal (is it good for environment - probably not), is it good for America (most certainly). How? It costs tax payers less money. Trump's point: Whatever America does with respect to Paris deal would not have mattered if China, India and other countries are still not doing enough with respect to saving the environment. In the meantime, he also started growing a billion trees campaign to tackle climate change issue.
   
2. Want to get out of Iran deal (Obama administration paid billions of dollars to Iran - our money)
3. Negotiated better deal with Mexico and Canada and cancelled old NAFTA deal where both of our neighbouring countries were taking advantage of USA. 
4. Negotiated trade deal with China and enforce them to buy more from America. China was buying less than 50 billion worth of goods from America before trade deal. 
5. Taking control of Chinese app like Tik Tok to ensure USA's data remains within USA or US based company. 
6. He is the only President in recent pasts who did not started a new war. In fact, he is bringing more and more troops back home. 
7. Creation of SPACE FORCE.

So, when we compare Trump vs Biden in terms of foreign policy, Trump wins hands down. Obama administration sort of went in the world like an apology tour - Trump does not apologize to the World. In fact, he changed the World from "Global" economy to "Local" economy. (Brexit is another example of it). 

Economy - Another subject where he wins. Before COVID hit, Economy of America was the best it has ever been. Stock market was at all time high. Unemployment numbers were lowest ever. Average Pay was rising. Businesses received one of the best law in recent past to get the necessary tax deduction. Due to this many billion dollar companies - where their money was parked outside of America came back in the American economy. Through many executive orders, he removed lot of unnecessary regulations placed by Obama administration - particularly on Financials industries - so that they can grow and land more money to small and medium businesses. 

He appointed Judges who protects Constitution - and their amendments. His choices are based on skill and not skin color or gender. (Unlike other party where Biden selects Kamala Harris because she is black and female). He supports Law and Order - Police departments across the America. 

Trump wanted to ban refugees coming from Muslim countries (until it was banned by courts) to Protect American Citizens. Trump wants to build WALL in between Mexico and USA - to protect American Citizens.

When Pandemic destroyed jobs market and economy, he is the only President who signed a check of 1200$ and send it to every American. 

So, I wanted to vote for Trump - for all of the above reasons. Its about his "Policies" and not about his tweets. Its not what he says - Its about what he is doing. So, filter out the noise, look at the facts and select a choice based on what he has accomplished and more importantly, what he is planning to achieve in next four years -- DOW JONES to 50000 !!! Make America Great Again !!! 

 

What will Jim Powell Do?

Important Financial Weeks Ahead:

1. Trump to launch his 2020 Campaign today, June 18th 2019.
2. Fed Meeting tomorrow on whether to cut Interest rate or not, tomorrow, June 19th 2019.
3. G-20 Meeting in Japan next week and a possible meeting between Trump and Xi to discuss Trade Deal.

US Federal Interest rate was as high as 5.25% in August 17, 2007. We had a 2007-2008 Financial crisis and it got reduced to 0 by December 16, 2008 (almost 11 rate cuts in less than 18 months) to save the economy.

US Fed cut didnt increase until December 16, 2015. From 2016 to 2018, in 3 years, Fed increased interest rate 10 times to 2.5%.

Last december rate hike, caused Stock Market to go down 20% from its recent high and it seems like it was a mistake from Fed (to increase rate 4 times in a year).

After December, Jerome Powell - Fed Chair - has indicated to remain "Patient" before further hikes. In the first quarter, there was an expectation that, Fed will increase rate once this year.

In last meeting though, Powell has indicated that they do not see any further rate hike this year. Meanwhile, Globally, majority of countries are doing the Fed Cut, including Australia, New Zealand, Europe, India, China, Japan etc. Also, some of the countries, including Europe, are indicating Quantitative Easing (meaning printing more money and putting it in the market). This has put pressure on Jerome Powell to cut Fed Rate.

So, Why should Jerome Powell Cut Fed Rate?

1. Rest of the World is doing it. (Why Rest of the world is doing it? -> Because, Global economy is slowing, and hence they want to pump more money).

2. Trump is forcing him to do it.

Why?

    Trump is launching his 2020 Re-election campaign, and wants Economy to be booming. Why? Because only twice an incumbent president has lost the election and both times, Economy was the reason (Carter and George Bush Sn). So Good economy almost gives him a victory. Stock market from January 2018 to now, has went nowhere and if Fed doesn't cut the rate, we may see market goes back to where it was in 2016 before 2016 election happened and that would be horrible news for Trump for his re-election. Plus, Trump is doing trade negotiations with China and having Fed on his side, with rate cuts, gives him more flexibility to whether to do the trade deal or not.

So, What is Jerome Powell going to do tomorrow?

1. If he does NOT cut the rate tomorrow

and Trump does not do the trade deal with china, stock market will go down 10-20% and after that any rate cut will not be as effective.

What does stock market expects Jerome Powell to do tomorrow?

1. Do the Rate Cut.
2. Indicate that there is at least one more Rate cut coming this year, if not two.

However, Stock market will go up another 10% at least this year, if Fed does Rate cut tomorrow (or at least indicate that 3 more rate cuts are coming this year in July, September and December) and Trump does the trade deal with China.

Statue of Unity

There are some individuals and paid media felt that allocation of 2 Billion Rupees (33 Million US$) to construct a Statue of Unity was not required. Perhaps, after reading few facts and figures mentioned in this blog, they may change their opinion.

First of all: 2 Billion Rupees that has been allocated for 2014-15 Budget is 1/10th of total money required to complete this project. It needs 25 Billion Rupees - Roughly (410 US Million Dollars). So money allocated currently is much less than what is needed. Just to give an idea that why cost is a fair amount, we can take a look at the cost needed to build Spring Temple Buddha in China in late nineties. It took 55 US Million$ and considering the inflation 400 Million is not a big amount. Also another point to consider is that all the money is not going to be spend only on Statue but also on a memorial, visitor center buildings, a memorial garden, a hotel, a convention center, an amusement park, research centers and institutes.

Entire project span to complete the work is estimated to be of 56 months, which includes 40 months of construction work. This means a stable job for plenty of construction worker around that area for almost 4 years. After the completion of statue for maintenance and other stuff, it will require a staff of more than 500 people. So, it is another way of pumping a money in the economy by creating a stable job for years to come.

Now, About how to recover the money that is going to be spend to build a statue? Let's look at some of the numbers. Statue of Liberty in USA gets over 3 Million Visitors each year. Every visitor spends minimum of 20$ on their trip (actually it is close to 40 but let's go with lower side). This means Statue of Liberty generates 60 Million$ annually. If the same amount needs to be considered for Statue of Unity, it will be require 7 years to recover the money that has been spend. If comparison between USA - India is not fair, then let's look at the number of visitors going at Taj Mahal. Each year over 6 Million people visits Taj Mahal - that is double the number of visitors than Statue of Liberty, which means, money to recover might take actually less than 4 years. Out of 6 Million people who visits Tajmahal- 200,000 of them are foreigners. This is foreign money coming to the Indian economy through Tourism - a very big plus.

If we look at the Statue's across the world, it is generally gets tied to a Religion. Christ in Brazil or Buddha in China-Japan. Even India's best monument - Taj Mahal in a way is tied to a religion - a monument built by a Muslim ruler for his wife. Considering that aspect, a party (BJP) which believes in core Hindutva (right wings) could have selected a statue of any other Hindu God and surely not for a person who belongs to their rivals - Congress. But Sardar Vallabhbhai Patel is a right choice for statue of Unity - because he was truly the founding father of the Republic of India. Plenty of things-roads-schemes-colleges-hospitals have been build for Nehru and Gandhi but Patel has been left out and this is a fitting tribute to one of the greatest leader of India.




Even if theoretical numbers do not match to recover money in 4 years and it may take 10 years, it is totally worth building Statue of Unity for Sardar Patel. There are businesses which does not start generating profit for decades but the jobs that it creates and product that it produces is far more valuable than checks and balance.

Eye-Wash (iWatch) from Tim(e) Clock (cook):

So, Apple announced a new phone which looks very similar to Samsung Galaxy S5 with less feature in it. Apple comes to a point where other manufacturer where at least a year ago. Changes to iphone are reactionary rather than visionary. Apple Pay is copy of Google Wallet, iWatch (eye wash) is a copy of Samsung's watch. Apple was proud to introduce 1080p display while brands like LG are going with 1440p display. 8MP Camera while Sony is launching Z with 20+. Less we talk about security happier Hollywood celebrities are, as they experienced their iCloud account hacked just a while ago. It is actually very funny that apple fans were making fun of Samsung's Smart Watch and large screens earlier during their release are the same people who wants to buy Apple Smart Watch and Bigger phone.

Those who wants to argue about Apple invented smart phone, do not forget Motorola invented mobile phone but we all know where they are. Those who want to argue about Apple is known for perfecting the technology to make it worth buying, well do they remember Apple Maps? Apple's failure are their feature. Those who wants to argue about it is an American product, I wish they check ten of billions of dollars apple have stashed overseas because American tax rates are so high in the US. Also Apple itself does not make any part of the iphone, so much so that entire processor in iphone 5 where made by Samsung. As far as new payment feature is concerned, just one line: "Our ambition is to replace (read empty) this," said Cook, holding a wallet & wearing iWatch will be like carrying radiation around your body 24/7 (cancer law suits coming up).

Compliment that most people give about apple products is that it is easy to use, more like Geico ad, "even caveman (read stupid) can use it". i in iPhone stands for idiot phone. Actually, Apple should term this as downgrade your smart phone because sure it does not sound like upgrade. When people buy watches now a days that is because it looks nice and wonder others on how much it cost? unlike iWatch where world knows its (just) 350$ (very cheap comparing with current trend of watches).

It was a flop show again from Apple. Expecting them to deliver new innovation is perhaps asking too much. Simple things such as its charging ability and water resistant equipment might be the least of the expectation which was not delivered today.