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What Millennials’ Top Stocks Tell Us About The Market And Them

What Millennials’ Top Stocks Tell Us About The Market And Them

How do Millennials choose stocks?

Millennials like stocks. Why shouldn’t they? Stocks only go up, right Dave Portnoy? 

I recently reviewed the latest survey from Apex clearing, S&P Global Market Intelligence and Investors Business Daily. Each quarter, they review account holdings of a large group of Millennial generation investors, and analyze which individual stocks are the most popular in their portfolios. Below, you can see a chart of the Top 10 as of the end of last month, out of their full list of the top 100 stock holdings of this group.

Young investors and stocks: awesome!

Before I specifically deliver some observations from that latest list, let me say this about millennials and stocks: I am thrilled that younger folks are learning about investing while they are still in the earlier stages of their retirement saving. There is an entire generation of Baby Boomers that wishes they had the opportunity to invest in such transparent, liquid markets at such a low cost. But in the 1980s and 1990s, the internet and investment markets were in a nascent stage versus today.

The issue for all investors, including millennials, is that they have not known any serious hardship as investors since they started investing. Market declines have been so quickly-remedied since 2008, you could excuse this generation for thinking that stocks only go up…but when they go down, they come right back.

Index-mania is out there: but there’s a cure

There is also the issue of “index-mania” I have described before. While it is possible that investing in the S&P 500 Index is the only strategy a young investor will ever need until they approach retirement, that is not the lesson from history. In fact, I would say that strategy is on seriously borrowed time.

That

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Covid Is Making a Comeback. The Stock Market Is Watching.

Covid Is Making a Comeback. The Stock Market Is Watching.

A medical worker takes a nasal swab sample from a student to test for Covid-19 on October 8 in New York City.


ANGELA WEISS/AFP via Getty Images

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New Covid-19 infections are rising as the weather turns colder—and the stock market is paying attention.

U.S. coronavirus cases reported Tuesday hit more than 46,000, up about 21% from a week ago, while the seven-day average of new infections, which has been rising steadily since the beginning of October, sits at roughly 51,000, up almost 17% from a week ago.

To this point, more than 7.8 million Americans have become infected with Covid-19. About 3.1 million have recovered. Tragically, more than 207,000 have died. America has roughly 4.5 million active cases.

Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, warned Americans about increasing infection rates in the fall, but believes the U.S. can halt the progression. In recent months, he has consistently advocated for wearing a mask, avoiding crowds, staying outside, washing hands and maintaining six feet of social distancing where possible.

The market, however, appears to be betting on vaccines and treatments. On Tuesday, for instance, the

Dow Jones Industrial Average

fell 157.71 points after pauses to

Johnson & Johnson

and

Eli Lilly

trials.

That’s not a huge drop, which suggests that confidence remains high that Covid will be conquered.

Still, it never hurts to wear a mask.

Al Root

*** Just five years ago, Fitbit was one of the hottest companies in tech. Now it’s hoping a sale to Google can save its business and help it compete with Apple. Listen to the latest episode of the

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Stock futures struggle for direction as bank earnings come in mixed

Stock futures struggle for direction as bank earnings come in mixed

Stock futures traded flat to slightly lower Wednesday morning, as a host of major banks released their quarterly results.

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Goldman Sachs (GS) on Wednesday reported third-quarter results that well exceeded consensus estimates, as investment banking and fixed income trading revenue each grew over last year and topped expectations. The trading boost Goldman Sachs and other banks including JPMorgan Chase and Citigroup but it did not extend to Bank of America (BAC), which posted lighter-than-expected trading revenue from stocks and bonds, and a miss on overall revenue compared to estimates. Bank of America also built its credit reserves during the quarter, adding more padding in case of potential customer loan defaults amid the pandemic.

Meanwhile, lackluster prospects for more stimulus and concerns over the timeline for developing a COVID-19 vaccine and treatment weighed on investors. Each of the S&P 500, Dow and Nasdaq declined for the first time in five sessions as of Tuesday’s close.

An impasse among U.S. lawmakers in Washington has kept hopes running low that more virus relief aid will come to fruition before the November election. Senate Majority Leader Mitch McConnell said Tuesday he will have the Senate take up relief legislation after the chamber’s return on Monday, with his narrower proposal set to include funds chiefly targeted to the Paycheck Protection Program. House Speaker Nancy Pelosi, however, has rejected slimmed-down stimulus proposals and deemed them inadequate, and even President Donald Trump said on Tuesday on Twitter to “Go big or go home!!!” for more stimulus.

Meanwhile, a pair of front-runners in the race to develop a COVID-19 vaccine and treatment announced that their respective trials were put on pause over safety concerns. Eli Lilly (LLY) said Tuesday afternoon that enrollment for its COVID-19 treatment would be temporarily halted, less then a day after Johnson

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Why And How You Need To Think Hard About The Next Bear Market Now

Why And How You Need To Think Hard About The Next Bear Market Now

Most investors worry about the next market downturn and try to figure out when it will occur. But they don’t develop specific action plans. That’s a major oversight.

You need to plan now for the next downturn.

Back in March when the markets and economy plunged, many people didn’t have plans. Of course, few were expecting a bear market. That downturn was caused by the Covid-19 pandemic, not by changes in monetary or fiscal policy. Some reacted to all the scary headlines about the markets and the pandemic by selling stocks. Others spent a lot of time reviewing as much information as they could and agonized over what to do.

Fortunately for those who didn’t do anything, the markets rebounded quickly after the Federal Reserve opened the money spigots and Congress provided fiscal stimulus. Unfortunately for those who sold in the panic, the markets rebounded quickly.

It’s important to make a plan now for the next downturn. In particular, make plans for what you will do and won’t do under different circumstances. Emotions of the moment will influence your actions less if you develop a plan now. You’ll be less influenced by the talking heads, market noise, and doomsayers. Plus, you have the time to consider all the angles relatively dispassionately. The fact is, most market downturns catch investors by surprise. You need to think hard about a market decline when one doesn’t seem likely. The closer you are to retirement, the more important it is to develop a plan now.

Some people will decide they’re able to ride out any fall in their portfolios. They’ll rebalance their portfolios as stocks decline but not take other actions. Others will decide to reduce their stock exposure but only if markets decline by a certain amount or key economic or market

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5 things to know before the stock market opens Wednesday

5 things to know before the stock market opens Wednesday

1. Futures higher after Wall Street ends four-session winning streak



a person standing in front of a building: People walk by the New York Stock Exchange (NYSE) in lower Manhattan on October 5, 2020 in New York City.


© Provided by CNBC
People walk by the New York Stock Exchange (NYSE) in lower Manhattan on October 5, 2020 in New York City.

U.S. stock futures pointed to a higher open Wednesday, one day after the first down session in the past five for the Dow Jones Industrial Average, S&P 500 and Nasdaq, as investors digest more bank earnings and keep watch for any coronavirus stimulus developments out of Washington. Gains on Wednesday would avoid back-to-back losses for the major stock benchmarks, something that has not happened in more than three weeks. Despite Tuesday’s slide, the October gains for the Dow, S&P 500 and Nasdaq are still larger than the losses they experienced in September.

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2. Goldman beats on earnings while BofA and Wells Fargo disappoint

Dow-30 stock Goldman Sachs rose in Wednesday’s premarket trading after the Wall Street firm posted third-quarter earnings and revenue that best estimates. Per-share profit of $9.68 far exceeded analyst expectations of $5.57. Quarterly revenue came in at $10.78 billion.

Bank of America shares fell in the premarket after the lender posted third-quarter results that missed on revenue. The firm said it generated $20.45 billion in total revenue. Profit in the quarter slumped 16% to $4.9 billion, or 51 cents a share, edging out the 49 cent estimate.

Shares of Wells Fargo dropped in the premarket after the bank also reported disappointing earnings for the third quarter as low rates put pressure on net interest income. Wells Fargo earned 42 cents per share on better-than-expected Q3 revenue of $18.86 billion.

3. Walmart spreading out Black Friday sales



a person standing in front of a store: A shopper is seen wearing a mask while shopping at a Walmart store in Bradford, Pennsylvania, July 20, 2020.


© Provided by CNBC
A shopper is seen wearing a mask while shopping at a Walmart store in Bradford, Pennsylvania, July 20, 2020.

Walmart, a

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