- So the other day, I was scrolling through YouTube
and I saw a video posted by The Motley Fool
titled Where to Invest one thousand dollars right now?
And I went ahead and linked up that video
down in the description
because that is what inspired this video
but what we're going to be talking about
is where to invest $100 in the stock market right now.
And the reason why I am covering this video,
is because while it's great to talk about
investing a thousand dollars, not everyone out there
has a thousand dollars to invest.
So instead, we're going to be looking at
three potential scenarios for investing $100
and at the very end of this video,
I'm actually going to open up my Webull account
that I am going to lay out for you in this video.
So what I'm going to do is lay out
three different investment scenarios.
The first one is going to be a conservative approach
towards investing $100.
The second is going to be a moderate approach,
and the third is going to be an aggressive approach
of how I would invest $100 in the stock market right now.
Now it's also important to remember,
that while it is exciting to invest
in the stock market right now, it could definitely go lower
and there's no saying that we are at a bottom
or anywhere close.
The stock market could go up 20% and down 20%,
nobody has any idea what is going to happen
with the stock market.
But what I will say is this, over the last couple of years,
these are some of the lowest prices we have seen
in the stock market in the years
that I have been doing this YouTube channel,
so it is an exciting time
to begin investing in the stock market.
This is what I would personally do with $100 bucks.
Now that being said guys,
I just have to make this disclaimer here.
I am not a financial advisor,
and this is not financial advice
and you should always do your own due diligence
before investing in the stock market
and you shouldn't just copy cat what other people are doing
with their money, but that being said guys,
let's get into a scenario number one
and look at a conservative approach
to investing $100 right now.
All right, so for these different scenarios
of investing $100, we're going to assume
that you are investing without the use of fractional shares,
which means you have to purchase entire shares
of any stocks we are looking at here.
So, that is going to limit us to stocks trading
under $100 per share, but I think it's gonna make the video
more fun and more accessible to most people,
who do not have the ability to trade fractional shares
through their brokerage account.
So for this conservative approach to investing $100,
we're gonna be picking one Vanguard ETF
and one more defensive Blue Chip Stock,
it's one of the DOW Jones industrial average,
that we're all familiar with,
and the reason why we're doing this
is because these investments tend to hold up better
during a bare market, which we are officially in.
So for the Vanguard ETF,
what I would buy is one share of VT,
which is the Vanguard Total World Stock ETF
and this fund is going to give you exposure
to both US companies as well as
many foreign stocks out there as well,
giving you diversified exposure
to the entire world stock market.
Think of it this way guys, it's like buying a small piece
of all the publicly traded companies in the world
on major exchanges.
And believe it or not, VT is going to give you a small piece
of 8438 different companies,
both in the US and trading outside of US markets.
Not to mention, this ETF also currently pays
a dividend yield of 2.87%, which means you'll be earning
a quarterly dividend as you hold on to this ETF.
So right now, one share of VT is going to run you about $59,
meaning after buying one share, you will have $41 left
to purchase a defensive stock and my pick for this
is gonna be none other than Coca Cola,
which is one of the stocks
in my own personal dividend stock portfolio,
and if you guys wanna check out that series,
I am basically building up a $100 thousand
dividend stock portfolio from scratch
and I'll put a card up in the corner
if you wanna check it out,
or I'll put a link down in the description
so you can watch it after this video.
So with that remaining $41, you should be able to buy
one share of Coca Cola, which currently trades
around $40, and you'll have just $1 left over,
which means you made pretty good use of that $100 investment
and the reason for buying Coca Cola is pretty simple.
This is a very durable, time tested investment
that also pays dividends and they've been around
for a very long time.
They're a dividend aristocrat,
which means that they have grown their dividend
every year consecutively for over 25 years
and Coca Cola has a very impressive portfolio
of 500 different brands that serve
over 200 different countries.
So I love Coca Cola for a beginner investment
and I think it's a great fit
for a conservative investment portfolio,
so that is what I would do with $100
in a conservative investing strategy.
All right, so now let's talk about a moderate way
to invest $100 in the stock market right now.
And guys, do me a quick favor here.
If you're enjoying this video so far,
please go ahead and drop a like on this video
to support this channel and to help out
with the YouTube algorithm as it allows this video
to be shared with more people.
So I'm sure this goes without saying here guys,
but a conservative approach to investing
is going to be lower risk and lower potential return
while an aggressive approach is higher risk
and higher potential return.
We already covered a conservative strategy
and now we're gonna cover a moderate one,
which is right smack dab in the middle
between aggressive and conservative.
So there's definitely some potential for returns here,
while there is still some risk
associated with these investments for sure,
because we are looking at some stocks
in battered industries.
For this moderate approach to investing $100,
we're going to be solely investing in individual stocks
of a couple of different companies
and to name a few of these industries
that are hurting right now,
we have the airlines, we have cruise lines,
as well as casinos, hotel chains, the list goes on and on.
So there's a couple of companies
in these different industries
that I would personally invest in with $100
and the very first one is Southwest Airlines,
trading under the symbol LUV.
Now the reason why I would invest in Southwest Airlines
in this moderate portfolio is because Southwest
has the lowest debt load among major airlines out there.
Now if you look at my personal portfolio,
you will see that I've invested
in American Airlines, in Delta Airlines,
and the reason why I picked those stocks
over Southwest Airlines is because they have fallen
a lot more over the last couple of months.
You see Southwest Airlines
is in a better position financially
because of the minimal amount of debt that they have,
but for that reason, the stock actually
has held up pretty well,
compared to the beating airline stocks have taken.
So it is a high risk industry right now,
but Southwest in my opinion, is the safest airline stock
based on the debt load that this company has.
And the reason why I would buy an airline stock right now
is because we know that this industry is being bailed out
by the US government and the reason is,
the US government can't exactly let the major airlines
go bankrupt because that would be such a major disruption
to our overall economy.
So whether people like it or not,
airlines are a very essential industry
and they have to be bailed out
by the US government when these airlines
get themselves in trouble, so I see very low risk
of these major airlines going into bankruptcy
and some of them are priced
like they are going out of business.
And obviously guys, the issues these airlines are having
right now are related to the short term travel bans
and restrictions that are placed
that have indirectly just destroyed these airlines.
The virus has nothing to do with them,
it's not their fault, but they are being absolutely battered
as a result.
So that's the very first stock I would buy,
one share of Southwest Airlines,
which is going to run you about $37,
leaving you with $63 left.
So the very next thing I would buy is one share
of the oil giant Exxon Mobil
and the reason why I would buy this stock right now
is because energy is another industry
that has been absolutely destroyed
over the last couple of months.
Now again, just to restate this,
there's no saying that airline stocks won't fall more
or oil stocks and energy stocks won't fall more,
but if you look at where these stocks have traded
over the last five to 10 years,
these prices are much lower than what these stocks
normally trade at so in the long term,
I believe these will be good entry points
for this stock, but in the short term,
nobody knows what is going to happen.
So oil prices have absolutely collapsed
and as a result, many of these companies,
including Exxon Mobil, are hitting like 15 or 20 year lows.
These are prices that we have not seen,
you know, since in some cases, as early as 2000.
And so that is why I would buy a share of Exxon Mobil,
the oil giant for a very long term hold.
Again, nobody knows what's gonna happen in the short term,
but I think long term, this company should do all right.
And again guys, we're looking at a moderate approach
to investing $100 so we wanna make sure
there is some potential risk and upside in this portfolio
so we're not gonna be making the safest picks out there,
you know, with some of these cookie cutter names
that everyone is throwing out there.
And then third and finally,
the last thing I would add to this portfolio,
is a couple of shares of General Electric,
which is now trading at a 28 year low.
Now, a lot of people know
that I'm invested in General Electric,
I bought shares many years ago
and so unfortunately, my cost basis is quite a bit higher
than where shares are trading right now,
but we saw GE stock go down to about seven bucks a share
not long ago and then rally to about $13 per share
in no time at all.
So General Electric is one of those stocks
where I wouldn't be surprised to see this stock double
in a very short period of time.
Now GE is involved heavily with industrials
as well as manufacturing and aviation,
so as a result of everything going on with the airlines
and with Boeing, you know GE has been thrown
into the wood chipper as well
and this stock is down massively, 28 year lows
for a company like General Electric
is not something you see every day of the week.
So one share of Exxon Mobil is going to cost you
around $34 bucks, leaving you with $29 left
and that should be enough to purchase
four shares of General Electric,
which is currently trading around seven dollars per share.
So after buying four shares of General Electric,
one share of Southwest Airlines
and one share of Exxon Mobil,
you should have about one dollar left,
you can go out and buy yourself a candy bar
or wait until you have enough money
to reinvest in more shares of these stocks
or other potential investments.
All right guys, so moving on to the final part now,
let's talk about an aggressive way to invest $100
in the stock market and this is where we exit the realm
of investing and enter the realm of speculation.
Now, investing is based on looking for a sound return
for your money with minimal downside risk
and when you get into this area of speculation,
you're looking for a very large return
on your investment, but there's also the potential
to lose 100% of your invested capital.
So the picks I have for this aggressive portfolio,
are going to have a lot of potential upside,
but there's also 100% potential downside,
where you could lose all the money
that you invest in these stocks.
Now we're not talking about penny stocks
or anything crazy like that,
these are growth stocks that are pretty popular right now,
but often times, when we're looking at
these aggressive growth stocks,
these are companies that are unprofitable
or they are in a bad situation financially backed
by a lot of venture capital.
They're certainly not what we would call a Blue Chip
or time tested investment,
so the future is largely uncertain for these companies.
But as a result, a lot of them have sold off
massively in this market and this is what I would do
with $100 for an aggressive approach to investing.
First of all, I would buy one share of Lyft or Uber,
they both trade for around the same price.
I personally only use Uber,
so I would buy one share of Uber
for around $26, leaving you with $74 left
and obviously guys, because of the travel shut downs
and the virus going around,
Uber's business has been destroyed.
So right now, things are looking pretty bleak for Uber
and that has been reflected of the share price
of this company that recently went public back in 2019.
Next, after that, I would look at one of two stocks,
either Snapchat or Twitter.
Right now for this video, because of number sake,
I went with Snapchat.
I would buy three shares at around $11 per share
and the reason is because these social media stocks
have sold off massively
because people are fearful of their revenue model,
which is essentially selling ads on their platforms.
And when businesses don't have a lot of money,
one of the things they're gonna cut back on is advertising,
which is going to affect the revenue stream
for these social media companies.
So between three shares of Snapchat
and one share of Uber, that is going to leave you
with about $41 left to invest
and then the last stock I would buy with the remaining $41
is eight shares of Ford, which are now trading
for under five dollars per share.
Now, I would call this a total speculation
because nobody knows what's going to happen
to an automotive giant like Ford,
and this is definitely a time when auto stocks are hurting
because during a recession, one of the very first things
people stop doing is going out and buying new cars,
so the auto makers are definitely going to suffer.
We're also in uncharted territory with Tesla
and the electric vehicle market
and Ford just keeps losing market share of the auto market
to the overseas auto makers.
So, I see it as a total speculation,
Ford could recover or they could go out of business,
I would not be surprised by either scenario,
so right now, this stock is under five dollars per share,
which means you would be able to buy
about eight shares of Ford to finish out
this aggressive approach to investing $100.
All right guys, so as promised,
what we are going to do right now
is actually invest $100
into one of these strategies I outlined
and maybe six months down the road or so,
I can revisit this and we'll see
how this portfolio performed,
but what we're going to pick
is the aggressive approach to investing $100.
I'm going to buy those exact stocks right now
through the Webull investing app,
which is a great commission free brokerage out there
and if you guys wanna check it out,
they have a promotion going on right now,
where if you sign up and open and fund an account with them,
they're gonna give you two free stocks
just for signing up.
The only thing is that promotion ends
at the end of this month
so you just have a couple of days left
if you wanna grab two free stocks,
that's gonna be the top link down in the description below.
But that being said guys, let's open up Webull right now
and I'm gonna go ahead and buy
those stocks mentioned for this aggressive approach
to investing $100.
All right, so the very first stock on our list there
is Uber, so we're gonna go ahead and buy
one share of this stock for this portfolio.
All right, so there goes our order
for one share of Uber, up next,
let's look at Snapchat stock and buy a couple of shares.
So now we're gonna go ahead and buy
three shares of Snapchat stock,
we'll do a market order so it fills immediately.
And lastly, we're gonna buy as many shares
of Ford as possible with that remaining $40 or so.
Hopefully we can buy eight shares,
but we may be able to just do seven
depending on my buying power.
And it looks like we could purchase eight,
which worked out pretty good here guys.
So we just purchased my aggressive approach
to investing $100, let's take a look at that right now.
So, first of all, we have eight shares of Ford
at a cost basis of $4.75,
then we have three shares of Snapchat stock at $10.85
and lastly, one share of Uber stock at $25.35,
which leaves us with $98.91 invested,
and about $1.09 in cash, but that's pretty good
as far maximizing the use of $100.
So, anyways guys, that's gonna wrap up this video.
I hope you enjoyed it.
Like I said, maybe in about six months or so,
we'll take a look at this portfolio
and see how my $100 investment does
and if you guys liked this video,
if you wanna see me do a video
on where to invest $500 right now,
drop me a comment down below
and if enough people wanna see that,
I will put that together next week.
Like I said, if you wanna grab
your two free stocks with Webull,
that's the top link down in the description below.
Full transparency guys, I am affiliated with Webull,
so if you use my link, I may earn a small commission
in the process, but thanks so much for watching guys.
Subscribe and hit that bell if you haven't already,
and if you haven't dropped a like on this video
and you're still watching, what are you waiting for?
Drop a like on this video, I appreciate the support guys
but thanks so much for watching
and I will see you in the next video.
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