February 2020 - Tesla has increased to a $150 billion market cap and still has not made a yearly profit. In the last 25 years, technology stocks have had a long run way for profitability. Amazon would be the other example of a stock trading at high valuations before it started to report profits. The price of these stocks may be traded up initially by a limited pool of investors willing to take on the risk of unproven business models. However, once these stocks reach market capitalization milestones, they are added to indexes. Then, the risk is distributed to a broader population through ETFs and mutual funds. One solution is to come up with ETFs which can pool together large capitalization stocks and avoid non-profitable companies. #stocks See Post

February 2020 - Tesla stock has risen from $180 in the middle of 2019 to a high of $960 this year. One analyst expects Tesla to have a $1 Trillion in revenue within a decade. The analyst also put a $7,000 price target on the stock. Considering an average price of a Tesla Model 3 at $42,000, this would mean they would sell 23.9 million cars in one year. According to statista.com, 77 million cars were sold worldwide in 2019. Tesla's market cap is $145 billion and it sold 367,500 cars in 2019. It's currently worth $389,000 per car sold. #stocks See Post

December 2019 - The SPY tracks the Standard and Poors 500 Index. Microsoft, Apple, Google, Facebook, and Amazon currently make up 15% of the index. This might not be enough diversification for some investors and these companies may decrease in value in the future. Midcap and small cap index funds are also available. Vanguard's VB small cap index ETF has an expense ratio of 0.05%. #stocks See Post

December 2019 - Lululemon reported good earnings. The day after, the stock traded down to 218. Sold cash covered puts on LULU at 222.50 at $3.30 in the morning and then bought it back at $1.50 in the middle of the day. The option ended at $1.08 at the end of the day. #stocks They reported good earnings but the yearly forecast caused some selling. See Post