Week 32 - Aug 8 Investment Moves
- Current US market condition as of 10:00 am (EST)
- Aug 8 options trades
- AI stock: Axon?
- Buy the dip in a dividend growth stock (Visa).
Current US market condition as of 10:00 am (EST)
The market is up again on Wednesday, bringing the index back to where it was on Friday night's close. This means any DROP on Monday (Aug 5) has been recovered in the last 2 trading days (Tues/Wed).
Many folks are expecting a few more of the "red" days in Aug and Sept. September has been a historical RED month based on monthly return data. We can be heading into that if RECESSION shows it in the data released by the US Govt. However, if we can engineer a "soft landing", the market will continue to hold up and even resume its upward trend.
Aug 8 options trades
Here are today's trades as of 10:00 am (EST):
- Roll down Call side: for more risk/premium.
- Added Credit PUT spread to convert into Iron Condor.
- Rolled RIOT Covered call Down in strike price for .02 each (since Bitcoin has fallen recently).
AI stock: Axon?
Axon is the maker of the TASER stun gun. When you watch videos on YouTube of police encounters with the public, the dashcam and body cam are often from Axon. So what does an equipment maker have to do with AI? Is this stock worth looking into?
Read Here: https://www.investors.com/news/axon-stock-earnings-q2-draft-one-ai/?src=A00220
In the world of AI, you need to own Nvidia and AMD shares. But is AXON flying under the AI radar and one day be recognized as an AI play?
Draft One is part of the suite of products to be used together. The Body Camera (Axon Body 4) is used to record the events between the police officer and the public. Often you can see and hear the conversation between the two parties. Draft One is designed to use AI to collect the basic information from the recording in fill in the data it has (or knows) into standardized police reports (like Name, what you are being arrested for, and any information you have given the police that might be used against you).
A look at the last 5 years shows a great stock to own.
The market is looking to pop today with Axon up 11% in pre-market trading (before 9:30 am EST). If you believe more police departments will eventually invest in technology that makes it safer for everyone, then Axon stock could be one that you want to look into. The camera is designed to protect both the Police Department as well as the Individual's civil rights.
Buy the dip in a dividend growth stock (Visa).
Yahoo has published an article from the Motley Fool about Visa stock and why you should buy Visa on the recent dip.
Read Here: https://finance.yahoo.com/news/want-rich-buy-dip-dividend-113600317.html
First, it goes into what is DGI (Dividend Growth Investing). Most people think dividend investing is looking for high yields, and that is not true. Visa is a good example of a stock that rarely ever yields 1% or more in the last 10 years.
The world is mostly using cash (FIAT) when doing money transactions. In first-world countries, most transactions are done using credit cards and debit cards. Over the last 3 years, we do seen more people using their smartphone that links to a credit card to do transactions.
Visa is not a bank. They provide the network in which these transactions can happen over their network. Over the years, we can see Visa has unlimited room for growth. As long as the world population grows and more people switch to using cards/phones, Visa's business will continue to thrive.
The dividend has had plenty of growth in the last 10 years and more dividend hikes are to come in the future. But I did not buy into VISA for its dividend, but rather for the business model. Visa has one great MOAT of a business as defined by Warren Buffett's style of investing. Mr. Buffett owns shares of Visa and Mastercard.
One of the last reasons to consider is the Motley Fool has portfolios that have beaten the market. They recommend Visa to their paying subscriber and they own it in their portfolio. Visa is a great company to look into owning.
