We are in the middle of one of the largest bull market runs in the history of stock markets. The S&P 500, an indicator of the broader markets, is up 11% this year, 59% in the last three years and 90% in the last five years.
There will also be stocks that under-perform the market. This might be due to weak fundamentals (such as rising debt levels), obsolete tech or rising competition.
Let’s have a look at the five stocks that have tanked this year and burned investor money.
1. Flex is down 28%
Flex [FLEX] provides design, engineering, and logistics services to companies. The companyās share price has declined close to 30% in 2018.
Shares of storage company Western Digital [WDC] is down 27.5% in 2018. Analysts have expressed concerns over declining memory chip prices. Lower prices are set to pressurize profit margins for WDC and peers.
Shares of telecom company Windstream Holdings [WIN] has been declining over the last two years. The stock fell 75% in 2017 and has declined 48% this year. The decline would have been far worse but for the 12% gain for Windstream on Sept. 14.
There have seen serious concerns about Windstreamās mounting debt levels and lackluster revenue. At the end of Q2 2018, Windstreamās total debt stood at $11B with operating cash flow of $4.2B.
JD.com [JD] is known as Chinaās Amazon [AMZN] and has seen a significant rise in share value over the last two years. The stock’s rise more than doubled from $20.1 in June 2016 to over $50 early this year.
Shares have however declined 35% this year primarily due to the on-going tariff war between the United States and China. However, this seems to be more of an overreaction as JD.com generates 100% of its revenue from the domestic market with no exposure to the US.
Shares of Symantec [SYMC] have nosedived 28% this year. This cyber security stock is grappling with declining revenue in a high growth market.
However, competition from tech giants like Cisco [CSCO] and nice companies such as Palo Alto Networks [PANW], Fortinet [FTNT] and Checkpoint [CHKP] have impacted revenue growth for Symantec.
I was looking around Google for an old article on tax strategies and this five-year old video of myself happened to pop up.
Iām interviewing a tax expert about how real estate investors avoid paying taxesin perpetuityāAND how everyday citizens can do the same thing.
(Real estateāour TEMPLE I and TEMPLE II projects includedāhas a number of tax benefits savvy investors have capitalized on for years, including Opportunity Zone breaks and 10-year tax abatements.)
Thereās the 1031 exchange, of course, which Iāve shared with you guys before.
Just to refresh your memory, the 1031 Exchange allows you to roll over gains from your last project into a new property TAX FREEāas long as said property is worth the same or more.
But thereās ANOTHER TAX LOOPHOLE that can take your portfolio to an entirely new level by splitting your capital gains into MULTIPLE properties.
PS: In our next update, Iām going to break down how real estate moguls get paid from their propertiesā¦tax free. š PPS: If you want to learn how to implement generational wealth strategies like this one, you can join our NYCE wealth academy (TRIBE U) here.
If thereās anything the pandemic taught us, itās that the paradigm of āofficeā and āworkspaceā has been shaken to its CORE.
Universities are teaching via Zoom, court dates are done virtually, FULLY REMOTE businesses are valued at $1B+, and legitimate Inc. 5000 startups are run fromā¦wherever. š²
This is my office for the dayā¦
I am actually running our business from the beach, typing this from here.
Itās 4:28 pm CET, which means itās 10:28 am EST and I am CRUSHING my to-do list.
(And the team will continue to crush it while Iām asleep. Thatās the š)
Having team members in all the main time zones gives us a 24-hour work cycle vs. 9-5/eight-hour on-the-clock performance.
This means we get 3x the productivity of a similar company. š„
Let me repeat thatā¦3x PRODUCTIVITY vs. our competitors.
Meanwhile our project management software grants us 24-hour TEAM-WIDE connectivity that tracks all tasks and lets us know if productivity dips even a little bit.
There is ALWAYS someone senior awake. It could be Martin in Barcelonaā¦Nat in New Yorkā¦Vineet & Arif in New Delhi.
Well, the first step is to have an actual side hustle youāre launching. Not just an idea, a validated business.
MAJOR KEY: Do NOT spend money until youāve made your FIRST DOLLAR! šššš
(You can catch a replay Business Launch masterclass here and see TRIBE member Nessa launched her business on the spot and got her first $45K client shortly after.)
One of the easiest ways to start is with Airbnbāyou can start that in 10 minutes. Literally. (Hereās a guide if you need it.)
Once you have your business, you build a virtual infrastructure (you really just need two softwares, which are FREE), manage the team accordingly and run the business from there.
Iām gonna put together a step-by-step video breakdown this weekend inside the new TRIBE U on the FIVE key things you need to do this for YOURSELF. šµ š
From what software to use, how to build a team, how to keep.
In the meantime, drop a comment if youāre ready to build some wealth and any questions if you want moreā¦
Letās get to work. š
PS: If you canāt be bothered with video and just wanna get to work, weāre hosting a TRIBE U workshopthat will help you get this process started on the spot. Itās $479 $49. š„
But what does it all really mean? How does it come together? In this week’s chart, our friends at CB Insights break down exactly how blockchain powers Bitcoin.
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