The death of oil stocks is premature, in fact investing in XOM stock is a viable fixed income strategy. There is hardly any yield elsewhere. LeBron James is going to SERIOUSLY regret buying his daughter that big-ass playhouse … so says the ex-NFL star. Waiting too long, looking to invest on the cheap, and trading too frequently are some common investing mistakes you can easily avoid. /PRNewswire/ — IBM (NYSE: IBM) and The Climate Service (TCS), a leader in climate risk analytics for investors and businesses, today announced their alliance… A pitch to offer artists a way to give geo-fenced, live events to fans around the world has brought the new Los Angeles startup Moment House $1.5 million in seed funding. The money came from heavy hitters in the Los Angeles entertainment and investment scene including Scooter Braun, Troy Carter, Kygo’s Palm Tree Crew and […]
What is there to say about oil companies that hasn’t been said yet? All of Wall Street agrees that investing in oil stocks like Exxon Mobil (NYSE:XOM) is dumb. That alone is invitation for me to consider XOM stock from the bullish side. When everyone is on the same side of the boat, it’s time to try the other side.
We all know the arguments against the use of crude oil. The world has been hating on fossil fuels in light of climate change, so there is renewed interest in ESG investing. XOM stock would be the exact opposite of that. Today we will argue why it’s actually an investment opportunity.
I agree that we have to wean ourselves off of using up the planet’s resources just to power it. But I also know that this shift will take decades to even make a dent in demand.
The electric vehicle, for example, is not going to replace the internal combustion engine anytime soon. The trend is ongoing but it’s still in its infancy stage. Electric cars have been around since the 1880s, but until Tesla (NASDAQ:TSLA) all other ventures failed. This is the first car maker to succeed in convincing the masses that it’s doable.
Amazingly in 2019 Tesla delivered 370,000 vehicles. But to keep things in perspective, last year the world produced 98 million motor vehicles. In the United States alone the yearly sales rate is almost 20 million cars and trucks.
There’s a definite uptrend in alternative energy but it is still a budding movement. It will be years before the math starts to flip to the point where it kills oil companies. It is way too early to declare Chevron (NYSE:CVX) and XOM stock dead. By that logic, cigarette companies would no longer exist. The CDC reports that cigarette smoking kills almost half a million people a year. That’s about one out of every five deaths in the U.S., yet their companies survive and their stocks are still on the Wall Street boards.
Source: Charts by TradingView
While the death of its stock is not imminent, the thesis changes for Exxon. This is no longer an upside growth story, at least not for a long while. Because the price of oil fell so far, industry companies have to tighten their spending belts. They already drastically cut their capex, so they stopped pursuing new ventures until this test elapses. This is how they can stay true to their promise to uphold the dividend.
And therein lies the thesis. XOM stock is an easy way to earn interest on capital with relatively limited risk.
Banks no longer offer investors any meaningful yield, nor do U.S. bonds. The central banks’ loose money policies made sure of that. Overseas it may even cost you money to deposit it, or to lend it out to governments.
These inflationary policies force investors to seek yield from riskier assets like stocks. Fixed income has to come from somewhere and XOM stock fits the bill. It currently pays a whopping 10% a year. That’s 20 times more than you can get most anywhere else.
It is an attractive proposition especially that the price has already fallen so far. It remains 50% below 2019 levels. After such a sharp correction, the price contains very little froth if at all. Further downside from here will need incrementally bad news. I wrote about this concept in early September and the trade held up OK. Sure, the price fell, but that was during a very sharp market-wide correction. The point is that it found footing and held the pandemic lows.
There shouldn’t be much extrinsic risk either. The oil industry is already in shambles so all the cuts and bruises are showing already. Investors have already priced in what surprises they can imagine.
On the date of publication, Nicolas Chahine did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Nicolas Chahine is the managing director of SellSpreads.com.
Nicolas Chahine, InvestorPlace Contributor
NFL’s Brandon Marshall Warns LeBron, Kids Playhouse Is ‘Worst Investment Ever!’
LeBron James is going to SERIOUSLY regret buying his daughter that big-ass playhouse … so says Brandon Marshall, who claims the whole thing is “the worst investment ever!!!”
Don’t get it twisted … the ex-NFL star loves the sentiment behind the King’s gift to his 5-year-old — he just says he knows from personal experience the mini-mansion ain’t worth it!!!
“I actually, in 2015, bought my twins a house similar to this,” Marshall said on FS1’s “First Things First” on Wednesday. “And, I’m embarrassed to say how much it cost me.”
“This is a great moment for LeBron. But it’s a bad moment for me. It reminds me of the worst investment I ever made. I actually bought my twins a house similar to this. The kids only went into the house 5 times in 5 years.” — @BMarshall
“And, then the upkeep on it was as much as it was taking care of my own house!”
Marshall says while the idea of it seemed cool … he claims his kids never really used it once the shine wore off.
“I’m embarrassed to tell you guys this,” Marshall said. “The kids only went in the house 5 times in 5 years! They’ve been in the house 5 times in 5 years!”
“The worst investment ever!”
So far, doesn’t seem Bron’s regretting the gift all that much … he got to spend an afternoon on Zhuri’s couch earlier this week — and it was adorable as hell.
Plus, it ain’t like Bron can’t afford it … dude made over $38 MILLION from just his Lakers checks alone this season!
Just remember to wipe your feet BEFORE you enter!
5 Easily Avoidable Investing Mistakes Beginners Don’t Have to Make
Even seasoned investors make mistakes at times. But when you start investing, you’re prone to letting your emotions take over. Maybe you get excited when the stock market surges and want to take on more risk — or you panic when it plunges and are tempted to sell off.
Don’t let your emotions stand in the way of making rational decisions about your money. Here are five mistakes beginning investors make that you can easily avoid.
Image source: Getty Images.
If you’re nervous about investing, now is never going to seem like the right time to invest. The stock market will always look like it’s overpriced or too volatile or on the brink of another crash. Or perhaps you think that now isn’t the right time for you to invest because you don’t have much disposable income.
There are a few situations where holding off on investing makes sense for your finances. For example, if you have high-interest credit card debt, you should pay it off before investing beyond your employer’s 401(k) match.
But overall, delaying is possibly the worst investing mistake you can make. A dollar invested in your 20s will go further than a dollar invested in your 30s. More time in the market has a better payoff than attempting to time the market. If you practice dollar-cost averaging and only invest money that you don’t need in the next five or 10 years, short-term market conditions really don’t matter.
With platforms like Robinhood and TD Ameritrade offering commission-free trades, it’s easy to ignore the high costs of frequent trading. But the majority of investors who buy and sell frequently underperform the market over time. Plus, they miss out on lower long-term capital gains tax rates — 0%, 15%, or 20% — which you get when you sell a security you’ve held for at least a year.
Short-term stock price fluctuations are often driven by emotion, rather than a stock’s actual value. Trading based on these ups and downs is gambling, not investing. The market rewards those buy-and-hold-quality companies for the long run.
By the time you hear about a winning stock on TV, you’re late to the party. In jumping on the bandwagon, you’re likely to pay inflated prices because all the hype is driving up the price. That doesn’t necessarily mean a stock is a bad investment just because everyone’s talking about it. But you’re certainly not going to find any bargains by investing in what everyone else is investing in.
Cheap stocks tend to be cheap for a reason. The cheapest among them are penny stocks, which usually sell for a couple of dollars or less. Those prices that look like a bargain typically reflect the fact that the issuing companies are either unproven or financially troubled.
Remember this oft-quoted nugget of Warren Buffett wisdom: “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”
It’s worth paying more to invest in stocks issued by companies with a solid history, a competitive advantage, and potential for growth. Buying fractional shares can be an affordable option for new investors seeking out high-quality stocks.
No one thinks they’ll be the one who buys high and then sells low in a panic. But in reality, it happens because people are poor estimators of their actual risk tolerance.
If you’re new to investing, it’s a must that you commit to staying invested through the downturns. It’s even better if you’re willing to capitalize on a bear market and invest even more.
Market crashes and corrections are inevitable. It’s not a question of “if,” but rather, “when.” Though it’s scary to see your nest egg’s value plummet, the majority of downturns are short-lived. The great thing about being a new investor is that you probably have plenty of time on your side.
Author: Robin Hartill, CFP
IBM and The Climate Service to Work Together with Financial Institutions and Corporations to Assess the Cost of Climate Risk
ARMONK, N.Y. and DURHAM, N.C., Oct. 14, 2020 /PRNewswire/ — IBM (NYSE: IBM) and The Climate Service (TCS), a leader in climate risk analytics for investors and businesses, today announced their alliance to work with financial institutions and corporations to better measure and quantify risks associated with climate change. As part of the alliance, the companies are now making the TCS Climanomics® software platform available via Red Hat OpenShift on IBM Cloud.
This alliance between IBM and TCS makes TCS’s advanced science available with enterprise-grade levels of scalability, availability, security, and interoperability. The companies are working together to help organizations put a price on climate risk and facilitate reporting consistent with the Task Force on Climate-Related Financial Disclosures (TCFD) framework.
The alliance will also leverage the experience of IBM Services in financial risk, analytics, weather risk, and compliance, to use the Climanomics® platform to provide climate risk analytics to clients across all sectors, including global financial services leaders, industrial corporations, and energy providers.
“At a time when markets and investors are demanding climate risk transparency and quantification, IBM is committed to providing cloud-based climate risk solutions to the financial services sector and critical infrastructure industries such as industrial, consumer, energy, and utilities,” said Dr. Murray Simpson, IBM’s Global Lead for Sustainability, Climate & Transition. “This collaboration with The Climate Service will provide clients financial insights that are based on the most advanced available science and technology. As we work with clients to integrate critical insights into their business decision-making, our goal is to inform their strategy and help them remain competitive and resilient.”
“With the TCFD framework now supported by organizations globally, demand for the Climanomics® platform has been growing fast,” says James McMahon, CEO of The Climate Service. “With IBM’s advanced technology and global experience, this work will scale quickly so we can accelerate progress on our mission to embed climate risk into global decision-making.”
“Climate change presents the markets, as well as society as a whole, with an exponential challenge. Through this collaboration we will offer solutions using the power of world-class science and technology,” continued McMahon.
IBM and TCS signed their alliance agreement in October 2019, and the two companies have been collaborating for the past year, building a go-to-market strategy. This announcement is made on the heels of the collaboration reaching several milestones that enabled the TCS Climanomics® software platform to be available on Red Hat OpenShift on IBM Cloud, as well as the commencement of a joint effort to find ways to help global financial and energy companies measure climate risk.
About The Climate Service
The Climate Service provides climate risk analytics to investors and businesses. With support from an unparalleled scientific team and advisors including four IPCC Nobel Prize-winning scientists, The Climate Service built its Climanomics® analytics platform to enable reporting and disclosure consistent with the TCFD framework. The platform empowers decision-making by putting a price on both transition and physical risk and supports long-term, strategic planning with ‘one-click’ property/asset and portfolio-level analysis, and multiple climate scenarios covering present-day to the year 2100. Insights from the platform help investors and businesses manage risk, build resilience, and drive change. Forrester Research named The Climate Service as “Leader”, the highest designation possible, in its Climate Risk Analytics New Wave 2020.
This document is current as of the initial date of publication and may be changed by IBM at any time. Not all offerings are available in every country in which IBM operates.
It is the user’s responsibility to evaluate and verify the operation of any other products or programs with IBM products and programs. IBM products are warranted according to the terms and conditions of the agreements under which they are provided.
Jared Leto, Scooter Braun and Troy Carter are backing Moment House, a startup recreating live events… digitally – TechCrunch
A pitch to offer artists a way to give geo-fenced, live events to fans around the world has brought the new Los Angeles startup Moment House $1.5 million in seed funding.
The money came from heavy hitters in the Los Angeles entertainment and investment scene including Scooter Braun, Troy Carter, Kygo’s Palm Tree Crew and Jared Leto. Patreon chief executive Jack Conte and Sequoia Capital partner Jess Lee also participated in the round.
Forerunner Ventures led the deal and the investment was made by Kirsten Green, the firm’s famous founder and managing partner. Kevin Mayer, the former chief executive of TikTok; GV chief David Krane; Aaron Levie from Box; the tech media and entertainment guru, Matthew Ball; and product maestro Eugene Wei all participated in the round as well.
Founded by Arjun Mehta, Shray Bansal, and Nigel Egrari, the company grew out of work the three men did while attending USC and the USC Jimmy Iovine & Dr. Dre Academy for the Arts, Technology and the Business of Innovation.
The company touts itself as the simplest way for artists to create online events for their fans.
For its first foray into live entertainment, Moment House is going to host a geo-fenced, location-specific tour for the musician Yungblud. Other ticketed events from Kygo, blackbear, Kaytranada, Denzel Curry and Ruel will follow, the company said.
For musicians, the company’s pitch of ticketing security, merchandise integrations global payments support, must have been music to their ears — because all of those features add up to one thing… cash.
And performers on the platform take all of the ticket revenues, with Moment House earning money by charging fans a small fee.
In a statement, company co-founder Arjun Mehta said that the company’s technology and service wasn’t a response to the COVID-19 pandemic, but rather a way to amplify the concert going experience with an online approximation.
“Moment House is empowering artists to deliver digital experiences that feel authentic and compelling,” said Leto, in a statement. “I was drawn to the unique design-driven approach because that’s what is needed to create a new category here.”
Author: Jonathan Shieber