Friday, July 10, 2020

This week's interesting finds

This quarter portfolio manager Tye Bousada looks at investors' path to point B and discusses why you need uncertainty and willingness to look wrong in the short term to get to point B.

Derek Skomorowski talks about risks in fixed-income investing and why it's important to fish where the best investment opportunities are.

The options market in the FAANGs - we’re not sure what you call this, but we’re pretty sure it's not called investing

July 6th call option volume on Amazon (AMZN) and Microsoft (MSFT).  Most of these are 4-day options!

Makeup and skincare trends
Beauty spending was already shifting from make-up to skincare, and this has accelerated during the shutdown:

The new and incremental buyer of online beauty products is older and wealthier – the highest percentage of first-time online buyers were over 55 and earned over $125k per year.

Robinhood's users buy and sell the riskiest financial products and do so more frequently than customers at other retail brokerage firms, but their inexperience can lead to staggering losses.

One of its users said he had been charmed by Robinhood’s one-click trading, easy access to complex investment products, and features like falling confetti and emoji-filled phone notifications that made it feel like a game. 

Robinhood users traded nine times as many shares as E-Trade customers and 40 times as many shares as Charles Schwab customers, per dollar in the average customer account in the most recent quarter. They also bought and sold 88 times as many risky options contracts as Schwab customers, relative to the average account size, according to the analysis.

At the core of Robinhood’s business is an incentive to encourage more trading.
It does not charge fees for trading, but it is still paid more if its
customers trade more.