I have about $30k in savings (basically my emergency fund) sitting in a bank account getting zero interest. I feel like FB & PYPL are undervalued at the current market rate. I am tempted to invest that $30k on these stocks. At the same time I told to myself that I would never touch the EF. I have been investing the past 2 years and my portfolio is still down 5%. I feel like I won’t get such opportunities again and again. Any advice? Should I go for it? TC: $240k #investments #personalfinance #meta #paypal #stock #stockmarket #buythedip #buy #emergencyfund
IMO there comes a time where EF stops making sense. Especially with your TC. If you have stocks that you can liquidate and have a high credit limit, I don’t see the need for EF.
What if market crashes? Your stocks will take a nose dive, and you’ll live on credit card for how long? Don’t mislead people.
Unless you're also fired, you just pay it off at the end of the month
How do you know it’s undervalue? what if it was overvalued all the time and now reached its actual value? My point is: don’t even get started with analyzing stocks and getting into this topic. If you want to invest 30k go for index funds and long term.
Okay keeping the company/index aside. In your opinion putting that money in stocks is okay?
Do you have some backup plan if you get fired tomorrow? (family, wife, can live with parents if needed, can liquidate stocks if needed). If yes, you can go for it. I personally would not wanna live without emergency fund in the US, so I would not do it.
You are pretty bad at investing if you lost money in past 2 years.
Yeah! I agree. Took it out at the wrong time and put it in at the wrong time. Hasty decisions all along. Trying to get better and doing my due diligence lately! 😐
It’s okay Meta. You’re not alone, I lost my money too even with due diligence. 😂 I was learning day trading without paper trading, and I was giving in to fomo while reading stuff from the Internet.
Always focus on passive investing in SPY. Active investing is a bad strategy in long run...
I get it. I have position with SPY as well. But when stocks of such companies with strong balance sheet fall isn’t it a good idea to invest?
That's the fallacy. There is no free lunch. Everything is connected to risk. Metas risk is too high with poor strategy, declining user base, erosion of margins due to iPhone privacy features, competition from TikTok, lack of new product launches apart from lameverse etc. If your hypothesis is right, hedge funds would just buy and bid Meta right up. And I don't think we are better than hedge funds, who themselves are mediocre at predicting the market at best... Invest in SPY and love your market returns with low fees and no hassle.
Buying heavy both of them. Easy money in next 1 year.
It’s okay to not have EF. I feel the EF thing applies to those who are living paycheck to paycheck. Picking stocks is on you.
Keep EF for now, learn about risk management , and then allocate a portion of your assets with stops that align with your risk affinity
Hey put $10k into i-bonds.
Never heard of these. What are they?
https://www.treasurydirect.gov/indiv/products/prod_ibonds_glance.htm
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$165k
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