Hello everyone! Welcome to this weekly roundup of Investing stories from deputy editor Joe Ciolli. Please subscribe here to get this newsletter in your inbox every Tuesday.
What were you doing when you were 20 years old?
Chances are that, regardless of how accomplished you were at that age, you weren’t running a 20,000-member online community on pace for $300,000 in annual revenue.
That puts Vishu Namburi and Ishaan Sandhir in elite territory. Still undergraduates at Indiana University’s Kelley School of Business, the duo are responsible for creating Eagle Investors, a wildly popular Discord server designed to help fellow Gen Z day-traders perfect their craft.
Namburi and Sandhir unveiled their creation in July 2019, positioning them perfectly for the market’s recent rally from multiyear lows to near-record levels — and the accompanying spike in young retail-investor activity.
Business Insider spoke exclusively with the Eagle Investors founders to learn what makes them tick, and how they plan to responsibly grow the community at a time when day-trading is all the rage. We also spoke to their faculty adviser, one of the server’s moderators, and multiple active users of the platform to get the inside scoop.
Going beyond Eagle Investors, the Investing team at Business Insider has continued to survey and analyze the rapidly changing market landscape. See below for our best stories of the week, including a wide array of recommendations, strategies, and tips for navigating uncertainty.
Thanks for reading!
Options trading 24 back-to-school trades
Getty Images / Justin Sullivan
The combination of earnings and back-to-school shopping makes August a historically bumpy month for retailers, according to Vishal Vivek of Goldman Sachs. Retailers face even more uncertainty this year because of questions about school openings during the pandemic and the possibility of more economic relief from Congress.
Despite that, Vivek said the options market seems to be expecting less volatility than usual from many retailers that will report their earnings this month. And that creates opportunity.
Read the full story here:
GOLDMAN SACHS: These 24 single-stock trades can help you make big returns in August as the pandemic creates a wildly unpredictable back-to-school season
Kevin Mazur/Getty Images/Robin Hood
Paul Tudor Jones, the billionaire investor and founder of Tudor Investment Corp., suffered a devastating loss early on in his trading career. After reflecting on his mistake, Jones reemerged to trounce the market in the following years, placing risk at the forefront of his strategy.
According to Jack D. Schwager’s “Market Wizards,” Jones strung together four consecutive years of triple-digit returns. Jones shared seven timeless trading rules with Schwager, while are detailed here.
Read the full story here:
Billionaire investor Paul Tudor Jones famously earned a 4-year streak of triple-digit returns. Here are the 7 trading rules he lives by after suffering a devastating loss.
Options trading How to play a vaccine-led exodus from tech stocks
Steve Parsons-WPA Pool/Getty Images
Large-cap tech stocks have benefited from a demand surge amid the pandemic. Some on Wall Street, including Charles Schwab’s Bill McMahon, believe a vaccine will be the catalyst that drives investors away from tech.
McMahon breaks down two sectors and three stocks that he believes would benefit most from demand shifts caused by a vaccine.
Read the full story here:
Charles Schwab’s stock-picking chief told us why a COVID-19 vaccine would trigger a mass exit from tech stocks — and pinpoints 3 companies that would benefit instead
Options trading Stock pick central
Seeking experts who are willing to name names? Look no further:
- RBC says buy these 47 stocks spanning every industry that are poised to crush the market if Joe Biden wins in a wave election
- MORGAN STANLEY: Buy these 9 top-rated stocks right now for market-beating returns of 15%-plus over the next 3 months
- Bank of America shares a simple stock-trading strategy with a track record of repeatedly beating the market — including the 20 companies that best exploit it now
- Fred Liu’s Hayden Capital has returned more than 100% in 2020. He breaks down the simple strategy he used to pinpoint 2 stocks that grew 10 times within just a few years.
- Travis Briggs has more than doubled his clients’ money since 2014 by investing in robotics. He told us the 5 stocks best-positioned for the seismic technological shifts the coronavirus has caused.
Options trading Chart of the week
One major reason why Morgan Stanley is bullish on US stocks — even at near-record levels — is because of the firm’s faith in a strong economic recovery. It points to the chart above to support that point.
As the spiking dark blue line shows, personal disposable income growth sits at record levels. Morgan Stanley credits Federal Reserve stimulus efforts for the surge, saying “the programs appear to be accomplishing their goal more effectively than expected.”
Options trading Quote of the week
“We’re seeing a lot more younger kids come in with their Robinhood accounts. They’re saying, ‘Yeah, I’m 18. How do I trade?’ It’s relatively easy right now to trade options … but a lot of these traders don’t understand what they’re doing.”
Real Life. Real News. Real Voices
Help us tell more of the stories that matterBecome a founding member
— Vishu Namburi, co-founder of online investing server Eagle Investors, discussing how inexperienced many young day-traders are — something his platform is designed to help with
Subscribe to the newsletter news
We hate SPAM and promise to keep your email address safe