Preventing Investment Scams: Don’t answer that call

A lot of scams start with a random phone call. It could be someone offering you an investment or it could be someone posing as an employee of the bank you deal with. But think about it: Do you really think that there is a legitimate random stranger phoning you with a legitimate, safe, high-return investment opportunity? This is not how the investment world works.

Banking and other scams, on the other hand, prey on fear. A caller might tell you that your bank account has been hacked and your savings could be drained. But again, you need to use common sense here.

If your bank account has been hacked and the bank knows enough about it to call you, the easiest solution is to simply freeze the account until the problem can be investigated. You can go to the bank with identification to help solve the problem. At the very least, hang up and then call the bank back. Not on the number the scammer gives you, but the number you might regularly call or the main number from the bank’s website.
Unlock Premium - Try 5i Free

Markets appear to be recovering from weakness in April. Investors are cautious with under performance in tech since January. Will be interesting to see if trend in tech slowness will continue. Energy & industrial sectors appear to be benefiting from rotation. Defensive stocks appear to be the latest trend in investor tastes. Expecting strength in defensive sector as investors seek protection from "sell in May" traders. Will be opportunities in the spring/summer for stocks that have sold off. Four year election cycle will weigh on certain stocks - uncertain which sectors will benefit the most from spending by politicians looking to get re-elected. 

Doesn't think the earnings increase justifies the $20 increase a weak. Is now 29x fowrad PE now. The share buyback is massive. He wrote a covered call this morning because today's move was huge. Take profits at $190-200.

Growth to value isn't dead yet.

He bought more due to JOMO -- joy of missing out. NFLX is back on its way.

Makes sense to hold some technology, as we've seen momentum over the past year. However, in the past few months, tech hasn't necessarily been a full leader. In fact, over the last month it's been at the back of the pack. Perhaps an opportunity to purchase, but be very selective with your names. He owns GOOG, AMZN, NFLX and MSFT, but no AAPL, META or NVDA. 
 
Looking at the index, average price to sales of the Mag 7 names is 6.5x, PE is 36x. Pricey. The S&P is closer to 2x. Be careful of what names you own, what the growth rate is and, more importantly, what your portfolio allocation to tech is.