To Financially Advise, Or Not To Advise: That Is The Question...

[Daily Financial Journal]( [TODAY'S DEAL: Honestly, you should get this book](mailto:editor@dailyfinancialjournal.com?subject=Give+me+my+top+stocks+for+2020&body=Give+me+my+top+stocks+for+2020) Todays Top News [To Financially Advise, Or Not To Advise: That Is The Question…] To Financially Advise, Or Not To Advise: That Is The Question… Once we start making a significant amount of money and start wondering how we should manage it, we start thinking about the possibility of having a financial advisor guide our investing decisions. Which leads to the main question: Should you figure it all out and do it yourself, or should you outsource the thinking process to a trusted professional? There are a few instances where having a wealth advisor can be beneficial: - When you do not have the time to do all the research yourself (reading the top results off Google doesn’t count as “research,” by the way) - When you are uncertain of the direction you should take - When your finances are distributed across numerous funds and you don’t know how to manage them all in the most optimal way In these instances, having a financial advisor can give you the peace of mind you need. Managing your own investments can be very stressful if you do not know what you are doing. But let’s get real for a second: Any advisor you sign up with is going to take a chunk of the profits. Whether you pay commissions to your advisor or an annual fee (regardless of how well or poorly your capital performs), it WILL cost you. And financially savvy people – people like you, who take the time to read this newsletter every day – know how expensive fees can be when accumulated over several decades. Plus, if you’re already certain in your decision-making and your financial goals, it may not be worth it to work alongside a financial advisor. So should you get a financial advisor? It honestly depends, as numerous variables come into play. It’s an individual decision that is right for some and not for others. But let me know what YOU think about this. Is getting a financial advisor worth it, or not? Reply to this newsletter with your successes and failures in working with an advisor! Investing [Extreme Worldwide Poverty Is Making a Comeback] Extreme Worldwide Poverty Is Making a Comeback Just when you think the world is on good pace towards eliminating poverty, something finds a way to put us back into a state of being extremely poor. Namely, the global COVID-19 lockdowns that are proving to be more harmful than the virus itself. According to a report recently published by the Pulitzer Center on Crisis Reporting: “With the virus and its restrictions, up to 100 million more people globally could fall into the bitter existence of living on just $1.90 a day.” “Thanks to the misguided enthusiasm of Western governments for imprisoning entire populations in their homes, thereby triggering a global recession, tens of millions of people will die of starvation in low-income countries” Poverty is one of the deadliest social diseases on the planet. People living in poverty cannot get treatment for threatening medical conditions, end up with prematurely shortened life spans, and live a FAR lower quality of life than what should be humanely acceptable. If you think the effect of the global lockdowns on developed countries like the United States is bad, imagine what it does to the hundreds of millions of people living in third-world countries like Nigeria and Ethiopia. It didn’t have to be this way. It really didn’t. And it’s sad that less than 10 countries around the world have realized it way before anyone else did. Looks like Sweden was FAR ahead of the curve from the get-go… Don't Miss This [Airbnb’s IPO Will FINALLY Go Live in 2020] Airbnb’s IPO Will FINALLY Go Live in 2020 Airbnb has had a rather dismal 2020 up until now. The COVID-19 pandemic forced them to cut costs by laying off 1,900 employees (25% of their entire workforce), while their revenues for the year are projected to be less than 50% of what was earned in 2019. Coupled with a $13 billion loss in their private valuation (now its $18 billion), it all seems to be going downhill. It makes perfect sense when you recall that Airbnb is a HUGE part of the international tourism industry. With travel demand at an all-time low, the last thing anybody wants to do is engage in a short-term renting agreement for a stranger’s home… even if it is thoroughly cleaned. But according to anonymous sources, Airbnb intends to confidentially submit a filing with the Securities Exchange Commission and go public as early as this month. Which means their shares could be traded on the New York Stock Exchange before then end of 2020. This move was obviously delayed due to the coronavirus crisis, but they view the present moment as their last chance to file. Nothing will get better or worse from here on out (hopefully), and they’ve been putting off their decision to go public for a very long time. For their sake, travel demand needs to see some positive movement by the time their shares go live. Otherwise, the IPO will go down as one of the biggest flops in stock market history. [Why Going “All In” on Tech Stocks Is a Foolish Idea] Why Going “All In” on Tech Stocks Is a Foolish Idea Technology stocks are the “wild card” amongst experienced traders and investors. They can lead to some phenomenal gains or some phenomenal losses. Which is why I can’t help but laugh my a** off when I see people putting 100% of their capital into high-performing tech stocks such as Facebook, Google, Amazon and Apple. They may currently make up 20% of the S&P 500’s market activity and deliver some great returns for their shareholders, but take a look at what’s really going on. Tech stocks are thriving because of the current climate around the coronavirus. With remote working at an all-time high and an ever-increasing reliance on technology, it’s only natural for companies centered around digital products and services to flourish. However, COVID-19 won’t last forever and we will eventually return to normal life. When that happens, it’s hard to say if the current demand for said companies will continue to exist. Today’s dominating tech stock could easily become tomorrow’s has-been loser. And don’t forget what happened in the infamous “dot com” bubble nearly two decades ago: Those who had their portfolio focused exclusively on tech stocks lost a LOT more than the gains made before the crash. I’m not saying to AVOID tech stocks altogether. What I’m saying is to diversify and have a long-term focus on companies that will thrive regardless of economic circumstances. Look for evergreen sectors and businesses that will always be in a state of relatively high demand. [Investment Banking Interns Are Having the Time of Their Lives] Investment Banking Interns Are Having the Time of Their Lives The COVID-19 pandemic hasn’t stopped big banks on Wall Street from offering their highly coveted internships towards aspiring investment bankers in their early 20s. In fact, their virtual internships have become a source of fun and enjoyment, rather than a grueling experience which works young adults until they feel sick and cannot get up. Tons of virtual meetings via Zoom, cooking classes, laid-back networking opportunities with executives, fun case studies and projects… all while being paid generous sums of money. Some banks have gone as far as to send electricity generators to interns in developing countries who desperately need them. In London, UK, interns still get paid a full salary and their internships have been reduced from 10 weeks to five. We’re talking about at least $1,300 per week here! And in a weird paradox, the interns’ behavior is actually far less competitive in nature and instead more collaborative. So long as minimum standards are met, job offers upon graduation are virtually guaranteed for the interns. Could this be the future of a sustainable work-life balance for the finance sector? I sure hope so, considering the horror stories of newly minted bankers who end up suffering from an untold level of mental and physical health issues… [Could Uber Rides Become 111% More Expensive in California?] Could Uber Rides Become 111% More Expensive in California? Uber and Lyft are starting to face a crisis which could very well impact their chances of survivability in a post-coronavirus world. In a ruling issued by a San Francisco judge on Monday, Uber is being forced to classify its drivers as employees instead of independent contractors. This means that Uber must legally provide health insurance, overtime pay, and other benefits normally issued to full-time workers. To oversimplify the legal terminology of the ruling, the judge argued that Uber’s classification of their drivers as contractors is illegal in accordance with California law. Uber is fighting tooth and nail to appeal this ruling, and for the following reasons… If this ruling sticks, Uber will not be able to provide their current level of service across so many cities in America. They will only have enough funds to take on far fewer drivers working in a full-time capacity. Thus, the additional employee benefits – and the reduction in service – will have to be covered by making rides 25-111% more expensive. More expensive rides means fewer rides that can be afforded by passengers. (And naturally, areas that are less population-dense will see the highest price hikes.) Let me ask you this: If this ruling happens in your city, would YOU be willing to pay up to 111% more for your average Uber ride? Let me know what you think about this legal ruling by replying to this newsletter! [Vote Now] PS. How useful did you find today’s update? 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