Advice on stocks to take long position on for IRA

The only fund you need. Picking stocks is for people who accept below average returns over time.

VTSMX

I also prefer dividend stocks and reinvesting the dividend. I own the following in my main IRA.

AAPL
HD
CAT
JNJ
JPM
CVX

FNGD- triple inverse FAANG etf. Currently cheap at 28.9.

Also like KMI at 17.38

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FNGD- triple inverse FAANG etf. Currently cheap at 28.9.

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Why recommend a triple inverse ETF for someone who wants a long-term buy when time decay is a known issue?

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FNGD- triple inverse FAANG etf. Currently cheap at 28.9.

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I can’t figure out why someone would recommend this at all, especially considering the OP wants to take a LONG position and this ETN (not ETF and therefore riskier already) is essentially taking a short position on the assets it’s tracking, plus all of the issues (time decay; , volatility drag, etc.) that are inherent to leveraged funds.

In all honesty, this just seems like terrible advice. And how can one determine it’s “cheap” when the long term trend would indicate that it should continue to get cheaper, like its 40% decrease since it opened in January would indicate?

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FNGD- triple inverse FAANG etf. Currently cheap at 28.9

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And to further highlight the problem with this investment, look at its triple-leveraged counterpart, FNGU, which was first offered the same day (01/23/18) by the same brokerage and tracking the same assets. In other words, when the FANG sticks it’s tracking had a daily gain of 5%, then FNGU would have a daily gain of 15%, and FNGD would have a daily loss of 15%.

So one would expect that over any period of time, that they would yield opposite returns as well; however, due to the nature of daily resetting, and the resulting volatility drag and time decay risks, someone who invested $100 in FNGU on 01/23 would have have lost $17.30 and someone who invested $100 in FNGD on the same day would have lost $39.08.

In other words, because they have a daily standard deviation of 5.4%, 3X leverage either direction, has resulted in significant losses in both directions.

Target - TGT looks to be a good retail stock for dividend and long term growth. But I would personally prefer s&p index funds for IRA.

Will Kinder Morgan EVER do ANYTHING? Slower moving than GE of old and T!

Love the BX suggestion from the OP. Add BlackRock to the list too. BLK?

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Good start for FNGD, it is less cheap now

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Now it's only down 32.43% since its inception on 01/23 and close to losing the same amount has as non-inverse 3X FNGD which is down 26.92%. Another day like today and they may have the same losses, despite tracking in the complete opposite direction.

In other words, with such high volatility, both are likely losers in the long run, and potentially major losers. Do you understand the problems with the thing you're recommending?