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The past year was anything but typical. Meme stocks, lots of volatility, and high-reaching technology stocks might have your head twirling about what is next. You may have sold some of your bank stocks  only to now see them return, or maybe you loaded up on some meme stocks only to see them come back down.

Since long term investing is all about pushing through market volatility, if you have been hit by the market, you should consider not leaving the market, and instead buying into diversified exchange-traded funds, also simply called ETFs. Here are two such ETFs that try to limit volatility while also seeking to give market-stomping performance.

SPDR MSCI USA

The SPDR MSCI Strategic Factors (QUS) has an “enhanced indexing strategy,” where it puts money into an index depending on particular factors. It then bets its money on stocks with less volatility and that are well valued, with the goal of providing returns that go further than traditional indexes with lower risk. It is a formation of three indexes — the MSCI Quality, the MSCI Value Weighted and the MSCI Minimum Volatility, all proportioned equally.

Because it is based on three different indexes, it is diversified well, containing 620 companies. I believe this fund is among the top low-volatility ETFs. It does not have a track record like other ETFs, but the profits have remained steady since its start in 2015. This year it is higher by 12% ytd, which is better than the S&P 500 index. Over the previous five years it has given an annual 16.1%, which is slightly under the S&P. But remember, this fund was starting during a long bull market. It revealed its value in 2018 when it was under only 3% while the S&P 500 was down more than 6%. Given more track record, this ETF could stand out for investors not wanting volatile markets.

Invesco Equal Weight

The Invesco S&P 500 Equal Weight Technology ETF (RYT) is somewhat different from typical technology ETFs. It puts its money into big tech companies that drive the market over the past 10 years, but as it is weighted equally, it has more diversity and less risk than its competitors.

This ETF is aligned with the S&P 500 Equal Weight Information Technology Index, so it is invested into the 75 top tech stocks. But while most ETFs are weighted to the market, meaning the bigger the cap the bigger the stake, this fund is equally-weighted, and no holding is bigger than 1.64%. For investors who are looking to invest in tech but are worried about volatility, this is an excellent choice.

The fund has given great returns that beat the S&P 500 after it started in 2006. It is higher by around 10% ytd through May 27, which is just under the 11% ytd return of the S&P 500. But over the past five- and 10-year time frame, it has given 27.1% and 18.5%, respectively. Since its launch this fund has given a great average annual return of 14.3%. The expense ratio is just 0.40%, which is under the average for the category.

Author: Blake Ambrose

Author: Dividend Bull

Source: YouTube: This is the Fastest Possible Way to Live Off Dividends

Cloud computing is among the most important technologies right now, and it will keep being so for years to come. The latest numbers show that cloud computing market will grow from $270 billion last year to reach $397 billion by around 2022.

How can you best profit from cloud computing’s growth? By investing in great companies that are leaders in this sector. To help you do this, we asked two top investors for their current cloud favorite ideas and they responded with Snowflake and Atlassian.

Snowflake

When Snowflake had its IPO around eight months ago, it took everyone by surprise. The stock was around the priced in range of $75 to $85 a share and was eventually boosted to $120 as demand surged. Shares soared and did not look back, opening at $245 and ending at $255, higher by 113% on its first day of trading, making it the largest software IPO ever.

 

While excitement might have faded, its future is just as bright as it ever was. Savvy investors can now buy shares under the IPO price for a great cloud stock that is just getting started.

Snowflake gives its customers a cloud-based warehouse that allows them to store, access, and easily share their data. It breaks down into data silos, taking in both semi-structured and structured data, helping its customers extract more useful information. Perhaps even better, the offering is cloud-agnostic, meaning its services work with many cloud platforms, like Amazon’s AWS and Microsoft Azure, among others.

 

For its 2022 fiscal Q1 (which ended on April 30, 2021), Snowflake’s revenue of $214 million went up by 110% y/y, keeping the triple-digit growth it produced last year. Even better is the firm’s forecast for 2021, as Snowflake is looking at fiscal 2022 revenue growth of over 85% at the midpoint of its predictions. While the firm is losing money, it expects adjusted free cash flow to reach breakeven this fiscal year, which should do away with anxiety about its lack of profits.

Snowflake’s customer counts are also impressive. Total customers of 4,532 grew by 67% y/y, while those paying $1 million or more over the trailing-12-month time frame increased by 117%. Not only is the firm bringing in new higher-paying clients, but existing users are spending more too, as evidenced by the Snowflake’s net revenue retention of 168%.

Atlassian

Atlassian’s goal is to “unleash the power of teams.” Combined with its drive to be a cloud-first organization, it is becoming an unstoppable company. Their recent customer growth and revenue numbers are evidence this software is giving incredible value for its subscribers. Even as it attracts a large customer base, it is growing even faster. This means once customers jump in, they realize the value of Atlassian’s toolset and then expand their spending.

The company is transitioning customers off its on-premise platform to a cloud-first platform. This change is allowing the research team to invest more in its product. It has released what it labels its Point A tools, a collection of applications being influenced by the companies who are using them. With early feedback, these tools are getting the most requested features to allow customers to get these changes in record time.

Next year might be a little difficult for Atlassian as its subscribers switch over to its cloud products, but it will come out the other side stronger than before. Investors should invest in some shares of this incredible cloud company today.

Author: Steven Sinclaire

With bitcoin declining, many analysts seem to think the number one cryptocurrency by market cap will soon get overtaken. And according to a new Goldman Sachs report, executives are firmly suggesting that Ethereum could be on the verge of being the king of cryptos.

Previously this month, Ethereum – the current second largest cryptocurrency – reached a fresh high of around $4,000 per coin. Naturally, when bitcoin moves, ETH tends to go too, and now the crypto has been hovering between the mid to high $2,000 level. It is a large loss, but the crypto still has a market cap of around $250 billion. And when compared to bitcoin’s $660 billion value, you see the gap is narrowing.

Ethereum might have a ways to go, but according to financial giant Goldman Sachs, it is capable of making the move. The report claims that the crypto has a “high likelihood” of “overtaking bitcoin.”

Goldman Sachs says

“Given the crucial nature of real word uses in deciding value, ether has a high possibility of overtaking bitcoin as the top cryptocurrency… Ethereum’s ecosystem is the foundation of smart contracts and gives a way to produce new applications.”

The belief that Ethereum will be the top force in the world of crypto is echoed by people like Kosala Hemachandra, executive at My Ether Wallet. Kosala says:

“Unlike bitcoin, ETH is more than just a value token, it also fuels the use cases which are built on top of its blockchain. Even with the decline in price, long-term development is not affected, and Ethereum is going toward market dominance over bitcoin.”

Author: Steven Sinclaire

How much do you need to become a millionaire? That number is very likely lower than you imagine — especially if you’re young. The stock market builds your money for you. And if you made the right moves 30 years ago, you could be sitting on $1 million dollars right now.

If the incredible returns we see in the market continue, you might still have a shot at becoming a millionaire. All you need to do is follow this advice:

Manage Volatility

Investing in stocks is not without its lows and highs. Low years would have been 1931 where you would have lost 43% of your money while high ones like 1933 would have earned you 54% in just a year.

It might be possible that you are ok with these kinds of fluctuations now, but that could change when you’re older. Take a serious look at your risk tolerances annually, making sure they have not changed. Then react accordingly. That is the best way to avoid getting too aggressive.

Timing

The S&P 500 opened in 2001 trading at 1,320. After getting hit with losses that year, in 2002, and again in 2008, it ended the decade lower than where it began, at 1,258. But the next decade was an exciting one with extreme growth, and this index ended at 3,756 — almost three times greater than 20 years before.

Having a lot of exposure to the worst years while skipping the best years can significantly harm your average. And to make sure this does not happen, you must stay invested in the market every year, no matter what happens.

Consistency

Making your yearly contributions, investing your money, and staying in the game are very important. There might be times when you cannot invest what you had planned. There might also be times of great volatility when you get anxious and you lower your exposure, or your money sits in cash longer than you had planned.

When investing, consistency is key. The more contributions you miss, the further you get from your projections. And ensuring you pay close attention to any unplanned pauses in your investing can help you keep yourself accountable to your goal.

The stock market has gone through steady growth since its start. And investing can help you reach millionaire status with only $500 a month. And the earlier you start, the higher your chances are to get there.

 

Author: Blake Ambrose

Streaming has taken over the media industry. Companies such as Netflix (NASDAQ:NFLX) and HBO are investing billions on content, while Apple (NASDAQ:AAPL) and others are going for music streaming customers.

But what company is supporting all this content? Meet Avid Technology (NASDAQ:AVID). The company is the foundation of media creation, and might be a great investment during this content boom. Here is why.

The Products

Avid Technology sells software and hardware tools to music and video creators. It has three main product lines: audio, video, and cloud.

Audio contains their Pro Tools, a selection of software tools for musicians. Along with this software the company also sells hardware to help with editing and recording. Their customers in this sector are professional musicians, film studios, and live event sound teams.

Avid also has a new music distribution service called Avid Play that allows musicians to bypass music labels and keep 100% of their earnings when they upload to services like Apple and Spotify.

Avid is attempting to transfer its Pro Tools customers to payment plans. In the first quarter of this year, Pro Tools reached 208k paid subscriptions, which is up 55% y/y.

Avid’s video flagship is Media Composer. It is the standard software in the professional video editing sector. Avid also provides video storage solutions through their NEXIS product, and is working to move its storage products to the cloud. Media Composer subscribers reached 62k in the first quarter, up 41% y/y.

Avid’s third business is its media platform geared toward newsrooms. Its top product here is Media Central, a software that helps newsrooms communicate, manage stories, and broadcast across different platforms. Like its other sectors, the company is working to move Media Central customers to a cloud-based solution that will help reporters work from different locations.

Financials And The Future

With its big switch from selling software to a subscription model, Avid has begun to see strong across the board growth, as shown by the robust double-digit-percentage increase in the numbers of subscribers. While some of its products declined in 2020, giving an overall revenue drop compared to 2019, subscription revenue grew and was higher by 61% in 2020.

In the first quarter of 2021, subscriptions reached $25 million and were 26% of total revenue, vs. 9% back in 2018. Executives expect subscriptions to get to 50% of total sales by 2024. This change is important because subscription sales provide better economics. Investors should witness subscription sales marching upward as a percentage of revenue in the next three years, which would show that the company is doing well on its cloud transitions.

With the trend of huge budgets in content creation, including the return of live shows and entertainment, and a move toward more profitable subscriptions, Avid could be a great long-term investment into the growth of streaming content.

Author: Scott Dowdy

Apple is seeking to hire a manager for “alternative payments,” hinting at its desire to enter the cryptocurrency sector

A job posted online this week asks for job candidates that have experience in new payment solutions. Key qualifications include having over five years of experience in things like digital wallets, “pay later” services, and cryptocurrencies.

The manager, who will be stationed in Apple’s Cupertino headquarters in California, will be the person who creates new business deals with “alternative payment partners.”

The tech giant is looking for a new manager as it prepares to support bitcoin payments through its Wallet app. The App store listing for Coinbase shows that the app supports transactions being made using the Apple Wallet, but there are not yet details about how this integration will proceed.

Coinbase’s website says it “does not yet support Apple Pay, but we hope to have a safer and faster way to use cryptocurrency on iOS soon.”

Crypto enthusiasts and investors have taken Apple’s job ad as proof that the company is looking to start allowing cryptocurrencies as a form of payment. Tesla said in February it would allow bitcoin payments, causing a 16% spike in bitcoin’s price. But the EV maker soon backpeddled on this, citing climate concerns.

Apple has so far not issued any public statements about its cryptocurrency plans. Apple Pay vice president Jennifer Bailey said in 2019 that the company believes crypto has “interesting long-term possibilities.”

Author: Scott Dowdy

It is a revolutionary time for the energy industry. Electric vehicles and batteries are beginning to replace internal combustion engines. As the revolution continues, some penny stocks might soar as this transition continues.

Small companies may create products that can solve the problems harming the transition to a zero-carbon world. As a consequence, these following two penny stocks might jump 10 times or more.

OZOP Energy

OZOP Energy says that its charging systems “can be set up within days in urban areas.” In addition to giving greater convenience, the speed of these installations seem to point to the systems being cheaper than competitors.

The firm is developing its chargers into a “Modular Network.” This “will create a new form of electrical supply,” according to the firm. This could power the OZOP’s microgrids. These grids would allow businesses to a source of electricity even if the power grid fails. The company’s microgrids also enable businesses to utilize the power that their renewables provide in whatever way they wish.

For example, companies can sell the power that their solar energy panels produce. They can direct the remaining amounts to lowering their own electricity bills.

SunHydrogen

Next is SunHydrogen. The company says that it is “creating a breakthrough, cheap tech to produce renewable hydrogen using sunlight and water, including wastewater and seawater.” The company added that it uses “water electrolysis” along with “cheaper nanoparticles that copy photosynthesis … to divide water from hydrogen.” This process is inexpensive. Which means it could one day power planes, boats and other vehicles.

As we have said before, investing in companies that are creating brand new technologies is very risky. But in this case, SunHydrogen’s CTO, Dr. Joun Lee, has published more than 20 articles in peer-reviewed journals. And she has “studied the application of novel 1-d nanomaterials for photovoltaics and artificial photosynthetic systems,” the company says. So the technology seems to have a good foundation.

SunHydrogen’s current cap is $279 million, which is not low but it is also not much lower than many other very promising, pre-revenue tech hopefuls.

Author: Scott Dowdy

Investors shorting meme stocks AMC Entertainment and GameStop are now estimated to have lost $754 million this week as shares of the two companies rallied, data from analytics company Ortex shows.

Shares in GameStop, which was at the center of the Reddit short-selling earlier this year, increased by 8% to almost $225 in premarket trading this Wednesday, a day after increasing by 18%. Shares in theater company AMC went up by 39%.

“Such a rise can cause shorter sellers to attempt to close their positions by buying back shares, triggering more demand which then leads the price to boost up even more,” said Peter Hillerberg, co-founder of Ortex.

“This is what Reddit is looking for.”

Short interest in GME it is now at 17% of freefloat and AMC is now estimated at around 21% of freefloat, according to Refinitiv.

Ortex data reveals that short-sellers lost $618 million during Tuesday’s trading, now rising to $754 million as of Thursday morning including aftermarket trading.

Author: Scott Dowdy

3D Systems (NYSE:DDD) increased by 35% after the 3D printing firm released its first-quarter 2021 numbers that beat expectations. Its revenue climbed 17% y/y, and it was profitable from an adjusted basis.

While it is still early in the company’s reversal, things are looking good over the past couple of quarters. Revenue is increasing, debt has vanished, cash flow is positive, and non-core assets are divested.

But one of CEO Jeffrey Graves’ best moves has not got the news it deserves: increasing the firm’s push into the growing 3D bioprinting sector.

The Holy Grail in bioprinting is the use of technology to give a fully functional solid human organ, though there are also possibly many lucrative options in the short and intermediate terms.

3D Bioprinting Grows

3D Systems announced earlier this month it had bought Allevi, a small 3D bioprinting firm. “Bioprinting” usually means to use 3D technology to print human and animal cells to produce 3D, functional tissues.

3D Systems has partnered with United Therapeutics (NASDAQ:UTHR) since 2017. The goal of this partnership is to use bioprinting to create solid organs for human use, starting with the lung. While this has huge potential, any revenue from it is potentially many years into the future.

The Allevi purchase is important because it represents 3D Systems’ entrance into the bioprinting sector. On the recent Q1 earnings call, the CEO said buying Allevi makes his company well stationed across a broad range of applications from drug discovery to the printing of bones, arteries, and soft tissues and eventually solid-organs.

About Allevi

Allevi (formerly called BioBots) was started in 2014 by several graduates of the University of Pennsylvania. The company creates bioprinters, biomaterials and specialized software.

On 3D Systems’ first quarter call, Graves revealed that “Allevi has a strong technology foundation, brand, and distribution for this growing market with a presence in over 40 nations.” This market presence is not surprising, as Allevi got awards and recognition from the start.The company beat over 500 other companies to win “Most Innovative” at a 2015 Accelerator competition.

3D Systems did not release sales data for Allevi, but its annual revenue is reported by D&B to be around $1.9 million. While this number is only an estimate, it gives us a ballpark sum. 3D Systems produced revenue of $146.1 million in Q1, so its annual rate is around $584 million. Allevi’s revenue is not currently material to 3D Systems’ numbers, but its cross-selling and scale gives 3D Systems a path to quickly increase its new bioprinting sector.

Author: Blake Ambrose

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