Four Minute Finance

A general rule of thumb is that if you try and outsmart the money you will be wrong more often than not. The market doesn't always trade based off of rational thought and there are always factors that we can't foresee. This was something I knew but had to be reminded the hard way when Covid hit.

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It appears the market could be going down. Should you sell? The answer isn't as cut and dry as you would like...

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The value of your moonshot bet company is extremely important. Value of a company = their "Market Capitalization". Different levels of Market Cap based on how much a company is worth:

• Mega Cap: Market cap of $200 billion and greater
• Large Cap: $10 billion and greater
• Mid Cap: $2 billion to $10 billion
• Small Cap: $300 million to $2 billion
• Micro Cap: $50 million to $300 million
• Nano Cap: Under $50 million

The top 5 tech stocks make up 22% worth of value for the S&P 500. This imbalance could be terrible for the stock market if they don't post better than expected results. They led the stock market up during Covid-19 and I believe they could be the ones who lead it down.

With the large amount of risk that comes with investing in moonshot bets you have to know how to use them in your portfolio. You also need to understand the risks and rewards that are associated with what you are getting yourself into.

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Tesla's stock price has shot to the moon making a lot of early investors very rich. Now everyone is trying to pile into, Nio, the next big thing.

I'll be sharing a moonshot bet that I'm thinking about in my newsletter: https://fourminutefinance.substack.com/

On Wednesday Shopify hit $1,000. The thrill of the "next big thing" made me sell me Shopify shares too soon. In 2016 I owned roughly $4,000 worth of Shopify shares at around $40 per share. If I held onto those shares my investment would be worth over $100,000. This episode is about what I learned along the way.

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The markets are holding their breath as Q2 is around the quarter.

Fear/Greed Index link : https://money.cnn.com/data/fear-and-greed/

The Fed has proven they will do whatever it takes to make sure the stock market doesn't fail. Stocks were down big early morning until the Fed came to the rescue.

On Thursday the FED announced something they thought would help the economy and it ended up really hurting the stock market. Volatile markets are looming while our economic outlook is still extremely foggy.