Special Report: The 10 Greatest “Savings Account” stocks–No. 4 Adobe
Today, September 25, I’m making Adobe (ADBE) my fourth pick in my Special Report: 10 Greatest “Savings Account Stocks.”
Today, September 25, I’m making Adobe (ADBE) my fourth pick in my Special Report: 10 Greatest “Savings Account Stocks.”
I’m starting up my videos on JubakAM.com again–this time using YouTube as a platform. My fiftieth YouTube video “Quick Pick Adobe” went up today.
You know how a savings account works, right? You deposit money in a bank. The bank uses your deposit to make a loan. Out of its profits, the bank pays you interest. That interest payment is a pittance today. 0.5% if you’re very, very lucky. But the national average is just 0.06%. What I’m calling “savings account stocks” work the same way that a bank savings account does. (Share prices do fluctuate but in the long run I’d argue that these stocks are as safe as a bank savings account.) And they pay an annual return that’s 10X–or much, much more–higher–than the paltry 0.5% now offered by the highest yielding savings accounts. How do these stocks work and why are they so much better than bank savings accounts? You–investors–give the company capital by buying newly issued shares or company bonds. The company invests that cash in making widgets or apps or whatever. And the company returns the bulk of the profits from those investments to the owners of its stock in the form of dividends, stock buybacks, and the appreciation in share price that results from the growth of the company’s business over time. I’m posting the first of my 10 Greatest “Savings Account Stocks” today and my Special Report will name a total of 10 great “savings account stocks” in posts over the next week. Today’s Greatest Savings Account Stock Pick: Microsoft (MSFT). The average annual return on Microsoft shares has been 28% over the last 10 years. Beats that 0.5% on a savings account, no?
Friday’s market action argues that investors and traders are looking to buy shares of Apple, Amazon, Microsoft–you know the usual suspects–ahead of what looks like a blowout earnings season that will start on July 13 when JPMorgan Chase (JPM) reports before the market open.
Yesterday, growth stocks climbed in the face of signals from the Federal Reserve on Wednesday that interest rates increase were coming sooner–as soon as the end of 2022–than expected. That seemed puzzling. May be, one line of thought (mine) had it, investors and traders decided that growth stocks would outrun any increase in interest rates that might take place in 2022 or 2023. Today, we got the selling that many had expected yesterday
In my daily trawling through the market I come upon lots of tidbits of knowledge that I think are important to investors but that don’t justify a full post. I’ve decided to start compiling these notes here each day in a kind of running mini blog that I’m calling Notes You Need. A representative items resembles this from today: “10:20: Wall Street analysts rushed to raise their target prices for Adobe Systems (ADBE) after the company beat earnings and revenue estimates yesterday. The stock closed yesterday at $218.87 and was up 3.05% at $225.55 at the close today. BMO Capital Markets raised its target price to $260 a share from $205. Stifel took its target to $250 from $230.”
In my daily trawling through the market I come upon lots of tidbits of knowledge that I think are important to investors but that don’t justify a full post. I’ve decided to start compiling these notes here each day in a kind of running mini blog that I’m calling Notes You Need. A typical item would resemble this from today: “10:40 a.m.: Costco (COST) is up almost 5% this morning after releasing earnings for the fiscal first quarter after the close yesterday and showed the company is doing just fine in the face of competition from Amazon (AMZN) Sales climbed 13.3% in the first quarter with a 43% increase in e-commerce sales.”Â
Financial markets today shrugged off testimony from fired FBI director James Comey, a stunning election rebuke of Prime Minister Theresa May in UK elections, and a lack of news from the European Central Bank yesterday. The Standard & Poor’s 500 stock index is up 0.14% as of 12:30 p.m. New York time today. The only exception to the calm is the pound, which has tumbled almost 2% against the dollar