Bobby1
March 11, 2021, 9:36pm
21
thanks for the article, its interesting.
Its a good point that you’ll be paying a lot of fees to these ETFs while the ROI may not be that much. And that gave me this idea (and i’m sure im not the first one) that why not we look into different ETFs’ portfolio and invest on our own wherever they are investing.
For example, I was looking at a famouse etf, ARK and one of their branch only invests in companies like Microsoft, Tesla etc. We can invest in those directly and see how it goes ?!
I will look at you and give my opinion, please don’t do leveraged as opposed to stocks if they go down they don’t come up readily, it is supposed to be in and out, less than a month. Companies like Tesla went up 10 folds in short time so just look for disruptive companies and always use Political analysis, like with Cold War be US and China a lot of US investment is going to go to India as they intend to use India as counter do research which companies will benefit
Bobby1
March 11, 2021, 9:45pm
22
ARK seems good but it’s multi year high and many growth companies are over priced, I like under priced. I look at politics and sometimes base on next shoe to drop. When Tesla was 167 everyone bet against it now At 2000 they all want to jump in
They are not good long term investments, they re adjust the price every month and there is erosion. I would only do it for short term. They have long, short, double long and double short, you can buy oil, gas, Dow Jones, S&P, Nasdaq, technology transportation etc. You need to first decide if you are going to be value, growth or momentum. I frankly feel the market is overpriced. Market goes up when interest rates low and goes down when interest rates rise. I would buy homebuilders, lumber companies, building materials right now. Home building is going crazy.
which home builder companies are more volatile in stocks?
Exchange traded funds, or ETF’s are pools of various different types of investments such as stocks, bonds, commodities and in some cases even crypto’s. However, Shariah compliant ETF’s avoid commodities & bonds for obvious reasons, and they only invest in stocks from companies that have an acceptable debt to income ratio, and are not involved in industries that are detrimental to human wellbeing, such as adult entertainment, weapons, alcohol, long term debt, etc… Also, Sharia compliant ETF’s have a variable rate of return p.a.
Islamic ETF’s are good for long-term, only if you’ve got a few million dollars just sitting in the bank, losing their value overtime. But diversification of your portfolio is always important, never put all your eggs in one basket. A good mix of other sources of income, and etf returns is the way to go. In my dad’s case, its real estate along with ETF returns, and Alhumdulillah he is living a very comfortable life, quite the opposite of what it was just a few years ago where he would have to spend all of his energy and effort trying to run his company, just to end up earning not a whole lot more than he currently does.
European Shariah compliant ETF’s are the most steady, they have been giving out good returns despite the market being highly volatile right now. iShares, HANetf & Wahed are some of the funds that have been performing the best in the last 4 years, with iShares returning an average of 7% p.a. since 2017. 2021 has been really good so far but that is because of the lowered interest rates by the central banks, which has lead to increased borrowing, hence the term increased market volatility. Mind you, in the traditional sense, all of these gains can quickly go south if the market crashes this year, however, Islamic ETF’s won’t be affected too badly as the people behind them are careful not to invest in companies that have liquidity problems, i.e. above average debt to income ratio, the types of companies suffer the most during a market correction.
Lastly, please, I cannot stress this enough; always talk to a professional before investing into any market instrument, always invest at your own risk and never trade with leverage.
Which institutions should we pursue in order to talk to an expert? Like fidelity etc?
I’ll have to read this a few times lol. Pt. 3 & 4 are very valid. But can you explain why pully out initialinvestment fast?
also #2 ?
Bobby1
March 20, 2021, 8:02am
26
Home builders are value play and not momentum or speculative trades, they have very low PE and can double easily. Toll brothers, Lennar are good names. Risk is commodity pricing, interest rates, you could look at building materials also.
Thank you for all this detail. I needed that.
These days i’m noticing the economy boards focusing a lot on investing in ETFs thats why i was more interested.
Whats a good platform to look into islamic ETFs?
And thanks for the last tip about talking to professional. The only problem here is, how to know someone who is a real expert as well as not stealing money outta your pocket? I was contacted by some of the self-claimed “experts” who asked me they can suggest me investments in stocks etc only if i make a certain payment to them (which sounded fishy so i passed)
Maybe you should read Stock Investing for Dummies. That Reference Book can teach a lay person about such topics.
Is it available online or any other online help?
