Monthly performance on iBillionaire in September was strong. Which investments on iBillionaire performed best in September, which lagged, and why? Read below to learn more about the monthly performance of the best and worst on iBillionaire last month, and see how our investments performed compared to the rest of the market.
The three top performers were AMD stock, the Marijuana iBTF, and Square stock. Here’s what happened.
Advanced Micro Devices (AMD): +22.73%
AMD, a semiconductor microchip company, has returned +200.49% year-to-date as of September 30, so September’s performance, while stunning, is also approximately the same as AMD’s average monthly return so far this year. Performance has been and continues to be strong this year largely because of growing revenues and advances the company is making against Intel, one of its main rivals. In the second quarter, revenue grew by 53%. Intel meanwhile, announced that they discovered a security vulnerability in its chips, and a delayed release of its new chip. The new Intel chip by the way, is 10nm while AMD’s new chip will be 7nm (smaller is better in nanometers), and now thanks to Intel’s delay, both will be released at the same time. 😬 🎮 💻
Marijuana Strategy iBTF: +20.87%
Marijuana stocks had a wild ride in September, and a handful of the 11 stocks in the iBillionaire Marijuana iBTF experienced double-to-triple digit gains mid-month, only to fall days later. In the end, many stocks still ended the month with considerable gains. Thus, our iBTF was a top performer in September. News that Coca Cola was considering partnering with a marijuana company to create new beverages seemed to drive performance of multiple marijuana companies mid-month, and news continued about mainstream partnerships throughout the rest of the month.
Square (SQ): +11.70%
Square experienced negative performance through the first half of the month, until an analyst said the company is up there with the FAANGs (Facebook, Apple, Amazon, Netflix & Google) and should be grouped with them. He also said it could go to $125. At the time, Square’s stock price was around $85. It rose almost immediately to $95, and ended the month at $99.
The three worst performers were the Ethereum fund, the Bitcoin fund, and Tesla stock. Here’s what happened.
Investors and observers of cryptocurrencies are accustomed to large performance swings at this point. In September, the main cause appeared to be a federal ruling that initial coin offerings fall under U.S. securities laws. As a currency, and not a security, Ethereum and others would enjoy looser regulations. The decision had to do with charges of fraud related to an initial coin offering (the crypto version of an initial public offering “IPO”). The accused was trying to avoid the charges by arguing that Ethereum was a currency, not a security. The judge disagreed. Now the jury will decide in court.
Bitcoin and Ethereum move up and down in tandem, albeit to different extents, almost all of the time. Volatility is nothing new for either of them. Remember that both Ethereum and Bitcoin investments on iBillionaire are not the cryptocurrencies themselves, but the publicly traded funds that purchase the coins, and allow investors to purchase fund shares.
Tesla (TSLA): -12.23%
Tesla’s terrible performance in September was largely a matter of timing. The SEC said it sued Elon Musk for fraud on September 28, the last trading day of the month. The SEC also wanted to bar Must from being CEO. Its stock price dropped from 307 to 264 that day, a 14% drop. But by Monday, Musk had settled with the SEC and TSLA was back to 310.
Thought for next month 📈
Many analysts expect the bull run to continue, and the Federal Reserve raised rates for the third time this year in September with the view that the economy is healthy. Indeed, the S&P 500 and the NASDAQ recently hit record highs in August, and the unemployment rate is currently 3.9%, the same as the historic low. The S&P 500 returned about 0.60% in September, versus 3.3% in August, and 3.7% in July. Out of all of the major asset classes, the strongest performer in September was commodities (broadly defined) +1.9%. Foreign developed market equities +0.9% and emerging market sovereign bonds +0.6% also outperformed. Both U.S. REITS -2.6% and foreign REITS -2.3% underperformed. Foreign bonds underperformed as well -1.1%. Year-to-date through September, the S&P has returned 10.6%, indisputably strong performance. However there are also increasing concerns that the market is overheating.
Our recommendation 👌
At iBillionaire, we recommend investing the same amount at regular intervals and investing for the long term. Following monthly performance is a great way to learn about particular investments and market events, but don’t let the news dictate your investment strategy. Continuing to invest during down markets can actually be actually advantageous long-term (depending on the investment) because the same amount of money buys more shares. Timing the market is extremely difficult, if not impossible.
Using our automatic investment plans, you can avoid making irrational decisions. Our plans automatically invest the amount you choose on a regular schedule, ensuring you buy more shares when prices are low, and fewer shares when prices are high.
Quote of the month:
“You don’t wanna buy to hold for a year, you don’t wanna buy with the idea that you could sell it in two years or three years necessarily, to make money. You could lose money that way. Buy the S&P 500 for $10, $20, just keep buying the S&P 500 and forget about all the other nonsense that’s being sold to you. America is a powerful economic machine that, since 1776, it’s worked and it’s gonna keep working.” – Warren Buffett
Yours in up markets and in down,
P.S. We have an awesome new tool on our website
We now have an investment calculator that lets you pick your initial and repeat investments and calculate how much you could have in the future.
Important Note: Past returns do not indicate future performance. Market returns source: James Picerno.