Facebookers, Best cryptos, Best wallets, My anti-price target for Nvidia and more
Here’s the second half of the transcript from this week’s Live Q&A Chat. You can watch a replay of this Livestream Q&A Chat on Facebook or YouTube.
Subscriber: Cody, I bought a little of the Stellar Lumens and am storing them at Binance. What digital wallet place do you suggest storing it?
Cody: The answer to your question is I don’t have a good answer. You’re taking a risk. I lost Bitcoins that I bought at 100 because they were stored at Mt. Gox and Mt. Gox got hacked. I lost a lot of Bitcoin that was worth real money now. It wasn’t that big a deal when it was worth a few hundred bucks when that happened. But in the years since those big coins were stolen out of the online wallet, Bitcoin went through the roof and that is painful to even think about.
So, look, you’re taking a risk storing your cryptocurrencies anywhere. You’re taking a risk owning a cryptocurrency and I am not going to pretend that I have a good answer on where to store it on a digital wallet because I will not vouch for any of them. They’re probably all hackable. Everything’s hackable. You’ve got to be careful. Best way is to print it out and put it in a safe or something but that doesn’t even make that much sense anymore, does it, because then it’s not a cryptocurrency. Be careful. But yeah, I do own a cryptocurrency and I own a couple of online wallets and I should be pulling them off so they’re safer.
Subscriber: Cody, what makes you think Amazon will adopt a cryptocurrency? What is their driving force? Thank you.
Cody: I don’t know if I ever said Amazon’s going to adopt a cryptocurrency. What I did say is Amazon and other, Microsoft and Salesforce CRM, these companies are probably going to dominate blockchain. They are actually good blockchain investments. I don’t know that Amazon will create an outright cryptocurrency but Amazon is already starting to really go and allow people to build stuff on blockchain technology inside of Amazon. I think that’s just the very beginning of that trend.
Subscriber: Cody, any thoughts about Spotify? Would you be a seller or a buyer at current levels?
Cody: I’d rather buy than sell Spotify. I wouldn’t bet against Spotify. Spotify is the closest thing as I think I saw an analyst say, Spotify is the closest thing to Netflix in music that you could pick. There’s a lot of parallels there to be had. I like Spotify. I think their management’s been brilliant and I’ve watched them, read about them for 10 years. I remember talking about Spotify back on Fox Business 10 years ago. But, the valuation there is a little too rich for me like a lot of things in the stock market right now and I’m not probably going to buy it personally any time soon.
Subscriber: Cody, there are a few stocks you said you would nimble soon including Western Digital and Verizon. Your thoughts on current price levels and whether you would buy second and third tranche in them respectively.
Cody: Yes, I’m ready to. I don’t know why I haven’t. I’ve been busy. I’ll send out a trade alert, probably going to nibble on both of those.
Subscriber: Cody, you mentioned in your last un-trade alert that you’re not sure about puts anymore. Do you still think the QQQ is a good hedge and will you let these puts ride to expiration. The reason I ask is that I have seen you riding most of your puts to expiry, whether they are in profit or loss as you’re happy with the increase in price of your longs.
Cody: Your question there sort of underscores what one of my best mentors used to always tell me about the stock market and that is you always, wise man say, you always lose money on your hedges. Meaning, look, I want to lose money, I don’t want to lose money on my hedges, I never want to lose money. But the idea behind a hedge is that it’s protecting the other parts of your portfolio. If I’m generally bullish and generally long then when I add some put hedges it’s because I want a little protection against maybe something I’m not seeing, maybe there could be a crash, something.
So, the idea would be all of my main stocks in my real portfolio that I still I’m riding and bullishly keep going up and the put hedges they lose money if that happens. Yeah, a lot of times, most of the time, when I buy put hedges for the last seven years during this bubble blowing bull market that I’ve been writing bullishly and mostly long and sometimes aggressively long, it’s okay to lose money on those puts because the rest of the portfolio is more than making up on it. I wish I never lost money on anything. If I lose money on puts I wish I hadn’t bought them. But you got to just be cool, man.
Subscriber: In your book Cody, The Bitcoin Revolution and The Great Cryptocurrency Crash available for non-subscribers at tradingwithcody.com for the wonderful price of $3.49 …
Cody: You’re very funny Gambler15.
Subscriber: You mentioned Litecoin and Ripple as two potential cryptos that could survive. Do you believe these will be two that stick around and make it and has Stellar moved into this group?
Cody: I don’t think Litecoin is going to make it anymore. Ripple, I still think it has pretty good chance. I think Bitcoin’s better than Litecoin. I’ve always said that. I’ve never owned Litecoin but I thought it might be one that could survive. I sort of think this ship has sailed.
Subscriber: Cody, what are your top three cryptos other than that point that you believe will survive the great cryptocurrency crash?
Cody: Well, the one I recently bought and Bitcoin are really probably the only two that I feel most confident about this particular moment. Ethereum is probably up there. Amazon’s blockchain initiatives look like they’re being built on or associated with Ethereum. I’m not buying anything but the one that I bought the Trading With Cody subscribers know about recently.
That is it for the Trading With Cody questions it looks like, Trading With Cody subscriber questions. Let’s see what we got over here on Facebook.
Facebooker: Newbie question. I only have a small amount to invest, about $3000. What would you recommend?
Cody: I can guarantee you can triple your money in 30 day by just buying Bitcoin — and I’m joking, joking! I was joking, just want to be clear. Nobody’s going to triple their money on Bitcoin next 30 days. Money very much can be relative. $3000 to someone who has no rent, no mortgage, is 65 years old, saved well but not rich — 3000 bucks can be a lot of money to someone. $3000 to me when I was 23 years old moving to New York City was a hell of a lot of money. It’s food.
I’m just trying to say look, it’s not like there’s, you should phrase your thing with a small amount of capital because it could be a big amount of capital to you. Therein underscores the point I’m going to make is that be careful with your $3000. It’s hard earned money and risking it in cryptocurrencies or in stocks is risky.
There is no easy answer. Maybe buy couple of stocks, maybe buy a mutual fund, maybe buy a tiny bit of a cryptocurrency that I like or two. Just know that you’re not going to turn 3000 into 300,000 unless you win the lottery or pick a couple of amazing stocks that go up a bunch. It’s just hard, just know that.
Facebooker: Cody, I miss your show.
Thanks. I don’t know that I miss T.V.. Sometimes I wonder if I should have kept that platform because I’m so saddened and disheartened by the endless partisan propaganda from all cable news channels. All television news is partisan based. The premise of everything of every discussion is partisan. Are you liberal and Democrat, democrats are not liberal. Are you conservative or Republican, republicans are not conservative.
So, sometimes I regret leaving the platform. On the other hand, my quality of life is much better not doing T.V.. I like the fact that I can look in the mirror know that I fought what I think was evil in the Republican-Democrat regime and the wars and the bailouts and corporatism, corruption. Every day I spoke my truth. I’m certainly biased, of course, everybody’s biased but I was never partisan. I never sold out to the forces that wanted me to just please play along and talk Republican lines on Fox. And just be a Democrat if you want to be on CNN.
Always remember that Republicans are not free marketers. The Koch brothers are not libertarians. CNN is not liberal, it’s all corporatist. It’s all premised on stuff that I don’t want to be a part of. So sometimes I regret leaving the platform in the fact that maybe I could be making more of a difference and fighting parts, at least not anymore. Thanks for the kind words though.
Facebooker: I work for the Koch brothers and yes you are right Cody.
Cody: Koch brothers are not libertarians. Have you guys never read, like what drives me crazy too is I’m not a big Ayn Randite. I love Fountainhead and I love Atlas Shrugged. But if you read Fountainhead or Atlas Shrugged, the whole principles, much of the principles that Ayn Rand is talking about is about corporations that get the government to give them welfare and protections from other businesses and competitors. The Taggart, remember the Taggart Railroad, Dagny and her brother and her brother was just constantly getting bailouts and protections and new laws and help from the government for his corporation and her corporation because they’re brother and sister.
But the Koch brothers, that is them. They’re the brother of Dagny. They’re the guys who are out there begging the government to help them build a pipeline. They’re begging the government to help them fight unions. They’re begging the government to help them tariff stuff from other countries. They’re begging the government to help them create NAFTA and then undo NAFTA and create TPP and then undo TPP. And every bit of the way just getting their little itty bitty nuanced little rule changes that are going to protect their corporations and enhance their margins and profits.
That is not libertarianism, that is not what Ayn Rand, that is what Ayn rand warned you about and you people that think the Koch brothers are libertarians, if you think you’re voting Republican or somehow being libertarian and constitutional, you’re as just delusional as someone who’s voting for Democrats and think you’re doing something for poor people. So anyway, yeah, thanks Adam. I know I’m right about the Koch brothers.
Facebooker: Cody, recently divorced and need a high dividend return. What would be some good stocks to buy?
Cody: I don’t know. I don’t just off the top of my head know a bunch of high dividend stocks but the ones that I personally own would be Verizon and Intel, are probably the two highest dividend paying stocks. Apple pays a decent dividend. Intel when I bought it had a 5% dividend. The stock’s run quite a bit since then so the dividend is not nearly as attractive. Verizon does have about a 5% dividend and I think the stock could double, triple or more the next few years so there you go.
Facebooker: Hi, Cody, yay cryptos. Hard wallet.
Cody: Hard wallet for cryptos is the safest way to do it but I don’t like seeing yay cryptos. Should be scared of cryptos at this particular moment in my personal humble, not so humble opinion.
Facebooker John Underwood: Have you read Fear and Loathing in Las Vegas?
Cody I think I read most of that book when I first moved to New York many years ago. I have not though John, if you’ve got a copy, John bring it by. John’s next door as a matter of fact. That’s not really fair to jump on here on Facebook right now, John — you could come over here and ask me that question in person. John, attorney next door there. Lobbyist. Democrat, Republican lobbyist. But I love you John anyway and I haven’t read the book and I will if you hand it to me.
Facebooker: Cody sounds more relaxed now.
Cody: Since I’m not on the show I assume you mean, and that is correct.
Facebooker: Cody, business is about to pick up. Blockchain technology will revolutionize logistics.
Cody: Amen and bless you.
Facebooker: Cody, what’s your price target on Nvidia by next year?
Cody: I don’t typically put price targets on anything because if I put a price target on Apple after I bought it at a dollar and I put that it could triple then I wouldn’t have held it the whole time. No idea. I don’t actually think Nvidia has got a whole lot of upside for the next year or two. I think it could be capped out right here. I think it could be three years before it gets back to 260 where it’s trading at all time high this very moment. Not calling it top but I’m just saying. I don’t have, my price target for Nvidia’s next year, 260. Five years from now, could be 500 or 750. But Nvidia is pricing in a lot of growth right now.
Facebooker: Cody, we need Cody back broadcasting from a bar with longer hair and crooked loose tie, lol.
Cody: Thanks, very nice.
Facebooker: Cody, is Bitcoin real? Isn’t silver and gold better? I mean, it’s not like you can buy food at Wal-Mart with it but you can sell silver.
A little silver. The solar flares if and when they ever hit are going to ruin your cryptocurrencies at least 10 … I’m tired.
Peace, love and happiness everybody, I’m out.