185: Compete, Invest, Win: Join the 2nd Half Stock Draft Challenge

Welcome to The Invested Dads Podcast, simplifying financial topics so that you can take action and make your financial situation better. Helping you to understand the current world of financial planning and investments, here are your hosts, Josh Robb and Austin Wilson.

Austin Wilson:

All right. Hey, hey, hey, welcome back to The Invested Dads Podcast, a podcast where we take you on a journey to better your financial future. I’m Austin Wilson, Research Analyst and Co-Portfolio Manager at Hixon Zuercher Capital Management.

Josh Robb:

I’m Josh Robb, Director of Wealth Management at Hixon Zuercher Capital Management. How can people help us with our podcast?

Austin Wilson:

We would love it if you’d subscribe, if you’re not subscribed already, and check out our website if you can sign up for our weekly newsletter. It’s exclusive just for our subscribers.

Josh Robb:

Exclusive to anybody that signs up for it.

Austin Wilson:

So go ahead and go do that. But today-

Josh Robb:

Yes.

Austin Wilson:

It’s that time of year.

Josh Robb:

It is, I’m excited.

 

[0:54] – The 4th Annual Second Half Stock Draft Competition

Austin Wilson:

Every single year we do this, it’s time for the… how many, annual?

Josh Robb:

This is our fourth annual.

Austin Wilson:

Fourth annual. The Invested Dads 2nd Half Stock Draft.

Josh Robb:

All right.

Austin Wilson:

And by stock draft, it’s not necessarily a stock draft as much as it is a stock competition.

Josh Robb:

Competition for a portfolio of selected investment choices.

Austin Wilson:

For the second half of the year.

Josh Robb:

Yes, six months.

 

[1:16] – $100,000 Hypothetical Dollars: Anything Goes!

Austin Wilson:

So here is how this is going to go. Josh and I are going to be going over some of the rules, regulations, restrictions. We are also going to take a break for dad joke. And then tell you some of our either high level thoughts of what we’re planning on doing, because we’re recording this a couple weeks before, so things may change a little bit. I actually came prepared for the spreadsheet, so that’s the way I am. But-

Josh Robb:

I had a spreadsheet and then I said, “Wait a minute.”

Austin Wilson:

But we are going to be telling you how you can go and join us and compete with us for six months of glory. And there might be a prize for the winner at the end of this. So, you’re going to want to actually try in this thing.

So here’s the deal. This is a competition with hypothetical money, hosted on Investopedia Stocks Simulator website. We’ve used this for a couple years now, we’ve kind of tweaked and fine-tuned the way we operate it. But the general thinking is the same. We have a private game. So a private game means that not everyone can join it, you have to have the password. You know what we’re going to give you that here in a little bit.

Josh Robb:

Yes. And we’re also going to have it on our website and linked in the show notes.

Austin Wilson:

And in social media.

Josh Robb:

And in social media.

Austin Wilson:

It’s going to be everywhere.

Josh Robb:

It’s not going to be a hard-

Austin Wilson:

It’s not.

Josh Robb:

I mean, the password’s there, just so that you have to have it to get in there. But anybody can join.

Austin Wilson:

Absolutely. So here’s the deal, 100,000 hypothetical fake US dollars, United States dollars.

Josh Robb:

Yes. Inflation adjusted.

Austin Wilson:

Inflation adjusted for zero inflation-

Josh Robb:

For hypothetical inflation.

Austin Wilson:

At the point in time when you get it. So you’re going to get a blank portfolio with $100,000 of fake cash, and you’re going to be able to deploy that cash as you see fit over the next six months. You’re going to be competing not just with Josh and myself, but with other listeners, as well.

Josh Robb:

Anybody that wants to.

Austin Wilson:

Anybody who has the link and signs up and joins the game. We’ve tweaked a couple things this year to make it more fun, maybe? So trading, historically, we’ve often encouraged or had rules in place where it was a buy and hold strategy. This year it is not. Trading is allowed.

Josh Robb:

Oh boy.

Austin Wilson:

100% allowed and we have decided really that anything goes.

Josh Robb:

Anything goes.

Austin Wilson:

You can buy things on margin.

Josh Robb:

Ooh.

Austin Wilson:

Margin ain’t free, but you can buy things on margin. You can sell things short. You can trade options. These are things that you couldn’t do before and now you can. And we’re not going to tell you how to do that, you can figure it out on there though.

Josh Robb:

There’s actually some stuff on there that shows you how to do it.

Austin Wilson:

Yeah, absolutely. But those are additional things to the stocks, and mutual funds, and ETFs, that you typically would have been able to get on there.

Josh Robb:

We had some people asking about it, so we thought we’d try it. See what happens.

Austin Wilson:

Yeah, exactly. Here are some more details. You can actually join at any point Leading up to this. Josh already did today after I –

Josh Robb:

I wanted to try it out.

Austin Wilson:

It works. You can join anytime from now until December 31st, really. However, we’d encourage you to get started a little earlier. You won’t be able to invest, however, until June 30th, which is the end of the quarter, end of the month, beginning of the second half.

So, here’s the timeline. 6/30 to 12/31, the second half of the year is when this will happen there. You are unable, locked out to reset your portfolio. So if you really suck it up and sell short something that goes to the moon and you have no money, because that can happen. That’s one of the things that can happen. Then you cannot reset your portfolio. There are zero hypothetical trading costs, which is actually pretty realistic.

Josh Robb:

Yeah, nowadays.

Austin Wilson:

Nowadays.

Josh Robb:

Now I will say, is that true for options and short selling? Because usually there’s a cost associated with those.

Austin Wilson:

I think there’s none.

Josh Robb:

Zero across. That’s good. No problem.

Austin Wilson:

Across the board. There are no maximum or minimum number or weighting of holdings. You could go all in-

Josh Robb:

We’ve done in the past. We’ve capped them in the past.

Austin Wilson:

We used to say like 10% in any one name or whatever. Nope. You can have all of it in one name or a thousand names.

Josh Robb:

Doesn’t matter.

Austin Wilson:

If you want to manage that. Like I said, no maximum number of holdings. You will trade on the shortest amount possible, a one-minute market delay in the software. Which is pretty much real time. Margin, so if you borrow money to invest, which it’s called investing on margin. There is a cost associated with that, just like in real life. And that cost is 10%.

Josh Robb:

We hope it’s 10%.

Austin Wilson:

Yeah. I set it up to be 10%. Cash. If you hold cash the entire time, you will earn cash yield. And cash yield is set to 5% annually. So actually if you hold it for the entire six months-

Josh Robb:

Two and half.

Austin Wilson:

You get two and half percent. Which as the market falls apart, hey, you might look like a genius.

Josh Robb:

There you go.

Austin Wilson:

Some people did that, it didn’t work out last year.

Josh Robb:

Yes. Now I will say, when I went in into log in on my view, it said margins were 0.1% and 0.05% for cash. But then you showed me how you set it up. So I’m hoping it’s right and just was a weird layout on how it showed it.

 

[6:23] – Dad Joke of the Week 

Austin Wilson:

So those are the rules. But before we get into how we’re thinking about doing this and how to join, you have a dad joke.

Josh Robb:

I do have a dad joke. So made breakfast the other morning.

Austin Wilson:

Oh, good … on the Blackstone?

Josh Robb:

Made a mess. But I was going to ask my wife to clean up, but I was hesitant to. I was a little worried-

Austin Wilson:

Good move.

Josh Robb:

She’d be mad at me. So I’ve been walking on eggshells all morning.

Austin Wilson:

Yeah, I love it.

Josh Robb:

I like that one. That’s funny.

Austin Wilson:

And eggs are delicious.

 

[6:48] – Josh & Austin’s Stock Competition Strategies

Josh Robb:

So let’s recap the rules. Trading is allowed, you can own pretty much anything out there that you can think of. You start with a hundred thousand fake dollars. You can do anything you want for the next six months, as much as you want, as little as you want, however you want. Pretty open.

Austin Wilson:

It’s pretty open.

Josh Robb:

Straightforward. No cost associated with this. You can join us, it’s free. If you mess up, doesn’t cost you anything.

Austin Wilson:

Nope.

Josh Robb:

If you win, you may get a prize. But other than that, just for fun.

Austin Wilson:

Absolutely. So, let’s get into some of our thinking about how we’re prepared for this. And I actually am prepared for this, Josh.

Josh Robb:

I’m prepared. I didn’t write a sheet down, but I know what I’m doing.

Austin Wilson:

So I have 11 ideas and these ideas range in waiting from five to 20% of my anticipated, this could change, portfolio. And I’m going to tell you my rationale behind them. And you are going to go way higher level than that.

Josh Robb:

No. I have some individual things. But I didn’t plan out all 100% of what I’m doing.

Austin Wilson:

So, my first pick, I want to invest 5% ish position TBD into Chevron. Which is one of the largest diversified oil companies in the world, but in America specifically. It’s diversified, it has not rallied with tech stocks this year. Which is a common theme you’re going to find with my picks. The markets are up, largely because tech and big tech are up and everything else is flat down. And I want to buy things that have not gone up a hundred percent. So that’s one. It’s trading at … energy in general is trading a discount to the market. I like that. Despite the fact that they’re profits as a proportion of total market profits are way higher than their market cap percentage. So I see opportunity there. You want to throw something in there now?

Josh Robb:

Oh yeah, I got quite a few. So some of these individual holdings are because I like them or I think there’s an opportunity. Some are more thematic ideas and I’m not sure if I’m going to go with a ETF or an individual name. So that’s where we’re going.

So the first one, which is actually done well as a stock … and by the way, we should caveat all these are not recommendations because this is fake money.

Austin Wilson:

Fake money.

Josh Robb:

You’re making decisions because it is fake. Not recommending.

Austin Wilson:

This could be fake recommendations.

Josh Robb:

These are not recommendations for real life money. Okay.

Austin Wilson:

I guess let’s also put the caveat in there that we are looking at a six-month window of trading. This is not in investing for the long term.

Josh Robb:

Nope.

Austin Wilson:

This is not how Josh and I are investing our actual dollars for long-term success or would recommend anyone do that. We may do things and will do things that we would not recommend with real money.

Josh Robb:

Correct. So all those caveats to say, when we’re throwing out these things, these are what we’re doing with our hypothetical fake money.

Austin Wilson:

All right.

Josh Robb:

Not recommending. Okay, so we’re heading into the summer.

Austin Wilson:

We are.

Josh Robb:

And this-

Austin Wilson:

Crocs.

Josh Robb:

You got it. This stock has actually done well. If you look at the stock chart, it is actually done well.

Austin Wilson:

I know.

Josh Robb:

So I’m going to own a little bit of Crocs. I don’t know how much, I don’t want to go crazy because it has done well. I think there’s unlimited upside to Crocs just because the brand is just … I mean, put one on your foot and you’re like, this is awesome.

Austin Wilson:

I mean, I was hesitant if you recall.

Josh Robb:

And you liked them.

Austin Wilson:

And now I have a pair.

Josh Robb:

Yes. So I am going to have Crocs in my portfolio, probably about a 5% waiting there. So that’s my first one.

Austin Wilson:

I like it. My second one is … and I’ve been at this multiple years, Bitcoin. Of some sort, depending on in the software, what ETF or unit trust or whatever it allows me to hold. It could be GBTC, it could be something else. But grayscale Bitcoin, trust is kind of the target. But something like that. I think that this is a way to get some exposure to the most widely known cryptocurrency. I believe that at some point we’re going to have a little bit of a decoupling between asset classes, between crypto and equities. Where they’ve been kind of positively correlated for a while, I think that they might be negatively correlated, which could diversify my portfolio. So only about 5% ish in that, as well.

Josh Robb:

And now that was another one of mine is the same thing. I think it’s been under a lot of pressure, it’s trading at what?

Austin Wilson:

25.

Josh Robb:

25,000. The high was 69,000-

Austin Wilson:

66, yeah.

Josh Robb:

68,000. Yeah, somewhere right in there, upper sixties. So I think there’s room that’ll eventually get back to there? But-

Austin Wilson:

Yeah, no guarantee.

Josh Robb:

I think there’s a little more upside. And I think with the SCC’s approach to wanting to do some regulation and they’ve been taking more of a notice that actually in the long term will be an upside. Whether it’s six months upside, I don’t know. But I also plan on having a little exposure.

The other approach may be through a Coinbase, which is a stock publicly traded. It’s down like 90% since its initial public offering. It may … because they’re also regulated by the SCC and actually right now having some scrutiny by them. I’m not sure, but I’m going to take an approach one or another to get some digital currency exposure. Those would be one of my two choices. So, same boat as you. Not much, but a little exposure to that.

Austin Wilson:

In the same thinking of diversification, which we would say is a great thing in a lot of ways. I will be taking roughly the same exposure, roughly 5% and putting it into the ETF or unit trust or whatever it’s classified as for gold.

Josh Robb:

Get some gold.

Austin Wilson:

GLD. It is kind of running into some resistance around all time highs. But a good diversifier, if the economy slows down, a good diversifier when you look at the real yield tracking and how it interacts with that over time. I think there could be some upside there, but I think again, a small portion of my portfolio to diversify away from the equity market.

Josh Robb:

So this is one that has an asterisk to it on what I wanted, which I started thinking about this a couple weeks ago when you were out. And I was getting some of my notes together and everything, and it’s changed a little bit. So I’m going to just say, this is what my plan was. And it may or may not happen by the time I actually go to push buttons. I was going to get some long bonds. My thought was … and an ETF for something for the longer end of the bond world. Originally I thought, hey, I think the Fed may cut rates at some time this year. And so lowering rates increases bond prices, the longer end will be exposed to that. And they got beat up pretty hard last year. So there may be some upside there.

The Fed had their meeting in June, decided to pause. But their language indicate they may not be cutting rates this year, but maybe next year. That still may move the market based on futures. But I’m not sure how or if I will expose to the long end of the bond market. But that was a plan of mine, that was on my list.

Austin Wilson:

Well, Josh.

Josh Robb:

Yes, Austin.

Austin Wilson:

We’ve not talked about this in advance.

Josh Robb:

We have not.

 

[13:34] – Austin’s Triple Leveraged ETF Pick 

Austin Wilson:

So I’m just going to skip a couple numbers down. One of my sizeable positions is Ticker TMF. Ticker TMF is the direction 20 plus year treasury bull triple leveraged ETF.

Josh Robb:

Oh, there you go.

Austin Wilson:

So this means that if … so long bonds, more interest rates, sensitive rates shot up, they got hammered, they down 20, 30%. If interest rates on the long end … it’s really where interest rates on where the bonds are. So longer rates go down, prices will go up. I think there’s more downside to rates on the longer end … depending, I mean, the Fed doesn’t move … the Fed is moving things on the short end a lot and it’s moving a little bit on the long end. But I think that there’s a lot of room for upside in terms of price appreciation and I’m going to capture three times that.

Josh Robb:

There you go.

Austin Wilson:

So I am anticipating … this could change. But right now I’m actually planning on about 15% of my portfolio in the triple bull long bond ETF.

Josh Robb:

Okay. There you go. So my thought process wasn’t too flawed in where I was leaning on the longer end, I wasn’t as-

Austin Wilson:

Or maybe mine’s wrong.

Josh Robb:

I wasn’t as aggressive as you on that one. Now here’s the other one where, again, earlier I was all in on it and I’m still there, but not all the way, was I was looking into travel and leisure. Because we’ve seen a big upswing over last year and into this year of people taking vacations, traveling, all that. In fact, I saw some articles on the news, they were talking about cruise lines being overbooked and needing to rebook or move people around because of the amount of demand they were getting. So I was going to lean into that space, whether it was one of those fund named ETFs I could find.

Austin Wilson:

Oh yeah.

Josh Robb:

Or a couple stocks individually, whether it’s an airline or a cruise line. And I still think I’m going to go in there, but I’m not sure exactly how far I want to go on that side. But I think that trend will continue-

Austin Wilson:

Something travel.

Josh Robb:

I think there’s still demand and it will continue through.

Austin Wilson:

All right, my next pick, now I’m all out of order because I hold one up there.

Josh Robb:

I excited you.

Austin Wilson:

Ticker LTHM, sounds like lithium.

Josh Robb:

No, I don’t know.

Austin Wilson:

That’s because it is. It’s company called Live Event Corporation.

Josh Robb:

I thought it was long-term hot metal and it was some sort of welding thing.

Austin Wilson:

About a 5% position planned for Live Event Corporation, lithium very in demand when you look at electric vehicles, which are growing very consistently. Not just in the United States, but around the world. So-

Josh Robb:

Sounds like you’re farming them. They’re growing very well-

Austin Wilson:

Growing very well.

Josh Robb:

It’s a good crop this year for electric vehicles.

Austin Wilson:

So getting some materials, some lithium exposure.

Josh Robb:

Okay, there you go. All right. So then as I was looking at my portfolio, I think my next piece is … and maybe this sits to what you were talking about earlier, is when I was looking at opportunities, tech has had a pretty good run at the start of this year. I was looking at more high dividend or high quality, and I know there’s different ones out there, there’s like a Morningstar dividend thing. I was going to look in that basket for a high yielding dividend or a more value oriented, diversified ETF. So I’m going to have exposure there to get stock market exposure, but in a more value or quality side of the large cap market.

Austin Wilson:

I like it. Absolutely.

Josh Robb:

So again, not sure which one I’m using, but that’s the sector I’m leaning into.

Austin Wilson:

My next individual name is Charles Schwab. Charles Schwab is one of the larger custodians, they have a banking arm, they’re in wealth management, all this other stuff because of some of the banking turmoil and really yield moves and stuff like that. I’ve been absolutely hammered this year. They’re down 30%, I think, something like that. But it’s a fantastically profitable and quality business model, that I think will bounce back and is being underappreciated or the uncertainty is being overstated, I think, for them. So 5% position in Charles Schwab.

Josh Robb:

There you go. There you go. I’m going to then sprinkle in.

Austin Wilson:

Sprinkle.

Josh Robb:

Sprinkle in-

Austin Wilson:

Just a little bit.

Josh Robb:

A couple fun names because I love those … I didn’t do well last year.

Austin Wilson:

Is there a Ticker JOSH?

Josh Robb:

No, they’re owned by somebody else. I was going to say the Joseph Bank Clothing Company. But no. I said I didn’t do well. I finished middle of the pack last year in the stock draft. And I chose all fun ETFs tickers or stock tickers. There’s a couple I really liked in there and I kind of liked what they did, so I’m going to pull those back in. FUN was one of them.

Austin Wilson:

It was.

Josh Robb:

Which was –

Austin Wilson:

Cedar Fair.

Josh Robb:

Yep, so that may be one just close to us. Don’t have any thoughts to it. Never looked into it at all. But it’s a fun name.

Austin Wilson:

It’s America’s Rock and Roller Coast.

Josh Robb:

But I will sprinkle in a couple of those from last year, that I like and they’ll show up as just fun tickers in my portfolio.

Austin Wilson:

Small positions.

Josh Robb:

Yeah, nothing big. But those are a couple that I’m leading towards, as well.

Austin Wilson:

I like it. My next is Ticker SLB, Schlumberger. It’s a really technology oriented, technology focused energy company. So they provide a lot of the infrastructure from a technology basis that other energy companies use. I really like that. They’ve also not rallied as much as tech, in general. They’re an energy company technically. So I like the exposure there. I think it’s tech energy and I think energy could still do well. The economy’s still growing. It is slowing, but it’s still growing. And I think that’s good for oil demand, which should be good for the energy sector, in general.

 

[19:03] – Josh’s Travel & Vacation-Themed Picks 

Josh Robb:

The other one, it’s two names. I’m going to use them together. Disney and then Universal, which is owned by Comcast, I believe. And so those are the two I’m going to put in. Disney is just releasing the newest Indiana Jones movie.

Austin Wilson:

Oh, yeah.

Josh Robb:

Which I’m pretty excited about. And in general, with travel and vacations and all that, I think there’s a good trend there. And HBO Max, I think they changed the name to Max. They’re releasing a Harry Potter new-

Austin Wilson:

A show. Yeah.

Josh Robb:

Show. It’s like a 10 year, like a redo. So I think there’ll be some excitement around that. And they’re opening a new park, which is Mario themed-

Austin Wilson:

Oh, really?

Josh Robb:

As well. And so I think there’s some stuff there. And I got kids-

Austin Wilson:

Kind of also goes with your travel thing.

Josh Robb:

It goes with my travel. I got some kids that are all in on some of those. The New Mario movie that just recently came out with a big success-

Austin Wilson:

I heard it’s good.

Josh Robb:

Those are two names that will show up in my portfolio. Probably again, 2 to 5%, nothing huge, but a small weight in each of those.

Austin Wilson:

My next is Ticker GEM, which is a Goldman Sachs ETF tracking emerging markets. And it’s what they call an active beta ETF. Meaning it’s a quantitatively run strategy that uses rules to determine based on a couple different factors, not going to get into details. Companies that they think should do better than other companies in the emerging market space specifically here. And they put slightly higher weights on the better quality companies that meet those criteria and lower on the others. It gives you emerging market exposure. I’m optimistic still, about China is reopening for one. But they’re stimulating their economy again from the top down-

Josh Robb:

I saw that in an article I was reading.

Austin Wilson:

As they do. And I think that that has to be good for growth. They’re going to grow at more than 5% this year, which is really good for worldwide comparison.

Josh Robb:

All right.

Austin Wilson:

Here we go.

Josh Robb:

Sounds good. Those were my broad ones, and I think I’m going to then … because like I said, the bigger bulks, I’m going to have bigger holdings in some of those, like the dividend paying ones. So that covers a wider swath of companies. And then I do want some international exposure, maybe more of a global fund or something like that to get that. But that was kind of where I was sitting on my choices. Ones I’m planning on not being in, at least at this point, are really any direct real estate stuff besides my more broad ETFs.

And healthcare’s one I’m not sure of yet. I was leaning towards doing something in healthcare and I just haven’t found anything exciting for me that’s-

Austin Wilson:

Yeah, that’s okay.

Josh Robb:

Like fun to do.

Austin Wilson:

So I am taking the over on healthcare. So I’m taking a sizeable, about roughly anticipating a 10% position in UnitedHealthcare. So UnitedHealthcare is the nation’s largest healthcare provider. They’ve also been really beat up recently from firsthand experience using their products. I can understand how profitable their business is because the healthcare world is-

Josh Robb:

Oh, yeah.

Austin Wilson:

Ridiculously expensive. So yeah, taking about a 10% position in healthcare. And you said you’re done, so I got a couple more.

Josh Robb:

Yes, tell me a couple more.

Austin Wilson:

Here’s another one, taking about a 15% position in more fixed income. Austin and fixed income-

Josh Robb:

You’re in it.

Austin Wilson:

Ticker BOND.

Josh Robb:

BOND.

Austin Wilson:

Is PIMCO’s actively managed. PIMCO’s one of the world’s leading fixed income managers. They have an actively managed, so they’re picking and choosing what bonds and fixed income they want to hold there and managing yield and credit. But it’s their actively managed bond ETF. So, Ticker BOND. So between the two, the long bond and BOND, I’m at about 30% fixed income. 10% I would call real assets with Bitcoin and gold, which would make 60% I would have inequities. And you’re like 60%? I’m missing about 20. Austin’s largest holding-

Josh Robb:

What’s it going to be?

Austin Wilson:

One company, but it’s a diversified company. In Buffett we trust. Berkshire Hathaway-

Josh Robb:

Berkshire Hathaway.

Austin Wilson:

20% of the portfolio. This is my only indirect exposure/kind of direct to having a bunch of tech. So how about half of his company is essentially Apple? He is one of the largest shareholders. So I’m getting technology exposure through Berkshire. But I’m not, if you’ve noticed, making big bets on AI right now.

Josh Robb:

You have not. Do you think it’s overplayed a little bit?

Austin Wilson:

I am looking at the market and saying, I think that AI’s going to do great things for businesses and people. I think that tech companies are going to continue to do well. But I think a lot of their stocks on both the big tech and the artificial intelligence focused areas of tech have run up too far. I think there’s risk there. So I’m not taking big direct exposure to them, so-

Josh Robb:

Makes sense.

Austin Wilson:

That is my winning portfolio. Probably not.

Josh Robb:

Yeah, there you go.

Austin Wilson:

So that’s what I’m saying. And again, all trading is allowed. Some of these things may change by the time I actually get these trades in there and you too.

Josh Robb:

Yep. And I have to remember what I said today when I go to invest it, so that I get it all in there.

Austin Wilson:

Absolutely. At least for a minute till you trade it that way.

Josh Robb:

That’s right.

Austin Wilson:

All right.

 

[24:23] – Will the Guys’ Invest Right Away or Over Time? 

Josh Robb:

Question, one more for you. Question, do you plan on going all in on all your trades right away? Are you dripping in? What are your thoughts on that?

Austin Wilson:

It depends on what the market’s doing at that point. So on July 1st or June 30th or whatever that looks like, if the things that I want to buy are at a point where I want to buy them, I’m not opposed to putting it to work right away. They only have six months to make money. That being said, if things are way overbought, which there’s ways to technically look at that. I will probably wait for a pullback. We’ll see.

Josh Robb:

All right. Sounds good. Based on the things I’m thinking about, the more diversified pieces, I’m pretty comfortable getting in right away. Some of those more broad ETFs that I’m going to be using, I’ll probably put those to work. Some of the more individual names, I’ll do the same thing as just kind look at where they’re at and see if there’s maybe a better opportunity down the road.

Austin Wilson:

Absolutely.

Josh Robb:

Yeah, at least a good chunk of my portfolio will probably be invested pretty early on.

Austin Wilson:

I do want to caution our listeners. So one of the things I mentioned is a triple leverage ETF. These are very popular now. You can do them even for companies, individual companies-

Josh Robb:

Oh, wow.

Austin Wilson:

Triple leverage ETFs. Triple leverage can burn you. And I just want to put that out there as a warning. They’re made to trade, not to hold, because when upside and downside converge, you have issues. So on the upside day, you’re going to get triple up. But triple up off of a lower base because-

Josh Robb:

You started down.

Austin Wilson:

That’s how math works. Triple down hurts you worse then triple up. If you’re holding a $10 triple leverage ETF and it goes up 50%, great, you go to $15. But if you go down 50%, you go down to five. So it’s comparatively harder. It’s really tough. So that’s why be careful with triple leverage.

Josh Robb:

Good thing it’s fake money.

 

[26:10] – How to Join the Game 

Austin Wilson:

Good thing it’s fake money. All right, so how do you join. First of all, this is going to be plastered everywhere.

Josh Robb:

Everywhere.

Austin Wilson:

Website, social media, the Facebook posts-

Josh Robb:

The Facebook.

Austin Wilson:

Show notes, email. So there’s going to be a link in the email, so that’s another reason to sign up for our newsletter. That makes it super easy. You have to search it, is “TID 2nd Half Stock Draft 23”.

Josh Robb:

2nd.

Austin Wilson:

And that is what you’ll search for. So the password? The password because it’s password protected.

Josh Robb:

Password protected.

Austin Wilson:

“TiDonut23”.

Josh Robb:

Okay. So it’s T-i-D, and then the D goes into the word donut.

Austin Wilson:

Yeah.

Josh Robb:

And then the 23.

Austin Wilson:

Yeah.

Josh Robb:

Okay. T-I-D, and then that’s donut.

Austin Wilson:

Yeah, TiDonut23.

Josh Robb:

All right, that sounds good.

Austin Wilson:

That’s the password. So ideally, as we mentioned earlier, get your picks in early, take your time. But you can also take your time to drip in if you want. But it’s more fun that way. You can’t do your picks early, but you can get set up early. We would encourage that.

Email us at hello@theinvesteddads, once you’ve submitted your portfolio or once you’ve bought. We’d like to hear from you and know what you’re thinking, how you’re feeling, or if you have any questions about any of this.

Josh Robb:

Or just want to throw down the gauntlet.

Austin Wilson:

Or just say, hey, bring it. This is the winning portfolio and I’ll challenge you, is what you’ll say. So that’ll be that. But otherwise, yeah, this is going to be really fun. We’re going to be tracking it throughout the second half of the year, and it makes it a lot easier that it’s online now than we used to do one in Excel. That was tricky. So thank you for listening and yeah, we’re excited to do this with you again this year.

Josh Robb:

One last caveat.

Austin Wilson:

One last caveat.

Josh Robb:

Just a reminder, all those things we talked about that we’re investing in our fake portfolio is not a recommendation-

Austin Wilson:

No, no, no.

Josh Robb:

For real life money. It’s just something we’re doing for fun. So no recommendations on any of those things.

Austin Wilson:

And if you had someone asking, hey, I’d like to do a fake stock draft, send them this episode. Send them the link-

Josh Robb:

Tell them to sign up.

Austin Wilson:

Get them to sign up with that. And if you have any other ideas for other podcast ideas, send them our way. We’d love to do that. So email us at hello@theinvesteddads.com and we will take a look. And until next Thursday-

Josh Robb:

We’ll talk to you later.

Austin Wilson:

Have a great week. Bye.

Thank you for listening to The Invested Dads Podcast. This episode has ended, but your journey towards a better financial future doesn’t have to. Head over to TheInvestedDads.com to access all the links and resources mentioned in today’s show. If you enjoyed this episode and we had a positive impact on your life, leave us a review. Click subscribe and don’t miss the next episode.

Josh Robb and Austin Wilson work for Hixon Zuercher Capital Management. All opinions expressed by Josh, Austin or any podcast guest are solely their own opinions and do not reflect the opinions of Hixon Zuercher Capital Management. This podcast is for informational purposes only and should not be relied upon for investment decisions. Clients of Hixon Zuercher Capital Management may maintain positions in this securities discussed in this podcast. There is no guarantee that the statements, opinions or forecasts provided herein will prove to be correct. Past performance may not be indicative of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. Securities investing involves risk, including the potential for loss of principle. There is no assurance that any investment plan or strategy will be successful.